/raid1/www/Hosts/bankrupt/TCRLA_Public/080221.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, February 21, 2008, Vol. 9, No. 37
Headlines
A R G E N T I N A
AGRONOMIA SA: Proofs of Claim Verification Deadline Is March 10
ALITALIA SPA: Air France to Invest EUR3 Billion in Six Years
BANCO MACRO: Earns ARS168.7 Million in Quarter Ended December 31
BUENOS AIRES BUREAU: Files for Reorganization in Court
COLETUR TRANSPORTE: Claims Verification Is Until March 27
DELTA AIR: Reports Traffic Results for January 2008
DISTRISER SRL: Court Concludes Reorganization
IDS SA: Files for Reorganization in Court
MALFATTI CONSTRUCCIONES: Claims Verification Is Until April 23
MANNY S MUSICAL: Files for Reorganization in Court
MASILY SA: Court Concludes Reorganization
MIE FRANCISCO: Trustee to File Individual Reports on April 2
MIE GERARDO: Trustee to File Individual Reports on April 2
NORVEGA SA: Court Concludes Reorganization
PELPASA SA: Proofs of Claim Verification Is Until April 30
QUEBECOR MEDIA: Buys 5,396,221 More Nurun Common Shares
REGIE ROYALE: Proofs of Claim Verification Deadline Is May 12
SERVI TRA: Court Concludes Reorganization
TELECOM ARGENTINA: Fitch Ups Foreign Issuer Default Rating to B+
TELECOM PERSONAL: Fitch Ups Foreign Issuer Default Rating to B+
TELEFONICA DE ARGENTINA: Fitch Lifts Local Currency IDR to BB
TRANSPORTES E INVERSIONES: Claims Verification Ends on April 29
TYSON FOODS: Working to Overcome Effects of Higher Grain Prices
B E R M U D A
MONTPELIER RE: Earns US$315.8 Million in Year Ended Dec. 31
SEA CONTAINERS: Formally Seeks Court Approval of Pension Pact
B R A Z I L
AAR CORP: Expanding Manufacturing Operations in California
BANCO CRUZEIRO: Earns BRL16 Million from Telebras Share Sale
BANCO DO BRASIL: To Combine Besc by Second Quarter
BNP PARIBAS: Moody's Cuts Credit-Linked Notes' Rating to Ba2
BRASKEM SA: Board OKs New Buyback Program for 19,862,411 Shares
BRASKEM SA: Launches First Polypropylene Resin in LatAm Market
COMPANHIA SIDERURGICA: Companhia Vale to Resume Pellets Supply
GERDAU SA: Investing US$120M in Minas Gerais Iron Ore Operations
GERDAU SA: Gets Hydroelectric Complex Concession
RHODIA SA: Appoints Pascal Juery as President for Novecare
SUN MICROSYSTEMS: Partners With TSMC for UltraSPARC Processors
ZIM CORP: Earns $155,758 in Third Quarter Ended Dec. 31, 2007
C A Y M A N I S L A N D S
BANK OF CHINA: Gets Nod for CNY10-Billion Stock Fund
CHENGWEI AAC: Proofs of Claim Filing Deadline Is March 5
DRAGONOX HOLDINGS: Proofs of Claim Filing Is Until March 5
FREESPIRIT CAPITAL: Sets Final Shareholders' Meeting for March 5
LEAVITT INSURANCE: Proofs of Claim Filing Deadline Is March 5
UBS PACTUAL: Sets Final Shareholders' Meeting for March 5
C O L O M B I A
GMAC LLC: Closing Down 75% of North American Auto Credit Offices
C O S T A R I C A
ALCATEL-LUCENT: Forms LatAm & Caribbean Operational Structure
D O M I N I C A N R E P U B L I C
BANCO INTERCONTINENTAL: Prosecution Wants Lubrano's Imprisonment
E L S A L V A D O R
CHOICE HOTELS: Board Declares US$0.17 Per Share Cash Dividend
H A I T I
ROYAL CARRIBBEAN: To Build US$27-Million Pier in Haiti
J A M A I C A
CENTURY ALUMINUM: Posts US$112.3MM Net Loss for 2007 Fourth Qtr.
M E X I C O
ALLIS-CHALMERS: Expects to Report Net Income of US$50.3 Million
AMERICAN AXLE: To Construct Manufacturing Facility in Rayong
ARROW ELECTRONICS: Signs Purchase Agreement With LOGIX
GRUPO MEXICO: Strikers Ask US Congress to Freeze US$1.4B Funding
KANSAS CITY: Earns US$55 Mil. in Fourth Quarter Ended Dec. 31
MOVIE GALLERY: Files Second Amended Plan of Reorganization
MOVIE GALLERY: Wants US$4.7MM Employee Incentive Plan Approved
N I C A R A G U A
SOLERA HOLDINGS: Improved Capital Cues S&P to Up Rating to BB-
P U E R T O R I C O
ADVANCED MEDICAL: To Reduce Workforce by 150 Positions
ANGIOTECH PHARMA: Posts US$21.2-Mln Net Loss in 2007 Fourth Qtr.
