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 Tuesday, January 15, 2008, Vol. 9, Issue 10 Headlines A R G E N T I N A ALITALIA SPA: Air France-KLM Chief Holds Preliminary Talks ARROW ELECTRONICS: Acquiring Indian Distribution Business Assets DANA CORP: Asbestos Claimants File Appeal to Dana Plan DELTA AIR: December 2007 System Traffic Increased by 3% DELTA AIR: Mulling Possible Sale of Comair & Mergers VERIFONE HOLDINGS: Teams with ArcSight for Compliance Automation * ARGENTINA: Enarsa Launches Tender for Nine Small Thermo Plants B E R M U D A CLAYTON PARTNERS: Proofs of Claim Filing Deadline Is Jan. 21 B O L I V I A * BOLIVIA: Yacimientos Petroliferos Reduces Gas Output B R A Z I L AAR CORP: To Buyback US$16.36 Million Senior Notes on Feb. 12 ALERIS INT'L: Concludes Sale of US Zinc Biz to Votorantim Metais BANCO NACIONAL: Directors Okay BRL259-Mln Loan to Brasil Telecom BRASIL TELECOM: Secures BRL259-Million Loan from Banco Nacional BRASIL TELECOM: Telemar Talks Get Government Support REALOGY CORP: Commences Exchange Offer for Three Senior Notes SANYO ELECTRIC: To Pay FSA JPY8.3 Billion for Accounting Error * BRAZIL: Petrobras Ranks Highest Market Value in Latin America C A Y M A N I S L A N D S BREA EQUITY: Proofs of Claim Filing Is Until Jan. 21 BREA HOLDINGS: Proofs of Claim Filing Ends on Jan. 21 BREA INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 21 COMMERCIAL EQUITY: Proofs of Claim Filing Ends on Jan. 21 COMMERCIAL INVESTMENTS: Proofs of Claim Filing Is Until Jan. 21 LAGUNA EQUITY: Proofs of Claim Filing Ends on Jan. 21 LAGUNA HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21 LAKEHILL INVESTMENTS: Proofs of Claim Filing Ends on Jan. 21 LANDMARK EQUITY: Proofs of Claim Filing Deadline Is Jan. 21 MARCUS EQUITY: Proofs of Claim Filing Ends on Jan. 21 MARCUS HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21 ORANGE EQUITY: Proofs of Claim Filing Is Until Jan. 21 ORANGE INVESTMENTS: Proofs of Claim Filing Ends on Jan. 21 PARMALAT SPA: Deloitte Wants to Settle with Bondholder Group THIRTEEN MARINE: Proofs of Claim Filing Deadline Is Jan. 21 WESTSHORE HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21 C H I L E EASTMAN KODAK: Earns US$37 Million in 2007 Third Quarter ROCK-TENN CO: Southern Buyout Deal Cues Moody's To Review Rating ROCK-TENN CO: S&P Places BB+ Corp. Credit Rating on WatchNeg C O L O M B I A PARKER DRILLING: Updates Kazakhstan Tax Case POLYONE CORP: Completes Acquisition of Ngai Hing PlastChem SOLUTIA INC: Joins Panel in Showing Cross-Appeal Issues v. BNY D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: SECCI To Develop Biofuels Production Study E C U A D O R PETROECUADOR: Buys Jet from Embraer PETROECUADOR: Reports US$4.012 Billion 2007 Oil Export Revenues E L S A L V A D O R ALCATEL-LUCENT: Signs Turnpike Deal Connecting Hawaii to Tahiti * EL SALVADOR: SECCI Developing Biofuels Production Study G U A T E M A L A BANCO G&T: S&P Affirms BB-/B Foreign Counterparty Credit Rating BANCO INDUSTRIAL: S&P Affirms BB-/B Counterparty Credit Rating H A I T I * HAITI: SECCI to Develop Biofuels Production Feasibility Study J A M A I C A AIR JAMAICA: Gov't Denies Virgin Atlantic Lead in Bidding NATIONAL WATER: St. Catherine Dep't May File Suit Against Firm * JAMAICA: Won't Sell 20% Stake in Jamaica Public Service Co. M E X I C O AXTEL SAB: Selects Motorola as First WiMAX Technology Vendor DURA AUTOMOTIVE: Posts US$12,399,000 Net Loss in November 2007 EL POLLO: S&P Affirms B- Corporate Credit Rating FIRST DATA: Moody's Drops Untendered Stub Notes' Rating to Caa1 GLOBAL POWER: Elects David L. Willis as CFO & Sr. Vice Pres. GREENBRIER CO: Earns US$2.6 Million in Quarter Ended Nov. 30 GRUPO MEXICO: Labor Board Says Cananea Strike Illegal HASBRO INC: Inks Licensing Agreement with Thorley Industries HILLMAN COS: CEO Reports Preferred Securities Cash Distribution TELE NORTE: Brasil Telecom Talks Get Government Support URS CORP: Brings In Thomas Zarges as Washington Unit President VITRO SAB: Inks Agreement with Electric Energy P E R U QUEBECOR WORLD: Gets CDN$400-Million Rescue Financing Proposal P U E R T O R I C O DENNY'S CORP: Sept. 26 Balance Sheet Upside-Down by US$201.1 Mln V E N E Z U E L A CHRYSLER LLC: Confirms OEM Product Agreement with Nissan Motor CHRYSLER LLC: Working with Midwest Entities in Research Project PETROLEOS DE VENEZUELA: Implements Drilling Technology in RG 278 * VENEZUELA: Chavez Orders Halt on Asphalt Exports * VENEZUELA: Gets US$50-Million Loan for Water Treatment Works * Large Companies with Insolvent Balance Sheets - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Air France-KLM Chief Holds Preliminary Talks ---------------------------------------------------------- Air France-KLM Group S.A. CEO Jean-Cyril Spinetta has held preliminary meetings with Alitalia S.p.A. executives, government officials and trade unions over its planned acquisition of Italy's 49.9% stake in the national carrier, various reports say. "[I had] very useful meetings," Mr. Spinetta was quoted by Bloomberg News as saying. "We're carrying on the dossier." During the meetings, Mr. Spinetta confirmed plans to: -- acquire 100% of the shares of Alitalia through an exchange offer; -- acquire 100% of Alitalia convertible bonds; and -- immediately inject at least EUR750 million into Alitalia through a capital increase, that will be open to all shareholders and be fully underwritten by Air France. Mr. Spinetta also confirmed plans to cut 1,700 jobs, Reuters relates. The Air France CEO, however, downplayed reports that Italy would hold a 3% stake in the merged Air France-Alitalia after a share- swap deal is completed, Reuters reports. Mr. Spinetta added that acquiring AZ Servizi, Alitalia's ground services and maintenance unit, would be based on "economic and social" considerations, Reuters added. Milan Plans Mr. Spinetta, on a press conference, defended plans to downsize Alitalia's operations in Milan's Malpensa airport, and assured that the national carrier will not abandon its slots in the northern hub, Agenzia Giornalistica Italia reports. "The big majority of Alitalia's losses come from Malpensa," Mr. Spinetta was quoted by Reuters as saying. "Continuing to ignore this fact would bring about the end of Alitalia." Mr. Spinetta revealed that should the French carrier acquire 100% of Alitalia shares, Air France would list itself in the Milan bourse. Renata Polverini, head of the UGL labor union, said Mr. Spinetta showed "flexibility" on the issue of downscaling Milan operations and AZ Servizi plans, the airline's ground services and maintenance unit, Bloomberg News says. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ARROW ELECTRONICS: Acquiring Indian Distribution Business Assets ---------------------------------------------------------------- Arrow Electronics Inc. agreed to acquire all of the assets related to the franchise components distribution business of Hynetic Electronics and Shreyanics Electronics in India, effective Jan. 1, 2008. Privately owned, Hynetic Electronics and Shreyanics Electronics are leading electronic component distributors in India. "I am delighted to add the components distribution business of Hynetic to our expanding franchise in the Asia Pac region, further strengthening our leadership position in the fast- growing Indian marketplace. The Hynetic business is similar to Arrow's, with its demand-creation business model and strong engineering capabilities, and we anticipate meaningful synergies between our two businesses. Hynetic's complementary linecard and experienced sales professionals will allow us to expand our product portfolio and offer improved services and support to our business partners," said Michael J. Long, president of Arrow Global Components. "This acquisition will be beneficial to Arrow, with an expanded customer base focusing on the rapidly growing small- and medium- sized market and additional strategic product lines, which are critical for Arrow to further expand market share in India. At the same time, Hynetic's customers and suppliers gain instant access to Arrow's specialized expertise, technical resources, supply chain solutions and extensive logistics capabilities," said Peter Kong, president of Arrow Asia Pacific. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics Inc. -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. The company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands, United Kingdom, Argentina, Brazil, Mexico, Australia, China, Hong Kong, Korea, Philippines and Singapore. * * * Arrow Electronics senior subordinated stock continues to carry Moody's Investors Service's Ba1 rating. The company's senior preferred stock is rated at Ba2. DANA CORP: Asbestos Claimants File Appeal to Dana Plan ------------------------------------------------------ A group, known as the ad hoc committee of asbestos claimants, on Jan. 3, 2008, filed an appeal with the U.S. Bankruptcy Court in Manhattan on the confirmation of Dana Corp.'s Plan of Reorganization, Associated Press reports. This group represents "tens of thousands" of people who claim they were injured by asbestos in Dana's products. The committee has argued that Dana's bankruptcy plan did not set aside enough money to settle all the asbestos personal-injury claims against the Company. In December 2007, the Company said it had US$240 million in cash and other assets to cover future asbestos and environmental contamination liabilities. The Company said it has enough money to satisfy all the claims based on the number of active cases pending against it and the number of dismissed cases. Dana spokesman David Lilly said the appeal "was not unexpected." He said the appeal will not affect Dana's plans to emerge from Chapter 11 protection by the end of January 2008. Dana reached settlements with some asbestos personal-injury claimants as it worked its way through the bankruptcy process. The Company agreed to pay a total of US$2 million to a group of about 7,500 who claim they were injured by asbestos in Dana products. Dana's plan allows other asbestos claimants to retain their right to sue Dana once the company emerges from bankruptcy. The Company filed for bankruptcy in March 2006 amid a downturn in the vehicle manufacturing industry. Its plan was confirmed by Judge Burton Lifland in December 2007. The plan calls for unsecured creditors to be repaid between 72 percent and 86 percent on their claims. 