T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, January 17, 2008, Vol. 9, Issue 12
Headlines
A R G E N T I N A
ASOCIACION DE COOPERATIVAS: Moody's Puts B2 Global Curr. Rating
FLORES AUTOMOTORES: Trustee Filing Individual Reports on Feb. 28
GIMENEZ Y WAGNER: Proofs of Claim Verification Ends on Feb. 29
PIONEER NATURAL: S&P Assigns BB+ Rating on US$400-Mln Sr. Notes
SIRCI SRL: Proofs of Claim Verification Deadline Is Feb. 28
TELEFONICA DE ARGENTINA: May Launch Satellite Television
WR GRACE: Court Approves U.S. Trustee's Plea To Appoint Examiner
B A H A M A S
HARRAH'S ENTERTAINMENT: Moody's Assigns B2 Corp. Family Rating
METROPOLITAN BANK: To Appeal Tax Court's Ruling on PHP229MM Case
B E L I Z E
INNOVATIVE COMM: Court Okays Sale of V.I. Community Bank to FBNC
B E R M U D A
REFCO INC: Ex-Counsel Settles Fraud Claims for US$7.6 Million
B O L I V I A
COEUR D'ALENE: Promotes Key Officers in Bolivia, Mexico & Alaska
B R A Z I L
BANCO ITAU: Selling Redecard Stake with Citigroup, Unibanco
BRASKEM SA: Fitch Affirms Issuer Default Ratings at BB+
COMPANHIA PARANAENSE: Acquires Domino's 30% Stake in Sanepar
DELPHI CORP: Commences Exit Financing Syndication
DELPHI CORP: Expands Supply Contract with VaST Systems
DELPHI CORP: US Trustee Balks at Panel's Exit Loan Participation
EMI GROUP: Terra Firma Outlines Restructuring Plan
FIDELITY NATIONAL: Robert W. Baird Keeps Outperform Rating
JAPAN AIRLINES: FY2008 Expected To Bring In Profit After 3 Years
JAPAN AIRLINES: May Cancel Card Unit Stake Sale, Insiders Say
KRATON POLYMERS: Board Taps Kevin Fogarty as President & CEO
NET SERVICOS: Names Jose Antonio Guaraldi Felix as CEO
NET SERVICOS: S&P Assigns BB Rating on US$200-Mln Sr. Debt Issue
SYNIVERSE TECH: Reports 2007 Full Year Preliminary Results
UAP HOLDING: S&P Says Deal Delays Won't Affect Agrium's Rating
UNIAO DE BANCOS: Selling Redecard Stake with Citigroup, Itau
UNITED AIRLINES: Pilots Group Won't 'Rubber Stamp' Any Merger
VALMONT INDUSTRIES: S&P Ups Corp. Credit Rating to BB+ from BB
* BRAZIL: Pelotas Gets US$18.9-Million Financing from World Bank
* BRAZIL: Petrobras & Repsol Find NatGas in Peru's Block 57
* BRAZIL: Petrobras Inks Cooperation Deal with Companhia Cubana
C A Y M A N I S L A N D S
BASSO PRIVATE: Proofs of Claim Filing Deadline Is Jan. 24
OAK CAPITAL: Final Shareholders Meeting Is on Jan. 24
OPUS INVESTMENTS: Final Shareholders Meeting Is on Jan. 22
ORICO ARTEMIS: Holding Final Shareholders Meeting on Jan. 24
ORIENTAL CAPITAL: Sets Final Shareholders Meeting for Jan. 22
PALM CAPITAL: Will Hold Final Shareholders Meeting on Jan. 24
SEQUIOA CAPITAL: Holding Final Shareholders Meeting on Jan. 24
TAIB FUNDS: Sets Final Shareholders Meeting for Jan. 24
C H I L E
QUEBECOR WORLD: Fails To Get Financing on Securitization Waivers
C O L O M B I A
GRAN TIERRA: Closes Costayaco-2 Drilling in Putumayo Basin
SOLUTIA INC: Mulls Offering US$400 Mil. of Senior Unsec. Notes
C O S T A R I C A
* COSTA RICA: Launching Tender for Las Pailas Geothermal Project
C U B A
* CUBA: Brazilian President's Visit To Include Oil Pact Signing
E C U A D O R
* ECUADOR: Says OPEC Doesn't Need To Increase Oil Output Quota
E L S A L V A D O R
ALCATEL-LUCENT: Bags U.S. Cellular's Network Expansion Contract
G U A T E M A L A
* GUATEMALA: Obtains US$400,000 Loan for Biofuels Project
G U Y A N A
FLOWSERVE CORP: 2007 Full Year Bookings Up 19% to 4.3 Billion
M E X I C O
AMERICAN GREETINGS: Completes Tender Offer of PhotoWorks' Shares
BIO-RAD LABORATORIES: S&P Upgrades Corporate Credit Rating
DURA AUTOMOTIVE: Pacificor Still Silent on Deal Outlook
DURA AUTOMOTIVE: Wants to Move Plan-Filing Deadline to April 30
HORNBECK OFFSHORE: Earns US$28.9 Million in 2007 Third Quarter
GRUPO MEXICO: Union Launching Nationwide Strike
MOVIE GALLERY: Court Extends Removal Period to July 14
MOVIE GALLERY: Wants Exclusive Period Extended to June 13
MOVIE GALLERY: Wants Lease Decision Period Extended to May 13
P U E R T O R I C O
FIRST BANCORP: Sterne Agee Puts Hold Rating on Firm's Shares
JUAN RIVERA RIVERA: Case Summary & 14 Largest Unsec. Creditors
PSYCHIATRIC SOLUTIONS: Earns US$20.3 Mil. in 2007 Third Quarter
SUNCOM WIRELESS: Posts US$5.1 Mil. Net Loss in 2007 3rd Quarter
UNIVISION COMM: Names Lisa McCarthy as Partnership Marketing EVP
T R I N I D A D & T O B A G O
INVACARE CORP: Gregory Thompson To Quit as Chief Fin'l Officer
U R U G U A Y
ABN AMRO: Santander Uruguay Absorbs Company's Local Operations
V E N E Z U E L A
SHAW GROUP: Boosts Credit Facility to US$1 Billion
* VENEZUELA: Boosts PetroCaribe Agreement with Honduras
* VENEZUELA: Cantv Deploys Fixed Telephony & Internet Services
* VENEZUELA: No Plans To Cut Oil Exports to U.S., Says Chavez
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A R G E N T I N A
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ASOCIACION DE COOPERATIVAS: Moody's Puts B2 Global Curr. Rating
---------------------------------------------------------------
Moody's Latin America has assigned a B2 Global Local Currency
Rating and A1.ar National Scale Rating to Asociacion de
Cooperativas Argentinas' bank credit lines with Banco de la
Nacion Argentina (not rated). The outlook is positive.
The ratings assigned to Asociacion de Cooperativas' Banco de la
Nacion credit lines, which amount to approximately US$63
million, are at the same level as the cooperative's B2 Corporate
Family Rating. This is because most of the cooperative's debt
is composed of similar bank pre-export financing with no
collateral other than export receivables and nearly identical
financial covenants. Total bank debt outstanding amounted to
US$185 million as of June 30, 2007.
The driver for the ratings and the positive outlook are the
cooperative's strong credit metrics for its current B2 rating
category and the likely continued improvement in its credit
profile.
The B2 rating is supported by the cooperative's business mix
diversity, strong member relationships, logistics capacity and
the stability of its member services revenues. It also reflects
its geographic concentration in Argentina and relatively small
scale, as well as lack of product differentiation and low
margins, typical of the commodity business
The stability of the profitable export business has supported
overall profitability during periods of weakness in commodity
trading. More recently, as commodity prices have increased,
that business has strengthened, leading to the improved debt
protection measures of the past year, including: debt to EBITDA
that has dropped from 4.7 times to 4.1 times and RCF to debt
that has increased to 21% from 14%.
As the company has expanded its member services business it has
increased inventories, to approximately US$200 million, which
has been funded with short-term debt. The company does not hold
open positions and therefore Moody's doesn't see it increasing
its commodity risk. Moody's expects that inventories will
gradually move towards normalized levels in the near to medium
term.
The positive rating outlook reflects the cooperative's ability
to stabilize credit metrics and Moody's view that it will
continue to be able to sustain relatively strong operating
performance and market share during normal levels of commodity
price volatility.
Upward rating pressure could build if the credit metrics prove
such that debt to EBITDA was sustained below 5.0 times and EBIT
to interest above 2.5 times.
Although a rating downgrade is not likely in the near term,
downward pressure could build if there is a negative shift in
the cooperative's market position, business model, operating
efficiency or market share. A rating downgrade would also be
considered if Debt to EBITDA rises above 6.0 times, if EBIT to
Interest falls below 1.5 times or if working capital needs
continue to increase.
Founded in 1922, Asociacion de Cooperativas Argentinas is an
agricultural cooperative that is among the most important grain
exporters in Argentina, with an annual traded volume of 10.7
million tons during the harvest season 2006/2007, or 11% of
Argentina's production. With more than 150 associated members
(co-ops) ACA had revenues for the fiscal year ending
June 30, 2007 of ARS 2.5 billion (approximately US$770 million).
FLORES AUTOMOTORES: Trustee Filing Individual Reports on Feb. 28
----------------------------------------------------------------
Oscar Antonio Carballo, the court-appointed trustee for Flores
Automotores S.A.'s bankruptcy proceeding, will present the
validated claims in the National Commerical Court of First
Instance in General Roca, Rio Negro, individual reports on
Feb. 28, 2008.
Mr. Carballo verified creditors' proofs of claim until
Dec. 3, 2007. He will also submit a general report containing
an audit of Flores Automotores' accounting and banking records
in court on April 28, 2008.
The debtor can be reached at:
Flores Automotores S.A.
Avenida Roca 935, General Roca
Rio Negro, Argentina
The trustee can be reached at:
Oscar Antonio Carballo
Neuquen 1622, General Roca
Rio Negro, Argentina
GIMENEZ Y WAGNER: Proofs of Claim Verification Ends on Feb. 29
--------------------------------------------------------------
Raul Sixto Niscola Comaudo, the court-appointed trustee for
Gimenez y Wagner S.R.L.'s bankruptcy proceeding, verifies
creditors' proofs of claim until Feb. 29, 2008.
Mr. Comaudo will present the validated claims in court as
individual reports on April 18, 2008. The National Commercial
Court of First Instance in Mendoza will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by Gimenez y Wagner and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Gimenez y Wagner's
accounting and banking records will be submitted in court on
June 2, 2008.
Mr. Comaudo is also in charge of administering Gimenez y
Wagner's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Gimenez y Wagner S.R.L.