CELESTICA INC: To Hold Annual Shareholders' Meeting on April 24
SUNCOM WIRELESS: Gets Majority Consent From Senior Noteholders
T R I N I D A D & T O B A G O
HERCULES OFFSHORE: S&P Says Rating Unaffected by Jackup Rigs Buy
V E N E Z U E L A
CHRYSLER LLC: Court Denies Equipment Pull-Out From Plastech
CHRYSLER LLC: To Exceed Recovery Plan on All Key Metrics
PETROLEOS DE VENEZUELA: English Court Wants Freeze Compliance
PETROLEOS DE VENEZUELA: May Sell 50% Stake in Chalmette Plant
PETROLEOS DE VENEZUELA: Workers' Strike Halts Boscan Operations
- - - - -
=================
A R G E N T I N A
=================
AGRONOMIA SA: Proofs of Claim Verification Deadline Is March 10
---------------------------------------------------------------
Jorge Azar, Americo Pedro Despuy y Jose Luis Lavezzari, the
court-appointed trustee for Agronomia S.A.'s bankruptcy
proceeding, will be verifying creditors' proofs of claim until
March 10, 2008.
Jorge Azar will present the validated claims in court as
individual reports on April 25, 2008. The National Commercial
Court of First Instance in Junin, Buenos Aires, will determine
if the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Agronomia 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 Agronomia's
accounting and banking records will be submitted in court on
June 9, 2008.
Jorge Azar is also in charge of administering Katefa's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Agronomia S.A.
Avenida Elguea Roman y Larrea, Chacabuco
Buenos Aires, Argentina
The trustee can be reached at:
Jorge Azar, Americo Pedro Despuy y Jose Luis Lavezzari
R. Vazquez 55, Junin
Buenos Aires, Argentina
ALITALIA SPA: Air France to Invest EUR3 Billion in Six Years
------------------------------------------------------------
Air France-KLM S.A. will inject EUR3 billion into Alitalia
S.p.A. over six years should it acquire the Italian government's
49% stake in the carrier, Costas Paris writes for The Wall
Street Journal, citing the French carrier's vice-chairman, Leo
M. van Wijk.
Mr. van Wijk told WSJ that Alitalia "needs new capital and it
needs to be refleeted." The vice-chairman added that if a sale
agreement is reached, Air France will also commence a buyout
offer to acquire all shares at Alitalia and afterwards delist
the Italian carrier. Mr. Van Wijk noted that any deal struck
depends on the new Italian government and on whether it will
support Alitalia's plan to downsize operations at Milan's
Malpensa airport, Mr. Paris adds. "If the Malpensa hub is not
significantly downsized, we don't see a reason for a deal," Mr.
Van Wijk told WSJ.
As reported in the Troubled Company Reporter-Europe on Feb. 18,
2008, Air France-KLM will seek approval from the new Italian
government chosen following the April 13-14, 2008, snap
elections, for any agreement to acquire Italy's stake in
Alitalia.
"If the position of the next government is favorable for an
agreement with Air France-KLM we will go ahead," Mr. Gourgeon
was quoted by Radiocor as saying. "In the case it is not
favorable, we will stop there."
Air France Managing Director Pierre Henri Gourgeon said that the
exclusive talks may go beyond the April elections due to various
procedural steps, Radiocor relates.
The Forza Italia opposition party, headed by former Prime
Minister Silvio Berlusconi and seen to win the upcoming
election, said it will respect the possible sale of stake in
Alitalia to Air France if it emerges as the victor. Forza
Italia, however, said it would like the outgoing government,
headed by Prime Minister Romano Prodi, to avoid an agreement and
leave the decision to the next government.
Alitalia and Air France-KLM SA have until mid-March to complete
exclusive talks and present a final binding offer to the Italian
government, which thereafter will decide whether to sell its
stake to the French carrier. 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.
BANCO MACRO: Earns ARS168.7 Million in Quarter Ended December 31
----------------------------------------------------------------
Banco Macro S.A. released its results for the fourth quarter
period and for the year ended Dec. 31, 2007. All figures are in
Argentine pesos (ARS) and have been prepared in accordance with
Argentine GAAP.
Summary
-- The Bank's net income totalled ARS168.7 million. This
result was 92%, or ARS80.7 million, higher than in third
quarter 2007's ARS88 million. The annualized fourth
quarter 2007 ROAE and ROAA reached 26.2% and 3.5%,
respectively. The 2007 net income amounted to ARS495.2
million, or ARS71 million (17%), above 2006 net income of
ARS424.3 million.
-- Banco Macro's 2007 operating result of ARS545.4 million
climbed ARS138.1 million, or 34%, compared to 2006's
operating result of ARS407.3 million.
-- The Bank's net interest income was ARS358.7 million,
increasing 54% quarter on quarter on the back of higher
bonds' and loans' interest income.
-- Banco Macro's financing to the private sector also showed
an attractive growth of 8% quarter on quarter, or ARS742.7
million and 63% Year oVer Year, or ARS3.83 billion.
Personal loans, which represent a strategic product for
the bank, once again led private loan portfolio growth.
This product grew 16% quarter on quarter and 124% Year
over Year.
-- Total deposits picked up 1% quarter on quarter, or
ARS118.6 million, totalling ARS13.6 billion and
represented 80% of the Bank's liabilities. The highest
growth in private sector funding was in sight deposits
(current accounts, 10%, and saving accounts, 7%).
-- Banco Macro continued showing a strong solvency ratio,
with an excess capital of ARS1.81 billion (26.8%
capitalization ratio). In addition, the bank's liquid
assets remained at a high level, reaching 55.1% of total
deposits.