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. DELTA AIR: December 2007 System Traffic Increased by 3% ------------------------------------------------------- Delta Air Lines Inc. said its system traffic for December 2007 increased 3.0% from December 2006 on a capacity increase of 3.1%. Delta's system load factor was 77.7% in December 2007, flat from the same period last year. Strong demand for Delta's international product continued during December 2007, with traffic increasing 16.4% year over year on a 13.3% increase in capacity. This resulted in a record December international load factor of 79.9%, up 2.1 points compared to December 2006. Domestic traffic in December 2007 decreased 2.8% year over year on a capacity decrease of 1.3%. Domestic load factor in December 2007 was 76.6%, down 1.3 points from the same period a year ago. "In December, consolidated unit revenues showed solid year over year improvement," said Glen Hauenstein, Delta's executive vice president for Network Planning and Revenue Management. International unit revenues demonstrated continued strength with significant increases in both yield and traffic, while domestic yields continued to strengthen as pricing actions implemented to offset higher fuel costs translated to higher yields." During December 2007, Delta operated its schedule at a 98.2% completion rate compared to 99.0% in December 2006. Delta boarded 8.6 million passengers during the month of December 2007, a decrease of 2.0% from December 2006. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. (Delta Air Lines Bankruptcy News, Issue Number 86; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter Oct. 18, 2007, Standard & Poor's Ratings Services affirmed its ratings on Delta Air Lines Inc. (B/Positive/--) and revised the rating outlook to positive from stable. The outlook revision is based on continued strong earnings, cash flow generation, and debt reduction. DELTA AIR: Mulling Possible Sale of Comair & Mergers ---------------------------------------------------- Delta Air Lines Inc. is studying a possible sale of its regional jet service Comair while a board panel reviews merger possibilities, Bloomberg News reports. In an interview with Bloomberg, Delta spokeswoman Betsy Talton said the airline is evaluating options to sell its regional unit, "but no decision has been made." Chief Executive Officer Richard Anderson projected that the Board will decide on the sale in October 2007; however, no updates as of this quarter have been disclosed. Ms. Talton declined to comment on the progress of the Board Committee regarding shareholder pressure to boost stock value, Bloomberg says. The Financial Times points Delta's delay on the Comair decision to the airline's consideration of a merger with United Air Lines Corporation or another competitor. As previously reported, investor Pardus Capital Management LP, in November 2007, urged Delta and United to merge. The hedge fund cited the merger's necessity amid skyrocketing jet-fuel prices. Unidentified people familiar with the matter confirmed that Delta asked the board panel and its merger advisers, Merrill Lynch & Co. and Greenhill & Co., to come up with decisions. Thereafter, JPMorgan Chase & Co., will have to act on the options already discussed for Comair, the Financial Times said. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. (Delta Air Lines Bankruptcy News, Issue Number 86; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter Oct. 18, 2007, Standard & Poor's Ratings Services affirmed its ratings on Delta Air Lines Inc. (B/Positive/--) and revised the rating outlook to positive from stable. S&P said the outlook revision is based on continued strong earnings, cash flow generation, and debt reduction. VERIFONE HOLDINGS: Teams with ArcSight for Compliance Automation ---------------------------------------------------------------- VeriFone Holdings Inc. has entered into a worldwide partnership with ArcSight, aimed at enabling merchants in retail and petroleum markets to proactively protect cardholder data against breaches, insider threats, and non-compliance risk across the Payment Card Industry Data Security Standards rules and regulations. As part of the partnership, VeriFone's sales force will join with ArcSight's to introduce merchants from the VeriFone customer base that can directly benefit from the ArcSight PCI Protection Suite. "PCI compliance is a nightmare-issue for companies struggling to keep up with evolving PCI security requirements, which are difficult and costly to implement, maintain, and monitor across distributed networks," said Jeff Wakefield, VeriFone vice president of marketing, Integrated Systems. "The ArcSight offering directly addresses all 12 PCI DSS mandates and provides a real-time monitoring and early-warning breach detection system, and is a key part of VeriFone's initiative to both educate and assist the industry about payment security compliance." "This partnership brings ArcSight's proven and scalable technology solution to VeriFone's global customer base of Level 1 and 2 merchants that desire to achieve PCI Compliance and protect their brand and customer information," said Tom Reilly, president and COO of ArcSight. "ArcSight is fortunate to partner with VeriFone, a world class organization committed to the success of their customers and partners." The ArcSight PCI Protection Suite is a comprehensive, scalable and cost-effective solution for protecting cardholder data and monitoring ongoing PCI compliance. Level 1 and 2 merchants across the retail, transportation, telecommunications, medical, and financial markets have already selected the ArcSight PCI Protection Suite to secure their customers against the growing global threats to cardholder identity and data privacy. Level 1 and Level 2 merchants that are in interested in the solution can contact either their VeriFone or ArcSight local representative. About ArcSight ArcSight -- http://www.arcsight.com/-- is a leading provider of security and compliance solutions that intelligently identify and mitigate business risk and deliver a centralized view of enterprise-wide events across heterogeneous infrastructures. This real time and historic view into external attacks, insider threats and regulatory compliance provides enterprises, MSSPs and government agencies with the intelligence and response capabilities required to effectively protect and manage their networks and their businesses. ArcSight is a trademark of ArcSight, Inc. About VeriFone VeriFone Inc. is headquartered in Santa Clara, California, and is a global market leader in the development and sale of point- of-sale electronic payment systems. The company has operations in Argentina, Australia, Brazil, China, France, India, Malaysia, Poland, the United Kingdom, the United States, among others. * * * As reported in the Troubled Company Reporter on Sept. 29, 2006, Moody's Investors Service has affirmed the Corporate Family Rating of B1 of VeriFone and revised the rating outlook to stable from negative. At the same time, Moody's assigned ratings to new bank credit facilities that VeriFone will use to finance its pending acquisition of Lipman Electronic Engineering Ltd. * ARGENTINA: Enarsa Launches Tender for Nine Small Thermo Plants ---------------------------------------------------------------- Business News Americas reports that Argentine state-owned energy firm Enarsa has launched a tender for nine small thermo plants. According to BNamericas, the plants will be built in these provinces: -- Chaco province, -- Santa Fe, -- Cordoba, and -- Buenos Aires. BNamericas notes that data packages started to be sold on Jan. 11 at Enarsa's Buenos Aires offices. Offers will be accepted until 11:30 a.m. on Jan. 22, and will be opened at 12 noon on the same day. "We're not yet sure about the total value of the tender. The last tender we had for similar plants showed a great variety of options including purchasing, renting and leasing. We decided to leave the tender open to all of the opportunities and will pick the most convenient one later," Enarsa spokesperson Carlos Davidson admitted to BNamericas. As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Standard & Poor's Ratings Services assigned B+ long-term sovereign local and foreign currency ratings and B short-term sovereign local and foreign long-term ratings on Argentina. Standard & Poor's also placed 4 sovereign foreign currency recovery rating and a BB transfer and convertibility assessment rating. Standard & Poor's says the outlook for these ratings is stable. Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 ============= B E R M U D A ============= CLAYTON PARTNERS: Proofs of Claim Filing Deadline Is Jan. 21 ------------------------------------------------------------ Clayton Partners Limited's creditors are given until Jan. 21, 2008, to prove their claims to Peter C.B. Mitchell and Nigel J.S. Chatterjee, 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. Clayton Partners' shareholder decided on Dec. 31, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidators can be reached at: Peter C.B. Mitchell Nigel J.S. Chatterjee PricewaterhouseCoopers Advisory Limited P.O. Box HM 1171 Hamilton, Bermuda HM EX ============= B O L I V I A ============= * BOLIVIA: Yacimientos Petroliferos Reduces Gas Output ------------------------------------------------------ Bolivian state-run oil firm Yacimientos Petroliferos Fiscales Bolivianos' head Guillermo Aruquipa told Business News Americas that gas production in the country was temporarily reduced. According to BNamericas, Mr. Aruquipa said it was due to gas takes from Argentina and Brazil. Bolivia is supplying about 3.1 million cubic meters per day to Argentina. The supply contract calls for up to 7.7 million cubic meters per day, Mr. Aruquipa told Bolivian state news agency Agencia Boliviana de Informacion. BNamericas notes that Brazil has asked about 28 million cubic meters per day -- two million cubic meters per day less than the agreed amount. Mr. Aruquipa told BNamericas that gas demand from Argentina and Brazil, along with Bolivian consumption, reaches almost 35.8 million cubic meters per day against a nearly 40 million cubic meters per day output. BNamericas relates Bolivian hydrocarbons minister Carlos Villegas will meet with Argentine federal planning minister Julio de Vido on Jan. 18 in Buenos Aires to talk about gas issues. The two ministers meeting will be followed by that of the heads of state of Bolivia, Argentina, and Brazil, BNamericas states. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Standard & Poor's Ratings Services has assigned B- long-term sovereign local and foreign currency ratings and C short-term sovereign local and foreign currency ratings on Bolivia. =========== B R A Z I L =========== AAR CORP: To Buyback US$16.36 Million Senior Notes on Feb. 12 ------------------------------------------------------------- AAR Corporation will redeem on Feb. 12, 2008, in full its 2.875% convertible senior notes due Feb. 1, 2024. The aggregate principal amount of the notes outstanding is approximately US$16.36 million. The notes will be redeemed at a price of 100.958% of the principal amount thereof, plus accrued and unpaid interest to the redemption date. On or prior to 5:00 p.m., Eastern Time, on Feb. 11, 2008, holders may convert their notes into shares of the company's common stock at a conversion price of approximately US$18.59 per share of common stock, which is equal to a conversion rate of approximately 53.7924 shares of common stock per US$1,000 principal amount of notes. Cash will be paid in lieu of fractional shares. The last reported sale price of the company's common stock on the on the New York stock exchange, as of Jan. 8, 2008, was US$31.25 per share. Any notes not converted on or before on Feb. 11, 2008, will be automatically redeemed on Feb. 12, 2008, after which interest will cease to accrue. A notice of redemption is being mailed to all registered holders of the notes. Copies of the notice of redemption may be obtained from the paying and redemption agent, U.S. Bank National Association by calling Mr. Richard Prokosch at 651-495- 3918. About AAR Corp. Headquartered in Wood Dale, Illinois, AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides products and services to the worldwide aerospace and defense industry. With facilities and sales locations around the world, AAR uses its business model to serve aviation and defense customers through four operating segments: aviation supply chain; maintenance, repair and overhaul; structures and systems and aircraft sales and leasing. In Asia Pacific, the company has offices in Singapore, China, Japan and Australia. In Latin America, the company has a sales office in Rio de Janeiro, Brazil. * * * AAR Corporation continues to carry Moody's Investors Service's 'Ba3' long-term corporate family rating, which was assigned on November 2006. ALERIS INT'L: Concludes Sale of US Zinc Biz to Votorantim Metais ---------------------------------------------------------------- Aleris International, Inc. has completed the sale of its Zinc business, which operates under the name US Zinc, to affiliates of Votorantim Metais Ltda. for US$295 million with certain adjustments for working capital and other items. The company will use net proceeds from the divestiture to reduce outstanding debt. Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. * * * As reported in the Troubled Company Reporter on Sept. 21, 2007, Standard & Poor's Ratings Services revised its outlook on Aleris International Inc. to negative from stable. At the same time S&P affirmed its 'B+' corporate credit rating and the other ratings on the company. Concurrently, S&P assigned a 'B-' rating to the company's recent US$105 million 9% senior notes due 2014, which are an add-on to the company's existing US$600 million 9% senior notes due 2014. BANCO NACIONAL: Directors Okay BRL259-Mln Loan to Brasil Telecom ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social's directors have approved a BRL259 million financing to Brasil Telecom Celular S.A. The funds will be destined to company investment program (2007/2009), which contemplates modernization of the network, to meet increased traffic, the offering of new services and for improvements in service to users. The Bank's support is equivalent to 49.83% of the total investment, of BRL519.9 million. The company's program includes the acquisition of stations to improve the quality of mobile service coverage and traffic capacity (voice and data), besides investments in infrastructure expansion and acquisition of equipment to ensure a better level of signal for voice and data communication. Since the sector privatization, in 1998, until December 2007, BNDES telecommunications department approved BRL7.9 billion financings to mobile phone companies. This amount represents 35% BRL22 billion. Brasil Telecom Celular S.A is a full subsidiary of Brasil Telecom and operates in the region which comprehends the states of Acre, Rond�nia, Mato Grosso, Mato Grosso do Sul, Tocantins, Goias, Parana, Santa Catarina and Rio Grande do Sul, besides the Federal District. 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: Secures BRL259-Million Loan from Banco Nacional --------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social's directors have approved a BRL259 million financing to Brasil Telecom Celular S.A. The funds will be destined to company investment program (2007/2009), which contemplates modernization of the network, to meet increased traffic, the offering of new services and for improvements in service to users. The Bank's support is equivalent to 49.83% of the total investment, of BRL519.9 million. The company's program includes the acquisition of stations to improve the quality of mobile service coverage and traffic capacity (voice and data), besides investments in infrastructure expansion and acquisition of equipment to ensure a better level of signal for voice and data communication. Since the sector privatization, in 1998, until December 2007, BNDES telecommunications department approved BRL7.9 billion financings to mobile phone companies. This amount represents 35% BRL 22 billion. 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. BRASIL TELECOM: Telemar Talks Get Government Support ---------------------------------------------------- Brasil Telecom's sale negotiations with Oi, fka Tele Norte Leste Participacoes, is getting the Brazilian government's support in a bid to limit control exerted by foreign-owned telecom firms in the market. The Financial Times says that Oi's US$2.7-billion purchase of Brasil Telecom will prevent a Telefonica-Telmex dominance in the industry. Telefonica SA is a Spanish telcom giant while Telmex is owned by Mexican bililonaire Carlos Slim, the world's richest man. The merging of the two local telcos will strengthen their position in the market and will allay the government's fears that separately, each company is no match for the Spanish and Mexican duo, the FT says. "The Oi-BrT merger would create a roughly level playing field where none of the three companies dominate," Ricardo Arajjo Silva, a telecoms analyst at Banco Ita� in Sao Paulo told the FT. Business News Americas said that under the deal, Telemar Norte offers BRL4.8 billion for holding company Solpart, which controls Brasil Telecom. Solpart is controlled by Citigroup, Opportunity Asset Management and Brazilian pensin funds, news daily Valor Economico says. Telemar Norte is controlled by La Fonte, Andrade Gutierrez, GP Investimentos, pension funds, and Brazilian development bank BNDES. While the deal may face antitrust problems, analysts said in reports that legislative changes will be made to accommodate the merger. About Telemar Norte 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. About Brasil Telecom 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. REALOGY CORP: Commences Exchange Offer for Three Senior Notes ------------------------------------------------------------- Realogy