T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, February 12, 2008, Vol. 9, Issue 30 Headlines A R G E N T I N A ALITALIA SPA: Outgoing Prime Minister Vows to Complete Sale ARROW ELECTRONICS: Earns US$114 Million in 2007 Fourth Quarter COMPULBIKE SA: Files Reorganization Petition in Argentina DANA CORP: Wants Court to Expunge 307 Scheduled Claims GERIBA SRL: Proofs of Claim Verification Deadline is March 27 INCOFI SRL: Proofs of Claim Verification Ends on March 19 MIL OLIVOS: Proofs of Claim Verification is Until April 11 NERT SA: Proofs of Claim Verification Ends on March 10 OIS SA: Proofs of Claim Verification Deadline is April 9 TELECOM ARGENTINA: Telecom Italia Positive on Argentine Probe TYSON FOODS: Board Picks Jim Kever as Lead Independent Director TYSON FOODS: Unit Finalizes Plan to Restructure Kansas Operations * ARGENTINA: Government's Inflation Reporting Faces Doubts B O L I V I A INTERMEC INC: Reports US$16.4-Mln Net Income in Fourth Quarter B R A Z I L BANCO NACIONAL: Funding BRL2.55B for Tele Norte Restructuring DELPHI CORP: Court Allows 35 Trade Claims for US$52,000,000 DELPHI CORP: Proposal to Assign Steering Biz Contracts Disputed DELPHI CORP: Wants Lease Decision Period Extended Until May 31 DELPHI CORP: Wants More Time to Remove Pending Civil Actions DIRECTV GROUP: Buys Patent Portfolio License From TPL Group DIRECTV GROUP: FCC Chair Backs Liberty-News Corp. Stake Swap LOJAS COLOMBO: Bond Repurchase Prompts S&P's Rating Withdrawal NOVELIS INC: Incurs US$49 Mil. Net Loss in Quarter Ended Dec. 31 TEREX CORPORATION: Hart-Scott-Rodino Waiting Period Expires XERIUM TECH: Hires Stephen Light as New President & CEO * BRAZIL: Creating Enforcement Team to Control Insider Trading C A Y M A N I S L A N D S ABN AMRO EMERGING: Sets Final Shareholders Meeting for Feb. 22 ABN AMRO GENERAL: To Hold Final Shareholders Meeting on Feb. 22 ABN AMRO JAPAN: Sets Final Shareholders Meeting for February 22 CLOUDVIEW OFFSHORE: Final Shareholders Meeting is on February 23 MOORE STEPHENS: Sets Final Shareholders Meeting for February 22 C H I L E INVENSYS PLC: Moody's Reviews Ratings for Possible Upgrade C O L O M B I A DOLE FOOD: Fitch Sees Positive on WTO Banana Tariff Policy Ruling ECOPETROL: Heavy Crude Output Increases to 110,000 Barrels/Day * COLOMBIA: Gets US$1.5 Million Grant for Biofuels Projects C O S T A R I C A SIRVA INC: Court Okays Request to Borrow US$100M Under DIP Loan D O M I N I C A N R E P U B L I C JETBLUE AIRWAYS: Christoph Franz Joins Board of Directors JETBLUE AIRWAYS: Launching Santo Domingo Service on March 6 PRC LLC: Wants to Sell Property to Brett Houston for US$2.2 Mil. * DOMINICAN REPUBLIC: S&P Puts Low B Ratings Under Negative Watch E C U A D O R * ECUADOR: Pending Antitrust Law to Address Retailer Speculation E L S A L V A D O R ALCATEL-LUCENT: Incurs EUR443-Mln Net Loss in Full Year 2007 G U A T E M A L A HUNTSMAN CORP: Board Paying US$0.10 Per Share Dividend on March 31 M E X I C O EPICOR SOFTWARE: Earns US$22.4 Million in Quarter Ended Dec. 31 FREESCALE SEMI: Michael Mayer To Quit as Chairman & CEO FREESCALE SEMICON: CEO Resignation No Rating Effect Says Moody's IMPERIAL SUGAR: Halts Operations After Sugar Refinery Fire UNITED RENTALS: Extends AT&T Network Services Deal for 3 Years P E R U QUEBECOR WORLD: D.E. Shaw Claims 1.2% Stake Ownership at Jan. 28 QUEBECOR WORLD: Magazine Arm Unaffected by Bankruptcy P U E R T O R I C O APARTMENT INVESTMENT: Posts US$26.6MM Net Loss in 4th Qtr. 2007 COINSTAR INC: Wal-Mart Deal Cues S&P's Outlook Shift to Positive GAMESTOP CORP: Board Okays US$130 Million Senior Notes Repurchase GAMESTOP CORP: US$130MM Sr. Notes Buyback Cues S&P's Pos. Outlook * PUERTO RICO: Moody's Comments on Possible Sales Tax Rate Cut V E N E Z U E L A PETROLEOS DE VENEZUELA: Chavez Warns US$200 a Barrel Oil Price PETROLEOS DE VENEZUELA: Mr. Ramirez Denounces Media Campaign PETROLEOS DE VENEZUELA: Freeze Order No Rating Impact, S&P Says * VENEZUELA: International Reserves Tops US$32 Billion, BCV Says * VENEZUELA: To Deliver US$834 Mil. in Oil Shipments to Total SA * Moody's Expects Global Default Rate to Rise in 2008 * Fitch to Address Latin America Sovereign Prospects Today * Large Companies with Insolvent Balance Sheet - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Outgoing Prime Minister Vows to Complete Sale ----------------------------------------------------------- The caretaker Italian government will "do everything possible" to sell its 49.9% stake in Alitalia S.p.A., Bloomberg News reports citing Italian Prime Minister Romano Prodi. President Giorgio Napolitano dissolved the Italian parliament on Feb. 6, 2008, and set a snap election for April 13 and 14, 2008. Mr. Prodi's administration will remain as caretaker government until a new prime minister is elected into office. "We will certainly do our best to make sure that this operation, which no-one has had the courage to face despite being widely recognized as necessary and unavoidable, makes it to the end," Mr. Prodi was quoted by Agenzia Giornalistica as saying. "We have taken on this task and we will try to go all the way." Alitalia and Air France-KLM SA have until mid-March to complete exclusive talks and present a final binding offer to the Italian government, which thereafter will decide whether to sell its stake to the French carrier. As previously reported in the TCR-Europe, Alitalia and Italy commenced exclusive sale 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. 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. ARROW ELECTRONICS: Earns US$114 Million in 2007 Fourth Quarter -------------------------------------------------------------- Arrow Electronics Inc. reported fourth quarter 2007 net income of US$114.0 million on sales of US$4.42 billion, compared with net income of US$128.1 million on sales of US$3.49 billion in the fourth quarter of 2006. Sales increased 26 percent year over year. On a pro forma basis, sales increased nine percent year over year as acquisitions also benefited sales growth. The company's results for the fourth quarters of 2007 and 2006 include a number of items that impact their comparability. On a non-GAAP basis, net income for the quarter ended Dec. 31, 2007 would have been US$120.6 million and net income for the quarter ended Dec. 31, 2006, would have been US$88.6 million. "We finished 2007 with outstanding performance in the fourth quarter. Sales, working capital to sales, and return on working capital were all at record levels, and exceptional cash flow generation of US$220 million in the fourth quarter brought 2007 operating cash flow to US$851 million," said William E. Mitchell, chairman, president and chief executive officer. "Our operating margin was again at an industry leading level and our balance sheet is at its strongest level in 10 years. We are doing this while continuing to invest in important initiatives that will take us to even greater levels of growth and profitability." Global enterprise computing solutions sales of US$1.61 billion increased 111 percent year over year. Growth was aided by the impact of the acquisitions of KeyLink Systems Group, Alternative Technology Inc. and the storage and security distribution business of InTechnology plc. On a pro forma basis, sales increased 22 percent year over year on strong growth in proprietary servers, storage, software, and services. "Sales pro forma for acquisitions more than tripled the rate at which the overall market is expected to have grown and our operating margin strengthened significantly over last quarter, demonstrating the tremendous operating leverage in our business. Execution on our strategic objectives in 2007 has resulted in a much stronger organization with broader geographic reach into 22 countries, increased market share in the fast growing product segments of software and storage, and a more robust customer and supplier base. Arrow ECS is now the world's largest distributor of enterprise storage and security and virtualization software, and with increased scale, scope and capabilities, our strategy is resonating with our customers and suppliers," added Mr. Mitchell. Global components sales of US$2.81 billion increased 3 percent year over year. "We again executed well and posted sales at the high end of expectations. In North America, we saw our first increase in daily run rate