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 Friday, January 18, 2008, Vol. 9, Issue 13 Headlines A R G E N T I N A ALITALIA SPA: Commences Exclusive Talks with Air France-KLM DELTA AIR: S&P Says Merger Talks Have No Effect on Ratings FEDERAL MOGUL: Board Appoints C. Icahn as Non-Executive Chairman FORD MOTOR: Appoints Mr. Osborne as New President of AU Unit FRUTEXPORT SRL: Proofs of Claim Verification Is Until Feb. 22 GLOBAL CROSSING: Building A New Facility in Henrietta, New York QUEBECOR WORLD: Extends Conditions Deadline to Jan. 20 TIMKEN CO: Gets US$2.4 Mil. Advanced Bearing Materials Project * ARGENTINA: Picks Alstom for Link Construction Project B A R B A D O S DIGICEL GROUP: Reports Over Six Million Subscribers in 2007 B E R M U D A CLAYTON PARTNERS: Proofs of Claim Filing Deadline Is Jan. 21 MAN ETZEL: Proofs of Claim Filing Ends Today SEA CONTAINERS: Court Extends Plan-Filing Period to February 20 SEA CONTAINERS: Sopris Capital Reports Ownership of SCL Shares B O L I V I A PETROBRAS ENERGIA: Carlos de Oliveira To Quit as Director B R A Z I L AMR CORP: Posts US$69 Million Net Loss in Fourth Quarter 2007 AMR CORP: Brings In Two New Members to Board of Directors ASPEN TECH: Reports Preliminary 2008 Second Quarter Results BANCO NACIONAL: Okays BRL845,000 Loan for Church Restoration BANCO NACIONAL: Grants BRL845,000 Loan to Fundacao Municipal DELPHI CORP: Obtains "Broad-Based" Support on Plan DRESSER-RAND: Taps Kronos for Workforce Management Services EL PASO: Unit Enters Into Agreements Over Non-Core Properties FIAT SPA: Buys Back 3.86 Million Ordinary Shares FIAT SPA: Magneti Unit Forms Joint Venture with Sumi Motherson HYLAND SOFTWARE: Denali Union Uses OnBase Technology in Policy JAPAN AIRLINES: May See Operating Profit of JPY48BB for FY08 KENDLE INT'L: Hires Ross Horsburgh to Lead Asia/Pacific Unit NOBLE GROUP: S&P Revises Outlook; Affirms BB+ Corporate Rating PARANA BANCO: Completes Acquisition of J Malucelli SUN MICROSYSTEMS: Expects Up to US$265MM Net Income in 2nd Qtr. SUN MICROSYSTEMS: Inks Acquisition Pact with MySQL for US$1 Bil. TEREX CORP: Appoints Four Officers to Senior Executive Roles UAP HOLDING: Board Declares US$0.225 Per Share Dividend * BRAZIL: Petrobras' Reserve Reposition Index Is 134.6% in 2007 * BRAZIL: Gets US$176.7MM Loan for Urban Transportation Program C A Y M A N I S L A N D S AGILE PARTNERS: Holding Final Shareholders Meeting on Jan. 25 AGILE PARTNERS EXCALIBUR: Final Shareholders Meeting on Jan. 25 AZIMUTH CP: Sets Final Shareholders Meeting for Jan. 25 AZIMUTH CP HEDGE: Final Shareholders Meeting Is on Jan. 25 CENTERRA GOLD: Holding Final Shareholders Meeting on Jan. 25 JLOC VII: To Hold Final Shareholders Meeting on Jan. 25 MOORE TECHNOLOGY: To Hold Final Shareholders Meeting on Jan. 25 OZ YEN: Sets Final Shareholders Meeting for Jan. 25 SHUTO GLOBAL: To Hold Final Shareholders Meeting on Jan. 25 VECTOR REGISTER: Sets Final Shareholders Meeting for Jan. 25 C H I L E SHAW GROUP: Will Provide Engineering Services for Two Plants C O L O M B I A BRIGHTPOINT: Taps Bashar Nejdawi as Mobile Enhancement President INTERCONEXION ELECTRICA: Buys 999 Shares in Sociedad Proyectos SOLUTIA INC: Reaches Settlement with Senior Secured Noteholders * COLOMBIA: Obtains US$830,000 Financing from IDB C O S T A R I C A * COSTA RICA: State Telecom Deploying Metro Ethernet This Year C U B A * CUBA: Cupet Inks Broad Cooperation Deal with Petrobras D O M I N I C A N R E P U B L I C AFFILIATED COMPUTER: Bags Allergan's US$130-Mln Outsourcing Deal E C U A D O R PETROECUADOR: Unit Eyes 199,000 Barrels a Day Output by Year-End G U A T E M A L A IMAX CORP: Records US$145 Million from Hollywood Films in 2007 J A M A I C A AIR JAMAICA: Workers Get No National Housing Trust Returns AIR JAMAICA: Bidder Wants To Rehabilitate Palisadoes Road NATIONAL COMMERCIAL: Olint Gets Injunction for Account Closing M E X I C O DURA AUTOMOTIVE: Gets Lenders Consent To Amend DIP Loan Terms DURA AUTOMOTIVE: Seeks Okay for 2008 Management Incentive Plan GRUPO MEXICO: Union Holds Protests Over Labor Ministry's Ruling ICONIX BRAND: Continues Expansion with Three License Agreements MOVIE GALLERY: Court Okays Procedures to Determine Cure Amounts MOVIE GALLERY: Wants CIO Seth Levy's Employment Terms Approved PORTOLA PACKAGING: Weak Liquidity Prompts S&P To Pare Ratings P A N A M A DIGICEL GROUP: Prequalifies To Bid for Panamanian Mobile License P E R U QUEBECOR WORLD: Nonpayment of Interest Cues S&P to Cut Ratings P U E R T O R I C O TERADYNE INC: FTC OKs Early Termination on Merger Waiting Period U R U G U A Y GERDAU SA: Joint Venture w/ Kalyani Getting US$400MM Investments V E N E Z U E L A BANESCO BANCO: Fitch Assigns Issuer Default Ratings at B - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Commences Exclusive Talks with Air France-KLM ----------------------------------------------------------- Alitalia S.p.A. has commenced exclusive talks with Air France- KLM S.A. over the sale of the Italian government's 49.9% stake in the national carrier, Reuters reports citing a spokeswoman for the French airline. The carriers have two months to reach an agreement, which would be approved by the government. As reported on Jan. 15, 2007, Tommaso Padoa Schioppa, Italy's finance minister, has delivered a letter to Alitalia S.p.A. approving the commencement exclusive talks with Air France-KLM. In its non-binding offer, Air France plans to: -- acquire 100% of the shares of Alitalia through an exchange offer; -- acquire 100% of Alitalia convertible bonds; and -- immediately inject at least EUR750 million into Alitalia through a capital increase that will be open to all shareholders and be fully underwritten by Air France. Air France CEO Jean-Cyril Spinetta confirmed plans to cut 1,700 jobs and defended plans to downsize Alitalia's operations in Milan's Malpensa airport. Mr. Spinetta also revealed that should the French carrier acquire 100% of Alitalia shares, Air France would list itself in the Milan bourse. Mr. Schioppa will represent the Italian government during sale talks and will evaluate whether to sell to the state's majority stake in Alitalia, Agenzia Giornalistica Italia says. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. DELTA AIR: S&P Says Merger Talks Have No Effect on Ratings ---------------------------------------------------------- Standard and Poor's says media sources reported that Delta Air Lines Inc. (B/Positive/--) has entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--). Standard & Poor's Ratings Services said that this report has no effect on its ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications. Although Delta has not confirmed the merger discussions, the head of the airline's pilots' union (which has a seat on Delta's board of directors) told the pilots in an internal (but widely reported) letter last week that industry consolidation may be very close. Delta had stated earlier that it is conducting an internal review regarding the desirability of pursuing a merger. Similarly, the CEO of Northwest is reported to have recently told that airline's employees that the company would carefully consider any merger proposal, and that the right transaction could be favorable for Northwest. UAL's CEO has been outspoken in favor of consolidation since the airline emerged from bankruptcy in early 2006. The credit implications of any merger would depend on Standard & Poor's evaluation of the competitive and operating opportunities and risks involved, and on how the merger was to be financed. An all-equity transaction, in which shareholders of one airline receive shares of the other, would clearly be more favorable, as it would not involve adding debt. S&P believes that it is likely that an announced merger agreement between Delta and either Northwest or UAL would trigger negotiations between the remaining airline and Continental Airlines Inc. (B/Stable/B-3). UAL's CEO has in the past stated that he believes a merger of UAL and Continental would have considerable benefits. At present, Northwest can block a merger involving Continental in most circumstances, but if Northwest itself enters into a merger with another large airline, that blocking right would end. Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. FEDERAL MOGUL: Board Appoints C. Icahn as Non-Executive Chairman ---------------------------------------------------------------- The Board of Directors of Federal-Mogul Corporation has elected Carl Icahn as its non-executive Chairman. The Federal-Mogul Board will be composed of, among others, Mr. Icahn and three of his associates, the Associated Press reports. The company's confirmed Plan of Reorganization provides an affiliate of Mr. Icahn an option to purchase certain shares of common stock of Reorganized Federal-Mogul held by the Asbestos Trust. Thornwood Associates is one of Mr. Icahn's affiliates. Mr. Icahn has a 75.24% stake in the class A common stock of Federal-Mogul, according to Reuters. "I am very pleased that a financially strong Federal-Mogul has finally emerged from the bankruptcy process. Additionally and most importantly, Federal-Mogul will no longer be hampered by asbestos litigation. I wish to thank and congratulate all those who have worked with me throughout the last six years to accomplish this. I also wish to extend my thanks to Jose Maria Alapont, our President and CEO, who has so successfully guided the operations of Federal-Mogul during the last three years," Mr. Icahn said in a press release. Federal-Mogul President and Chief Executive Officer Jos‚ Maria Alapont said, "We have very positive relations with Carl Icahn and we welcome him as non-executive Chairman. We remain committed to our strategy for sustainable global profitable growth in all areas of our business and to create value for our customers, shareholders and employees." Federal-Mogul shares were down 10 cents in recent trading at US$19.50, AP relates. About Federal-Mogul Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (OTCBB: FDMLQ) is a global supplier, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. Founded in Detroit in 1899, the company is headquartered in Southfield, Michigan, and employs 45,000 people in 35 countries. Aside from the U.S., Federal-Mogul also has operations in other locations which includes, among others, Mexico, Malaysia, Australia, China, India, Japan, Korea, and Thailand. