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 Wednesday, February 13, 2008, Vol. 9, Issue 31 Headlines A R G E N T I N A ALITALIA SPA: AirOne SpA Welcomes More Partners for Stake Bid ALITALIA SPA: Air France to Place Company Under Direct Control ARMELINO ROSA-VARELA-BARRALIA: Seeks Bankruptcy Okay from Court BANCO INDUSTRIAL: Sells ARS73 Million of Short-Term Debt DANA CORP: Newco Gets 'BB-' Rating from S&P After Chapter 11 Exit DELTA AIR: Launches Flight to St Kitts FERRO CORP: Expects US$500-Mln Net Revenues in 2007 Fourth Quarter FIDEICOMISO FINANCIERO: Moody's Rates Debt Securities at B1 GIDEON INVESTMENT: Claims Verification Deadline is March 26 INVERSIONES Y REPRESENTACIONES: Earns ARS5.8MM in First Half '08 SCO GROUP: Gets Court OK to File Chapter 11 Plan Until May 11 TEMPEST WORLDCOM: Proofs of Claim Verification Ends on March 20 TENNECO INC: Bags Ford Motor's Hot-End Emission Control Business TRANS ROGAL: Proofs of Claim Verification Deadline is March 21 UTSTARCOM INC: Appoints Diego Martinez as Regional VP & Gen. Mgr. * ARGENTINA: India Targets 3 Billion Trade by 2010 A R U B A VALERO ENERGY: Moody's Reviews Low-B Ratings for Likely Upgrade B A H A M A S HARRAH'S ENT: Issues US$6.3 Billion Aggregate Sr. Secured Notes B A R B A D O S DIGICEL LTD: Hires Tanya Menzies as CEO for Tonga Unit * BARBADOS: IMF Official Says Tourism Vulnerable to US Slowdown B E L I Z E CATALYST PAPER: To Acquire Snowflake Mill from AbitibiBowater CATALYST PAPER: S&P Says Ratings Unaffected by Snowflake Buyout * BELIZE: Government to Avoid Bond Issuances B E R M U D A ASIA GAMMA: Sets Final Shareholders Meeting for March 10 CLAYTON PARTNERS: Sets Final Shareholders Meeting for March 14 MAN MAC: Proofs of Claim Filing Deadline is February 15 SENATE INSURANCE: Proofs of Claim Filing Deadline is March 7 SOLAR ENTERPRISES: Proofs of Claim Filing is Until February 22 B O L I V I A SENSIENT TECH: Earns US$77.8 Million in Year Ended Dec. 31 B R A Z I L ARROW ELECTRONICS: To Acquire ACI Assets BANCO BRADESCO: Cuts Monthly Interest Rates to 2.64% from 3.70% BANCO NACIONAL: Reaches BRL64.9 Billion Disbursements in 2007 BANCO NACIONAL: Power Sector Loans Increase 207% to BRL12.8 Bil. BR MALLS: Forms Partnership to Manage 70 Villa Daslu Stores DELPHI CORP: Lenders Have Problems Syndicating $6.1 Billion Loan FORD MOTOR: Awards Hot-End Emission Control Business to Tenneco GENERAL MOTORS: Paying US$0.25 First Quarter Dividend on March 10 GENERAL MOTORS: Invests US$69 Mil. in Ohio Diesel Engine Plant GENERAL MOTORS: May Have to Fund Delphi's Exit, Investors Say JAPAN AIRLINES: Reports JPY20.4BB Income for First Nine Months JAPAN AIRLINES: Chairman to Leave Post on March 31 JAPAN AIRLINES: Paying JPY48 Million on Employee Suit TECUMSEH PRODUCTS: Names Edwin Buker as Board Chairman USINAS SIDERURGICAS: Plans to Boost Unit's Iron-Ore Production XERIUM TECH: Appoints Three Officers to Executive Roles C A Y M A N I S L A N D S ABLAMID INVESTMENT: Proofs of Claim Filing Deadline is Feb. 25 ABLAMID INVESTMENT: Final Shareholders Meeting is on February 25 BANK OF INDIA: Raises INR1,360 Crore from Share Issue LA CHAINE: Proofs of Claim Filing Deadline is February 25 NEW ORIENTAL: Sets Final Shareholders Meeting for February 25 PARMALAT SPA: Venezuela May Confiscate Firm's Plant TRADED POLICIES: Proofs of Claim Filing is Until February 25 C H I L E ARAMARK CORP: Improved Credit Prompts S&P to Affirm B+ Rating SCIENTIFIC GAMES: Wins Ticketing Deal w/ French Lottery Operator C O L O M B I A BRIGHTPOINT INC: To Deliver Google Services on Mobile Devices C O S T A R I C A SIRVA INC: Seeks Court Okay to Employ KCC as Claims Agent SIRVA INC: Wants to Hire TS&S as Conflicts Counsel E C U A D O R PETROECUADOR: Amazon Drilling Ban Talks May Affect Firm H O N D U R A S CHOICE HOTELS: Inks Alliance Agreement With Outrigger Ent. J A M A I C A SUGAR COMPANY: Frome Experimenting With Green Cane Harvesting M E X I C O ASARCO LLC: Grupo Mexico Says No to Sale of Assets CHEMTURA CORP: Increases Prices on Some Polymer Additive Products FEDERAL-MOGUL: Insurers, et al., Oppose Plan A Modifications FEDERAL-MOGUL: Mesothelioma Claimants Back Plan A Modifications INTERSTATE HOTELS: Acquires 22 Exel Inn Properties KRONOS INC: Inks Human Resource Services Pact With Winn-Dixie MAXCOM TELECOM: Net Income Reaches MXN61-Mln in Full-Year 2007 NUANCE COMM: Incurs US$15.4 Million Net Loss in First Quarter OPEN TEXT: Raymond James Reaffirms Outperform Rating on Shares * MEXICO: S&P Says Structured Finance Unscathed by World Crunch P E R U QUEBECOR WORLD: Moody's Rates US$1-Bln DIP Facilities at Ba2 & Ba3 P U E R T O R I C O CENTENNIAL COMM: Names Stephen Vanderwoude as Non-Exec Chairman CHATTEM INC: Recalls Icy Hot Seat Products After Burn Reports NUTRITIONAL SOURCING: Wants Until May 2 to File Chapter 11 Plan NUTRITIONAL SOURCING: Empresas Bids US$26.5M for De Diego Assets UNO RESTAURANT: Robert M. Vincent to Leave Executive VP Position U R U G U A Y GERDAU SA: Net Income May Drop 11% to BRL791MM in 4th Qtr. 2007 * URUGUAY: New Cabinet Members To Take Office Next Month V E N E Z U E L A CITGO PETROLEUM: Effect of Parent's Asset Freeze Undetermined INTERNATIONAL PAPER: Earns US$327 Million in Fourth Quarter LEAR CORP: Forms Global Operating Structure; Names 2 Executives * VENEZUELA: Threatens to Confiscate Parmalat & Nestle's Plants X X X X X X * Moody's and S&P Trying to Patch Up Torn Credibility * S&P Sees Central America's Economic Growth to Decrease in 2008 * SEC Plans to Require Rating Firms to Disclose Past Performanc - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: AirOne SpA Welcomes More Partners for Stake Bid ------------------------------------------------------------- AirOne S.p.A. is inviting local and foreign investors to join its binding offer for the Italian government's 49.9% stake in Alitalia S.p.A., Reuters reports, citing AirOne chairman Carlo Toto. As reported in the TCR-Europe on Feb. 7, 2008, AirOne said its offer will be financially backed by Intesa Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan Stanley and Nomura Holdings Plc. TPG Inc. and Pirelli & S.p.A. chairman Marco Tronchetti Provera may join AirOne in its Alitalia bid. A spokesman for Giorgio Armani, meanwhile, denied reports that Milan-based fashion designer is mulling to participate in AirOne's stake bid. AirOne said it would present a binding offer once it wins an appeal at the Italian Regional Administration Court of Lazio. As reported in the TCR-Europe on Feb. 5, 2008, AP Holding S.p.A., investment arm of AirOne, has filed an appeal with the court to declare null and void a Dec. 28, 2007, decision of Italy's Ministry of Economy and Finance to commence exclusive talks to sell the Italy's stake to Air France. AirOne winning the suit would allow it to present its binding offer for the state-owned carrier. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. 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. ALITALIA SPA: Air France to Place Company Under Direct Control -------------------------------------------------------------- Air France-KLM S.A. would place Alitalia S.p.A. under direct control if it acquires the Italian government's 49.9% stake in the national carrier, Reuters reports, citing sources privy to the French airline. A union leader earlier told Reuters that Air France is planning to place Alitalia under a sub-holding for three years until the Italian carrier breaks even. This, according to the source, would mean that both airlines could keep bilateral landing rights agreed at state level. Share Swap The sources added to Reuters that the Italian government could sit at Air France's board if it becomes a shareholder at the French carrier by agreeing to a share swap deal. According to Reuters, Air France is offering EUR0.35 per share for the government's stake. As reported in the TCR-Europe on Jan. 17, 2008, Alitalia and Italy have commenced exclusive sale talks with Air France-KLM. The carriers have until mid-March to reach an agreement, which would be approved by the government. 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. Legal Contest The talks are currently contested by AirOne at the Italian Regional Administration Court of Lazio. The court will convene on Feb. 20, 2008, to hear an appeal filed by AP Holding S.p.A., investment arm of AirOne, to declare null and void a Dec. 28, 2007, decision of Italy's Ministry of Economy and Finance to commence exclusive talks to sell the government's 49.9% stake to Air France-KLM SA. Slated to appear on the hearing are the regional government of Lombardy, Air France and Codacons. As reported in the TCR-Europe on Feb. 7, 2008, AirOne said it would present a binding offer for Italy's stake once it wins its appeal. AirOne said its offer will be financially backed by Intesa Sanpaolo S.p.A., Goldman Sachs Group Inc., Morgan Stanley and Nomura Holdings Plc. TPG Inc. and Pirelli & S.p.A. chairman Marco Tronchetti Provera may join AirOne in its Alitalia bid. 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. ARMELINO ROSA-VARELA-BARRALIA: Seeks Bankruptcy Okay from Court --------------------------------------------------------------- The National Commercial Court of First Instance in Buenos Aires is studying the merits of Armelino Rosa-Varela-Barralia S.R.L.'s request to enter bankruptcy protection. Armelino Rosa-Varela-Barralia filed a "Quiebra Decretada" petition, after failing to pay its debts. The petition, once approved by the court, will transfer control of the company's assets to a court-appointed trustee who will supervise the liquidation proceedings. The debtor can be reached at: Armelino Rosa-Varela-Barralia S.R.L. Quirno 7 Buenos Aires, Argentina BANCO INDUSTRIAL: Sells ARS73 Million of Short-Term Debt -------------------------------------------------------- Nuevo Banco Industrial de Azul said in a statement that it has sold some ARS73 million worth of short-term debt with an 11% coupon. Business News Americas relates that "the papers were sold with a 2.5% differential over the Badlar rate" -- the average interest rate banks pay for deposits over ARS1 million. BNamericas notes that Citicorp Capital Markets handled the issue. Nuevo Banco Industrial de Azul S.A is headquartered in Buenos Aires, Argentina, and it had assets of ARS1.8 billion and deposits for ARS0.8 billion, as of March 2007. The bank has 22 branches. It is one of the principle banks of Argentina. It provides corporate banking, exterior commerce, capital markets, and markets of exchange rates. * * * On Jan. 30, 2008, Moody's assigned a Caa1 long-term foreign currency deposit rating to Nuevo Banco Industrial de Azul S.A. DANA CORP: Newco Gets 'BB-' Rating from S&P After Chapter 11 Exit ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Toledo, Ohio-based Dana Holding Corp. following the company's emergence from Chapter 11 on Feb. 1, 