Rioja 216, Ciudad de Mendoza
Mendoza, Argentina
The trustee can be reached at:
Raul Sixto Niscola Comaudo
9 de Julio 1126, Ciudad de Mendoza
Mendoza, Argentina
PIONEER NATURAL: S&P Assigns BB+ Rating on US$400-Mln Sr. Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'BB+' senior
unsecured rating to the proposed US$400 million convertible
senior notes offering of Pioneer Natural Resources Co.
(BB+/Stable/--). The proposed notes will mature in 2038, and
have call and put features beginning in 2013. The company will
use proceeds to repay borrowings under its bank facility. As of
Sept. 30, 2007, Irving, Texas-based company had US$2.7 billion
of debt outstanding.
"The ratings on Pioneer are based on a satisfactory business
risk profile incorporating participation in the exploration and
production sector of the oil and gas industry, coupled with an
aggressive financial risk profile," said S&P's credit analyst
Ben Tsocanos.
Ratings List:
-- Corporate credit rating BB+/Stable/--
New Rating:
-- US$400 million convertible senior notes BB+
Pioneer Natural Resources Co. is an independent exploration and
production company. It holds proven reserves of 789.1 million
barrels of oil equivalent. The vast majority of its reserves
are found within the United States, but Pioneer also explores
for and produces oil and gas in Argentina, Canada, Gabon, South
Africa, and Tunisia. In 2004, it acquired Evergreen Resources,
in a US$2.1-billion deal that expanded its proven reserves by
33%.
SIRCI SRL: Proofs of Claim Verification Deadline Is Feb. 28
-----------------------------------------------------------
Fernando Rafael Gonzalez, the court-appointed trustee for Sirci
S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of
claim until Feb. 28, 2008.
Mr. Gonzalez will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in San Carlos de Bariloche, Rio Negro, will determine
if the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by Sirci and its creditors.
Infobae didn't state the deadline for the submission of
individual reports.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Sirci's accounting
and banking records will be submitted in court on May 29, 2008.
Mr. Gonzalez is also in charge of administering Sirci's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Sirci S.R.L.
Gallardo 1205, San Carlos de Bariloche
Rio Negro, Argentina
The trustee can be reached at:
Fernando Rafael Gonzalez
Vte. O Connor 665, San Carlos de Bariloche
Rio Negro, Argentina
TELEFONICA DE ARGENTINA: May Launch Satellite Television
--------------------------------------------------------
Telefonica de Argentina may launch a satellite television or
direct-to-home services, Business News Americas reports.
BNamericas relates that a study by telecoms consulting company
Signals Telecom Consulting shows that the potential launch of
the service will allow competitive prices for triple play
service in the local market.
Signals Telecom told BNamericas that the possible launch of
triple play packages by Telefonica de Argentina and local media
firm Grupo Clarin may lead to discounts of over 30% compared to:
-- cable television,
-- fixed telephony, and
-- broadband services.
Signals Telecom's study says that Grupo Clarin would launch
triple play, BNamericas notes.
According to BNamericas, the launching of triple play services
by telcoms will boost competition. Cable television operators
can offer triple play packages.
Signals Telecom is positive that the triple play service could
be modified once Telefonica de Argentina launches cable
television through satellite technology.
BNamericas says that Telefonica de Argentina said last year that
it would launch IPTV services.
The offering of such a service is not allowed by regulations,
Signals Telecom's senior analyst Diego Bubillo told BNamericas.
Telefonica may follow in Argentina its regional strategy. It is
already offering triple play in Brazil, Chile, Peru and Colombia
through DTH technology, BNamericas states, citing Mr. Bubillo.
Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina SA -- http://www.telefonica.com.ar/-- provides
telecommunication services, which include telephony business
both in Spain and Latin America, mobile communications
businesses, directories and guides businesses, Internet, data
and corporate services, audiovisual production and broadcasting,
broadband and Business-to-Business e-commerce activities.
* * *
Telefonica de Argentina's foreign currency rating is rated B2 by
Moody's Latin America with a positive outlook.
WR GRACE: Court Approves U.S. Trustee's Plea To Appoint Examiner
----------------------------------------------------------------
The Honorable Alan Shiff of the U.S. Bankruptcy Court for the
District of Connecticut, who is overseeing the bankruptcy case
of L. Tersigni Consulting CPA, P.C., has permitted Diana G.
Adams, U.S. Trustee for Region 2, to appoint an examiner to
investigate the billing practices and alleged misconduct of the
accounting firm.
Aside from its investigative function, the Examiner will
identify any claims the Tersigni firm may have against third
parties. The Examiner, according to Judge Shiff, will be paid
and reimbursed by the Tersigni estate, provided that its fees
and expenses will be capped at US$100,000.
Judge Judith Fitzgerald of the U.S. Bankruptcy Court for the
District of Delaware has previously authorized Kelly Stapleton,
U.S. Trustee for Region 3, to appoint an examiner to investigate
the same allegations against the Tersigni firm.
In June 2007, Ms. Stapleton asked Judge Fitzgerald to appoint an
examiner after several former employees of the Tersigni firm
accused its former owner, Loreto Tersigni, of overpadding bills
invoiced to the firm's clients. The Tersigni firm has
represented asbestos creditors in bankrupt asbestos companies
like W.R. Grace & Co., Federal-Mogul Corporation, and Owens
Corning. Judge Fitzgerald oversees most of the bankruptcy cases
of the Asbestos Debtors.
In December 2007, Judge Fitzgerald stayed all proceedings
related to the appointment request pending Judge Shiff's action
on the appointment request.
Other bankrupt asbestos companies like G-I Holdings and the
bankrupt asbestos subsidiaries of ASARCO LLC have asked the
Connecticut Court to appoint a Chapter 11 examiner to oversee
the Tersigni case.
The Tersigni firm, represented by Marc Stuart Goldberg, Esq., at
M. Stuart Goldberg, LLC, in New York, vehemently opposed the
appointment of a Chapter 11 examiner noting that there has been
no finding that the Tersigni firm engaged in misconduct or
fraud.
The Tersigni firm, however, did not oppose appointment of an
examiner to investigate the alleged bill overpadding.
Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA)
-- http://www.grace.com/-- supplies catalysts and silica
products, especially construction chemicals and building
materials, and container products globally, including Argentina,
Australia and Ireland.
The Company and its debtor-affiliates filed for chapter 11
protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139).
David M. Bernick, Esq., at Kirkland & Ellis, LLP, and Laura
Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP,
represent the Debtors in their restructuring efforts. The
Debtors hired Blackstone Group, L.P., for financial advice.
PricewaterhouseCoopers LLP is the Debtors' accountant.
Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent
the Official Committee of Unsecured Creditors. The Creditors
Committee tapped Capstone Corporate Recovery LLC for financial
advice. David T. Austern, the legal representative of future
asbestos personal injury claimants, is represented by Orrick
Herrington & Sutcliffe LLP and Phillips Goldman & Spence,
Pennsylvania. Elihu Inselbuch, Esq., at Caplin & Drysdale,
Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC,
represent the Official Committee of Asbestos Personal Injury
Claimants. The Asbestos Committee of Property Damage Claimants
tapped Martin W. Dies, III, Esq., at Dies & Hile L.L.P., and C.
Alan Runyan, Esq., at Speights & Runyan, to represent it.
Lexecon, LLC, provided asbestos claims consulting services to
the Official Committee of Equity Security Holders.
The Debtors' filed their Chapter 11 Plan and Disclosure
Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an
Amended Plan and Disclosure Statement. The hearing to consider
the adequacy of the Debtors' Disclosure Statement began on
Jan. 21, 2005. The Debtors' exclusive period to file a chapter
11 plan expired on July 23, 2007.
Estimation of W.R. Grace's asbestos personal injury liabilities
has commenced on Jan. 14, 2008. (W.R. Grace Bankruptcy News,
Issue No. 147; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
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B A H A M A S
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HARRAH'S ENTERTAINMENT: Moody's Assigns B2 Corp. Family Rating
--------------------------------------------------------------
Moody's Investor Service has assigned a B2 Corporate Family
Rating and Speculative Grade Liquidity Rating of SGL-3 to
Harrah's Entertainment, Inc. Moody's also assigned ratings to
the following new debt to be issued by Harrah's Operating
Company, Inc.: senior secured guaranteed bank revolving credit
facility at Ba2, senior secured guaranteed term loans at Ba2,
and senior unsecured guaranteed notes at B3. Harrah's Operating
Co. is a wholly owned direct subsidiary of Harrah's
Entertainment. Proceeds of these facilities will be used by the
company to finance its going private transaction. The rating
outlook is stable.
The existing unsecured senior and subordinated notes issued by
Harrah's Operating Co. remain on review for possible downgrade.
Moody's expects to downgrade these senior and subordinated
ratings to Caa1 from Baa3 and Ba1, respectively, when the LBO
closes later this month.
When the LBO closes, Harrah's Operating Co. will transfer the
real estate associated with six casino properties (Paris Las
Vegas, Harrah's Las Vegas, Rio, Flamingo Las Vegas, Harrah's
Atlantic City, Harrah's Laughlin) to indirect wholly owned
unrestricted special purpose subsidiaries of Harrah's
Entertainment. These properties will be operated by separate
indirect wholly owned unrestricted subsidiaries of Harrah's
Entertainment. A new CMBS loan will be issued by these special
purpose subsidiaries and will be secured by the real estate
underlying the six transferred properties, and the related
operating leases. The CMBS loans will be serviced by rent due
under the operating leases and will be guaranteed by Harrah's
Entertainment. Harrah's Operating Co. will continue to own and
operate the remaining 46 owned or managed properties.
Moody's ratings are based upon a consolidated assessment of
Harrah's Entertainment because, in Moody's view, it is unlikely
management would jeopardize the loss of the real estate pledged
to the CMBS lenders, Harrah's Entertainment will continue to
manage the consolidated company on a centralized basis, and
Harrah's Entertainment and Harrah's Operating Co. will be
managed by one board of directors, and one management team.
The B2 CFR reflects very high pro-forma leverage and low
interest coverage, as well as a reliance on earnings growth to
improve credit metrics because capital spending for several
expansion projects will exceed internally generated cash flow
for the next two years. Despite the very high financial
leverage, ratings are supported by Harrah's Entertainment's
large scale, geographic and segment diversification, its gaming
revenue focused strategy, and low regulatory risk profile that
has contributed to stable consolidated earnings growth
historically. The rating also considers adequate liquidity and
Harrah's Entertainment's successful development and operational
track record. Using Moody's Global Gaming Rating Methodology
and pro-forma credit metrics, Harrah's Entertainment's rating
maps to a low Ba rating as compared to the actual B2 Corporate
Family Rating assigned. The lower assigned rating reflects the
company's vulnerability to a significant deterioration in credit
metrics if earnings fail to grow as anticipated.