-- In fourth quarter of 2007, Banco Macro's PDLs to total
loans ratio was 1.53% and the coverage ratio reached
164.3%.
Headquartered in Buenos Aires, Argentina, Banco Macro (NYSE:
BMA; Buenos Aires: BMA) -- http://www.macro.com.ar/-- had
consolidated assets of ARS11.6 billion (US$3.7 billion) and
consolidated deposits of ARS6 billion (US$2 million) as of
June 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 26, 2007, Fitch Ratings affirmed Banco Macro's Foreign and
local currency long-term Issuer Default Ratings at 'B+', Foreign
and local currency short-term IDRs at 'B', and Individual at
'D'. Fitch's rating outlook is stable.
BUENOS AIRES BUREAU: Files for Reorganization in Court
------------------------------------------------------
Buenos Aires Bureau Relevamientos S.A. has requested for
reorganization approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Buenos Aires Bureau to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Buenos Aires Bureau Relevamientos S.A.
Blanco Encalada 5533
Buenos Aires, Argentina
COLETUR TRANSPORTE: Claims Verification Is Until March 27
---------------------------------------------------------
Beatriz Dominguez, the court-appointed trustee for Coletur
Transporte S.R.L.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until March 27, 2008.
Ms. Dominguez will present the validated claims in court as
individual reports on May 8, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Coletur Transporte 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 Coletur Transporte's
accounting and banking records will be submitted in court on
June 19, 2008.
Ms. Dominguez is also in charge of administering Coletur
Transporte's assets under court supervision and will take part
in their disposal to the extent established by law.
The trustee can be reached at:
Beatriz Dominguez
Avenida Rivadavia 2151
Buenos Aires, Argentina
DELTA AIR: Reports Traffic Results for January 2008
---------------------------------------------------
Delta Air Lines reported record load factors for January. Load
factors for international (76.3 percent), Latin (82.3 percent),
domestic (74.9 percent) and system (75.4 percent) were higher
than any previous January on record for Delta.
System traffic increased 2.5 percent from January 2007 on flat
capacity. International traffic increased 11.1 percent year
over year on an 8.7 percent increase in capacity. Domestic
traffic in January 2008 decreased 1.4 percent year over year on
a capacity decrease of 3.6 percent.
In addition, Delta's continued international expansion coupled
with strong demand for Delta's international product resulted in
a record number of passengers flying internationally on Delta
during the month of January. The number of Pacific, Latin
(regional affiliates), Atlantic and international passengers
increased 38.4 percent, 31.8 percent, 11.7 percent and 5.5
percent, respectively, versus the same period last year.
"In January, consolidated unit revenues increased significantly
compared to the prior year period," said Glen Hauenstein,
Delta's executive vice president for Network Planning and
Revenue Management. "International unit revenues continued to
show strong gains, particularly in the Atlantic and Latin
regions, driven by increased yield and traffic. In addition,
capacity reductions implemented in the domestic system resulted
in the anticipated effect of increased yields, driving solid
improvement in year-over-year domestic unit revenues."
During January 2008, Delta operated its schedule at a 97.2
percent completion rate compared to 98.6 percent in January
2007. Delta boarded 8,100,000 passengers during the month of
January 2008, down 0.5 points year over year.
About Delta Air
Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners. Delta flies to
Argentina, Australia and the United Kingdom, among others.
The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007. On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement. In April 25, 2007, the Court confirmed
the Debtors' plan. That plan became effective on
April 30, 2007. The Court entered a final decree closing 17
cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News,
Issue No. 89; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
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.
* * *
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.
DISTRISER SRL: Court Concludes Reorganization
---------------------------------------------
Distriser S.R.L. concluded its reorganization process, according
to data released by Infobae on its Web site. The closure came
after the National Commercial Court of First Instance in Buenos
Aires homologated the debt plan signed between the company and
its creditors.
IDS SA: Files for Reorganization in Court
-----------------------------------------
IDS S.A. has requested for reorganization approval after failing
to pay its liabilities.
The reorganization petition, once approved by the court, will
allow IDS to negotiate a settlement with its creditors in order
to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
IDS S.A.
Florida 930
Buenos Aires, Argentina
MALFATTI CONSTRUCCIONES: Claims Verification Is Until April 23
--------------------------------------------------------------
Francisco Jose Matias Costa, the court-appointed trustee for
Malfatti Construcciones S.R.L.'s bankruptcy proceeding, will be
verifying creditors' proofs of claim until April 23, 2008.
Mr. Costa will present the validated claims in court as
individual reports on June 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
be raised by Malfatti Construcciones 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 Malfatti
Construcciones' accounting and banking records will be submitted
in court on July 21, 2008.
Mr. Costa is also in charge of administering Malfatti
Construcciones' assets under court supervision and will take
part in their disposal to the extent established by law.
The trustee can be reached at:
Francisco Jose Matias Costa
Sarmiento 1562
Buenos Aires, Argentina
MANNY S MUSICAL: Files for Reorganization in Court
--------------------------------------------------
Manny s Musical S.A. has requested for reorganization approval
after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Manny s Musical to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
MASILY SA: Court Concludes Reorganization
-----------------------------------------
Masily S.A. concluded its reorganization process, according to
data released by Infobae on its Web site. The closure came
after the National Commercial Court of First Instance in Buenos
Aires homologated the debt plan signed between the company and
its creditors.