since the third quarter of 2006 and book to bill (the amount of sales booked for delivery as compared with sales that have been billed) was above one in each of the regions in which we operate. As we continued along the path to building best-in-class global capabilities and leveraging our global scale, we moved closer to our financial targets for the global components business in the fourth quarter. Operating income grew at more than three times the rate of sales growth and we reduced the amount of working capital needed to support sales by 160 basis points year over year. Our strategic initiatives around the world continue to take hold and we look forward to additional progress in the upcoming year," Mr. Mitchell said. The company's results for the fourth quarter of 2007 and 2006 include the items outlined below that impact their comparability: * During the fourth quarter of 2007, the company recorded a restructuring and integration charge of US$10.0 million (US$6.6 million net of related taxes) primarily related to initiatives taken by the company to improve operating efficiencies. * During the fourth quarter of 2006, the company settled certain tax matters covering multiple years. As such, the company recorded a reduction in the provision for income taxes of US$44.7 million and related interest expense of US$6.2 million (US$3.8 million net of related taxes) related to periods prior to the fourth quarter of 2006. * During the fourth quarter of 2006, the company completed the valuation of identifiable intangibles associated with acquisitions completed in the fourth quarter of 2005. Accordingly, the company recorded the related amortization expense for the full year in the fourth quarter of 2006. The impact on net income was a decrease of US$1.2 million related to periods prior to the fourth quarter of 2006. * During the fourth quarter of 2006, the company recorded restructuring and integration charges and costs associated with pre-acquisition warranty and environmental claims of US$9.7 million (US$7.8 million net of related taxes). "Based upon the information known to us today, we expect normal seasonality in both our components and ECS businesses. We believe that total first quarter sales will be between US$3.925 and US$4.225 billion, with global component sales between US$2.775 and US$2.975 billion and global enterprise computing solutions sales between US$1.15 and US$1.25 billion. Earnings per share, on a diluted basis, excluding any charges and including estimated amortization of intangible assets of US$.03 to US$.04, are expected to be in the range of US$.81 to US$.87, an increase of 9 percent to 18 percent from last year's first quarter," said Paul J. Reilly, senior vice president and chief financial officer. Full Year Results Arrow's net income for 2007 was US$407.8 million on sales of US$16.0 billion, compared with net income of US$388.3 million on sales of US$13.6 billion in 2006. Net income for 2007 includes a restructuring and integration charge of US$11.7 million (US$7.0 million net of related taxes) primarily related to initiatives taken by the company to improve operating efficiencies and the acquisition of KeyLink. Net income for 2007 also includes an income tax benefit of US$6.0 million, net, principally due to a reduction in deferred income taxes as a result of the reduction in the statutory tax rate in Germany. Excluding these items, net income would have been US$408.8 million for 2007. Net income for 2006 includes a restructuring and integration charge and costs associated with pre-acquisition warranty and environmental claims of US$16.1 million (US$11.7 million net of related taxes) and a loss on prepayment of debt of US$2.6 million (US$1.6 million net of related taxes). During 2006, the company settled certain tax matters covering multiple years. As such, the company recorded a reduction in the provision for income taxes of US$40.4 million and related interest expense of US$4.0 million (US$2.4 million net of related taxes) related to tax years prior to 2006. Excluding these items, net income would have been US$358.7 million for 2006. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics Inc. -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. The company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands, United Kingdom, Argentina, Brazil, Mexico, Australia, China, Hong Kong, Korea, Philippines and Singapore. * * * Arrow Electronics senior subordinated stock continues to carry Moody's Investors Service's Ba1 rating. The company's senior preferred stock is rated at Ba2. COMPULBIKE SA: Files Reorganization Petition in Argentina --------------------------------------------------------- Compulbike S.A. has requested for reorganization approval after failing to pay its liabilities since December 2007. The reorganization petition, once approved by the court, will allow Compulbike to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 12 in Buenos Aires. Clerk No. 23 is assisting the court in this case. The debtor can be reached at: Compulbike S.A. Rodriguez Pena 434 Buenos Aires, Argentina DANA CORP: Wants Court to Expunge 307 Scheduled Claims ------------------------------------------------------ Dana Corporation and its affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to disallow and expunge 307 claims totaling US$10,549,663, listed in their Schedules of Assets and Liabilities because those claims either have been (a) satisfied by the Debtors in full during the pendency of their Chapter 11 cases, or (ii) reduced to zero as a result of reconciliation of the Debtors' books and records after the filing of the Schedules. The 10 largest Satisfied Claims are: Scheduled Claimant Claim No. Claim Amount -------- --------- ------------ Acemco Automotive 54-F-1-19766 US$795,312 B&C Machine Company 54-F-1-20099 453,315 Mueller Impact 95-F-1-18463 364,619 Watson & Chalin 54-F-1-23671 288,513 HL Yoh Company 54-F-1-21338 228,042 Omaha Steel Castings 54-F-1-22480 233,162 Unity 54-F-1-24139 215,410 Avatar Components 54-F-1-20078 203,529 UPS Customhouse Brokerage 73-F-1-16075 166,138 Holland Group 54-F-1-21453 160,751 A list of the Satisfied Claims is available for free at: http://bankrupt.com/misc/Dana_SatisfiedClaims.pdf The Debtors also ask the Court to disallow and expunge 36 Scheduled Claims totaling US$264,589. Those Claims, according to Corinne Ball, Esq., at Jones Day, in New York, relate to executory contracts that the Debtors propose to assume under their Third Amended Joint Plan of Reorganization. Pursuant to the proposed assumption, the Contract Claims will be resolved and satisfied. The 10 largest Contract Claims are: Scheduled Claimant Claim No. Claim Amount -------- --------- ------------ Convisint 64-F-1-15592 US$45,640 Najico Spicer Co Ltd 54-F-5-100 38,996 Fredericktown School 54-F-1-21144 33,791 Automatic Data Processing 54-F-1-20069 16,675 Kace Logistics 73-F-1-15884 13,067 Knox County Career Center 54-F-1-21835 10,887 Argo Partners 54-F-1-23575 10,152 Shumaker Loop & Kendrick 54-F-1-23085 9,500 System Scale Corp 54-F-1-23301 8,741 Sourcenet Solutions Inc 54-F-1-23149 8,296 A list of the Contract Claims is available for free at: http://bankrupt.com/misc/Dana_ContractClaims.pdf Furthermore, the Debtors ask the Court to reduce the amount asserted by seven claims. Ms. Ball says that the Claims have already been paid or otherwise satisfied, or has been deemed satisfied and reduced in the Debtors' books and records. The Overstated Claims are: Scheduled Original Adjusted Claimant Claim No. Claim Amt. Claim Amt. -------- --------- ---------- ---------- Merrill Lynch 54-F-1-20976 US$173,418 US$617,255 Moores Machine 54-F-1-22254 346,393 292,657 Atchinson Casting 54-F-1-20043 188,904 111,788 Credit Suisse 54-F-1-20371 234,999 77,542 Madison Investment 54-F-1-23041 318,821 67,480 Ford Components 54-F-1-21122 113,641 27,117 Pricewaterhousecoopers 54-F-1-22720 154,000 5,000 As reported in the Troubled Company Reporter on Feb. 6, 2008, Dana and its debtor-affiliates' Third Amended Joint Plan of Reorganization became effective as of Jan. 31, 2008, and the Company emerged from Chapter 11 bankruptcy protection. About Dana Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming the Third Amended Joint Plan of Reorganization of the Debtors on Dec. 26, 2007. (Dana Corporation Bankruptcy