T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, January 22, 2008, Vol. 8, Issue 15 Headlines A R G E N T I N A DELTA AIR: Commences Merger Negotiations with Northwest & UAL LOGISTICA DIGITAL: Trustee Verifies Claims Until March 14 PETROBRAS ENERGIA: Discloses Facts Relating to Fin'l Statements PIET MONDRIAN: Trustee Verifies Proofs of Claim Until March 14 PROVINCIA SEGUROS: Moody's Changes B2 Rating's Outlook to Pos. SIDECO AMERICANA: Fitch Confims B+(arg) Rating on US$13.5MM Debt YPF SA: Fitch Affirms Ratings Over Possible Petersen Purchase B A H A M A S HARRAH'S ENTERTAINMENT: Delists Common Stock After Merger Closes HARRAH'S ENTERTAINMENT: Buyout Cues Fitch To Withdraw Ratings TEEKAY CORP: Earns US$17 Million in 2007 Third Quarter B E R M U D A CONCORD RE: Bank Loan Repayment Prompts S&P's Rating Withdrawal SEA CONTAINERS: Earns US$10,644,110 in Month Ended November 30 SEA CONTAINERS: SeaCon Services Files November 2007 Report B R A Z I L AMERICAN AIRLINES: Names Robert Friedman as Marketing President FIDC INDUSTRIA: Moody's Assigns (P)Ba1 Global Currency Rating DELPHI CORP: Gets US$44.2MM Bearing Biz Bid from ND Acquisition HUGHES NETWORK: Provides Broadband Satellite Services in Brazil JAPAN AIRLINES: Weighs Business Impact of Boeing Delivery Delay PARANA BANCO: 2007 Adjusted Net Income Reaches BRL113.5 Million PARANA BANCO: Gives 4.57 Mil. Non-Voting Shares To Advent Int'l PROPEX INC: Case Summary & 30 Largest Unsecured Creditors PROPEX INC: Files Chapter 11 Protection; To Continue Operations TAM SA: Orders 40 New A320 Aircrafts to be Delivered by 2013 TELE NORTE: Anatel Supports Way TV Acquisition C A Y M A N I S L A N D S ARBOR I: Proofs of Claim Filing Is Until Jan. 24 ASIA IG: Proofs of Claim Filing Deadline Is Jan. 24 BEGONIA LIMITED: Sets Final Shareholders Meeting for Jan. 24 BLUEPOINT CORP: Proofs of Claim Filing Is Until Jan. 24 CHIMES FINANCE: Proofs of Claim Filing Deadline Is Jan. 24 FLUTE FINANCE: Proofs of Claim Filing Is Until Jan. 24 IH INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 24 MARNAR FINANCE: Proofs of Claim Filing Is Until Jan. 24 MPJ EQUITY: Sets Final Shareholders Meeting for Jan. 24 OAK CAPITAL: Proofs of Claim Filing Deadline Is Jan. 24 ORICO ARTEMIS: Proofs of Claim Filing Ends on Jan. 24 OTEMACHI EQUITY: Will Hold Final Shareholders Meeting on Jan. 24 PALM CAPITAL: Proofs of Claim Filing Is Until Jan. 24 PARMALAT SPA: Creditors Convert Warrants for 61,626 Shares PARMALAT SPA: Reaches EUR310,000,000 Settlement Pact with Intesa RC INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 24 SAKURA LTD: Proofs of Claim Filing Deadline Is Jan. 24 SCHOONER FINANCE: Proofs of Claim Filing Is Until Jan. 24 SEQUIOA CAPITAL: Proofs of Claim Filing Is Until Jan. 24 C H I L E BANCO DE LA NACION: Fitch Cuts Rating to BB(chl) INVENSYS PLC: Fitch Upgrades Issuer Default Ratings to BB QUEBECOR WORLD: Chapter 11 Filing Cues S&P to Cut Rating to D C O L O M B I A BANCOLOMBIA: Says Loan Growth to Decelerate to 17.9% This Year ECOPETROL: Says Tenax-1 Exploratory Well at 12,177 Feet Deep C O S T A R I C A SENSIENT TECH: Declares US$0.18 Per Share Quarterly Dividend G U Y A N A DIGICEL LTD: Reaches More Than Six Million Customers in 2007 J A M A I C A NATIONAL COM'L: Cash Plus Investors Picket at Bank's Premises M E X I C O ADVANCED MICRO: Posts US$1.772-Bln Net Loss in 2007 4th Quarter AMERICAN AXLE: 558 UAW Workers Accept Separation Deal AVNET INC: Works with Xilinx to Build Training Lab in Singapore BAUSCH & LOMB: Signs Definitive Pact Acquiring eyeonics BALLY TOTAL: Levine Pursues Common Law Fraud Claims in Illinois CLEAR CHANNEL: Extends Key Dates for Senior Notes Tender Offer N E T H E R L A N D S A N T I L L E S JETBLUE AIRWAYS: Launches New York-St Maarten Daily Flights N I C A R A G U A * NICARAGUA: Getting Cuban Generation Units P U E R T O R I C O PEP BOYS: Moody's Reviews Ratings for Possible Downgrade ROYAL CARIBBEAN: Vicki Freed Joins as Sales Sr. Vice President V E N E Z U E L A CHRYSLER LLC: Christine Cortez To Quit as Senior Vice President INDUSTRIAS METALURGICAS: Gets Edelca Tocoma Hydro Contract PETROLEOS DE VENEZUELA: Restarts Amuay & Cardon Plants * VENEZUELA: Bringing Cuban Generation Units to Nicaragua * VENEZUELA: Hugo Chavez Threatens To Seize Private Banks * Large Companies with Insolvent Balance Sheets - - - - - ================= A R G E N T I N A ================= DELTA AIR: Commences Merger Negotiations with Northwest & UAL ------------------------------------------------------------- Delta Air Lines Inc. obtained approval from its board of directors on Jan. 11, 2007, to engage in formal merger talks with both Northwest Airlines Corp. and UAL Corp., reports The Wall Street Journal. WSJ says Delta, which is in the early stages of discussions with both Northwest and UAL, hopes to reach an agreement with one of them over the next two weeks. Delta is anticipating a deal announcement as early as mid- February following Delta's board meeting scheduled early in the month, says the report. "A special committee of the board is working with management to explore strategic options, including potential consolidation transactions. However, we are not providing updates, while this process is ongoing," Delta spokeswoman Betsy Talton, said. Northwest and UAL declined to comment. A UAL-Delta or a Northwest-Delta merger, which would likely be a stock for stock transaction, would make Delta the largest airline in the world, according to reports. Experts in the airline industry, however, believe that a Northwest-Delta merger is more likely as Delta's Chief Executive Richard Anderson was previously CEO at Northwest, and is already well acquainted with Northwest's operations. Senator Johnny Isakson, a Georgia Republican, said that Mr. Anderson told him in December that if there's a merger or an acquisition, Delta would keep its name and Atlanta hub, Bloomberg News reports. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05- 17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. (Delta Air Lines Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in yesterday's Troubled Company Reporter, according to Standard and Poor's, media reports that Delta Air Lines Inc. (B/Positive/--) entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) 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. LOGISTICA DIGITAL: Trustee Verifies Claims Until March 14 --------------------------------------------------------- Carlos D. Ayuso, the court-appointed trustee for Logistica Digital S.A.'s reorganization proceeding, verifies creditors' proofs of claim until March 14, 2008. Mr. Ayuso will present the validated claims in court as individual reports on April 30, 2008. The National Commercial Court of First Instance in Buenos Aires 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 Logistica Digital 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 Logistica Digital's accounting and banking records will be submitted in court on June 12, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Dec. 2, 2008. The debtor can be reached at: Logistica Digital S.A. Laprida 1728 Buenos Aires, Argentina The trustee can be reached at: Carlos D. Ayuso Tucuman 1445 Buenos Aires, Argentina PETROBRAS ENERGIA: Discloses Facts Relating to Fin'l Statements --------------------------------------------------------------- Petrobras Energia Participaciones S.A., controlling company of Petrobras Energia S.A., reported the following relevant facts relating to the financial statements as of Dec. 31, 2007: 1) Estimated effects derived from the Amendment to Ecuador's Hydrocarbons Law Within the framework of the new legislation that regulates the exploitation of hydrocarbons in Ecuador, in October 2007 the Ecuadorian Government issued an Amendment to the Regulations for the Application of Law 42-2006, amendatory to the Hydrocarbons Law, under which as from Oct. 18, 2007 the State's share in extraordinary revenues from crude oil price increases was increased to 99% while the oil companies' share was reduced to 1%. Given the significant adverse impact derived from the beforementioned regulatory change, an impairment charge of approximately ARG750 million is estimated to be recorded in the financial statements as of Dec. 31, 2007 in order to adjust the book value of assets in Ecuador to their recoverable value. Meetings are currently being held between the company representatives and Ecuadorian authorities in order to integrate the Ecuadorian Government's objectives sought through amendment of Law 42 with an economic profitability framework for the company's operations. 