Corporation has commenced its exchange offer to all holders of its: -- US$1.7 billion principal amount of Senior Notes due 2014; -- US$550 million principal amount of Senior Toggle Notes due 2014; and -- US$875 million principal amount of Senior Subordinated Notes due 2015 to exchange their privately held Outstanding Notes for new publicly registered notes pursuant to its Registration Statement on Form S-4 that was declared effective by the Securities and Exchange Commission. The Exchange Notes are substantially identical to the Outstanding Notes except that the Exchange Notes will be freely tradable by persons who are not affiliated with Realogy and will not contain terms relating to registration rights. The exchange offer and withdrawal rights will expire at 5:00 p.m., New York City time, on Feb. 8, 2008, unless terminated or extended by Realogy in its sole discretion. The exchange offer is being made only by means of a prospectus, a copy of which may be obtained upon request by holders of the Outstanding Notes from: Wells Fargo Bank, National Association Attn: Bondholder Communications 608 2nd Avenue S Minneapolis, MN 55402 Tel (800) 344-5128 About Realogy Corporation Headquartered in Parsippany, New Jersey, Realogy Corporation - http://www.realogy.com/-- is comprised of the former real estate holdings of Cendant nka Avis Budget Group. Included in Realogy's stable of companies are Century 21 Real Estate, Coldwell Banker Real Estate, ERA, NRT Incorporated, and Sotheby's International Realty Affiliates. Its Title Resource Group fka Cendant Settlement Services, offers title settlement services for commercial and residential customers, and its Cartus unit facilitates employee relocation services. The company operates in Australia, Brazil and France. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2007, Moody's Investors Service assigned an SGL-3 speculative grade liquidity rating to Realogy Corporation and changed the rating outlook from stable to negative. At the same time, Moody's affirmed the B3 corporate family rating and all other credit ratings. SANYO ELECTRIC: To Pay FSA JPY8.3 Billion for Accounting Error -------------------------------------------------------------- Sanyo Electric Co., Ltd. said it will pay the Financial Services Agency an JPY8.3-million fine for issuing false financial statements over several years, Kyodo News reports. Last month, Sanyo, who apologized to its shareholders for causing trouble, corrected its unconsolidated earnings for the years from fiscal 2000 and admitted that it had paid around JPY28 billion in illegal dividends when the profits necessary to justify the payments were lacking, relates Kyodo News. According to the report, the Securities and Exchange Surveillance Commission recommended that the FSA fine Sanyo JPY8.3 billion in the form of a surcharge. The Troubled Company Reporter-Asia Pacific reported on Dec. 27, 2007, that Sanyo has amended its non-consolidated financial statements for the fiscal years 2000-2005 in conformance to practical business guidelines related to accounting standards and financial commodities accounting. Kyodo News states that the earnings corrections were necessary after Sanyo reassessed appraisal losses on shares of its semiconductor and liquid crystal display affiliates. On Dec. 25, 2007, Sanyo's stock was put under supervision for delisting by the Tokyo Stock Exchange after the correction announcement, Kyodo News adds. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. * BRAZIL: Petrobras Ranks Highest Market Value in Latin America --------------------------------------------------------------- Brazilian state-run oil firm Petroleo Brasileiro SA aka Petrobras is ranked as the company with the highest market value in Latin America, a study carried out by the Economatica consultancy firm. According to the study, the company is the leader among the 25 publicly held corporations with the highest value in the continent. As compared to the 25 biggest American corporations, Petrobras holds the fifth place. Petrobras' market value surged 125.3% in 12 months, topping-out at US$242.7 billion in late 2007. Also according to the consultancy's study, the Cia. Vale do Rio Doce ranks second, surpassing Mexican outfit America Movil, which holds the third place. Among the 25 companies the study listed, 13 are Brazilian. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp- - was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on 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 =========================== BREA EQUITY: Proofs of Claim Filing Is Until Jan. 21 ---------------------------------------------------- Brea Equity Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Brea Equity's shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Telephone: (345)-949-5122 Fax: (345)-949-7920 BREA HOLDINGS: Proofs of Claim Filing Ends on Jan. 21 ----------------------------------------------------- Brea Holdings Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Brea Holdings' shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Telephone: (345)-949-5122 Fax: (345)-949-7920 BREA INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 21 ------------------------------------------------------------ Brea Investments Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Brea Investments' shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Telephone: (345)-949-5122 Fax: (345)-949-7920 COMMERCIAL EQUITY: Proofs of Claim Filing Ends on Jan. 21 --------------------------------------------------------- Commercial Equity Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Commercial Equity's shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Telephone: (345)-949-5122 Fax: (345)-949-7920 COMMERCIAL INVESTMENTS: Proofs of Claim Filing Is Until Jan. 21 --------------------------------------------------------------- Commercial Investments Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Commercial Investments' shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Telephone: (345)-949-5122 Fax: (345)-949-7920 LAGUNA EQUITY: Proofs of Claim Filing Ends on Jan. 21 ----------------------------------------------------- Laguna Equity Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Laguna Equity's shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 LAGUNA HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21 ----------------------------------------------------------- Laguna Holdings Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Laguna Holdings' shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 LAKEHILL INVESTMENTS: Proofs of Claim Filing Ends on Jan. 21 ------------------------------------------------------------ Lakehill Investments Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Lakehill Investments' shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 LANDMARK EQUITY: Proofs of Claim Filing Deadline Is Jan. 21 ----------------------------------------------------------- Landmark Equity Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Landmark Equity's shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 MARCUS EQUITY: Proofs of Claim Filing Ends on Jan. 21 ----------------------------------------------------- Marcus Equity Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Marcus Equity's shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 MARCUS HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21 ----------------------------------------------------------- Marcus Holdings Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Marcus Holdings' shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 ORANGE EQUITY: Proofs of Claim Filing Is Until Jan. 21 ------------------------------------------------------ Orange Equity Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Orange Equity's shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 ORANGE INVESTMENTS: Proofs of Claim Filing Ends on Jan. 21 ---------------------------------------------------------- Orange Investments Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Orange Investments' shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 PARMALAT SPA: Deloitte Wants to Settle with Bondholder Group ------------------------------------------------------------ Deloitte & Touche Tohmatsu is proposing a settlement with around 32,000 Parmalat S.p.A. bondholders who lost their money when the dairy concern collapsed in December 2003, Thomson Financial reports. Deloitte, on behalf of former Dianthus S.p.A. unit, has agreed the settlement with the Committee for Parmalat bond clients of San Paolo IMI, which represents around 70% of bondholders who have filed damage actions in a Milan court, Thomson Financial relates. The proposal offers bondholders a payment of up to 6% of the nominal value of bond investments made before Nov 11, 2003, Deloitte was cited by Thomson Financial as saying. The proposal also offers an average of 4.5%-5.0% for up to EUR50,000 of bonds. The settlement plan, however, has no impact on Parmalat or on Intesa Sanpaolo S.p.A., Thomson Financial cites market sources as saying. Deloitte and Dianthus have denied any participation or knowledge of fraud by others in the Parmalat collapse. The audit firms said a settlement would help them avoid costs, complexity and uncertainty in legal actions. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted Parmalat Permanent Injunction. THIRTEEN MARINE: Proofs of Claim Filing Deadline Is Jan. 21 ----------------------------------------------------------- Thirteen Marine, Ltd.'s creditors are given until Jan. 21, 2008, to prove their claims to J. Ira Harris, 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. Thirteen Marine's shareholder decided on Dec. 12, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: J. Ira Harris 4th Floor, Scotia Center Albert Panton Street, P.O. Box 268 George Town, Grand Cayman KY1-1104 Cayman Islands Tel: 345 949 6258 Fax: 345 945 2877 WESTSHORE HOLDINGS: Proofs of Claim Filing Deadline Is Jan. 21 -------------------------------------------------------------- Westshore Holdings Limited's creditors are given until Jan. 21, 2008, to prove their claims to Westport Services Ltd., the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Westshore Holdings' shareholders agreed on Nov. 20, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Westport Services Ltd. Attention: Bonnie Willkom P.O. Box 1111, Grand Cayman KY1-1102 Cayman Islands Phone: (345)-949-5122 Fax: (345)-949-7920 ========= C H I L E ========= EASTMAN KODAK: Earns US$37 Million in 2007 Third Quarter -------------------------------------------------------- Eastman Kodak Company reported net income of US$37.0 million for the third quarter ended Sept. 30, 2007, compared with a net loss of US$37.0 million in the same period last year. Sales totaled US$2.58 billion, a decrease of 1% from US$2.60 billion in the third quarter of 2006. Digital revenue totaled US$1.59 billion, a 12% increase from US$1.42 billion. Traditional revenue totaled US$986.0 million, a 16% decline from US$1.17 billion in the year-ago quarter. The company reported third-quarter earnings from continuing operations of US$29.0 million pre-tax, US$34.0 million after tax, compared with a loss of US$53.0 million pre-tax, US$83.0 million after tax in the year-ago period. This represents an improvement of US$82.0 million pre-tax and US$117.0 million after-tax. Items of net expense impacting comparability in the third quarter of 2007 totaled US$94.0 million after tax. The most significant item was restructuring costs of US$127.0 million before tax and US$96.0 million after tax. In the third quarter of 2006, items of net expense impacting comparability totaled US$137.0 million after tax, primarily reflecting restructuring costs. "I am very pleased with our third-quarter performance, which represents a milestone in the emergence of the new Kodak," said Antonio M. Perez, chairman and chief executive officer, Eastman Kodak Company. "We delivered solid, value-creating digital growth, powered by a 12% increase in digital revenue, as well as expanded gross margins and positive net earnings. This increases my confidence in achieving our full-year goals and positions us well as we enter 2008." The company's third-quarter earnings from continuing operations, before interest, other income, net, and income taxes were US$20.0 million, compared with a loss of US$11.0 million in the year-ago quarter. Gross Profit margin was 26.4% for the quarter, up from 25.1% in the prior year, primarily attributable to lower costs from manufacturing footprint reductions, offset by adverse silver and aluminum costs. Net Cash Generation for the third quarter represented a use of US$95.0 million, compared with positive cash flow of US$151.0 million in the year-ago quarter. This corresponds to net cash provided by operating activities from continuing operations of US$1.0 million for the third quarter, compared with US$237.0 million in the year-ago quarter. The company's debt level stood at US$1.63 billion as of Sept. 30, 2007. This is a US$1.15 billion reduction from the 2006 year-end debt level of US$2.78 billion. Kodak held US$1.85 billion in cash and cash equivalents as of Sept. 30, 2007, an increase of US$745.0 million from the year- ago period. This was primarily the result of proceeds from the company's sale of its Health Group, which was completed in the second quarter of 2007. Balance Sheet At Sept. 30, 2007, the company's consolidated balance sheet showed US$12.93 billion in total assets, US$10.27 billion in total liabilities and US$2.66 billion 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?26f7 About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Co. (NYSE: EK)-- http://www.kodak.com/-- develops, manufactures, and markets digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. The company has operations in Argentina, Chile, Denmark, Greece, Jordan, Yemen, Australia, China among others. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 14, 2007, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Eastman Kodak Co. and removed the ratings from CreditWatch, where they had been placed with negative implications on Aug. 2, 2006. S&P said the outlook is negative. ROCK-TENN CO: Southern Buyout Deal Cues Moody's To Review Rating ---------------------------------------------------------------- Moody's Investors Service has placed the ratings of Rock-Tenn Company under review for possible downgrade following the company's announcement that it has signed a definitive agreement to acquire Southern Container Corp., a privately held containerboard manufacturing and corrugated packaging business. Under the terms of the agreement, Rock-Tenn will acquire the stock of Southern Container for US$851 million in cash and will assume approximately US$142 million in debt for a total purchase price of approximately US$993 million. Rock-Tenn plans to finance the acquisition with proceeds from US$1.0 billion in new credit facilities and with the issuance of US$400 million in unsecured notes. The transaction, which is subject to regulatory approvals, is expected to close in late March 2008. The incurrence of approximately US$1.1 billion of incremental indebtedness will more than double the company's existing debt. The review will focus on the proposed capital structure of the combined company, the integration process, and the anticipated operating and financial performance of the combined company. The review will also assess the combined company's business prospects, cash flow, liquidity arrangements and management structure, and is expected to be completed within 30 to 90 days. On review for possible downgrade: -- Probability of Default Rating, Placed on Review for Possible Downgrade, currently Ba2 -- Corporate Family Rating, Placed on Review for Possible Downgrade, currently Ba2 -- Senior Unsecured Bank Credit Facility, Placed on Review for Possible Downgrade, currently 40 - LGD3 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently 67 - LGD4 Outlook actions: -- Outlook, Changed To Rating Under Review From Stable Headquartered in Norcross, Georgia, Rock-Tenn Company (NYSE: RKT) -- http://www.rocktenn.com/-- provides a wide range of marketing and packaging solutions to consumer products companies, with operating locations in the United States, Canada, Mexico, Argentina and Chile. The company is one of North America's manufacturers of packaging products, merchandising displays and bleached and recycled paperboard. ROCK-TENN CO: S&P Places BB+ Corp. Credit Rating on WatchNeg ------------------------------------------------------------ Standard & Poor's Ratings Services has placed its 'BB+' corporate credit rating on Rock-Tenn Co. on CreditWatch with negative implications. At the same time, S&P placed the 'BB-' rating on the company's existing senior unsecured notes on CreditWatch with developing implications. The CreditWatch placement followed the company's announcement that it had agreed to acquire privately held Southern Container Corp. in an all-cash transaction for US$993 million, including US$142 million of outstanding debt that will remain at Southern Container. Rock-Tenn Co. intends to finance the transaction through funds provided by a fully committed bank facility and newly issued senior unsecured notes. In addition, the company intends to refinance its existing bank facility. S&P will withdraw its ratings on the existing bank credit facilities once they are refinanced. The transaction is expected to close by March 31, 2008, subject to regulatory approval. "While it is the company's intention to grant collateral to noteholders under the terms of the outstanding indentures," said S&P's credit analyst Andy Sookram, "the CreditWatch listing reflects our current uncertainty regarding the extent of the contemplated collateral package relative to the proposed bank facility, which could have a meaningful impact on the recovery prospects for the notes." Following this transaction, Rock-Tenn Co. will become more geographically diverse and should benefit from Southern Container's low-cost containerboard mill and modern corrugated box plant system. In resolving the CreditWatch listing, S&P will assess the company's future operating and financial objectives, in addition to its pro forma capital structure, in light of the proposed transaction. Headquartered in Norcross, Georgia, Rock-Tenn Company (NYSE: RKT) -- http://www.rocktenn.com/-- provides a wide range of marketing and packaging solutions to consumer products companies, with operating locations in the United States, Canada, Mexico, Argentina and Chile. The company is one of North America's manufacturers of packaging products, merchandising displays and bleached and recycled paperboard. =============== C O L O M B I A =============== PARKER DRILLING: Updates Kazakhstan Tax Case -------------------------------------------- Parker Drilling Company reported that in