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 25, 2008, Vol. 8, Issue 18 Headlines A R G E N T I N A ALITALIA SPA: Ministers Say Political Crisis Not Affecting Talks FORD MOTOR: Neapco Inks Sale Agreements for ACH Driveshaft Biz GETTY IMAGES: Board of Directors Explores Strategic Options NACION RETIRO: Moody's Upgrades Global Currency Rating to B1 PARAMIRO SA: Files for Reorganization in Argentina TYSON FOODS: Settles Shareholder Lawsuit Against Directors TYSON FOODS: Signs Collaboration Pact with Luminex B A R B A D O S HARRAH'S ENTERTAINMENT: Extends Tender Offer Until January 28 B E R M U D A MGS MANAGED: Sets Final Shareholders Meeting for Feb. 25 B R A Z I L AZEGO AG: Illiquid State Triggers Second Insolvency Filing BANCO BMG: Wants Foreign Partner for Housing Loan Portfolio BANCO DO BRASIL: Raises Free Floating Shares to 21.7% from 14.8% BRASKEM SA: Joint Venture To Have Minority Investor COMPANHIA PARANAENSE: Sales Volume Up 6.9% in 2007 COMPANHIA SIDERURGICA: Buying Back Up to Four Million Shares DELPHI CORP: Judge Drain Wants Executive Bonuses Reduced DUKE ENERGY: Suspends Planned Sale of BRL750MM in Debentures EMBRATEL PARTICIPACOES: Anatel OKs 11.3% Increase in Call Rates EMBRATEL PARTICIPACOES: Names Jose Martinez as Chairperson GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally PROPEX INC: Wants to Employ Houlihan Lokey as Financial Advisor PROPEX INC: Wants to Employ Miller & Martin as Local Counsel PROPEX INC: Court Approves US$60 Million Credit Facility TRW AUTOMOTIVE: Moody's Affirms Ba2 Corporate Family Rating UAP HOLDING: Agrium Purchase Deal Gets Antitrust Okay in Canada * BRAZIL: Petrobras Says Tupi Field Paves Way to Other Finds C A Y M A N I S L A N D S AFG RELATIVE: Final Shareholders Meeting Is Today AZIMUTH DIVERSIFIED: Final Shareholders Meeting Is Today BEAR STEARNS: District Ct. Postpones Ruling on Chapter 15 Appeal BLUECREST EQUITY: To Hold Final Shareholders Meeting Today BLUECREST EQUITY MASTER: Final Shareholders Meeting Is Today BNS INT'L: Holding Final Shareholders Meeting Today CC ONE: Will Hold Final Shareholders Meeting Today CENTERRA GOLD: Proofs of Claim Filing Ends Today EQUIFIN CAPITAL: To Hold Final Shareholders Meeting Today FC FUNDING: Final Shareholders Meeting Is Today FONDREN PARTNERS: Final Shareholders Meeting Is Today FRM GARTMORE: Final Shareholders Meeting Is Today GLOBAL ALPHA: To Hold Final Shareholders Meeting Today GOLD CUBED: Proofs of Claim Filing Deadline Is Today GOLD CUBED II: Proofs of Claim Filing Ends Today GOTHAM SELECT: Holding Final Shareholders Meeting Today GSO ABC: Holding Final Shareholders Meeting Today GSO DEF: Final Shareholders Meeting Is Today HARBOURVIEW CLO: Final Shareholders Meeting Is Today HINKLE CREEK: To Hold Final Shareholders Meeting Today IIU CONVERTIBLE: Final Shareholders Meeting Is Today INTERMEZZO LIMITED: Proofs of Claim Filing Deadline Is Today INTERMEZZO LIMITED: Holding Final Shareholders Meeting Today JLOC VIII: Proofs of Claim Filing Deadline Is Today JSB TAIWAN: Proofs of Claim Filing Is Until Today KULIK LIMITED: Proofs of Claim Filing Deadline Is Today EIKOS II: Proofs of Claim Filing Deadline Is Today LIBERTYVIEW PLUS: Final Shareholders Meeting Is Today NITTO SECURITIZATION: To Hold Final Shareholders Meeting Today RAB JAPAN: Holding Final Shareholders Meeting Today RAB INDEX: To Hold Final Shareholders Meeting Today RABO ASGARD: Holding Final Shareholders Meeting Today SIGNAL FINANCIAL: Proofs of Claim Filing Ends Today SOUTHFORK II: To Hold Final Shareholders Meeting Today THIRTEEN MARINE: Final Shareholders Meeting Is Today WATT LIMITED: Proofs of Claim Filing Is Until Today WESTWAYS FUNDING: To Hold Final Shareholders Meeting Today C H I L E METHANEX CORP: Earns US$375.7 Mil. in Year Ended Dec. 31, 2007 QUEBECOR WORLD: Bank Lenders Commit US$1 Billion DIP Financing QUEBECOR WORLD: Wants Ernst & Young as CCAA (Canada) Monitor C O L O M B I A FREEPORT MCMORAN: Profits Drop to US$423MM in 4th Quarter 2007 PARKER DRILLING: Sets Year-End 2007 Earnings Release on Feb. 26 SOLUTIA INC: Chapter 11 Emergence Delayed on Credit Woes D O M I N I C A N R E P U B L I C BANCO BHD: Assets Increase 51.4% to DOP1.07 Billion in 2007 E C U A D O R PETROECUADOR: Gov't Launches Oil Contract Renegotiation Talks E L S A L V A D O R ALCATEL-LUCENT: Mark Sue Maintains Sector Perform Rating on Firm G U A T E M A L A BRITISH AIRWAYS: Panmure Gordon Maintains Buy Rating on Firm BRITISH AIRWAYS: Pilots to Vote for Strike Action BRITISH AIRWAYS: Accident Insurance Premium May Go Up M E X I C O BAUSCH & LOMB: Names Gerald Ostrov as Chief Executive Officer CONSTELLATION BRANDS: Opts To Sell Almaden & Inglenook Brands HARMAN INT'L: Declares US$0.0125 Per Share Quarterly Dividend MAXCOM TELECOM: May Get Acquisition Offers, Says Analyst MEGA BRANDS: Weak Cash Flow Prompts S&P's Rating Downgrade to B PRIDE INTERNATIONAL: Inks Contract for Deepwater Fleet Expansion P E R U CUMMINS INC: To Add 500 Workforce in Columbus DOE RUN: Promotes Narayanaswamy Krishnaswamy as Analysis Manager P U E R T O R I C O ADVANCED AUTO: Appoints Judd Nystrom as Investor Relations VP ADVANCED AUTO: Hires Kevin Freeland as EVP for Supply Chain & IT ADVANCED AUTO: Michael Moore Quits as EVP & CFO Effective Feb. 1 JETBLUE AIRWAYS: Closes Stock Purchase Transaction w/ Lufthansa LIN TV: Promotes Rosetta Rolan as Diversity Director MUSICLAND HOLDING: Court Confirms 2nd Amended Liquidation Plan PEP BOYS: Posts US$28 Mln Net Loss in Third Quarter Ended Nov. 3 U R U G U A Y ITAU URUGUAY: Profit Increases 43.1% to UYU167 Million in 2007 V E N E Z U E L A PETROZUATA FINANCE: S&P Affirms B Rating on US$987.2-Mln Bonds SHAW GROUP: Nuclear Unit Launches New Office in Shanghai, China * VENEZUELA: Pequiven's Joint Venture To Have Minority Investor - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Ministers Say Political Crisis Not Affecting Talks ---------------------------------------------------------------- Italian ministers assured that the current political crisis in the country will not affect the exclusive talks to sell the government's 49.9% stake in Alitalia S.p.A. to Air France-KLM SA, published reports say. "[Alitalia Chairman Maurizio] Prato has full powers to conduct and conclude talks with Air France, with the duty to keep the minister informed, even during a government crisis," Transport Minister Alessandro Bianchi told Reuters. "Nothing changes, even if there is a government crisis," Economic Development Minister Pierluigi Bersani told Thomson Financial. "There is no disturbance," Mr. Bersani adds. Prime Minister Romano Prodi no longer has a majority in the Italian Senate after the Udeur party left the coalition government. Mr. Prodi yesterday survived a confidence vote in the lower parliamentary house, but may tender resignation on pressure from allies before the Senate vote, The Wall Street Journal says. As reported on Jan. 17, 2007, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have two months to reach an agreement, which would be approved by the government. Tommaso Padoa Schioppa, Italy's finance minister, has delivered a letter to Alitalia S.p.A. approving the commencement of 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. FORD MOTOR: Neapco Inks Sale Agreements for ACH Driveshaft Biz -------------------------------------------------------------- Ford Motor Company, Automotive Components Holdings LLC and Neapco Drivelines, LLC have signed definitive agreements for the sale of the ACH driveshaft business currently located in the ACH Monroe (Michigan) Plant. The transfer of the business will begin next week and continue through the rest of the year. This announcement follows the recent United Auto Worker ratification of the collective bargaining agreement negotiated with Neapco. Neapco Drivelines is opening a 345,000 sq. ft. state-of-the-art manufacturing facility in Van Buren Township, Michigan. Approximately 300 salaried and hourly employees from the Monroe Plant and associated technical and support staffs are being offered positions at the new facility. Approximately 30 percent of the Monroe Plant's 1,100 employees are associated with the driveshaft business. The majority of the salaried employees currently are leased to ACH from Visteon and the majority of the UAW hourly employees are leased from Ford Motor. "This is another sign of progress toward achievement of our ACH strategy and our pathway to profitability in North America in 2009," said Ford executive vice president and president of The Americas, Mark Fields. Added Automotive Components Holdings Chief Executive Officer, Bill Connelly: "This is our third sale and the first involving a U.S. business. It represents another important step toward our goal to improve the competitiveness of these operations under new ownership and improve Ford's material costs." "We are pleased to add the Ford driveshaft business and the expertise of the ACH people to our organization," said Neapco president and CEO, Robert Hawkey. "The Wanxiang Group and Neapco are growing globally through strategic acquisitions of innovative driveline products and technologies. We are very appreciative of the support and encouragement we have received from the state, the local community and the United Auto Workers to maintain this business in Michigan." Neapco Drivelines, LLC and its parent company, Neapco LLC, are headquartered in Pottstown, Pa. Wanxiang Group, which is headquartered in Hangzhou, China, is the majority investor in Neapco, LLC. Neapco, LLC supplies drivelines, steering shafts and components for OEM and aftermarket automotive, truck, agricultural, off-highway and specialty vehicle applications from its facilities in Pennsylvania, Nebraska and Mexico. Automotive Components Holdings was established by Ford Motor Company in October 2005 to ensure the flow of quality components and systems to Ford, while the 17 ACH plants, formerly owned by Visteon, are prepared for sale or other disposition. After this sale is complete, ACH will have 11 plants supported by about 10,500 leased hourly and salaried employees. 