2) Estimated effects derived from the company's businesses in Venezuela Within the framework of migration of operating contracts to Mixed Companies in Venezuela, in 2006 the company received from Corporacion Venezolana de Petroleo a non- bearing interest, divisible and transferable credit for approximately US$88.5 million, which may be used for the payment of acquisition bonds within the framework of any new mixed company project for the development of oil exploration and production activities or license for the development of gas exploration and production operations in Venezuela. Since to the date hereof no projects have been materialized as from reception of the beforementioned credit, efforts made for the transfer thereof to third parties were not successful and no other applicable alternative is anticipated, a write-down of approximately ARG$181 million is estimated to be recorded in the Financial Statements as of Dec. 31, 2007 in relation to the above mentioned credit. 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- PIET MONDRIAN: Trustee Verifies Proofs of Claim Until March 14 -------------------------------------------------------------- The court-appointed trustee for Piet Mondrian S.R.L.'s reorganization proceeding verifies creditors' proofs of claim until March 14, 2008. Infobae didn't state the name of the trustee. The trustee will present the validated claims in court as individual reports on April 25, 2008. The National Commercial Court of First Instance in San Miguel de Tucuman, Tucuman, 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 Piet Mondrian 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 Piet Mondrian's accounting and banking records will be submitted in court on June 9, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Dec. 19, 2008. The debtor can be reached at: Piet Mondrian S.R.L. San Martin 633, San Miguel de Tucuman Tucuman, Argentina PROVINCIA SEGUROS: Moody's Changes B2 Rating's Outlook to Pos. -------------------------------------------------------------- Moody's Investors Service has affirmed the B2 global local- currency insurance financial strength rating of Provincia Seguros S.A. and changed its outlook to positive from stable. In the same rating action, the rating agency placed Provincia Seguros' A1.ar IFSR on the Argentine national scale under review for possible upgrade. Moody's explained that the affirmation of Provincia Seguros' global rating reflects several factors: 1) the integration of the company with both Banco Provincia de Buenos Aires -- the second largest bank in the country -- and with the Province of Buenos Aires itself; 2) its adequate market position in the Argentine P&C industry and 3) its access to diversified distribution channels among other factors. The rating agency said that the company holds a 3.2% portion of the domestic P&C market, as well as a 4% share in the highly competitive motor business. Provincia Seguros distributes its insurance products through alternative commercial channels, including banks (mainly Banco Provincia de Buenos Aires), direct distribution, and local agents. This model has enabled management to reduce its underwriting expenses to a level lower than many of its peers. In addition, Moody's believes that the ownership structure and close integration with its ultimate shareholders -- Banco Provincia de Buenos Aires and The Province of Buenos Aires -- is a considerable long-term competitive advantage. Moody's said that offsetting these positive factors are the company's low premium diversification and sustained underwriting losses. In addition, significant risks to the ratings involve Provincia Seguros' high exposure to below-investment grade assets, a weak risk-adjusted capital adequacy, and a significant country-specific macroeconomic risk. The positive outlook reflects Moody's favorable opinion about the positive trends in the company's financial and overall risk profiles, as seen by its good business growth, its declining underwriting leverage, and the improvement in profitability driven by a declining combined ratio. Moody's added that Provincia Seguros' gross underwriting leverage fell from 7.9 in 2003 to 6.2 as of the latest fiscal year ended June 30, 2007, whereas many of its peers posted an increase in this metric. The company also lowered its combined ratio to 111% from 130% due to a more balanced book of business and better risk selection. Given the positive outlook on Provincia Seguros' B2 global local currency IFS rating, Moody's placed the company's A1.ar national scale IFS rating on review for possible upgrade since the B2 global local currency rating can be mapped to either an Aa3.ar, A1.ar, or A2.ar national scale, and the company is currently viewed as a relatively strong B2 insurer. The rating agency said that the review for possible upgrade will focus on these factors: 1) Provincia Seguros's first-half results in terms of underwriting and financial incomes; 2) its capital surplus/solvency margins; 3) its business diversification compared with peers'; and 4) its leverage profile and dividend policy. Based in Buenos Aires, Argentina, Provincia Seguros reported a net income of ARS7 million during the first quarter of 2007/2008 fiscal year, ended Sept. 30 2007. This income comprised a gain of ARS3.9 million from underwriting and a ARS6.7 million jump in net financial investment returns. The company's shareholders' equity increased to almost ARS192 million, which was up 3.8% from ARS185 million at the end of the fiscal year on June 30, 2007. SIDECO AMERICANA: Fitch Confims B+(arg) Rating on US$13.5MM Debt ---------------------------------------------------------------- Fitch confirmo en la Categoria B+(arg) las Obligaciones Negociables no Garantizadas emitidas por Sideco Americana S.A., por un monto total de US$13.5 millones. La calificacion asignada se sustenta en el elevado endeudamiento que presenta Sideco a nivel no consolidado, con relacion a su limitado flujo de fondos. Dado que la compania no cuenta con actividad propia, la calificacion contempla la incertidumbre implicitamente asociada a su generacion de fondos, que esta determinada por los dividendos que pueda recibir de sus sociedades vinculadas y/o controladas, y de la venta de activos. La compania se encuentra en un proceso de reestructuracion de sus negocios, a partir de la decision de salir del segmento de construccion y desarrollos inmobiliarios en Argentina mediante la venta, en marzo'07, de sus participaciones en IECSA y Creaurban. A esto se le suma la venta reciente de su participacion en Rodovias das Cataratas, concesionaria de una autopista en Brasil. Luego de estas ventas, los activos mas importantes de Sideco se conforman de su participacion en el negocio de ecologia ambiental en Brasil, asi como en transporte de energia electrica en Argentina. La nueva estrategia del grupo se basa en potenciar sus negocios en las areas de logistica, transporte y servicios, a su vez que se encuentra analizando nuevos proyectos, algunos de los cuales se darian a partir de alianzas que esta encarando con empresas chinas. Por lo tanto, Fitch monitoreara la estrategia de negocios que encare el grupo y su impacto en el perfil crediticio de Sideco. Las ventas de IECSA y Creaurban no tuvieron un impacto negativo en la calificacion de la compania, debido a que el saldo a cobrar por estas ventas (US$46 million) esta calzado en su mayor parte con los servicios de deuda que Sideco debe afrontar en el marco del Acuerdo Preventivo Extrajudicial. El credito por la venta de IECSA y Creaurban es con Angelo Calcaterra. Si bien la familia Calcaterra posee otros activos, luego de esta operacion las empresas adquiridas se encontraran entre sus activos principales. Al analizar la posibilidad de que el repago del credito por la venta provengan de los flujos libres que generen IECSA y Creaurban, Fitch considera volatil la capacidad de generacion de fondos de estas companias y ajustada su capacidad de pago. A su vez, esta operacion significo el cobro al contado de US$ 15 MM que podria destinarse a nuevos negocios. La liquidez de la compania se incrementara una vez que cobre los fondos por la venta de Rodovias. Por su parte, se consideran limitados los flujos que podria recibir Sideco de sus subsidiarias y/o vinculadas, a partir de la venta de sus principales activos. A septiembre 2007, la deuda financiera total en cabeza de Sideco fue de US$65 million (35% de la deuda consolidada). La misma incluye US$20.6 million con el Banco Nacion que se encuentran garantizados con titulos publicos nacionales de calidad autoliquidables. La deuda de Sideco proviene del APE y cuenta con vencimientos escalonados en el largo plazo. Sideco es un conglomerado dedicado a la generacion y gerenciamiento de negocios