MIE FRANCISCO: Trustee to File Individual Reports on April 2
------------------------------------------------------------
Wilfredo Borsani, the court-appointed trustee for
Mie Francisco Gerardo's bankruptcy proceeding,
will present the validated claims as individual
reports before the National Commercial Court of
First Instance in Rosario, Santa Fe, on April 2, 2008.
Mr. Borsani verified the creditors' proofs of
claim until Feb. 19, 2008. He will file in court
a general report containing an audit of Mie
Francisco's accounting and banking records on May 15, 2008.
Mr. Borsani is also in charge of administering
Mie Francisco's assets under court supervision
and will take part in their disposal to the extent established
by law.
The debtor can be reached at:
Mie Francisco Gerardo
Chiclana 661, Rosario
Santa Fe, Argentina
MIE GERARDO: Trustee to File Individual Reports on April 2
----------------------------------------------------------
Wilfredo Borsani, the court-appointed trustee for Mie Gerardo's
bankruptcy proceeding, will present the validated claims as
individual reports before the National Commercial Court of First
Instance in Rosario, Santa Fe, on April 2, 2008.
Mr. Borsani verified creditors' proofs of claim until
Feb. 19, 2008. He will file in court a general report
containing an audit of Mie Gerardo's accounting and banking
records on May 15, 2008.
Mr. Borsani is also in charge of administering Mie Gerardo's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Mie Gerardo
Agrelo 1189, Rosario
Santa Fe, Argentina
NORVEGA SA: Court Concludes Reorganization
------------------------------------------
Norvega S.A. concluded its reorganization process, according to
data released by Infobae on its Web site. The closure came
after the National Commercial Court of First Instance in Buenos
Aires homologated the debt plan signed between the company and
its creditors.
PELPASA SA: Proofs of Claim Verification Is Until April 30
----------------------------------------------------------
Susana Ruth Zapata, the court-appointed trustee for Pelpasa
S.A.'s bankruptcy proceeding, will be verifying creditors'
proofs of claim until April 30, 2008.
Ms. Zapata will present the validated claims in court as
individual reports on June 12, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Pelpasa 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 Pelpasa's accounting
and banking records will be submitted in court on Aug. 11, 2008.
Ms. Zapata is also in charge of administering Pelpasa's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Susana Ruth Zapata
Tucuman 1567
Buenos Aires, Argentina
QUEBECOR MEDIA: Buys 5,396,221 More Nurun Common Shares
-------------------------------------------------------
Quebecor Media Inc., through its wholly owned subsidiary,
4434943 Canada Inc., has taken up and acquired an additional
5,396,221 common shares of Nurun Inc., including shares
deposited by guaranteed delivery.
Together with the Nurun common shares taken up and acquired by
Quebecor Media on Feb. 15, 2008, and with the terms and
conditions of the bid having been complied with, an aggregate of
14,640,550 Nurun common shares, representing 91.54% of all
shares not previously held by Quebecor Media and its affiliates,
have now been taken up and acquired by Quebecor Media pursuant
to its offer to purchase for cash all of the issued and
outstanding common shares of Nurun not previously held by it and
its affiliates for a price of CDN$4.75 per Nurun common share.
Quebecor Media now owns, directly and indirectly, 96.20% of all
currently issued and outstanding Nurun common shares.
Payment for the Nurun common shares taken up and acquired by
Quebecor Media on Feb. 19, 2008, is expected to be made on or
prior to Feb. 22, 2008.
Quebecor Media intends, as soon as practicable, to acquire the
remaining Nurun common shares by means of a statutory compulsory
acquisition procedure under the applicable provisions of the
Canada Business Corporations Act at the same price as the offer
price. Quebecor Media also intends, upon acquiring a sufficient
number of Nurun common shares, to de-list the common shares from
the Toronto Stock Exchange and to apply to the applicable
Canadian securities regulatory authorities for an order deeming
Nurun to no longer be a reporting issuer.
About Quebecor Media
Quebecor Media Inc., a subsidiary of Mortsel, Belgium-based,
Quebecor Inc. -- http://www.quebecor.com/-- owns operating
companies in numerous media-related businesses: Videotron Ltd.,
a cable operator in Quebec and a major Internet Service Provider
and provider of telephone and business telecommunications
services; Sun Media Corporation, Canada's chain of tabloids and
community newspapers; TVA Group Inc., operator of French-
language general-interest television network in Quebec, a number
of specialty channels, and the English-language general-interest
station Sun TV; Canoe Inc., operator of a network of English-
and French-language Internet properties in Canada; Nurun Inc., a
major interactive technologies and communications agency with
offices in Canada, the United States, Europe and Asia; companies
engaged in book publishing and magazine publishing; and
companies engaged in the production, distribution and retailing
of cultural products, namely Archambault Group Inc., chain of
music stores in eastern Canada, TVA Films, and Le SuperClub
Videotron ltee, a chain of video and video game rental and
retail stores.
Headquartered in Montreal, Canada, the company has global
facilities in India, France and Argentina.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 1, 2007, Moody's Investors Service rated Quebecor Media
Inc.'s US$700 million add-on senior unsecured note issue B2.