December 2007 a subsidiary paid US$26 million in income taxes to the Republic of Kazakhstan pursuant to a previously reported tax assessment. The payment is exclusive of interest and net of estimated taxes previously paid of approximately US$12 million. The Company will receive a foreign tax credit for this payment against future tax payments, which would otherwise be paid to the United States Treasury, excluding any currency exchange losses. The Kazakhstan branch of the Company's subsidiary has filed an appeal requesting a reduction in the interest. Parker has funded a portion of this tax payment by borrowing US$20 million of approximately US$45 million available under its revolving credit facility. It is anticipated that this US$20 million of borrowings will be repaid during the latter half of 2008. Parker also anticipates that it can fund any interest ultimately assessed from cash on hand or from additional borrowings under its revolving credit facility. About Parker Drilling Headquartered in Houston, Texas, Parker Drilling Company -- http://www.parkerdrilling.com/-- provides contract drilling and drilling-related services worldwide. The company has rigs located in Indonesia, New Zealand, Colombia and Mexico, among others. As reported in the Troubled Company Reporter-Latin America on Oct. 4, 2007, Standard & Poor's Ratings Services has raised its corporate credit rating on oil and gas contract driller Parker Drilling Co. to 'B+' from 'B'. At the same time, S&P has raised the issue ratings on Parker's senior and convertible notes to 'B+' from 'B-'. These consist of its US$125 million 2.125% convertible notes due 2012, and US$225 million 9.625% senior notes due 2013. POLYONE CORP: Completes Acquisition of Ngai Hing PlastChem ---------------------------------------------------------- PolyOne Corporation has completed its previously announced acquisition of the assets and operations of Ngai Hing PlastChem Company Ltd., the vinyl-compounding subsidiary of Ngai Hing Hong Company Ltd. A subsidiary of Ngai Hing Hong will hold a 5% interest in the new company that PolyOne Corp. will establish to conduct its vinyl compound business in Asia. This acquisition expands PolyOne Corp.'s geographic footprint and is further testament to the company's globalization emphasis, one of the four key components of its overall corporate strategy. Globalization moves the company into high- growth markets where its customers are migrating, and positions the company to serve them with consistency everywhere in the world. "The acquisition of Ngai Hing PlastChem Company creates further opportunities for us in Asia, in line with our globalization strategy," said senior vice president and general manager of Vinyl Business, Robert M. Rosenau. "We look forward to accelerating our global growth and delivering the value our customers expect from PolyOne." Included in the transaction is the transfer of a manufacturing facility in Dongguan, a city in the Guangdong province of southern China. This plant will be the company's fourth manufacturing site in China; the other three make a broad array of specialty products for the business equipment, electrical, packaging and textile printing markets. About PolyOne Corp. Headquartered in northeast Ohio, PolyOne Corporation (NYSE: POL) -- http://www.polyone.com/ -- is a leading global provider of specialized polymer materials, services and solutions. PolyOne has operations in North America, Europe, Asia and Australia, and joint ventures in North America and South America. The company maintains operations in China, Colombia, Thailand and Singapore. * * * Moody's Investor Services placed PolyOne Corporation's senior unsecured debt, long-term corporate family and probability of default ratings at 'B1' in July 2007. The ratings still hold to date with a stable outlook. SOLUTIA INC: Joins Panel in Showing Cross-Appeal Issues v. BNY -------------------------------------------------------------- Solutia Inc. and certain of its subsidiaries and affiliates and the Official Committee of Unsecured Creditors present issues in their cross-appeal from the U.S. Bankruptcy Court for the Southern District of New York's final order granting partial summary judgment in favor of the Debtors and the Committee. The judgment is related to the Debtors' objection to the Bank of New York's Claim No. 6210. The Bank of New York is the indenture trustee for the holders of the 11.25% senior secured notes due 2009. The cross-appeal encompasses all other orders rendered appealable, including the memorandum decision on joint motion for partial summary judgment with respect to Claim No. 6210, as modified by the errata order entered on Nov. 21, 2007. The Committee has filed before the Court a motion for the application of certain postpetition payments made to Bank of New York on behalf of the 2009 Noteholders in reduction of the principal amount of the 2009 Noteholders' Claim. The Postpetition Interest Motion sought a determination by the Court as to whether the 2009 Noteholders are receiving and will continue to receive more than the amount of postpetition cash interest payments than the 2009 Noteholders are entitled under Section 506(b) of the Bankruptcy Code. At a Dec. 10, 2007 hearing on the Postpetition Interest Motion, the Court opined that the parties had stipulated on the record to the amount of postpetition cash interest payments due to the 2009 Noteholders, and that the stipulation was reflected in the Court's Order and Memorandum Decision. The Court denied, without prejudice, the Committee's request for application of around US$12,100,000 in postpetition payments made to Bank of New York, as indenture trustee for the 11.25% senior secured notes due 2009 issued by Solutia, or its predecessor, in reduction of the principal amount of the 2009 Noteholders' Claim No. 6210. The Debtors and the Committee do not agree that the parties made that stipulation or that the Order or Memorandum Decision reflect the stipulation or address the issue of postpetition cash interest. The Cross-Appellants filed their protective cross-appeal to resolve these issues: (a) Whether the Court, in the Memorandum Decision or Order, determined the proper amount of postpetition cash interest payments to which the 2009 Noteholders are entitled under Section 506(b), as the Court indicated on the record at the Dec. 10, 2007 hearing on Cross- Appellants' Motion; and (b) If so, whether the Court erred in finding that the 2009 Noteholders are entitled to receive an amount of postpetition interest that exceeds the amount due under Section 506(b). As reported in the Troubled Company Reporter on Dec. 5, 2007, The Bank of New York, as Indenture Trustee for the 2009 Notes, issued by Solutia and its predecessor, takes an appeal to the Court under 28 U.S.C. Section 158(a) from each and every part of: (a) the order of the Court denying BNY's request for relief from the automatic stay, entered Nov. 26, 2007; (b) the Court's November 9 memorandum decision on joint motion partial summary judgment with respect to Claim No. 6210, and the Nov. 26 final order granting partial summary judgment in favor of the Debtors and the Official Committee of Unsecured Creditors regarding the Debtors' objection to BNY's Claim No. 6210; and (c) the Court's ruling on BNY's emergency motion for reconsideration of the Memorandum Decision on Joint Motion for Partial Summary Judgment, issued on Nov. 26. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. The company has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, the Court confirmed the Debtors' Consensual Plan. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 10, 2007, Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed US$1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%-70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed US$400 million unsecured notes. =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: SECCI To Develop Biofuels Production Study ---------------------------------------------------------------- The Inter-American Development Bank has approved a US$750,000 donation from SECCI funds for developing feasibility studies of biofuels production initially in Haiti, El Salvador, and the Dominican Republic. SECCI will support countries in the region in order to develop its biofuel industry. The studies will be carried out by Brazil's Getulio Vargas Foundation within the framework laid out by the US-Brazil Initiative for Biofuels in Central America and the Caribbean. FGV has established a successful methodology that has been applied in similar studies in Brazil. "The application of this uniform methodology will allow the establishment of the limitations advantages of each of the countries and if it were possible to make full use of these conditions to launch the repositioning of the region as a competitive force in the international market," said Laura Natalia Rojas, one of the leaders of the IADB team. "For the United States and Brazil, the largest producers and consumers of ethanol in the world, it's indispensable to develop a competitive and sustainable global market," said Arnaldo Vieira de Carvalho, the other team leader. "Central America and the Caribbean have very good potential in this new market due to their geographic location and the benefits given to them by international treaties such as the Dominican Republic and Central American Free Trade Agreement (DR-CAFTA)." The program will be conducted in coordination with Brazil's Export