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Fourth Amended Plan was confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed by the District Court on Nov. 14. * * * As reported in the Troubled Company Reporter on Jan. 10, 2008, Moody's Investors Service confirmed the ratings of the reorganized Federal-Mogul Corporation -- Corporate Family Rating, Ba3; Probability of Default Rating, Ba3; and senior secured bank credit facilities, Ba2. The outlook is stable. The financing for the company's emergence from Chapter 11 bankruptcy protection has been funded in line with the structure originally rated by Moody's in a press release dated Nov. 28, 2007. As reported in the Troubled Company Reporter on Jan. 7, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Southfield, Michigan-based Federal-Mogul Corp. following the company's emergence from Chapter 11 on Dec. 27, 2007. S&P said the outlook is stable. FORD MOTOR: Appoints Mr. Osborne as New President of AU Unit ------------------------------------------------------------ Ford Motor Australia appoints a new president as it moves to play a bigger role in the automaker's global operations, the Australian Associated Press reports. According to the report, Bill Osborne, who is currently the chief executive officer of the Ford Motor Company in Canada, will take over the post as president next month. Former Australia chief Tom Gorman, who has led the company for almost four years, is leaving the company to take up other business opportunities, relates AAP. The change comes following one of Ford's most turbulent years in Australia, which included a decision to close its engine plant in Geelong in 2010, a move that would cut 600 jobs, relates AAP. Ford believes its decision to close the Geelong facility will allow it to improve efficiencies and cut costs as it replaces the locally made engine with one sourced from the United States. The Geelong plant closure, states AAP, was prompted by a falling demand for large cars in Australia due to rising cost of fuel. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. FRUTEXPORT SRL: Proofs of Claim Verification Is Until Feb. 22 ------------------------------------------------------------- Eduardo Anibal Main, the court-appointed trustee of Frutexport S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until Feb. 22, 2008. Mr. Main will present the validated claims in court as individual reports on April 8, 2008. The National Commercial Court of First Instance in General Roca, 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 Frutexport 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 Frutexport's accounting and banking records will be submitted in court on May 21, 2008. Mr. Main is also in charge of administering Frutexport's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Frutexport S.R.L. Uruguay 77, Villa Regina Rio Negro, Argentina The trustee can be reached at: Eduardo Anibal Main Gadano 744, General Roca Rio Negro, Argentina GLOBAL CROSSING: Building A New Facility in Henrietta, New York --------------------------------------------------------------- Global Crossing Ltd. is building a new 90,000 square-foot facility in West Henrietta, New York. The new building, expected to be completed by the spring of 2008, will combine three of Global Crossing's facilities in the Rochester area and establish a new collaborative work environment for the company's employees. "This new investment reinforces our commitment to stay and grow in the Rochester area while strengthening our ties with the local community," said Global Crossing's executive vice president of strategy and corporate development, Dave Carey. "The new facility will also create a working environment that enables the team to drive the company's growth by bringing our employees into one location, stimulating collaboration and innovation." Global Crossing currently employs a staff of approximately 500 professionals in the area, which represents Global Crossing's largest United States location. This local office is home to the company's access management, finance, global operations including information technology and security, human resources, legal, marketing and sales departments. Global Crossing and its Rochester employees are active supporters of the community and have a history of involvement in local charity work. "Our employees have always given back to the community, recently pledging more than US$63,000 in donations to the Greater Rochester United Way," said executive vice president, enterprise sales and collaboration services, Dan Wagner. "In addition, each year, Rochester employees also participate in the JP Morgan Chase Corporate Challenge." The new Henrietta site, located at 225 Kenneth Drive, will offer employees a number of amenities such as an on-site cafeteria, formal lobby, ample parking and landscaped walking areas. It will also create 20 percent more growth space, compared to the three current sites at 1080 and 1120 Pittsford Victor Road in Pittsford, New York, and 435 West Commercial Street, in East Rochester. LeFrois Construction Company is building the new facility. About Global Crossing Headquartered in Florham Park, New Jersey, Global Crossing Ltd. (NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides telecommunication services over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe including Bermuda, Argentina, Brazil, and the United Kingdom. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. The company filed for chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the Debtors filed for protection from their creditors, they listed US$25,511,000,000 in total assets and US$15,467,000,000 in total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003. * * * At Dec. 31, 2006, Global Crossing Ltd.'s balance sheet showed a US$195 million stockholders' deficit, compared to a US$173 million stockholders' deficit at Dec. 31, 2005. As reported in the Troubled Company Reporter-Latin America on Nov. 8, 2007, Global Crossing Ltd. said in a statement that its net loss increased 75% to US$89 million in the third quarter 2007, compared to US$51 million in the third quarter 2006. QUEBECOR WORLD: Extends Conditions Deadline to Jan. 20 ------------------------------------------------------ Quebecor World Inc. has extended the deadline for the satisfaction of certain conditions precedent to the previously announced CDN$400 million rescue financing agreement with Quebecor Inc. and Tricap Partners Ltd. Quebecor Inc. and Tricap Partners Ltd. have indicated that they have made progress on the satisfaction of these conditions and have requested additional time to attempt to satisfy them. The deadline for these conditions has been moved from 9:00 p.m. on Jan. 16, 2008, to 9:00 a.m. on Jan. 20, 2008. Quebecor World continued to work with Quebecor Inc. and Tricap Partners Ltd. on the rescue-financing plan and believed that satisfaction of the conditions of such initiative would be in the best interests of the company and all its stakeholders. There is no assurance all the consents and approvals to the completion of the rescue financing initiative will be received on a timely basis. About Quebecor World Inc. Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/-- provides marketing and advertising solutions to leading retailers, catalogers, branded-goods companies and other businesses with marketing and advertising activities, as well as complete, full-service print solutions for publishers. The company's major product categories include advertising inserts and circulars, catalogs, direct mail products, magazines, books, directories, digital premedia, logistics, mail list technologies and other value-added services. Quebecor World has approximately 27,500 employees working in more than 120 printing and related facilities in the United States, Canada, Argentina, Austria, Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 21, 2007, Moody's Investors Service has downgraded Quebecor World Inc.'s corporate family rating by two notches to Caa2. As reported in the Troubled Company Reporter-Latin America on Dec. 21, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Montreal-based printing company Quebecor World Inc. two notches to 'CCC' from 'B-'. In addition, Standard & Poor's lowered the senior unsecured debt rating on the company by three notches to 'CCC-' from 'B-', reflecting the junior position of the notes in relation to Quebecor World's US$750 million revolving credit facility (unrated), which is fully guaranteed and partially secured, and the high likelihood that the company's debt level will increase in the near term. TIMKEN CO: Gets US$2.4 Mil. Advanced Bearing Materials Project -------------------------------------------------------------- The Timken Company has received a US$2.4 million order in continued federal funding for ongoing projects related to improving the performance and affordability of the next- generation aerospace gas turbine engine. The new order focuses on development of advanced bearing materials to meet specific high-performance characteristics under the Versatile Affordable Advanced Turbine Engine program. The VAATE program is a joint initiative involving the Department of Defense, the Department of Energy, NASA and the U.S. aerospace industry. One of the program's goals is to increase the affordability of new turbine-propulsion technology over current designs. As part of ongoing development for the engine program, Timken will demonstrate how advanced bearing materials can survive hotter environments at higher speeds for longer periods of time. Such technology helps to improve engine performance, resulting in reductions in fuel consumption, emissions and operating costs. "Timken's involvement in this long-term initiative reflects our technical expertise in creating advanced solutions for the challenges of next-generation engines," said J. Ron Menning, president of the company's aerospace, defense and position control business unit. "We continue to develop innovations that can improve the performance of aerospace engines and power- transmission systems, and those technological advances can be leveraged with broader commercial and defense applications." Timken offers a comprehensive line of aerospace quality bearings, along with a select range of turbine engine components, transmissions and MRO services. Known for consistent, critical performance and backed by stringent quality standards, Timken aerospace products are found in aircraft engines, gearboxes, helicopter transmissions, auxiliary power units, landing wheels, airframes and instrumentation. About Timken Co. Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America, Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000 employees. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 15, 2007, Moody's Investors Service affirmed Timken's Ba1 corporate family rating and the Ba1 rating on Timken's US$300 million Medium Term Notes, Series A. * ARGENTINA: Picks Alstom for Link Construction Project ------------------------------------------------------- The President of Argentine Republic, Cristina Fernandez Kirchner, announced on Jan. 16, 2008, that Alstom and its partners IECSA, Emepa, Isolux Corsan have been awarded the first very high-speed link project in Latin America, between Buenos Aires, Rosario and Cordoba. This adjudication is a decisive step in the project, before the finalization and signature of the contract, which is scheduled in the next few months. The line will link Buenos Aires and Cordoba, 710 km apart, in three hours instead of the 14 hours the journey took on Jan. 17. It will be served by eight double deck very high-speed trains, each with a capacity of 500 passengers, operating nine return trips every day at speeds of up to 320kph. This turnkey project will involve the construction of the infrastructure, including 7 stations and 780 kilometers of tracks, electrification, signalling (ERTMS level 2), the supply of rolling stock and maintenance. Alstom, the consortium leader, will undertake the overall management and engineering of the project, the supply of rolling stock, signaling, communication systems, electrification and maintenance. The trains will be manufactured at Alstom's French plants and assembled at the Alstom site at La Plata, in the province of Buenos Aires. IECSA will be in charge of civil works with Isolux Corsan and EMEPA will participate in the construction of the tracks with Alstom. "The Buenos Aires-Rosario-Cordoba line constitutes the largest very high speed rail project since the KTX project in Korea. It represents an essential component in the economic development of Argentina," underlines Philippe Mellier, President of Alstom Transport. This order confirms Alstom's leadership in very high speed. Since the launch of the first TGVTM in 1981, Alstom has gained unrivalled experience: 70% of the trains in service in the world which travel at more than 300 kph have been built by Alstom. They have covered over 2.8 billion kilometres (6,500 times the distance between the earth and the moon), carried 1.6 billion passengers and achieved two world rail speed records - 515.3 kph in 1990 and 574.8 kph in 2007. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Standard & Poor's Ratings Services assigned B+ long-term sovereign local and foreign currency ratings and B short-term sovereign local and foreign long-term ratings on Argentina. Standard & Poor's also placed 4 sovereign foreign currency recovery rating and a BB transfer and convertibility assessment rating. Standard & Poor's says the outlook for these ratings is stable. Fitch Ratings assigned these ratings on Argentina: Rating Rating Date ------ ----------- Country Ceiling B+ Aug. 1, 2006 Local Currency Long Term Issuer B Aug. 1, 2006 Short Term IDR B Dec. 14, 2005 Long Term IDR RD Dec. 14, 2005 =============== B A R B A D O S =============== DIGICEL GROUP: Reports Over Six Million Subscribers in 2007 ----------------------------------------------------------- Digicel said in a statement that it has over six million clients in 2007, compared to 4.1 million customers in 2006. Digicel told Business News Americas that it has recorded a compound yearly growth rate of over 50% since launching in 2001. BNamericas notes that Digicel won in December 2007 a license to operate a GSM network in the British Virgin Islands. It would initially invest US$15 million for the construction of a network to provide mobile services in the islands. Digicel also launched operations in Suriname after an initially investing US$60 million. Digicel will have a presence in 24 markets. A Digicel spokesperson commented to BNamericas, "Digicel is on target to record revenues of US$1.4 billion to US$1.5 billion for the fiscal year that ends in March." Digicel Central America Holdings, which is a separate entity to Digicel Group, is also eying licenses in Panama and Nicaragua, BNamericas says, citing a spokesperson. The spokesperson commented to BNamericas, "Since our launch in the Caribbean in 2001, Digicel has invested US$1.9 billion in the region, with capital expenditure amounting to about US$360mn in the current year." Digicel told BNamericas that it would invest in Honduras this year to increase mobile penetration in the country to 75% within the next five years from 38%. Digicel Ltd. is a wireless services provider in the Caribbean region founded in 2000, and controlled by Denis O'Brien. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in Caribbean countries including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Bermuda, Cayman, and Curacao among others. Digicel finished FY2005 with 1.722 million total subscribers -- 97% pre-paid -- estimated market share of 67% and revenues and EBITDA of US$478 million and US$155 million, respectively. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings took these rating actions for Digicel Group Ltd., Digicel Ltd. and Digicel International Finance Ltd.: Digicel Group Ltd. -- Proposed US$1.4 billion senior subordinated notes due 2015 assigned 'CCC+/RR5' Digicel Ltd. -- Foreign currency Issuer Default Rating downgraded to 'B-' from 'B'; and -- US$450 million senior notes due 2012 downgraded to 'B-/RR4' from'B/RR4'. Digicel International Finance Ltd. --US$850 million senior secured credit facility assigned 'B/RR3'. Fitch said the outlook on all ratings is stable. ============= B E R M U D A ============= CLAYTON PARTNERS: Proofs of Claim Filing Deadline Is Jan. 21 ------------------------------------------------------------ Clayton Partners Limited's creditors are given until Jan. 21, 2008, to prove their claims to Peter C.B. Mitchell and Nigel J.S. Chatterjee, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Clayton Partners' shareholder decided on Dec. 31, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidators can be reached at: Peter C.B. Mitchell Nigel J.S. Chatterjee PricewaterhouseCoopers Advisory Limited P.O. Box HM 1171 Hamilton, Bermuda HM EX MAN ETZEL: Proofs of Claim Filing Ends Today -------------------------------------------- Man Etzel Limited's creditors are given until Jan. 18, 2008, to prove their claims to Beverly Mathias, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Man Etzel's shareholders agreed Dec. 27, 2007, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda SEA CONTAINERS: Court Extends Plan-Filing Period to February 20 --------------------------------------------------------------- The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware extended, until Feb. 20, 2008, the exclusive period wherein Sea Containers Ltd. and its debtor- affiliates can file a plan of reorganization. Additionally, Judge Carey fixed April 19, 2008 as the deadline for the Debtors to solicit acceptances of that plan. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court gave the Debtors until Feb. 20, 2008 to file a plan of reorganization. (Sea Containers Bankruptcy News, Issue No. 33; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Sopris Capital Reports Ownership of SCL Shares -------------------------------------------------------------- Sopris Capital Advisors LLC disclosed in a regulatory filing with the U.S. Securities and Exchange Commission dated Dec. 6, 2007, that it: (a) indirectly owns: -- 503,180 shares of Class A common stock of Sea Containers Ltd., through mananged accounts; -- 2,472,800 shares of Class A common stock through a partnership and managed accounts; and (b) directly owns 55,000 shares of Class A common stock. All of the 503,180 shares, which represent 1.9% of the isssued and outstanding Sea Containers Class A common stock, are owned by private institutional accounts managed by Aspen Advisors LLC, a Delaware limited liability company. Aspen Advisors disclaim any beneficial interest in the securities owned by the Aspen Managed Accounts. By virtue of Nikos Hecht's position as a managing member of Aspen Advisors, he may be deemed the beneficial owner of the securities held by the Aspen Managed Accounts under Regulation 13D-G under the Exchange Act. Mr. Hecht disclaims any beneficial interest in the securities owned by the Aspen Managed Accounts. Of the 2,472,800 shares that represent 9.5% of the isssued and outstanding Sea Containers Class A common stock, Sopris Partners Series A, of Sopris Capital Partners, L.P., a Delaware limited partnership, owns 1,779,700 shares and private institutional accounts managed by Sopris Capital Advisors LLC, a Delaware limited liability company own 693,100 shares. The 1,779,700 shares represent 6.8% of Sea Containers shares outstanding. Sopris Capital LLC is the general partner of the Sopris Partnership. The Sopris Partnership and the Sopris General Partner disclaim any beneficial interest in the securities owned by the Sopris Managed Accounts, and the Sopris General Partner disclaims any beneficial interest in the securities owned by the Sopris Partnership in excess of a 0.70% pecuniary interest, calculated in accordance with Rules 16(a)-1(a)(2) and (a)(3) under the Exchange Act. Sopris Advisors disclaims any beneficial interest in the securities owned by the Sopris Partnership and the Sopris Managed Accounts. Mr. Hecht is the sole managing member of the Sopris General Partner and the managing member of Sopris Advisors. By virtue of that status, he may be deemed the beneficial owner of the securities held by the Sopris Partnership and the Sopris Managed Accounts under Regulation 13D-G under the Exchange Act. Mr. Hecht disclaims any beneficial interest in the securities owned by the Sopris Partnership other than a 0.60% pecuniary interest in the shares, calculated in accordance with rules 16(a)-1(a)(2) and (a)(3). He disclaims any beneficial interest in the securities owned by the Sopris Managed Accounts. Mr. Hecht directly owns all of the 55,000 shares. Mr. Hecht has the sole power to vote or to direct the vote on -- as well as dispose or direct the disposition of -- the 55,000 shares. In a separate filing with the Securities and Exchange Commission, Mr. Hecht disclosed that he owns an aggregate of 3,030,980 shares representing 11.6% of the isssued and outstanding Sea Containers Class A common stock. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court gave the Debtors until Feb. 20, 2008 to file a plan of reorganization. (Sea Containers Bankruptcy News, Issue No. 33; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ============= B O L I V I A ============= PETROBRAS ENERGIA: Carlos de Oliveira To Quit as Director --------------------------------------------------------- Petrobras Energia Participaciones S.A., the controlling company of Petrobras Energia S.A., disclosed that on a Jan. 14 meeting, Petrobras Energia S.A.'s Board of Directors approved the resignation letter of Carlos Alberto Pereira de Oliveira. The Chairman informed that Mr. Oliveira submitted a letter of resignation from his position as Director of Exploration and Production, effective March 1, 2008, since he has been appointed to hold senior executive positions at Petroleo Brasileiro S.A., or Petrobras. Mr. Oliveira was appointed as Director of Exploration and Production of the company on May 21, 2003, as evidenced by Board of Directors' Minutes Nbr 2324, transcribed to the relevant Book. The Chairman proposed to appoint Gustavo Adolfo Amaral as Director of Exploration and Production, effective March 1, 2008. The appointed director will directly report to the Board, being responsible before the company and third parties for the performance of his duties under the same terms and conditions as Directors. Mr. Amaral (51) graduated in Construction Engineering from the Military Institute of Engineering, Rio de Janeiro, Brazil. He completed post-graduate courses in Oil Engineering and attended the Advanced Management Program at the Wharton Business School - USA. He coordinated international projects of Petrobras in Latin America, Europe, Africa and the Middle East. He held several managerial positions at Petrobras in Brazil and abroad, such as: Petrobras Production and Operations Manager in the United States and Director of Petrolera Entre Lomas S.A., in Argentina. He presently performs as Planning and New Developments Manager of the company's Exploration and Production business unit. The proposal was submitted to the consideration of the meeting and the same was approved by those present thereat. It is also proposed to expressly evidence the company's recognition for Carlos Alberto Pereira de Oliveira's successful performance and the excellent services rendered during his term of office. The Board unanimously approved the proposal. Petrobras Energia Participaciones SA (Buenos Aires: PBE, NYSE:PZE) through its subsidiary, explores, produces, and refines oil and gas, as well as generates, transmits, and distributes electricity. It also offers petrochemicals, as well as markets and transports hydrocarbons. The company conducts oil and gas exploration and production operations in Argentina, Venezuela, Peru, Ecuador, and Bolivia. * * * In January 2007, Fitch Argentina Calificadora de Riesgo affirmed these ratings assigned to Petrobras Energia: -- international currency: B+ -- unsecured senior debt: B+ -- local currency: BB- =========== B R A Z I L =========== AMR CORP: Posts US$69 Million Net Loss in Fourth Quarter 2007 ------------------------------------------------------------- AMR Corporation, the parent company of American Airlines, Inc., has reported a net loss of US$69 million for the fourth quarter of 2007, or US$0.28 per share. The results for the fourth quarter of 2007 include the impact of several special items that were identified in AMR Corp.'s Dec. 21, 2007 investor update and amounted to a cumulative positive impact of approximately US$115 million, or US$0.46 cents per diluted share. These items include: a US$138 million gain on the sale of the company's stake in ARINC; a US$39 million gain to reflect the positive impact of the previously announced change to an 18-month expiration of AAdvantage(R) miles; and a US$63 million charge associated with the retirement of 24 MD-80 aircraft that previously had been temporarily stored. The current quarter results compare to a net profit of US$17 million for the fourth quarter of 2006, or US$0.07 per diluted share. For all of 2007, the company posted a net profit of US$504 million, or US$1.78 per diluted share. In addition to the special items from the fourth quarter, the full-year 2007 results also include the impact of a US$30 million charge, disclosed in the third quarter, to reflect an adjustment for additional salary and benefit expense accruals related to years 2003 through 2006. The company's full-year 2007 results compare to a net profit of US$231 million net profit, or US$0.98 per diluted share, for all of 2006. "Our employees overcame enormous challenges from unprecedented weather disruptions, air traffic control problems and record fuel prices to help our company take another important step forward in 2007. We earned our second straight annual profit, achieving our first back-to-back profitable years since 1999-2000, and made progress in many areas, including strengthening our balance sheet, focusing on customers, renewing our fleet, bolstering our network and investing in products and services," said AMR Chairperson and Chief Executive Officer, Gerard Arpey. "While record fuel prices contributed significantly to our fourth quarter loss -- our first quarterly loss after six straight profitable quarters -- they are a reminder of the challenges we must continue to overcome as we strive for consistent and adequate profitability. As we thank our employees for their efforts in 2007, it is also clear that we have more work ahead as we seek to maintain momentum in 2008 and beyond." Operational Performance American Airlines' mainline passenger revenue per available seat mile (unit revenue), excluding special items, increased by 4.5 percent in the fourth quarter compared to the year-ago quarter. Mainline capacity, or total available seat miles, in the fourth quarter increased 0.4 percent compared to the same period in 2006. The year-over-year increase in capacity was largely the result of previously announced aircraft density initiatives, mitigated somewhat by weather-related cancellations. Fourth quarter mainline departures declined slightly year over year. The airline's mainline load factor -- or the percentage of total seats filled -- was a record 80.2 percent during the fourth quarter, compared to 78.8 percent in the fourth quarter of 2006. Its fourth-quarter yield, which represents average fares paid, excluding special items, increased 2.6 percent compared to the fourth quarter of 2006, its 11th consecutive quarter of year- over-year yield increases. Excluding special items, AMR Corp. reported fourth quarter consolidated revenues of approximately US$5.6 billion, an increase of 4.6 percent year over year. The airline's mainline cost per available seat mile (unit cost) in the fourth quarter, excluding special items, increased 8.6 percent year over year. The largest contributor to the year- over-year increase in unit costs was fuel. In the fourth quarter, American paid US$367 million more than it would have paid at fourth quarter 2006 fuel prices. Consolidated fuel expense in the fourth quarter was US$412 million higher than it would have been at fourth quarter 2006 fuel prices. Excluding fuel and special items, mainline unit costs in the fourth quarter increased by 0.6 percent year over year, largely reflecting a US$44 million accrual in the fourth quarter for a one-time payment to eligible employees under the company's broad-based variable compensation plans. For the full year, the accrual for the one-time payment totalled US$67 million. Mr. Arpey said the company's Board of Directors had approved the one-time payment "in recognition of the collective effort of our employees and the special circumstances that existed in 2007." Each eligible American Airlines employee is expected to receive a payment of US$800 under the Customer Service Component of the company's Annual Incentive Plan (AIP). "This is a tangible way of saying 'thank you' for all that our employees did for our company in a challenging year," he added. Balance Sheet Improvement AMR Corp. continued to strengthen its balance sheet in the fourth quarter. The company ended the fourth quarter with US$5.0 billion in cash and short-term investments, including a restricted balance of US$428 million, compared to a balance of US$5.2 billion in cash and short-term investments, including a restricted balance of US$468 million, at the end of the fourth quarter of 2006. As previously disclosed, it paid off US$865 million in debt in the fourth quarter, including scheduled debt payments and an unscheduled US$545 million aircraft debt prepayment. Of the company's US$2.3 billion in debt payments for all of 2007, approximately US$1 billion of those were prepayments. The company reduced Total Debt, which it defines as the aggregate of its long-term debt, capital lease obligations, the principal amount of airport facility tax-exempt bonds, and the present value of aircraft operating lease obligations, to US$15.6 billion at the end of the fourth quarter of 2007, compared to US$18.4 billion a year earlier. Its reduced Net Debt, which it defines as Total Debt less unrestricted cash and short-term investments, from US$13.6 billion at the end of the fourth quarter of 2006 to US$11.0 billion in the fourth quarter of 2007. As a result of scheduled principal payments as well as prepayments, refinancing and other efforts to strengthen its balance sheet, the company's net interest expense for 2007 was US$174 million lower than in 2006, a 23.2 percent reduction. As announced in October, the company met its projected 2007 commitment to fund its defined benefit pension plans for employees by contributing US$380 million to these plans through the first three quarters of the year. AMR Corp. has contributed nearly US$2 billion to these plans since 2002, as the company continues to meet this important commitment to employees. The company's 2007 pension contributions, along with strong investment returns, higher market discount rates and legislative changes to the mandatory pilot retirement age, helped to improve the accumulated benefit obligation funded status of its pension plans to 96 percent, up from 84 percent at the end of 2006. Highlights Fourth Quarter 2007 and Recent -- Since providing a fleet renewal update in October, American Airlines has increased the number of additional Boeing 737-800s that will be delivered in 2009 by 10 aircraft. Six of the 10 737s are part of its announced plan to accelerate the deliveries of 47 previously ordered 737s into the 2009-2012 timeframe, while the other four 737s are incremental to the 47 aircraft. Including the 10 737s cited, the airline so far has scheduled delivery of a total of 23 737s throughout 2009 (representing 18 of the initial 47 aircraft and five incremental aircraft). -- The airline announced that it is offering complimentary Wi-Fi service