en el area de servicios publicos e infraestructura, principalmente en Brasil y Argentina. Entre sus principales negocios se encuentran el de ecologia urbana e industrial, el transporte de energia electrica y actividades relacionadas con la logistica, el transporte y la prestacion de servicios. El 99.61% del paquete accionario se encuentra en manos de Socma Americana S.A., controlada por la familia Macri. YPF SA: Fitch Affirms Ratings Over Possible Petersen Purchase ------------------------------------------------------------- Fitch Ratings has affirmed YPF S.A.'s 'BB+' and 'BBB-' foreign- and local-currency Issuer Default Ratings respectively, following the announced sale of 14.9% of the company to Petersen Energia for US$2.235 billion. Fitch has also affirmed its 'AAA(arg)' national scale rating. The rating outlook is stable. The affirmations are based on the expectation that the transaction will not result in a significant change in the managerial direction, operational strategy and leverage of YPF. While the transaction has the potential to result in pressure to increase the dividend payout to shareholders to help service the debt at the Petersen Group used to acquire its stake, YPF will continue to have the financial flexibility to cope with a more aggressive dividend policy, its existing investment program and some small amount of additional debt given its strong financial profile and a dominant domestic market share. The entrance of a local shareholder could also be small positive in terms of the company's relationship with both the local authorities and the business community. The company's foreign currency rating 'BB' is rated above the country ceiling rating of 'B+' due to the combination of the company's significant exports, low leverage and ownership by financially strong Repsol YPF. While the rating is above the country ceiling, the company's foreign currency rating remains linked to the Republic of Argentina's credit profile as government interference and political risk continue to be high. The ratings could be pressured in the event of significant increase in debt levels without associated increases in EBITDA over the near term, and a loss of control or implicit support from Repsol YPF. Following this initial transaction Repsol YPF (rated BBB+ by Fitch) will reduce its participation in YPF (currently 99%) while maintaining a controlling stake. Initially Repsol will sell 14.9% to Petersen Energia and the Petersen Group will have an option to acquire an additional 10.1% through another related company within the next four years. Additionally Petersen Energia and Repsol have agreed that YPF will make an IPO for approximately 20% of its equity, after which Repsol's stake in YPF would be reduced to approximately 51%. Although Repsol will maintain a controlling stake, YPF debt is non-recourse to Repsol YPF. Fitch will monitor the ratings as the proposed transaction is formalized, the new business plan is announced, and its impact on the operations and financial strategy of YPF is evaluated. Headquartered in Buenos Aires, Argentina, YPF S.A. is an integrated oil and gas company engaged in the exploration, development and production of oil and gas, natural gas and electricity-generation activities (upstream), the refining, marketing, transportation and distribution of oil and a range of petroleum products, petroleum derivatives, petrochemicals and liquid petroleum gas (downstream). The company is a subsidiary of Repsol YPF, S.A., a Spanish company engaged in oil exploration and refining, which holds 99.04% of its shares. Its international operations are conducted through its subsidiaries, YPF International S.A. and YPF Holdings Inc. ============= B A H A M A S ============= HARRAH'S ENTERTAINMENT: Delists Common Stock After Merger Closes ---------------------------------------------------------------- Harrah's Entertainment Inc. notified the New York Stock Exchange, the Philadelphia Stock Exchange and the Chicago Stock Exchange of its intent to delist its common stock, par value US$0.10 per share, from the Exchanges immediately following the consummation of the transactions contemplated by the agreement and plan of merger dated as of Dec. 19, 2006, by and among Harrah's Entertainment, Hamlet Holdings LLC and Hamlet Merger Inc. At the effective time of the merger, each issued and outstanding share of Harrah's common stock (other than shares of Harrah's common stock owned by Hamlet Holdings LLC, Hamlet Merger Inc. or any subsidiary of Hamlet Holdings LLC or Harrah's or held in the treasury of Harrah's) shall be canceled and converted into the right to receive US$90.00 in cash, without interest. As a result of the merger, Harrah's will cease to be a publicly- traded company. Subject to customary closing conditions, Harrah's expects to close the transaction on Jan. 28, 2008. Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc. (NYSE: HET) -- http://www.harrahs.com/-- has grown through development of new properties, expansions and acquisitions, and now owns or manages casino resorts on four continents and hosts over 100 million visitors per year. The company's properties operate under the Harrah's, Caesars and Horseshoe brand names; Harrah's also owns the London Clubs International family of casinos and the World Series of Poker. Harrah's also owns the London Clubs International family of casinos. In January, it signed a joint venture agreement with Baha Mar Resorts Ltd. to operate a resort in Bahamas. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Moody's Investor Service has assigned a B2 Corporate FamilyRating and Speculative Grade Liquidity Rating of SGL-3 to Harrah's Entertainment, Inc. Moody's also assigned ratings to the following new debt to be issued by Harrah's Operating Company, Inc.: senior secured guaranteed bank revolving credit facility at Ba2, senior secured guaranteed term loans at Ba2, and senior unsecured guaranteed notes at B3. HARRAH'S ENTERTAINMENT: Buyout Cues Fitch To Withdraw Ratings ------------------------------------------------------------- Fitch Ratings has withdrawn these ratings for Harrah's Entertainment, Inc. and Harrah's Operating Co.: -- HET Issuer Default Rating 'BB+'; -- HOC Issuer Default Rating 'BB+'; -- Senior Unsecured bank credit facilities 'BB+'; -- Senior Unsecured notes 'BB+' -- Senior Unsecured subordinated notes 'BB-' Based on publicly available information regarding the proforma capital structure for the leveraged buyout by Apollo Management LP and Texas Pacific Group, Fitch believes that HET's IDR would be rated no higher than 'B' and the existing US$4.6 billion of unsecured debt that is being rolled over in the transaction would be rated no higher than 'CCC+'. However, Fitch is withdrawing its ratings because it believes that disclosure of financial information is inadequate for Fitch to maintain ratings or rate the LBO transaction, which is valued at roughly US$31.2 billion including sponsor equity and rollover debt. Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc. (NYSE: HET) -- http://www.harrahs.com/-- has grown through development of new properties, expansions and acquisitions, and now owns or manages casino resorts on four continents and hosts over 100 million visitors per year. The company's properties operate under the Harrah's, Caesars and Horseshoe brand names; Harrah's also owns the London Clubs International family of casinos and the World Series of Poker. Harrah's also owns the London Clubs International family of casinos. In January, it signed a joint venture agreement with Baha Mar Resorts Ltd. to operate a resort in Bahamas. TEEKAY CORP: Earns US$17 Million in 2007 Third Quarter ------------------------------------------------------ Teekay Corporation reported net income of US$17.0 million on revenues of US$606.8 million for the quarter ended Sept. 30, 2007, compared to net income of US$79.8 million on revenues of US$477.7 million for the quarter ended Sept. 30, 2006. Net revenues for the third quarter of 2007 increased to US$462.3 million from US$344.3 million for the same period in 2006, and income from vessel operations decreased to US$80.6 million from US$105.0 million. Net revenues, defined as revenues less voyage expenses, is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Net income for the nine months ended Sept. 30, 2007 was US$171.8 million, US$201.9 million for the same period last year. Net revenues for the nine months ended Sept. 30, 2007, increased to US$1.4 billion from US$1.0 billion for the same period in 2006, and income from vessel operations increased to US$323.7 million from US$316.7 million. Share Repurchase Program Since Aug. 1, 2007, the company