T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, January 31, 2008, Vol. 8, Issue 22 Headlines A R G E N T I N A ALITALIA SPA: Cargo Traffic Down 7.8% in December 2007 ALITALIA SPA: Deutsche Lufthansa May Bid for Malpensa Slots BANCO HIPOTECARIO: Commences Tender Offer of Up to US$56 Million FIDEICOMISO FINANCIERO: Moody's Gives Debt Securities Ba3 Rating FIDEICOMISO (SECUPYME): Moody's Puts B1 Currency Rating FORD MOTOR: At Ease with Tata Motors' Jaguar Brand Acquisition GRAN MANZANA: Trustee Filing General Report Tomorrow KONINKLIJKE AHOLD: Posts EUR6.6 Bln Net Sales in 4th Qtr 2007 NOSSE BOX: Proofs of Claim Verification Ends Tomorrow PAN AMERICAN: Reports Increase in Cerro Dragon Reserves SUN MICROSYSTEMS: Launching Package Software in Brazil TYSON FOODS: Earns US$34 Million in Quarter Ended Dec. 29 B A H A M A S METROPOLITAN BANK: Board Appoints Elizabeth D. Bondad as VP TUPPERWARE BRANDS: Year-Over-Year 4Q Sales Up 19% to US$577-Mln B E R M U D A INTELSAT LTD: Increased Leverage Cues Moody's to Cut CFR to Caa1 B O L I V I A COEUR D'ALENE: Reviews Strategic Alternatives for Rochester Mine B R A Z I L AAR CORP: Appoints Donald J. Wetekam as VP for MRO Segment BANCO MODAL: Moody's Assigns Preliminary Junk & Low B Ratings BANCO NACIONAL: Approves BRL95MM Loan for Beberibe Wind Farm BANCO NACIONAL: Grants BRL95.2-Mln Loan to Companhia Brasileira BANCO VOTORANTIM: Fitch Affirms Individual Rating at C/D BRASIL TELECOM: Earns BRL205.6 Million for Fourth Quarter 2007 BUCKEYE TECH: Earns US$13.8 Mil. in Quarter Ended Dec. 31, 2007 COMPANHIA SIDERURGICA: Targets June for 1st Phase Completion COSAN SA: Keen on Acquiring Esso's South American Assets DELPHI CORP: Court Allows Committee Participation in Exit Loan DELPHI CORP: Court Grants Final Approval of MDL Settlements GOL LINHAS: Board Okays Share Buyback Program & Dividend Policy HERCULES INC: Full Year Net Income Drops to US$28.5 Mln in 2007 IWT TESORO: Court Approves US$12.6-Million Sale to New Stream JAPAN AIRLINES: To Boost Domestic Air Cargo Rates by 10% PROPEX INC: Section 341(a) Creditors Meeting Set for March 4 PROPEX INC: US Trustee Appoints Five-Member Creditors' Committee SANYO ELECTRIC: To Dissolve TV Joint Venture with Quanta * BRAZIL: Petroleo Brasileiro Wants Esso's South American Assets C A Y M A N I S L A N D S AVENDIS GLOBAL: Grand Court Hearing Wind-Up Petition Tomorrow CHINA ALPHA: Proofs of Claim Filing Ends on Feb. 7 CONTRA FUND: Proofs of Claim Filing Is Until Feb. 7 EARLSWOOD LTD: Proofs of Claim Filing Deadline Is Feb. 7 LOVAT INVESTMENTS: Proofs of Claim Filing Ends on Feb. 7 PAI HEDGED: Proofs of Claim Filing Deadline Is Feb. 6 PARMALAT SPA: Auditor Says Ex-CFO Alerted on Accounting Hole PHZ GLOBAL: Proofs of Claim Filing Ends on Feb. 6 STABLE CREST: Proofs of Claim Filing Deadline Is Feb. 7 VISTA GENERAL: Proofs of Claim Filing Is Until Feb. 3 WILDRIVER FINANCE: Proofs of Claim Filing Deadline Is Tomorrow C H I L E NORSKE SKOGINDUSTRIER: Refutes S&P's BB Credit Rating Level NORSKE SKOG: Strong Norwegian Currency Impacts Operating Result ROCK-TENN CO: Moody's Confirms Ba3 Rating; Puts Ba2 on New Debt C O L O M B I A BANCOLOMBIA SA: Earns COP79.7 Million in December 2007 C O S T A R I C A ANIXTER INT'L: Reports US$9.7MM Net Income in Qtr. Ended Dec. 28 D O M I N I C A N R E P U B L I C JETBLUE AIRWAYS: Incurs US$4 Million Net Loss in Fourth Quarter PRC LLC: Wants Jenner & Block as Special Conflicts Counsel PRC LLC: Wants to Hire CXO LLC as Restructuring Advisors PRC LLC: Wants Court Nod on Evercore Group as Investment Bankers E C U A D O R PETROECUADOR: Launches Contract Renegotiation with 5 Oil Firms * ECUADOR: Receives US$1.6 Million Financing from MIF M E X I C O EL POLLO: Improved Liquidity Cues Moody's to Confirm B3 Rating DURA AUTOMOTIVE: Seeks Ct. Consent for US$170MM Replacement Loan FLEXTRONICS: Adjusted Net Income Up 84% to US$250MM in December GREAT PANTHER: Output Increases 109% in 2007 GRUPO MEXICO: Earns US$207 Million in Fourth Quarter 2007 HARMAN INTERNATIONAL: Names John Stacey as VP & Chief HR Officer MAZDA MOTOR: Launches Fully Redesigned Atenza MOVIE GALLERY: Court Moves Exclusive Plan-Filing Period to June MOVIE GALLERY: Disclosure Statement Hearing Adjourned to Feb. 5 MOVIE GALLERY: Wants to Perform Under Plan Support Pact SUN MICROSYSTEMS: Managed Services Would be 35% of Revenues U.S. STEEL: Board Increases Dividend Up to US$0.25 Per Share U.S. Steel: Reports US$35 Million Net Income in Fourth Qtr. 2007 P A N A M A CHIQUITA BRANDS: Moody's Affirms B3 Corporate Family Rating NCO GROUP: Moody's Puts Ba3 Rating on US$139 Million Add-On Loan * PANAMA: Fitch Affirms BB+ Issuer Default Ratings P E R U * PERU: Receives US$1.6 Million Financing from MIF P U E R T O R I C O ADELPHIA COMMS: Distributing US$216 Million & 737,476 Shares CHATTEM INC: Fiscal Year 2007 Net Income Up to US$59.7 Million ELECTRONIC DATA: Inks Management Deal with Breast Cancer Org. LIN TV: Signs Pact with Cable One for Analog Retransmission PILGRIM'S PRIDE: Posts US$32.3MM Net Loss in First Quarter 2008 SEARS HOLDINGS: CEO's Planned Departure Won't Affect S&P Ratings V E N E Z U E L A ARVINMERITOR INC: Fitch Drops Issuer Default Rating to B from B+ ARVINMERITOR: Incurs US$1MM Net Loss from Continuing Operations PEABODY ENERGY: Board Declares US$0.06 Per Share Dividend PETROLEOS DE VENEZUELA: Says Nation Safe from Economic Slowdown * VENEZUELA: Faces Food Supply Problems, Says Nelson Maldonado - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Cargo Traffic Down 7.8% in December 2007 ------------------------------------------------------ Alitalia S.p.A.'s December 2007 traffic data compared to the same period in 2006 showed no difference in passenger business and a decrease in cargo business. Passenger business showed traffic in line with the same period of 2006 (+0.1%) with an increase of capacity offered by 0.7%. December 2007 Cargo statistics, compared to December 2006, showed a decrease in terms of goods flown (-7.8%) with capacity offered down 5.7%. Passengers Operations Traffic, measured in Revenue Passenger Kilometers, showed levels in line with 2006 (+0.1%) and the capacity, measured in Available Seat Kilometres, increased by 0.7%. Therefore load factor decreased by 0.4 percentage points reaching 68.6%. Alitalia carried 1.8 million passengers, up 1.2% compared to the previous year. Detailed comparisons with December 2006: -- Domestic Passenger Network: traffic increased by 3.9% with offered capacity up 6.2%. Load factor was 59.8%; -- International Passenger Network: traffic decreased by 1.3% and offered capacity decreased by 0.7%. Load factor was 62.6%. -- Intercontinental Passenger Network: traffic (-0.2%) and capacity offered (-0.1%) showed levels in line with 2006. Load factor was 76.6%. Cargo Operations December 2007 Cargo performance showed, compared to December 2006, a traffic decrease by 7.8% (traffic, measured in terms of Revenue Ton Kilometers) while capacity was down 5.7%. Overall Load factor was 71.2% with a decrease by 1.7 percentage points. Regarding the All-Cargo sector, Load factor was 82.2% with an increase by 5.6 percentage points compared with the same period of 2006. 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. ALITALIA SPA: Deutsche Lufthansa May Bid for Malpensa Slots ----------------------------------------------------------- Deutsche Lufthansa AG mulls bidding for some of Alitalia S.p.A.'s slots at Milan's Malpensa airport, Marco Bertacche writes for Bloomberg News, citing an unsourced La Stampa report. According to La Stampa, Lufthansa plans to make Malpensa as its southern European hub, adding that the German carrier's executives will meet Jan. 29, 2008, with airport slot regulator Assoclearance, to discuss flights at the Milan airport. Alitalia has until Jan. 31, 2008, to confirm the Malpensa slots it wants to keep. As reported on Jan. 17, 2008, 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. BANCO HIPOTECARIO: Commences Tender Offer of Up to US$56 Million ---------------------------------------------------------------- Banco Hipotecario S.A. has commenced a tender offer to purchase for cash up to US$56 million aggregate principal amount of its U.S. Dollar-Denominated Notes due 2013 and up to the equivalent of US$56 million aggregate principal amount of its Euro- Denominated Notes due 2013. Banco Hipotecario will conduct the Tender Offer in accordance with the terms and conditions described in its Offer to Purchase dated Jan. 29, 2008. The Tender Offer will expire at 11:59 p.m., New York City time on Feb. 27, 2008, unless extended or earlier terminated. If the amount of validly tendered Eligible Notes for both series is greater than the Offer Amounts for such series, there will be a specific proration factor for each series based on the amount of validly tendered Eligible Notes for each series. If the amount of Eligible Notes validly tendered for one series is less than the Offer Amount for such series and the amount of Eligible Notes validly tendered for the other series exceeds the Offer Amount for such other series, the bank will increase the Offer Amount for the oversubscribed series by an amount equal to the difference between the Offer Amount for the undersubscribed series and the amount of validly tendered Eligible Notes of such series. The bank will then calculate the proration factor for the oversubscribed series, if any, based on the Offer Amount for such series, as so increased. Holders who validly tender Eligible Notes on or prior to 5:00 p.m., New York City time, on Tuesday, Feb. 12, 2008, will be paid US$865 for each US$1,000 principal amount of USD Long Term Notes, plus an early tender premium of US$30 for a total of US$895, and EUR855 for each EUR1,000 principal amount of euro Long Term Notes, plus an early tender premium of EUR30 for a total of EUR885. Holders who validly tender Eligible Notes after Feb. 12, 2008, but on or prior to Feb. 27, 2008, will not receive an early tender premium and will be paid US$865 for each US$1,000 principal amount of USD Long Term Note and EUR855 for each EUR1,000 principal amount of euro Long Term Notes. In addition, Banco Hipotecario will pay accrued and unpaid interest on Eligible Notes validly tendered and accepted from the last interest payment date to, but excluding, the date set for settlement of the Tender Offer per the terms of the Offer to Purchase. Holders who validly tender Eligible Notes have withdrawal rights only until Feb. 12, 2008, unless Banco Hipotecario materially modifies the terms of the Tender Offer as described in the Offer to Purchase under "Terms of the Offer-Withdrawal Rights." Upon the expiration of the Early Tender Deadline on Feb. 12, 2008, holders will not be able to withdraw their tenders received by a Designated Clearing System or the Luxembourg Depositary per the terms of the Offer to Purchase. Banco Hipotecario's obligation to consummate the Tender Offer is conditioned upon certain conditions set forth in the Offer to Purchase. Deutsche Bank Securities Inc. is acting as the Dealer Manager for the Tender Offer, Deutsche Bank Luxembourg S.A. is acting as the Luxembourg Depository and