and Investment Promotion Agency and the corresponding authorities in each country. The activities will be carried out by a team of technical, financial, and commercial experts, provided by the Getulio Vargas Foundation. This team will apply the same methodology to all beneficiary countries in the program. SECCI Fund The SECCI Fund was launched in November 2006 with an initial IDB contribution of US$20 million and has subsequently received a US$2.8 million donation from the United Kingdom. The fund backs major investments in the development of biofuels, renewable energy, energy efficiency, and a wide range of sustainable energy options. In certain cases, the fund will also finance programs and policies aimed at fighting climate change in the region, according to Juan Pablo Bonilla, SECCI coordinator. Institutions that can contribute to the fund include government ministries, government agencies tasked with dealing with the issue of climate change, planning entities, public and private companies, sub-national governments, private investors, non- governmental organizations, and academic institutions. * * * As reported in the Troubled Company Reporter-Latin America on May 4, 2007, Moody's Investors Service upgraded the Dominican Republic government's foreign- and local-currency bond ratings to B2 from B3. The Dominican Republic's foreign-currency country ceiling was upgraded to Ba3 from B1. The country's ceiling for foreign-currency bank deposits was also upgraded to B3 from Caa1. Moody's said all ratings have stable outlook. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Standard & Poor's Ratings Services assigned B+ long-term sovereign local and foreign currency ratings and C short-term sovereign local and foreign currency ratings on the Dominican Republic. S&P said the outlook for all the ratings is stable. ============= E C U A D O R ============= PETROECUADOR: Buys Jet from Embraer ----------------------------------- Ecuadorian state-owned oil firm Petroecuador has signed an accord with Embraer to buy an ERJ 145 jet. The contract also includes a significant logistical package for supplying replacement parts, technical support and crew training. This deal is already included in Embraer's firm order backlog disclosed on Jan. 9. "We are very happy to receive this order from Petroecuador. We offer an excellent product with the best technical and economic conditions in the market," said Luis Carlos Aguiar, Embraer Executive Vice President of Defense and Government Market. Delivery of the 50-seat jet will be in the second half of this year. The aircraft will operate from Quito (the nation's capital) to the Lago Agrio and El Coca airports, located in Ecuador's Amazon region. Petroecuador expects to transport about 50,000 employees per year between the company's main office and its branches. "After an extensive evaluation process, Petroecuador chose Embraer's ERJ 145 as the best plane for carrying its employees safely and economically," stated Rear Admiral Fernando Zurita Fabre. "The outstanding performance at high altitudes, in addition to low maintenance costs and the high reliability of the aircraft, were decisive factors for our choice." The ERJ 145 jet is the first member of a diversified aircraft family of which more than 1,000 units have been delivered. Since entering service in 1996, the ERJ 145 family has accumulated over 12 million flight hours. In the Defense and Government segment, Embraer aircraft operate in over 20 countries, worldwide. About Embraer Embraer-Empresa Brasileira de Aeronautica S.A. aka Embraer is a manufacturer of commercial aircraft. The company is a supplier of defense aircraft for the Brazilian Air Force. It has also sold aircraft to military forces in Europe, Asia and Latin America. Embraer operates four segments: commercial aviation, defense and government, executive aviation, and customer services and others. The commercial aviation segment includes the development, production and marketing of commercial jets and provision of related support services, principally to the airline industry worldwide. Operations in the defense and government segment involve research, development, production, modification and support of military aircraft, products and related systems. The executive aviation segment has developed a line of executive jets. The customer services and others segment relates mainly to after-sales customer support services, and the manufacture and marketing of spare parts for the Company's aircraft. About Petroecuador In previous years, Petroecuador, according to published reports, was faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much- needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. In 2008, a new management team was appointed to turn around the company's operations. PETROECUADOR: Reports US$4.012 Billion 2007 Oil Export Revenues --------------------------------------------------------------- Ecuadorian state-run oil firm Petroecuador's oil export revenues increased 8% to US$4.012 billion in 2007, compared to US$3.730 billion in 2006, Dow Jones Newswires reports. Data from Petroecuador indicated that in terms of volume, Petrocuador exported some 66.60 million barrels of crude oil last year, about 7% less than the 71.97 million barrels exported in 2006, Dow Jones notes. According to Dow Jones, Petroecuador's exports includes the Napo crude from former Occidental Petroleum Co. fields that the government confiscated in May 2006 after the US firm allegedly breached the terms of its operating contract. Dow Jones relates that exports of Oriente crude totaled 43.77 million barrels last year. Exports of Napo crude were 22.83 million barrels. The average price of Oriente crude in 2007 grew 18% to US$62.27 a barrel, compared to US$52.80 in 2006. Meanwhile, the price of Napo crude was US$56.34 per barrel in 2007, about 16% higher compared to US$48.56 in 2006, Dow Jones states. In previous years, Petroecuador, according to published reports, was faced with cash-problems. The state-oil firm has no funds for maintenance, has no funds to repair pumps in diesel, gasoline and natural gas refineries, and has no capacity to pay suppliers and vendors. The government refused to give the much- needed cash alleging inefficiency and non-transparency in Petroecuador's dealings. In 2008, a new management team was appointed to turn around the company's operations. ===================== E L S A L V A D O R ===================== ALCATEL-LUCENT: Signs Turnpike Deal Connecting Hawaii to Tahiti --------------------------------------------------------------- Alcatel-Lucent SA has signed a turnkey contract with French Polynesian operator Office des Postes & Telecommunications. According to this agreement, Alcatel-Lucent will roll out a new, high-speed submarine cable network linking Tahiti in French Polynesia to Hawaii in the United States, as well as providing domestic connectivity. This new submarine network, with a value of 72.2 M Euros, has been called 'Honotua' (a Tahitian name meaning the link towards the open sea) and it will greatly increase French Polynesia's local and international connectivity. Accordingly, the French Polynesian comapny will be able to respond at more affordable costs, to the growing demand for broadband services of its business and residential users. By providing the first submarine connection in French Polynesia, this network will also help reduce the digital divide in the Pacific region. Delivering an ultimate capacity of 32x10 Gbit/s, the 'Honotua' network will be composed of an international link between Tahiti and Hawaii (4,650 km) and a domestic connection (305 km) linking some of the islands in the French Polynesian archipelago. With completion scheduled in 2010, the 'Honotua' submarine cable network will ease the availability and accessibility to high quality, innovative broadband applications such as telemedicine, e-learning and on-line tourism programs. "This is a fundamental endeavor for French Polynesia aiming to fuel economic and social viability for our community" points out French Polynesia's Minister of Culture, Post & Telecommunications, M. Jacqui Drollet. "The new broadband services and business-driven applications this network will make available will allow us to improve the quality of life for our citizens." "The adoption rates of data services are growing fast, as well as end-users' needs for bandwidth, reliability and service delivery speeds," emphasizes OPT's Chairperson of the Board, Jean-Paul Barral. "With its recognized experience, Alcatel- Lucent is a trusted technology partner as we take a new step in our communication capabilities to meet these new service demands reliably and at affordable costs." "This contract confirms Alcatel-Lucent's commitment to helping customers like OPT bridge the digital divide and spur sustainable growth", says President of Alcatel-Lucent's submarine network activity, Etienne Lafougere. "Our solutions give access to advanced technologies for delivering high added- value broadband services and applications that stimulate socio- economic development." This new contract further strengthens the long-lasting cooperation between Alcatel-Lucent and Office des Postes & Telecommunications that already deploys Alcatel-Lucent's wireless and access solutions to extend service reach in less dense and remote rural areas of the archipelago. About OPT Office des Postes & Telecommunications is a public entity fully owned by the territory of French