powered by T-Mobile to Admirals Club members and One-Day pass guests visiting club locations in the United States and Puerto Rico. The complimentary in-club service is part of its continuing focus on enhancing the value of the Admirals Club membership, and it allows members a way to remain easily connected to work, home or elsewhere when travelling. -- The company announced plans to divest American Eagle, its wholly-owned regional airline. AMR said that the divestiture of American Eagle is intended to provide it with the structure, incentives and opportunities to win new business and provide new opportunities for its employees. It also said that it believes that the divestiture will enable American Airlines to focus on its mainline business, while ensuring its continued access to cost-competitive regional feed. -- The airlines announced that it will begin non-stop service from Chicago's O'Hare International Airport to Moscow's Domodedovo International Airport on June 2, 2008. From Chicago, American Airlines is -- or soon will be -- providing links to the world's key developing economies in Russia, China, and India as well as the established markets of Japan, Europe, and Latin America. -- The airline launched its inaugural nonstop service between New York's John F. Kennedy International Airport and London's Stansted Airport. Its second daily round trip between JFK and Stansted, to be added in April 2008, will give customers the choice of an early or late evening departure from New York to Stansted and a morning or late afternoon departure from Stansted to New York. -- American Airlines launched new service from South Florida, including: Miami-Barranquilla, Colombia; Ft. Lauderdale-Santo Domingo, Dominican Republic; and Ft. Lauderdale-San Jose, Costa Rica. It also launched: Chicago-Buenos Aires, Argentina; DFW-Panama City, Panama; and DFW-Providenciales, Turks & Caicos. Third Quarter 2007 -- The airlines introduced DealFinder, a downloadable, computer desktop tool that offers customers exclusive, targeted, discounted fares to locations throughout its network. The tool, available at http://www.aa.com/dealfinder,searches for the lowest fares, allowing customers to spend less time planning travel. -- The airline continued to grow and enhance its New York service into Europe, announcing that it will begin two new routes early in 2008 to Milan, Italy, and Barcelona, Spain, from JFK, as well as a second daily roundtrip between JFK and London's Stansted Airport. It also unveiled its state-of-the-art, US$1.3 billion terminal at JFK as part of its continuing commitment to become the airline of choice in the New York market. -- American Airlines, American Eagle and Texas Aero Engine Services Limited (TAESL), an affiliated engine repair facility, received the coveted Federal Aviation Administration's Diamond Award for excellence in training their Aviation Maintenance Technicians. Second Quarter 2007 -- Overhaul & Maintenance Magazine honored American and the Transport Workers Union (TWU) with its Outstanding Achievement Award for their work together as partners to transform the airline's Maintenance & Engineering organization from a cost center to a profit center. -- The airline announced plans to make upgrades on its entire fleet of 124 Boeing 757 aircraft, including installation of new seats, new cabin interiors and updated in-flight entertainment systems. -- The company continued to improve its balance sheet by refinancing the US$442 million floating rate term loan portion of its credit facility, refinancing US$586 million in airport facility bonds and prepaying US$48 million in aircraft debt. -- The airline announced and implemented a significant upgrade to AA.com that offers customers a faster and easier way to shop for and purchase travel. The new shopping and ticket purchase functionality on AA.com empowers customers to quickly evaluate flight options by providing a convenient display of schedule, price and levels of service combinations. First Quarter 2007 -- The company improved its balance sheet by paying down the US$285 million balance on its revolving credit facility and by prepaying US$79 million in aircraft debt. -- AMR Corp. was honored by PLANSPONSOR Magazine as Corporate Plan Sponsor of the Year for the company's efforts to protect and preserve its employees' defined benefit pension plans. -- American Airlines launched a new booking tool on AA.com that makes it easier and more convenient for Aadvantage program members to redeem earned miles for travel. Guidance Mainline and Consolidated Capacity The company expects its full-year mainline capacity to increase by 1.0 percent in 2008 compared to 2007, with a 0.4 percent reduction in domestic capacity and a 3.3 percent increase in international capacity. On a consolidated basis, AMR expects full-year capacity to increase by 0.9 percent in 2008 compared to 2007. Given that weather cancellations caused American to significantly under-fly its 2007 schedule, 2008 mainline capacity is expected to be roughly flat with 2007 levels on a schedule-to-schedule basis. The company expects mainline capacity in the first quarter of 2008 to increase 0.9 percent year over year. It expects consolidated capacity to increase 0.8 percent in the first quarter of 2008 compared to the prior-year period. However, mainline capacity and consolidated capacity in the first quarter of 2008 are expected to decline year over year on a schedule-to- schedule basis due to under-flying related to weather impact in the first quarter of 2007. Fuel Expense and Hedging While the cost of jet fuel remains volatile, as of now the company is planning for an average system price of US$2.64 per gallon in the first quarter of 2008 and US$2.65 per gallon for all of 2008. It has 35 percent of its anticipated first quarter 2008 fuel consumption capped at an average crude equivalent of US$77 per barrel (jet fuel equivalent of US$2.21 per gallon), with 24 percent of its anticipated full-year consumption capped at an average crude equivalent of US$79 per barrel (jet fuel equivalent of US$2.31 per gallon). Consolidated consumption for the first quarter is expected to be 771 million gallons of jet fuel. Mainline and Consolidated Unit Costs For the first quarter of 2008, mainline unit costs are expected to increase 13.1 percent compared to the first quarter of 2007, while first quarter consolidated unit costs are expected to increase 12.9 percent compared to the first quarter of 2007. In the first quarter of 2008, mainline unit costs excluding fuel are expected to increase 1.8 percent year over year while consolidated unit costs excluding fuel are expected to increase 1.7 percent from the first quarter of 2007. Full-year mainline unit costs are expected to increase 8.6 percent in 2008 compared to 2007, while full-year consolidated unit costs are expected to increase 8.4 percent in 2008 compared to 2007. The company expects mainline unit costs excluding fuel to be 1.5 percent higher in 2008 versus 2007 while 2008 consolidated unit costs excluding fuel are expected to increase 1.4 percent year over year. About AMR Corp. Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. - - http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, Europe and Asia, including Belgium, Brazil, Japan, among others. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 30, 2007, following the announcement by AMR Corp. that it intends to divest its American Eagle Holding Corp. subsidiary in 2008, Fitch expects no near-term impact on the debt ratings of AMR and its principal operating subsidiary, American Airlines Inc. Fitch affirmed both entities' Issuer Default Ratings at 'B-' on Nov. 13, 2007, while revising the Rating Outlook for AMR to Positive. AMR CORP: Brings In Two New Members to Board of Directors --------------------------------------------------------- Rajat K. Gupta, Senior Partner Emeritus of McKinsey & Company, and Alberto Ibarguen, former newspaper publisher and now the President and Chief Executive Officer of the John S. and James L. Knight Foundation, have been elected to the Boards of Directors of AMR Corporation and American Airlines, Inc. AMR Corp. is the parent company of American Airlines and American Eagle, Inc. "We are fortunate to bring Rajat's and Alberto's vast experience in business and broad community involvement to the Boards of AMR and American Airlines," said AMR and American Airlines, Chairperson and CEO, Gerard J. Arpey. "They bring to our Boards the necessary diverse points of view and personal qualities that will help strengthen both AMR and American now and in the years to come." Rajat K. Gupta Born in India and now a United States citizen residing in Connecticut, Mr. Gupta joined McKinsey's New York office in 1973, assumed the leadership of its Scandinavian offices in 1981, and then its Chicago office in 1989. He served as the Managing Director Worldwide of McKinsey from 1994-2003. In his 34-year career in consulting, Mr. Gupta has served many leading companies on a broad set of topics related to strategy, organization and operations. He also is active in many non- profit institutions with a particular focus on education, health and development. He served as the United Nations Secretary- General's Special Advisor on United Nations Reform, serves as a director of Goldman Sachs, Procter & Gamble, Qatar Financial Centre, and is the Chairperson of the Board of Genpact and New Silk Route Private Equity. Mr. Gupta is also on the Board of Rockefeller Foundation and contributes to the work of the Board of the Indian School of Business; Chairperson of Pan IIT Alumni Association; the Board of Associates of the Harvard Business School; the Advisory Board of the Kellogg School of Management; the Dean's Advisory Board for the School of Economics and Management at Tsinghua University; the Yale President's Council; and the Board of Business Higher Education Forum. He also is Chairperson of the Advisory Board of the Bill & Melinda Gates Foundation; co-Chair of the American India Foundation; and serves on the boards of the India Education Initiative, World Economic Forum, and Millennium Promise. Mr. Gupta holds a Bachelor's of Technology degree in Mechanical Engineering from the Indian Institute of Technology and an M.B.A from Harvard Business School. Alberto Ibarguen A resident of Miami, Mr. Ibarguen has served as CEO and President of the John S. and James L. Knight Foundation since 2005 and is the former publisher of The Miami Herald and of El Nuevo Herald. During his tenure at the newspapers, The Miami Herald won three Pulitzer Prizes and El Nuevo Herald