Global Bondholder Services Corporation is acting as the Information Agent and Depositary, each for the Tender Offer. Questions may be directed to Deutsche Bank Securities Inc. toll free at (866) 627-0391 or collect at (212) 250-2955, attention: Liability Management Group. Requests for documents should be directed to the Information Agent toll free at (866) 873-5600 or collect at (212) 430-3774. Headquartered in Buenos Aires, Argentina, Banco Hipotecario SA -- http://www.hipotecario.com.ar-- is an Argentinean commercial bank and specialty mortgage provider. Banco Hipotecario' business lines include credit lines for consumers, short-term financing for exporting companies, factoring services, deposit accounts, purchase and sale of foreign currency, custodial services, safe deposit box rentals, payroll bank accounts, securities brokerage services and sales of insurance through authorized agents and companies. The bank launched this new series of products and services as an alternative to its mortgage loans business, which as a result of the economic crisis, came to a temporary halt in 2002. In late 2003, and in the light of the favorable trends shown by economic variables, Banco Hipotecario started to offer new housing mortgage loans. The bank's subsidiaries consist of BHN Sociedad de Inversion Sociedad Anonima. * * * As reported in the Troubled Company Reporter-Latin America on June 21, 2007, Moody's Investors Service assigned a Ba1 global local currency debt rating to Banco Hipotecario's US$200 million senior unsecured Argentine peso-linked notes, which are due in 2010. Moody's also assigned a Aa1.ar local currency rating in the Argentine national scale to the notes. Moody's said the outlooks on the ratings are stable. FIDEICOMISO FINANCIERO: Moody's Gives Debt Securities Ba3 Rating ---------------------------------------------------------------- Moody's Latin America has assigned a rating of Aaa.ar (Argentine National Scale) and a Ba3 (Global Scale, Local Currency) to the Debt Securities of Fideicomiso Financiero Tarjeta Privada IX, issued by Banco de Valores S.A. (acting solely in its capacity as Trustee). Moody's also assigned a rating of Ca.ar (Argentine National Scale) and Ca (Global Scale, Local Currency) to the subordinated Certificates. The securities are backed by a pool of credit card receivables originated by Banco Privado de Inversiones S.A. located in Argentina. Interest and principal on the VDF are payable from the cash flow of the credit card receivables. The ratings assigned are based on these factors: -- The credit quality of the securitized pool; -- The credit enhancement provided through the 20% initial subordination level; -- The ability of Banco Macro Bansud to act as backup servicer in the transaction; -- The availability of several reserve funds; and, -- The legal structure of the transaction. Structure Banco de Valores S.A. (Issuer and Trustee) issued one class of peso-denominated, floating-rate bonds and a residual certificate, all of them backed by a pool of credit card receivables originated by Banco Privado. The VDF original balance is equal to 80% of the original issuance amount. The transaction has an expected maturity of 11 months. At closing, the VDF were backed by credit card outstanding balances generated by eligible accounts. The ownership of those accounts remains with the originator but the receivables are assigned to the trust. The transaction has five reserve funds: an expense fund, a liquidity reserve fund, a backup servicer replacement fund, and sinking funds for interest and principal. During the first four months after closing, only interest is paid monthly to VDF investors. The VDF will bear a floating interest rate (Badlar + 375 bps) with a minimum rate of 18% and a maximum rate of 27%. If an early amortization event occurs, the revolving period will terminate automatically. Beginning in the fifth month after closing, scheduled interest and principal will be paid in that order, on each payment date. Principal is scheduled to be paid in seven monthly installments. If the scheduled principal is not paid on time, it will not constitute an event of default under the terms of the transaction documents, given that the promise to investors is to receive ultimate principal before the legal final maturity date. During the revolving period, collections will not be transferred to the trust account but there will be an offset between the collections to be submitted and the new receivables assigned to the trust. This procedure was established to minimize trust expenses. Seller and Servicer Banco Privado de Inversiones SA is the seller of the receivables and the primary servicer of the transaction. The bank was founded in 1993 to provide financial services to the middle-high and high-income segment of the market. In 1996, the bank began issuing MasterCard and Visa credit cards to its customers. Banco Macro Bansud S.A. is the designated backup servicer. If a servicer replacement trigger is hit, the trustee is obligated to immediately notify Banco Macro and Visa and MasterCard. The trustee, who receives pool and borrower data from the servicer on a monthly basis, will transfer this information to the backup servicer. In addition, Visa and MasterCard will also have duplicate data, which they can transfer to Banco Macro, if necessary. Given that the bank is a member of the Visa and MasterCard system, the transfer of data should be straightforward. Banco Macro will be entitled to receive this information as the new owner of the accounts according to the conditional assignment contract which will become effective upon the occurrence of a servicer replacement event. Thus, even if Banco Privado's membership in the Visa and MasterCard networks is terminated, credit card customers will not have their credit lines suspended. The servicer will transfer collections to the trust account on a weekly basis. As a result, there is one week of commingling risk at the originator/servicer level which may affect the deal should the originator/servicer enter into a reorganization procedure. This risk is mitigated by the ability of Banco Macro, once it is appointed as backup servicer, to service the receivables, and by the servicer replacement reserve account that will be funded at closing with 0.5 times the next interest payment. Credit Enhancement Moody's considered the credit enhancement provided in this transaction through an initial subordination level of 20%, as well as the historical performance of Banco Privado's pools. In addition, Moody's considered factors common to all credit card securitizations such as monthly principal payment rate, charge offs, delinquencies and dilution, and specific factors related to the Argentine market, such as the probability of a decrease of the monthly payment rate and changes in the macroeconomic scenario. The factors mentioned above are simulated in stress situations, based on the variability that they have shown in the past and on stress scenarios consistent with the rating levels assigned. Rating Action Originator: Banco Privado de Inversiones SA -- US$20.8 Million Pesos in Floating Rate Securities of "Fideicomiso Financiero Tarjeta Privada IX", VDF rated Aaa.ar (National Scale Rating) and Ba3 (Global Scale, Local Currency). -- US$5.2 Million Pesos in Certificates of "Fideicomiso Financiero Tarjeta Privada IX", CP rated Ca.ar (National Scale Rating) and Ca (Global Scale, Local Currency). FIDEICOMISO (SECUPYME): Moody's Puts B1 Currency Rating ------------------------------------------------------- Moody's Latin America has assigned a rating of Aa3.ar (Argentine National Scale) and of B1 (Global Scale, Local Currency) to the debt securities of Fideicomiso Financiero SECUPYME INDUSTRIA I issued by Banco de Valores S.A. -- acting solely in its capacity as Issuer and Trustee. The rated securities are backed by a pool of bills of exchange signed by small and middle size companies located in Argentina. The bills of exchange are guaranteed by Garantizar S.G.R., which is a financial guarantor in Argentina. Garantizar has a rating of Aa3.ar (Argentine National Scale) and of B1 (Global Scale, Local Currency). The rating assigned to this transaction is primarily based on the rating of Garantizar. Therefore, any future change in the rating of the guarantor may lead to a change in the rating assigned to this transaction. The rating addresses the payment of interest and principal on or before the legal final maturity date of the securities. Banco de Valores S.A. (Issuer and Trustee) issued one class of debt securities denominated in Argentine pesos. The rated securities will bear a BADLAR interest rate plus 450 basis points. The Floating Rate Debt Securities' interest rate will never be higher than 27% or lower than 17%. The rated securities will be repaid from cash flow arising from the assets of the Trust, constituted by a pool of floating rate bills of exchange denominated in Argentine pesos signed by small and middle size companies and guaranteed by Garantizar S.G.R. The bills of exchange will bear the same interest rate as the rated securities. If, eight days before each payment date, the funds on deposit in the trust account are not sufficient to make payments to investors, the Trustee is obligated to request Garantizar to make payment under the bills of exchange. Garantizar, in turn, will have five days to make this payment into the trust account. Under the terms of the transaction documents, the trustee has up to two days to distribute interest and principal payments to investors. Interest on the securities will accrue up to the date on which the funds are initially deposited by either Garantizar, or the small and middle size companies. FORD MOTOR: At Ease with Tata Motors' Jaguar Brand Acquisition -------------------------------------------------------------- Ford Motor Company anticipates a return of its Jaguar brand to profitability once it is sold, together with the Land Rover brand, to preferred bidder Tata Motors Ltd., insisting that its management is at ease at Tata Motor's operational capabilities, John Griffiths of the Financial Times in London reports citing Ford Director of Design Ian Callum. As reported in the Troubled Company Reporter on Jan. 4, 2008, Lewis Booth, executive vice president for Ford of Europe and Premier Automotive Group (Chairman - Jaguar, Land Rover, Volvo and Ford of Europe) stated that Ford is committed to focused detailed talks with Tata Motors on the potential sale of its Jaguar and Land Rover brands. He related that while no final decision has been made, Ford will proceed with further substantive discussions with Tata Motors over the coming weeks with a view to securing an agreement that is in the best interests of all parties concerned. 