News, Issue No. 70; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) GERIBA SRL: Proofs of Claim Verification Deadline is March 27 ------------------------------------------------------------- Marta Susana Taboada, the court-appointed trustee for Geriba SRL's bankruptcy proceeding, verifies creditors' proofs of claim until March 27, 2008. Ms. Taboada will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 1 in Buenos Aires, with the assistance of Clerk No. 2, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Geriba 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 Geriba's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Taboada is also in charge of administering Geriba's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Geriba SRL Araujo 1571/75 Buenos Aires, Argentina The trustee can be reached at: Marta Susana Taboada Ezeiza 2641 Buenos Aires, Argentina INCOFI SRL: Proofs of Claim Verification Ends on March 19 --------------------------------------------------------- Elsa Taborcias, the court-appointed trustee for Incofi SRL's bankruptcy proceeding, verifies creditors' proofs of claim until March 19, 2008. Ms. Taborcias will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 36, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Incofi 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 Incofi's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Taborcias is also in charge of administering Incofi's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Incofi SRL Bernardo de Irigoyen 330 Buenos Aires, Argentina The trustee can be reached at: Elsa Taborcias Carlos Pellegrini 1063 Buenos Aires, Argentina MIL OLIVOS: Proofs of Claim Verification is Until April 11 ---------------------------------------------------------- Clorinda Paula Donato, the court-appointed trustee for Mil Olivos SRL's bankruptcy proceeding, verifies creditors' proofs of claim until April 11, 2008. Ms. Donato will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 4 in Buenos Aires, with the assistance of Clerk No. 8, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Mil Olivos 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 Mil Olivos' accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Donato is also in charge of administering Mil Olivos' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Mil Olivos SRL Chacabuco 761 Buenos Aires, Argentina The trustee can be reached at: Clorinda Paula Donato Maipu 42 Buenos Aires, Argentina NERT SA: Proofs of Claim Verification Ends on March 10 ------------------------------------------------------ Mario Bekierman, the court-appointed trustee for Nert SA's bankruptcy proceeding, verifies creditors' proofs of claim until March 10, 2008. Mr. Bekierman will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 14 in Buenos Aires, with the assistance of Clerk No. 28, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Nert 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 Nert's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Mr. Bekierman is also in charge of administering Nert's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Nert SA Lavalleja 858 Buenos Aires, Argentina The trustee can be reached at: Mario Bekierman Avenida Scalabrini Ortiz 258 Buenos Aires, Argentina OIS SA: Proofs of Claim Verification Deadline is April 9 -------------------------------------------------------- Ana Beatriz Bravo, the court-appointed trustee for Ois SA's bankruptcy proceeding, verifies creditors' proofs of claim until April 9, 2008. Ms. Bravo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 4, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Ois 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 Ois' accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Ms. Bravo is also in charge of administering Ois' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Ois SA Tte. Gral. Juan Domingo Peron 456 Buenos Aires, Argentina The trustee can be reached at: Ana Beatriz Bravo 25 de Mayo 596 Buenos Aires, Argentina TELECOM ARGENTINA: Telecom Italia Positive on Argentine Probe ------------------------------------------------------------- Telecom Italia believes that the result of the Argentine antitrust agency's probe on Telecom Argentina would be positive for the company, Dow Jones Newswires reports, citing a person familiar with the situation. Dow Jones relates that the antitrust agency would make a ruling by the end of March on the probe it launched on Telecom Argentina in 2007. As reported in the Troubled Company Reporter-Latin America on Oct. 18, 2007, the Argentine government created a two-person board at Telecom Argentina to check whether Spanish firm Telefonica's purchase of a stake in Telecom Italia affects competition and whether the acquisition would lead to Telefonica having undue influence on the decisions of Telecom Argentina, which Telecom Italia controls. A consortium of Italian companies and Telefonica reached an accord on April 28, 2007, to indirectly acquire a 23.6% controlling stake in European operator Telecom Italia. Telecom Italia owns 50% of Sofora, Telecom Argentina's controller. Local investment group Grupo Werthein, Telecom Argentina's second biggest shareholder, claimed that Telefonica would eventually have an impact on Telecom Argentina. Comision Nacional asked Spanish telecommunications firm Telefonica, Telefonica de Argentina's parent firm, for additional documentation on its acquisition of a controlling stake in Telecom Italia. As reported on Oct. 30, 2007, Telefonica closed its acquisition of an indirect controlling stake in Telecom Italia. Dow Jones notes that the acquisition of the stake may conflict with Argentine telecom Entel's privatization law, which created two firms -- one in the north of Argentina and the other in the south, which later became Telecom Argentina and Telefonica de Argentina, respectively. Under privatization law, the two companies are not allowed to become shareholders in each other. The antitrust agency extended in December 2007 its investigation into Telecom Argentina by up to two months, Dow Jones says. If the antitrust agency rules that Telecom Argentina and Telefonica de Argentina have breached the privatization law, the agency may ask Telefonica and Telecom Italia to sell their shares in Telecom Argentina, Dow Jones states. Headquartered in Buenos Aires, Telecom Argentina S.A. -- http://www.telecom.com.ar/index-flash.html-- provides telephone- related services, such as international long-distance service and data transmission and Internet services, and through its subsidiaries, wireless telecommunications services, international wholesale services and telephone directory publishing. As of December 31, 2006, its telephone system included approximately 4.09 million lines in service. As of 2007, current approximate ownership of Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a consortium made up of: -- Werthein Group (48%) -- Telecom Italia -- France Telecom group (2%); * 41.5% publicly traded; and * 4.21% employee stock ownership program France Telecom sold its part of Telecom Argentina to the WertheinGroup, an Argentine agricultural concern owned in part by vice chairman Gerardo Werthein. As of 2007, current approximate ownership of Telecom Argentina is: * 54.74% by Nortel Inversora S.A., itself a consortium made up of: -- Werthein Group (48%) -- Telecom Italia group (50%) -- France Telecom group (2%); * 41.5% publicly traded; and * 4.21% employee stock ownership program. * * * On November 2006, Fitch Ratings assigned B long-term issuear default rating on Telecom Argentina SA. Fitch said the outlook is positive. TYSON FOODS: Board Picks Jim Kever as Lead Independent Director --------------------------------------------------------------- Tyson Foods Inc.'s Board of directors, during its quarterly meeting, has appointed Jim Kever as the company's lead independent director and a new chairman of its Compensation Committee. "Since becoming chairman, I've worked with the board on ways to enhance our approach to corporate governance," said John Tyson, chairman of Tyson Foods. "These most recent measures are evidence of the progress we continue to make in this important area of our business." Mr. Kever, who has been a director since 1999, was a former Envoy Corporation Chief Executive Officer and founder of an investment