Ratings on the underlying 7.75% senior unsecured notes due in
March of 2016 were affirmed at the same B2 level. At the same
time, QMI's Ba3 corporate family rating and stable ratings
outlook were affirmed.
REGIE ROYALE: Proofs of Claim Verification Deadline Is May 12
-------------------------------------------------------------
Pablo Javier Kainsky, the court-appointed trustee for Regie
Royale S.A.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until May 12, 2008.
Mr. Kainsky will present the validated claims in court as
individual reports on June 24, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Regie Royale 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 Regie Royale's
accounting and banking records will be submitted in court on
Aug. 29, 2008.
Mr. Kainsky is also in charge of administering Regie Royale'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 Javier Kainsky
Reconquista 715
Buenos Aires, Argentina
SERVI TRA: Court Concludes Reorganization
-----------------------------------------
Servi Tra S.A. concluded its reorganization process, according
to data released by Infobae on its Web site. The closure came
after the National Commercial Court of First Instance in Buenos
Aires homologated the debt plan signed between the company and
its creditors.
TELECOM ARGENTINA: Fitch Ups Foreign Issuer Default Rating to B+
----------------------------------------------------------------
Fitch Ratings has taken these rating actions for Telecom
Argentina S.A. and Telecom Personal S.A.:
Telecom Argentina SA:
-- Foreign currency Issuer Default Rating upgraded to 'B+'
from 'B';
-- Local currency IDR upgraded to 'B+' from 'B';
-- Senior unsecured notes upgraded to 'B+/RR4' from 'B'/RR4;
-- National scale ratings to upgraded 'AA-(arg)' from
'A(arg)'.
Telecom Personal SA:
-- Foreign currency IDR upgraded to 'B+' from 'B';
-- Local currency IDR upgraded to 'B+' from 'B';
-- Senior unsecured notes upgraded to 'B+/RR4' from 'B'/RR4;
-- National scale ratings upgraded to 'AA-(arg)' from
'A(arg)'.
The Rating Outlook for the local currency IDR and national scale
rating of Telecom Argentina and Telecom Personal remains
Positive. The Rating Outlook for the foreign currency IDR of
both companies is revised to Stable from Positive.
Telecom Argentina and Telecom Personal's rating upgrades and the
Positive Outlook on the local currency IDR and national scale
ratings reflect improved operating performance, stronger credit
protection measures and manageable debt maturity profile over
the medium term. The ratings are tempered by increased
competition, regulatory risk in the fixed-line business and
currency mismatch between its dollar denominated debt and its
peso denominated cash flow. The foreign currency IDR of both
companies, and therefore its Rating Outlook, is constrained by
the country ceiling of Argentina at 'B+'. The Positive Outlook
could result in an upgrade if the company is able to maintain
sound interest coverage levels, strengthens and sustain the
consolidated total debt to EBITDA towards one time and keeps
adequate liquidity.
Telecom Argentina benefits from a diversified business mix, with
a growing share of the mobile business unit over total revenues
and EBITDA (approximately 60%). The company's incumbent
position in northern Argentina in fixed-line services and mobile
services gives it a competitive advantage as a fully integrated
operator, as fixed-mobile convergence gains acceptance. Fitch
believes fixed-mobile convergence can help integrated operators,
such as Telecom Argentina, to improve customer loyalty, reduce
operating costs and avoid cannibalization between business
segments.
Despite facing some increases in operating costs as fixed line
rates remain frozen in the fixed-line business, Telecom
Argentina's EBITDA and cash flow has significantly improved
since 2006, driven primarily by its mobile business. In
addition, operating improvement has been helped by a good
economic environment, increased penetration in wireless services
and broadband connections as subscriber acquisition costs has
stabilized. With estimated consolidated EBITDA of approximately
US$950 million for 2007, capital expenditures of approximately
US$400 million, interest expense of US$120 million, Fitch
expects free cash flow should be in the range of US$350 million-
US$380 million for 2007.
Telecom Argentina continues to implement an important
transformation of its networks by migrating to a next generation
network that will allow it to have operating efficiencies and to
offer a new array of services to its fixed and mobile customers.
The company is focusing its efforts in improving synergies in
the offering of a full range of integrated fixed and wireless
services. The investment plan for the Voice, Data and Internet
businesses (around of 50% of the total capex) is related to the
expansion of ADSL services and the upgrade of the network in
order to increase its customer base and assure a higher
bandwidth. In the wireless business the most significant
capital expenditures are related to the development of the
network in the southern region and the extension of capacity in
AMBA and northern region. In addition, the group will focus in
the introduction of new value added services such as 3G
services, and the final stages of the migration of its TDMA
subscribers to GSM technology (96%).
Telecom Argentina has improved its financial profile and credit
protection measures after significant debt repayments during
last years. As of October 2007, the company has made mandatory
and optional principal amortization which originally scheduled
up to 2010, resulting in strong financial flexibility over the
near term. For the 12 months ended Sept. 30, 2007, the company
had a total debt-to-EBITDA ratio of 1.3 and EBITDA-to-interest
expense of 7.5, which are strong for the rating category.
Liquidity risk for Telecom Argentina seems manageable over the
near term, with a level of cash of US$384 million as of
Sept. 30, 2007, and latest 12 months free cash flow for US$375
million. Fitch expects credit-protection measures should
continue to improve, driven by a better operational performance
and the excess cash flow that should be used to reduce debt.