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. GRAN MANZANA: Trustee Filing General Report Tomorrow ---------------------------------------------------- Norberto Aurelio Alvarez, the court-appointed trustee for Gran Manzana S.R.L.'s bankruptcy proceeding, will present in the National Commercial Court of First Instance in San Nicolas, Buenos Aires, a general report containing an audit of the company's accounting and banking records on Feb. 1, 2008. Mr. Alvarez verified creditors' proofs of claim until Oct. 3, 2007. He presented the validated claims in court as individual reports on Nov. 15, 2007. Mr. Alvarez is in charge of administering Gran Manzana's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Norberto Aurelio Alvarez Rodriguez Pena 189 Buenos Aires, Argentina KONINKLIJKE AHOLD: Posts EUR6.6 Bln Net Sales in 4th Qtr 2007 ------------------------------------------------------------- Koninklijke Ahold N.V. disclosed consolidated net sales of EUR6.6 billion for the fourth quarter ended Dec. 30, 2007. Compared to the fourth quarter of 2006, net sales increased by 0.2% and increased by 6.5% at constant exchange rates. For the full year, consolidated net sales of EUR28.2 billion were 1.2% higher compared to 2006. At constant exchange rates, consolidated net sales were up 6.1%. In Europe, market conditions were favorable. In the United States, the turbulent economic environment did not have a significant impact on local market conditions. Price investments related to the further rollout of the Value Improvement Program, launched in September 2006 at Stop & Shop and Giant-Landover, will continue to impact margins. For full year 2007, Ahold reiterates that total retail operating margin will be at the higher end of its 4.0% to 4.5% guidance. Sales performance Stop & Shop / Giant-Landover * Fourth Quarter -- net sales increased 2.0% to US$3.9 billion; -- identical sales increased 2.7% at Stop & Shop (1.2% excluding gasoline net sales). Identical sales decreased 0.5% at Giant-Landover, impacted by lower pharmacy sales; -- comparable sales increased 3.1% at Stop & Shop and decreased 0.3% at Giant-Landover. * Full Year -- net sales increased 1.5% to US$16.7 billion; -- identical sales increased 1.3% at Stop & Shop (0.6% excluding gasoline net sales) and decreased 1.1% at Giant-Landover; -- comparable sales increased 1.7% at Stop & Shop and decreased 0.9% at Giant-Landover. Giant-Carlisle * Fourth Quarter -- net sales increased 8.6% to US$1 billion, due in part to the acquisition of the Clemens Markets stores in the fourth quarter of 2006; -- identical sales increased 4.8% (3.8% excluding gasoline net sales); -- comparable sales increased 5.7%. * Full Year -- net sales increased 13.0% to US$4.3 billion, due in part to the acquisition of the Clemens Markets stores in the fourth quarter of 2006; -- identical sales increased 3.7% (3.2% excluding gasoline net sales); -- comparable sales increased 5.1%. Albert Heijn * Fourth Quarter -- net sales increased 12.9% to EUR2 billion, due in part to the acquisition of the Konmar stores in the fourth quarter of 2006; -- net sales at Albert Heijn supermarkets increased 12.6% to EUR1.8 billion; -- identical sales at Albert Heijn supermarkets increased 9.3%. * Full Year -- net sales increased 12.1% to EUR8 billion, due in part to the acquisition of the Konmar stores in the fourth quarter of 2006; -- net sales at Albert Heijn supermarkets increased 12.3% to EUR7.3 billion; -- identical sales at Albert Heijn supermarkets increased 7.9%. Albert/Hypernova (Czech Republic and Slovakia) * Fourth Quarter -- net sales increased 16.7% to EUR427 million (10.8% at constant exchange rates); -- identical sales increased 10.1%. * Full Year -- net sales increased 12.5% to EUR1.6 billion (9.1% at constant exchange rates); -- Identical sales increased 6.8%. Schuitema * Fourth Quarter -- net sales increased 3.1% to EUR773 million; -- identical sales increased 2.0%. * Full Year -- net sales increased 2.4% to EUR3.3 billion; -- Identical sales increased 1.3%. ICA (Unconsolidated joint venture) * Fourth Quarter -- net sales increased 22.1% to EUR2.4 billion, due in part to ICA's acquisition of the full ownership of Rimi Baltic AB in December 2006 (21.9% at constant exchange rates). * Full Year -- net sales increased 22.2% to EUR8.9 billion, due in part to ICA's acquisition of the full ownership of Rimi Baltic AB in December 2006 (22.0% at constant exchange rates). About Ahold Headquartered in Amsterdam, Koninklijke Ahold N.V. (fka Royal Ahold) -- http://www.ahold.com/-- retails food through supermarkets, hypermarkets and discount stores in North and South America, Europe. It has operations in Argentina. The company's chain stores include Stop & Shop, Giant, TOPS, Albert Heijn and Bompreco. Ahold also supplies food to restaurants, hotels, healthcare institutions, government facilities, universities, stadiums, and caterers. * * * As of Nov. 19, 2007, Koninklijke Ahold carries BB+ Issuer Default and senior unsecured ratings from Fitch Ratings. Fitch said the outlook is positive. Its Short-term rating is B. NOSSE BOX: Proofs of Claim Verification Ends Tomorrow ----------------------------------------------------- Fernando Luis Greco, the court-appointed trustee for Nosse Box S.R.L.'s reorganization proceeding, verifies creditors' proofs of claim until Feb. 1, 2008. Mr. Greco will present the validated claims in court as individual reports on March 14, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Nosse Box and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Nosse Box's accounting and banking records will be submitted in court on May 2, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Nov. 25, 2008. The debtor can be reached at: Nosse Box S.R.L. Almirante Segui 1251 Buenos Aires, Argentina The trustee can be reached at: Fernando Luis Greco Arenales 2365 Buenos Aires, Argentina PAN AMERICAN: Reports Increase in Cerro Dragon Reserves ------------------------------------------------------- Pan American Energy told Dow Jones Newswires that reserves at its Cerro Dragon field has increased 100 million barrels of oil equivalent. According to Dow Jones, Pan American will invest some US$1 billion in its Argentine operations in 2008. Pan American told Dow Jones that its oil production increased to 219,640 barrels of oil equivalent a day in 2007 from 121,000 barrels of oil equivalent a day in 2000. Its Acambuco gas production rose to nine million cubic meters a day in 2007, from two million cubic meters a day in 2001. Pan American Energy LLC is the second largest oil and gas producer in Argentina. Also, PAE performs exploration and production activities in Bolivia. Total Fiscal Year 2006 production of 242 thousand barrels of oil equivalent per day was split 51:49 between oil and gas. Bolivia represented 23% of proved reserves and 10% of both production and revenues at FY06. The proved reserve life is 14 years and 60% of reserves are developed. Outside E&P, other assets include participation in oil transportation, storage and loading, gas distribution and power generation in Argentina, Uruguay and Bolivia. Created in 1997 as a Delaware holding company, PAE is owned 60% by BP and 40% by Bridas. The Argentine Branch has historically been PAE's primary subsidiary both in terms of assets and revenues and the entity that assumes most of the financial debt for the whole group. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Fitch Ratings has upgraded the foreign currency Issuer Default Rating of Pan American Energy LLC to 'BB' from 'BB-' and the local currency IDR to 'BB+' from 'BB'. In conjunction with this action, Fitch has upgraded the following debt instruments and subsidiaries. The Rating Outlook for all IDRs is Stable. Approximately US$1.0 billion of debt securities are affected. As reported in the Troubled Company Reporter-Latin America on Oct. 26, 2007, Moody's Investors Service has upgraded Pan American Energy LLC's global local currency issuer rating to Ba1 from Ba2. At the same time, Moody's upgraded Pan American Energy LLC, Argentine Branch's foreign currency note ratings to Ba2 from Ba3. The global local currency rating and foreign currency note ratings have a stable outlook. The company's foreign currency Corporate Family Rating of B2, positive outlook, was not affected by the rating actions, as the foreign currency Corporate Family Rating is constrained by Argentina's B2 ceiling, which has a positive outlook. SUN MICROSYSTEMS: Launching Package Software in Brazil ------------------------------------------------------ Sun Microsystems said in a statement that it is launching a complete package of software in Brazil with US information technology services firm Compuware. Business News Americas relates that the package includes: -- hardware, -- software, -- services, and -- architecture for management of quad play services. According to BNamericas, Sun Microsystems developed streaming service Sun Streaming System, which is ideal for large video services providers that offer infrastructure allowing these applications of IPTV: -- video on demand, -- network personal video recording, -- pay per view, and -- interactivity services. BNamericas notes that Compuware is offering the integrated application Vantage Service Check. It helps suppliers ensure broadband services and offers detailed and real-time monitoring of final user experiences, allowing the operator's customer service to point out the cause of problems affecting: -- high-speed Internet, -- IPTV, -- voice on demand, and -- mobile data services. Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, Singapore, among others. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. TYSON FOODS: Earns US$34 Million in Quarter Ended Dec. 29 --------------------------------------------------------- Tyson Foods, Inc. reported net income of US$34.0 million on US$6.7 billion in sales for the first fiscal quarter ended Dec. 29, 2007, compared to net income of US$57.0 million on US$6.5 billion in sales in the same quarter last year. In the first quarter of fiscal 2008, the company recorded an US$18 million non-operating gain on the sale of an investment. Additionally, Tyson recorded US$6 million of severance charges related to the FAST initiative. "Given all we've faced, we delivered a solid first quarter," said Richard L. Bond, Tyson Foods president and chief executive officer. "Sales were up US$200 million. Our Pork segment delivered one of its best quarters ever with strong volume and operating income nearly double compared to the first quarter of fiscal 2007. We also achieved normalized earnings of nearly 5% in the Prepared Foods segment. The Chicken segment struggled with more than US$100 million in additional grain costs. The Beef segment continues to face a very difficult operating environment, which caused us to make the hard decision to cease slaughter operations at our beef plant in Emporia, Kansas. There continues to be far more beef slaughter capacity than available cattle, and this is especially true for Emporia, as cattle production has moved from eastern to western Kansas. "In November, we projected an additional US$300 million in grain costs for fiscal 2008," Mr. Bond said. "We now think this year- over-year increase will exceed half a billion dollars. Because of these unanticipated and extraordinarily high corn and soybean meal costs, we have no choice but to raise prices substantially. "The continued escalation of grain prices, driven largely by government mandates for corn-based