partnership. He will preside over sessions where independent directors meet outside the presence of insiders or company management. Mr. Kever will also serve on the board's Executive Committee, which also includes Don and John Tyson. The primary function of the Executive Committee is to act on behalf of the board during intervals between regularly scheduled quarterly meetings. In addition, Kever will continue to serve as chairman of the Audit Committee. The Tyson board also appointed Kevin M. McNamara to serve as chairman of its Compensation Committee. Mr. McNamara is Executive Vice President, Chief Financial Officer and Treasurer of HealthSpring, Inc. and joined the board in 2007. The primary functions of the Compensation Committee are to establish the company's compensation policies and oversee the administration of the company's employee benefit plans. This includes the annual granting of options, which the company does four days after announcement of earnings for the fiscal year. The practice of granting options on the same day each year was initiated three years ago. The newly-created Nominating Committee, to be composed entirely of independent directors, will consist of Jim Kever, Albert C. Zapanta, and Jo Ann R. Smith, who will serve as the chairperson. They will be responsible for identifying qualified candidates to serve as directors, a task previously handled by the entire board. The Nominating Committee's first task in 2008 is to identify candidates to nominate to the board as a new independent director. Once the identification and selection process is completed, which is expected to occur before the end of the company's fiscal year on Sept. 27, 2008, Tyson will have seven independent directors and four inside directors. Except for the Executive Committee, all committees of the Tyson board have been composed solely of independent directors for many years. In addition to the Audit, Compensation and Nominating Committees, the board also has a Governance Committee, which is chaired by Lloyd V. Hackley, the Chancellor of Fayetteville State University in North Carolina. The Tyson Board of Directors currently includes Richard L. Bond, Scott T. Ford and Barbara A. Tyson. About Tyson Foods Inc. Based in Springdale, Arkansas, Tyson Foods Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. 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. The outlook is negative. TYSON FOODS: Unit Finalizes Plan to Restructure Kansas Operations ----------------------------------------------------------------- Officials at Tyson Fresh Meats Inc., a Tyson Foods Inc.subsidiary, have finalized plans for restructured operations at the company's Emporia, Kansas, beef plant and have released a transition schedule. The final shift of beef slaughter operations at Emporia will be February 13, while the remaining processing shift will end February 15. Meanwhile, the start of new, value-added beef production at the plant will begin February 20. The restructured operations, which will employ between 600 and 700 people, will involve cold storage and shipping, specialty beef processing and ground beef processing. Last month Tyson announced plans to modify beef operations at Emporia, by discontinuing beef slaughter and some processing operations. The company initially reported the changes would result in the elimination of about 1,500 of the plant's 2,400 jobs. However, after additional analysis, company officials have determined the restructuring will involve the elimination of an additional 200 to 300 positions. "When senior management made the initial decision to discontinue slaughter operations, we believed it was important to promptly notify our Team Members and make public disclosure," said Jim Lochner, senior group vice president of Tyson Fresh Meats. "Our first announcement was based on what we knew at the time of the initial decision. Since the announcement, we've been able, with the assistance of the Emporia management team, to do a more extensive study of future production options and now have a better estimate of our staffing needs." Workers with certain production skills are being selected to fill many of the 600 to 700 jobs that will be part of the restructured operation. The process of notifying these workers, who will come from the plant's previous first and second shift operations, begins immediately and should be completed within a week. Additional processing and cold storage workers at the Emporia plant were given a layoff notice today, even though some of them will ultimately remain on staff as part of restructured operations at Emporia. "We realize this is a difficult process for everyone involved," Mr. Lochner said. "That's why we've worked as quickly as possible to determine specifically what type of operation will remain at Emporia and who we will need to run it successfully." Virtually all of the Emporia workers who have been displaced are being given the opportunity to work at one of the company's other facilities. So far, more than 500 have indicated an interest in transferring to other Tyson beef plants. This week, affected workers are also being offered incentives to transfer to some of the company's poultry plants. Workers displaced by the cutbacks will continue to be paid and receive benefits for 60 days, in accordance with federal law. Even though many of them will not be working at the Emporia plant during this 60 day period, they will continue to be paid during this period and now have time to explore other employment opportunities, including those available at Tyson. The company has no current plans to resume beef slaughter operations at Emporia. About Tyson Fresh Meats Tyson Fresh Meats Inc. is a supplier of premium beef and pork, as well as allied products, such as tanned hides used to make leather. The company markets it products globally. Tyson Fresh Meats is a subsidiary of Tyson Foods Inc. Headquartered in Dakota Dunes, South Dakota, Tyson Fresh Meats has 21 production sites in North America and employs almost 41,000 people. About Tyson Foods Inc. Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) -- http://www.tysonfoods.com/-- is a processor and marketer of chicken, beef, and pork. The company makes a wide variety of protein-based and prepared food products at its 123 processing plants. Tyson has approximately 114,000 Team Members employed at more than 300 facilities and offices in 26 states and 80 countries. 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. The outlook is negative. * ARGENTINA: Government's Inflation Reporting Faces Doubts ---------------------------------------------------------- Argentina's lower than forecasted consumer prices in January spurred concerns that officials continue to underreport inflation, Andrea Jaramillo of Bloomberg News reports. According to Bloomberg, Argentina's inflation-linked peso bonds slipped to a two-week low on that report. "The market is not convinced about the information being reported and that's obviously taking a toll on inflation bonds," Juan Ignacio Di Santo, an analyst at Puente Hnos Sociedad de Bolsa SA in Buenos Aires told Bloomberg. Serena Saitto of Dow Jones Newswires earlier reported that Argentina's statistics agency, INDEC, is under the International Monetary Fund's scrutiny, as the international organization seeks clarification of some methodology changes the agency introduced last year for calculating prices in sectors such as tourism, health, private schools and foods, Reports of data manipulation are hounding the agency, however, the government has repeatedly denied doing so, Dow Jones said. An INDEC spokesman told Dow Jones that the agency had received an e-mail from the Fund and that it is reviewing the questions laid out in that mail. An IMF spokesperson declined to comment on the matter, Dow Jones said. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Standard & Poor's Ratings Services assigned B+ long-term sovereign local and foreign currency ratings and B short-term sovereign local and foreign long-term ratings on Argentina. Standard & Poor's also placed 4 sovereign foreign currency recovery rating and a BB transfer and convertibility assessment rating. Standard & Poor's outlook for these ratings is stable. ============= B O L I V I A ============= INTERMEC INC: Reports US$16.4-Mln Net Income in Fourth Quarter -------------------------------------------------------------- Intermec Inc. reported its financial results for its fourth quarter and fiscal year which ended Dec. 31, 2007. For the three months ended Dec. 31, 2007, the company earned US$16.4 million on net revenues of US$253 million compared to net income of US$2.8 million on net revenues of US$219 million for the same period in 2006. "Intermec delivered a record revenue quarter with growth across all geographic regions," said Patrick J. Byrne, President and Chief Executive Officer. "We demonstrated progress towards our target business model of double digit growth and operating profit by delivering improved gross margins and operating leverage from Q4 of last year." Fiscal year 2007 revenues were US$849 million and net earnings were US$23 million compared to 2006 revenues of US$850 million and earnings from continuing operations of US$32 million. The company's 2007 results included senior management transition costs and severance charges effecting SG&A expense of US$1.8 million and US$4.9 million, in the fourth quarter and full year 2007, respectively. Fiscal year 2006 included a gain on Intellectual Property settlements regarding its smart battery patents in the amounts of US$16.5 million and a pre-tax gain of US$2.3 million from the sale of an investment. The company's 2006 results also included restructuring charges of US$11.6 million. Fourth quarter 2007 revenues increased 16 percent compared to the fourth quarter of 2006. Geographically during the fourth quarter, North American revenues increased 7 percent over the comparable prior-year period. Revenues in Europe, Mid-East and Africa increased 26 percent over the prior year period; while Latin America and Asia Pacific increased 33 percent and 17 percent, respectively. During the fourth quarter, Systems and Solutions revenue increased 28 percent and Printer and Media revenues increased 1 percent over the comparable prior-year period. Service revenue was flat compared to the prior-year period. The company's 2007 effective tax rate from continuing operations was 37.9 percent. The comparative effective tax rate of 23.2 percent for 2006 was impacted primarily due to settlement of foreign tax audits. The effective tax rate for the fourth quarter of 2007 was 37.2 percent compared to a net tax benefit realized in the fourth quarter of 2006. The company's cash equivalents and short-term investments increased US$51 million in the quarter, primarily as a result of cash flows from operations and approximately US$20 million from note receivable maturities. The cash equivalents and short-term investments position at the end of the fourth quarter totaled US$265.5 million. About Intermec Inc. Intermec Inc. -- http://www.intermec.com/-- develops, manufactures and integrates technologies that identify, track and manage supply chain assets. Core technologies include RFID, mobile computing and data collection systems, bar code printers and label media. The company has locations in Australia, Bolivia, Brazil, China, France, Hong Kong, Singapore and the United Kingdom. * * * Standard & Poor's Rating Services raised its ratings on Everett, Washington-based Intermec Inc. to 'BB-' from 'B+'. The upgrade reflects expectations that Intermec will sustain current levels of profitability and leverage. S&P said the outlook is stable. =========== B R A Z I L =========== BANCO NACIONAL: Funding BRL2.55B for Tele Norte Restructuring ------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social will finance BRL2.55 billion for the restructuring of Tele Norte Leste Participacoes, news daily Valor Economico reports. According to Valor Economico, the financing from Banco Nacional will put Tele Norte on solid footing to bid for Brasil Telecom. Business News Americas relates that the BRL2.55 billion has an unprecedented characteristic in Banco Nacional's funding system. Banco Nacional will be paid back according to the valorization of the stocks from the firm that will be created after Tele Norte acquires Brasil Telecom. BNamericas notes that Banco Nacional will offer BRL1.25 billion to Tele Norte shareholders Andrade Gutierrez and La Fonte so they could purchase the stock of other shareholders like GP Investimentos and Banco do Brasil insurance. Banco Nacional will offer BRL1.3 billion to Tele Norte's controller Telemar Participacoes to conclude capital restructuring. Andrade Gutierrez and La Fonte will have 20% each of Telemar Participacoes' capital. Banco Nacional will also take advantage of the valorization of the stocks for the BRL1.25 billion and the BRL1.3 billion loans. Andrade Gutierrez, La Fonte, and Telemar Participacoes will pay off the loan with interest as established in contracts if the stocks drop in value, BNamericas states. About Telemar Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. 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. DELPHI CORP: Court Allows 35 Trade Claims for US$52,000,000 ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved separate stipulations between Delphi Corp. and its debtor-affiliates, and certain trade claimants. The stipulations, in essence, provide for the allowance of 35 claims filed against the Debtors for roughly US$52,000,000 in the aggregate: Allowed Claimant Claim No. Claim Amount -------- --------- ------------ Albrecht, George 9773 US$1,439,976 Campbell, Ray 9784 2,659,593 Carlisle Engineered Products Inc. 11910 3,595,420 Crouse, James 9774 1,101,532 Cunningham, Charles 9761 1,053,744 DENSO International America, et al. 11244 0 Deutsche Bank & SPCP 14139 1,036,570 Deutsche Bank Securities Inc. 9940 6,678,072 Deutsche Bank Securities, Inc. 10724 1,342,252 Deutsche Bank, Osram Sylvania & SPCP 9993 1,065,225 Dils, Timothy 11629 329,377 Donald & Virginia Runkle 9787 9,683,853 Donaldson Company, Inc. 10490 310,932 Ebbert, William 14243 2,529,342 Flambeau Inc. 12212 584,258 Gaffe, Karen 9986 327,387 Grosse, Richard 9992 449,552 Heilman, David 9785 2,551,128 Kesler, Larry 10213 1,197,634 Key Safety Systems, Inc. 1790 82,475 Kilroy Realty LP 13268 2,186,444 Kralovich, George 11163 561,185 Latigo Master Fund Ltd. 2353 1,252,598 Lear Corp. 14015 0 Lundberg, Edward 11096 508,122 Meier, Gerald T. 10212 843,626 Molex Connector Corp. 7992 400,000 Ohio Edison Company 12181 589,907 Rassini, S.A. de C.V. 12399 401,165 Satterthwaite, Richard C. 10217 219,197 Sloan, George 9782 1,646,483 Solvay Advanced Polymers LLC 8192 115,290 Solvay Fluorides LLC 7089 550,066 Tosch, Paul 9783 4,118,745 Zeilinger, Robert 10195 923,589 Carlise reserves its right, pursuant to Section 503(b) of the Bankruptcy Code, to seek administrative priority status for US$168,880 of Claim No. 11910 as a valid reclamation claim. Key Safety Systems also reserves its right to assert administrative priority status for US$3,803 of Claim No. 1790. The Debtors, likewise, reserve their right to seek a judicial determination that Key Safety Systems' and Carlisle's reserved defenses are valid. On the other hand, the Court disallows and expunges 28 claims in their entirety: Disallowed Claimant Claim No. -------- ---------- Albrecht, Dorothy 9764 Campbell, Carolyn 9763 Crouse, Linda 9759 Cunningham, Mary Beth 9786 DENSO International America, et al. 10590 DENSO International America, et al. 11241 DENSO International America, et al. 11242 DENSO International America, et al. 11243 DENSO International America, et al. 11245 DENSO International America, et al. 15026 Deutsche Bank Securities, Inc. 16490 Deutsche Bank Securities, Inc. 16491 Dils, Paula 11628 Donald & Virginia Runkle 9758 Ebbert, Mary 9767 Grosse, Carolyn 9985 Guide Corp. 14070 Heilman, Mary Ann 9762 Kesler, Marlene 10216 Kralovich, Janice 11097 Lear Corp. 14016 Lightsource Parent Corp. 14245 Lundberg, Denys 11100 Meier, Barbara 10270 Satterthwaite, Karen 10234 Sloan, Kristin 9757 Tosch, Gay 9765 Zeilinger, Barbara 10259 Claim Nos. 14070 and 14245 fail to state a claim upon which relief may be granted, Judge Drain finds. If the Debtors fail to confirm a reorganization plan by July 1, 2008, that provides for treatment of unsecured claims that is substantially similar to the amounts provided in the confirmed First Amended Joint Plan of Reorganization, DENSO and Lear are authorized to reassert their claims in, at most, these amounts: Claimant Claim No. Claim Cap -------- --------- --------- DENSO International America, et al. 11244 US$3,391,804 Lear Corp. 14015 2,711,110 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. 