2008. The outlook is negative. "The ratings are based on the exit financing, capital structure, and other terms and conditions under Dana's plan of reorganization filed with the bankruptcy court, which has now been consummated," said Standard & Poor's credit analyst Nancy Messer. At the same time, Standard & Poor's assigned Dana's US$650 million asset-based loan revolving credit facility due 2013 a 'BB+' rating (two notches higher than the corporate credit rating) with a recovery rating of '1', indicating an expectation of very high (90%-100%) recovery in the event of a payment default. In addition, S&P assigned a 'BB' bank loan rating to Dana's US$1.43 billion senior secured term loan (one notch above the corporate credit rating) with a recovery rating of '2', indicating an expectation of average (70%-90%) recovery. The bank loan ratings assume that any remaining conditions that predate the bank facility are satisfied or waived. Dana had US$1.6 billion of balance sheet debt outstanding at emergence from bankruptcy. The capital structure also includes US$792 million of 4% cash-pay convertible preferred stock, held by Centerbridge Partners L.P. and certain prior creditors, which Standard & Poor's views as equity. The ratings reflect Dana's weak business profile and aggressive financial profile. Dana is a significant participant in the global automotive marketplace, manufacturing under-the-vehicle products such as axles, driveshafts, and other structural, sealing, and thermal products. Dana's customers are original equipment manufacturers of vehicles in the light, heavy-duty commercial, and heavy off-road markets. S&P could lower the ratings over the next year if Dana fails to generate free cash flow, whether because of slower restructuring efforts, more adverse market conditions, or failure to install a strong executive leadership team. In addition, S&P could lower the ratings if Dana's strategic or financial policies take a more aggressive turn under the new board of directors and executive management team. Any of these occurrences could inhibit Dana's free cash flow and the potential for reduced leverage in the near term. S&P could revise the outlook to stable if market conditions stabilize and Dana is able to modestly expand sales and EBITDA in the next few years, and if restructuring activities produce improved and sustainable adjusted EBITDA margin in 2008-2009 at 10% or better. The assignment of a stable outlook would also require S&P's confidence that the financial policy and business strategy of Dana's new owners would remain consistent with the current rating and that the company would resolve prior accounting issues. S&P would also need to see evidence, through the achievement of profitable new business wins, that the company is establishing itself as a credible long-term global competitor in its markets. About Dana Corp. 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. DELTA AIR: Launches Flight to St Kitts -------------------------------------- Delta Air Lines has launched a direct flight from Atlanta Hartsfield Jackson International to St Kitts and Nevis, Caribbean 360 reports. According to Caribbean 360, the flight would spur economic advancement in St Kitts and Nevis in terms of expanding access from non-traditional ports in the United States. A tourism official commented to Caribbean 360, "The efforts employed by the Ministry of Tourism in contracting airlift to and from the Federation have been strategic and deliberate. As the tourism product develops in terms of increased and improved accommodations, upgraded infrastructure and increased entertainment choices, it becomes easier to get major airlines to come on board." The Delta Air St. Kitts flight would accommodate an increasing number of travelers from smaller US cities who previously had to travel through Miami, New York or San Juan, Caribbean 360 states. Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. As of Sept. 30, 2007, the company's balance sheet showed total assets of US$32.7 billion and total liabilities of US$23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was US$13.5 billion. (Delta Air Lines Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter on Jan. 17, 2008, Standard and Poor's said that media reports that Delta Air Lines Inc. (B/Positive/--) entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will have no effect on the ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications. FERRO CORP: Expects US$500-Mln Net Revenues in 2007 Fourth Quarter ------------------------------------------------------------------ Ferro Corporation has revised its 2007 fourth quarter earnings estimates and a likely non-cash charge for goodwill impairment. Revised 2007 Fourth Quarter Estimates Ferro announced that earnings per share for the 2007 fourth quarter are now expected to be approximately 3 cents below the low end of analysts' current earnings estimates. As reported by Thomson First Call, analysts expect earnings between 15 and 23 cents per share, excluding special charges. The company's lower earnings expectations are primarily a result of a manufacturing interruption in December at its Bridgeport, New Jersey, organic chemical manufacturing plant and increased raw material costs across the company's businesses. The company expected net sales for the fourth quarter to be approximately US$570 million, exceeding its previous estimates, primarily due to surcharges and other product pricing actions and favorable changes in foreign exchange rates. Manufacturing operations were interrupted at the Bridgeport site in mid-December when an excess quantity of product was accidentally discharged into the plant's on-site wastewater treatment facility. As a result, the company incurred costs from scrapped product and additional wastewater treatment resulting in pre-tax charges of approximately US$2 million in the 2007 fourth quarter, or approximately 3 cents per diluted share. Also during the fourth quarter, Ferro continued to experience rising raw material costs, including sharply rising costs for cobalt and chrome oxide used in the company's Inorganic Specialties business. Since September, market prices for cobalt have increased over 50 percent and chrome oxide has increased over 35 percent. Through changes in product pricing the company was largely able to cover the actual raw material cost increases, however the company was unable to increase prices sufficiently to maintain gross margins. In addition, the higher product prices resulting from increasing raw materials costs has caused some customers to reduce purchases or choose other lower cost materials. "While I am disappointed with the fourth quarter results, we remain focused on continuing to improve the profitability of the Company," said Ferro Chairman, President and Chief Executive Officer James F. Kirsch. "Despite the difficult 2007 U.S. markets in housing, automobiles and appliances, we generated net cash from operating activities and reduced debt." Looking forward, Mr. Kirsch noted, "We are on track with the restructuring programs we have initiated over the past 18 months, and we remain committed to delivering our goal of ten percent operating margins as we enter 2010. We will accomplish this through organic growth of higher-value products such as our conductive metal pastes for solar applications, coupled with incremental savings generated from our ongoing restructuring programs, aggressive pursuit of manufacturing productivity improvements, improved pricing for value, and expense reductions." Ferro will provide details of the 2007 fourth quarter and full year financial results in a press release and conference call on Friday, Feb. 29. Detailed instructions for accessing the conference call will be announced shortly. Goodwill Impairment Evaluation Ferro annually assesses existing goodwill for impairment, as required by Statement of Financial Accounting Standards (SFAS) No. 142. The assessment consists of two tests. In the first step, Ferro tests goodwill for impairment by comparing the fair value of the businesses associated with the goodwill against the book value. If the net book value of a business exceeds its fair value, the Company must perform a second step to measure potential impairment. Ferro has completed the first step of its annual goodwill assessment which indicated that the book value of the polymer additives and pharmaceutical businesses exceeds their fair values. Consequently, Ferro is now performing step two of the goodwill impairment assessment. The anticipated impairment in the polymer additives business is triggered by the cumulative negative effect on earnings of a cyclical downturn in certain of the business' primary U.S.-based end markets, including housing and automobiles; anticipated additional product costs due to recent hazardous material legislation and regulations, such as the newly enacted European Union "REACH" registration system that requires chemical suppliers to perform toxicity studies of the components of their products and to register certain information; and higher forecasted capital expenditures related to the business. The anticipated impairment of goodwill in Ferro's pharmaceutical business is primarily the result of a longer time to transition the business from a supplier of food supplements and additives to a supplier of high-value pharmaceutical products and services. While Ferro has not concluded its accounting analysis, the Company now anticipates that it is likely that a material, pre-tax, non- cash impairment charge will be recorded that may represent a substantial portion, and potentially all, of the approximately US$114 million of goodwill recorded on its balance sheet for the polymer additives and pharmaceutical businesses. The company had goodwill of US$74 million associated with the polymer additives business and $40 million associated with the pharmaceutical business recorded as of Dec. 31, 2006. As required, the company will also be assessing the value of other long-term assets in these businesses. All impairment charges deemed necessary as a result of the current evaluations will be included in Ferro's fourth quarter 2007 financial results. The charge will not impact Ferro's cash balance or future cash flows, or result in a violation of any covenant of any of Ferro's debt instruments. Additionally, the charge will not affect the payment of the 14.5 cents per share dividend on Ferro's common stock that was previously approved by the company's board of directors. The dividend is payable on March 10 for shareholders of record on Feb. 15. About Ferro Corp. Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a global producer of an array of specialty chemicals including coatings, enamels, pigments, plastic compounds, and specialty chemicals for use in industries ranging from construction, pharmaceuticals and telecommunications. Ferro operates through the following five primary business segments: Performance Coatings, Electronic Materials, Color and Performance Glass Materials, Polymer Additives, and Specialty Plastics. Revenues were US$2 billion for the FYE ended Dec. 31, 2006. Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, among others. * * * In May 2007, Moody's Investors Service assigned a B1 corporate family rating to Ferro Corporation. Moody's also assigned a B1 rating to the company's US$200 million senior secured notes (issued as unsecured notes in 2001) due in January 2009 and an SGL-3 speculative grade liquidity rating. FIDEICOMISO FINANCIERO: Moody's Rates Debt Securities at B1 ----------------------------------------------------------- Moody's Latin America has assigned a rating of Aa2.ar (Argentine National Scale) and of B1 (Global Scale, Local Currency) to the debt securities of Fideicomiso Financiero Rio Cuarto I issued by Nacion Fideicomisos S.A. -- acting solely in its capacity as Issuer and Trustee. The ratings are based on: -- The credit quality of the seller, the Municipality of Rio Cuarto rated by Moody's Aa3.ar (Argentine National Scale) and B1 (Global Scale, Local Currency). -- The assignment of the Public Works Fund (Fondo de Obras Publicas) for the repayment of the debt securities. -- The additional collateral represented by certain tax revenues over non-subsidized real estate properties. -- The availability of a reserve fund equivalent to two months of interest, principal and trust expenses; and the obligation of the Municipality to replenish the reserve fund if required by the Trustee. -- The legal structure of the transaction. The Assets The assets in this transaction include, among others: (a) The cash flow generated by the Public Works Fund (Fondo de Obras Publicas), a fund created in 1992 in order to finance public works in the Municipality of Rio Cuarto, in the province of Cordoba, Argentina. (b) Collections of certain municipal real estate taxes. (c) Any liquid assets available in the trust, including any funds deposited in the trust account to be replenished by the Municipality, if required. The rating assigned to this transaction is linked to the rating of the Municipality of Rio Cuarto (B1/Aa3.ar/stable outlook). Therefore, any future change in the rating of the Municipality may lead to a change in the rating assigned to this transaction. Structure Nacion Fideicomisos (Issuer and Trustee) issued one class of debt securities denominated in Argentine pesos. The rated securities bear a floating interest rate (BADLAR + 11.25%) with a fixed cap of 26%. The debt securities are primarily back by the Public Works Fund. The fund was created in 1992 as an instrument to finance the public works in the City of Rio Cuarto. It is funded with an amount paid by local taxpayers in Rio Cuarto. This amount is calculated as an additional 10% rate over these concepts: a) Municipal real estate taxes, vehicles taxes, and commerce and industry taxes. b) Public services bills, such as: public water service, electricity and gas. c) An additional fixed amount of ARS450,000 submitted by the Municipal Entity of Public Health (Ente Municipal de Obras Sanitarias), which is the city's water service provider and sewage system administrator. In addition to the Public Works Fund, investors will have the benefit of additional collateral represented by the municipal tax charged over certain real estate properties. Finally, the transaction features a reserve account to be funded at closing with two months of principal and interest payments, plus estimated trust expenses for two months. If monthly collections are not sufficient to replenish the reserve account to this level, the Municipality is obliged to top up the reserve fund up to this required level. This feature effectively establishes legal recourse against the Municipality of Rio Cuarto. The Municipality of Rio Cuarto On Oct. 29, 2007, Moody's assigned issuer ratings of Aa3.ar (Argentina National Scale) and B1 (Global Scale, Local Currency) to the Municipality, based on its ability to generate a high level of own-source revenue, positive operating results which have been sufficient to fund increasing capital investments and a debt level which, while high, carries a manageable debt service cost. The Municipality of Rio Cuarto has achieved positive operating results over the last five years, and current revenues exceeded current spending by nearly 20% in 2005 and 16% in 2006. These positive results allowed the municipality to cover its capital investment requirements without borrowing. The ratings are constrained by the operating environment for regional and local governments in Argentina, which is characterized by a GDP per capita that is high for a developing country, very high GDP volatility, and a very low ranking on the World Bank's Government Effectiveness Index, indicating a high level of systemic risk. This environment is joined to an institutional framework under which regional and local governments carry significant responsibility for public services while nearly all rely heavily on federal transfers, suggesting a low level of fiscal flexibility in relation to revenue. Rating Action: -- ARS35,000,000 in Floating Rate Debt Securities of "Fideicomiso Financiero Municipalidad de Rio Cuarto I", rated Aa2.ar (Argentine National Scale) and B1 (Global Scale, Local Currency). GIDEON INVESTMENT: Claims Verification Deadline is March 26 ----------------------------------------------------------- Pablo Arturo Melaragni, the court-appointed trustee for Gideon Investment S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until March 26, 2008. Mr. Melaragni will present the validated claims in court as individual reports. 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 determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Gideon Investment 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 Gideon Investment's accounting and banking records will be submitted in court. Infobae didn't state the reports submission deadlines. Mr. Melaragni is also in charge of administering Gideon Investment's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Pablo Arturo Melaragni Viamonte 783 Buenos Aires, Argentina INVERSIONES Y REPRESENTACIONES: Earns ARS5.8MM in First Half '08 ---------------------------------------------------------------- Inversiones y Representaciones Sociedad Anonima has reported its results for First Half fiscal year 2008 ended Dec. 31, 2007. Highlights -- Operating results for the business segments look very solid. Revenue for the first six months of the current fiscal year increased by almost 46% to ARS497 million in comparison with those from the same period of the previous fiscal year, while operating results were up by 35.5% to ARS141.9 million. EBITDA increased 37% to ARS200 million. If the company consider only the rental segments (Shopping Centers, Offices and Hotels), EBITDA margins have made favorable progress when compared the first six-month period of the present fiscal year against the same period for the year before, and the last quarter against the first quarter of fiscal 2008. -- The share of the different segments in net sales was: sales and developments ARS63 million; offices and other rental properties ARS44.8 million; shopping centers ARS172.6 million; hotels ARS76 million; credit cards ARS139.9 million; and financial operations and others ARS0.3 million. -- In the Shopping Center segment, where there is an excellent performance, overall area continues to expand: in addition to the projects currently under way, have reached an agreement for the purchase of a shopping center known as "Soleil Factory," located in the San Isidro district, Province of Buenos Aires, which is to be formalized when certain conditions are met. -- In the coming months, in the Sales and Developments segment, the company expects to launch its first undertaking through the association with Cyrela Brazil Realty. During IIQ Fiscal Year 2008, the company sold its rights over the Torre Renoir II project, reporting a profit of US$4.7 million -- Regarding the company's land reserves, in November 2007 the Mayor of the City of Buenos Aires approved the project as recommended by the Council of Urban Environmental Planning. The company is now evaluating which steps to take next in the definition and implementation of the project. -- The company has completed the expansion works of the Hotel Llao Llao, which were finally opened at the end of December. -- In the second quarter of the present fiscal year, company subsidiary Banco Hipotecario partially reversed the negative results of the first quarter, which were due to unusual circumstances such as differences of valuation for holdings of particular financial assets in the portfolio at below-market value. The business indicators continue to be solid. -- As of Nov. 14, 2007, holders of convertible bonds and options had converted and exercised respectively a large portion of their holdings, raising the total company outstanding shares to 578,676,460. As a result of this, there are no outstanding convertible bonds or warrants. Furthermore, during this period the company cancelled other obligations and loans for a total of US$40 million. After the close of the period Fitch Rating increased the company's international debt ratings from B level to B+ and the national ratings from A- to AA- Financial Highlights (In thousands of Argentine Pesos: ARS) Dec. 31, 2007 Dec. 31, 2006 ------------- ------------- Total Sales 496,616 340,331 Operating income 141,901 104,694 Net Income 5,784 66,120 Net Income per GDS 0,10 1,51 Net Income per GDS diluted 0,10 1,21 Dec. 31, 2007 Dec. 31, 2006 ------------- ------------- Total Current Assets 982,900 1,175,790 Non Current Assets 3,173,074 2,969,109 Total Assets 4,155,974 4,144,899 Short-Term debt 77,712 196,655 Total Current Liabilities 558,219 652,082 Long-term debt 1,096,097 1,217,866 Total Non Current Liabilities 1,263,996 1,395,693 Total Liabilities 1,822,215 2,047,775 Minority interest 458,672 450,410 Shareholders' Equity 1,875,087 1,646,714 About Inversiones y Representaciones Created in 1943, Inversiones y Representaciones S.A. aka IRSA (NYSE: IRS) (BCBA: IRSA) is a leading company with activities in the business of offices, commercial centers and hotels. It is the only company in the industry whose shares are listed on the Bolsa de Comercio de Buenos Aires and The New York Stock Exchange. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels. Additionally, IRSA owns a 11.8% stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country which shareholder's equity amounted to ARS2,247.6 million. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Fitch Ratings upgraded Inversiones y Representaciones S.A.'s ratings including its Foreign currency Issuer Default Rating to 'B+' from 'B', Local currency IDR to 'B+' from 'B', US$150 million notes due in 2017 to 'B+/RR4' from 'B'. Fitch said all ratings have stable outlooks. SCO GROUP: Gets Court OK to File Chapter 11 Plan Until May 11 ------------------------------------------------------------- The Hon. Kevin Gross of the United States Bankruptcy Court for the District of Delaware further extended The SCO Group Inc. and its debtor-affiliates' exclusive periods to: a) file a Chapter 11 plan until May 11, 2008; and b) solicit acceptances of that plan until July 11, 2008. As reported in the Troubled Company Reporter on Jan. 8, 2008, the Debtors told the Court that they need more time to resolve an issue regarding Novell Inc.'s rights in connection with the sale of the Unix business. The Debtor said that Novell objected to the sale of that business and that the asset was a threshold issue that must be determined before any sale. Accordingly, the Debtors said that they have decided to allow the dispute to narrow before they file a Chapter 11 plan. The Debtors reminded the Court that Novell obtained permission to prosecute its counterclaim against the Debtor in the United States Bankruptcy Court for the District of Utah. Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of US$9,549,519 and total liabilities of US$3,018,489. TEMPEST WORLDCOM: Proofs of Claim Verification Ends on March 20 --------------------------------------------------------------- Nestor Rodolfo Del Potro, the court-appointed trustee for Tempest Worldcom Argentina S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until March 20, 2008. Mr. Del Potro will present the validated claims in court as individual reports on May 2, 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 determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Tempest Worldcom 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 Tempest Worldcom's accounting and banking records will be submitted in court on June 13, 2008. Mr. Del Potro is also in charge of administering Tempest Worldcom's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Nestor Rodolfo Del Potro Avenida Corrientes 1291 Buenos Aires, Argentina TENNECO INC: Bags Ford Motor's Hot-End Emission Control Business ---------------------------------------------------------------- Tenneco Inc. has been awarded by Ford Motor Company with a new hot-end emission control business on vehicles launching in model- year 2009 and 2010. "We are extremely pleased to be selected by Ford for this significant new emissions control business," said Tenneco Chairperson and Chief Executive Officer, Gregg Sherrill. "We continue to generate growth by investing in technology and enhancing our engineering capabilities to provide just what our customers need to meet current and future emissions requirements." Tenneco will supply components, including catalytic converters, that make up the "hot end" of the exhaust system for the Ford F- 150 light-duty truck, Ford Expedition, Lincoln Navigator and the Ford Econoline vehicles. Tenneco currently supplies the "cold end" (mufflers and tailpipes) of the exhaust system for the Ford F-150, Ford Expedition and Lincoln Navigator, now making it a full-system supplier for those platforms. The company was also awarded additional emission control content on the gasoline version of the F250/F350 Super-Duty in addition to what it already supplies on both the gasoline and diesel versions of the vehicles that launched in 2006. For 2010 model-year, Tenneco will supply emission control components for some of Ford's mid and upper mid-size passenger vehicle lines. This represents growth in the car segment with Ford Motor Company and supports Tenneco's global strategy to increase passenger car business. Tenneco referenced this new business in its third quarter 2007 earnings release last October, but was unable to name the customer at that time. Tenneco's Elkhart, Indiana, Seward Nebraska, Cambridge, Ontario, Ligonier, Indiana, Marshall, Michigan, and Kansas City, Missouri facilities will be involved in manufacturing components or final assembly. When fully launched, the company estimates all these programs together will represent approximately a 2.5% increase in its value-added revenues compared to its 2007 value-added sales. Tenneco is a strategic supplier to Ford Motor as a member of the company's Aligned Business Framework supplier group. Tenneco's global emissions operations include 48 emission control manufacturing facilities and four global engineering centers devoted to emission control engineering and advanced technology. The company's engineering capabilities and broad range of emission control products and systems help vehicle manufacturers address increasingly stringent emissions and noise regulations, the drive for better fuel efficiency and the emission control demands of diesel and other alternative fuel and hybrid vehicles. About Ford Motor Based 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. About Tenneco Based in Lake Forest, Illinois, Tenneco Inc., (NYSE: TEN) -- http://www.tenneco.com/-- manufactures automotive ride and emissions control products and systems for both the original equipment market and aftermarket. Brands include Monroe(R), Rancho(R), and Fric Rot ride control products and Walker(R) and Gillet emission control products. The company has operations in Argentina, Japan, and Germany, with its European operations headquartered in Brussels, Belgium. The company has approximately 21,000 employees worldwide. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings assigned a rating of 'BB-' to Tenneco Inc.'s new senior unsecured notes due 2015. The new notes replace a portion of the company's existing US$475 million in 10.25% senior secured second-lien notes for which the company is tendering. Fitch said the rating outlook is positive. TRANS ROGAL: Proofs of Claim Verification Deadline is March 21 -------------------------------------------------------------- Carlos Enrique Wulff, the court-appointed trustee for Trans Rogal S.R.L.'s bankruptcy proceeding, verifies creditors' proofs of claim until March 21, 2008. Mr. Wulff will present the validated claims in court as individual reports on May 5, 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 determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Trans Rogal 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 Trans Rogal's accounting and banking records will be submitted in court on June 16, 2008. Mr. Wulff is also in charge of administering Trans Rogal's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Carlos Enrique Wulff Virrey del Pino 2354 Buenos Aires, Argentina UTSTARCOM INC: Appoints Diego Martinez as Regional VP & Gen. Mgr. ----------------------------------------------------------------- UTStarcom, Inc. has named Diego Martinez as its Americas regional vice president and general manager. Based in UTStarcom's regional headquarters in Sunrise, Florida, Mr. Martinez will lead the company's sales efforts in Central America, Latin America (CALA) and North America while overseeing an extensive team of sales, engineering and support professionals in more than 30 countries. "Diego will be a strong asset to UTStarcom in CALA and North America, especially as we focus on new opportunities in IPTV and broadband in these key geographies," said UTStarcom senior vice president of international sales and marketing, , David King. "As a seasoned industry executive, he brings a wealth of experience and market knowledge to help fuel the company's regional growth." Prior to joining UTStarcom, Martinez served as vice president of application sales for Alcatel-Lucent and held various positions during his 15 year tenure with the company. He has also held multiple roles with leading telecommunications companies such as AT&T Network Systems, LG and Digital Equipment Corporation. Mr. Martinez holds a master's degree in business administration from Universidad de los Andes in Bogota, Colombia; a master's degree in international business administration from Nova Southeastern University in Davie, Florida; and a bachelor of science degree in electronic engineering from Universidad Javeriana in Bogota, Colombia. About UTStarcom Headquartered in Alameda, California, UTStarcom Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- provides IP-based, end-to-end networking solutions and international service and support. The company sells its broadband, wireless, and handset solutions to operators in both emerging and established telecommunications markets around the world. The company maintains operations in France, Italy, Spain, China, India, Japan, Argentina and Brazil. * * * As reported on Jan. 18, 2007, noteholders of UTStarcom Inc.'s 7/8% convertible subordinated notes due 2008 agreed to the proposed amendments of certain provisions of the indenture pursuant to which the notes were issued and a waiver of rights to pursue remedies available under the indenture with respect to certain default. Under the terms of the indenture, during the period beginning Jan. 9, 2007, and ending 5:30 p.m., May 31, 2007, any failure by the company to comply with certain provisions will not result in a default or an event of default, and the Notes will accrue an additional 6.75% per annum in special interest from and after Jan. 9, 2007, to the maturity date of the Notes, unless the Notes are earlier repurchased or converted. * ARGENTINA: India Targets 3 Billion Trade by 2010 -------------------------------------------------- India projects a 3.0 billion bilateral trade with Argentina by 2010, AFP cited minister of state for external affairs Anand Sharma as saying. Specifically, India is interested in investing in bio- technologies, Mr. Sharma told AFP. According to AFP, Argentina exports 800 million dollars of products to India while Indian exports to Argentina total around 300 million dollars. The news could go well with Argentine President Cristina Fernandez's goal of a 10% yearly economic growth. Citing the National Statistics Institute, Bill Faries of Bloomberg News relates that Argentina's economy expanded 9.6 percent in November from a year earlier, breaking the 9.2 percent median estimate of eight economists surveyed by Bloomberg. According to Bloomberg News, the pace was a result of increased consumer spending. "Consumption is flying in Argentina. This economy just keeps moving," Santiago Lopez Alfaro, an economist with Delphos Investments in Buenos Aires, told Bloomberg News. Argentina's economy, Bloomberg News says, is in its fifth year of growth averaging more than 8 percent a year, fueled by domestic consumption and record international prices for exports like soy and wheat. * * * 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. ========= A R U B A ========= VALERO ENERGY: Moody's Reviews Low-B Ratings for Likely Upgrade --------------------------------------------------------------- Moody's Investors Service placed Valero Energy Corporation's ratings on review for upgrade. The outlook had been positive. In spite of a cyclical downtrend in refining margins, the move to a review for upgrade reflects conservative leverage at year-end 2007, providing room to absorb a degree of expected higher leverage this year; management's statements to Moody's on the timing, scale, and use of after-tax proceeds from potential asset sales as the company evaluates its strategic alternatives, which include assessing opportunities to divest refineries to optimize its asset base; potential ranges of resulting 2008 leverage; ample back-up liquidity; and its pro-forma solid position as a large, geographically diversified independent refiner with an investment grade business profile. Timing stock buyback activity to coincide with potential asset sale proceeds is a key aspect of Valero Energy Corporation's ability to improve its current ratings. Simultaneously, Valero is conducting an important heavy multi-year capital spending program, led by expected major value adding projects at its Lake Charles, Port Arthur, and Quebec City refineries. If the ratings are upgraded, Moody's would subsequently reevaluate the new ratings if it appears that Valero Energy Corporation's profile will veer from Moody's view of suitable leverage for the ratings and in relation to the cash flow outlook. Valero's geographic diversity, with a large refining portfolio in four key regions, mitigates the impact of inherent real unscheduled downtime risk and geographically diversifies its regional margin trends as well. Valero Energy Corporation's deep conversion capacity also gives it greater diversification of its crude oil sourcing activity and allows it to also to convert cheaper low-quality crude oil and heavy intermediate feedstock into light refined products. In each of the possible near term pro-forma refining portfolio scenarios, Valero Energy Corporation would clearly retain the scale and diversification of an investment grade refiner. In the absence of an extended serious downturn, a higher rating would appear able to withstand an increase in debt of in the range of US$2 billion. At this point, it appears that management's potential 2008 actions, including the ultimate scale of stock buyback activity and its use of after-tax proceeds from a potential divestiture of the Aruba refinery (one of the plants for which the Company is pursuing strategic alternatives), renders leverage in a suitable range for the ratings. This general proportionality would need to be maintained in the event of additional divestitures. This rating action follows Moody's discussions with Valero Energy Corporation executives concerning the leverage parameters within which it will execute its de-capitalization program. That program involves large 2008 stock buyback activity, one to three potential refinery divestitures as it reviews strategic alternatives for certain plants, and use of any potential asset sale proceeds to fund stock buybacks and heavy capital spending. Moody's expects Valero Energy Corporation's capital spending and buyback activity to substantially exceed cash flow, barring a return to strong up- cycle refining margins. Moody's also believes margins will be on a generally weakening trend over the next several years. Refining is a highly volatile and cyclical business and Moody's believes that margins will continue to moderate through the decade. Regionally, Valero Energy Corporation's softest margin outlook appears to be in its West Coast market. In addition to softening margin trends, the ratings are also restrained by the potential for leveraging acquisitions, including foreign acquisitions. However, all other things held equal, Valero Energy Corporation enters the year with sufficiently low leverage to absorb a degree of re-leveraging without jeopardizing a higher rating. Headquartered in San Antonio, Texas, Valero Energy Corporation is North America's largest independent refining and marketing company, currently owning 16 oil refineries with nameplate crude oil distillation capacity of 2.6 barrels per day (bpd) and, including intermediate feedstock, 3.1 million bpd. VLO has one of the largest deep conversion capacities in North America. Its current portfolio of refineries displays a somewhat above average Nelson Complexity Index of 11.1 . Valero Energy Corporation is evaluating strategic alternatives for one to three refineries and each of the potential pro-forma scenarios would increase its current Nelson index. The pending major capital spending programs would further increase Valero Energy Corporation value adding capacity and complexity downstream from crude oil distillation. The company has operated an oil refinary in Aruba. As reported in the Troubled Company Reporter on Sept. 2, 2005, Moody's confirmed, among others, Valero Energy Corporation's Ba1 rated subordinated debentures and Ba2 rated mandatory convertible preferred stock. The ratings still hold to date, subject to the conclusion of Moody's rating review for possible upgrade. ============= B A H A M A S ============= HARRAH'S ENT: Issues US$6.3 Billion Aggregate Sr. Secured Notes --------------------------------------------------------------- Harrah's Entertainment Inc., in a regulatory filing dated Feb. 1, 2008, disclosed that its wholly owned subsidiary, Harrah's Operating Company Inc., issued US$4,932,417,000 aggregate principal amount of 10.5% senior cash pay notes due 2016 and US$1,402,583,000 aggregate principal amount of 10.5%/11.5% senior toggle notes due 2018. The notes mature on Feb. 1, 2016, and Feb. 1, 2018, respectively, pursuant to an indenture, dated Feb. 1, 2008, between the company, the Guarantors and U.S. Bank National Association, as trustee. The notes are guaranteed by Harrah's Entertainment Inc. and each wholly owned domestic subsidiary of the company that pledges its assets to secure the company's new senior secured credit facilities. The company may redeem the notes, in whole or part, at any time prior to Feb. 1, 2012 with respect to the senior cash pay notes, and Feb. 1, 2013, with respect to the senior toggle notes at a price equal to 100% of the principal amount of the notes redeemed plus accrued and unpaid interest to the redemption date and a "make-whole premium." The company may redeem the notes, in whole or in part, on or after Feb. 1, 2012, with respect to the senior cash pay notes, and Feb. 1, 2013, with respect to the senior toggle notes at the redemption prices set forth in the Indenture. At any time before Feb. 1, 2011, the company may choose to redeem up to 35% of the principal amount of each of the senior cash pay notes and the senior toggle notes at a redemption price equal to 110.75% of the face amount thereof with the net proceeds of one or more equity offerings so long as at least 50% of the aggregate principal amount of the notes at maturity issued of the applicable series remains outstanding afterwards. The Indenture contains restrictive covenants relative to, among other things, the incurrence of additional debt, the issuance of certain preferred shares, and the payment of dividends or other distributions in respect of its capital stock. Registration Rights Agreement On Feb. 1, 2008, Harrah's Operating Company Inc. entered into a registration rights agreement with Citigroup Global Markets Inc., Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated as representatives of Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Bear, Stearns & Co. Inc., Goldman, Sachs & Co., Morgan Stanley & Co. (the "Initial Purchasers") in connection with the notes, pursuant to the Indenture. Subject to the terms of the Registration Rights Agreement, the company will use its commercially reasonable efforts to register with the SEC exchange notes having substantially identical terms as the notes described above and to exchange freely tradable exchange notes for the notes described above within 365 days after the issue date of the notes described above (the "effectiveness target date"). The company will use its commercially reasonable efforts to cause each exchange offer to be completed or, if required, to have one or more shelf registration statements declared effective, within 30 business days after the effectiveness target date. A full-text copy of the Indenture, dated as of Feb. 1, 2008, by and among the company, the Guarantors and U.S. Bank National Association, as trustee, is available for free at: http://researcharchives.com/t/s?27ea A full-text copy of the Registration Rights Agreement, dated as of Feb. 1,2008, is available for free at: http://researcharchives.com/t/s?27eb About Harrah's Entertainment Headquartered in Las Vegas, Nevada, Harrah's Entertainment Inc.(NYSE: HET) -- http://www.harrahs.com/-- through its wholly owned subsidiary Harrah's Operating Company Inc., provides branded casino entertainment. Since its beginning in Reno, Nevada 70 years ago, Harrah's has grown through development of new properties, expansions and acquisitions, and now owns or manages casinos on four continents. The company's properties operate primarily under the Harrah's(R), Caesars(R) and Horseshoe(R) brand names; Harrah's also owns the London Clubs International family of casinos. In January 2007, it signed a joint venture agreement with Baha Mar Resorts Ltd. to operate a resort in Bahamas. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 17, 2008, Moody's Investor Service assigned a B2 Corporate FamilyRating and Speculative Grade Liquidity Rating of SGL-3 to Harrah's Entertainment Inc. Moody's also assigned ratings to the these new debt to be issued by Harrah's Operating Company Inc.: senior secured guaranteed bank revolving credit facility at Ba2, senior secured guaranteed term loans at Ba2, and senior unsecured guaranteed notes at B3. =============== B A R B A D O S =============== DIGICEL LTD: Hires Tanya Menzies as CEO for Tonga Unit ------------------------------------------------------ Digicel has appointed Jamaican Tanya Menzies as Chief Executive Officer of Digicel Tonga. As CEO, Ms. Menzies will be responsible for ensuring that Digicel delivers the best value, customer care and network coverage to the people of Tonga. Digicel Pacific Ltd, a sister company to Digicel Group in the Caribbean, acquired the Tonga mobile operator TONFON in November 2007. Digicel already has a presence in Samoa and Papua New Guinea and is committed to building a seamless network spanning the entire South Pacific region. Ms. Menzies joined Digicel in 2001 as a customer care agent just one month after the company's inaugural launch in Jamaica. As Digicel grew to become the number one mobile operator in the region, Ms. Menzies worked on the rollout of Digicel operations across the Caribbean holding a number of positions including Customer Care Support Manager in Trinidad & Tobago. She joined Digicel Pacific as Customer Care Director in September 2006. According to Vanessa Slowey, CEO of Digicel Pacific: "We are delighted that Tanya has taken the challenge of establishing our footprint in Tonga and confident she can lead her team to become the number one mobile provider in the country. Tanya brings to the role an inherent sense of what Digicel is all about - the customer is number one. This customer-centric focus has led Digicel to success both here in the South Pacific and the Caribbean." To date a total of ten Caribbean staff have taken opportunities with Digicel Pacific Ltd to help in the rollout of new operations there. Ms. Menzies has a Diploma in Business Administration and attended the Shortwood Teachers' College in Kingston for three years, studying Early Childhood Education. "I joined Digicel Jamaica in May 2001 as a call centre agent" said Ms. Menzies, newly appointed CEO of Digicel Tonga, "that and subsequent roles have contributed to my overall development. I have now taken these experiences to the South Pacific in pursuit of achieving the same success Digicel is experiencing in the Caribbean. I consider this appointment as an opportunity and a great achievement and I would say to anyone, don't limit yourself, believe and you will achieve." "I feel very much at home here in Tonga and I am committed to ensuring that Digicel delivers the excellent mobile service the people of Tonga deserve as well as becoming an active member of the Tonga community" added Ms. Menzies. With a population of 102,000 people and mobile penetration currently at just 35%, Digicel looks forward to maximizing the strong growth opportunities in the Tonga market. The entry of Digicel into Tonga also expects to bring significant benefits to the local businesses and the tourism industry in Tonga while at the same time increasing the competitiveness of Tonga as a regional business center. About Digicel Digicel Ltd. is a wireless services provider in the Caribbean region founded in 2000, and controlled by Denis O'Brien. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in Caribbean countries including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Bermuda, Cayman, and Curacao among others. Digicel finished FY2005 with 1.722 million total subscribers -- 97% pre-paid -- estimated market share of 67% and revenues and EBITDA of US$478 million and US$155 million, respectively. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings downgraded Digicel Limited's Foreign currency Issuer Default Rating to 'B-' from 'B' and US$450 million senior notes due 2012 to 'B-/RR4' from'B/RR4'. * BARBADOS: IMF Official Says Tourism Vulnerable to US Slowdown --------------------------------------------------------------- On his visit to Barbados Monday, Mr. Murilo Portugal, Deputy Managing Director of the International Monetary Fund said the country's small and open economy is vulnerable to a deteriorating external environment -- particularly if it affects its major tourist markets. Mr. Purtogal did not specify the slowing external environment in his statement but CaribWorldNews said Tuesday that the IMF top official is predicting the U.S. economic slowdown will also cause a slowdown in Caribbean and Latin American economies. While the times ahead may prove challenging, Mr. Portugal stated however that he is confident that the government of Barbados will tackle such challenges with skill and resolve. "Given its strong democratic tradition and political institutions, Barbados is well-placed to reap the benefits of globalization," he said. Mr. Portugal met with Prime Minister David Thompson, Minister of State Darcy Boyce, and Central Bank Governor Marion Williams in that visit. He also met with representatives of the donor community to reiterate the IMF's continued involvement in delivering technical assistance to the Caribbean region for another three years. According to Mr. Portugal, the extension through 2010 provides support from a pool of international donors to the Caribbean Regional Technical Assistance Center, located in Barbados. "I am very pleased that this support will allow CARTAC to continue providing high-quality capacity building to the public sectors in 21 Caribbean countries across several areas, such as, public financial management; tax and customs; financial sector supervision; capital market development; macroeconomic management; and statistics," he commented. Mr. Portugal also visited the offices of the Caribbean Development Bank and discussed with CDB President Compton Bourne about collaboration to promote regional development and sound economic governance. =========== B E L I Z E =========== CATALYST PAPER: To Acquire Snowflake Mill from AbitibiBowater ------------------------------------------------------------- Catalyst Paper Corporation has entered into a definitive agreement with a subsidiary of AbitibiBowater to acquire its Snowflake Arizona recycled newsprint mill for a total consideration of US$161 million in cash. The purchase price excludes trade receivables of approximately US$19 million that are being retained by AbitibiBowater. The acquisition will be financed through a combination of Catalyst Paper's revolving credit facilities and a proposed C$125 million rights offering. The Acquisition The Snowflake mill, a leading recycled newsprint producer with annual production capacity of 375,000 metric tonnes on two modern paper machines, is regarded as one of the lowest cost newsprint mills in North America. The acquisition of the Snowflake mill will increase Catalyst Paper's total newsprint production capacity to approximately 980,000 metric tonnes. The mill also houses a corrugating medium machine owned by Smurfit Stone Container Corporation, which is operated by the Snowflake mill. The Apache Railway Company, a short-line railroad operating freight service between Snowflake, AZ and Holbrook, AZ is also included in the transaction. In 2006, the Snowflake mill generated earnings before interest, taxes, depreciation and amortization of US$58 million on net revenues of US$195 million. For the last 12 months ending September 30, 2007, the Snowflake mill generated EBITDA of US$30 million on net revenues of US$185 million. These EBITDA figures exclude AbitibiBowater corporate charges. The acquisition of the Snowflake mill assets will provide the company with: * one of the lowest-cost newsprint mills in North America; * geographic, fibre and currency diversification; * the opportunity to expand into one of North America's fastest growing metropolitan regions, with no other newsprint mill operating within a 1,600 kilometre radius; * an energy self-sufficient asset with the potential to sell excess electricity onto the power grid; * expected annual synergies of at least US$10 million through increased scale which will provide general overall cost reduction in purchasing, sales, marketing and other services, and optimization of product distribution networks; and * favourable business environment and industry hosting conditions. "Snowflake is a first-class newsprint mill," noted Richard Garneau, president and chief executive officer of Catalyst Paper. "We are very pleased to announce this transaction as the Snowflake mill will improve our cost-competitiveness, strengthen our presence on the west coast of North America and provide us with a more freight logical way to serve existing as well as new customers. In addition, this acquisition will provide Catalyst with a natural hedge against Canadian dollar fluctuations and is particularly timely in the current environment of virgin fibre supply constraints." The acquisition of the Snowflake mill is subject to the consent of the U.S. Department of Justice, other customary conditions and completion of the rights offering financing and is expected to close in the second quarter of 2008. The transacting parties have also agreed to a three-year supply contract under which AbitibiBowater will provide approximately 40% of the Snowflake mill's recycled fibre supply in the first year, decreasing in proportion over the life of the agreement. Catalyst Paper intends to source the remainder of the mill's fibre requirements directly from the recycled fibre market in western North America. Financing the Acquisition The acquisition will be funded through a combination of debt and equity. Catalyst Paper intends to raise the equity portion by way of a C$125 million rights offering. Catalyst Paper has entered into an oversubscription agreement with Third Avenue International Value Fund, a fund related to Third Avenue Management LLC, under which TAVIX has agreed to exercise rights to subscribe for up to C$62.5 million of subscription receipts not otherwise subscribed for under the rights offering. TAVIX, along with other client accounts for which Third Avenue Management LLC serves as investment adviser, is Catalyst Paper's largest shareholder. In addition, Catalyst Paper has entered into a standby purchase agreement for the remaining C$62.5 million with BMO Capital Markets and Genuity Capital Markets, pursuant to which the standby purchasers have agreed to take up any subscription receipts not otherwise subscribed for under the rights offering. The remainder of the purchase price consideration will be financed using availability under Catalyst Paper's revolving credit facilities. The rights offering, which is subject to regulatory approval, will be made pursuant to a prospectus to be filed in each of the provinces of Canada. A registration statement will also be filed with the U.S. Securities and Exchange Commission. Further details of the distribution of the rights will be provided in the prospectus and registration statement. Under the terms of the rights offering, common shareholders of Catalyst Paper as of a record date which is yet to be determined, will receive rights to subscribe for subscription receipts of Catalyst Paper. Each subscription receipt will be automatically exchanged for one Catalyst Paper common share without additional consideration on completion of the Snowflake mill acquisition. The subscription price under the rights offering will be a 40% discount to the theoretical ex-rights price based on the five-day volume weighted average price of the common shares of the Company on the TSX prior to filing the final prospectus. Application will be made to list the rights for trading on the TSX. The rights will be exercisable for at least 21 days following the date of mailing of the final prospectus. Board Approval and Financial Advisor The Board of Directors of Catalyst Paper has approved these transactions. BMO Capital Markets acted as exclusive financial advisor to Catalyst Paper on the acquisition. About Catalyst Paper Headquartered in Vancouver, B.C., Catalyst Paper Corp. (TSX:CTL) produces