ethanol, has caused a domino effect for other inputs. Cooking oil, flour and other feed ingredients are all on the rise. For the foreseeable future, consumers will pay more and more for food, especially protein, because grain represents a proportionally higher percentage of input costs compared to other foods. "The commodity markets affecting our business are extremely volatile and fluctuating tremendously on a daily basis. For this reason, we have decided to temporarily withdraw our previously issued earnings guidance. In this erratic and unpredictable operating environment, it is virtually impossible to make meaningful earnings forecast assumptions. "We are facing unparalleled market dynamics that make our work very challenging," Bond said. "We continue to believe our strategies are sound, and we'd like to acknowledge Tyson team members for their efforts in executing our business plans." Balance Sheet As of Dec. 29, 2007, the company's balance sheet showed total assets of US$10.2 billion and total liabilities of US$5.4 billion, resulting in a US$4.7 billion stockholders' equity. Equity at Sept. 29, 2007, was US$4.7 billion. About Tyson Foods Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. Tyson's U.S. beef plants are located in Amarillo, Texas; Dakota City, Nebraska; Denison, Iowa; Finney County, Kansas; Joslin, Illinois, Lexington, Nebraska and Pasco, Washington. The company also has a beef complex in Canada, and is involved in a vertically integrated beef operation in Argentina. * * * Tyson Foods Inc. continues to carry Moody's Ba1 corporate family rating and Ba2 probability of default rating. Moody's said the outlook is negative. ============= B A H A M A S ============= METROPOLITAN BANK: Board Appoints Elizabeth D. Bondad as VP ----------------------------------------------------------- Elizabeth D. Bondad will serve as Metropolitan Bank & Trust Co.'s vice president starting February 16, 2008. Ms. Bondad was appointed by the bank's Board of Directors during a meeting held on Monday, January 29. Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like Internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the Philippines, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * Moody's Investors Service gave Metrobank a: * Foreign currency long-term deposit rating of B1 * Foreign currency hybrid tier-1 rating of Ba3 * BFSR of D * Local currency deposit ratings of Baa2/P-2 * Local currency subordinated debt rating of Baa3, foreign currency Not-Prime short-term deposit rating * Foreign currency subordinated debt rating of Ba2 On Sept. 21, 2006, Fitch Ratings upgraded Metrobank's Individual rating to 'D' from 'D/E'. All the bank's other ratings were affirmed: Long-term Issuer Default rating 'BB-' with a stable Outlook; Short-term rating 'B'; and Support rating '3. On March 3, 2006, Standard and Poor's Rating Service assigned a CCC+ rating on Metrobank's US$125-million non-cumulative capital securities, whereas Moody's Investors Service Rating Agency issued a B- rating on the same capital instruments. TUPPERWARE BRANDS: Year-Over-Year 4Q Sales Up 19% to US$577-Mln --------------------------------------------------------------- Tupperware Brands Corporation has reported that fourth-quarter 2007 sales grew 19% year over year (11% in local currency) to US$577 million with strong growth in all five segments ranging from 6% to 18% in local currency. Tupperware Brands Chairperson and Chief Executive Officer, Rick Goings commented, "We are encouraged with the progress we made in the fourth quarter and the full year in further refining and implementing our strategies, which are working and delivering the positive results we expected to support long term growth. This came through in the fourth quarter with our high-teen year- over-year sales increase and our 35% increase in GAAP diluted earnings per share. Our sales and profit were both well ahead of our October outlook." Mr. Goings said, "As we look ahead to 2008, we're planning to capitalize on our year end sales force size advantage of 15% to further grow our businesses, and expect to be in our long-term outlook range for local currency sales growth of 5 to 7% per year. This includes high single, to low double-digit, growth from the 40% to 45% of our businesses that operate in emerging markets and, on average, a low single digit growth rate from the remainder of our businesses that operate in established markets." "We expect to grow net income even more with higher profit from the segments and lower interest expense, as we benefit from the credit agreement we closed at the end of the third quarter, partially offset by a higher but still very favorable income tax rate in the 23% range," Mr. Goings added. Mr. Goings noted, "Included in our 2008 outlook is continued investment to implement our strategies as we further develop our branded portfolio of direct selling companies, working to continue to innovate with our demonstrable product lines, our contemporized selling situations and the right sales force compensation plan in each market." Excluding certain adjustment items, fourth-quarter earnings per share rose to 93 cents from 74 cents in 2006, or 26%. Stronger foreign currencies had a 10-cent positive impact on the year- over-year comparison. Profit from the segments rose 29%, interest expense was lower by over US$3 million, reflecting lower borrowings along with a benefit from the new credit agreement entered into in September, and unallocated expenses rose by US$5 million, largely reflecting higher expenses associated with management incentive programs. The quarter's effective tax rate rose to 17% this year from 10% last year. As of the end of the fourth quarter net debt was down to US$593 million, a reduction of US$88 million from US$681 million at the end of 2006. Net cash provided by operating activities, net of investing activities, for the full year was US$152 million, ahead of October guidance of US$100 to US$110 million. Fourth Quarter Segment Highlights Tupperware Segments In Europe, fourth quarter sales rose by 19% (6% in local currency) over the prior year. The positive sales force trends continued in the emerging markets leading to 22% growth in local currency coming most notably in Russia, Turkey and South Africa. Established markets grew 1% in local currency with Germany achieving a 3% sales increase, following double-digit declines in each of the first three quarters. The total sales force size advantage for the whole segment at the end of the year was 21%. The average active sales force increased 8%. Segment profit increased 33% (18% in local currency) reflecting a greater than 2 point higher return on sales from improved value chains in several of the markets in Western Europe and highermanufacturing volume. Asia Pacific achieved a 24% (16% in local currency) sales increase with emerging markets up 30% in local currency and established markets up 9% led by Australia. The number of active sellers was up 11% led by Indonesia, Australia and Korea. Operating profit increased 48% (36% in local currency) and reflected a 3.7 pp improvement in return on sales. This primarily reflected a higher share of sales from Australia, with its high return on sales, and more efficient expense management by Tupperware Japan, as well as 0.8 pp from lower purchase accounting amortization. In Tupperware North America, 12% (11% in local currency) higher sales, reflected increases in all three markets, the United States, Canada and Mexico. Although there was a drag in the last 2 and 1/2 weeks of December in light of the warehouse fire in the main U.S. warehouse, Tupperware United States and Canada still achieved a 12% local currency sales increase in the quarter. The total sales force size for the whole segment was down at the end of the year, reflecting a decrease in Mexico as the United States had a higher sales force count. Active sellers in the segment were down slightly. There was a 4.5 pp improvement in return on sales that brought the segment's profit up over 100%, mainly reflecting an improved cost structure in the United States. Beauty Segments In the Beauty North America segment, the 13% (12% in local currency) sales increase reflected double-digit increases by both units, Fuller Mexico and BeautiControl North America. Both units also had double-digit total sales force size advantages as of the end of the year, with the segment up 13%. The active sales force was up 10%. Segment profit was up 9% (8% in local currency), reflecting a lower return on sales, principally from gross margin investment at BeautiControl to sell through inventories and higher distribution costs that were about offset by lower purchase accounting amortization. The Beauty Other segment achieved a 30% (18% in local currency) sales increase, reflecting higher sales forces and sales throughout Central and South America, most notably in Venezuela and Brazil. Fuller Philippines also had a double digit sales increase. The Nutrimetics units were down as a group, with the largest Nutrimetics market, Australia, down just slightly, reflecting an improved trend from earlier in the year. The total sales force in the segment was up 12% and the active sales force was up 8% in the quarter. There was a loss of US$0.1 million that included US$1.2 million of purchase accounting amortization. Excluding purchase accounting amortization from both years, profit increased reflecting improved results in the Philippines, Venezuela and Brazil. Full-Year Results For full-year 2007, total company sales grew 14% (9% in local currency), to a record US$2.0 billion versus US$1.7 billion in 2006. The Tupperware brand segments grew by 14% (8% in local currency) and the Beauty brand segments by 12% (10% in local currency). The businesses operating in emerging markets had sales growth of 21% (18% in local currency) and the remaining businesses that operate in established markets had growth of 8% (2% in local currency). Active sellers grew 5% for the year. Profit from the operating segments rose 33% (26% in local currency), 9 points of which was from lower purchase accounting amortization. Diluted earnings per share was US$1.87, up 21% (8% in local currency). Excluding certain adjustment items, full year 2007 diluted earnings per share was US$2.25, up 26% (14% in local currency). 