has repurchased 978,400 shares of its common stock at an average price of US$54.80 per share, resulting in US$44.3 million remaining under the existing share repurchase authorization. As at Sept. 30, 2007, the company had 73.3 million common shares issued and outstanding. OMI Acquisition Update On Aug. 1, 2007, most of the assets from the joint acquisition of OMI Corporation were divided equally between Teekay and A/S Dampskibsselskabet (Torm). Through this acquisition, Teekay acquired seven Suezmax tankers, four Medium Range product tankers and four Handysize product tankers. Teekay also assumed OMI's in-charters of a further six Suezmax tankers and OMI's third party asset management business, the Gemini pool. Teekay and Torm will continue to hold two Medium Range product tankers jointly in OMI, as well as two Handysize product tanker newbuildings scheduled to deliver in 2009. The parties intend to divide these remaining assets equally in due course. Teekay has consolidated the results of the vessels it acquired from OMI effective Aug. 1, 2007. For the period of July 1 to July 31, 2007, OMI's results were accounted for using the equity method of accounting. At Sept. 30, 2007, the company had total liquidity of US$1.9 billion (excluding debt related to capital commitments), comprised of US$297 million in cash and cash equivalents and US$1.6 billion in undrawn credit facilities. Balance Sheet At Sept. 30, 2007, the company's consolidated balance sheet showed US$9.63 billion in total assets, US$6.43 billion in total liabilities, US$513.6 million in minority interest, and US$2.68 billion in total stockholders' equity. About Teekay Corp. Headquartered in Nassau, Bahamas, Teekay Corporation (NYSE: TK) -- http://www.teekay.com/-- transports more than 10 percent of the world's seaborne oil, has built a significant presence in the liquefied natural gas shipping sector through its publicly- listed subsidiary, Teekay LNG Partners L.P. (NYSE: TGP), and is further growing its operations in the offshore production, storage and transportation sector through its publicly-listed subsidiaries, Teekay Offshore Partners L.P. (NYSE: TOO) and Teekay Petrojarl ASA (OSE: TPO). With a fleet of over 185 vessels, offices in 17 countries and 6,300 seagoing and shore- based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Moody's Investors Service affirmed its debt ratings of Teekay Corporation -- Corporate Family of Ba2, senior unsecured of Ba3 and speculative grade liquidity rating of SGL-2. Moody's changed the rating outlook to stable from negative. ============= B E R M U D A ============= CONCORD RE: Bank Loan Repayment Prompts S&P's Rating Withdrawal --------------------------------------------------------------- Standard & Poor's Ratings Services has withdrawn its 'BB+' rating on Concord Re Ltd.'s US$365 million bank loan. The company repaid all outstanding amounts and terminated the facility. Concord Re is Ltd., is Class 3 Bermuda reinsurance company that is commonly referred to as a "sidecar." In August 2006, it was capitalized with US$365 million of senior secured term loans and US$365 million of common equity and subsequently entered into a collateralized quota share reinsurance treaty with Lexington Insurance Company, a subsidiary of American International Group, Inc., a property-casualty company of New York-based American International Group, Inc. (NYSE: AIG). SEA CONTAINERS: Earns US$10,644,110 in Month Ended November 30 -------------------------------------------------------------- Sea Containers, Ltd. Unaudited Balance Sheet As of November 30, 2007 Assets Current Assets Cash and cash equivalents US$46,979,067 Trade receivables, less allowances for doubtful accounts 440,764 Due from related parties 678,434 Prepaid expenses and other current assets 1,221,998 ------------ Total current assets 49,320,263 Fixed assets, net - Long-term equipment sales receivable, net - Investments in group companies 143,546,856 Intercompany receivables - Investment in equity ownership interests 220,612,336 Other assets 3,669,219 ------------ Total assets US$417,148,674 Liabilities and Shareholders' Equity Current Liabilities Accounts payable US$13,841,321 Accrued expenses 62,601,847 Current portion of long-term debt 173,097,845 Current portion of senior notes 385,407,893 ------------ Total current liabilities 634,948,906 Total shareholders' equity (217,800,232) ------------ Total liabilities and shareholders' equity US$417,148,674 Sea Containers, Ltd. Unaudited Statement of Operations For the Month Ended November 30, 2007 Revenue US$1,214,000 Costs and expenses: Operating costs - Selling, general and admin. expenses (244,792) Professional fees (4,059,681) Credits to provide against intercompany accounts 20,917,753 Impairment of investment in subsidy Co. - Forgiveness of intercompany debt - Depreciation and amortization - ------------ Total costs and expenses 16,613,280 ------------ Gain or (Loss) on sale of assets (2,025,436) ------------ Operating income (loss) 15,801,844 Other income (expense) Interest income 588,042 Foreign exchange gains or (losses) (8,225) Interest expense, net (4,796,551) ------------ Income (Loss) before taxes 11,585,110 Income tax expense (941,000) ------------ Net (Loss) US$10,644,110 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. 34; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SEA CONTAINERS: SeaCon Services Files November 2007 Report ---------------------------------------------------------- Sea Containers Services Unaudited Balance Sheet As of November 30, 2007 Assets Current Assets Cash and cash equivalents US$23,113 Trade receivables 4,044 Due from related parties 1,770,249 Prepaid expenses and other current assets 3,074,412 ------------ Total current assets 4,871,818 Fixed assets, net 1,512,940 Investments 2,771,549 Intercompany receivables 52,644,890 Other assets - ------------ Total assets US$61,801,197 Liabilities and Shareholders' Equity Current Liabilities Accounts payable US$1,472,031 Accrued expenses 945,530 Current portion of long-term debt 1,574,542 ------------ Total current liabilities 3,992,103 Total shareholders' equity 57,809,094 ------------ Total liabilities and shareholders' equity US$61,801,197 Sea Containers Services Unaudited Statement of Operations For the Month Ended November 30, 2007 Revenue US$1,043,485 Costs and expenses: Operating costs - Selling, general and admin. expenses (726,556) Professional Fees (127,228) Other charges - Depreciation and amortization (95,036) ------------ Total costs and expenses (948,820) ------------ Gains on sale of assets 8,034 ------------ Operating income (loss) 102,699 Other income (expense) Interest income - Foreign exchange gains (losses) - Interest expense, net (11,429) ------------ Income (Loss) before taxes 91,270 Income tax credit - ------------ Net Income US$91,270 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. 34; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). =========== B R A Z I L =========== AMERICAN AIRLINES: Names Robert Friedman as Marketing President --------------------------------------------------------------- American Airlines has named Robert J. Friedman President of AAdvantage(R) Marketing Programs. Mr. Friedman, currently the airline's Managing Director of Reservations, fills a vacancy created by Kurt Stache, who recently was named Vice President and General Sales Manager. "Rob's business knowledge, leadership abilities and customer insights will be of great value as he assumes his new role," said Senior Vice President of Customer Relationship Marketing & Reservations, Bella Goren. "The AAdvantage program, established more than 25 years ago, is the world's leading program of its kind. With 60 million members, it is an enormously important part of our business and we are excited that an individual of this caliber will be leading the AAdvantage team." Mr. Friedman joined the company in 1990 and held positions of increasing responsibility within the airlines' revenue management department. He later moved into the interactive marketing organization, where he played a key role in enhancing and expanding the reach of AA.com. He has significant customer relationship management expertise, and most recently led the airline's largest reservations office. Mr. Friedman holds a Bachelor's of Science degree in Finance from the University of Nebraska-Omaha. About American Airlines Based in Fort Worth, Texas, American Airlines Inc., a wholly owned subsidiary of AMR Corp., operates the largest scheduled passenger airline in the world with service throughout North America, the Caribbean, Latin America, Europe and Asia. American Airlines flies to Belgium, Brazil, Japan, among others. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 15, 2007, Fitch Ratings affirmed the debt ratings of AMR Corp. and its principal operating subsidiary American Airlines, Inc., as: AMR Corp. -- Issuer Default Rating at 'B-'; -- Senior unsecured debt at 'CCC'/RR6'; American Airlines -- Issuer Default Rating at 'B-'; -- Secured bank credit facility at 'BB-/RR1'. Fitch says the rating outlook for both AMR Corp. and American has been revised to positive from stable. FIDC INDUSTRIA: Moody's Assigns (P)Ba1 Global Currency Rating ------------------------------------------------------------- Moody's America Latina has assigned provisional ratings of (P)Aa2.br (Brazilian National Scale) and (P)Ba1 (Global Scale, Local Currency) to the Senior Shares, and (P)Ba2.br (Brazilian National Scale) and (P)B3 (Global Scale, Local Currency) to the Subordinated Mezzanine Shares, to be issued by Chemical III -- FIDC Industria Petroquimica, a securitized transaction backed by a pool of trade receivables originated by three companies of the Braskem Group (Braskem, Companhia Petroquimica do Sul -- Copesul and Ipiranga Petroquimica S.A. -- IPQ). The ratings are based on these factors, among others: -- Overcollateralization ratio ranging from a minimum of 110% to a maximum of 115% for the benefit of the Senior Shares outstanding, which mitigates expected receivable losses, the effects of dilution and potential interest rate mismatch, and transaction costs; -- Overcollateralization ratio ranging from a minimum of 102.041% to a maximum of 102.881% for the benefit of the Subordinated Mezzanine Shares outstanding, which mitigates expected receivable losses, the effects of dilution and potential interest rate mismatch, and transaction costs; -- The eligibility parameters of the trade receivables to be acquired by the issuer, which include concentration limits by client, delinquency by client, and maximum term of the trade receivables; -- The ability of Banco Bradesco S.A. (A1 Long-term Bank Deposit Rating in the Global Local Currency Scale & Aaa.br in the Brazilian National Scale) to act as master and back-up servicer for the transaction; and -- The legal structure of the transaction, including the bankruptcy remoteness of the issuer. The originator is a group of operating companies controlled by the Braskem Group, all of which are producers of petrochemical products. The transfer of receivables from the originators to the issuer is structured as a true sale and a definitive assignment of the contracts as set forth in the assignment of transferred credits under the Brazilian civil code. The Chemical III -- FIDC will have a tree-year tenor, with Senior Shares being amortized in 6 monthly payments after a 30- month grace period, and Subordinated Mezzanine Shares being amortized in a balloon payment at maturity. Interest on both Senior Shares and Subordinated Mezzanine Shares will be paid in five semiannual installments during the initial period of 30 months. During the final period of 6 months interest payments will be made in six monthly and consecutive installments. Proceeds from the issuance of Fund shares will be used to make revolving purchases of trade receivables originated by (i) Braskem S.A. (Aa2.br Brazilian National Scale & Ba1 Global Local Currency Scale), (ii) Companhia Petroquimica do Sul - Copesul, and (iii) Ipiranga Petroquimica S.A. -- IPQ. The complete rating action is: FIDC Senior Shares: -- (P)Aa2.br (National Scale) & (P)Ba1 (Global Scale, Local Currency). FIDC Subordinated Mezzanine Shares: -- (P)Ba2.br (National Scale) & (P)B3 (Global Scale, Local Currency). DELPHI CORP: Gets US$44.2MM Bearing Biz Bid from ND Acquisition --------------------------------------------------------------- Delphi Automotive Systems LLC and Delphi Technologies, Inc., debtor-subsidiaries of Delphi Corp., intend to sell their global bearings business to ND Acquisition Corp., or to another party submitting a higher and better offer for the business. ND Acquisition, a wholly owned subsidiary of private equity investment firm Resilience Capital Partners LLC, has agreed to submit a stalking horse bid of US$44,200,000, subject to adjustments, for the Bearings Business. The Bearings Business produces both wheel bearings and roller clutch product lines. It is the leading producer of Gen III wheel bearings in North America and the primary North American supplier of those parts to General Motors. The Bearings Business occupies a 1.3-million square foot plant set on 133 acres in Sandusky, Ohio. The Debtors have invested more than US$140,000,000 in new tooling and refurbishment for older equipment and new state-of- the-art machinery and equipment since 2000. The Bearings Business employs approximately 1,000 people, including approximately 775 Hourly Employees. The hourly workforce is represented by the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America. Marketing Efforts for Non-Core Businesses As previously reported, to achieve the necessary cost savings and operational effectiveness envisioned in its transformation plan, Delphi is streamlining its product portfolio to capitalize on its world-class technology and market strengths and make the necessary manufacturing realignment consistent with its new focus. As part of the company's transformation plan, the company identified the Bearings Business as a non-core business subject to disposition. The Debtors believe that as a standalone business, the Bearings Business could become more profitable and competitive, and thus, have determined that the value of the Bearings Business would be maximized through its divestiture, relates John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois. The Debtors, according to Mr. Butler, have actively marketed the Bearings Business since February 2007. After evaluating proposals submitted by potential buyers, the Debtors concluded that ND Acquisition offered the most advantageous terms and the greatest economic benefit. Pursuant to a Sale and Purchase Agreement, entered into on Jan. 15, 2008, the Debtors have agreed to sell the Bearings Business to ND Acquisition for US$44,200,000, subject to certain adjustments, and subject to higher or otherwise better offers. Bidding Procedures The Debtors will accept and consider competing bids for the Bearings Business. The proposed Bidding Procedures provide, in relevant part: (a) Participation Requirements: To ensure that only bidders with financial ability and a serious interest in the purchase of the Acquired Assets participate in the Bidding Process, the Bidding Procedures provide for certain requirements for a potential bidder to become a "Qualified Bidder", including the submission of certain financial assurances. (b) Due Diligence: All Qualified Bidders would be afforded an opportunity to participate in the diligence process. (c) Bid Deadline: All bids would have to be received not later than 11:00 a.m. prevailing Eastern time, by Feb. 11, 2008. The Debtors would provide the UAW with notice of all Qualified Bidders and their contact information. (d) Bid Requirements: All bids would be required to include certain documents, including a good-faith deposit of US$750,000. (e) Qualified Bids: To be deemed a "Qualified Bid," a bid would be required to be received by the Bid Deadline and, among other things, (i) be on terms and conditions that are substantially similar to, and are not materially more burdensome or conditional to the Debtors than, those contained in the Agreement, (ii) have a value of the Purchase Price plus the amount of the US$1,500,000 Break- Up Fee and the Expense Reimbursement, plus US$500,000 in the case of an initial Qualified Bid, plus US$250,000 in the case of any subsequent Qualified Bids over the immediately preceding highest Qualified Bid. (f) Conduct Of Auction: If the Debtors receive at least one Qualified Bid in addition to that of ND Acquisition, they would conduct an auction of the Acquired Assets at 10:00 a.m. (prevailing Eastern time) on Feb. 13, 2008, or at a later date. (g) Selection Of Successful Bid: After the conclusion of the Auction, the Debtors, in consultation with their advisors, would review each Qualified Bid and identify the highest or otherwise best offer for the Acquired Assets and the bidder making the bid. The Debtors would sell the Acquired Assets for the highest or otherwise best bid to the Successful Bidder upon the approval of the Court after the sale hearing. (h) Sale Hearing: The Debtors request that the hearing to consider the sale to ND Acquisition, or the winning bidder, be scheduled for Feb. 21, 2008, at 10:00 a.m., prevailing Eastern time. If the highest bidder fails to consummate the sale for specified reasons, then the second highest bid would be deemed to be the successful bid. About Delphi Corp. 