Harrah's Operating Co.'s new senior secured bank facilities and
senior unsecured notes will be guaranteed by Harrah's
Entertainment and material domestic subsidiaries of Harrah's
Operating. Pursuant to Moody's Loss Given Default methodology,
the Ba2 rating of senior secured guaranteed bank facilities is
rated above the Corporate Family Rating reflecting the support
it receives from the significant level of legally and
effectively subordinated debt in the capital structure,
including US$6.775 billion of senior unsecured notes guaranteed
by material domestic subsidiaries of Harrah's Operating Co. and
Harrah's Entertainment, and the operating company's existing
senior unsecured notes (US$3.9 billion) and senior subordinated
notes (US$725 million) that are only guaranteed by Harrah's
Entertainment. The B3 rating of the new senior unsecured notes
is notched down from the CFR reflecting the significant level of
senior ranking bank debt (up to US$9.25 billion) and junior
ranking existing debt (US$4.6 billion). The Caa1 rating that
likely will be assigned to the existing senior unsecured debt
reflects the weaker position it has due to its lack of upstream
guarantees from operating subsidiaries. The Caa1 that will
likely be assigned to the existing senior subordinated debt
reflects its junior position relative to US$20 billion of debt
with a superior position and priority of claim.
Harrah's Operating Co.'s Speculative Grade Liquidity rating of
SGL-3 reflects adequate liquidity, based on the company's
expected negative free cash flow position of nearly US$1.0
billion on a cumulative basis over the next four quarters,
offset by the existence of a US$2.0 billion revolving credit
facility that is expected to remain fully available to the
company. However, solid initial headroom under the senior
secured leverage covenant could shrink if earnings do not grow
as anticipated. Given that Harrah's Operating Co.'s assets will
be fully encumbered, the company cannot quickly sell assets to
raise alternate liquidity.
Ratings assigned:
Harrah's Entertainment, Inc.
-- Corporate Family Rating at B2
-- Probability of default rating at B2
-- Speculative Grade Liquidity at SGL-3
-- Rating Outlook: Stable
Harrah's Operating Co. Inc.
-- US$2.0 billion senior secured guaranteed revolving credit
facility at Ba2 (LGD 2, 19%)
-- US$7.25 billion senior secured guaranteed term loans at
Ba2 (LGD 2, 19%)
-- US$6.775 billion senior unsecured guaranteed notes at B3
(LGD 4, 63%)
-- Rating Outlook: Stable
Ratings remaining under review for possible downgrade:
Harrah's Operating Co. Inc.
-- Senior unsecured debt at Baa3
-- Senior unsecured bank credit facilities at Baa3
-- Senior subordinated notes at Ba1
Ratings for any debt repaid as part of Harrah's going-private
transaction will be withdrawn at closing.
Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc.
(NYSE: HET) -- http://www.harrahs.com/-- has grown through
development of new properties, expansions and acquisitions, and
now owns or manages casino resorts on four continents and hosts
over 100 million visitors per year. The company's properties
operate under the Harrah's, Caesars and Horseshoe brand names;
Harrah's also owns the London Clubs International family of
casinos and the World Series of Poker. Harrah's also owns the
London Clubs International family of casinos. In January, it
signed a joint venture agreement with Baha Mar Resorts Ltd. to
operate a resort in Bahamas.
METROPOLITAN BANK: To Appeal Tax Court's Ruling on PHP229MM Case
----------------------------------------------------------------
Metropolitan Bank & Trust Co. said that it will appeal the
decision by the Court of Tax Appeals affirming an earlier ruling
that the bank should pay about PHP229 million in deficiency
documentary stamp tax to the Bureau of Internal Revenues.
On Jan. 12, 2007, the Manila Standard published an article
stating that Metrobank's appeal to the earlier decision was
junked by the Court of Tax Appeals, thus affirming the decision
against the bank. The Court of Tax Appeals also directed the
bank to pay PHP3.786 billion in back taxes and interest from
documentary-stamp taxes, and deficiency gross-receipts tax.
In a letter to the Philippine Stock Exchange, the company said
that it will further appeal the decision and is considering
other legal remedies if necessary including an appeal to the
Supreme Court.
Metropolitan Bank and Trust Company --
http://www.metrobank.com.ph/-- is the flagship company of the
Metrobank Group. Metrobank provides a host of deposit, savings,
and loan products as well as electronic banking services like
Internet banking, mobile banking, and phone banking, as well as
its huge ATM network. Metrobank is also the leading provider of
trade finance in the Philippines, and its overseas branch
network has enabled it to service the fund remittances of
Filipino overseas contract workers.
The bank has 583 local branches and 35 international branches
and offices located in Taiwan, China, Japan, Korea, Guam, United
States, Hong Kong, Singapore, Bahamas, and in Europe.
* * *
In November 2006, Moody's Investors Service revised the outlook
of Metropolitan Bank & Trust Co.'s foreign currency long-term
deposit rating of B1 and foreign currency subordinated debt
rating of Ba3 from negative to stable. The outlooks for
Metropolitan Bank's foreign currency Not-Prime short-term
deposit rating and bank financial strength rating of "D" remain
stable.
On Sept. 21, 2006, Fitch Ratings upgraded Metrobank's Individual
rating to 'D' from 'D/E'. All the bank's other ratings were
affirmed: Long-term Issuer Default rating 'BB-' -- with a stable
Outlook; Short-term rating 'B'; and Support rating '3.
On March 3, 2006, Standard and Poor's Rating Service assigned a
CCC+ rating on Metrobank's US$125-million non-cumulative capital
securities, whereas Moody's Investors Service Rating Agency
issued a B- rating on the same capital instruments.
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B E L I Z E
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INNOVATIVE COMM: Court Okays Sale of V.I. Community Bank to FBNC
----------------------------------------------------------------
The Honorable Judith Fitzgerald of the U.S. Bankruptcy Court for
the Western District of Pennsylvania permitted Innovative
Communication Corp. to sell its Virgin Islands Community Bank to
First BanCorp, Judi Shimel of the Associated Press reports.
Sale terms were not disclosed.
The island's banking commissioner, Gregory R. Francis, also co-
approved the sale. Banking officials agreed to the sale in
order to pay the bank's debts and to meet a deadline set by the
Federal Deposit Insurance Corp., John McDonald, banking chief of
the U.S. Virgin Island, told the AP.
"We declared a state of emergency, meaning that we had to act
rapidly to protect consumers," AP quotes McDonald as saying.
Banking officials also sought for a committee to manage the
bank's stock while acquisition details are being hammered out,
AP relates, citing a government statement.
As reported in the Troubled Company Reporter on Sept. 14, 2007,
Judge Fitzgerald appointed Trustee Stan Springel to oversee the
reorganization of the ICC enterprise.
About First BanCorp
First BanCorp (NASDAQ: FBNC) -- http://www.firstbancorp.com/
-- provides a wide range of banking services through its main
office located in San Juan, Puerto Rico. The Group provides
commercial loans, consumer loans, mortgage loans and investment
securities. Commercial loan primarily includes commercial real
estate loans and construction loans. Consumer loan consists of
auto loans, personal loans and credit card loans. As of
December 2006, the Group had 48 full service branches.
About Innovative Communication
Based in Christiansted, St. Croix, U.S. Virgin Islands,
Innovative Communication Corporation is telecommunications and
media company with extensive holdings throughout the Caribbean
basin. The company's operations are in Belize, British Virgin
Islands, Guadeloupe, Martinique, Saint-Martin, Sint Maarten,
U.S. Virgin Islands and France and include local, long distance
and cellular telephone companies, Internet access providers,
cable television companies, business systems, and The Virgin
Islands Daily News, a Pulitzer Prize-winning newspaper.
On Feb. 10, 2006, creditors Greenlight Capital Qualified, L.P.,
Greenlight Capital, L.P., and Greenlight Capital Offshore, Ltd.,
filed involuntary chapter 11 petition against Innovative
Communication Company LLC and Emerging Communications, Inc., and
Jeffrey J. Prosser, the company's principal (Bankr. D. Del. Case
Nos. 06-10133 through 06-10135). The Greenlight creditors
disclosed US$18,780,614 in total claims.
On July 31, 2006, Innovative LLC, Emerging, and Mr. Prosser,
filed voluntary chapter 11 petitions (Bankr. D. V.I. Case Nos.
06-30007 through 06-30009). Pursuant to Rule 1003-1 of the
Local Bankruptcy Rules of the District Court of the Virgin
Islands, Bankruptcy Division, Mr. Prosser, and Bobby Lubana,
were designated as the individuals who are the principal
operating officers of the alleged debtor. On Dec. 14, 2006, the
Delaware Bankruptcy Court entered an order transferring the
venue of the involuntary bankruptcy cases transferring to the
U.S. District Court for the District of the Virgin Islands,
Bankruptcy Division.
On July 5, 2007, the Greenlight creditors filed an involuntary
chapter 11 petition against Innovative Communication Corporation
(Bankr. D. V.I. Case No. 07-30012). The creditors disclosed
total aggregate claims of US$56,341,843. Matthew J. Duensing,
Esq., and Richard H. Dollison, Esq., at Stryker, Duensing,
Casner & Dollison, and Matthew P. Ward, Esq., at Skadden Arps
Slate Meagher & Flom LLP, represent the creditors.
Stan Springel of Alvarez & Marsal, the Court-appointed chapter
11 trustee, is represented by Andrew Kamensky, Esq., Hunton &
Williams.
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B E R M U D A
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REFCO INC: Ex-Counsel Settles Fraud Claims for US$7.6 Million
-------------------------------------------------------------
On Dec. 7, 2007, Lead Plaintiffs in a suit related to the
collapse of Refco Inc. presented a US$7,600,000 settlement to
U.S. District Judge Gerard E. Lynch for preliminary approval and
certification of the settlement class.
On Dec. 6, 2007, RH Capital Associates LLC and Pacific
Investment Management Company LLC, the institutional investors
appointed by Judge Lynch to serve as Lead Plaintiffs on behalf
of investors victimized by the Refco affair, signed a settlement
agreement with Dennis A. Klejna.
Mr. Klejna was Refco's former General Counsel and Executive Vice
President. Pursuant to the agreement, Mr. Klejna has agreed to
pay to Lead Plaintiffs, on behalf of the Class, a total
settlement amount of US$7,600,000, including a personal
contribution of US$50,000.00 in cash.