2008 Outlook Full year 2008 sales are expected to increase 8 to 10% (5 to 7% in local currency) and GAAP diluted earnings per share is expected to be US$2.37 to US$2.47, including a 10 to 12 cent benefit versus 2007 from stronger foreign currencies. After adjustments full-year diluted earnings per share is expected to be US$2.50 to US$2.60 up 6% to 10% in local currency. Sales in local currency in the Tupperware brand segments are expected to increase in the mid-single-digit range and in the Beauty brand segments are expected to increase in the high- single-digit range. Excluding certain adjustment items, profit in the segments is expected to grow in line, to slightly above the rate of sales, except in Beauty Other where there was a loss of US$3 million in 2007 and a small profit is expected in 2008. Unallocated corporate costs in 2008 are expected to be about even with 2007's US$44 million; interest expense is expected to be US$33 to US$34 million, versus US$49 million in 2007, which included US$10 million of expense associated with implementing the new credit agreement; and the income tax rate is expected to be about 23%, compared with 17% in 2007 on a GAAP basis and 18% excluding certain items. First Quarter 2008 Outlook First quarter sales are expected to increase 13 to 15% (5 to 7% in local currency) and diluted earnings per share is expected to be 50 to 55 cents versus 32 cents last year. Excluding certain adjustment items diluted earnings per share is expected to be 44 to 49 cents versus 36 cents last year. This includes a 5 to 7 cents benefit versus 2006 from stronger foreign currencies and a lower effective tax rate. Mr. Goings concluded, "Many analysts and investors are concerned about the weakness of the U.S. dollar and the U.S. economy. Upwards of 84% of our sales and even more of our profit come from international markets. This means that our profit rises on dollar weakness, and while we could see some impact from lower consumer spending in the United States, the impact would be less than for many other companies given the size of our businesses here. To date we have not seen issues in our Tupperware United States or BeautiControl businesses related to the consumer spending environment." About Tupperware Headquartered in Orlando, Florida, Tupperware Brands Corporation (NYSE: TUP) -- http://www.tupperware.com/-- is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent sales force of 2.0 million. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand and beauty and personal care products for consumers through the Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde brands. The company has operations in Indonesia, Argentina, Australia, Bahamas, Brazil, China, France, Germany, Philippines, Spain, and Sweden, among others. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 19, 2007, Moody's Investors Service assigned a Ba1 rating to Tupperware Brands Corporation proposed senior secured credit facilities, consisting of a US$200 million revolving credit facility and a US$550 million term loan A, both due 2012. Moody's also affirmed the company's Ba2 corporate family rating and Ba3 probability of default rating, and changed the outlook to positive from stable. ============= B E R M U D A ============= INTELSAT LTD: Increased Leverage Cues Moody's to Cut CFR to Caa1 ---------------------------------------------------------------- Moody's Investors Service has downgraded Intelsat Ltd.'s corporate family rating by two notches to Caa1. The company's speculative grade liquidity rating was downgraded to SGL-3 (adequate liquidity) from SGL-1 (very good liquidity). The rating action reflects the impact of increased leverage resulting from an additional US$5 billion in debt (US$3.7 billion incremental) that is being incurred to facilitate the purchase of Intelsat's parent company's equity ownership by BC Partners, Silver Lake Partners and certain other investors, and repay certain outstanding indebtedness. Moody's expects the majority of the new debt to be issued at Intelsat (Bermuda), Ltd., while Intelsat (Bermuda), Ltd.'s existing assets and liabilities will be transferred to a newly created holding company, Intelsat Jackson Holdings, Ltd. Following closing, the ratings agency expects all equity to be owned by BC Partners, Silver Lake Partners, certain other investors and management. The defining factor in the company's credit profile is the increased leverage resulting from debt financing facilitating the ownership changes, and risks that the company will not be able to grow its cash flow stream in order that all of its substantial interest burden, capital expenditures and periodic cash income tax obligations can be met from operating cash flow. The future opportunities to grow cash flow include increases to EBITDA, plus permanent reductions in capital expenditures as the company rationalizes its very large satellite constellation fleet. In the interim, Moody's anticipates a modest cash flow deficit. However, applicable bank credit agreements and trust indentures feature relatively lax default triggers that may provide time before creditors gain default rights. The company has available sources of external liquidity, including the revolving credit facilities at Intelsat Corporation and Intelsat Subsidiary Holding Co. Ltd. For this reason, Moody's rates Intelsat's liquidity arrangements as being adequate (SGL-3), with the Caa1 CFR reflecting execution risks related to cash flow growth including the potential that exogenous factors such as a slowing global economy may retard necessary progress. Since Intelsat issues debt from five legal entities, the rating action also involved adjustments to ratings for several debt instruments in other Intelsat entities. At closing, the ratings on notes that will be repaid in full will be withdrawn. However, the rating actions are based on assumptions incorporated in the company's acquisition financing plan and on very preliminary documentation. Accordingly, there is the potential for minor adjustments to the instrument ratings should the facts change. Ratings will be finalized in due course (the transaction is tentatively scheduled to close on Feb. 4). Instrument rated: Intelsat Corp.: -- Secured Bank Credit Facility, Rated B1 (LGD1 05) - US$150 million incremental Term Loan B-2 due Jan. 3, 2014 Downgrades: Intelsat Corp.: -- Senior Secured Bank Credit Facility, Downgraded to B1 (LGD1 05) from Ba2 (LGD1 08) * Senior Secured Revolving Facility due July 5, 2012 * US$329 million Term Loan A-3 due July 5, 2012 * US$1,623 million Term Loan B-2 due Jan. 3, 2014 -- Senior Secured Regular Bond/Debenture, Downgraded to B1 (LGD1 05) from Ba2 (LGD1 08) * US$125 million 6.875% Senior Secured Notes due Jan. 15, 2028 -- Senior Unsecured Regular Bond/Debenture, Downgraded to B3 (LGD3 33) from B2 (LGD3 45) - US$656 million 9% Senior Unsecured Notes due Aug. 15, 2014 - US$575 million 9% Senior Unsecured Notes due June 15, 2016 Intelsat Subsidiary Holding Co. Ltd.: -- Senior Secured Bank Credit Facility, Downgraded to B1 (LGD1 05) from Ba2 (LGD1 08) * Senior Secured Revolving Facility due July 5, 2012 * US$342 million guaranteed Term Loan B due July 5, 2013 -- Senior Unsecured Regular Bond/Debenture, Downgraded to B3 (LGD1 33) from B2 (LGD3 45) * US$875 million 8.25% Senior Notes due Jan. 15, 2013 * US$675 million 8.625% Senior Notes due Jan. 15, 2015 Intelsat Intermediate Holding Company, Ltd.: -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 (LGD4 53) from B3 (LGD5 72) * US$388 million 9.25% Senior Discount Notes due Feb. 1, 2015 Intelsat (Bermuda), Ltd. (to be re-named Intelsat Jackson Holdings, Ltd.): -- Senior Unsecured Bank Credit Facility, Downgraded to B3 (LGD3 33) from B2 (LGD3 45) - US$1,000 million guaranteed Term Loan due 2014 -- Senior Regular Bond/Debenture, Downgraded to B3 (LGD3 33) from B2 (LGD3 45) * US$750 million 9.25% guaranteed Senior Notes due June 15, 2016 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 (LGD4 60) from Caa1 (LGD5 82) - US$1,330 million 11.25% Senior Notes due June 15, 2016 Intelsat, Ltd.: -- Probability of Default Rating, Downgraded to Caa1 from B2 -- Speculative Grade Liquidity Rating, Downgraded to SGL-3 from SGL-1 -- Corporate Family Rating, Downgraded to Caa1 from B2 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa3 (LGD6 95) from Caa1 (LGD6 93) - US$600 million 6.625% Senior Notes due April 15, 2012 - US$700 million 6.5% Senior Notes due Nov. 1, 2013 Outlook Actions: Intelsat, Ltd.: -- Outlook, Changed To Stable From Rating Under Review Ratings to be withdrawn upon closing: Intelsat (Bermuda), Ltd. (to be re-named Intelsat Jackson Holdings, Ltd.): -- Senior Unsecured Regular Bond/Debenture, currently rated Caa1 (LGD5 82) * US$260 million Floating Rate Senior Notes due June 15, 2013 * US$600 million Floating Rate Senior Notes due Jan. 15, 2015 Intelsat, Ltd.: -- Senior Unsecured Regular Bond/Debenture, currently rated Caa1 (LGD6 93) * US$400 million 5.25% Senior Notes due Nov. 1, 2008 Stable outlook for approximately US$10 billion of rated debt instruments. Headquartered in Bermuda, Intelsat is the largest fixed satellite service operator in the world and is currently privately held by a group of financial investors: Apax Partners, Apollo Management, Madison Dearborn Partners, and Permira. ============= B O L I V I A ============= COEUR D'ALENE: Reviews Strategic Alternatives for Rochester Mine ---------------------------------------------------------------- Coeur d'Alene Mines Corporation has disclosed that it is reviewing strategic alternatives for its Rochester silver and gold mine in Nevada. Strategic alternatives under consideration include a possible sale of the subsidiary. "We continue to believe that Rochester represents value given the operation's low-costs and remaining exploration potential," said Dennis E. Wheeler, Coeur's Chairman, President, and Chief Executive Officer. "That being said, Coeur's primary focus is on maximizing value for our shareholders from our larger, longer-life silver projects in Mexico (Palmarejo) and South America (San Bartolome, Cerro Bayo, and Martha)." About Coeur d'Alene Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) -- http://www.coeur.com/-- is the world's largest primary silver producer, as well as a significant, low-cost producer of gold. The company has mining interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia and Australia. * * * Coeur d'Alene Mines Corp.'s US$180 Million notes due Jan. 15, 2024, carry Standard & Poor's B- rating. =========== B R A Z I L =========== AAR CORP: Appoints Donald J. Wetekam as VP for MRO Segment ---------------------------------------------------------- Donald J. Wetekam was appointed as the Group Vice President of AAR Corp.'s Maintenance, Repair and Overhaul segment. Mr. Wetekam previously served as President and General Manager of AAR's Aircraft maintenance facility in Oklahoma City. As Group Vice President, Mr. Wetekam will oversee all of AAR's MRO activities and be responsible for growing the company's domestic and international MRO business and expanding its offerings to government customers. "Don is a proven leader with a wealth of experience leading MRO operations," said Timothy J. Romenesko, President and Chief Operating Officer of AAR. "His commitment to operational excellence and process improvement will be invaluable as we grow this part of the business and strengthen AAR's position as a world-class MRO provider." Prior to joining AAR, Mr. Wetekam served as Deputy Chief of Staff for Installations and Logistics in the U.S. Air Force and was a staunch advocate for the adoption of commercial process improvement techniques, such as Lean and Six Sigma. He also directed operations at Warner Robins Air Logistics Center and played key leadership roles at the Oklahoma City Air Logistics Center at Tinker Air Force Base. In another move to strengthen and increase its MRO business, AAR has appointed Mickey Cohen as Vice