Fitch expects that as the mobile business reaches maturity,
should result in lower capital expenditures for this segment and
should boost consolidated free cash flow for the company.
Telecom Personal's ratings reflect the strong progress in
operating performance and credit protection measures, solid
brand recognition and market position, improved customer mix and
implicit support from parent company Telecom Argentina S.A. The
Positive Outlook evidences the expected overall improvement in
the company's credit profile. Telecom Personal's free cash flow
should benefit from mobile penetration levels reaching a mature
stage. Despite the fact that Telecom Personal operates in a
highly competitive environment, the company's strong brand
recognition and incumbent position result in strong market share
in the northern part of Argentina of approximately 40%.
Telecom Personal is Telecom Argentina's most important business
unit in terms of consolidated revenues and EBITDA, as the mobile
business gains scale and matures, should contribute more to
group's free cash flow generation. The strong relationship of
Telecom Argentina with Telecom Personal is reflected also by
cross-default covenants and US$150 million in back-up funding
provided to Telecom Personal by Telecom Argentina in case of
financial needs
Telecom Personal SA is the wireless provider of incumbent
operator Telecom Argentina, providing services in Argentina and
Paraguay over a GSM network. The company has 11.7 million
users, 10.2 million in Argentina, representing an estimated 30%
market share, as of Sept. 30, 2007. For the LTM ended
Sept. 30, 2007, revenues and EBITDA accounted for ARS5.4 billion
and ARS1.2 billon, respectively.
Headquartered in Buenos Aires, Telecom Argentina SA --
http://www.telecom.com.ar/-- is the incumbent
telecommunications provider in northern Argentina, with an
integrated service offering consisting, as of Sept. 30, 2007, of
4.1 million fixed lines, 11.7 million mobile users and 677,000
ADSL Internet users. The company had consolidated revenues and
EBITDA during LTM Sept. 30, 2007, of ARS8.7 billion and ARS2.8
billion, respectively. Telecom Argentina is 54.74% owned by
Nortel Inversora, which, in turn, is jointly controlled by
Telecom Italia (rated 'BBB+' by Fitch) and the Werthein Group.
TELECOM PERSONAL: Fitch Ups Foreign Issuer Default Rating to B+
---------------------------------------------------------------
Fitch Ratings has taken these rating actions for Telecom
Argentina S.A. and Telecom Personal S.A.:
Telecom Argentina SA:
-- Foreign currency Issuer Default Rating upgraded to 'B+'
from 'B';
-- Local currency IDR upgraded to 'B+' from 'B';
-- Senior unsecured notes upgraded to 'B+/RR4' from 'B'/RR4;
-- National scale ratings to upgraded 'AA-(arg)' from
'A(arg)'.
Telecom Personal SA:
-- Foreign currency IDR upgraded to 'B+' from 'B';
-- Local currency IDR upgraded to 'B+' from 'B';
-- Senior unsecured notes upgraded to 'B+/RR4' from 'B'/RR4;
-- National scale ratings upgraded to 'AA-(arg)' from
'A(arg)'.
The Rating Outlook for the local currency IDR and national scale
rating of Telecom Argentina and Telecom Personal remains
Positive. The Rating Outlook for the foreign currency IDR of
both companies is revised to Stable from Positive.
Telecom Argentina and Telecom Personal's rating upgrades and the
Positive Outlook on the local currency IDR and national scale
ratings reflect improved operating performance, stronger credit
protection measures and manageable debt maturity profile over
the medium term. The ratings are tempered by increased
competition, regulatory risk in the fixed-line business and
currency mismatch between its dollar denominated debt and its
peso denominated cash flow. The foreign currency IDR of both
companies, and therefore its Rating Outlook, is constrained by
the country ceiling of Argentina at 'B+'. The Positive Outlook
could result in an upgrade if the company is able to maintain
sound interest coverage levels, strengthens and sustain the
consolidated total debt to EBITDA towards one time and keeps
adequate liquidity.
Telecom Argentina benefits from a diversified business mix, with
a growing share of the mobile business unit over total revenues
and EBITDA (approximately 60%). The company's incumbent
position in northern Argentina in fixed-line services and mobile
services gives it a competitive advantage as a fully integrated
operator, as fixed-mobile convergence gains acceptance. Fitch
believes fixed-mobile convergence can help integrated operators,
such as Telecom Argentina, to improve customer loyalty, reduce
operating costs and avoid cannibalization between business
segments.
Despite facing some increases in operating costs as fixed line
rates remain frozen in the fixed-line business, Telecom
Argentina's EBITDA and cash flow has significantly improved
since 2006, driven primarily by its mobile business. In
addition, operating improvement has been helped by a good
economic environment, increased penetration in wireless services
and broadband connections as subscriber acquisition costs has
stabilized. With estimated consolidated EBITDA of approximately
US$950 million for 2007, capital expenditures of approximately
US$400 million, interest expense of US$120 million, Fitch
expects free cash flow should be in the range of US$350 million-
US$380 million for 2007.
Telecom Argentina continues to implement an important
transformation of its networks by migrating to a next generation
network that will allow it to have operating efficiencies and to
offer a new array of services to its fixed and mobile customers.