In addition to the monetary payment, Mr. Klejna has pledged to
cooperate with Lead Plaintiffs as they pursue the Class' claims
against other current (and prospective) defendants in the
consolidated securities class action.
The settlement resolves two categories of claims asserted
against Klejna in the Refco class action, namely, claims arising
from Refco's bond and stock offerings in 2004 and 2005, and
claims arising out of the purchase of Refco securities in the
open market between Aug. 5, 2004 and Oct. 17, 2005 . As
part of the settlement, the Class' claims against Mr. Klejna
will be released.
This is the second settlement achieved for the Class in the
Refco Securities Litigation. Lead Plaintiffs will continue to
pursue the Class' claims against the remaining defendants, which
include:
-- several former Refco insiders (including former CEO
Phillip Bennett),
-- Refco's former board of directors,
-- Refco's former auditor (Grant Thornton LLP),
-- the investment banking concern that helped take Refco
"public" in August 2005 (Thomas H. Lee Partners L.P. and
related entities), and
-- a total of fifteen investment banks that sold Refco
stocks and bonds to public investors (including Goldman
Sachs, Credit Suisse and Bank of America).
The attorneys who worked to achieve this settlement are partners
Sean Coffey, Salvatore Graziano and John Browne and associate
Jeremy Robinson of Bernstein Litowitz Berger & Grossmann LLP,
and partners Stuart Grant, James Sabella, and Megan McIntyre of
Grant & Eisenhofer P.A. Their work prosecuting the Class' claims
against other defendants in the Refco debacle continues.
On December 3, 2007, Lead Plaintiffs RH Capital Associates LLC
and Pacific Investment Management Company LLC and Plaintiff
PIMCO Funds: Pacific Investment Management Series - PIMCO High
Yield Fund filed a Second Amended Consolidated Class Action
Complaint complaint which, among other things, collects and
consolidates all complaints filed and defendants named to date
* including Mayer Brown LLP and Mayer Brown partner Joseph
P. Collins,
updates Lead Plaintiffs' existing allegations and claims based
on recently obtained information and adds new allegations
against former Refco Group CFO Robert Trosten.
Case Background
A securities suit pending against Refco in the U.S. District
Court for the Southern District of New York, was consolidated
in April 2006 (Class Action Reporter, April 7, 2006). It
claimed the collapsed commodity brokerage hid more than US$5
billion off its books, far more than previously thought. It
also accuses company executives, company auditors, and
investment bankers of negligence.
This discovery of the bad debts caused the collapse of the
company a mere two months after its Aug. 10, 2005 initial public
offering of common stock, and only 14 months after its issuance
of 9% Senior Subordinated Notes due 2012. The company filed the
fourth largest bankruptcy in U.S. history as a result.
The suit is "In re Refco, Inc. Securities Litigation, Master
File No. 05 Civ. 8626 (GEL)," filed in the U.S. District Court
for the Southern District of New York under Judge Gerard E.
Lynch.
Representing the plaintiffs are:
Max W. Berger, Esq.
John P. Coffey, Esq.
John C. Browne, Esq.
Noam N. Mandel, Esq.
Bernstein Litowitz Berg & Grossmann, LLP
1285 Avenue of the Americas
New York, NY 10019
Phone: (212) 554-1400
Fax: (212) 554-1444
Stuart M. Grant, Esq.
James J. Sabella, Esq.
Megan D. McIntyre, Esq.
Jeff A. Almeida, Esq.
Christine M. Mackintosh, Esq.
Jill Agro, Esq.
Grant & Eisenhofer, P.A.,
Phone: (646) 722-8500 and (302) 622-7000
Fax: (646) 722-8501 and (302) 622-7100
For more details, contact Refco, Inc. Securities Litigation
c/o The Garden City Group, Inc., PO Box 9087, Dublin, OH 43017-
0987, Web site: http://www.refcosecuritieslitigation.com.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its direct and indirect subsidiaries,
including Refco Capital Markets Ltd. and Refco F/X Associates
LLC, on Dec. 15, 2006. That Plan became effective on
Dec. 26, 2006.
Refco Commodity's exclusive period to file a chapter 11 plan
expired on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 73
Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
=============
B O L I V I A
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COEUR D'ALENE: Promotes Key Officers in Bolivia, Mexico & Alaska
----------------------------------------------------------------
Coeur d'Alene Mines Corporation has promoted key personnel at
its San Bartolome (Bolivia), Palmarejo (Mexico), and Kensington
(Alaska) projects, to guide each project from construction into
production phase. Promotions were also announced in the
corporate Treasury and Human Resources divisions to prepare for
the company's growth.
"The promotions of Rick Irvine at San Bartolome; Stuart Mathews
at Palmarejo; and Tom Henderson at Kensington to key officer
positions at our three major growth projects is designed to
significantly strengthen our operations management team. In
addition to the new officers named in our corporate Treasury and
Human Resources divisions, these leaders at our sites help
further secure the Company's position in its next level of
strategic growth as the world's leading silver producer," said
Dennis E. Wheeler, Chairman, President and Chief Executive
Officer. "With the imminent production at San Bartolome and the
addition of Palmarejo in 2009, Coeur is poised to deliver
approximately 30 million ounces of silver annually. I am
confident these are the right people to help us deliver on this
new and exciting growth."
All of the three new Vice Presidents at the project sites were
previously General Managers at their respective properties and
have added the titles of Vice President.
Palmarejo, Mexico
Stuart Mathews is the new Vice President and General Manager of
the Palmarejo silver/gold project in northern Mexico. The
Palmarejo Project is expected to begin production in just over a
year at an annualized rate of approximately 10.4 million ounces
of silver and 115,000 ounces of gold per year with cash costs,
net of gold by-product credits, of an estimated (US$0.41) per
ounce of silver and an initial mine life of nine years.
San Bartolome, Bolivia
At San Bartolome, Rick Irvine is now Vice President and General
Manager for Company's new silver mine in Potosi, Bolivia. As
San Bartolome moves toward its expected 2008 startup, over 1,600
personnel on site at the project have surpassed 3.2 million man
hours without a lost time accident. Initial production levels
are estimated at approximately 9 million ounces of silver
annually.
Kensington, Alaska
At Kensington -- Coeur's major gold project near Juneau, Alaska
-- Tom Henderson was promoted to Vice President and General
Manager for Coeur Alaska. Construction at Kensington is over
90% complete. The process plant and ancillary construction
activities, including pre-operational testing, are fully
complete. A supplemental operations team remains focused on
improving the process plant control systems, as well as other
minor activities including sediment control, overall site
maintenance, and weather conditioning.
Additional Corporate Promotions
In addition, Carolyn S. Turner was promoted to Treasurer and
Larry A. Nelson was promoted to Vice President Human Resources
at the company's corporate offices. Ms. Turner joined Coeur in
March 1996 in the accounting department at Coeur Silver Valley.
She served as Assistant Treasurer for Coeur since December 2006.
Ms. Turner is a licensed CPA and earned her MBA from Regis
University and her Bachelor of Science Degree in Business
Administration with Accounting Emphasis from Eastern Montana
College.
Mr. Nelson joined Coeur in March 1996 as Human Resources Manager
at Coeur Silver Valley, and was most recently Director of Human
Resources for Coeur. He has over thirty years of experience in
human resources in the mining and nonferrous metals industries.
Mr. Nelson holds an MBA from Pacific Lutheran University and
Bachelor of Science Degree in Business Administration from
the University of Montana.
About Coeur d'Alene
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's B- rating.
===========
B R A Z I L
===========
BANCO ITAU: Selling Redecard Stake with Citigroup, Unibanco
-----------------------------------------------------------
Banco Itau Holding Financeira SA plans to take part in a 15%
joint stake sale in Brazilian credit card company Redecard SA.
According to published reports, Citigroup, Banco Itau, and Uniao
de Bancos Brasileiros SA have disclosed the plan in regulatory
filings.
Bloomberg News says Citigroup holds a 24% stake in Redecard,
whose total market value is US$10.4 billion (BRL18.2 billion).
Itau and Unibanco each holds 23.2% in the credit card company,
Reuters adds.
According to Reuters, Citigroup plans to sell 41.13 million
shares from its 161.2 million holdings in a bid to raise capital
to offset losses in the United States.
The two Brazilian banks did not disclose in their filings how
much shares are they letting go.
Itau BBA, the investment banking unit of Banco Itau, leads the
credit card company's share offering, Reuters states. The
series of offerings is expected to bring in about US$1.7
billion, Bloomberg says, citing a Valor Economico report.
Once the offering is completed, MarketWatch says about 40% of
Redecard's shares would be trading on the market, up from the
25.6% shares floating right now.
About Unibanco
Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros
SA -- http://www.unibanco.com/-- is a full-service financial
institution providing a range of financial products and services
to a diversified individual and corporate customer base
throughout Brazil. The company's businesses comprise segments:
Retail, Wholesale, Insurance and Pension Plans and Wealth
Management. Uniao de Bancos and its associated companies
FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas)
offer a network composed of 17,000 points of service. It also
counts on 7,580 automated teller machines and all 30 Hours'
products and services, including the telephone service and the
Internet banking. The company's international network consists
of branches in Nassau and the Cayman Islands; representatives
offices in New York; banking subsidiaries in Luxembourg, the
Cayman Islands and Paraguay; and a brokerage firm in New York --
Unibanco Securities Inc.
About Citigroup
New York-based Citigroup Inc. is a financial services holding
company whose businesses provide a range of financial services
to consumer and corporate customers. Its segments include Global
Consumer Group, Corporate and Investment Banking, Global Wealth
Management and Alternative Investments.
About Banco Itau
Banco Itau Holding Financeira SA -- http://www.itau.com.br/--
is a private bank in Brazil. The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA(Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan. Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2007, Fitch changed the outlook of these ratings of
Banco Itau Holding Financiera S.A.:
-- Foreign currency IDR at 'BB+'; Outlook to Positive from
Stable;
-- Local currency IDR at 'BBB-'; Outlook to Positive
from Stable; and
-- National Long-term rating at 'AA+(bra)'; Outlook to
Positive from Stable.
BRASKEM SA: Fitch Affirms Issuer Default Ratings at BB+
-------------------------------------------------------
Fitch Ratings has affirmed the ratings of Braskem S.A. and
Braskem International. The outlook remains positive.
Braskem SA:
-- Foreign currency Issuer Default Rating at 'BB+';
-- Local currency Issuer Default Rating at 'BB+';
-- Senior unsecured notes 2008, 2014 at 'BB+';
-- Senior unsecured Perpetual Bonds at 'BB+';
-- Senior unsecured notes 2017 at 'BB+';
-- National rating at 'AA (bra)';
-- Debentures 13th Issuance at 'AA (bra)'.