Polynesia. Its main duty is to provide comprehensive telephony services and is committed to improve access to all forms of information all over French Polynesia, including remote islands. Its 81 postal offices are able to deliver postal and simple banking services as well. The company fully owns or controls entities such as Tikiphone for mobile GSM services, MANA for internet services, Tahiti Nui Satellite which operates 23 channels direct to home video services, Tahiti Nui Telecom for International Telephone traffic and finally, ISS as ITC in addition to providing advice, IT consultancies often implement, deploy, and administer IT systems. About the Alcatel-Lucent solution The Alcatel-Lucent submarine solution will be based on its 1620 Light Manager next-generation DWDM submarine platform, and will also include cable and submarine repeaters, providing direct connectivity to landing stations. A comprehensive suite of professional services, including permitting and project management, engineering, marine operation, installation, testing and commissioning, is part of this turnkey project. About Alcatel-Lucent Headquartered in Paris, France, Alcatel-Lucent S.A. -- http://www.alcatel-lucent.com/-- provides solutions that enable service providers, enterprises and governments worldwide to deliver voice, data and video communication services to end users. Alcatel-Lucent maintains operations in 130 countries, including, Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada, United States, Costa Rica, Dominican Republic, El Salvador, Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and Cambodia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short-term debt of Alcatel-Lucent. Moody's said the outlook for the ratings is stable. Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's Ratings Services' BB rating. Its Short-Term Corporate Credit rating stands at B. * EL SALVADOR: SECCI Developing Biofuels Production Study --------------------------------------------------------- The Inter-American Development Bank has approved a US$750,000 donation from SECCI funds for developing feasibility studies of biofuels production initially in Haiti, El Salvador, and the Dominican Republic. SECCI will support countries in the region in order to develop its biofuel industry. The studies will be carried out by Brazil's Getulio Vargas Foundation within the framework laid out by the US-Brazil Initiative for Biofuels in Central America and the Caribbean. FGV has established a successful methodology that has been applied in similar studies in Brazil. "The application of this uniform methodology will allow the establishment of the limitations advantages of each of the countries and if it were possible to make full use of these conditions to launch the repositioning of the region as a competitive force in the international market," said Laura Natalia Rojas, one of the leaders of the IADB team. "For the United States and Brazil, the largest producers and consumers of ethanol in the world, it's indispensable to develop a competitive and sustainable global market," said Arnaldo Vieira de Carvalho, the other team leader. "Central America and the Caribbean have very good potential in this new market due to their geographic location and the benefits given to them by international treaties such as the Dominican Republic and Central American Free Trade Agreement (DR-CAFTA)." The program will be conducted in coordination with Brazil's Export and Investment Promotion Agency and the corresponding authorities in each country. The activities will be carried out by a team of technical, financial, and commercial experts, provided by the Getulio Vargas Foundation. This team will apply the same methodology to all beneficiary countries in the program. SECCI Fund The SECCI Fund was launched in November 2006 with an initial IDB contribution of US$20 million and has subsequently received a US$2.8 million donation from the United Kingdom. The fund backs major investments in the development of biofuels, renewable energy, energy efficiency, and a wide range of sustainable energy options. In certain cases, the fund will also finance programs and policies aimed at fighting climate change in the region, according to Juan Pablo Bonilla, SECCI coordinator. Institutions that can contribute to the fund include government ministries, government agencies tasked with dealing with the issue of climate change, planning entities, public and private companies, sub-national governments, private investors, non- governmental organizations, and academic institutions. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Standard & Poor's Ratings Services has assigned BB+ long-term sovereign local and foreign currency ratings and B short-term sovereign local and foreign currency ratings on El Salvador. S&P said the outlook for all the ratings is stable. ================= G U A T E M A L A ================= BANCO G&T: S&P Affirms BB-/B Foreign Counterparty Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'BB-/B' foreign currency, counterparty, and CD ratings on Banco G&T Continental S.A. The outlook is stable. At the same time, S&P affirmed its 'BBB-' survivability assessment on the bank. "The affirmation is the result of improvements in capitalization that are in tandem with our expectations. In addition, we expect improvements in risk management capabilities to pay off, as the bank ventures into the retail market. The affirmation on our survivability assessment follows the bank's gains on market share and the Guatemalan banking system's ongoing consolidation process; G&T Continental has benefited from it," said S&P's credit analyst Francisco Suarez. During the next few years, stock-ownership support will be reflected in limited dividend payments, planned capital injections at the bank and holding company, and institutional ownership. The bank's management team is focused on improving risk management capabilities to adequately cover the retail market. The outlook is stable. Current and expected net capital injections, in addition to the issuance of preferred shares, should be enough to improve the bank's capitalization toward more reasonable levels. In addition, S&P believes that the bank will continue its efforts to improve its risk management capabilities. If the bank maintains steady adjusted capitalization levels above the 9% mark, pays debt at the holding company, and improves profitability towards 2% ROA, the ratings could be positively affected. However, if asset quality deteriorates, or if profitability or liquidity is pressured, the ratings could be negatively affected. Banco G&T Continental SA is the second-largest bank in Guatemala, with a 17% market share in deposits and 13% in loans. The bank has been able to develop a large distribution network and benefit from a growing, stable, and diversified deposit base that, in turn, provides enough flexibility for growth as loans represents 51% of core deposits. BANCO INDUSTRIAL: S&P Affirms BB-/B Counterparty Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'BB-/B' counterparty credit and CD ratings on Banco Industrial S.A. The outlook is stable. At the same time, S&P affirmed its 'BBB-' survivability assessment. The rating affirmation assumes that existing leverage at the holding company that financed the acquisition of Banco del Pais (Banpais; not rated) in Honduras will be eliminated within the next six months. Also, the affirmation considers the bank's enhanced capabilities for internal capital generation, and the restoration of the bank's capitalization since 2006 when the bank began to consolidate assets in Guatemala. The affirmation of S&P's survivability assessment on Banco Industrial follows the bank's gains in market share and the Guatemalan banking system's ongoing consolidation process, from which the bank has benefited. "Our ratings on BI are limited by the bank's low adjusted capitalization levels, and aggressive financial policies that lead to double-leverage and structural asset concentrations, mainly in its investment portfolio. Our ratings consider the bank's leading market position in Guatemala, the support from BI's stockholders, and improving financial performance," said S&P's credit analyst Francisco Suarez. In S&P's opinion, the bank has engaged in aggressive financial policies to finance inorganic growth. As long as debt at the holding company that financed the acquisition of Banpais in Honduras exists, internal capital generation accretion at the bank could decrease due to the potential need to upstream dividends. The acquisition is relevant as Banpais represents 14% of Banco Industrial's total assets and with this, 25% of the banks' total loan portfolio is related to countries other than Guatemala. The acquisition also exposes the bank to more vulnerable economies. Banco Industrial has benefited from the flight to quality and increased market share following the intervention of some troubled local banks. The bank's market share, including Banco del Quetzal, was 27% as of November 2007, up from 19% in March 2006. The outlook is stable. S&P expects Banco Industrial to eliminate double leverage at the holding company in the next six months. In addition, S&P expects that the bank's stockholders to remain supportive of the bank in the form of limited dividends and additional capital injections. Also, S&P expects the bank to issue hybrids to increase its adjusted capitalization toward 8% and maintain it as it is entering more