President of Commercial MRO Group, reporting to Mr. Wetekam. In this expanded role, Mr. Cohen will oversee all commercial MRO activities at AAR's aircraft maintenance facilities in Indianapolis, Oklahoma City, and Hot Springs, Arkansas. Mr. Cohen will also continue to serve as Corporate Vice President, Operations and Engineering. "Mickey understands our airline customers' operations and knows what it takes to run an efficient and successful commercial MRO business," Mr. Romenesko continued. "Since joining the company in 2003, Mickey has been instrumental in building customer relationships and instilling a culture of quality that has contributed to the success of our MRO segment." About AAR Corp. AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. In Asia Pacific, the company has offices in Singapore, China, Japan and Australia. In Latin America, the company has a sales office in Rio de Janeiro, Brazil. * * * As reported on Oct. 18, 2006, Standard & Poor's Ratings Services upgraded AAR Corp.'s corporate credit rating from 'BB-' to 'BB'. The outlook is stable. As reported on Dec. 5, 2006, that Moody's upgraded AAR's corporate family rating and senior notes to Ba3 from B1, in response to improving financial performance resulting from the strong commercial and defense aviation supply and repair environment. Moody's said the ratings outlook is stable. BANCO MODAL: Moody's Assigns Preliminary Junk & Low B Ratings ------------------------------------------------------------- Moody's Investors Service has assigned a bank financial strength rating of D- to Banco Modal S.A. Moody's also assigned long- and short-term foreign- and local-currency deposit ratings of Ba3 and Not Prime, as well as long- and short-term Brazilian national scale deposit ratings of A3.br and BR-2. The outlooks on all of these ratings are stable. Moody's D- bank financial strength rating for Banco Modal derives from its modest franchise value and market positioning as a wholesale bank, and also from the relevant participation of trading revenues in the earning mix, which limits the generation of recurrent earnings. The rating is also challenged by the lack of diversification in the bank's funding base, as well as by the bank's reasonably concentrated loan portfolio when compared with its domestic midsize bank peers. Moreover, the rating might suffer from the deterioration of margins as a result of increased competition in commercial lending and in the structuring of asset-backed securities, which are the bank's main business targets. Additionally, margins could be compressed by increased funding costs if the market's liquidity dries up. On the other hand, the rating benefits from Banco Modal's lean operating structure -- a function of its niche business profile -- and from its partnership arrangement. In that regard, the bank's management is closely involved in the bank's business strategy and execution, and is challenged to maintain adequate risk discipline and controls. Moody's added that ongoing expansion initiatives, which involve the asset management and middle-corporate lending units, are expected to diversify the bank's funding structure by attracting more institutional investors and fund managers to its depositors base. The intrinsically volatile, largely trading-based, nature of the bank's earnings results in profitability and efficiency indicators that show some fluctuation. The rating agency noted that Banco Modal's ability to enhance recurring earning- generation businesses, as means to protect its profitability, could eventually be a positive factor for its ratings. Moody's Ba3 global local-currency deposit rating is based on the bank's very modest participation in the Brazilian deposits market. Moody's, therefore, assesses no probability of systemic support to the bank in the event of stress that could affect its ability to repay local currency deposits. Moreover, the bank does not enjoy support from a parent company or economic group because it is organized into a partnership, controlled by its three founders. Therefore, the local currency rating of Ba3 is mapped directly from Banco Modal's bank financial strength rating of D-. These ratings were assigned to Banco Modal SA: -- Bank Financial Strength Rating: D-, with stable outlook. -- Global Local-Currency Rating: Ba3 long-term local-currency deposit rating and Not Prime short-term local-currency deposit rating, with stable outlook. -- Foreign Currency Deposit Rating: Ba3 long-term foreign- currency deposit rating, and Not Prime, with stable outlook. -- Brazilian National Scale Deposit Ratings: A3.br long-term deposit rating, and BR-2 short-term deposit rating; with stable outlook. Established in 1995, Banco Modal SA is headquartered in Rio de Janeiro, Brazil. As of December 2007, the bank had total assets of approximately BRL708 million (US$398 million) and equity of BRL144 million (US$81 million). BANCO NACIONAL: Approves BRL95MM Loan for Beberibe Wind Farm ------------------------------------------------------------ Banco Nacional de Desenvolvimento Economico e Social said in a statement that it has authorized a BRL95 million loan for the construction of the 25.6-megawatt Beberibe wind farm in Ceara. Business News Americas relates that Beberibe is part of Brazil's Proinfa program, which is designed to promote renewable development in the country. The plant will sell power to federal power holding Eletrobras under a 20-year contract. US firm Econergy's special-purpose company Eco Energy Beberibe will construct the plant, BNamericas states. The BRL95 million loan is 67% of the project's BRL141 million total value. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007, respectively. BANCO NACIONAL: Grants BRL95.2-Mln Loan to Companhia Brasileira --------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has approved a BRL95.2-million financing for the expansion and modernization project of the productive units of Companhia Brasileira de Estireno S.A., in Cubatao. BNDES's financing corresponds to 59% of the total investment amounting to BRL161.6 million. The project aims at the increase of the ethylbenzene plant's production capacity, from 122 thousand tons annually to 195 thousand tons/year, and the increase of the industrial plant of styrene monomer, from the current 120 thousand tons/year to 180 thousand tons annually. In addition, social and environmental investments amounting to BRL1.1 million will be carried out, with the implementation of systems to monitor gas emissions in the atmosphere and to monitor effluents. Among the merits of the project, the following is highlighted: * increase in the national production of styrene, reducing the level of imports; * reduction in the costs of production; * increase in the energetic efficiency; and * expansion of the productive capacity, reducing the generation of residues without increasing the atmospheric emission. The Brazilian production of styrene is lower than the demand, and a consumption growth, which is higher than 4.5% per year, is expected for the market for the next ten years. The styrene monomer, or styrene, is a product from the family of colorless, liquid, aromatic and hydrocarbonates, which are used in the manufacture of polystyrene, synthetic rubber, styrene emulsions, polyester, styrenized oils, sulphonated resins and other chemical derivatives. Its wide range of applications is included in the production of plastic articles, toys, pneumatic products, waterproof coatings, thermal insulators, water-based inks, varnishes, glue, among others. In order to manufacture styrene; first, it is necessary to obtain ethylbenzene in its manufacturing process. Ethylbenzene, on its turn, has the ethene and benzene as the raw materials. CBE is part of Unigel group, a national controlled conglomerate which operates in the areas of chemistry, plastics and packages, playing an important role in the Petrochemical Complex of Camacari, in Bahia. About Banco Nacional Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's, and a BB+ long-term foreign issuer credit rating from Standards and Poor's. The ratings were assigned in August and May 2007, respectively. BANCO VOTORANTIM: Fitch Affirms Individual Rating at C/D -------------------------------------------------------- Fitch Ratings has affirmed Banco Votorantim S.A.'s ratings at Long-term foreign and local currency Issuer Default 'BBB-'and Short-term foreign and local currency IDR 'F3'. At the same time, Fitch has affirmed the National Long- and Short-term ratings at 'AA+(bra)' and 'F1+(bra)', respectively. Fitch also affirmed the bank's Individual rating at 'C/D' and Support rating at '3'. The Outlooks for the Long-term IDRs and National Long-term rating remain Stable. Fitch has also affirmed the National Long-term rating of Banco Votorantim Leasing Arrendamento Mercantil S.A.'s 1st and 2nd issuances of debentures at 'AA+(bra)'. The ratings of Banco Votorantim reflect the moderate probability of support from the bank's ultimate parent, Votorantim Participacoes S.A (Long-term local currency IDR 'BBB'/Outlook Stable and National Long-term 'AAA(bra)'/Outlook Stable), in case of need. Banco Votorantim's Long-term foreign currency IDR is at Brazil's Country Ceiling, and the bank's Long-term local currency IDR is above Brazil's sovereign 'BB+' rating, both reflecting Fitch's opinion regarding the strength of Votorantim Participacoes. The Individual rating reflects Banco Votorantim's business focus, capacity to manage risks, good cost control and increasing revenue diversification, which is expected to translate into more consistent earnings. On the other hand, the rating also reflects the bank's concentration in government securities and lower profitability relative to its peers. The Individual rating could benefit in the medium term should the bank improve and sustain its profitability relative to its peers, while maintaining adequate levels of leverage and good asset quality. The rating could be adversely affected should the bank sustain its increasing leverage without a corresponding gain in profitability. Votorantim Participacoes SA is one of Latin America's largest privately owned industrial conglomerates, and its Votorantim brand is a well-respected name in Brazil. Its ratings reflect Votorantim Participacoes' diverse operating asset and revenue base, strong market position and conservative financial profile. They also take into account the competitive cost structure of Votorantim Participacoes' metals, cement, and pulp and paper businesses. Headquartered in Sao Paulo, Brazil, Banco Votorantim is a medium-sized bank, which is involved in wholesale, treasury, retail and asset management. The bank relies on a lean cost structure, with total assets of BRL64.8 billion, total loans of BRL23.6 billion, and equity of BRL5.8 billion as of September 2007. Banco Votorantim Leasing is 99.9%-owned by Banco Votorantim. BRASIL TELECOM: Earns BRL205.6 Million for Fourth Quarter 2007 -------------------------------------------------------------- Brasil Telecom Participacoes S.A. has registered recurring EBITDA of BRL980.1 million in the fourth quarter of 2007, 18.1% higher