Braskem International:
-- Senior unsecured notes 2015 at 'BB+'.
The Positive Outlook reflects an expectation that Braskem will
be capable of increasing its cash flow generation and capturing
relevant synergies, following the strategic acquisition of
petrochemical assets of the Ipiranga Group in March 2007. Over
the medium to long term, the company's leverage should decrease,
reflecting an increase in EBITDA. However, the programmed
investments may slow the rate of this improvement. Fitch
believes that the rate at which Braskem is able to reduce
leverage will be fundamental to a potential upgrade to
investment grade.
The ratings reflect Braskem's continued leadership position in
the Brazilian and Latin American petrochemicals sector. The
company's ratings are also supported by its moderate leverage,
strong liquidity, adequate debt composition, financial
flexibility and solid, but highly volatile, operating cash flow.
Integration of its first- and second-generation activities
provides the company with a competitive advantage within the
Brazilian industry, and has allowed Braskem to achieve
substantial synergies, lower costs and higher-than-average
EBITDA margins compared to similar local and international
peers.
Despite challenges associated with increased naphtha costs, the
company should be able to pass on the adverse effects of a
higher cost structure. Fitch expects that the costs of raw
materials derived from oil and natural gas prices will continue
to be volatile in 2008 and that the passing on of naphtha costs
and maintenance of current spreads and operating margins will
continue to be one of the company's main challenges. Meanwhile,
important factors such as the probable continued growth of the
national economy, a reasonable balance between the supply and
demand for petrochemical products, high utilization rates of
production capacity and strong demand in the principal consumer
sectors that use plastics are expected to contribute to possible
increased naphtha prices being passed on.
Over the past 10 months, Braskem has consolidated its leadership
position in the Brazilian petrochemical industry, obtaining a
market share of over 50% in thermoplastic resins. It also
strengthened its corporate structure and businesses following
the recent announcement of an agreement with Petrobras (Fitch LT
IDR of 'BBB-' and National scale of 'AAA(bra)') to exchange
petrochemical assets for an increased shareholder participation,
which increased Petrobras' holdings from 8.1% to 25% in
Braskem's total capital. The consolidation of important
petrochemical assets bolstered the company's cash generation
without incurring increased leveraging, thus favoring an
improvement in its credit ratios. In the 12 months ended third-
quarter 2007, the company generated EBITDA of BRL3.1 billion
versus BRL1.6 billion in fiscal 2006. The EBITDA margin rose
from 14% to 18% due to improved conditions for passing on costs.
The proposed investment program in Venezuela to build new
petrochemical plants could limit the company's future capacity
to reduce debt. Total investments are projected of US$3.5
billion, to be divided equally between Braskem and Petroquimica
de Venezuela SA for the construction of a polypropylene plant
(450 thousand tons) and a cracker (1.3 million tons) in
Venezuela. The project will be 70% financed through project
finance and the remaining 30% from shareholder capital support
in equal proportions. The internationalization of its plants
could add new risks due to the company's investments in a
country with a higher sovereign risk than that of Brazil.
The company continues to have substantial liquidity, with BRL1.7
billion (US$835 million) in cash and marketable securities at
the third quarter 2007. At same period, the company's total
debt was BRL6.8 billion (US$2.9 billion). At the end of the
process of acquisition, which should end on March 2008,
Braskem's total debt is expected to be near BRL9 billion (US$5
billion), total debt/EBITDA ratio, 2.7 times, and the net
debt/EBITDA ratio, 2.3. In 2008, Fitch expects these ratios to
remain close to 2.6 and 2.0, respectively.
Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins producer
in Latin American, and is among the three largest Brazilian-
owned private industrial companies. The company operates 13
manufacturing plants located throughout Brazil, and has an
annual production capacity of 5.8 million tons of resins and
other petrochemical products. The company reported consolidated
net revenues of about US$9 billion in the trailing twelve months
through Sept. 30, 2007.
COMPANHIA PARANAENSE: Acquires Domino's 30% Stake in Sanepar
------------------------------------------------------------
Companhia Paranaense de Energia said in a statement that it has
acquired an additional 30% of Parana state water utility
Sanepar.
As reported in the Troubled Company Reporter-Latin America on
Jan. 7, 2008, Companhia Paranaense wanted to increase its
participation in Domino Holdings, which controls 37.9% of
Sanepar. Domino Holdings purchased a 37.9% in Parana's state
water utility Sanepar in 1998.
Business News Americas relates that Companhia Paranaense
purchased the 30% stake in Sanepar through Domino Holdings from
French firm Sanedo. Companhia Pranaense had a 15% stake in
Sanepar through Domino Holdings. It paid some BRL110 million
for the additional 30% stake in Domino Holdings.
BNamericas notes that before Companhia Paranaense acquired the
30% stake, Sanedo held 37.9% of Sanepar through Domino Holdings,
which has two other local shareholders, each with 27.5% control
-- construction firm Andrade Gutierrez and bank Opportunity
through the Daleth group.
According to BNamericas, the Parana state is the major
shareholder of both Companhia Paranaense and Sanepar. However,
an agreement signed in 1998 grants control of Sanepar to Domino
Holdings, although it is a minority shareholder. The agreement
is being questioned by the Parana state before a court.
The report says that investment in Sanepar will yield Companhia
Paranaense a 9.5% yearly rate of return, given that Sanepar
water rates stay stable.
Meanwhile, brokerage Ativa market analyst Monica Araujo said in
a report, "The deal was negative to Copel [Companhia
Paranaense], as it was used once again as a vehicle of public
policies by the Parana state government. The investment
apparently will not bring a very positive return to Copel."
Companhia Paranaense also moved to join in tollroad business at
the urging of the Parana state government, BNamericas reports.
Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense
de Energia SA -- http://www.copel.com/-- (NYSE: ELP/LATIBEX:
XCOP/BOVESPA: CPLE3, CPLE5, CPLE6) transmits and distributes
electricity to more than 3 million customers in the state of
Parana and has a generating capacity of nearly 4,600 megawatts,
primarily from hydroelectric plants. COPEL also offers
telecommunications, natural gas, engineering, and water and
sanitation services. The company restructured its utility
operations in 2001 into separate generation, transmission, and
distribution subsidiaries to prepare for full privatization,
which has been indefinitely postponed. In response, COPEL is
re-evaluating its corporate structure. The government of Parana
controls about 59% of COPEL.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 13, 2006, Moody's America Latina upgraded the corporate
family rating of Companhia Paranaense de Energia aka Copel to
Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its
Brazilian national scale. Moody's said the rating outlook is
stable. This rating action concludes the review process
initiated on July 26, 2006.
Moody's upgraded these ratings:
-- Corporate Family Rating: to Ba2 from Ba3 (Global Local
Currency) and to Aa2.br from A3.br (Brazilian National
Scale);
-- BRL500 million Senior Unsecured Guaranteed Debentures due
2007: to Ba2 from Ba3 (Global Local Currency) and to
Aa2.br from A3.br (Brazilian National Scale); and
-- BRL400 million Senior Secured Guaranteed Debentures due
2009: to Ba1 from Ba2 (Global Local Currency) and to
Aa1.br from A1.br (Brazilian National Scale).
DELPHI CORP: Commences Exit Financing Syndication
-------------------------------------------------
The syndication of Delphi Corp.'s exit financing package to
support the company's planned first quarter of 2007 emergence
from Chapter 11 reorganization was set to commence as early as
last week with potential lenders' meetings in New York on
Jan. 9, and in London on Jan. 10, the company stated in a press
release.
The proposed exit facilities, which are being arranged on a best
efforts basis by J.P. Morgan Securities, Inc., and Citigroup
Global Markets, Inc., were approved by the Court on
Nov. 16, 2007.
Delphi Corp. Controller and Chief Accounting Officer Thomas S.
Timko reported, in a regulatory filing with the U.S. Securities
and Exchange Commission, that Delphi will provide supplemental
financial information at the scheduled meetings containing an
unaudited borrowing base calculation for debtor entities as of
Sept. 30, 2007, and EBITDAR information covering the periods
from Oct. 1, 2006, through Sept. 30, 2007, each as measured by
the covenants contained in Delphi's refinanced DIP Facility and
selected debt levels.
An exhibit containing the borrowing base calculation, EBITDAR
information, selected debt levels and a reconciliation to the
nearest comparable U.S. GAAP measurements, where applicable,
that Delphi intends to provide to potential lenders is available
for free at the SEC's Web site at:
http://ResearchArchives.com/t/s?2707
The borrowing base calculation and selected debt levels
presented should not be considered in isolation or as a
substitute for items on Delphi's consolidated balance sheet
presented in accordance with generally accepted accounting
principles in the U.S., Mr. Timko cautioned. In addition, the
EBITDAR information should not be considered as an alternative
to operating income, as a substitute for items in Delphi's
consolidated statement of operations, or as an indicator of
Delphi's operating performance. All the information, he said,
should be viewed in conjunction with Delphi's financial
statements, footnotes including accounting policies contained in
the company's 2006 annual report and subsequent periodic reports
as filed with the SEC.
Exit Financing Reduced
Primarily as a result of improved operating performance and
lower capital expenditures for the 2007 fiscal year than
forecast in the company's 2007 business plan projections
included in its First Amended Disclosure Statement, Delphi
estimates its year-end unaudited cash position to be
approximately US$850 million favorable to its business plan.
After adjusting anticipated cash flows in 2008 to reflect
retiming of certain payments previously forecast for 2007 and
lower projections for certain forecast emergence cash payments
in 2008, Delphi is reducing its proposed exit facilities from
the previously announced US$6.8 billion authorized by the Court
to approximately US$6.1 billion.
The reduced facilities will include:
(a) US$1.6 billion in an asset-backed revolving credit
facility;
(b) US$3.7 billion in a first-lien term loan facility; and
(c) US$825 million in a second lien term loan facility.
Delphi says it intends to use the exit financing proceeds to
make payments on the Effective Date of its First Amended Joint
Plan of Reorganization, including repayment of the company's
senior secured DIP financing, and to support the post-
reorganization operations of the reorganized company.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on
Dec. 20, 2007. The Court will convene the hearing to consider
confirmation of the Plan on Jan. 17, 2008.
(Delphi Bankruptcy News, Issue No. 106; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
DELPHI CORP: Expands Supply Contract with VaST Systems
------------------------------------------------------
Delphi Corp. has expanded its contract with VaST Systems to
supply virtualization solutions.
Delphi Electronics & Safety Division uses VaST's solutions to
help develop electronic control unit (ECU) software. VaST helps
Delphi develop software without requiring hardware prototypes.
The use of VaST virtualization solutions can bring deeper
visibility and controllability to the software design process
helping to net higher quality products.