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) HUGHES NETWORK: Provides Broadband Satellite Services in Brazil --------------------------------------------------------------- Hughes Network Systems, LLC has been selected by Rede Smart, a Martins Group company, to provide HughesNet(R) broadband satellite managed network services to Rede Smart's 930 grocery stores throughout Brazil. Rede Smart management selected Hughes Network over other telecom operators in Brazil after a tender process and thorough assessment of all proposed solutions. "We selected Hughes because they put together three fundamental elements for us. It is a renowned company using recognized, reliable technology; it offers national coverage, as the HughesNet service is available anywhere in the country; and it is a very cost-effective solution that our member stores can afford," said Rede Smart managing director, Luiz Henrique Abrantes Escobar. The first phase of the project will connect 300 stores via the nationwide Hughes Network satellite service, enabling rapid processing of online debit and credit card transactions. A key benefit of fast credit card processing is reduced queuing time at the cashiers, a benefit small stores will now enjoy that previously was available only to larger retailers in Brazil. "The technology solution being implemented at the Rede Smart stores will benefit all the members -- it is very affordable even for small member retailers and allows the integration of all member stores in the chain," added Mr. Escobar. In the second phase of the project, the remaining stores will be connected through HughesNet and additional value-added applications will be supported, including distance learning for store employees, live video distribution throughout the entire network, and back-office systems. Mr. Escobar said that Rede Smart has invested heavily in logistics technology and infrastructure to enable small retailers to be competitive. Prior to this satellite project, each store was responsible for fulfilling its communications needs on its own and dial-up, point-of-sale solutions were used for debit and credit card transactions. The HughesNet service will provide a unified telecommunications network for all stores, with the same technology platform and level of service throughout Brazil. Rede Smart plans to integrate all 930 stores during 2008. Mr. Escobar believes the project offers specific benefits to small retailers. "The small retailer has difficulty affording the large investment often necessary to obtain the latest technology, as standalone store technology can be expensive. However, being part of a large network gives retailers greater purchasing power and advanced technology becomes affordable," he explained. Hughes Brazil's marketing director, Rafael Guimaraes said, "We are proud to have been selected by Rede Smart, extending Hughes leadership in providing broadband satellite services in Brazil to the retail industry. The services to be implemented will add significant value to all the Rede Smart retailers and to their customers." About Martins Group What began in 1953 as a small grocery store is recognized as the largest wholesale distributor in Latin America. With diversified operations, the Martins Group sells consumer goods ranging from food to electro-electronics to civil construction, and veterinary and pharmaceutical products, resulting in annual revenues of over US$1.1 billion. Rede Smart Rede Smart is the largest affiliation grocery store chain in Brazil. The Martins Group developed this concept as an evolution of "loyalty programs." Based on a membership concept, Rede Smart creates a standard brand for member stores. The stores are identified as belonging to the chain, but are independently owned and managed. The services made available to Rede Smart members include improved negotiation with suppliers for the entire group, standardization of the technology infrastructure, improvement in the store's layout, training of staff, and support of commercial operation management. Rede Smart also provides a help desk that is available to all member stores to answer questions and meet daily demands. About Hughes Network Systems Headquartered in Germantown, Maryland, Hughes Network Systems LLC (NASDAQ:HUGH) -- http://www.hughes.com/-- a wholly owned subsidiary of Hughes Communications Inc., provides broadband satellite networks and services for large enterprises, governments, small businesses, and consumers. Hughes offers complete turnkey solutions, including program management, installation, training, maintenance and support-for professional and rapid deployment anywhere, worldwide. The company owns and operates a global base of HughesNet shared hub services throughout the United States, Brazil, China, Europe, and India. In Europe, Hughes maintains operations facilities and/or sales offices in Germany, U.K., Italy, Czech Republic, and Russia. * * * Moody's Investors Service assigned a B1 rating to Hughes Network Systems LLC's proposed US$115 million senior unsecured term loan, due 2014. In addition, the ratings agency also affirmed the B1 corporate family rating, the B1 rating on the existing US$450 million senior notes due 2014 and the Ba1 rating on the US$50 million senior secured revolving credit facility. The proceeds of the new term loan will be used primarily to fund capital expenditures and for general corporate purposes. JAPAN AIRLINES: Weighs Business Impact of Boeing Delivery Delay --------------------------------------------------------------- The Wall Street Journal reports that Japan Airlines International Company is weighing the potential impact that Boeing Co.'s delivery delay would bring to its business. According to Japan Times, Japan Airlines and rival All Nippon Airways Co. are scheduled to be the first recipients of the new Boeing 787 Dreamliner. Boeing, the report says, won't start delivering the B787 until early 2009 after suppliers failed to complete production work on time. Japan Airlines spokesman Atsushi Abe told Japan Times that the carrier may seek compensation from the U.S. plane maker after the second delay in the aircraft's delivery. WSJ notes that Japan Airlines, which has 35 orders for the B787, with an option to buy 20 additional planes, said it is still looking into the delivery schedule with Boeing. ANA, on the other hand, will examine the effect the delay will have on its expansion plans before making a decision, the Times cites ANA spokesman Rob Henderson as saying. WSJ points out that Boeing's latest delay, which is by about three months, comes as airlines around the world step up efforts to modernize their fleets to boost fuel and operating efficiencies as they deal with high fuel prices. This, WSJ says, has put pressure on aircraft makers to come up with advanced models that combine the best in engine performance with environmentally friendly technology. 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. PARANA BANCO: 2007 Adjusted Net Income Reaches BRL113.5 Million --------------------------------------------------------------- Parana Banco has announced its results for the fourth quarter of 2007. Adjusted Net Income reached BRL113.5 million in 2007, excluding IPO expenses and including deferred commissions booked directly under shareholders' equity. This result is 117.7% higher compared to 2006. In the fourth quarter, net income was BRL36.1 million, 169% higher than in the same quarter of 2006. Total loan portfolio on Dec. 31, 2007, was BRL1.2 billion, 88.1% up on the BRL623.2 million recorded at the close of 2006. At the end of 2007, Parana Banco had 715 agreements for payroll- deduction loans. Origination of total loan operations reached BRL1.01 billion in 2007. Origination of payroll-deduction loans came to BRL873.7 million, 40% up on the BRL624.9 million reported in 2006. The Bank also acquired credits totaling BRL76.4 million from other institutions throughout the year. Franchises Created in march 2007, the Franchise Channel achieved a consolidated status as one of the main distribution channels of Parana Banco -- in addition to the traditional broker channel -- and reached the mark of 60 units in operation at the end of 2007. The channel was already responsible for 14% of Payroll Loan origination in the fourth quarter. The goal for 2008 is to reach 210 units in operation. Insurance Company On Jan. 15, 2008, the incorporation of 100% of J. Malucelli Seguradora by Parana Banco was concluded, as described in the IPO prospectus and disclosed to the market on Jan. 7, 