The company is focusing its efforts in improving synergies in
the offering of a full range of integrated fixed and wireless
services. The investment plan for the Voice, Data and Internet
businesses (around of 50% of the total capex) is related to the
expansion of ADSL services and the upgrade of the network in
order to increase its customer base and assure a higher
bandwidth. In the wireless business the most significant
capital expenditures are related to the development of the
network in the southern region and the extension of capacity in
AMBA and northern region. In addition, the group will focus in
the introduction of new value added services such as 3G
services, and the final stages of the migration of its TDMA
subscribers to GSM technology (96%).
Telecom Argentina has improved its financial profile and credit
protection measures after significant debt repayments during
last years. As of October 2007, the company has made mandatory
and optional principal amortization which originally scheduled
up to 2010, resulting in strong financial flexibility over the
near term. For the 12 months ended Sept. 30, 2007, the company
had a total debt-to-EBITDA ratio of 1.3 and EBITDA-to-interest
expense of 7.5, which are strong for the rating category.
Liquidity risk for Telecom Argentina seems manageable over the
near term, with a level of cash of US$384 million as of
Sept. 30, 2007, and latest 12 months free cash flow for US$375
million. Fitch expects credit-protection measures should
continue to improve, driven by a better operational performance
and the excess cash flow that should be used to reduce debt.
Fitch expects that as the mobile business reaches maturity,
should result in lower capital expenditures for this segment and
should boost consolidated free cash flow for the company.
Telecom Personal's ratings reflect the strong progress in
operating performance and credit protection measures, solid
brand recognition and market position, improved customer mix and
implicit support from parent company Telecom Argentina S.A. The
Positive Outlook evidences the expected overall improvement in
the company's credit profile. Telecom Personal's free cash flow
should benefit from mobile penetration levels reaching a mature
stage. Despite the fact that Telecom Personal operates in a
highly competitive environment, the company's strong brand
recognition and incumbent position result in strong market share
in the northern part of Argentina of approximately 40%.
Telecom Personal is Telecom Argentina's most important business
unit in terms of consolidated revenues and EBITDA, as the mobile
business gains scale and matures, should contribute more to
group's free cash flow generation. The strong relationship of
Telecom Argentina with Telecom Personal is reflected also by
cross-default covenants and US$150 million in back-up funding
provided to Telecom Personal by Telecom Argentina in case of
financial needs
Headquartered in Buenos Aires, Telecom Personal SA --
http://www.personal.com.ar/-- is the wireless provider of
incumbent operator Telecom Argentina, providing services in
Argentina and Paraguay over a GSM network. The company has 11.7
million users, 10.2 million in Argentina, representing an
estimated 30% market share, as of Sept. 30, 2007. For the LTM
ended Sept. 30, 2007, revenues and EBITDA accounted for ARS5.4
billion and ARS1.2 billon, respectively.
TELEFONICA DE ARGENTINA: Fitch Lifts Local Currency IDR to BB
-------------------------------------------------------------
Fitch Ratings has taken these rating actions for Telefonica de
Argentina S.A.:
-- Local currency issuer default rating upgraded to 'BB' from
'BB-';
-- Foreign currency IDR affirmed at 'B+';
-- National scale rating upgraded to 'AA+(arg)' from 'AA-
(arg)';
-- Approximately US$474 million of Obligaciones Negociables
upgraded to 'BB-/RR3' from 'B+/RR3';
The Rating Outlook is Stable.
Telefonica de Argentina's S.A. rating actions reflect stronger
financial profile, solid business position in the Argentine
telecom sector, healthy cash flow generation and a manageable
debt maturity profile. The ratings incorporate a level of
implicit support from controlling shareholder Spain's Telefonica
S.A., which has provided flexibility in the form of intercompany
loans in previous years. Telefonica de Argentina's ratings are
tempered by currency mismatch between revenues and indebtedness,
regulatory risk and increased competition from wireless
services. The company's Foreign Currency IDR is constrained by
the country ceiling of Argentina at 'B+'.
The company's solid business position results in strong cash
flow generation. Telefonica de Argentina's incumbent position
in southern Argentina and nationwide estimated market share of
53%, gives the company enough flexibility to build cash balances
after capital expenditures. Frozen rates and cost pressures
have resulted in margin reduction over 2007, which has been
compensated by increased broadband revenues resulting in stable
EBITDA levels of approximately ARS1.8 billion over the 12 months
ended Sept. 30, 2007. In Fitch opinion, broadband services
still offer good growth opportunities in Argentina as
penetration is still low.
Fitch believes that once allowed, Telefonica de Argentina will
offer pay television services to enhance its service offering
following the strategy of other Telefonica companies in the
region. While still remains unclear how video will be
distributed, either IPTV or DTH, it should result in greater
revenues for the company and slight pressure in operating
margins as video is launched. Adding video to its bundle
offering of voice and broadband should strengthen the company's
competitive position in the residential market.
Fitch expects frozen rates regime to remain over the medium term
as it does not expect a change in the Telecommunications law in
the near term given the government priorities, as other activity
sectors are of more concern to the government than the Telecom
sector. Regulatory risk has resulted in pressure to
profitability as fixed line operators have increased costs,
mostly associated with personnel salaries and wages, but are not
allowed to increase local service tariffs to compensate for cost
increases. Notwithstanding these pressures, Telefonica de
Argentina is expected to have enough resources to meet its debt
obligations and capital expenditures due to its solid cash flow
generation, moderate capital expenditures and convenient debt
profile.