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. GETTY IMAGES: Board of Directors Explores Strategic Options ----------------------------------------------------------- Getty Images Inc. confirmed that its board of directors is exploring strategic alternatives to enhance shareholder value. The board of directors has retained Goldman Sachs & Co. as its financial advisor and Weil Gotshal & Manges LLP as its legal advisor in connection with its evaluation of such alternatives. While the evaluation process, including discussions with various interested parties, is ongoing, there can be no assurance that any transaction will occur or as to the timing, structure, price or terms of any transaction. Getty Images does not plan to update the market with any further information on the process unless and until such time as its board deems appropriate. Headquartered in Seattle, Washington, Getty Images Inc. (NYSE:GYI) -- http://www.gettyimages.com/-- is a creator and distributor of visual content. The company provides relevant imagery to professionals at advertising agencies, graphic design firms, corporations, and film and broadcasting companies; editorial customers involved in newspaper, magazine, book, compact disc and online publishing, and corporate marketing departments and other business customers. Getty Images offers its imagery and related services through the company's website and a global network of company-owned offices and delegates. It serves customers in more than 100 countries. The company has corporate offices in Australia, the United Kingdom and Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 2, 2007, Standard & Poor's Ratings Services raised its ratings on Getty Images Inc., including raising the corporate credit rating to 'BB' from 'B+, and removed the ratings from CreditWatch. S&P said the outlook is negative. NACION RETIRO: Moody's Upgrades Global Currency Rating to B1 ------------------------------------------------------------ Moody's Investors Service has upgraded Nacion Seguros de Retiro S.A.'s insurance financial strength rating to B1 from B2 -- global local-currency -- and to Aa3.ar from A1.ar on the Argentine national scale rating. Both ratings have a stable outlook. This rating action concludes the review for possible upgrade initiated on Nov. 1, 2007. The rating agency said that the upgrade on the company's ratings was driven by Nacion Retiro's improving profitability trend and liquidity profile, stronger asset quality, broader investment diversification and the ownership, integration, and support provided by Banco de la Nacion Argentina. However, these positive developments could be mitigated somewhat in the short-- to-medium term by a recent negative and volatile trend in the local financial markets, which led to the company reporting a net loss in the first quarter ended as of Sept. 30, 2007. Poor investment returns hurt not only the company's profitability, but also the earnings of almost the entire Argentine insurance industry. Moody's will closely follow these new developments in the financial markets. In addition, Moody's points out that Nacion Retiro's credit profile still reflects its lack of diversification, both geographically and in its product line, as well as its still significant investment risk, its deteriorating capital adequacy, and its significant country-specific risk-exposure common to all Argentine insurers. Nacion Retiro reported total assets of about ARS1069.1 million, and shareholder's equity ARS68.9 million as of Sept. 30, 2007. The company also reported a net loss of ARS20 million for the quarter ended Sept. 30, 2007, as compared with a net income of ARS7.2 million for the same period in 2006. Based in Buenos Aires, Argentina, Nacion Retiro is the annuity insurance subsidiary of the state-owned Banco de la Nacion Argentina, which is the largest bank in the country. The company specializes in underwriting "previsional" annuities, which are part of the national pension system, and manages pensioners' funds. Nacion Retiro also provides group annuity products for large corporations and individual annuity coverage for individuals. PARAMIRO SA: Files for Reorganization in Argentina -------------------------------------------------- Paramiro S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Paramiro to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. TYSON FOODS: Settles Shareholder Lawsuit Against Directors ---------------------------------------------------------- Tyson Foods, Inc. and the Tyson Limited Partnership have settled a shareholder derivative lawsuit against the company's current and former directors, which is subject to obtaining court approval. The lawsuit, which is In re Tyson Foods, Inc. Consolidated Shareholders Litigation, C.A. No. 1106-CC, has been pending in the Delaware Court of Chancery since 2005. The allegations of the lawsuit have been described in previous filings by the company with the Securities and Exchange Commission. The full text of the settlement is available in a Form 8-K filing the company made with the SEC. Under the settlement, all claims against all defendants will be dismissed. In exchange, Don Tyson and the Tyson Limited Partnership, the company's largest shareholder, have agreed to pay the company US$4.5 million. No other defendant will make any payments. The company has also agreed to implement or continue certain governance measures, which includes the establishment of a nominating committee, appointment of a new independent director, and limitations on new related party transactions between the company and the Tyson Limited Partnership, Don Tyson, members of his family, or executive officers. The plaintiffs are also seeking US$3 million from the company, out of the US$4.5 million to be paid to the company under the settlement, to cover their attorneys' fees and expenses related to this case. However, Tyson officials indicate they will contest this requested fee award. The settlement was filed with the Delaware Court of Chancery. The Court is expected to issue a scheduling order after which time the Tyson shareholders will be formally notified and given the opportunity to submit any objections. This will be followed by a settlement hearing, which will likely be held in March or April of 2008. About Tyson Foods, Inc. Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. The company produces a wide variety of protein-based and prepared food products, which are marketed under the "Powered by Tyson(TM)" strategy. The company has operations in China, Japan, Singapore, South Korea, and Taiwan. In Latin America, Tyson Foods has operations in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 24, 2007, Moody's Investors Service affirmed Tyson Foods Inc.'s ratings, including its Ba1 corporate family rating and Ba1 probability of default rating. Moody's said the rating outlook is negative. TYSON FOODS: Signs Collaboration Pact with Luminex -------------------------------------------------- Tyson Foods Inc. and Luminex Corporation have reached a collaboration agreement, to create faster, more accurate and cost-effective food safety and animal health tests. "Luminex is pleased to partner with Tyson to develop novel tests that we believe will allow the food industry to screen for pathogens and other microbes more efficiently and accurately," said Patrick J. Balthrop, president and chief executive officer of Luminex. "Our xMAP(R) Technology, enabling multiple tests to be run simultaneously on one sample, has great application in the food safety and animal health arena as it provides a significant level of data quickly and efficiently." "We're anxious to explore ways to adapt Luminex technology to our business," said Dr. Neal Apple, vice president of the Tyson Food Safety and Laboratory Services Network for Tyson. "We believe it will give us the flexibility to gather more testing data faster and develop and validate rapid testing options not currently available commercially. We see a tremendous benefit to our customers, company and the food industry by applying this next generation technology to positively impact the effectiveness of our routine laboratory testing. This collaboration represents a big step forward for our labs and lines up with our focus on continuous improvement of our ISO (International Organization for Standardization) Quality System." Tyson and Luminex's first collaboration is the development of an avian flock health monitoring panel. Future research and development projects slated are focused on food safety and quality tests, and additional animal health diagnostic panels leveraging the flexibility and multi-analyte technology capabilities of xMAP technology and current and future Luminex instrument platforms. Tyson's award-winning Food Safety and Laboratory Services Network includes 17 Tyson laboratories across the country. This includes a 25,000-square-foot, state-of-the-art food testing and research laboratory at Tyson World Headquarters in Springdale, Arkansas, which is dual certified under the ISO quality management system standard ISO 9001:2000 and the ISO/IEC (International Electrotechnical Commission) 17025 standard for the competence of testing and calibration laboratories. In addition, seven other Tyson Foods regional and corporate laboratories are certified under the same ISO/IEC 17025 standard. About Luminex Corp. Luminex Corporation -- http://www.luminexcorp.com/-- develops, manufactures and markets proprietary biological testing technologies with applications throughout the diagnostic and life sciences industries. The company's xMAP(R) multiplex solutions include an open-architecture, multi-analyte technology platform that delivers fast, accurate and cost-effective bioassay results to markets as diverse as pharmaceutical drug discovery, clinical diagnostics and biomedical research, including the genomics and proteomics markets. The company's xMAP technology is sold worldwide and is already in use in leading clinical laboratories as well as major pharmaceutical, diagnostic and biotechnology companies. About Tyson Foods, Inc. Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. The company produces a wide variety of protein-based and prepared food products, which are marketed under the "Powered by Tyson(TM)" strategy. The company has operations in China, Japan, Singapore, South Korea, and Taiwan. In Latin America, Tyson Foods has operations in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 24, 2007, Moody's Investors Service affirmed Tyson Foods Inc.'s ratings, including its Ba1 corporate family rating and Ba1 probability of default rating. Moody's said the rating outlook is negative. =============== B A R B A D O S =============== HARRAH'S ENTERTAINMENT: Extends Tender Offer Until January 28 ------------------------------------------------------------- Harrah's Entertainment, Inc. has announced the extension of the Offer Expiration Date for the previously announced cash tender offers by Harrah's Operating Company, Inc. for any and all of its outstanding notes: (i) Senior Floating Rate Notes due 2008, (ii) 8.875% Senior Subordinated Notes due 2008, (iii) 7.5% Senior Notes due 2009, (iv) 7.5% Senior Notes Due 2009, and (v) 7% Senior Notes due 2013. As well as the extension of the Offer Expiration Date for the previously announced cash tender offer by Harrah's Entertainment and Harrah's Operating for Harrah's Operating's Floating Rate Contingent Convertible Senior Notes due 2024 (Convertible Notes and, collectively with the Floating Rate Notes, the 8.875% Notes, the 7.5% Notes (1998), the 7.5% Notes (2001) and the 7% Notes, the Notes). In each case, the Offer Expiration Date has been extended to 8:00 a.m., New York City time, on Jan. 28, 2008, the date on which the previously announced merger of Harrah's Entertainment with Hamlet Merger Inc., a company controlled by Apollo Global Management, LLC and TPG Capital, L.P., is scheduled to close, unless further extended. Except for the extension described above, all of the terms and conditions set forth in the applicable Offer to Purchase and Consent Solicitation Statement with respect to the Notes remain unchanged. As of 9:00 a.m. New York City time, on Jan. 23, 2008: (i) approximately US$81,150,000 in aggregate principal amount at maturity of the Floating Rate Notes had been tendered, representing approximately 32.46% of the outstanding principal amount at maturity of the Floating Rate Notes; (ii) approximately US$394,234,000 in aggregate principal amount at maturity of the 8.875% Notes had been tendered, representing approximately 98.56% of the outstanding principal amount at maturity of the 8.875% Notes; (iii) approximately US$131,144,000 in aggregate principal amount at maturity of the 7.5% Notes (1998) had been tendered, representing approximately 96.22% of the outstanding principal amount at maturity of the 7.5% Notes (1998); (iv) approximately US$424,166,000 in aggregate principal amount at maturity of the 7.5% Notes (2001) had been tendered, representing approximately 99.80% of the outstanding principal amount at maturity of the 7.5% Notes (2001); (v) approximately US$299,396,000 in aggregate principal amount at maturity of the 7% Notes had been tendered, representing approximately 99.80% of the outstanding principal amount at maturity of the 7% Notes; and (vi) approximately US$374,592,500 in aggregate principal amount at maturity of the Convertible Notes had been tendered, representing approximately 99.96% of the outstanding principal amount at maturity of the Convertible Notes. Harrah's Operating's tender offer is subject to the conditions set forth in the Statements and the applicable Consent and Letter of Transmittal, including, among other things, that Harrah's Operating obtains the financing necessary to pay for the Notes and consents in accordance with the terms of the tender offers and consent solicitations. Harrah's Operating and Harrah's Entertainment have retained Citi to act as lead dealer manager in connection with the tender offers and consent solicitations. Questions about the tender offers and consent solicitations may be directed to Citi at (800) 558-3745 (toll free) or (212) 723-6106 (collect). Copies of the Offer Documents and other related documents may be obtained from Global Bondholder Services Corporation, the information agent for the tender offers and consent solicitations, at (866) 924-2200 (toll free) or (212) 430- 3774 (for banks and brokers only). About Harrah's Entertainment 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. ============= B E R M U D A ============= MGS MANAGED: Sets Final Shareholders Meeting for Feb. 25 -------------------------------------------------------- MGS Managed Futures Funds Limited will hold its final shareholders meeting on Feb. 25, 2008, at: Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. =========== B R A Z I L =========== AZEGO AG: Illiquid State Triggers Second Insolvency Filing ---------------------------------------------------------- Azego AG, on Jan. 22, 2008, filed a second insolvency petition with the Munich Municipal Court after attempts to negotiate with investors and competitors failed. The company said it was not able to eliminate its illiquidity even though there had been several promising possibilities. Azego's problems also prompted its subsidiary, First Components GmbH to file an insolvency petition for the second time. The company said that despite implementing several cost reduction measures to reduce losses and significantly increase its margins over the last two years, as well as a convertible loan 2007/2011, it couldn't achieve the planned revenue of liquidity, which would have been precondition to continue its operations. Headquartered in Munich, Germany, Azego AG, fka ACG Advanced Component Group -- http://www.azego.com/-- is a supplier of semiconductor components and related logistic services. The company offers tailor-made and comprehensive solutions ranging from search and commercial processes to the delivery of the goods. Its portfolio of logistic services include excess inventory management services, shortage management services, bill of material services, franchise services, mass market services, computer services and last time buy services. Its portfolio of products includes capacitors, connectors, inductors, crystals, diodes, microcontrollers, resistors and other computer products and accessories. It has subsidiaries in Germany, Singapore, China, Korea, Luxemburg, France, Brazil, the United States, Austria and in the United Kingdom. BANCO BMG: Wants Foreign Partner for Housing Loan Portfolio ----------------------------------------------------------- Banco BMG's vice president Marcio Alaar de Araujo told Business News Americas that the bank is seeking a foreign bank as partner to help build a housing loan portfolio. Mr. de Araujo commented to BNamericas, "We think housing loans will be one of the fastest growing segments and we're looking for a foreign partner to offer home loans." New housing loans in Brazil increased 96.0% to BRL18.3 billion in 2007, from 2006, BNamericas says, citing savings and loan trade association Abecip, which sees new home loans increasing as much as 36.6% to BRL25 billion in 2008, compared to 2007. According to BNamericas, Banco BMG would offer housing loans with payments taken directly from paychecks. This process is similar to payroll and retirement loans where Banco BMG is a market leader. Austin Rating analyst Luis Miguel Santacreu commented to BNamericas, "This type of home loan has even more potential than traditional payroll loans because of the enormous housing deficit in Brazil. BMG could win over clients from other financial institutions through these new housing loans." Meanwhile, Banco BMG wants to issue bonds this year and will decide by July whether or not to make an initial public offering, depending on the state of markets, BNamericas notes, citing Mr. de Araujo. Mr. de Araujo commented to BNamericas, "BMG has high volume and low risk but the question is how the bank is going to fund further growth. Right now is the opportune moment to rethink strategies." Once Banco BMG proceeds with the initial public offering, it will have to diversify its product lines, as it has done recently with vehicle funding and plans to do with housing loans. It may have to think about purchasing other banks, BNamericas says, citing Mr. Santacreu. Banco BMG could also sell off a part of its business to partner Cetelem or whichever bank it aligns with in the housing loan segment. Banco BMG wanted to increase lending at least 25% in 2008, compared to 2007, with room for growth in the payroll segment and increasing vehicle funding operations, BNamericas states, citing Mr. de Araujo. About Banco BMG Banco BMG is the banking arm of Grupo BMG, which also has real estate, food manufacturing and agro industry holdings. The bank is a niche player focused on loans to civil servants, with repayments taken monthly from payrolls. BMG operates mainly through in-house representatives in state companies. It also offers leasing and asset management services. * * * 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 on Banco BMG S.A. to 'BB-' from 'B+'. The rating was removed from CreditWatch Positive where it was placed June 11, 2007. S&P said the outlook is stable. On Aug. 23, 2007, Moody's placed a Ba2 long-term bank deposit rating on Banco BMG. BANCO DO BRASIL: Raises Free Floating Shares to 21.7% from 14.8% ---------------------------------------------------------------- Banco do Brasil said in a statement that it has raised its free float to 21.7% from 14.8% through a secondary share offering that closed on Jan 22. Business News Americas relates that Banco do Brasil