2008. J. Malucelli Seguradora is the absolute leader in the Surety Bond segment in Brazil with 50% market share, according to SUSEP (Brazil's private insurance overseer). About Parana Banco Parana Banco -- http://www.paranabanco.com.br/ir-- is a niche bank in the segment of payroll discount lending, primarily to public-sector employees. The bank's adjusted total assets of US$375 million as of June 2006 represented less than 1% of total assets in the Brazilian banking industry. The bank is a relevant part of a broader conglomerate (J. Malucelli), with operations in different sectors and concentrated in the South of Brazil. Standard & Poor's does not assign ratings to any company in the J. Malucelli group, and the ratings assigned to the bank do not incorporate potential support from shareholders. * * * As reported in the Troubled Company Reporter-Latin America on June 26, 2007, Standard & Poor's Ratings Services raised its long-term counterparty credit rating and senior unsecured debt rating on Parana Banco S.A. to 'B+' from 'B'. The ratings were removed from CreditWatch Positive where they were placed June 11, 2007. At the same time, S&P affirmed the 'B' short- term counterparty credit rating on the bank. S&P said the outlook is stable. PARANA BANCO: Gives 4.57 Mil. Non-Voting Shares To Advent Int'l --------------------------------------------------------------- Parana Banco told Business News Americas that its shareholders agreed to give US private equity firm Advent International 4.57 million non-voting shares as the second and final stage in purchasing back 100% of insurer J Malucelli. As reported in the Troubled Company Reporter-Latin America on Jan. 18, 2008, Parana Banco completed the acquisition of 100% of insurance division J Malucelli as laid out in its initial public offering prospectus in 2007. Parana Banco agreed in March 2007 to buy back J Malucelli from private equity company Advent International through a share swap after the initial public offering. Advent International had purchased an 85% stake in J Malucelli in 2004 for BRL45.3 million. Filings with securities regulator Comissao de Valores Mobiliarios say that Advent International now owns 6.60% of Parana Banco after the share swap in exchange for insurer J Malucelli. According to BNamericas, the share swap increases Parana Banco's capital by BRL64.0 million to BRL764 million. Parana Banco transferred some 7.33 million preferred shares to Advent International in October 2007 at the first stage in purchasing. Advent now owns 14.5% of Parana Banco's preferred shares, BNamericas states. About Advent International Buyout firm Advent International invests in later-stage companies in a variety of industries in North America and Western Europe. Target firms use the company's infusions of cash (up to US$500 million) for international expansion, restructuring, or to fuel growth. Advent International finances companies in developing markets such as Central Europe, Brazil, Mexico, and Argentina to the tune of US$20 million to US$60 million. The company also invests venture capital in companies in the health care and technology fields. Advent International has offices in more than a dozen countries. About Parana Banco Parana Banco is a niche bank in the segment of payroll discount lending, primarily to public-sector employees. The bank's adjusted total assets of US$375 million as of June 2006 represented less than 1% of total assets in the Brazilian banking industry. The bank is a relevant part of a broader conglomerate (J. Malucelli), with operations in different sectors and concentrated in the South of Brazil. Standard & Poor's does not assign ratings to any company in the J. Malucelli group, and the ratings assigned to the bank do not incorporate potential support from shareholders. * * * As reported in the Troubled Company Reporter-Latin America on June 26, 2007, Standard & Poor's Ratings Services raised its long-term counterparty credit rating and senior unsecured debt rating on Parana Banco S.A. to 'B+' from 'B'. The ratings were removed from CreditWatch Positive where they were placed June 11, 2007. At the same time, S&P affirmed the 'B' short- term counterparty credit rating on the bank. S&P said the outlook is stable. PROPEX INC: Case Summary & 30 Largest Unsecured Creditors --------------------------------------------------------- Lead Debtor: Propex, Inc. 6025 Lee Highway, Suite 425 Chattanooga, TN 37421 aka Propex Fabrics, Inc. aka Propex Geosolutions Corporation aka SI Geosolutions Exchange, L.L.C. aka SI Concrete Exchange, L.L.C. aka SI Concrete Holdings, L.L.C. Bankruptcy Case No.: 08-10249 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Propex Holdings, Inc. 08-10250 Propex Concrete Systems Corp. 08-10252 Propex Fabrics International Holdings I, 08-10253 Inc. Propex Fabrics International Holdings II, 08-10254 Inc. Type of Business: The Debtor produces geosynthetic, concrete, furnishing and industrial fabrics and fiber. It creator the following brands: Pyramat, Actionbac, Fibermesh, Duon and CURV. See http://www.propexinc.com/ Chapter 11 Petition Date: January 18, 2008 Court: Eastern District of Tennessee (Chattanooga) Judge: John C. Cook Debtor's Counsel: Edward L. Ripley, Esq. Henry J. Kaim, Esq. Mark W. Wege, Esq. King & Spalding 1100 Louisiana, Suite 4000 Houston, TX 77002 Tel: (713) 751-3200 -- and -- Shelley D. Rucker, Esq. Miller & Martin, L.L.P. Volunteer Building, Suite 1000 832 Georgia Avenue Chattanooga, TN 37402-2289 Tel: (423) 756-6600 Consolidated Financial Condition as September 30, 2007: Total Assets: US$585,700,000 Total Debts: US$527,400,000 Consolidated List of Debtors' 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ B.P. Amoco Chemical Holding note US$31,258,333 Co. Attention: Mike Kapelinski 4010 Winfield Road Warrenville, IL 60666 Tel: (630) 821-3130 S.S.B.&T. Co. bond holder US$30,294,000 Attention: Paul Desharnais 1776 Heritage Drive North Quincy, MA 02171 Tel: (617) 985-2880 Fax: (617) 537-6608 Bear Stearn bond holder US$23,916,000 Attention: Vincent Marzella One Metrotech Center North, 4th Floor Brooklyn, NY 11201-3862 Morgan Stanley bond holder US$13,500,000 Attention: Michelle Ford 901 South Bond Street, 6th Floor Baltimore, MD 21231 Tel: (410) 563-7074 Fax: (410) 534-1420 First Clear bond holder US$10,349,000 Attention: Heidi Richnafsky 10700 Wheat First Drive, Suite WS 1023 Glen Allen, VA 23060 Tel: (804) 398-4931 Raymond bond holder US$8,072,000 Attention: Mike Dillard 880 Carilion Parkway P.O. Box 12749 St. Petersberg, FL 33716 Tel: (727) 567-3206 Fax: (727) 567-8837 J.P. Morgan Chase Bank, N.A. bond holder US$7,848,000 Attention: Sanjay Ghuliani Wing B, Mindspace, Malad West Floor 6 Mumbai, India 400 064 Tel: (469) 477-2140 Fax: (912) 2665069745 Mitsub U.F.J. bond holder US$7,450,000 Attention: Richard Wenshoski 420 Fifth Avenue, 6th Floor New York, NY 10018 Tel: (212) 307-3461 Northern Trust bond holder US$5,900,000 Attention: Robert Valentin 801 South Canal Street Chicago, IL 60607 Tel: (312) 557-8666 Goldman bond holder US$5,870,000 Attention: Gloria 30 Hudson Street Jersey City, NJ 07302 Tel: (212) 902-1973 Fax: (212) 428-1521 Nat City B bond holder US$5,842,000 Attention: Halle Staskey 4100 West 150th Street Cleveland, OH 44135 Tel: (216) 257-4546 Fax: (216) 257-5941 Pershing Securities Corp. bond holder US$5,051,000 Attention: Al Hernandez 1 Pershing Plaza Jersey City, NJ 07399 Tel: (201) 413-3090 Fax: (201) 413-5263 Bank of New York bond holder US$4,786,000 Attention: Mitchel Sobel One Wall Street, 6th Floor New York, NY 10286 Tel: (212) 635-6206 Fax: (212) 635-6224 Total Petrochemicals, Inc. trade debt US$3,552,739 Atlanta, GA 31193-2437 Tel: (972) 801-2616 Fax: (713) 483-5291 Charles Schwab bond holder US$3,585,000 Attention: Ronnie Fuiava 211 Main Street San Francisco, CA 94105 Tel: (631) 254-7618 Fax: (631) 254-7400 Wells Bank, N.A. bond holder US$2,118,000 Attention: Lacey Peterson 733 Marquette Avenue, M.A.C. N9306-057 5th Floor Minneapolis, MN 55479 Tel: (612) 316-3447 Fax: (612) 667-1947 Wells, L.L.C. bond holder US$2,073,000 Attention: Margaret Klasen 625 Marquette Avenue, 13th Floor Minneapolis, MN 55402-2308 Tel: (612) 336-7994 Fax: (612) 336-7814 N.F.S., L.L.C. bond holder US$1,979,000 Attention: Lou Trezza 200 Liberty Street New York, NY 10281 Tel: (212) 335-5807 Fax: (508) 624-5114 Brown Brothers bond holder US$1,400,000 Attention: Jennifer Payea 525 Washington Boulevard Jersey City, NJ 07302 Tel: (201) 418-5877 G.S.E. Lining Technology, Inc. trade debt US$1,368,548 19103 Gundle Road Houston, TX 77073 Tel: (281) 443-8564 Fax: (281) 230-8663 Superior Yarn Technology trade debt US$1,336,178 400 Cross Plains Industrial Boulevard