than the fourth quarter of 2006. Brasil Telecom's consolidated quarterly EBITDA totaled BRL902.3 million, accompanied by a consolidated EBITDA margin of 31.4%, versus BRL947.1 million and 34.6%, respectively, in the fourth quarter of 2006. Consolidated net revenue totaled BRL2,876.1 million in the fourth quarter 2007, 4.9% up from the 2006, and Brasil Telecom recorded fourth quarter 2007 net income of BRL205.6 million, equivalent to BRL0.5673 per share. Sustaining the positive results reached in every quarter in 2007, BrT Movel's EBITDA stood at BRL10.3 million in the fourth quarter 2007, BRL44.1 million up on the same period the year before. The EBITDA margin of the mobile operations came to 2.1%, 10.2 p.p. up on the fourth quarter of 2006. In the fourth quarter of 2007, Brasil Telecom added 44,600 ADSL users to its network, totaling 1,567,800 users in service at the end of the year, up by 19% year-on-year. ADSL users represented 19.5% of Brasil Telecom's network in the fourth quarter 2007, versus 15.7% in the fourth quarter of 2006. Moving on with the expansion of the broadband network, Brasil Telecom reached 80% of the municipalities with ADSL coverage, the highest percentage among large operators. Another important front of innovation is the pursuit of alternative solutions for broadband access in places difficult to serve through physical means. The Brasil Telecom group is thus testing Wi-Max technology, in pre-commercial phase, in the cities of Curitiba and Porto Alegre (Wi-Max -- Worldwide Interoperability for Microwave Access -- Wireless broadband access with international interoperability standard). The Internet Group, responsible for Brasil Telecom's Internet services, recorded 1.4 million broadband clients nationwide at the end of 2007, up by 26.3% on the same period the previous year, maintaining its leadership in Region II. Gross revenue from data communication amounted to BRL735.3 million in the fourth quarter 2007, 18.1% higher than in 2006. This was chiefly due to the growth of 19% in the ADSL client base. BrT Movel reached 4,262,700 mobile users at the end of the 2007 fourth quarter, with 238,900 net additions in this quarter. In the fourth quarter 2007, BrT Movel's client base grew by 26.2% year-on-year while the Brazilian market increased by 21.1%. Its market share in Region II came to 13.2%, 1.1 p.p. higher than in the previous year. The mobile telephony's consolidated gross revenue totaled BRL542.9 million in the fourth quarter 2007, BRL468.1 million of which from services and BRL74.8 million from the sales of handsets and accessories. Operating costs and expenses totaled BRL2,559.8 million, 1.9% higher than the BRL2.511.7 million recorded in the fourth quarter of 2006. The ratio between losses with accounts receivable and gross revenue was 2%, totaling BRL83.8 million, 0.4 p.p. below the figure recorded in the fourth quarter 2006. The reduction in losses was due to the improved phone collection performance. In the 2007 fourth quarter, Brasil Telecom's investments totaled BRL608.8 million while net debt stood at BRL489.9 million, 62.7% less than in December 2006. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br-- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long- distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. * * * To date, Brasil Telecom carries Moody's Investors Service's Ba1 senior unsecured and credit default swap ratings. BUCKEYE TECH: Earns US$13.8 Mil. in Quarter Ended Dec. 31, 2007 --------------------------------------------------------------- Buckeye Technologies Inc. reported net income of US$13.8 million on net sales of US$210.9 million for the three months ended Dec. 31, 2007, compared to net income of US$3.8 million on net sales of US$184.7 million for the same period in 2006. Chairman and Chief Executive Officer John B. Crowe said, "We had an exceptional quarter. Second quarter net sales were up 14% compared to the same period last year. Sales of US$211 million are our highest revenue quarter ever. The earnings improvement is a combination of higher pricing, higher specialty wood volume and cost control." Mr. Crowe went on to say, "We are pleased with the quarter and year-to-date revenue and income growth. Our markets remain solid and we will benefit from price increases that we implemented in January. In the current quarter, we anticipate lower nonwovens production and revenue due to our previously announced volume reduction from our Delta nonwovens facility. Additionally, we expect higher manufacturing costs at our Florida specialty wood facility due to planned maintenance inspections. While the just completed quarter's earnings performance will be difficult to repeat, we do anticipate strong performance in the January-March quarter 2008." About Buckeye Technologies Headquartered in Memphis, Tennessee, Buckeye Technologies Inc. (NYSE: BKI) -- http://www.bkitech.com/-- manufactures and markets specialty fibers and nonwoven materials. The company currently operates facilities in the United States, Germany, Canada, and Brazil. Its products are sold worldwide to makers of consumer and industrial goods. * * * As reported in the Troubled Company Reporter on June 19, 2007, Moody's upgraded Buckeye Technologies Inc.'s corporate family rating to B1 from B2 and maintained a stable outlook. All otherratings were upgraded by one notch while the unsecured notes were affirmed at B2. COMPANHIA SIDERURGICA: Targets June for 1st Phase Completion ------------------------------------------------------------ Companhia Siderurgica Nacional said in a presentation to investment bank Goldman Sachs that the first stage of Casa de Pedra's expansion will be completed in June, Business News Americas reports. The project is aimed at increasing Casa de Pedra's iron ore capacity to 21 million tons per year from 16 million tons per year, BNamericas says, citing Companhia Siderurgica. Companhia Siderurgica said in a filing with the Bovespa stock exchange that it changed the timetable for the expansion. Reports say that Companhia Siderurgica had wanted to start up the 21-million-ton-per-year capacity in February. BNamericas relates that the second stage of the expansion will take Casa de Pedra's capacity to 40 million tons per year in the last month of this year. The third phase will increase production at the mine to 50 million tons per year in December 2009. In the fourth stage, iron ore capacity will be 70 million tons per year in December 2011. According to BNamericas, Companhia Siderurgica will deploy a six-million-ton-per-year pellet unit in Minas Gerais. The unit will be operational in 2010, in addition to a capacity increase at its Itagua port terminal by 2012. Investments in the three initiatives would total US$2.87 billion, BNamericas states. 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. COSAN SA: Keen on Acquiring Esso's South American Assets -------------------------------------------------------- Published reports say that Cosan SA is interested in purchasing fuel firm Esso's South American assets. News daily O Globo relates that Cosan is collaborating with sugar and ethanol group Cristal for Esso's assets. According to the reports, Brazilian state-run oil firm Petroleo Brasileiro SA also wants to acquire the assets. Petroleo Brasileiro's board decided on Jan. 28 to offer for Esso, a source told O Globo. Folha de S Paulo notes that Petroleo Brasileiro is considering plans to collaborate with gas and petrochemicals group Ultra in bidding for Esso. O Globo states that these firms are also bidding for Esso: -- Anglo-Dutch oil company Royal Dutch Shell, -- Sao Paulo's private equity firm GP Investments, and -- Houston's AEI. About Petroleo Brasileiro Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp -- was founded in 1953. The company explores, produces, refines, transports, markets, 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. About Cosan Headquartered in Sao Paulo, Brazil, Cosan S.A. Industria e Comercio, is the third largest sugar producer in the world. In 2004/2005 it crushed more than 26 million tons of sugar cane in fourteen mills located in the Central South region of Brazil, with sugar sales of 2.3 million tons and ethanol sales of 825 million liters. * * * As of February 2007, Cosan carries Moody's Ba2 global local currency and foreign currency ratings and Standard and Poor's BB corporate credit rating. DELPHI CORP: Court Allows Committee Participation in Exit Loan -------------------------------------------------------------- The Honorable Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York permits members of the Official Committee of Unsecured Creditors and the Official Committee of Equity Security Holders appointed in the bankruptcy cases of Delphi Corp. and its debtor-affiliates to participate in any syndicate of lenders assembled to provide exit financing facilities for the Debtors' emergence from Chapter 11. The Court directs all interested Statutory Committee members to: (a) to make advanced written disclosure of their participation in the Exit Loan Syndication to the Debtors, counsel to each of the Statutory Committees, and the U.S. Trustee; (b) withhold any information with his or her institution, or any lender or other party involved in the Exit Financing, related to the Debtors' or Statutory Committees' strategy regarding the Exit Financing; and (c) abstain from any direct negotiations with the Debtors or the Statutory Committees on the Exit Financing. Participating Statutory Committee members will be screened on an ongoing basis from any information relating to the Debtors' or the Statutory Committees' strategy regarding, and any deliberations by the applicable Statutory Committee in any respect thereon, the Exit Financing, Judge Drain rules. Nothing in the Court's order relieves any member of the Statutory Committees from its obligations under any applicable securities laws, Judge Drain clarifies. As reported in the Troubled Company Reporter on Jan. 9, 2008, the Debtors reduced their Exit Financing from the Court-approved US$6.8 billion to US$6.1 billion. The reduced facilities include: (a) US$1.6 billion in an asset-backed revolving credit facility; (b) US$3.7 billion in a first-lien term loan facility; and (c) US$825 million in a second lien term loan facility. 