started trading shares on the Novo Mercado index of the Sao Paulo Bovespa stock exchange in June 2006. It was given three years to raise its free float to at least 25%. According to BNamericas, Banco do Brasil shareholders BNDESpar and Previ unloaded about 118 million shares for BRL29.25 each in the offering, bringing in BRL3.44 billion. BNamericas notes that BNDESpar sold nearly 101 million shares, while Previ sold about 17.2 million shares. BNDESpar and Previ said in July 2007 that they wanted to sell up to 5% of their shares in Banco do Brasil. Previ held a 11.4% stake in Banco do Brasil, while BNDESpar owned 5.04% of Banco do Brasil before the offering, BNamericas states. Banco do Brasil holds a 49.99% stake in Brasilcap. Banco do Brasil is Brazil's federal bank and is the largest in Latin America with some 20 million clients and over 7,000 points of sale (3,200 branches) in Brazil, and 34 offices and partnerships in 26 other countries. In addition to its traditional retail banking services, Banco do Brasil underwrites and sells bonds, conducts asset trading, offers investors portfolio management services, conducts financial securities advising, and provides market analysis and research. On Nov. 6, 2007, Moody's assigned a Ba2 foreign currency deposit rating to Banco do Brasil. On Aug. 23, 2007, Moody's assigned a Ba2 long-term bank deposit rating on the bank with a stable outlook. As reported on May 22, 2007, Standard & Poor's Ratings Services raised its long-term foreign currency counterparty credit rating on Brazilian government-related entity Banco do Brasil to 'BB+' from 'BB', after Brazil's foreign currency sovereign credit rating was upgraded to BB+. BRASKEM SA: Joint Venture To Have Minority Investor --------------------------------------------------- Braskem SA's head Jose Carlos Grubisich told Business News Americas that its joint venture with Venezuelan state-run firm Pequiven will have a minority investor with a 2% stake to help resolve bureaucratic matters. Polipropileno del Sur and Polietilenos de America would be formed under the joint venture, BNamericas notes, citing Mr. Grubisich. If Braskem and Pequiven each owned 50% of the two companies, these new firms would be considered state-owned under Venezuelan legislation. Mr. Grubisich commented to BNamericas, "Their control will be in equal shares of 49% and the minor shareholder will not be able to form a partnership with another shareholder to increase its shareholding to 51%, for example." The candidate to be the minority stakeholder is almost decided, BNamericas says, citing Mr. Grubisich. BNamericas relates that Braskem has negotiated the price it will pay for the natural gas to feed the Polipropileno del Sur polypropylene project and the Polietilenos de America ethylene/polyethylene complex with Venezuelan state-run oil firm Petroleos de Venezuela. According to BNamericas, Polipropileno del Sur will construct and run a 450,000-ton-per-year polypropylene unit costing over US$840 million. Polietilenos de America will build and operate a natural gas-based ethane cracker that can make: -- 1.3 million tons per year of ethylene, -- 419,000 tons per year of high-density polyethylene, -- 309,000 tons per year of low-density polyethylene, and -- 440,000 tons per year of linear low-density polyethylene. Polietilenos de America project would require an estimated US$2.66 billion investment, BNamericas states. About Pequiven Pequiven is an integrated company, which operates 13 fully owned plants, producing basic petrochemicals and fertilizers. It participates in 19 joint ventures of which one, FertiNitro, went on stream in 2000, and has investments overseas. It has four complexes in Venezuela: El Tablazo, Jose, Paraguana and Moron. About Braskem: Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian- owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. The company reported consolidated net revenues of about US$9 billion in the trailing twelve months through Sept. 30, 2007. As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Fitch Ratings affirmed the ratings of Braskem S.A. and Braskem International. Fitch Ratings said the outlook remains positive. Braskem SA: -- Foreign currency Issuer Default Rating at 'BB+'; -- Local currency Issuer Default Rating at 'BB+'; -- Senior unsecured notes 2008, 2014 at 'BB+'; -- Senior unsecured Perpetual Bonds at 'BB+'; -- Senior unsecured notes 2017 at 'BB+'; -- National rating at 'AA (bra)'; -- Debentures 13th Issuance at 'AA (bra)'. Braskem International: -- Senior unsecured notes 2015 at 'BB+'. COMPANHIA PARANAENSE: Sales Volume Up 6.9% in 2007 -------------------------------------------------- Companhia Paranaense de Energia said in a statement that its sales volume increased 6.9% to 19.9 terra watt-hours in 2007, compared to 18.6 terra watt-hours in 2006. Business News Americas relates that the figures include sales to the regulated and unregulated markets. Sales to the regulated market rose 5.8% to 18.5 terra watt-hours in 2007, from 2006. Companhia Paranaense told BNamericas that power sales to its industrial customers increased 4.3% to 6.27 terra watt-hours in 2007, compared to 2006. Sales to its commercial and residential clients grew 9.2% to 3.72 terra watt-hours and 6.6% to 5.14 terra watt-hours, respectively. The firm's sales in rural areas rose 1.8% to 1.86 terra watt-hours. BNamericas notes that sales to Companhia Paranaense's residential customers increased due to: -- warmer temperatures, -- increased purchasing power in Parana, and -- a recovery in the industrial market due to agricultural production. Companhia Paranaense's sales to residential, industrial, commercial and rural clients were 25.7%, 38.7%, 18.6% and 7.6% of total sales, respectively, BNamericas states. Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense de Energia SA -- http://www.copel.com/-- (NYSE: ELP/LATIBEX: XCOP/BOVESPA: CPLE3, CPLE5, CPLE6) transmits and distributes electricity to more than 3 million customers in the state of Parana and has a generating capacity of nearly 4,600 megawatts, primarily from hydroelectric plants. COPEL also offers telecommunications, natural gas, engineering, and water and sanitation services. The company restructured its utility operations in 2001 into separate generation, transmission, and distribution subsidiaries to prepare for full privatization, which has been indefinitely postponed. In response, COPEL is re-evaluating its corporate structure. The government of Parana controls about 59% of COPEL. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2006, Moody's America Latina upgraded the corporate family rating of Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale and to Aa2.br from A3.br on its Brazilian national scale. Moody's said the rating outlook is stable. This rating action concludes the review process initiated on July 26, 2006. Moody's upgraded these ratings: -- Corporate Family Rating: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); -- BRL500 million Senior Unsecured Guaranteed Debentures due 2007: to Ba2 from Ba3 (Global Local Currency) and to Aa2.br from A3.br (Brazilian National Scale); and -- BRL400 million Senior Secured Guaranteed Debentures due 2009: to Ba1 from Ba2 (Global Local Currency) and to Aa1.br from A1.br (Brazilian National Scale). COMPANHIA SIDERURGICA: Buying Back Up to Four Million Shares ------------------------------------------------------------ Companhia Siderurgica Nacional said in a filing with the Bovespa stock exchange that it will buy back up to four million shares through Feb. 27. Business News Americas relates that Companhia Siderurgica has about 455 million shares in circulation. Brazilian brokerage Brascan Corretora said in a report, "The repurchase program could provide sustenance to CSN [Companhia Siderurgica] shares in a worldwide economic scenario that suggests a high level of stock volatility from different sectors in Brazil and abroad." Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal and the U.S. As reported in the Troubled Company Reporter-Latin America on Dec. 27, 2007, Standard & Poor's Ratings Services revised its outlook on Brazil-based steel maker Companhia Siderurgica Nacional and related entity National Steel S.A. to positive from stable. At the same time, Standard & Poor's affirmed its 'BB' corporate credit rating on CSN and its 'B+' rating on NatSteel. DELPHI CORP: Judge Drain Wants Executive Bonuses Reduced -------------------------------------------------------- As widely reported, the Honorable Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York said he will approve Delphi Corp. and its debtor-affiliates' First Amended Joint Plan of Reorganization on the condition that the total payout of cash bonuses to top executives is reduced. "I am prepared to enter the confirmation order, provided the management compensation plan is changed," Judge Drain said at the confirmation hearings, which began Jan. 17, 2008. Reuters reports the Court wants the emergence bonus for Delphi's officers reduced to US$16.5 million from the US$87.9 million that Delphi had proposed to award to 500 managers upon emergence. But the United Auto Workers and the International Union of Electronic Workers-Communications Workers of America objected to payments, citing among other things, that while unionized Delphi employees suffered pay-cuts, the managers, who are already adequately compensated, are given generous bonuses. The management compensation plan seeks to grant an US$8.3 million "performance payment" to Executive Chairman Robert Miller; and a US$5.3 million cash emergence payment to Chief Executive Officer Rodney O'Neal. Delphi aims to emerge from Chapter 11 by the end of first quarter of 2008. Delphi, however, has yet to secure the US$6.1 billion exit financing to pay claims and fund its post- bankruptcy operations. According to The Associated Press, a Delphi executive said that the company expects to obtain a commitment for US$4.5 billion of the financing by Jan. 23, 2008, but there has been no indication whether the company is close to securing the loans. Delphi told the Court that the First Amended Plan satisfies the conditions for confirmation under Section 1129 of the Bankruptcy Code. It noted that the Plan has been approved by 81% of 4,000 creditors entitled to vote on the Plan. According to Bloomberg News, Delphi resolved or had overruled objections to earlier changes to the Plan, including those triggered by a US$2.55 billion investment in Delphi by a group of investors led by Appaloosa Management LP. Delphi, Bloomberg News reports, said that Davidson Kempner Capital Management LLC, Whitebox Advisors LLC and other bondholders have agreed to withdraw their objections, in exchange for, among other things, payment of the group's legal fees up to US$5 million. 