"Automotive electronic systems are experiencing exponential
growth in software complexity with the growing expectation of
improving product quality," said Frank Winters, Delphi
Electronics & Safety manager of design methodology. "VaST's
solutions help Delphi manage complexity."
"Delphi is a leader in automotive electronics and a key customer
in one of our most important market segments. Delphi's use of
VaST solutions is indicative of an industry trend toward
virtualized electronic system development. We are extremely
pleased to provide Delphi with solutions that help them extend
their leadership by delivering superior, differentiated
products," said Jeff Roane, vice president of marketing at VaST.
About VaST
VaST Systems drives electronics virtualization. With VaST
virtualization electronics companies develop software before
hardware, enable early software development by ecosystem
partners.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Debtors' exclusive plan-filing period will expire on
Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their
Chapter 11 Plan of Reorganization and a Disclosure Statement
explaining that Plan. On Dec. 10, 2007, the Court entered an
order approving the Debtors' Disclosure Statement. The hearing
to consider confirmation of the Plan is set for Jan. 17, 2008.
DELPHI CORP: US Trustee Balks at Panel's Exit Loan Participation
----------------------------------------------------------------
Diana G. Adams, the U.S. Trustee for Region 2, asserts that
members of the Official Committee of Unsecured Creditors and the
Official Committee of Equity Security Holders who wish to
participate in Delphi Corp. and its debtor-affiliates' Exit
Financing should be required to resign from their respective
committees.
Representing the U.S. Trustee, Alicia M. Leonhard, Esq., in New
York, argues that a committee member's participation in the Exit
Financing while serving on a statutory committee is inconsistent
with that member's fiduciary duties to its constituents. "This
dual role creates a conflict of loyalties . . . and gives rise
to the appearance that the committee member is personally
benefiting from its status as a committee member," Ms. Leonhard
tells Judge Drain.
The Debtors' allegation that "virtually" all formerly
confidential information is public does not the mitigate the
effect of the impermissible dual loyalties or the appearance of
impropriety, Ms. Leonhard asserts. She notes that in any
negotiation, the Exit Lenders and the Statutory Committees will
sit on opposite sides of the bargaining table as adverse
parties. The Exit Lenders will try to exact as many concessions
as possible from the Debtors in light of the tight credit
market, but the Statutory Committees should concentrate on
obtaining the most favorable terms for the Debtors. Because the
interests of the Exit Lenders and the Statutory Committees are
in direct conflict, a committee member cannot engage in
aggressive negotiations with the Debtors with respect to the
contemplated Exit Financing and, at the same time, maintain
undivided loyalty and the appearance of fairness to its
constituents, Ms. Leonhard maintains.
The U.S. Trustee contends that the Debtors may not preclude her
from exercising her statutory duties. Section 1102(a) of the
Bankruptcy Code vests the U.S. Trustee with the power to appoint
and remove members of statutory committees.
If the Debtors become aggrieved if the U.S. Trustee removes a
committee member for any reason, then they should seek a
judicial review of the U.S. Trustee's action after the action
has occurred, instead of seeking to constrain a future decision
by the U.S. Trustee without any facts, Ms. Leonhard says.
The U.S. Trustee thus asks the Court to sustain her objection;
and deny the Debtors' request.
The U.S. Trustee clarifies that she has no objection to the
participation of any committee member in the Exit Financing so
long as that committee member resigns from the committee.
"Resignation is the only way to maintain the transparency,
appearance of fairness and integrity of these cases and the
bankruptcy system," Ms. Leonhard avers.
Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on
Dec. 20, 2007. The Court will convene the hearing to consider
confirmation of the Plan on Jan. 17, 2008.
(Delphi Bankruptcy News, Issue No. 106; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
EMI GROUP: Terra Firma Outlines Restructuring Plan
--------------------------------------------------
Terra Firma Plc, EMI Group Plc's new owner, confirmed plans to
restructure the music company, particularly its Recorded Music
Division.
Guy Hands, EMI Group's chairman, unveiled a fundamental
reshaping of the business to reflect the rapidly-changing nature
of the music industry.
The changes include:
* positioning EMI's labels to ensure they will be
completely focused on A&R and maximizing the potential of
all their artists;
* developing a new partnership with artists, based on
transparency and trust, and helping all artists magnetize
the value of their work by opening new income streams such
as enhanced digital services and corporate sponsorship
arrangements;
* bringing together all the group's key support activities
including sales, marketing manufacturing and distribution
into a single division with a unified global leadership;
and
* the elimination of significant duplications within the
group to simplify processes and reduce waste.
The changes, which will be implemented over the next six months,
will enable the group to invest more in its A&R operations both
to identify and sign promising new artists and to maximize the
potential of its existing roster.
The restructuring is being carried out following an intense
three-month consultation review of the business by Terra Firma
since it acquired the business last year and many of the
measures being implemented have come at the suggestion of staff,
artists or their managers.
The restructuring will also enable the group to capture
significant efficiencies and cost reductions, which are expected
to reduce costs by up to œ200 million per year. The
restructuring is also expected to lead to a worldwide headcount
reduction within the group of between 1,500 and 2,000.
"We have spent a long time looking intensely at EMI and the
problems faced by its Recorded Music division which, like the
rest of the music industry, has been struggling to respond to
the challenges posed by a digital environment," Mr. Hands
commented.
"We believe we have devised a new revolutionary structure for
the group that will improve every area of the business," Mr.
Hands continued. "In short it will make EMI's music more
valuable for the company and its artists alike. The changes we
are announcing today will ensure that this iconic company will
be creating wonderful music in a way that is profitable and
sustainable."
About Terra Firma
Terra Firma is a leading European private equity firm, created
in 2002 as the independent successor to the Principal Finance
Group, a division of Nomura that was created in 1994. Terra
Firma focuses on buyouts of large, asset-rich and complex
businesses in need of operational and/or strategic change.
About EMI
Headquartered in London, United Kingdom, EMI Group PLC --
http://www.emigroup.com/-- is the world's largest independent
music company, operating directly in 50 countries and with
licensees in a further 20. The group has operations in Brazil,
China, and Hungary. The group employs over 6,600 people.
Revenues in 2005 were near EUR2 billion and operating profit
generated was over EUR225 million.
EMI Group's consolidated balance sheet for the fiscal year ended
March 31, 2007, showed GBP1.498 billion in total assets,
GBP2.649 billion in total liabilities and GBP1.151 billion in
shareholders' deficit. The company issued two profit warnings
since January 2007.
FIDELITY NATIONAL: Robert W. Baird Keeps Outperform Rating
----------------------------------------------------------
Robert W. Baird analysts have kept their "outperform" rating on
Fidelity National Information Services Inc.'s shares,
Newratings.com reports.
Newratings.com relates that the target price for Fidelity
National's shares was decreased to US$49 from US$62.
The Robert W. Baird analysts said in a research note that
Fidelity National pre-announced its fourth quarter and 2007
earnings per share in-line with expectations.
The analysts told Newratings.com that the pre-announcement shows
that Fidelity National had a good fourth quarter performance
despite several challenges like:
-- imminent spin-off of the Lender Services division,
-- mortgage exposure, and
-- big bank exposure.
The change in the target price indicates lower "industry
multiples," Newratings.com states, citing Robert W. Baird.
Based in Jacksonville, Florida, Fidelity National Information
Services, Inc. (NYSE: FIS) --
http://www.fidelityinfoservices.com/-- provides core processing
for financial institutions; card issuer and transaction
processing services; mortgage loan processing and mortgage
related information products; and outsourcing services to
financial institutions, retailers, mortgage lenders and real
estate professionals. FIS has processing and technology
relationships with 35 of the top 50 global banks, including nine
of the top ten. Nearly 50% of all US residential mortgages are
processed using FIS software. FIS maintains a strong global
presence, serving over 7,800 financial institutions in more than
60 countries worldwide, including Brazil and Japan.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 29, 2007, Standard & Poor's Ratings Services has placed its
ratings, including the 'BB' corporate credit rating, on Fidelity
National Information Services Inc. on CreditWatch with negative
implications.
Moody's Investors Service has placed Fidelity National
Information Services' ratings on review for possible downgrade:
-- US$1.6 billion First Lien Senior Secured Term Loan B Ba1
-- US$2.1 billion First Lien Senior Secured Term Loan A Ba1
-- US$900 million First Lien Senior Revolving Credit
Facility Ba1
-- US$200 million 4.75% (Certegy) notes due September 2008
Ba1
-- Corporate Family Rating Ba1.
JAPAN AIRLINES: FY2008 Expected To Bring In Profit After 3 Years
----------------------------------------------------------------
Japan Airlines Corp. forecasts its first profit in three years
for the 12 months ending March 31, 2008, Bloomberg News reports.
The report relates that Japan Airlines has accelerated job cuts
and is shedding unprofitable routes.
According to Bloomberg data, Japan Airlines incurred net losses
of JPY16.27 billion in FY2007 and JPY47.24 billion in FY2006.
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil
and France.
* * *
As reported on Feb. 9, 2007, that Standard & Poor's Ratings
Services affirmed its 'B+' long-term corporate credit and issue
ratings on Japan Airlines Corp. (B+/Negative/--) following the
company's announcement of its new medium-term management plan.
S&P said the outlook on the long-term corporate credit rating is
negative.
As reported on Oct. 10, 2006, that Moody's Investors Service
affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd and Japan Airlines
Domestic Co., Ltd. The rating affirmation is in response to
the planned restructuring of the Japan Airlines Corporation
group on Oct. 1, 2006 with the completion of the merger of
JAL's two operating subsidiaries, JAL International and Japan
Airlines Domestic. JAL International will be the surviving
company. Moody's said the rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
JAPAN AIRLINES: May Cancel Card Unit Stake Sale, Insiders Say
-------------------------------------------------------------
Japan Airlines Corp. may cancel its plan to sell a stake in its
credit card unit as it raises cash by selling securities
instead, Bloomberg News reports, citing two people familiar with
the transaction but who refused to be identified.
Japan Airlines is considering selling at least JPY100 billion
(US$925 million) of securities including preferred shares to
banks, as well as petroleum and trading companies, the sources
told Bloomberg.
Bloomberg's Takahiko Hyuga and Shingo Kawamoto write that Japan
Airlines has JPY48 billion of debt coming due this year and
President Haruka Nishimatsu said the airlines needs to increase
its capital. The carrier has also ordered 35 Boeing Co. 787
planes, with a value of at least US$5.1 billion at list prices,
the report notes.
Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group
Inc.'s Credit Saison Co. are among the bidders for JALCard.
Bloomberg explains that JALCard is attractive to banks because
cardholders spend an average JPY860,000 a year. The airline
plans to keep a majority stake in JALCard, the sources told
Bloomberg.