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 confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 108; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. Moody's said the outlook is stable. As reported in the Troubled Company Reporter-Latin America on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. DELPHI CORP: Court Grants Final Approval of MDL Settlements ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York entered a final order on Jan. 25, 2008, approving the Multidistrict Litigation Settlements among the Debtors, General Motors Corp., and the lead plaintiffs in securities actions and lawsuits brought under the Employee Retirement Income Security Act consolidated before the U.S. District Court for the Eastern District Of Michigan, Southern Division. Pursuant to the MDL Settlements, the Debtors agreed to grant the Lead Plaintiffs and ERISA Plaintiffs claims under their First Amended Joint Plan of Reorganization. The Lead Plaintiffs are the holders of Section 510(b) Note Claims under the Plan, while the ERISA Plaintiffs are the holders of the Section 510(b) Equity Claims. In exchange, the Lead Plaintiffs and the ERISA Plaintiffs will release the Debtors from any and all claims in connection with the Securities Litigation. The Hon. Robert Drain authorizes the Debtors to release any and all of their claims against the current and former officers and directors of Delphi Corp. that relate to or arise out of any alleged violations of the federal securities laws during the period March 7, 2000, through March 3, 2005, inclusive. Judge Drain permits the Debtors and the other MDL Settlement parties to make nonmaterial modifications to the MDL Settlements without further Court order provided that the Official Committee of Unsecured Creditors and the Official Committee of Equity Security Holders do not lodge an objection to any proposed modification within five business days' notice. 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 confirmed the Debtors' First Amended Plan on Jan. 25, 2008. (Delphi Bankruptcy News, Issue No. 109; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Jan. 16, 2008, Moody's Investors Service assigned ratings to Delphi Corporation for the company's financing for emergence from Chapter 11 bankruptcy protection: Corporate Family Rating of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a Speculative Grade Liquidity rating of SGL-2 representing good liquidity was assigned. The outlook is stable. As reported in the Troubled Company Reporter-Latin America on Jan. 11, 2008, Standard & Poor's Ratings Services expects to assign its 'B' corporate credit rating to Troy, Michigan-based automotive supplier Delphi Corp. upon the company's emergence from Chapter 11 bankruptcy protection, which may occur by the end of the first quarter of 2008. S&P expects the outlook to be negative. In addition, Standard & Poor's expects to assign these issue-level ratings: a 'B+' issue rating (one notch above the corporate credit rating), and '2' recovery rating to the company's proposed US$3.7 billion senior secured first-lien term loan; and a 'B-' issue rating (one notch below the corporate creditrating), and '5' recovery rating to the company's proposed US$825 million senior secured second-lien term loan. GOL LINHAS: Board Okays Share Buyback Program & Dividend Policy --------------------------------------------------------------- GOL Linhas Aereas Inteligentes S.A. Board of Directors has authorized a share buyback program and approved the company's 2008 dividend policy. The Board of Directors, considering current share prices and the free float, authorized management to implement a share repurchase program of the company's preferred shares, at market prices, up to 5,000,000 shares, representing 8.8% of the total number of preferred shares outstanding in the market, in accordance with the terms of CVM Instruction No. 10/80. The purpose of the buyback is the purchase of preferred shares to be held in treasury and subsequently resold or cancelled, without reducing the company's capital. The period for these authorized transactions is 365 days from Jan. 28, 2008. The objective of this initiative is to capture an important potential for value creation due to the current price of the Company's shares. According to GOL Linhas Chief Executive Officer, Constantino de Oliveira Junior, "This buyback program is additional evidence of GOL's strategic vision to create value for all of its shareholders and of its commitment to the domestic and international capital markets." With the objective of providing greater predictability of dividend payments to shareholders, at a meeting held on Jan. 28, 2007, the Board of Directors approved the distribution of quarterly dividends in the fixed amount of BRL0.18 per common and preferred share of the company during 2008. Regardless of the fixed amount, it is assured the payment of the minimum dividend of 25% of the corporate year's net profit, and if necessary the company will make a year-end supplementary dividend payment. Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) -- http://www.voegol.com.br-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As reported in the Troubled Company Reporter-Latin America on July 25, 2007, Fitch Ratings has affirmed the 'BB+' foreign and local currency issuer default ratings of Gol Linhas Aereas Inteligentes S.A. Fitch has also affirmed the outstanding US$200 million perpetual bonds and US$200 million of senior notes due 2017 at 'BB+' as well as the company's 'AA-' (bra) national scale rating. Fitch said the rating outlook is stable. HERCULES INC: Full Year Net Income Drops to US$28.5 Mln in 2007 --------------------------------------------------------------- Hercules Incorporated reported net income for the quarter ended Dec. 31, 2007 of US$28.5 million as compared to net income of US$242.1 million for the fourth quarter of 2006. The fourth quarter of 2006 included US$242 million of one-time tax benefits. Net income for the year ended Dec. 31, 2007 was US$178.9 million as compared to net income of US$238.7 million in 2006. Net income from ongoing operations for the fourth quarter of 2007 was US$35.0 million, or US$0.31 per diluted share. Net income from ongoing operations for the fourth quarter of 2006 was US$34.8 million, or US$0.31 per diluted share, including US$0.04 of land sales and US$0.04 in favorable tax rate impacts. The fourth quarter 2006 ongoing tax rate was 19%, whereas the ongoing tax rate was 29% in the fourth quarter of this year. Net income from ongoing operations for the year ended Dec. 31, 2007, was US$169.9 million. Cash flow from operations for the year ended Dec. 31, 2007, was US$299.9 million, an increase of US$127.0 million as compared to the prior year. Net sales in the fourth quarter of 2007 were US$540.7 million, an increase of 9% from the same period last year. Sales increased due to 6% higher volume and 5% favorable rates of exchange, partially offset by unfavorable mix of 2%. Pricing in the aggregate was flat. Net sales for the year ended Dec. 31, 2007 were US$2.136 billion, an increase of 9% as compared to 2006, excluding the impact of the FiberVisions transaction. Net sales in the fourth quarter of 2007 increased in all regions of the world. Sales increased 1% in North America, 14% in Europe (3% excluding the strong Euro), 38% in Latin America and 17% in Asia Pacific as compared to the same period last year. Reported profit from operations in the fourth quarter of 2007 was US$56.9 million, an increase of 6% compared with the same period in 2006. Profit from ongoing operations in the fourth quarter of 2007 was US$68.9 million, an increase of 10% compared with US$62.7 million in the fourth quarter of 2006. Excluding land sales, profit from ongoing operations increased 21% from the fourth quarter of 2006. "We continue to demonstrate strong growth in revenue, earnings per share and cash flow," commented Craig A. Rogerson, President and Chief Executive Officer. "Our employees, along with our global market leadership and strong innovation, continue to drive solid results." During the quarter, the company purchased 1.65 million shares of common stock for a cost of US$31.6 million. To date, the Company has purchased 3.0 million shares for US$58.0 million under its US$200 million share repurchase authorization. Interest and debt expense was US$16.6 million in the fourth quarter of 2007, down US$0.5 million compared with the fourth quarter of 2006. Interest expense for the year ended Dec. 31, 2007 was US$68.6 million, a decrease of US$2.6 million from 2006. Net debt, total debt less cash and cash equivalents, was US$679.5 million at Dec. 31, 2007, a decrease of US$144.2 million from year-end 2006. Capital spending was US$40.5 million in the fourth quarter and US$118.3 million in 2007. This compares to US$44.4 million and US$93.6 million in the fourth quarter and year 2006, respectively. The increase in capital expenditures was primarily for growth projects including expanded production capacity. The company completed the transition of its U.S. defined benefit pension plan to a liability driven investment strategy in 2007. The assets of the plan were transitioned from a portfolio that had a strong equity bias to one where greater than 80% of the assets are invested in fixed income securities. The funding level improved from 90% at the end of 2006 to 96% at the end of 2007 on a projected benefit obligation basis. Segment Results - Reported Basis In the Aqualon Group, net sales increased 16% and profit from operations increased 5% in the fourth quarter as compared with the fourth quarter of 2006. All Aqualon business units had increased sales in the fourth quarter as compared to the prior year. In the aggregate, the sales increase was driven by 14% higher volume (12% excluding an acquisition), 1% increased pricing and 4% favorable rates of exchange partially offset by 3% unfavorable mix. "We continue to show strong growth outside of North America, more than offsetting the challenging conditions experienced in this region," commented Mr. Rogerson. "We made significant progress with our expanded methylcellulose capacity in China. While we experienced a setback due to an incident at the facility in January, we expect to meet customer orders and resume operations during the first quarter and be able to support the growing demand in the Asia Pacific region and other fast growing markets," noted Mr. Rogerson. Coatings and construction sales increased 22% (or 17% excluding an acquisition) in the fourth quarter of 2007 as compared to the same period of last year, primarily due to 21% higher volume (16% excluding an acquisition), 1% increased pricing and 7% favorable rates of exchange, partially offset by 7% unfavorable mix. Coatings sales increased 26% (or 18% excluding an acquisition) compared to last year with increases in all major regions of the world except North America. Sales increased in Europe by 32%, Asia Pacific by 19% and Latin America by 77%. North America was up 14%, but down 11% versus the fourth quarter of 2006, excluding the impact of an acquisition. Sales into construction markets were up 20% globally (12% from volume) compared to the prior year. Strong growth in Asia, Europe and Latin America offset a decline in North America. Asia sales growth of 34% reflected the improved operability of our methylcellulose joint venture in China. The facility ran at near capacity during the latter part of the fourth quarter. Regulated Industries sales increased 6% in the fourth quarter of 2007 as compared to the same period of last year, primarily due to a 4% favorable mix, and 3% favorable rates of exchange, partially offset by 1% lower volume. Pricing was flat in the aggregate. The improved sales mix reflects a higher portion of sales in the higher priced pharmaceutical and personal care markets. Volume was lower in the aggregate as growth achieved in Europe and China was offset by declines in North America.<