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. 108; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DUKE ENERGY: Suspends Planned Sale of BRL750MM in Debentures ------------------------------------------------------------ Duke Energy Paranapanema said in a filing with the Sao Paulo stock exchange Bovespa that it has suspended plans to sell BRL750 million in non-convertible debentures. According to Business News Americas, Duke Energy wanted to sell 75,000 debentures for BRL10,000 each in two series. The debentures would mature on Jan. 15, 2014, and Jan. 15, 2016. Duke Energy explained to BNamericas that the suspension of the sale indicates "strategic" considerations "that take into account domestic and international market conditions in recent days." Banco Itau-BBA and Citibank were handling the sale, BNamericas states. Duke Energy International Geracao Paranapanema SA is engaged in the generation of electric power in Sao Paulo, Brazil. The Company is a subsidiary of Duke Energy International, representing its primary interest in the Brazilian market. The Company operates eight hydroelectric generation facilities with 2,237 net megawatts of capacity on the Paranapanema River in southwestern Sao Paulo. Its Paranapanema River facilities include Canoas I, generating 83 megawatts; Canoas II, generating 72 megawatts; Capivara, generating 640 megawatts; Chavantes, generating 414 megawatts; Jurumirim, generating 98 megawatts; Rosana, generating 372 megawatts; Salto Grande, generating 74 megawatts, and Taquarucu, generating 554 megawatts. All of the plants encompass reservoirs. Harnessing the river has enabled stabilization of 90.5% of the average flow, which helps flood prevention and irrigation of the surrounding region. As reported in the Troubled Company Reporter-Latin America on Jan. 3, 2008, Moody's Investors Service assigned a Ba2 global local currency corporate family rating with a stable outlook to Duke Energy International, Geracao Paranapanema S.A. In addition, Moody's assigned an A1.br Brazil National Scale corporate family rating to Duke Energy. This is the first time Moody's has assigned a rating to Duke Energy. The rating is not constrained by Brazil's foreign currency country ceiling (Baa3/Stable). EMBRATEL PARTICIPACOES: Anatel OKs 11.3% Increase in Call Rates --------------------------------------------------------------- Embratel Participacoes has secured authorization from Brazil's telecoms regulator Anatel to increase rates by 11.3% for calls made by or destined to mobile phones under the firm's basic subscription plan, news service Agencia Estado reports. Business News Americas relates that long distance call rates have been the same since 2004. The regulator considered the 7.99% price variation in the national price index between January 2004 and December 2005. The call rate increase was authorized for: -- type VC-2 calls between municipalities that have the same first digit in the area code and -- type VC-3 calls between places with a different first digit area code. The new rates can't be implemented in calls involving Brazilian mobile operator TIM's clients, BNamericas states. Embratel Participacoes SA offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and Internet transmission, and is present all over the country with its satellite solutions. Embratel is the market leader in revenues with Long Distance, Domestic and International calls. Embratel Participacoes is rated by Moody's: * local currency issuer rating -- B1; and * senior unsecured debt - B2. EMBRATEL PARTICIPACOES: Names Jose Martinez as Chairperson ---------------------------------------------------------- Embratel Participacoes SA told Reuters that it has appointed Jose Formoso Martinez as its chairperson, effective Jan. 31. According to Reuters, Mr. Martinez will take over from Carlos Henrique Moreira, who has been Embratel Participacoes' chairperson since 2004. He had been vice chairperson and chief executive in Embratel Participacoes for over three years. Mr. Moreira will continue to be an Embratel Participacoes board member, Reuters states. Embratel Participacoes SA offers a range of complete telecommunications solutions to the market all over Brazil, including local, long distance domestic and international telephone services, data, video and Internet transmission, and is present all over the country with its satellite solutions. Embratel is the market leader in revenues with Long Distance, Domestic and International calls. Embratel Participacoes is rated by Moody's: * local currency issuer rating -- B1; and * senior unsecured debt -- B2. GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally ----------------------------------------------------------- General Motors Corp. sold 9,369,524 cars and trucks around the world in 2007, an increase of 3%, according to preliminary sales figures released. In the fourth quarter, GM sold 2,305,752 vehicles, an increase of 4.8% compared with a year ago. "We set a record in China with more than a million vehicles sold. We nearly doubled our sales in Russia to an all-time record of more than 258,000 vehicles delivered. And we set a record in Brazil with nearly a half-million vehicles sold," John Middlebrook, GM vice president, Global Sales, Service and Marketing Operations said. "This is the kind of emerging market growth that fuels our global performance. Customers are responding to our fuel-efficient and dynamically-designed product lineup around the world." The 2007 tally was the second best global sales total in the company's 100-year history and marked the third consecutive and fourth time (2007, 2006, 2005 and 1978) GM sold more than nine million vehicles in a calendar year. GM's global position -- especially the emerging markets -- built sales momentum. Global sales of GM's top-selling brand, Chevrolet, grew more than 4% to 4.49 million vehicles compared with 2006 sales of 4.30 million. Chevrolet grew in all three regions outside North America, with the strongest performance in Europe with a nearly 34% increase compared with 2006. The Latin America, Africa and Middle East region saw strong Chevrolet growth with an additional 23% (208,000 vehicles) delivered over the 2006 level. Chevrolet also performed well in the Asia Pacific region, which was up 22%. The Aveo helped Chevrolet field a strong competitor in the very competitive global car market. GM also retains its strong truck portfolio, evidenced by 3.80 million truck sales around the world, an increase of more than 33,000 vehicles (1%) compared with 2006. Chevrolet sold more than 1.96 million trucks globally last year. GMC global sales grew nearly 6% in 2007, with 613,000 vehicles delivered, compared with 579,000 in 2006. Wuling sales in the Asia Pacific region also fueled significant truck, mini-truck, and mini-van performance with 516,000 vehicles sold, a 24% increase over 2006. GM increased full-size pickup truck market share in the U.S. in 2007 by 0.2 ppts to 40.2%. Cadillac saw global growth with sales increases outside of North America last year, thanks to a 45% increase in the Europe, a 42% climb in the Latin America, Africa and Middle East region, and an impressive 106% hike in the Asia Pacific region. Saab saw annual sales increases of 13% in the Latin America, Africa and Middle East region, and 5% in Asia Pacific. In Europe, Saab maintained its market share position (0.4%), and with the extension of BioPower to its 9-3 model range, continues to be the leading brand for E-85 vehicles in Europe. Global sales highlights include: * GM sold 9.37 million vehicles in 2007, an increase of 3%. In the quarter, sales of 2.31 million vehicles were up 4.8%. At 5.50 million vehicles, 2007 sales outside of the United States accounted for about 59% of GM's total global sales, outpacing the industry average growth rate. The industry has seen significant volume increases in the global automotive market in the past five years, and the market now nears 71 million. In 2007, GM's top three brands in sales volume were Chevrolet (4.49 million, up 4%), Opel/Vauxhall (1.69 million vehicles, up 4%) and GMC (613,000, up 6%). * In the Asia Pacific region, GM sales of 1.43 million vehicles topped 1 million vehicles for the third consecutive year, and GM China saw more than 18% sales growth compared with 2006. The company had regional Q4 sales of 382,000 vehicles, up nearly 17%, exceeding the industry average growth rate. GM was the top-selling global automaker in China in 2007, with 1.03 million vehicles sold -- becoming the first global automaker to exceed 1 million vehicle sales. Sales in India also set records with an annual volume growth of 74%, driven by the recent launch of the Chevrolet Spark and strong performances by the Chevrolet Tavera, Aveo and Optra. * In the Latin America, Africa and Middle East region, GM sales reached an all-time record 1.23 million vehicles, exceeding 1 million vehicles for the second time, up 19% in volume compared with 2006. For the quarter, 341,000 vehicles were sold, up 18%. GM saw volume increases in most major Latin America, Africa and Middle East markets in 2007. GM Brazil set an all-time domestic sales record with 499,000 vehicles delivered. The Chevrolet Corsa, Aveo and Celta were the three top sellers across the region in 2007. * In Europe, GM's record sales -- for the second year -- exceeded 2.18 million vehicles, up about 9%. Sales for the quarter of 529,000 vehicles were up 11%, exceeding the industry average. Full-year sales in Russia set an all- time record for the company by nearly doubling, up 95%. Sales volume in Russia exceeded a quarter million vehicles. Opel/Vauxhall, Chevrolet and Cadillac reported sales growth in Europe. Strong performance by the new Corsa, Astra, Meriva and Zafira led Opel/Vauxhall sales to more than 4% growth. Chevrolet achieved record sales of 458,000 vehicles, up nearly 34%. Cadillac sales were up 45%. Saab sold nearly 85,000 vehicles. Several of GM's regional brands also experienced notable growth in 2007. Saturn sales in North America were up 8% compared with 2006, largely on the popularity of the new 2007 AURA, AURA Hybrid, SKY, OUTLOOK, VUE, and VUE Green Line Hybrid. GM Holden sold 158,000 vehicles in 2007 as the Commodore remained Australia's best-selling car for the 12th consecutive year. Holden held its second-place position in the country's automotive market. 