mechanical printing papers in North America. The company also produces market kraft pulp and owns western Canada's largest paper recycling facility. With five mills at sites within a 160-kilometre radius on the south coast of BC, Catalyst Paper has a combined annual capacity of 2.4 million tonnes of product. The company has sales distributions in the United States, Asia, Australasia, and Europe. In Latin America, the company specifically has sales distributions in Central America. CATALYST PAPER: S&P Says Ratings Unaffected by Snowflake Buyout --------------------------------------------------------------- Standard & Poor's Ratings Services disclosed that the ratings on Catalyst Paper Corp. (B/Negative/--) are unaffected by the acquisition of the Snowflake, Arizona, mill from AbitibiBowater Inc. for US$161 million (merged entities Abitibi-Consolidated Inc. and Bowater Inc. are both rated B/Negative/--). The acquisition improves Catalyst's business risk profile because it will lower newsprint production costs, diversify operations, and reduce the company's exposure to a strong Canadian dollar. All of Catalyst's mills are in B.C. The acquisition should improve leverage modestly as it will be financed by 78% equity and 22% debt. However, it will reduce liquidity under Catalyst's credit facility by CAD36 million. As of Sept. 30, 2007, the company had CAD239 million available under its credit facility and no cash on hand. Headquartered in Vancouver, B.C., Catalyst Paper Corp. (TSX:CTL) produces mechanical printing papers in North America. The company also produces market kraft pulp and owns western Canada's largest paper recycling facility. With five mills at sites within a 160-kilometre radius on the south coast of BC, Catalyst Paper has a combined annual capacity of 2.4 million tonnes of product. The company has sales distributions in the United States, Asia, Australasia, and Europe. In Latin America, the company specifically has sales distributions in Central America. * BELIZE: Government to Avoid Bond Issuances -------------------------------------------- Belize's Prime Minister Dean Barrow told Catherine Bremer at Reuters that he will avoid bond issuances and instead will only borrow from international lenders. Belize aims for growth and wants to meeting interest payments, Reuters says, citing the official. Prime Minister Barrow told Reuters that Belize's US$1.2 billion public debt was restructured in late 2006 to ward off a default. He admitted that the restructuring of the debt was tricky but manageable. Prime Minister Barrow commented to Reuters, "There's no way we can operate without contracting more debt but (it) would have to be multilateral debt, concessionary loans from the World Bank, IDB (Inter-American Development Bank), international organizations like that. We're certainly not interested in going to the commercial markets the way the outgoing government did. The economy is growing so we do feel we'll be able to service the current debt and still take on the additional borrowing on concessionary terms." Prime Minister Barrow told Reuters that he plans for new legislation to make it easier to fight embezzlement to attract local and foreign investment in areas like oil drilling and ecotourism. He said he will also consider creating a capital market in Belize to attract equity capital. "We're going to operate on a straight basis with investors. We believe the private sector is what ought to drive the economy and we are going to do all we can to create the sort of enabling environment in which this can take place," Prime Minister Barrow commented to Reuters. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Standard & Poor's Ratings Services assigned B long- and short-term sovereign local and foreign currency ratings on Belize. Standard & Poor's also placed 3 sovereign foreign currency recovery rating and a B+ transfer and convertibility assessment rating. S&P said the outlook for these ratings is stable. ============= B E R M U D A ============= ASIA GAMMA: Sets Final Shareholders Meeting for March 10 -------------------------------------------------------- Asia Gamma Investments Ltd. will hold its final shareholders meeting on March 10, 2008, at Argonaut Limited, Argonaut House, 5 Park Road, Hamilton HM O9, Bermuda. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. CLAYTON PARTNERS: Sets Final Shareholders Meeting for March 14 -------------------------------------------------------------- Clayton Partners Limited will hold its final shareholders meeting on March 14, 2008, at 10:00 a.m., at PricewaterhouseCoopers, Dorchester House, 7 Church Street, Hamilton, HM 11, Bermuda. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. MAN MAC: Proofs of Claim Filing Deadline is February 15 ------------------------------------------------------- Man Mac Rellerli 10A Limited's creditors are given until Feb. 15, 2008, to prove their claims to Beverly Mathias, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Man Mac' shareholder decided on Jan. 30, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda SENATE INSURANCE: Proofs of Claim Filing Deadline is March 7 ------------------------------------------------------------ Senate Insurance Company Limited's creditors are given until March 7, 2008, to prove their claims or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Senate Insurance's shareholder decided to place the company into voluntary liquidation under Bermuda's Companies Act 1981. Claim forms can be submitted to: 30 Parliament Street Hamilton HM 12 Bermuda E-mail: lebasden@gov.bm. SOLAR ENTERPRISES: Proofs of Claim Filing is Until February 22 -------------------------------------------------------------- Solar Enterprises Limited's creditors are given until Feb. 22, 2008, to prove their claims to Peter Pearman, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Solar Enterprises' shareholder decided on Jan. 31, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Peter Pearman Clarendon House, Church Street Hamilton, Bermuda ============= B O L I V I A ============= SENSIENT TECH: Earns US$77.8 Million in Year Ended Dec. 31 ---------------------------------------------------------- Sensient Technologies Corporation reported US$18.2 million of net income for the three months ended Dec. 31, 2007, compared to net income of US$15.3 million for the same period in 2006. For the full year of 2007, the company earned US$77.8 million compared to net income of US$66.4 million in 2006. Revenue reached a record level of US$300.9 million for the fourth quarter, up 10.3% from the comparable period in 2006. Revenue for the twelve months ended Dec. 31, 2007, was US$1.2 billion, an increase of 7.8% over the prior year. Foreign currency translation had a favorable impact on revenue of 5% and 4%, respectively, for the fourth quarter and year. Cash provided by operating activities increased 33.7% in the fourth quarter to US$24.5 million, compared to US$18.4 million in the prior year's comparable period. For the year, cash provided by operating activities was US$105.2 million, an increase of 6.0% in comparison to US$99.2 million in the prior year. "This quarter marks our eighth consecutive quarter of strong earnings growth," said Kenneth P. Manning, Chairman and Chief Executive Officer of Sensient Technologies Corporation. "We had an outstanding year. Each of our operating groups contributed to the excellent results, and we expect our businesses to perform well in 2008." Business Review The Flavors & Fragrances Group reported record fourth quarter revenue and operating income. Revenue for the quarter increased 7.7% to US$199.4 million, compared to US$185.0 million in last year's comparable period. Fourth quarter operating income was up 11.3% to US$30.1 million, compared to US$27.0 million in the fourth quarter of 2006. Revenue for the twelve months ended Dec. 31, 2007, increased 6.9% to US$783.7 million, and operating income was up 12.3% to US$117.3 million. Group revenue for the quarter and twelve month period benefited from favorable foreign currency translation and from improved pricing and higher volumes. Operating income for both periods rose on the higher sales. Group operating margins in 2007 improved 80 basis points to 15.0%. The Color Group's fourth quarter revenue increased 14.7% to US$95.6 million, compared to US$83.4 million in last year's comparable period. Operating income for the quarter was up 20.3% to US$16.6 million, compared to US$13.8 million reported in the fourth quarter of 2006. Revenue for the twelve months ended Dec. 31, 2007, increased 7.9% to US$377.9 million and operating income was up 12.7% to US$67.0 million. Color Group revenue for the quarter and year reflects favorable foreign currency translation and solid volume growth in food and beverage colors. Volume growth in cosmetic colors was also strong. Group operating margins in 2007 improved 70 basis points to 17.7%. About Sensient Technologies Headquartered in Milwaukee, Wisconsin, Sensient Technologies Corp. -- http://www.sensient-tech.com/-- manufactures and markets colors, flavors and fragrances. Sensient also employs technologies to develop specialty chemicals for inkjet inks, display imaging systems and other applications. The company's principal products include flavors, flavor enhancers and bionutrients; fragrances and aroma chemicals; dehydrated vegetables and other food ingredients; natural and synthetic food colors; cosmetic and pharmaceutical additives; inkjet inks, technical colors, and specialty dyes and pigments, and chemicals for laser printing and flat screen displays. In Europe, Sensient maintains operations facilities and/or sales offices in Belgium, Bosnia, Croatia, Cyprus, Czech Republic, Germany, United Kingdom, France, Estonia, United Kingdom, Macedonia, Poland, Romania, Serbia and Montenegro, Turkey, Ukraine, and Wales. In Latin America, it has operations in Argentina, Bolivia, Brazil, Colombia, Costa Rica, Chile, Mexico, Peru, Uruguay and Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on July 23, 2007, Standard & Poor's Ratings Services has revised its outlook on Milwaukee, Wis.