The report recounts that Japan Airlines asked local and overseas
companies in October to submit acquisition proposals by Oct. 31,
and held the second bidding round on Jan. 11.
Japan Airlines, Bloomberg cites the sources as saying, will
delay the sale if the proposals do not match its marketing
strategy for the unit. The carrier will probably hold a third
round of bids if it decides to proceed with the sale, the
sources added.
Meanwhile, Japan Airlines is in talks with Mitsubishi UFJ,
Mizuho, Sumitomo Mitsui and Development Bank of Japan, to sell
new securities, the sources further revealed to Bloomberg. The
carrier expects to reach a decision by March 31, they said.
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil
and France.
* * *
As reported on Feb. 9, 2007, that Standard & Poor's Ratings
Services affirmed its 'B+' long-term corporate credit and issue
ratings on Japan Airlines Corp. (B+/Negative/--) following the
company's announcement of its new medium-term management plan.
S&P said the outlook on the long-term corporate credit rating is
negative.
As reported on Oct. 10, 2006, that Moody's Investors Service
affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd and Japan Airlines
Domestic Co., Ltd. The rating affirmation is in response to
the planned restructuring of the Japan Airlines Corporation
group on Oct. 1, 2006 with the completion of the merger of
JAL's two operating subsidiaries, JAL International and Japan
Airlines Domestic. JAL International will be the surviving
company. Moody's said the rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
KRATON POLYMERS: Board Taps Kevin Fogarty as President & CEO
------------------------------------------------------------
Kraton Polymers LLC's Board of Directors has appointed Kevin M.
Fogarty as President and Chief Executive Officer, effective
Jan. 14, 2008. He succeeds George B. Gregory who has decided to
leave Kraton after three and a half years of transforming the
company. Mr. Gregory will serve as an advisor to the company
through June 30, 2008. Additionally, David A. Bradley has been
appointed Chief Operating Officer, also effective Jan. 14, 2008.
Mr. Fogarty has served as Kraton's Executive Vice President
since June 2005, when he joined Kraton from INVISTA S.ar.l.,
where he served as President for Polymer and Resins since
May 2004. Prior to that, Mr. Fogarty held a variety of roles
with increasing responsibility in Koch Industries' companies,
including KoSa, B.V.
Mr. Bradley has been Vice-President of Operations since
September 2004. He joined Kraton in April 2004 as Vice
President of Transformation, bringing Lean Six Sigma to Kraton's
operations. Prior to Kraton, Mr. Bradley worked for General
Electric as a Lean Manufacturing Manager.
Kelvin Davis, a Partner of TPG Capital and Kraton's Chairman of
the Board, said, "Kevin has been a significant contributor to
Kraton since joining us in 2005. He has excellent experience in
the global polymer industry, and has proven leadership
credentials that will be essential in advancing Kraton's
strategic business objectives. We are very excited to have him
step up into this opportunity. We also wish to thank George for
his achievements over the past three and a half years, during
which time he drove significant advancements in innovation,
operational excellence, and expansion of the Kraton brand."
Timothy Walsh, Managing Director at CCMP Capital Advisors, LLC,
and a member of the Board of Directors of Kraton said, "We also
want to thank George for his tremendous accomplishments in which
he created a stand-alone business to grow from. We now look
forward to working with Kevin and David to advance Kraton
further, leveraging Kraton's leadership position, and
implementing strategic restructuring to propel Kraton to the
next level of performance."
"I am extremely excited and proud to lead our team into the
future," said Mr. Fogarty, "Kraton is a first class company,
with a leading global market position, and an employee talent
base second to none. Our end-use market focus, coupled with an
innovation-driven growth mentality, will only assure we will
continue to expand Kraton's ability to provide unique products
and services that our customers both expect and truly value."
Based in Houston, Texas, Kraton Polymers LLC --
http://www.kraton.com/-- produces styrenic block copolymers.
SBCs are highly-engineered thermoplastic elastomers, which
enhance the performance of numerous products by delivering a
variety of attributes, including greater flexibility,
resilience, strength, durability and processability. Kraton
polymers are used in a wide range of applications including
adhesives, coatings, consumer and personal care products,
sealants, lubricants, medical, packaging, automotive, paving,
roofing, and footwear products. Kraton has the leading position
in nearly all of its core markets and is the only producer of
SBCs with global manufacturing capability. Its production
facilities are located in the United States, Germany, France,
The Netherlands, Brazil, and Japan.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 21, 2007, Moody's Investors Service has affirmed Kraton
Polymers LLC's B1 corporate family rating but revised the
company's outlook to negative as Moody's expects continued
margin weakness, due to delays in passing on the full extent of
raw material cost increases to Kraton customers, which will
diminish free cash flow from operations over the next 12 to 18
months.
NET SERVICOS: Names Jose Antonio Guaraldi Felix as CEO
------------------------------------------------------
Net Servicos de Comunicacao said in a statement that it has
appointed Jose Antonio Guaraldi Felix as its chief executive
officer.
According to Business News Americas, Mr. Felix had been Net
Servicos' former chief operations officer since May 2003. He
started working in Net Servicos in 1990 as technology director.
He became general director. He will replace Francisco Valim.
BNamericas notes that Mr. Valim had served as Net Servicos'
chief executive officer since February 2003. He was responsible
for restructuring Net Servicos and renegotiating its debt, which
totaled BRL1.4 billion. Net Servicos said in a statement that
Mr. Valim decided to resign from the post as he considered his
mission had been accomplished.
Mr. Valim told BNamericas that he won't be moving to any other
firm in the telecoms sector.
Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao
-- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1--
is a subscriber TV multi-operator in Brazil, as it operates the
NET brand in major cities, including operations in the 4 largest
cities: Sao Paulo, Rio de Janeiro, Belo Horizonte and Porto
Alegre. NET also offers Broadband Internet services through its
NET VIRTUA brand name.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 3, 2008, Moody's has not changed Net Servicos de
Comunicacao S.A.'s Ba2 global local currency corporate family
rating and Aa3.br Brazilian national scale rating following the
company's announced agreement to acquire 100% of the capital of
BIGTV Companies. The transaction is subject to regulator and
anti-trust commission approvals.
NET SERVICOS: S&P Assigns BB Rating on US$200-Mln Sr. Debt Issue
----------------------------------------------------------------
Standard & Poor's Rating Services has assigned its 'BB' senior
unsecured debt rating to NET Servicos de Comunicacao S.A.'s new
US$200 million, 10-year senior unsecured debt issue.
The new issuance will mostly fund the acquisition of pay-TV
assets operating under the brand name BIGTV. NET Servicos
entered into an agreement to acquire BIGTV in December 2007,
pending regulatory approval from Agencia Nacional de
Telecomunicacoes. BIGTV operates in 12 cities in the states of
Sao Paulo, Parana, Alagoas, and Paraiba, areas that are either
adjacent or new to the company's own coverage area and that
further enhance its geographic presence. The acquisition of
BIGTV will be paid in cash free of debt, and the final price
will depend on the time frame for the company to get regulatory
approval. With the acquisition of BIGTV, NET Servicos will add
annual revenues of approximately US$60 million, 107,000 pay-TV,
and 56,000 broadband subscribers to its base, reaching a market
share of 48% and 18%, respectively. After NET Servicos
incorporates BIGTV and adds Globosat's channels into the
company's programming, S&P expects BIGTV to report EBITDA
margins similar to those of the company.
The ratings on NET Servicos reflect the challenging and
competitive business environment, particularly with large
telecom operators entering the pay-TV industry, which enhances
their product offering; somewhat limited growth potential of
pay-TV services in Brazil because of the ample reach of open-air
television and income constraints; and heavier capital
expenditure requirements on digitalization and bidirectional
networks. These negatives are partly offset by the company's
leading position in the Brazilian pay-TV industry, supported by
an extensive cable network in major cities; a high-quality
lineup; and the company's competitive triple-play offer.
Telefonos de Mexico S.A.B. de C.V.'s (BBB+/Stable/--) presence
brings operational expertise in telecommunications services and
offers some degree of financial flexibility. NET Servicos also
has prudent financial policies and moderate debt levels.
Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao
-- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1--
is a subscriber TV multi-operator in Brazil, as it operates the
NET brand in major cities, including operations in the 4 largest
cities: Sao Paulo, Rio de Janeiro, Belo Horizonte and Porto
Alegre. NET also offers Broadband Internet services through its
NET VIRTUA brand name.
SYNIVERSE TECH: Reports 2007 Full Year Preliminary Results
----------------------------------------------------------
Syniverse Technologies Inc. reported its preliminary results for
the year ended Dec. 31, 2007. Based on current unaudited
information, Syniverse currently expects to report:
* Net revenues of between US$369 - US$371 million, compared
to net revenues of US$328.9 million for 2006.
* Adjusted EBITDA of between US$154 - US$156 million,
compared to Adjusted EBITDA of US$127.7 million in 2006.
* Cash Net Income, a non-GAAP measure of profitability, of
between US$74 - US$75.3 million, compared to cash net
income of US$57.3 million in 2006.
Syniverse expected its results to show continued strong growth
in technology interoperability, driven by continued growth in
data-related products as well as roaming and clearing services.
Gross margins and Adjusted EBITDA margins are both expected to
increase, reflecting growing revenues together with continued
cost management. Syniverse's recent acquisition of BSG
Wireless was not included in its operating results during 2007,
but will be included in its balance sheet.
"2007 was a strong year for Syniverse," said Tony Holcombe,
President and CEO of Syniverse. "This is a result of continued
strong data results and Syniverse's ongoing global expansion.
Our recent acquisition of BSG Wireless enhances our global
presence while providing significant efficiency savings and an
important financial clearinghouse service."
Outlook
The company is providing the following outlook for 2008:
Net Revenues US$425 - US$440 million
Adjusted EBITDA US$190 - US$200 million
Cash Net Income US$85 - US$90 million
Additionally, the company expects to generate operating free
cash flow in excess of US$100 million in 2008.
Syniverse has not yet finalized its financial statement close
process for the year ended Dec. 31, 2007. As it completes this
process, Syniverse may identify items that would require the
company to make adjustments to its preliminary operating
results. Additionally, the financial information in this press
release is not a comprehensive statement of our financial
results for the year ended Dec. 31, 2007 and should therefore be
considered together with our full results of operations when
published.