2008 marks Holden's 60th anniversary producing Australia's first locally-developed vehicle. About GM Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 9, 2007, Moody's Investors Service affirmed its rating for General Motors Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity rating) but changed the outlook to Stable from Positive. In an environment of weakening prospects for US auto sales GM has announced that it will take a non-cash charge of US$39 billion for the third quarter of 2007 related to establishing a valuation allowance against its deferred tax assets (DTAs) in the US, Canada and Germany. As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007, following agreement on the new labor contract. S&P said the outlook is stable. PROPEX INC: Wants to Employ Houlihan Lokey as Financial Advisor --------------------------------------------------------------- Propex Inc. and its debtor-affiliates ask authority from the U.S. Bankruptcy Court for the Eastern District of Tennessee to employ Houlihan Lokey Howard & Zukin Capital, Inc., as their financial advisor and investment banker in their Chapter 11 cases. Lee McCarter, executive vice president and chief financial officer of Propex, Inc., relates that the Debtors selected Houlihan Lokey to serve as their financial advisor because the firm has gained substantial knowledge of the Debtors' financial and operational condition during its prepetition representation of the Debtors. As the Debtors' financial advisor and investment banker, Houlihan Lokey will: * assist the Debtors in the development, preparation and distribution of selected information, documents and other materials; * solicit and evaluate indications of interest and proposals regarding any transaction from current and potential lenders; * assist the Debtors with the development, structuring, negotiation and implementation of any transaction; * assist in valuing the Debtors' assets or operations, provided that any real estate or fixed asset appraisals will be undertaken by outside appraisers, separately retained and compensated by the Debtors; * provide expert advice and testimony regarding financial matters related to any transaction; * advise and attend meetings of the Debtors' Board of Directors, Debtors' creditor groups, official constituencies and other interested parties, as the Debtors determine to be necessary or desirable; and * provide other financial advisory services as may be agreed upon by the firm and the Debtors. Furthermore, Houlihan Lokey intends to work closely with other professionals retained by the Debtors to avoid unnecessary duplication of services performed for or charged to the Debtors' estates, according to Mr. McCarter. For the services contemplated to be rendered by Houlihan Lokey, the Debtors will pay the firm these fees: (a) A non-refundable US$150,000 initial fee (b) A US$150,000 fee for the first three months of the firm's retention and a US$125,000 monthly fee thereafter. (c) Subject to the Court's consent, a US$2,812,500 transaction fee in the event that a plan of reorganization in the Debtors' cases is confirmed. Six Houlihan Lokey professionals are presently expected to have primary responsibility for providing services to the Debtors: 1. P. Eric Siegert 2. Jonathan Cleveland 3. Derek Pitts 4. Quincy Evans 5. Ishreth Hassen 6. Drew Talarico The Debtors will also reimburse the firm for expenses it may incur in connection with its contemplated serves, including travel costs and temporary employment of additional staff. Houlihan Lokey has been representing the Debtors since October 2007 in connection with one or more financing transactions for the Debtors, Mr. McCarter notes. According to papers filed with the Court, managing director Jonathan Cleveland relates that through the Debtors' bankruptcy filing, Houlihan Lokey has been paid US$450,000,000 in fees and reimbursed for US$26,840 of expenses in accordance with the Original Employment Agreement. Mr. Cleveland assures the Court that his firm is a "disinterested person," as the term is defined in Section 101(14) of the Bankruptcy Code. About Propex Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in North America, Europe, and Brazil. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX INC: Wants to Employ Miller & Martin as Local Counsel ------------------------------------------------------------ Propex Inc. and its debtor-affiliates ask the authority of the U.S. Bankruptcy Court for the Eastern District of Tennessee to employ Miller & Martin as their local counsel in their Chapter 11 cases. Prior to bankruptcy filing, Miller & Martin PLLC had been engaged in a matter involving: (a) certain contractual issues related to Propex, Inc., and its sales representatives, and (b) the review of certain executive compensation and employee benefit issues. Lee McCarter, executive vice president and chief financial officer of Propex, Inc., relates that the Debtors selected Miller & Martin because of the firm's knowledge and experience in bankruptcy and corporate matters for which the firm is being employed. As the Debtors' local counsel, Miller & Martin will represent the Debtors in pursuing matters that are relevant to the Chapter 11 cases and will advise the Debtors on these matters. Four professionals are presently expected to have primary responsibility for providing services to the Debtors: Professional Hourly Rate ------------ ----------- Shelley D. Rucker US$350 Nicholas Whittenburg US$305 Craig Smith US$200 Tanya English US$185 The Debtors will also reimburse the firm for expenses it may incur, including travel costs and temporary employment of additional staff, relating to any work undertaken. Prior to bankruptcy filing, Miller & Martin received a US$32,558 retainer from the Debtors. Payments received during the 12 months prior to the Petition Date were for services unrelated to the filing of the Chapter 11 cases. Miller & Martin applied from the retainer US$20,000 to fees and US$5,195 for filing fees prior to the Petition Date to pay for fees and expenses incurred in contemplation of the cases. The balance of the retainer will be applied in payment of postpetition fees and expenses only after approval from the Court. Shelley D. Rucker, Esq., a partner at Miller & Martin, assures the Court that her firm is a "disinterested person," as the term is defined in Section 101(14) of the Bankruptcy Code. About Propex Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in North America, Europe, and Brazil. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News, Issue No. 1; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) PROPEX INC: Court Approves US$60 Million Credit Facility -------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Tennessee has approved Propex Inc. and its debtor-affiliates' US$60 million credit facility on an interim basis with immediate access to US$20 million as requested by the company, which is available to complement existing cash on hand. This will provide Propex with immediate and sufficient liquidity to operate its business on an ongoing basis. As is customary under Chapter 11 procedures, a final hearing for further funding under the credit facility is scheduled for Feb. 13, 2008. In addition, the Court also approved all other First-Day Motions it considered, including the motion to pay employee wages and benefits and the motion to use the company's existing cash management system which enables Propex's business to continue to operate in a normal manner. "We are pleased to have received the interim Court approval of our US$60 million credit facility and other First-Day Motions as we expected," Joe Dana, President of Propex Inc., said. "We are focusing our efforts on restructuring our balance sheet in order to reduce our debt and emerge from Chapter 11 a stronger and more nimble Propex better able to serve our customers." About Propex Headquartered in Chattanooga, Tennessee, Propex Inc. -- http://www.propexinc.com/-- produces geosynthetic, concrete, furnishing, and industrial fabrics and fiber. It is produces primary and secondary carpet backing. Propex operates in North America, Europe, and Brazil. The company and its debtor-affiliates filed for Chapter 11 protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08- 10249). The debtors' has selected Edward L. Ripley, Esq., Henry J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in Houston, Texas, to represent them. As of Sept. 30, 2007, the debtors' balance sheet showed total assets of US$585,700,000 and total debts of US$527,400,000. (Propex Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) TRW AUTOMOTIVE: Moody's