-based Sensient Technologies Corp. to stable from negative. At the same time, Standard & Poor's affirmed its 'BB+' corporate credit and senior unsecured debt ratings on the company. Approximately US$508 million of debt was outstanding as of June 30, 2007. =========== B R A Z I L =========== ARROW ELECTRONICS: To Acquire ACI Assets ---------------------------------------- Arrow Electronics Inc. has entered into an agreement to acquire all of the assets and operations of ACI Electronics LLC. ACI is one of the largest independent distributors of electronic components used in defense and aerospace applications. "With the acquisition of ACI, we continue to execute on our strategic priority to pursue opportunities in the more rapidly growing areas of the market. In the last five years, ACI has grown sales organically at a compound annual growth rate of approximately 20 percent. ACI will further bolster our number one position in the North American defense and aerospace marketplace, and when combined with our existing Arrow/Zeus business, we will have leading market share in many technology segments including military discretes. This strategic transaction will add to the breadth of our customer base and increase our staff of highly experienced sales professionals, while strengthening our relationships with key suppliers," said Michael J. Long, president of Arrow Global Components. ACI is headquartered in Denver, Colorado and distributes products in the United States, Israel, Spain and Italy. With approximately 60 employees, ACI provides value-added distribution services to over 2,000 customers who manufacture military and commercial aircraft systems, and other military applications. ACI is recognized by its customers as the distributor of choice for its product knowledge, value-added services, superior customer service, and strong supplier relationships. Many of ACI's customers and suppliers have been with the company for more than 20 years. Total sales in 2007 were approximately US$60 million and the acquisition will be immediately accretive to earnings by US$0.03 to US$0.04 in 2008. 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. BANCO BRADESCO: Cuts Monthly Interest Rates to 2.64% from 3.70% --------------------------------------------------------------- Banco Bradesco said in a statement that it has reduced monthly interest rates to 2.64% from 3.70% on a credit card for pensioners in the federal social security system Instituto Nacional de la Seguridad Social. In January lenders can't charge over 3.70% per month or service fees for INSS-linked credit cards and credit card payments can't be over 10% of a pensioner's monthly benefits, Business News Americas relates, citing the Brazilian government. For retirement loans, the government has a 2.64% limit on monthly interest rates to INSS beneficiaries and caps monthly loan payments at 20% of benefits, BNamericas says. Banco Bradesco increased credit card operations by 50.6% to BRL36.9 billion and payroll and retirement loans 59.1% to BRL6.11 billion in 2007. The bank wants to increase payroll and retirement loans by up to 110% in 2008. It will boost retail loans by up to 29%, BNamericas states. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO NACIONAL: Reaches BRL64.9 Billion Disbursements in 2007 ------------------------------------------------------------- The performance yielded by Banco Nacional de Desenvolvimento Economico e Social has achieved a historical record in 2007. The disbursements summed up BRL64.9 billion, 24% higher than what was recorded in 2006, and approvals were of BRL98.8 billion, 33% above what was registered last year. The projects framed and the consultations that account for the amount of future approvals and disbursements totaled BRL117 billion and BRL126.8 billion, respectively, in 2007, revealing increases of 23% and 20%. Infrastructure - The growth of disbursements and approvals of the BNDES system last year was largely influenced by the acceleration of infrastructure investments. In 2007, the projects of this particular sector received BRL25.6 billion from the Bank, representing a 62% expansion in comparison to 2006. The approvals, which serve as a thermometer for the volume of future disbursements, increased 104% under the same means of comparison, reaching BRL45.7 billion last year. Amongst the main projects approved one finds the financings to the Gas-pipeline Nordeste- Sudeste [Gasene] - BRL4 billion, and the gas-pipeline Urucu-Manaus - BRL2.5 billion, and to the expansion and modernization of Telefonica's network - BRL2 billion. The highlight in the infrastructure approvals, per segment, is left with investments on electric energy. The expansion reached 207%, summing BRL12.8 billion. Amongst the main projects one finds the Estreito Hydroelectric Plant project (BRL2.7 billion and 1,087 MW); the Foz do Chapeco Hydroelectric Plant project (BRL1.6 billion and 855 MW); and the Simplicio Hydroelectric Plant project (BRL1 billion and 333.7 MW). BNDES's direct participation in the sector enabled the total investments of BRL17.8 billion. The plants are part of Programa de Aceleracao do Crescimento [Growth Acceleration Program] - PAC, and comprise the potential portfolio of 183 projects included in the PAC which are currently under BNDES evaluation. In 2007, the Bank disbursed BRL5 billion for PAC investments in the energy, logistics, social and urban areas, besides the public administration area. The 183 projects sum up financings of BRL65.6 billion and total investments of BRL109.9 billion. Industry - The Bank's approvals for the industry sector reached BRL38.2 billion and the disbursements came to BRL26.4 billion in 2007, amounts which represent 39% and 40%, respectively, of the total released and approved last year, but these amounts also equal to a 3% and 2% reduction in comparison to the sector's performance in 2006. The slight drop is largely explained by the reduction of financing to exportation (BNDES-Exim), pre and post-shipping) in 2007. The disbursement for industry, once waiving out BNDES-Exim operation, presents a 39% growth, totaling BRL19.8 billion. The remaining BRL5.8 billion represent financings granted to exportation operations. The approvals for the industry sector, following the same criterion, grew 44% last year, summing up BRL31.4 billion. The retraction of the industry sector was also influenced by the seasonal behavior of some segments such as paper and cellulose, which function under investment cycles. Amongst the main projects approved for industry, in general, are those to MMX for the construction of infrastructure for iron ore mine exploration in the State of Minas Gerais, construction of a port terminal in Sao Joao da Barra, and a ore mine duct, in the amount of BRL2.3 billion; the financing for the acquisition of national machines and equipment by CSA iron and steel company, in Santa Cruz [State of Rio de Janeiro] of BRL1.5 billion; and the financing of the Atlantico Sul shipyard for the building of 10 ships, in the amount of BRL1.3 billion. BNDES' releases for machines and equipment carried out through the Finame credit line totaled BRL20.5 billion in 2007, which represents a 59% growth when compared to the previous year. The investment acceleration regarding capital goods reveals the dynamism of the Brazilian economy in the past year. Besides the expressive increase in the amount released, the number of Finame operations grew 48% in comparison to last year, reaching 81.6 thousand in 2007. Farming and cattle raising - The positive 2007 performance evidenced the end of a crisis experienced by the sector in the last few years. BNDES' disbursements grew 46%, reaching BRL5 billion, and approvals, which recorded 22% expansion in comparison to last year, totaled BRL5.2 billion. The farming and cattle raising sector represented 8% of the Bank's disbursement in 2007. Company-size - The micro, small and medium-size companies received from BNDES BRL12.1 billion last year. The amount represents a 50% expansion in relation to 2006 releases. The disbursements for individual entrepreneurs grew 31%, summing up BRL4 billion in 2007. One-hundred and eighty-six thousand operations were recorded for smaller size companies and individual entrepreneurs, equivalent to a 69% increase when compared to last year. The BNDES Card disbursed, in 2007, BRL509.2 million, an amount 126% superior to the BRL225.2 million recorded in 2006. Last year, more than 38 thousand BNDES Card operations were made - 118% more than the 17.6 thousand of 2006. The Bank has already issued 132 thousand cards directed to micro, small and medium-size companies. 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 NACIONAL: Power Sector Loans Increase 207% to BRL12.8 Bil. ---------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social's head Luciano Coutinho told the press that the firm's loan approvals increased 207% to BRL12.8 billion for the power sector in 2007, compared to 2006. The loans will help prevent power rationing in the coming years "despite the tight supply-demand balance," Mr. Coutinho told BNamericas. Banco Nacional loans for the power sector last year will open the door for investments of BRL17.8 billion, Business News Americas relates, citing Mr. Coutinho. According to BNamericas, most of the loans Banco Nacional authorized in 2007 will be allocated for the construction of these hydro plants: -- 1.09-giga watt Estreito, -- 855-megawatt Foz do Chapeco, and -- 334-megawatt Simplecio. Banco Nacional infrastructure director Wagner Bittencourt commented to BNamericas, "Approval for construction of new hydros, small hydros, wind farms and cogen projects will boost power availability in Brazil. When we finance renewables projects, we help the country ensure power supply, especially when hydrological conditions are not favorable." Mr. Coutinho told BNamericas that loan approvals this year is promising as Banco Nacional will help fund the construction of the Santo Antonio and Jirau hydro plants. Talks for the funding of the Santo Antonio are ongoing, while Banco Nacional will have another financing contract for Jirau. The funding portfolio for the power sector will have "tremendous boost" this year due to these projects. Loans for small hydros and cogeneration will also increase in 2008, BNamericas states, citing Mr. Coutinho. 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. BR MALLS: Forms Partnership to Manage 70 Villa Daslu Stores ----------------------------------------------------------- BR Malls Participacoes S.A. and Daslu has formed a partnership to manage Villa Daslu, an area connected to the Daslu Boutique that encompasses approximately 70 stores. The partnership was formed through controlling subsidiaries and does not include management of the Daslu Boutique and its international brands, which remain under current Daslu management. BR Malls currently owns and manages over 30 shopping malls in Brazil and will bring its management expertise to the 8,500 m2 that make up Villa Daslu, an area that together with the 7,000 m2 of the Daslu Boutique, forms the Espaco Daslu. What the partnership means to BR Malls is the opportunity to complement its current portfolio by positioning the company in the high-end fashion brand industry. BR Malls will take its expertise in managing shopping malls to Villa Daslu, implementing professional management to the business. Additionally, the partnership will allow Daslu to focus on its core business -- the Daslu Boutique -- and on its expansion strategy in Sao Paulo and in other important cities in Brazil.