About Syniverse
Syniverse Technologies Inc. in Tampa, Florida (NYSE: SVR)
-- http://www.syniverse.com/-- provides technology services for
wireless telecommunications companies. Its integrated suite of
services include technology interoperability services, which
enable the invoicing and settlement of domestic and
international wireless roaming telephone calls and wireless data
events; SMS and MMS routing and translation services between
carriers; and interactive video and mobile broadband solutions,
prepaid applications, and roaming services. Celebrating its
20th anniversary in 2007, Syniverse has offices in major cities
around the globe. Syniverse is ISO 9001:2000 certified and TL
9000 approved, adhering to the principles of customer focus and
quality improvement practices. The company has offices in the
Netherlands, Brazil and China.
* * *
As reported in the Troubled Company Reporter on June 29, 2007,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating, along with its stable outlook, and its 'B' senior
subordinated debt rating on Tampa, Florida-based Syniverse
Technologies Inc. At the same time, Standard & Poor's assigned
its 'BB' bank loan rating and '2' recovery rating to Syniverse's
proposed US$489 million senior secured bank facility. The bank
loan rating, which is one notch above the corporate credit
rating, along with the '2' recovery rating, reflect our
expectation for substantial (70%-90%) recovery of principal by
creditors in the event of a payment default.
UAP HOLDING: S&P Says Deal Delays Won't Affect Agrium's Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that the recent
announcement by Agrium Inc. (BBB/Stable/--) of potential delays
in closing its UAP Holding Corp. (BB-/Watch Pos/--) acquisition
will not affect the ratings on Agrium.
If the U.S. Federal Trade Commission's review of the transaction
progressed to the issuance of a second request it could
potentially delay the closing until summer 2008. This means
that until then, Agrium will have $1.3 billion in cash on hand,
which was raised for the acquisition by issuing shares this past
month.
The FTC approval delay will also mean Agrium won't immediately
realize synergies from the UAP Holding acquisition but this will
not affect Agrium's credit quality.
Headquartered in Greeley, Colorado, UAP Holdings Corp.
(NASDAQ:UAPH) -- http://www.uap.com/-- is the holding company
of United Agri Products Inc., an independent distributor of
agricultural and non-crop products in the United States and
Canada. United Agri Products Inc. markets products, including
chemicals, fertilizer, and seed to farmers, commercial growers,
and regional dealers. United Agri Products also provides an
array of value-added services, including crop management,
biotechnology advisory services, custom fertilizer blending,
seed treatment, inventory management, and custom applications of
crop inputs. United Agri Products maintains a network of
approximately 370 distribution and storage facilities and three
formulation plants, located in crop-producing areas throughout
the United States and Canada. The airline flies to Brazil,
Korea and Germany.
UNIAO DE BANCOS: Selling Redecard Stake with Citigroup, Itau
------------------------------------------------------------
Uniao de Bancos Brasileiros plans to take part in a 15% joint
stake sale in Brazilian credit card company Redecard SA.
According to published reports, Citigroup, Banco Itau Holding
Financeira SA, and Uniao de Bancos have disclosed the plan in
regulatory filings.
Bloomberg News says Citigroup holds a 24% stake in Redecard,
whose total market value is US$10.4 billion (BRL18.2 billion).
Itau and Unibanco each hold 23.2% in the credit card company,
Reuters adds.
According to Reuters, Citigroup plans to sell 41.13 million
shares from its 161.2 million holdings in a bid to raise capital
to offset losses in the United States.
The two Brazilian banks did not disclose in their filings how
much shares are they letting go.
Itau BBA, the investment banking unit of Banco Itau, leads the
credit card company's share offering, Reuters states. The
series of offerings is expected to bring in about US$1.7
billion, Bloomberg says, citing a Valor Economico report.
Once the offering is completed, MarketWatch says about 40% of
Redecard's shares would be trading on the market, up from the
25.6% shares floating right now.
About Citigroup
New York-based Citigroup Inc. is a financial services holding
company whose businesses provide a range of financial services
to consumer and corporate customers. Its segments include Global
Consumer Group, Corporate and Investment Banking, Global Wealth
Management and Alternative Investments.
About Banco Itau
Banco Itau Holding Financeira SA -- http://www.itau.com.br/--
is a private bank in Brazil. The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA(Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan. Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations.
About Unibanco
Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros
SA -- http://www.unibanco.com/-- is a full-service financial
institution providing a range of financial products and services
to a diversified individual and corporate customer base
throughout Brazil. The company's businesses comprise segments:
Retail, Wholesale, Insurance and Pension Plans and Wealth
Management. Uniao de Bancos and its associated companies
FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas)
offer a network composed of 17,000 points of service. It also
counts on 7,580 automated teller machines and all 30 Hours'
products and services, including the telephone service and the
Internet banking. The company's international network consists
of branches in Nassau and the Cayman Islands; representatives
offices in New York; banking subsidiaries in Luxembourg, the
Cayman Islands and Paraguay; and a brokerage firm in New York --
Unibanco Securities Inc.
* * *
As reported in the Troubled Company Reporter Latin America on
Feb. 12, 2007, Fitch changed the outlook of these ratings of
Unibanco-Uniao de Bancos Brasileiros SA:
-- Foreign currency IDR at 'BB+'; Outlook to Positive from
Stable;
-- Local currency IDR at 'BB+'; Outlook to Positive from
Stable; and
-- National Long-term rating at 'AA(bra)'; Outlook to
Positive from Stable
Fitch Ratings revised the Outlook on the foreign and local
currency Issuer Default ratings and National ratings of a select
group of Brazilian banks, insurance and leasing companies to
Positive from Stable. This rating action follows the revision
of Brazil's foreign and local currency IDR Outlooks. All the
ratings on these banks, insurers and leasing companies are
affirmed.
UNITED AIRLINES: Pilots Group Won't 'Rubber Stamp' Any Merger
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The United Chapter of the Air Line Pilots Association's Master
Executive Council continues to monitor media chatter concerning
airline consolidation and mergers. The United Master Executive
Council has long had in place a Merger Committee to work on
issues in the event consolidation affects the Union's pilots.
The committee's role, in part, is to monitor and investigate any
merger reports that involve United Airlines. Reports regarding
Delta Airlines are no exception. With United's Chief Executive
Officer constantly touting consolidation, the group had the
foresight to prepare for any possibility.
"CEO Glenn Tilton and other executives must understand that any
merger or consolidation involving United Airlines will not be
consummated without the involvement of its pilots," said MEC
Chairman Captain Steve Wallach. "United pilots will not rubber
stamp any merger unless and until our interests are addressed.
We are prepared to protect the careers and futures of our pilots
in the event of any merger or consolidation scenario."
About United Airlines
United Airlines (Nasdaq: UAUA) -- http://www.united.com/-- is a
subsidiary of UAL Corp. It operates more than 3,600 flights a
day on United, United Express and TedSM to more than 200 U.S.
domestic and international destinations from its hubs in Los
Angeles, San Francisco, Denver, Chicago and Washington, D.C.
With key global air rights in the Asia-Pacific region, Europe
and Latin America (Brazil), United is one of the largest
international carriers based in the United States. The airline
is also a founding member of Star Alliance, which provides
connections for our customers to 855 destinations in 155
countries worldwide. The airline's 55,000 employees reside in
every U.S. state and in many countries around the world.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 12, 2007, Following the announcement by United Airlines
that it intends to pay out a special cash distribution of
approximately US$250 million to shareholders while reducing its
outstanding term loan balance by US$500 million, Fitch's ratings
on United and its UAL Corp. parent are unaffected. Fitch's
Issuer Default Rating on both UAL Corp. and United Airlines is
'B-', and the secured credit facility is rated 'BB-' with a
recovery rating of 'RR1'. The Rating Outlook for UAL Corp. and
United Airlines is Positive.
VALMONT INDUSTRIES: S&P Ups Corp. Credit Rating to BB+ from BB
--------------------------------------------------------------
Standard & Poor's Ratings Services has raised its ratings on
metal products fabricator Valmont Industries Inc. and removed
them from CreditWatch, where they were placed with positive
implications on Nov. 20, 2007. The corporate credit rating was
raised to 'BB+' from 'BB'. The outlook is stable.
"The upgrade reflects the company's continued strong operating
performance as a result of steady growth in revenues and
improvement in operating margins," said S&P's credit analyst
Thomas Nadramia. "This has resulted in a meaningful improvement
to credit measures that we would consider to be more appropriate
for the higher rating. In addition, current spending levels in
the highway and infrastructure sectors, as well as strong farm
income underlying the company's irrigation business, should
continue to support Valmont's good operating momentum."
S&P believes that bank lenders will fare the same as other
senior unsecured creditors in the event of a default.
"We aren't likely to revise the outlook to positive, given the
company's relatively narrow product focus in cyclical niche
markets, somewhat limited geographic diversity, and modest but
increasing size," Mr. Nadramia said. "We could revise the
outlook to negative if there is a sustained reduction in demand
or aggressive growth spending over the intermediate term."
Headquartered in Valley, Nebraska, Valmont Industries Inc. --
http://www.valmont.com/-- is engaged in the manufacture of
fabricated metal products, metal and concrete pole and tower
structures. The company also operates in Brazil.
* BRAZIL: Pelotas Gets US$18.9-Million Financing from World Bank
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The World Bank Board of Executive Directors has approved a
US$18.9 million loan for a project to strengthen the capacity of
the municipality of Pelotas, in Brazil's Southern region, to
provide selected infrastructure and employment opportunities for
their population. This loan is the first of a US$66 million
program which also supports the municipalities of Bage, Pelotas,
Rio Grande, Santa Maria and Uruguaiana in the State of Rio
Grande do Sul.
The program is comprised of individual loans to each of the five
participating municipalities -- the main economic centers of the
southern portion of the State -- with a common focus on
strengthening municipal capacity to promote income generation
and employment (thereby improving their competitiveness) and
improving the quality of selected infrastructure services in a
fiscally and environmentally sustainable manner.
"All five municipalities contain important hub-cities and are
economic drivers of the southern half of the state. The
programmatic approach is enabling the municipalities to share
approaches on innovative methods for promoting local economic
development," said John Briscoe, World Bank director for Brazil.
The five municipalities will benefit from improved partnerships
and enhanced capacity strengthening by working together on
common development priorities that will improve access to
services by the poor, will contribute to the municipal growth
agenda and for environmental benefits. Each of the five
projects will have the same three components:
1) Municipal Strengthening to finance activities related to
improving municipal capacity to plan, appraise, finance,
implement, monitor and evaluate infrastructure and local
economic development investments.
2) Income and Employment Generation. This component will
support municipal initiatives to generate income and
employment opportunities, in addition to improving the
quality of jobs in both in urban and rural businesses with
instruments such as incentives to move into the formal
sector, measures to facilitate access to micro credit,
provision of appropriate commercial space, focused
training and capacity enhancement activities.
3) Infrastructure Service Improvements. The objective of
&