Dalton, GA 30719 Tel: (706) 272-7286 Fax: (706) 272-0492 Sterne, A.G. bond holder US$1,316,000 Attention: Maribeth Williams 813 Shades Creek Parkway, Suite 100-B Birmingham, AL 35242 Tel: (205) 414-3205 Fax: (205) 414-7237 Wells Fargo bond holder US$1,250,000 Attention: Patrick Giardano 1445 Ross Avenue, 2nd Floor Dallas, TX 75202 Tel: (214) 740-1573 Fax: (214) 777-4086 Custodial Trustee bond holder US$1,094,000 Attention: Dawn Elke 101 Carnegie Center Princeton, NJ 08540 Tel: (609) 951-2321 Fax: (609) 951-2327 5th-3rd Bank bond holder US$1,000,000 Attention: Lance Wells 5001 Kingsley Drive Mail Drop 1MOB2D Cincinnati, OH 45227 Tel: (513) 358-9798 Fax: (513) 358-8637 Citibank bond holder US$905,000 Attention: Carolyn Trebus 3800 Citibank Center B3-12 Tampa, FL 33610 Tel: (813) 604-1130 Fax: (813) 604-1966 Techmer, P.M., L.L.C. US$789,276 P.O. Box 535064 Atlanta, GA 30353-5064 Tel: (865) 457-6700 Fax: (865) 457-5227 Fibervisions bond holder US$738,655 Department at 40206 Atlanta, GA 31192-0206 Fax: (770) 784-7137 Naue G.M.B.H. & Co. K.G. US$197,226 Gewerbestrasse 2 32339 Espelkamp-Fiestel Tel: 49 (0) 57 43 / 41-0 Fax: 49 (0) 57 43 / 41-240 Monahan S.F.I., L.L.C. US$163,112 P.O. Box 250 Arcola, IL 61910 PROPEX INC: Files Chapter 11 Protection; To Continue Operations --------------------------------------------------------------- Propex Inc. said Friday that it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code in order to right-size its balance sheet. The company will continue to operate its facilities and offices in the ordinary course of business while it restructures. Additionally, Propex has arranged a US$60 million credit facility for which it will be seeking Court approval. This will provide the company with immediate and sufficient liquidity to operate its business on an ongoing basis. The company also filed for Bankruptcy Court approval of various First-Day Motions designed to ensure continuation of its ordinary business operations. Specifically, Propex requested and expects that the Court will approve the company's new financing to continue all operations in the normal course, including maintaining payroll and employee benefits; all deliveries to customers; and fulfillment of obligations to critical suppliers. The company anticipates its First-Day Motions to be approved in the coming days. "Today's steps are part of an important process to strengthen Propex," said Joe Dana, President of Propex Inc. "We believe the financial reorganization will allow us to implement a restructuring plan that will lower our debt levels and expand our market leadership in key sectors from a position of financial strength." The new financing will provide US$60 million in immediate liquidity. With this cash infusion, the company can focus on servicing its customers and improving operations. Upon completion, the Chapter 11 restructuring is expected to reduce debt and create additional cash flow that otherwise would be earmarked for debt service. "During the past year, our entire industry has been hit hard by the general economic decline led by the deteriorating housing market plus the escalating cost of raw materials. I am pleased we now have a way forward and appreciate the support of our valued customers, suppliers, lenders and employees," said Mr. Dana. The filing impacts Propex's U.S. operations only and does not impact the company's Latin American and European operations. The company will provide updates regarding ongoing operations plans as they become available. Covenant Default As reported in the Troubled Company Reporter on Jan.10, 2008, Propex, at Sept. 30, 2007, said it was not in compliance with the two leverage ratio covenants under the Second Amendment to a Credit Agreement dated Jan. 26, 2007. The company is currently in default under the Credit Agreement and in negotiations with its lenders in order to resolve the issue of non-compliance. As of Sept. 30, 2007, the company had US$230.6 million of borrowings outstanding under the Credit Agreement. About Propex Inc. Propex Inc. -- http://www.propexinc.com/-- manufactures primary and secondary carpet backing. The company also manufactures and markets woven and non-woven polypropylene fabrics and fibers used in geosynthetic and a variety of other industrial applications. The company has manufacturing operations in North America, Europe and Brazil. The company disclosed a net loss of US$60.7 million in three months ended Sept. 30, 2007, compared to a net loss of US$6.5 million in the same period in 2006. At Sept. 30, 2007, the company's balance sheet showed total assets of US$585.7 million and total liabilities of US$527.4 million, resulting in a US$58.3 million stockholders' equity. * * * As reported in the Troubled Company Reporter on Jan. 16, 2008, Moody's Investors Service downgraded its debt ratings of Propex, Inc.: corporate family and probability of default, each to Caa2 from Caa1, senior secured first lien to B3 from B2 and senior unsecured to Caa3 from Caa2. Moody's also placed these ratings on review for further downgrade because of the continuing non- compliance with the leverage covenants of the senior secured bank credit facility and the uncertainty of how Propex will resolve this Event of Default under the Credit Agreement. The speculative grade liquidity rating is unchanged at SGL-4. TAM SA: Orders 40 New A320 Aircrafts to be Delivered by 2013 ------------------------------------------------------------ TAM Linhas Aereas has firmed up its order for 22 A350 XWBs models 800 and 900, to be delivered from 2013 onwards. TAM, Airbus' biggest customer in the southern hemisphere, now has the largest A350 XWB fleet in this region on order and will be the first in Latin America to incorporate this aircraft into its fleet. TAM also confirmed the acquisition of four A330-200 aircraft with deliveries from 2010 onwards and of 20 more aircraft from the A320 family. The A320 family aircraft are in addition to the firm order signed in 2005 and 2006 for the same models. According to the price list, the total value of the 46 aircraft is approximately US$6.9 billion. With an operating fleet of 109 aircraft, of which 102 are Airbus aircraft, including 15 A319's, 70 A320's, three A330-200's and two A340-500's, TAM operates not only the largest Airbus fleet in Latin America but also maintains the largest number of models from the European manufacturer in the region. TAM's fleet plan remains unchanged; it foresees a fleet of 123 aircraft by the end of this year and 136 aircraft by the end of 2010. "Airbus aircraft help to build on our excellence standards of through outstanding passenger comfort. The A350 XWB will provide state-of-the-art passenger comfort, while assuring lowest operating costs and low emissions. We add professionalism and know-how," said TAM President, Captain David Barioni Neto. "The A350 XWB will allow us to continue the successful expansion we have already achieved with our A330s and A320s." "We are very proud to have TAM, one of the most internationally renowned airlines, as the launch customer for our new A350XWB program in South America," said Airbus Chief Operating Officer, Customers, John Leahy. "This contract is a confirmation of the trust that TAM puts in our successful partnership. We cannot value this confidence highly enough, and are certain this repeat order will also further boost TAM's impressive development. " The A350 XWB (Xtra Wide-Body) Family is Airbus' response to widespread market demand for a series of highly efficient medium-capacity long-range wide-body aircraft. The A350 has the widest fuselage in its category, offering unprecedented levels of comfort, the lowest operating costs and lowest seat mile cost of the aircraft of this market segment. The aircraft is designed to confront the challenges of high fuel prices, rising passenger expectations, and environmental concerns. The A330 has low operating costs, and the largest and most comfortable passenger's cabin on its category. TAM already operates 12 A330-200 aircraft in its international long haul routes. The 88 aircraft from the A320 family in the Company's fleet are used in Brazilian and other South America routes. About TAM SA TAM SA (Bovespa: TAMM4 and NYSE: TAM) -- http://www.tam.com.br/ -- operates regular flights to 47 destinations throughout Brazil. It serves 72 different cities in the domestic market through regional alliances. Additionally, it maintains code- share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. The program has over 3.3 million subscribers and has awarded more than 3.6 million tickets. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 27, 2007, Standard & Poor's Ratings Services