Affirms Ba2 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service has affirmed the ratings of TRW Automotive, Inc. -- Corporate Family Rating, Ba2; senior secured bank credit facilities, Baa3; and senior unsecured notes, Ba3, but revised the rating outlook to negative from stable. As a leading supplier of components and systems to automotive OEMs, the company's business profile has many characteristics that are consistent with the assigned Ba2 Corporate Family rating. The company enjoys a well-diversified revenue base, including long-standing supply arrangements with European and Asian automakers. Continuous investment in new safety product technologies should support future revenue growth, even as automotive demand softens. While the company's refinancing in 2007 resulted in lower debt costs, debt levels remain high and continue to pressure the company's interest coverage measures. The negative outlook reflects concern that in an environment of weakening economic trends in North America and Europe, the company could be challenged to sustain financial metrics consistent with its Ba2 rating. For the LTM period ended Sept. 30, 2007, EBIT/Interest was about 1.7, and debt/EBITDA was about 4.1. While LTM FCF/Debt was negative, Moody's expects the company's fourth quarter free cash flow to be seasonally strong. Recent free cash flow trends have been hurt by timing issues regarding certain customer invoices and growth abroad. However, the company has continued to experience margin pressures and modest free cash flow generation. Moreover, debt levels have remained high resulting from the recent debt refinancing, debt acquired with the Dalphi Metal Espana, S.A. consolidation, and the repurchase of TRW Automotive stock from Northrop Grumman Corporation. Moody's expects the company's safety product focus, and its strong geographic, customer and product diversification to continue to support revenue growth even in the face of weaker automotive demand. While it has generated steady yearly EBITDA levels, the company's ability to materially reduce debt and thereby improve its interest coverage metrics will be challenged by the current automotive environment both in North America and abroad. These challenges include declining OEM production both in North America and abroad, high raw material costs, and negotiated price downs. TRW Automotive will continue to have very good liquidity over the next 12 months. The company's liquidity profile consists of approximately US$473 million of cash and cash equivalents at Sept. 28, 2007, availability under the US$1.4 billion revolving credit facilities was approximately US$600 million, after consideration of letters of credit outstanding and usage under the company's additional borrowing facilities. The company's covenants are not expected to restrict this access over the next twelve months. Moody's expects free cash flow to be positive in 2008 reflecting stable EBITDA performance and capital expenditures consistent with historical trends. Alternative liquidity arrangements will continue to be limited by the current bank liens over substantially all of the company's assets. These ratings were affirmed -- Ba2 Corporate Family rating; -- Ba2 Probability of Default rating; -- Baa3 (LGD2, 17%) rating for the US$1.4 billion combined senior secured domestic and global revolving credit facilities; -- Baa3 (LGD2, 17%) rating for the US$600 million senior secured term loan A; -- Baa3 (LGD2, 17%) rating for the US$500 million senior secured term loan B; -- Ba3 (LGD5, 72%) for the US$500 million senior unsecured notes due 2014; -- Ba3 (LGD5, 72%) for the EUR275 million senior unsecured notes due 2014; -- Ba3 (LGD5, 72%) for the US$600 million senior unsecured notes due 2017; -- SGL-1 Speculative Grade Liquidity Rating The last rating action was on April 26, 2007, when ratings were assigned to the company's senior secured bank credit facilities. Future events that would be likely to improve TRW Automotive's outlook or ratings include further debt and leverage reduction from free cash flow, or improved operating margins resulting from new business wins or productivity improvements. Consideration for upward outlook or rating migration would arise if any combination of these factors were to reduce leverage to under 3.0 or increase EBIT/interest coverage to a level approaching 3.0. Consideration for downward rating migration would arise if any combination of factors were to result in leverage sustained at over 3.5 or if EBIT/ Interest coverage sustained at under 2.0. Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. (NYSE: TRW) -- http://www.trwauto.com/-- is an automotive supplier. Through its subsidiaries, it employs approximately 63,800 people in 26 countries, including Brazil, China, Germany and Italy. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services. UAP HOLDING: Agrium Purchase Deal Gets Antitrust Okay in Canada --------------------------------------------------------------- Agrium Inc. disclosed that the Commissioner of Competition, appointed pursuant to the Competition Act of Canada, has issued a "no-action" letter in respect of Agrium's previously announced agreement for the acquisition of all of the outstanding common stock of UAP Holding Corp. by a wholly owned subsidiary of Agrium. The receipt of the "no-action" letter satisfies the Competition Act condition under the agreement. The tender offer is scheduled to expire at midnight, New York City time, on Feb. 25, 2008, unless the tender offer is extended. As reported in the Troubled Company Reporter on Dec. 5, 2007, UAP Holding Corp. and Agrium Inc. have entered into a definitive agreement for Agrium to acquire UAP. Under the terms of the agreement, a subsidiary of Agrium will commence a tender offer to purchase all of the outstanding common stock of UAP for US$39 per share in cash for an aggregate transaction value of approximately US$2.65-billion, including an estimated US$487- million of assumed debt. Headquartered in Greeley, Colorado, UAP Holding Corp. (NASDAQ:UAPH) -- http://www.uap.com/-- distributes agricultural inputs and professional non-crop products in the United States and Canada. The airline flies to Brazil, Korea and Germany. It markets products including chemicals, fertilizer and seed to farmers, commercial growers and regional dealers. In addition to agricultural input product offering, it provides an array of value-added services, including crop management, biotechnology advisory services, custom fertilizer blending, seed treatment, inventory management and custom applications of crop inputs. During the fiscal year ended Feb. 25, 2007, UAP acquired 50% of its joint venture in UAP Timberland and it acquired a retail distribution location from an independent retail distributor. During fiscal 2007, the company closed on the acquisition of Terral AgriServices Inc. and certain assets of Terral FarmService Inc. and Wisner Elevator Inc. In addition, it acquired certain retail and service assets of AGSCO Inc. and AG Depot Inc. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Standard & Poor's Ratings Services said that the recent announcement by Agrium Inc. (BBB/Stable/--) of potential delays in closing its UAP Holding Corp. (BB-/Watch Pos/--) acquisition will not affect the ratings on Agrium. * BRAZIL: Petrobras Says Tupi Field Paves Way to Other Finds ------------------------------------------------------------ Petroleo Brasileiro SA said that the Tupi gas field would only be the initial sign of the potential reserves that the country has, Telma Marotto and Joao Oliveira at Bloomberg News reports. Chief Executive Officer Jose Sergio Gabrielli said in a Bloomberg Television interview from Davos, Switzerland, that Tupi could be followed by other discoveries in the area. It is one of the world's biggest finds of the past 30 years, Mr. Gabrielli adds. Mr. Gabrielli claimed that they are in preliminary data talks, however, the indications point to big volumes, Bloomberg says. As reported in the Troubled Company Reporter-Latin America on Jan. 24, 2008, Petrobras discovered Jupiter, a large natural gas and condensate field in the Santos Basin's pre-salt layer, which might rival Tupi in size. According to Bloomberg, Jupiter would be the second giant-strike reported by Petrobras in the past 10 weeks. Tupi could produced eight billion barrels of oil and gas, three quarters of the reserves of Kazakhstan's Kashagan field, the largest oil discovery in the last 30 years. Bloomberg relates that the latest discovery might allow Brazil to overpower Mexico and Venezuela as one of the biggest oil producers in Latin America, citing Mr. Gabrielli. In addition, the company is expecting a new regulatory model on exploration units so that more foreign companies will draw attention to Brazil. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, and distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Standard & Poor's Ratings Services assigned BB+ long-term sovereign foreign currency rating and B short-term sovereign foreign currency rating on Brazil. As reported in the Troubled Company Reporter-Latin America on May 14, 2007, Fitch Ratings upgraded Brazil's long-term foreign and local currency sovereign Issuer Default Ratings to 'BB+' from 'BB' and the Country Ceiling to 'BBB-' from 'BB+'. In addition, Fitch affirmed Brazil's Short-term IDR at 'B'. Fitch said the rating outlook is stable. =========================== C A Y M A N I S L A N D S =========================== AFG RELATIVE: Final Shareholders Meeting Is Today ------------------------------------------------- AFG Relative Value Opportunity Overseas Fund Ltd. will hold its final shareholders meeting on Jan. 25, 2008, at 9:00 a.m. at the registered office of the company. These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. AFG Relative's shareholders decided on Dec. 4, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands AZIMUTH DIVERSIFIED: Final Shareholders Meeting Is Today -------------------------------------------------------- Azimuth Diversified Hedge Fusion, Ltd., will hold its final shareholders meeting on Jan. 25, 2008, at 4:15 p.m. at: HSBC Financial Services (Cayman) Limited P.O. Box 1109, George Town Grand Cayman, Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Azimuth Diversified's shareholders decided on Dec. 13, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands BEAR STEARNS: District Ct. Postpones Ruling on Chapter 15 Appeal ---------------------------------------------------------------- The Honorable Robert Sweet of the U.S. District Court for the Southern District of New York postponed decision on the appeal of the Joint Official Liquidators of Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd., and Bear Stearns High-Grade Structured Credit Enhanced Leverage Master Fund, Ltd., relating to the order of the Honorable Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York, denying the Funds' Chapter 15 Petition. Judge Sweet held a hearing on oral arguments of the Appeal on Jan. 16, 2008. After hearing arguments from the Funds' Liquidators and the parties who filed amici curiae briefs, Judge Sweet said he would issue his ruling "later" without giving a definite date, Bloomberg News reports. Abid Qureshi, Esq., at Akin Gump Strauss Hauer, LLP, in New York, told Bloomberg after the hearing that he doesn't expect a decision before July. Simon Lovell Clayton Whicker and Kristen Beighton, the Funds' Liquidators, argued before the District Court that Bankruptcy Judge Lifland was wrong when he denied recognition of the Funds' Cayman Islands liquidation as a "foreign main proceeding." The Liquidators want the District Court to overturn Judge Lifland's decision so that the Funds' U.S.-based assets can be protected while liquidation in the Cayman Islands proceeds. Lawyers representing the investment funds further argued that to deny the Funds Chapter 15 protection would be a blow to the original intent of Chapter 15: to encourage comity, which is the practice of respecting foreign courts, Bloomberg News related. To recall, Judge Lifland ruled in August 2007 that evidence presented by the Liquidators established that the United States, and not the Cayman Islands, is the Funds' "center of main interest." He also ruled that the only adhesive connection the Funds have with the Cayman Islands is the fact that they were registered there. "One of your main problems here is Burton Lifland," Judge Sweet told the Liquidators during the January 16 hearing, according to Bloomberg. Bankruptcy Judge Lifland is one of the authors of Chapter 15. "He's a whiz," Judge Sweet added. Aside from Judge Lifland, the Funds also met oppositions from Jay Westbrook of the University of Texas School of Law, one of the authors of Chapter 15, and two other lawyers who helped draft the law. "These so-called friends of the court appear to have their own axe to grind with respect to hedge funds," the Funds' counsel, Fred Hodara, Esq., at Akin Gump Strauss Hauer, LLP, in New York, said, as related by Bloomberg. He added that the "axe" is losses in the subprime mortgage industry. He said the friends of the court argue that the nature of the funds' failure is a reason to hold their liquidation in the US. "It's a very xenophobic view," Mr. Hodara told Bloomberg. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On Aug. 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than US$100,000,000 each. (Bear Stearns Funds Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) BLUECREST EQUITY: To Hold Final Shareholders Meeting Today ---------------------------------------------------------- Bluecrest Equity Fund Limited will hold its final shareholders meeting on Jan. 25, 2008, at 9:00 a.m. at: Close Brothers (Cayman) Limited 4th Floor, Harbor Place George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Bluecrest Equity's shareholders decided on Nov. 27, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: John Sutlic Attention: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbor Place P.O. Box 1034, Grand Cayman, KYI-1102 Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 BLUECREST EQUITY MASTER: Final Shareholders Meeting Is Today ------------------------------------------------------------ Bluecrest Equity Master Fund Limited will hold its final shareholders meeting on Jan. 25, 2008, at 9:30 a.m. at: Close Brothers (Cayman) Limited 4th Floor, Harbor Place George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Bluecrest Equity's shareholders decided on Nov. 27, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: John Sutlic Attention: Kim Charaman Close Brothers (Cayman) Limited Fourth Floor, Harbor Place P.O. Box 1034, Grand Cayman, KYI-1102 Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 BNS INT'L: Holding Final Shareholders Meeting Today --------------------------------------------------- BNS International, Ltd., will hold its final shareholders meeting on Jan. 25, 2008, at 3:15 p.m. at the registered office of the company. These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. BNS International's shareholders decided on Dec. 12, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands CC ONE: Will Hold Final Shareholders Meeting Today -------------------------------------------------- C.C. One Cayman will hold its final shareholders meeting on Jan. 25, 2008, at: Maples Finance Limited Boundary Hall, Cricket Square George Town, Grand Cayman Cayman Islands These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. C.C. One's shareholders decided on Oct. 26, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Daniel Rewalt Giles Le Sueur Maples Finance Limited Boundary Hall, Cricket Square George Town, Grand Cayman Cayman Islands CENTERRA GOLD: Proofs of Claim Filing Ends Today ------------------------------------------------ Centerra Gold Investments Inc.'s creditors are given until Jan. 25, 2008, to prove their claims to Richard L. Finlay, 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. Centerra Gold's shareholders agreed on Dec. 5, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay Conyers Dill & Pearman, Cayman George Town, Grand Cayman Cayman Islands Contact for inquiries: Krysten Lumsden P.O. Box 2681, George Town Grand Cayman, Cayman Islands Telephone: (345) 945 3901 Fax: (345) 945 3902 EQUIFIN CAPITAL: To Hold Final Shareholders Meeting Today --------------------------------------------------------- Equifin Capital Partners, Ltd., will hold its final shareholders meeting on Jan. 25, 2008, at 4:15 p.m. at the registered office of the company. These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Equifin Capital's shareholders decided on Dec. 13, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands FC FUNDING: Final Shareholders Meeting Is Today ----------------------------------------------- FC Funding Limited will hold its final shareholders meeting on Jan. 25, 2008, at 3:15 p.m. at the registered office of the company. These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. FC Funding's shareholders decided on Dec. 12, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands FONDREN PARTNERS: Final Shareholders Meeting Is Today ----------------------------------------------------- Fondren Partners Offshore Ltd. will hold its final shareholders meeting on Jan. 25, 2008, at 12:30 p.m. at the registered office of the company. These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Fondren Partners' shareholders decided on Dec. 7, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands FRM GARTMORE: Final Shareholders Meeting Is Today ------------------------------------------------- FRM Gartmore Hedge Fund Limited will hold its final shareholders meeting on Jan. 25, 2008, at 3:15 p.m. at the registered office of the company. These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. FRM Gartmore's shareholders decided on Dec. 13, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands GLOBAL ALPHA: To Hold Final Shareholders Meeting Today ------------------------------------------------------ Global Alpha Alliance Class E Ltd. will hold its final shareholders meeting on Jan. 25, 2008, at 3:45 p.m. at the registered office of the company. These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Global Alpha's shareholders decided on Dec. 13, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman KY1-9002 Cayman Islands GOLD CUBED: Proofs of Claim Filing Deadline Is Today ---------------------------------------------------- Gold Cubed Limited's creditors are given until Jan. 25, 2008, to prove their claims to David Dyer, 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. Gold Cubed's shareholders agreed on Dec. 7, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: David Dyer Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square, Grand Cayman KY1-1104 Cayman Islands GOLD CUBED II: Proofs of Claim Filing Ends Today ------------------------------------------------ Gold Cubed II Limited's creditors are given until Jan. 25, 2008, to prove their claims to David Dyer, 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. Gold Cubed's shareholders agreed on Dec. 7, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: David Dyer Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square, Grand Cayman KY1-1104 Cayman Islands GOTHAM SELECT: Holding Final Shareholders Meeting Today ------------------------------------------------------- Gotham Select Fund International will hold its final shareholders meeting on Jan. 25, 2008, at 3:45 p.m. at the registered office of the company. These agendas will be taken during the meeting: 1) accounting of the winding-up process; and 2) authorizing the liquidators to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Gotham Select's shareholders decided on Dec. 13, 2007, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane Derrie Boggess &nbs