111; 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 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: Proposal to Assign Steering Biz Contracts Disputed --------------------------------------------------------------- Thirty-four parties-in-interest have filed objections to Delphi Corp. and its debtor-affiliates' proposal to assume and assign certain executory contracts to the buyer of their steering and halfshaft businesses. Delphi is seeking to sell their steering business to Steering Solutions Corp., an affiliate of Platinum Equity, LLC, subject to higher and better offers. The interested parties that filed responses to the assumption and cure notices mailed by the Debtors are: * Alps Automotive, Inc. * American Aikoku Alpha, Inc. * Assembly Systems Innovators, LLC * BI Technologies Corp. * Canon U.S.A., Inc. * Castwell Products, LLC * E.I. du Pont de Nemours & Co. * F&G Multi-Slide Inc. * Freudenberg-NOK General Partnership * Furukawa Electric Company Ltd. * GMD Industries * Henkel Corp. * Hydro Aluminum North America, Inc. * Intermet Corp. * Lear Corp. * Liquidity Solutions, Inc. * MacArthur Corp. * Master Automatic, Inc. * Means Industries, Inc. * Millennium Industries Corp. * Nissan North America, Inc. * Robin Industries, Inc. * Rosler Metal Finishing USA, LLC * S&Z Metalworks, Ltd. * SKF USA Inc. * Small Parts, Inc. * Stoneridge, Inc. * Teleflex Inc. * Temic Automotive of North America, Inc. * The Timken Co. * Timken U.S. Corp. * United States Steel Corp. * Universal Bearings, LLC * ZF Boge Elastmetall, LLC A number of the Responding Parties assert that the Debtors must cure all defaults under their executory contracts before those contracts may be assumed or assigned. They also contend that the Debtors have failed to provide adequate assurance of Steering Holdings' or any other purchaser's future performance under the contracts to be assumed. Certain of the Responding Parties argue that the Debtors may not assume certain portions of their contracts. Rather, the Debtors must either assume or reject the parties' entire contracts. Several of the Responding Parties complain that the Debtors have not provided sufficient information in the Assumption and Cure Notices to enable them to identify the contracts to be assumed, while others relate that they have not yet been able to identify the contracts listed in the Notices. Alps Automotive points out that certain of the Assumed Contracts have already been rejected by the Debtors. GMD Industries clarifies that its "Surcharge Implementation" agreement with the Debtors is binding on certain of the Assumed Contracts. Certain of the Responding Parties also disagree with the cure amounts for the assumption of their contracts, arguing that the Debtors' proposed cure amounts are understated. Specifically, 19 Cure Objectors assert that the Debtors owe them cures at these amounts: Debtors' Objector's Proposed Proposed Cure Objector Cure Amount Cure Amount ------------- ----------- ----------- American Aikoku Alpha, Inc. 5,823 US$415,761 Assembly Systems Innovators, LLC 21,651 871,011 BI Technologies Corp. 167,743 189,736 Castwell Products, LLC 108,063 138,425 F&G Multi-Slide Inc. - 250,422 Furukawa Electric Company Ltd. - 58,992 Hydro Aluminum North America, Inc. 533,760 603,421 Liquidity Solutions, Inc. 43,080 86,009 MacArthur Corp. 23,206 43,041 Master Automatic, Inc. 3,013 153,868 Millennium Industries Corp. 585,170 1,178,152 Robin Industries, Inc. 9,615 25,640 S&Z Metalworks, Ltd. - 5,250 SKF USA Inc. 103,159 345,366 Small Parts, Inc. 1,536 7,599 Stoneridge, Inc. 436,312 564,996 Temic Automotive of North America 2,255,696 2,516,096 Universal Bearings, LLC 275,509 283,230 ZF Boge Elastmetall, LLC - 17,830 Rosler Metal also asserts that the Debtors should pay it US$585,346 as cure for the assumption of the parties' contracts. As reported in the Troubled Company Reporter on Jan. 28, 2008, Delphi will seek Court approval of the sale at the hearing on Feb. 21, 2008. Delphi said, in a news release, plans to conclude the sale as soon as all regulatory approvals have been received. Platinum Equity, through Steering Solutions, has offered to purchase Delphi's global steering and halfshaft businesses for US$447,000,000. Delphi previously disclosed in January 2007 that it was working on finalizing a sale and purchase agreement with Platinum Equity regarding the sale of the businesses. Pursuant to a Master Sale And Purchase Agreement dated Dec. 10, 2007, have agreed to sell the global steering and halfshaft businesses to Platinum Equity, but subject to competitive bidding at an auction scheduled for Jan. 28, 2008. Delphi said that Platinum Equity was the sole bidder for the subject assets. Steering Holding, LLC, previously opposed to Platinum Equity's designation as stalking horse bidder on grounds that (i) the proposed break up fee and expense reimbursements, which could reach up to US$8,000,000, is not justified; and (ii) it could provide a better offer for Delphi's steering and halfshaft businesses. The Court, however, denied Steering Holding's objection, but the party was entitled to submit a competing bid by Jan. 18, 2008, under the Court-approved protocol. Under its steering and halfshaft businesses, Delphi designs and manufactures steering and driveline systems and components for automotive vehicle manufacturers and adjacent markets. The businesses operate 22 manufacturing plants in 15 locations worldwide, five regional systems engineering centers, and 11 local customer support enters. In addition, the businesses employ approximately 9,700 individuals globally, about 5,625 of whom work in the U.S. The businesses' customer base includes major domestic, transnational, and international original equipment manufacturers, including General Motors Corp., Fiat, Ford, DaimlerChrysler, and Chevy. In 2006, the businesses generated US$2,530,000,000 in revenues. 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. 111; 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 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: Wants Lease Decision Period Extended Until May 31 -------------------------------------------------------------- Pursuant to Section 365(d)(4) of the Bankruptcy Code, Delphi Corporation and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to extend the time within which they may assume or reject unexpired leases of nonresidential real property through and including the earlier of: (a) the effective date of their confirmed First Amended Joint Plan of Reorganization; and (b) May 31, 2008. The Debtors are lessors or lessees with respect to roughly 80 unexpired leases of nonresidential real property, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates. Certain of the Real Property Leases, he notes, are among the Debtors' primary assets and are vital to their business. The First Amended Plan provides for the assumption of all of the Real Property Leases on the Plan Effective Date. The Debtors' current Lease Decision Deadline is Feb. 29, 2008. Out of an abundance of caution, the Debtors seek an extension of the Lease Decision Deadline in the event the confirmed Plan does not become effective by Feb. 29, 2008. The Proposed Lease Decision Deadline will be subject to the terms of the Plan and Plan Confirmation Order, Mr. Butler assures the Court. The Proposed Deadline, he adds, coincides with the Debtors' current deadline to solicit acceptances of a reorganization plan. The Debtors have remained and fully intend to remain current with respect to all outstanding postpetition rental obligations under the Real Property Leases, Mr. Butler continues. The non-debtor parties to the Real Property Leases will not be prejudiced by the proposed extension because the Debtors are making payments under the Real Property Leases as they come due, he says. If the Lease Decision Deadline is not extended, the Debtors may face uncertainty with respect to their ability to assume or reject the Real Property Leases if the Plan does not become effective by the current Feb. 29, 2008 Lease Decision Deadline, Mr. Butler maintains. 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. 