won Spain's Ortega y Gasset Prize for excellence in journalism. Knight Foundation promotes excellence in journalism worldwide and invests in the vitality of 26 U.S. communities. Mr. Ibarguen graduated from Wesleyan University and the University of Pennsylvania Law School. Between Wesleyan and Penn, he served in the Peace Corps in Venezuela's Amazon Territory and in Colombia. He practiced law in Hartford, Connecticut, until he joined The Hartford Courant. Following his career at The Hartford Courant he moved to Newsday in New York before moving to Miami and The Miami Herald. Mr. Ibarguen is chairperson of the board of the Newseum in Washington, D.C., a museum dedicated to free speech and free press. He is a member of the board of PepsiCo and of the Council on Foreign Relations, is a former board member of NCL Corporation Ltd., is on the Trustees' Council of the National Gallery of Art, and serves as a Senior Advisor on the International Advisory Board of the School of Journalism and Communication at Tsinghua University. Over the years, he also has served on the boards for the Lincoln Center for the Performing Arts, the Committee to Protect Journalists, Wesleyan University and Smith College, and was the national board chair of the Public Broadcasting System. For his work to protect journalists in Latin America as part of the Inter American Press Association, Mr. Ibarguen received a Maria Moors Cabot citation from Columbia University and George Washington University awarded him an honorary Doctor of Letters. About AMR Corporation Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. - - http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, Europe and Asia, including Belgium, Brazil, Japan, among others. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 30, 2007, following the announcement by AMR Corp. that it intends to divest its American Eagle Holding Corp. subsidiary in 2008, Fitch expects no near-term impact on the debt ratings of AMR and its principal operating subsidiary, American Airlines Inc. Fitch affirmed both entities' Issuer Default Ratings at 'B-' on Nov. 13, 2007, while revising the Rating Outlook for AMR to Positive. ASPEN TECH: Reports Preliminary 2008 Second Quarter Results ----------------------------------------------------------- Aspen Technology Inc. has disclosed selected preliminary financial results for the second quarter of fiscal 2008. The company reported license bookings of approximately US$66 million during the second quarter of fiscal 2008, with license bookings defined as the total net present value of all license contracts signed in the quarter. This represents an increase of approximately 10% compared to license bookings of approximately US$60 million in the second quarter of fiscal 2007. For the first six months of fiscal 2008, ending Dec. 31, 2007, the Company generated license bookings of approximately US$102 million, representing an increase of over 20% compared to the same time period in fiscal 2007. The company ended Dec. 31, 2007, with US$131 million in cash and cash equivalents, which is an increase from the end of the prior quarter primarily due to strong license bookings and continued focus on managing costs and expenses, offset by a previously disclosed US$4 million payment the company elected to make in December to satisfy the remaining balances of a loan agreement. The company continues to have full access to its installments receivable financing facilities. However, the company elected to reduce the level of cash proceeds from sales of installments receivable by approximately 30%, or US$20 million, compared to the first six months of fiscal 2007 during a period that license bookings increased by over 20%. Mark Fusco, the company's Chief Executive Officer, said, "While the company's finance organization is working diligently to bring the company's financial statements up-to-date, the focus and execution of our customer facing operations remains at a high level. Combined with continued strength in market demand and interest for our aspenONE suite, this has enabled the company to generate over 20% growth in license bookings on a fiscal year-to-date basis. We continue to be optimistic about the long-term fundamental outlook for the Company based on our industry leading domain expertise, unique suite of aspenONE solutions and solid demand we continue to see in our core markets." The company also announced that Deloitte & Touche LLP, the company's independent registered public accounting firm, is declining to stand for re-appointment for the fiscal 2008 audit. There is no disagreement between the company and Deloitte on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. AspenTech's Audit Committee has begun the process of selecting a successor independent registered public accounting firm, and it will make an announcement when this process concludes. Deloitte's decision does not impact their engagement to complete the audit of AspenTech's financial statements as of June 30, 2006 and 2007 and for each of the three years in the period ending June 30, 2007. In addition, Deloitte has agreed to be engaged for the review of the company's interim consolidated financial statements included in its Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2007. While substantial progress has been made in these efforts, the company has requested from the Nasdaq Listings Qualification Panel an additional extension to February 8 to file the above financial statements and related reports with the SEC and comply with Nasdaq listing requirements. There can be no assurance that the Nasdaq Listing Qualifications panel will grant the company's request, and failure to grant the request would likely result in the company's securities being delisted from the Nasdaq Global Market. Brad Miller, Aspen's Chief Financial Officer, said "We believe we are in the final stages of completing our work on the accounting positions related to income taxes. Once completed, this would bring to close the previously disclosed detailed review of our financial accounting and put the company in a position to become current in its filings." About Aspen Technology Based in Cambridge, Massachusetts, Aspen Technology Inc. (Nasdaq: AZPN) -- http://www.aspentech.com/-- provides software and professional services that help process companies improve efficiency and profitability by enabling them to model, manage and control their operations. The company has operations in Brazil, Malaysia and France. * * * Aspen Technology carries Moody's B2 long-term corporate family rating and Caa1 equity linked rating. Moody's said the outlook is stable. The company carries Standard & Poor's B long-term foreign and local issuer credit ratings, with negative outlook. BANCO NACIONAL: Okays BRL845,000 Loan for Church Restoration ------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social's board of directors of has approved support of BRL845,000 under the Rouanet Law ambit, to Instituto Dom Helder Camara [Dom Helder Camara Institute] - IDHeC, for the restoration of the entire architectonic complex of church Nossa Senhora de Assuncao das Fronteiras, located in the city of Recife [State of Pernambuco]. Besides giving back to the community the space for religious and social celebrations, the church will host a memorial in its facilities, bringing together the entire document and bibliographical collection of the archbishop. BNDES participation is equivalent to 86.5% of the project's total investment of BRL977,400. The resources will be invested both on the external portion, with the construction of a square, a side garden, a large patio in front of the temple and the widening of the sidewalk; and on the internal part, with the restoration of the physical structure of the construction, which includes the walls, covers, part of the window frames and iron fittings and trimmings, flooring, electric and hydraulic installations, besides the painting. The original characteristics of the altar, carved in wood, will also be maintained. During the restoration works, approximately 25 direct and indirect jobs will be created. The memorial will be installed in the side corridors of the church, which will host a permanent exhibition of the archbishop's collection of books and objects. The house in which he lived and died will also be prepared to receive the visitation of the general public, besides working as an information and research center. The Dom Helder Camara Institute is a non-profit association founded by Dom Helder after his retirement as the archbishop of Olinda and Recife in 1984. The entity purposes the dissemination of the ideas that remarked the pastoral life and the institutional and social thoughts of the archbishop, who would have celebrated his one hundredth birthday on Feb. 7, 2009. The Nossa Senhora de Assuncao das Fronteiras church of Henrique Dias Estate, found under government trust by Instituto Nacional do Patrimonio Historico Nacional [National Institute of National Historic Patrimony] in 1949 possesses the baroque style architecture of the 17th century. The place where Igreja das Fronteiras, as it is known, was built is an important link to the history of the Dutch invasion of Pernambuco. The monument remains as the only historical testimony of the estate granted on Sept. 26, 1656 to Henrique Dias for his participation in the Pernambucana Restoration. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007, respectively. BANCO NACIONAL: Grants BRL845,000 Loan to Fundacao Municipal ------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social's board of directors has approved financing for BRL684,000 to Fundacao Municipal de Patrimonio Historico [Local Historical Patrimony Foundation] for the restoration and adaptation of the real estate located in the Historical Center of Sao Luis, in which a school of music will be established for students of the municipality. BNDES' participation will be of 91% of the project's total budget, of BRL751,000, amount approved by the Department of Culture. The investments will be mainly applied to the recovery of the edification's structure, which currently is found in terrible conservation conditions. Fundacao Municipal de Patrimonio Historico purposes the execution of a protection and preservation policy of the cultural patrimony of the city of Sao Luis, through restoration, maintenance, divulgation and revitalization actions of tangible and intangible assets and properties, such as edifications, the city's history, the archeological patrimony and the techniques and arts relevant to cultural interest. The restoration works will be carried out with the goal to preserve the original characteristics of the construction. In order to accomplish that, flooring, walls, roof, ceiling, electric, hydraulics and sanitary installations, besides furniture and dishware will be changed. The most delicate work will be the restoration of the tile facade. The real estate is part of the Architectonic and Landscape Complex of the city of Sao Luis, which is kept under federal government trust since 1974 and is inserted in UNESCO's World Patrimonies' list. It is a two-story house built in the beginning of the 19th Century with style known as pombalina architecture, reference to Marques de Pombal and to the architecture practiced in Portugal of that period. The Local Education Office will be responsible for the real estate after its restoration. With the creation of the school, the band "Amadeus Mozart" created fifteen years ago by students from the local public school district will be directly assisted with adequate room for students and training. Subsequently, the actions of the Local Music School will be decentralized to other local schools. The population assisted by the local public school district of Sao Luis is of approximately 100 thousand students divided into elementary education, high school education, special education and education of young adults and adults. Initially, 50 students from two schools will be assisted. The Historical Center of Sao Luis presents extreme historical, architectonic and artistic relevance, being enormous de potential and the role that the architectonic complex will play within the development context of the cultural tourism activities in the region. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007, respectively. DELPHI CORP: Obtains "Broad-Based" Support on Plan -------------------------------------------------- Delphi Corp. reported the voting results for its First Amended Joint Plan of Reorganization to the U.S. Bankruptcy Court for the Southern District of New York. Voting by classes of creditors and holders of interests, including shareholders, entitled to vote on the Plan illustrates broad-based support for the Plan, the company said in a news release. Of the more than 4,000 ballots cast by general unsecured creditors voting on the Plan, 3,329 or 81% of all voting creditors aggregated across classes voted to accept the Plan -- excluding ballots cast by GM, plaintiffs in the multi-district litigation and holders of interests. Of the total amount voted by all general unsecured creditor classes, 78% or US$2,083,647,859.13 voted to accept the Plan. 100% of the ballots cast in the GM and MDL classes voted to accept the Plan in the respective amounts of US$2.57 billion and US$57.2 million. Of the approximately 217,000,000 shares voted by shareholders, 78% or 170,297,851 shares voted to accept the Plan. The broad-based support expressed by creditors and shareholders of Delphi Corporation and its principal subsidiaries holding its US and global businesses was reflected in the votes of each of the principal segments of the general unsecured creditor class of the Delphi-DAS Debtors (Class 1C). More than 70% of the ballots cast and 70% of the total dollar amount voted by Delphi's senior note claims, TOPrS claims, and all other claims, including trade claims, segments each voted separately to accept the Plan. The company noted that one of the classes in one of the subsidiary debtors (Delphi Diesel Systems Corp. - Class 6C) rejected the Plan because less than two-thirds in amount of the ballots cast supported the Plan. In addition, depending on whether the Bankruptcy Court allows certain other contested ballots to be counted, one additional class in each of two additional subsidiary debtors (Connection System Debtors - Class 3C and Delco Electronics Overseas Corporation - Class 5C) will have rejected the Plan based on a reduction in the percentage of dollar amounts voted in favor of the Plan below the statutory threshold. Although no assurances can be made, Delphi believes that the Plan satisfies the requirements of the Bankruptcy Code and is confirmable notwithstanding the rejection of the Plan by certain classes. A confirmation hearing on the Plan is scheduled to begin on Jan. 17, 2008. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: 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. 107; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DRESSER-RAND: Taps Kronos for Workforce Management Services ----------------------------------------------------------- Dresser-Rand Group Inc. has selected Kronos for Manufacturing from Kronos(R) Incorporated in France, Germany, and the United States. By providing visibility into multi-site global operations, Kronos is enabling Dresser Rand to effectively manage its workforce to improve efficiencies, reduce costs, and manage compliance with labor regulations. "We selected Kronos because it has the best capabilities for managing a global workforce," said Jenine Bogrand, IT manager at Dresser-Rand. "We see great value in Kronos' workforce management expertise, flexible product offering, global business know-how, and understanding of the unique needs of the manufacturing industry." Prior to Kronos, Dresser-Rand suffered from a lack of consistency with timekeeping systems around the world. Multiple, redundant paper-based spreadsheets resulted in inaccuracies, and an inability to effectively track operator labor activities and production on the shop floor. By automating with an integrated solution from Kronos, Dresser-Rand is now able to accurately report overtime and flex time, consistently deliver operational metrics, and uniformly apply pay rules. "With hundreds of unions and potentially thousands of unique pay rules to accommodate, standardizing time and attendance is seemingly an insurmountable challenge for global manufacturers," said Gregg Gordon, global practice leader for manufacturing at Kronos. "Leading global manufacturers such as Dresser-Rand realize that the benefits outweigh the challenge. These organizations are standardizing on Kronos for their global workforces." About Dresser-Rand Dresser-Rand Group Inc. (NYSE: DRC) is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. It operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 24 service and support centers covering 105 countries. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to the US$500 million senior secured revolving credit facility due 2012 of Dresser-Rand Group Inc. (BB-/Stable/--) EL PASO: Unit Enters Into Agreements Over Non-Core Properties ------------------------------------------------------------- El Paso Corporation's wholly owned subsidiary, El Paso Exploration & Production Company, has entered into three purchase and sale agreements for the sale of non-core properties in its Onshore and Texas Gulf Coast regions. The aggregate sales price for the properties is US$517 million, subject to customary adjustments. As of Dec. 31, 2007, the company had an estimated 191 billion cubic feet equivalent (Bcfe) of proved reserves associated with the properties, with roughly half coming from each region. The December 2007 average production for Texas Gulf Coast properties was 39 MMcfe/D, while the Onshore properties produced 17 MMcfe/D. "We are pleased to complete another important step in the high grading of our portfolio," said El Paso Exploration & Production Co. president, Brent Smolik. "We expect these sales, together with our 2007 acquisitions, to meaningfully improve the efficiency of our operations, the depth of our inventory, and our future growth potential. They will create greater geographic focus within our Onshore and Texas Gulf Coast operating regions and remove a number of relatively high-cost properties." Closing of each of the transactions is subject to customary conditions and is expected to occur during the first quarter 2008. Proceeds will be used to repay debt incurred with the acquisition of Peoples Energy Production Company in September 2007. El Paso is also negotiating with prospective bidders for the sale of selected non-core Gulf of Mexico properties. Jefferies Randall & Dewey acted as financial advisor to El Paso Corp. About El Paso Corp. Headquartered in Houston, Texas, El Paso Corporation (NYSE: EP) -- http://www.elpaso.com/-- is an energy company that provides natural gas and related energy products. The company owns North America's interstate pipeline system, which has approximately 55,500 miles of pipe. It also owns approximately 470 billion cubic feet of storage capacity and a liquefied natural gas import facility with 806 million cubic feet of daily base load send out capacity. El Paso's exploration and production business is focused on the exploration for and the acquisition, development and production of natural gas, oil and natural gas liquids in the United States, Brazil and Egypt. It operates in three business segments: Pipelines, Exploration and Production and Marketing. It also has a Power segment, which holds its remaining interests in international power plants in Brazil, Asia and Central America. Southern Natural Gas Company's business consists of the interstate transportation and storage of natural gas and LNG terminal operations. Colorado Interstate Gas Company's business consists of the interstate transportation, storage and processing of natural gas. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 20, 2007, Standard & Poor's Ratings Services affirmed its 'BB' corporate credit ratings on El Paso Corp. and subsidiaries. S&P said the outlook remains positive. FIAT SPA: Buys Back 3.86 Million Ordinary Shares ------------------------------------------------ Fiat S.p.A. purchased 38,609 Fiat ordinary shares at the average price of EUR16.4254 including fees on Jan. 11, 2008, within the frame of the buy back program announced on April 5, 2007. On Jan. 10, 2008, the company bought 3.851 million Fiat ordinary shares at the average price of EUR16.1705 including fees. From the start of the buy back program on April 24, 2007, the total number of shares purchased by Fiat amounts to 31.54 million for a total invested amount of EUR603.4 million. Share Repurchase Program At a stockholders meeting on April 5, 2007, Fiat authorized the purchase of treasury shares from the aggregate three classes of stock, which shall not exceed in the aggregate 10% of the capital stock and maximum amount of EUR1.4 billion. The authorization will last 18 months from April 5, 2007, and will therefore expire on Oct. 5, 2008. The buy back will be carried out on the regulated markets as: -- it will end on April 30, 2008, or once the maximum amount of EUR1.4 billion or a number of shares equal to 10% of the capital stock is reached; -- the maximum purchase price will not exceed 10% of the reference price reported on the stock exchange on the day before the purchase is made; and -- the maximum number of shares purchased daily will not exceed 20% of the total daily trading volume for each class of shares. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As of Dec. 10, 2007, Fiat S.p.A. Carries Moody's long-term corporate family rating of Ba1 and probability of default rating of Ba1 with positive outlook. The company also carries Standard & Poor's BB+ on long-term foreign issuer credit rating, BB+ on long-term local issuer credit rating, B on short-term foreign issuer and local issuer credit ratings. FIAT SPA: Magneti Unit Forms Joint Venture with Sumi Motherson -------------------------------------------------------------- Fiat S.p.A.'s Magneti Marelli S.p.A. and Sumi Motherson Group have signed an agreement for the creation of a joint venture in India aimed at the production of automotive components in the area of lighting and engine control systems. According to the provisions of the agreement, Magneti Marelli Holding and Sumi Motherson Group, through its holding company Samvardhana Motherson Finance Limited, will each own a 50% interest in the joint venture. The industrial facilities will be located in the areas of New Delhi and Pune and will concentrate on the production and assembly of intake manifolds for engines and headlamps and rear lamps for automobiles. The joint venture's activities will target the Indian market and the local and international carmakers operating in the territory. "The joint venture with Sumi Motherson Group represents our second important agreement signed in India within a few months, and it confirms our strategy to be directly present on the automotive markets featuring a high growth rate, at the service of our global automotive clients and of local companies," Eugenio Razelli Magneti Marelli CEO disclosed. "Thanks to a solid partner like Sumi Motherson, in addition to further expanding our offer in the powertrain sector, we will also be able to play an important role in India in the area of lighting systems for motor vehicle. Shared investments with local partnerships facilitate rapid growth in fast developing markets. In those markets, that are becoming more and more global, the need for technology is growing rapidly," Mr. Razelli added. "The joint venture with Magneti Marelli will further strengthen our existing relations in the Automotive Industry. We are continuously exploring new areas and niches where we can add value by acquiring new technologies. We firmly believe that we will be able to provide the latest and world class products to our customers in the areas of lighting and engine control systems. This joint venture will further enhance our philosophy of creating more value per car," V.C. Sehgal Sumi Motherson chairman disclosed. Magneti Marelli, a company belonging to the Fiat Group, designs, produces and markets advanced systems and components for motor vehicles. It has 45 production facilities and 25,000 employees and a turnover of EUR4.5 billion in 2006. About Fiat S.p.A. Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. It also manufactures, for use by the company's automotive sectors and for sale to third parties, other automotive-related products and systems, principally power trains (engines and transmissions), components, metallurgical products and production systems. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As of Dec. 10, 2007, Fiat S.p.A. Carries Moody's long-term corporate family rating of Ba1 and probability of default rating of Ba1 with positive outlook. The company also carries Standard & Poor's BB+ on long-term foreign issuer credit rating, BB+ on long-term local issuer credit rating, B on short-term foreign issuer and local issuer credit ratings. HYLAND SOFTWARE: Denali Union Uses OnBase Technology in Policy -------------------------------------------------------------- Hyland Software Inc. has disclosed that Denali Alaskan Federal Credit Union is using OnBase to facilitate image capture and remote delivery of deposits in accordance with Check 21 policy. The use of OnBase has also saved the credit union more than US$96,000 per year for check encoding and transportation. Denali Alaskan Federal Credit Union, a not-for-profit financial institution based in Anchorage, Alaska, with more than US$360 million in assets and serving more than 50,000 members in 13 branches, serves the largest state in the union. With geographically disbursed branches, it was difficult to manually process checks in a timely manner. Previously, the transportation of checks from a branch to the nearest Federal Reserve Bank could take up to a week or more. "The old process was laborious, time-consuming, and inefficient -- there's no two ways about it," said Denali Alaskan Federal Credit Union vice president of system operations, John Layton. "By using OnBase's branch capture module, we have been able to increase our income, which allows 96 percent of deposits to be available the next morning and experience a 6-month ROI without having to increase our database space or personnel." Denali has implemented OnBase in its back office operations, with plans to expand the implementation to include merchant capture, ATM deposits and branch kiosks. "Most vendors require credit unions to work around software limitations," added Layton. "OnBase is different because the software can grow with a credit union to create a truly individualized solution. There's no 'one size fits all' mentality." "OnBase's unique architecture allows credit unions to tailor capture functionality to individual business processes across their enterprise," said Hyland Software's director of Financial Services, Jason King. "Additionally, OnBase's branch capture solution enables better float management and earlier exception handling, reduces dependence on couriers from branch or depositor to processing centers and provides increased security by reducing risk of lost or stolen paper by digitally storing items." About Denali Alaskan Federal Credit Union Denali Alaskan Federal Credit Union -- http://www.denalifcu.org -- is a member-owned, not-for-profit financial cooperative. Headquartered in Anchorage, Denali Alaskan is the state's third largest Credit Union, with over US$360 million in assets and 50,000 members. The credit union's 13 branches are located in Anchorage, Eagle River, Fairbanks, Juneau and Wasilla; member services are also provided via telephone and Internet access points across the globe. About Hyland Software Headquartered in Westlake, Ohio, Hyland Software, Inc. is a provider of enterprise content management software, focusing on mid-tier organizations, as well as divisions of large organizations. The company generated revenues of US$89 million for the LTM ended June 30, 2007. Hyland markets OnBase throughout North America, Brazil, Europe and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 7, 2007, Standard & Poor's Rating Services has raised its corporate credit rating on Westlake, Ohio-based Hyland Software Inc. to 'B+' from 'B', following the close of the company's secured credit facilities, reflecting revised and reduced debt levels. S&P said the outlook is stable. JAPAN AIRLINES: May See Operating Profit of JPY48BB for FY08 ------------------------------------------------------------ Japan Airlines International Co., Ltd. posted an operating profit of JPY54.5 billion for the April-November period, against last year's loss of JPY14.8 billion, Jiji Press reports. Despite the impact of higher fuel prices, JAL countered these with a reduction in personnel costs an the closing of unprofitable routes, relates Jiji Press. According to Jiji Press, the strong eight-month performance consolidates the path for the struggling group to swing into the black in its 9-month period ended December 30, 2007, the first profit in three years for the same period. JAL, states the report, is close to achieving its forecast of a consolidated operating profit of JPY48 billion for the full business year to March 2008. 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. KENDLE INT'L: Hires Ross Horsburgh to Lead Asia/Pacific Unit ------------------------------------------------------------ Dr. Ross J. Horsburgh has joined the Kendle International Inc. as Vice President, Global Clinical Development - Asia/Pacific. In this role, he will lead the company's overall expansion in Asia/Pacific and will provide strategic oversight for its Phase II-III operations in the region, including Melbourne and Sydney, Australia; New Delhi, India; and Beijing, China. In all, Dr. Horsburgh brings 20 years of CRO and pharmaceutical industry experience to the company. "With a population base of nearly 4.0 billion and R&D spending expected to reach US$20 billion by 2013, Asia/Pacific is recognized by our customers as one of the more dynamic regions in which to conduct clinical trials," said Dr. Kendle. "Dr. Horsburgh's extensive clinical development experience and familiarity with the Asia/Pacific region will benefit both our customers and Kendle as we execute on our growth strategy for this pivotal market." Prior to joining Kendle, Dr. Horsburgh was Regional Medical Director, Asia Pacific for AstraZeneca. In this role, he assembled and led a team of 200 individuals across 13 markets. He also served as head of AstraZeneca's internal clinical research organization, responsible for quality assurance, drug safety, talent management and development, input of the Asian view into global product design, and ultimately, submissions to the U.S. Food and Drug Administration and the European Medicines Agency. Prior to AstraZeneca, Dr. Horsburgh held positions with Ciba and the Auckland Hospital Board. He earned his medical degree from the University of Auckland and his master's and bachelor's degrees from the University of Canterbury. Dr. Horsburgh will report directly to Dr. Kendle for Asia/Pacific expansion and to Martha Feller, PhD, Senior Vice President, Global Clinical Development for Phase II-III operations. He will be based in Singapore. About Kendle Based in Cincinnati, Kendle International Inc. (Nasdaq: KNDL) -- http://www.kendle.com/-- is a global clinical research organization and provides Phase II-IV clinical development services worldwide. The company's global clinical development business is focused on five regions - North America, Europe, Asia/Pacific, Africa and Latin America including Brazil. * *