111; 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 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: Wants More Time to Remove Pending Civil Actions ------------------------------------------------------------ Delphi Corporation and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to extend their deadline to remove pending judicial and administrative proceedings through the earlier of: (a) 30 days after the effective date of their Joint Plan of Reorganization; and (b) 30 days after the Court enters an order terminating the automatic stay with respect an action. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates, the Debtors are parties to more than 200 judicial and administrative actions pending in various courts or administrative agencies throughout the United States. The Debtors' current deadline to remove Actions in accordance with Section 1452 of the Judiciary and Judicial Procedure Code and Rule 9027 of the Federal Rules of Bankruptcy Procedure is Feb. 29, 2008. The Debtors expect to emerge from Chapter 11 during the first quarter of the year. An extension, Mr. Butler asserts, is necessary in the event that the Debtors' bankruptcy emergence date is delayed beyond Feb. 29, 2008. An extension, he adds, will afford the Debtors an opportunity to make fully informed and prudent decisions concerning the possible removal of the claims and causes of action in the Actions, thus protecting the Debtors' valuable right to adjudicate the Actions economically if current or future circumstances warrant their removal. The Debtors' request will not prejudice any party whose proceeding is removed from seeking remand under Section 1452(b) of the Bankruptcy Code, Mr. Butler points out. 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. 111; 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 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. DIRECTV GROUP: Buys Patent Portfolio License From TPL Group ----------------------------------------------------------- The DIRECTV Group Inc. has purchased a Moore Microprocessor Patent(TM) (MMP) Portfolio license from The TPL Group. DIRECTV distributes digital entertainment programming via satellite to residential and commercial subscribers. "We welcome DIRECTV to the rapidly growing list of MMP licensees," said Carl Silverman, Vice President, Licensing for Alliacense. "The recently announced settlement with all remaining defendants in TPL's MMP patent infringement case in Texas together with a favorable Markman ruling have really ignited our licensing activity." The sweeping scope of applications using MMP Portfolio design techniques continues to encourage the world's leading manufacturers of end user products from around the globe to become MMP Portfolio licensees. Since January 2006 over 30 global companies from the US, Europe, Japan, Korea and Taiwan have purchased MMP Portfolio licenses. The MMP Portfolio patents, filed by The TPL Group in the 1980s, cover techniques that enable higher performance and lower cost designs, and are fundamental to consumer and commercial digital systems ranging from DVD players, cell phones and portable music players to communications infrastructure, medical equipment -- and automobiles which today have dozens of microprocessor-based key features and benefits. About MMP Portfolio The Moore Microprocessor Patent Portfolio contains intellectual property that is jointly owned by the privately-held TPL Group and publicly-held Patriot Scientific Corporation (OTCBB: PTSC). The MMP Portfolio includes seven U.S. patents as well as their European and Japanese counterparts. It is widely recognized that the MMP Portfolio protects fundamental technology used in microprocessors, microcontrollers, digital signal processors (DSPs), embedded processors and system-on-chip (SoC) devices. About DIRECTV Group Headquartered in El Segundo, California, The DIRECTV Group Inc. (NYSE:DTV) -- http://www.directv.com/-- provides digital television entertainment in the United States and Latin America. It has two segments, DIRECTV U.S. and DIRECTV Latin America. The DIRECTV U.S. segment provides direct-to-home digital television services in the multichannel video programming distribution industry in the United States. The DIRECTV Latin America segment provides digital direct-to-home digital television services to approximately 1.6 million subscribers in 27 countries, including Brazil, Argentina, Venezuela, and Puerto Rico. * * * In April 2007, Standard & Poor's Ratings Services affirmed the 'BB' corporate credit and 'BB-' senior unsecured debt rating on The DIRECTV Group Inc. S&P said the outlook is stable. In addition, Standard & Poor's raised the bank loan rating on US$2 billion of credit facilities at DIRECTV Holdings LLC, a wholly owned subsidiary of The DIRECTV Group Inc, to 'BB+' from 'BB' and revised the recovery rating to '1' from '3'. DIRECTV GROUP: FCC Chair Backs Liberty-News Corp. Stake Swap ------------------------------------------------------------ U.S. Federal Communications Commission Chairman, Kevin J. Martin, told reporters Friday that he will compel the agency to approve a deal between Liberty Media Corporation and News Corp. at a meeting on Feb. 26, 2008. Under the deal, News Corp. will exchange its interest in DirecTV Group Inc. with Liberty Media's interest in News Corp. The deal has been awaiting approval from the agency and the Department of Justice for at least a year, according to the reports. As reported in the Troubled Company Reporter on Dec. 8, 2006, Liberty Media said it plans to exchange its stake in News Corp. for 39% of DirectTV. Greg Maffei, Liberty Media's chief executive officer said the company at that time was holding talks about some alternatives including DirectTV. "One of the appeals of DirectTV is there's a lot of financial flexibility," Mr. Maffei said. If a deal is reached, Liberty Media might reduce its stake in DirectTV to as small as 21.5%, Mr. Maffei further said in the report. Liberty Media, Mr. Maffei added, could keep the stake or seek full control of the business, which would minimize taxes. The parties has reached an US$11 billion deal that includes News Corp.'s stake in DirectTV. About News Corp. News Corporation is a diversified international media and entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers; book publishing; and other. The activities of News Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and the Pacific Basin. About Liberty Media Headquartered in Englewood, Colorado, Liberty Media Corporation (NasdaqGS: LINTA) -- http://www.libertymedia.com/-- owns interests in a broad range of electronic retailing, media, communications and entertainment businesses. Those interests are attributed to two tracking stock groups: the Liberty Interactive group, which includes Liberty's interests in QVC, Provide Commerce, IAC/InterActiveCorp, and Expedia, and the Liberty Capital group, which includes Liberty's interests in Starz Entertainment, News Corporation, and Time Warner. About The DIRECTV Group Headquartered in El Segundo, California, The DIRECTV Group Inc. (NYSE:DTV) -- http://www.directv.com/-- provides digital television entertainment in the United States and Latin America. It has two segments, DIRECTV U.S. and DIRECTV Latin America. The DIRECTV U.S. segment provides direct-to-home digital television services in the multichannel video programming distribution industry in the United States. The DIRECTV Latin America segment provides digital direct-to-home digital television services to approximately 1.6 million subscribers in 27 countries, including Brazil, Argentina, Venezuela, and Puerto Rico. * * * As of Feb. 9, 2008, The DIRECTV Group Inc. still carries Standard & Poor's Ratings Services' 'BB' corporate credit and 'BB-' senior unsecured debt rating given on April 3, 2007. The outlook remains stable. LOJAS COLOMBO: Bond Repurchase Prompts S&P's Rating Withdrawal -------------------------------------------------------------- Standard & Poor's Ratings Services has withdrawn its 'B' long-term corporate credit rating on Lojas Colombo S.A. and its 'B' debt rating on the company's two-year Eurobonds issuance of US$50 million. The bonds were fully repurchased at maturity in December 2007, and the company chose not to maintain its global scale rating. Lojas Colombo SA -- http://www.colombo.com.br-- is the fifth- largest retail chain in Brazil. Based in Rio Grande do Sul, Brazil, the company has approximately 7,000 employees in 350 stores all over the States of Rio Grande do Sul, Santa Catarina, Parana, Sao Paulo and Minas Gerais. NOVELIS INC: Incurs US$49 Mil. Net Loss in Quarter Ended Dec. 31 ---------------------------------------------------------------- Novelis Inc., a subsidiary of Hindalco Industries Limited, reported a net loss of US$49 million for the third quarter of fiscal year 2008, which ended on Dec. 31, 2007. This compares with a net loss of US$105 million for the corresponding period of 2006. Novelis incurred a pre-tax loss of US$45 million on sales of US$2,735 million, compared with the prior-year period when it incurred a pre-tax loss of US$140 million on sales of US$2,472 million. The US$95 million increase in pre-tax earnings reflects significant underlying operational improvement. This increase is due to a number of positive business factors, including the following: -- Product mix improvements and price increases added approximately US$45 million of pre-tax earnings compared with the prior-year period. -- The company's exposure to customer contracts with metal price ceilings was reduced by US$42 million, net of hedges, compared with the prior-year period. -- Corporate selling, general and administrative expenses were reduced by US$22 million driven by streamlining of corporate staff and costs related to financial reporting requirements in the prior year. -- Interest expense was US$10 million lower primarily due to penalty interest and the write-off of backstop commitment fees incurred during the prior year as a result of the company's delayed filings and lower interest rates in the current year. The prior year's quarter included the benefit of a US$26 million gain from the sale of an equity interest in a non-consolidated affiliate and certain rights to develop hydroelectric power plants in South America. In addition to these items, pre-tax earnings during the quarter ended Dec. 31, 2007, were impacted by certain income and expense items associated with fair value adjustments recorded at the date of acquisition. The net pre-tax impact of these items was a benefit of US$8 million primarily driven by the amortization of accruals related to unfavorable contracts (recorded at fair value at the date of acquisition) partially offset by higher depreciation and amortization. "While the bottom line is still not satisfactory, these results reflect continued progress towards improving our performance in an environment of high energy costs and volatile metal price and currencies," said Martha Brooks, President and Chief Operating Officer. "Product mix improvements, price increases and reduced exposure to contracts with metal price ceilings are examples of the steps we have taken to improve our business fundamentals." Included in the net loss of US$49 million for the third quarter of fiscal year 2008 is US$4 million of income tax expense. Significant tax items in the quarter included: -- US$32 million of tax expense related to exchange translation and re-measurement items; -- US$14 million of tax expense on valuation allowance increases primarily related to tax losses in certain jurisdictions where the company believes, based on current facts and circumstances, it will not be able to utilize those losses; and -- US$32 million of tax benefit associated with enacted tax rate changes. Cash taxes paid during the third quarter of fiscal year 2008 were US$19 million. About Novelis Based in Atlanta, Georgia, Novelis Inc., (NYSE: NVL) (TSX: NVL) -- http://www.novelis.com/-- is the global provider of aluminum rolled products and aluminum can recycling. The company operates in 11 countries and has approximately 12,900 employees. Novelis has the capability to provide its customers with a regional supply of technologically sophisticated rolled aluminum products throughout Asia, Europe, North America and South America. Through its advanced production capabilities, the company supplies aluminum sheet and foil to the automotive and transportation, beverage and food packaging, construction and industrial, and printing markets. Novelis South America operates two rolling plants and primary production facilities in Brazil in the Latin American region. Novelis also has operations in Germany, Switzerland and Korea. * * * In July 2007, Fitch Ratings affirmed the Issuer Default Rating for Novelis Inc. and Novelis Corp. at 'B' and assigned a negative rating outlook. Fitch said the rating outlook is negative. About US$2.4 billion of debt is affected by the ratings. TEREX CORPORATION: Hart-Scott-Rodino Waiting Period Expires ----------------------------------------------------------- Terex Corporation disclosed the expiration of the mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, in connection with the cash tender offer by Terex for all of the outstanding shares of common stock of A.S.V., Inc. for US$18.00 per share. The tender offer is being made pursuant to a merger agreement with ASV, dated as of Jan. 13, 2008, and is scheduled to expire at midnight, New York City time, at the end of Feb. 25, 2008, unless extended. About ASV A.S.V. Inc. -- http://www.asvi.com/-- designs, manufactures and sells rubber track machines and related components, accessories, and attachments. Its purpose-built chassis and patented rubber track undercarriage technology are unique and lead all rubber track loaders in innovation and performance. ASV products are able to traverse nearly any terrain with minimal damage to the ground, making them effective in markets such as construction, landscaping, forestry and agriculture. ASV's wholly-owned subsidiary Loegering Mfg., Inc. designs, manufactures and sells traction products and attachments for the skid-steer industry. Goldman, Sachs & Co. acted as financial advisor to ASV on this transaction. About Terex Corp. Headquartered in Westport, Connecticut, Terex Corporation (NYSE:TEX) - http://www.terex.com/-- manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, surface mining, shipping, transportation, refining, and utility industries. Terex offers a complete line of financial products and services to assist in the acquisition of Terex equipment through Terex Financial Services. The company operates in five business segments: Aerial Work Platforms, Construction, Cranes, Materials Processing & Mining, and Roadbuilding, Utility Products and Other. The company has operations in Australia, Brazil, China, Japan, Germany, United Kingdom, among others. * * * In August 2007, Moody's placed the company's long-term corporate family rating and probability of default rating at Ba2, bank loan debt rating at Ba1, and senior subordinate rating at Ba3. These ratings still hold to date. Moody's said the outlook is stable. XERIUM TECH: Hires Stephen Light as New President & CEO ------------------------------------------------------- Xerium Technologies Inc. has appointed Stephen R. Light as its new President and Chief Executive Officer, effective Feb. 11, 2008. Mr. Light will also become a member of the company's board of directors concurrently with the effectiveness of his appointment as President and Chief Executive Officer. Mr. Light comes to Xerium Technologies having recently completed the highly successful turnaround of Flow International Corp., the world's largest producer of industrial waterjet cutting and cleaning equipment. Prior to Flow, Mr. Light was President and CEO of OmniQuip Textron and held senior level management positions at General Electric, Emerson Electric and N.V. Phillips. Mr. Light replaces Thomas Gutierrez, who has resigned as an officer and director of the company. The board of directors expresses its thanks to Mr. Gutierrez for his contributions to the company during his six-year tenure as CEO, including the successful completion of the company's initial public offering in 2005. Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. * * * Moody's Investors Service changed the outlook on Xerium Technologies, Inc.'s ratings to negative from stable, and affirmed the company's corporate family rating at B1; Guaranteed senior secured term loan B at B1 rating; and Guaranteed senior secured revolving credit facility at B1 rating. The change in outlook to negative reflects Xerium's weaker than expected operating performance primarily due to