Telefonica de Argentina has a manageable maturity profile and
total debt consists primarily of US dollar denominated market
debt. The company is expected to pay short term maturities with
cash and will not face a significant maturity until 2010, when
approximately ARS670 million of debt matures. With expected
positive EBITDA growth for the next few years despite slight
EBITDA margin reductions, FFO should be above ARS1,500 million
and with annual capital expenditures of approximately ARS550
million-ARS600 million, Fitch expects free cash flow to be close
to ARS1 billion over the next few years. Total debt to EBITDA
should be close to one time for year-end 2007, as the company
paid an US$189 bond million that was due in November 2007, and
should finish 2008 with a total debt to EBITDA ratio below 1.0
as it continues to pay debt maturities with cash flow.
Telefonica de Argentina's financial profile should continue to
improve over the medium term as the company continues to use
free cash flow to pay debt, absent of cash distributions to
shareholders. The company is not expected to be able pay
dividends at least until 2009. The company has reduced its debt
levels over the past few years, mainly with internally generated
cash flow, to ARS2.4 billion as of Sept 30, 2007, from a peak of
more than ARS6 billion in 2002. Credit protection measures are
strong for the rating category. For the 12 months ended
Sept. 30, 2007, total debt to EBITDA and FFO adjusted leverage
were 1.3 and 1.2, respectively. Interest coverage ratios of
EBITDA to interest expense and FFO interest coverage were 4.6
and 5.3, respectively.
Telefonica de Argentina is the incumbent local-exchange carrier
in the southern region of Argentina providing local service,
long distance, broadband services and dial-up Internet access.
The company had revenues and EBITDA during 2006 of approximately
US$1,295 million and US$600 million, respectively. Telefonica
S.A. of Spain controls, either directly or indirectly, 98% of
Telefonica de Argentina.
TRANSPORTES E INVERSIONES: Claims Verification Ends on April 29
---------------------------------------------------------------
Alberto Jose Buceta, the court-appointed trustee for Transportes
e Inversiones S.A.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until April 29, 2008.
Mr. Buceta will present the validated claims in court as
individual reports on June 11, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Transportes e Inversiones 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 Transportes e
Inversiones' accounting and banking records will be submitted in
court on Aug. 8, 2008.
Mr. Buceta is also in charge of administering Transportes e
Inversiones' assets under court supervision and will take part
in their disposal to the extent established by law.
The trustee can be reached at:
Alberto Jose Buceta
Avenida Rivadavia 1342
Buenos Aires, Argentina
TYSON FOODS: Working to Overcome Effects of Higher Grain Prices
---------------------------------------------------------------
Despite the impact of escalating grain prices and other market-
related challenges, Tyson Foods Inc. is strategically positioned
for future success, Richard L. Bond, the company's president and
chief executive officer, disclosed during the annual Consumer
Analyst Group of New York (CAGNY) Conference.
"We've accomplished a great deal in our efforts to make Tyson a
stronger, more agile company and believe we have the right
strategies in place to win," said Mr. Bond. "We're confident
about our future because of our efforts to optimize our
commodity businesses, create new products, expand our
international presence and increase the value of our by-
products."
Tyson experienced increased sales of US$1.5 billion in fiscal
2007 and generated operating income of US$700 million while
incurring US$300 million in additional grain costs. The company
also reduced debt by US$1.2 billion.
Corn-based ethanol is putting pressure on input costs for the
food industry and companies like Tyson. Approximately 25% of
the U.S. corn crop is expected to be used in 2008 to produce
ethanol, compared to only 8% in 2002.
"We currently believe we'll experience almost $800 million in
increased grain and related input costs in fiscal 2008," said
Mr. Bond. Grain is a major expense in chicken production,
representing almost half the cost of raising a live chicken.
Higher grain prices also affect the cost of cooking oil, flour
and other ingredients used to produce further processed and pre-
cooked chicken products.
Tyson is working to offset the higher costs through its risk
management activities and by increasing finished product prices.
The company also continues to push for changes in the government
mandate on corn-based ethanol and the removal of tariffs on
sugar-based ethanol imports.
He added, "According to a recent report, even if the entire U.S.
corn crop were turned into ethanol, it would displace only 3.5%
of gasoline use."
Mr. Bond went on to describe Tyson's efforts to collaborate with
retail and foodservice customers to meet consumer needs with
innovative food solutions. He noted the success of the Tyson
Discovery Center, the company's new food research and
development facility, which includes an R&D team of 120
professionals, 19 research kitchens and a USDA-inspected pilot
plant.
"Even with our long-standing customers, we've been able to
increase the number of projects in the pipeline and speed up
product launches," he said. Customers representing about half
of the company's sales revenue have already been to the
Discovery Center, which opened a year ago.
As part of the company's efforts to capitalize on consumer
insights, Tyson has identified three consumer need states for
meal preparation. They include:
* Homemade with Help(tm)- Tyson is addressing consumer desires
to serve their families home-cooked food by providing a few
short-cuts. An example is Tyson's "Trimmed and Ready" fresh
chicken, which has already been hand-trimmed for the
consumer and is ready to cook.
* Fast & Flexible(tm)- Because of the fast-paced lifestyle of
many consumers, Tyson has developed products such as pre-
cooked dinner meats and restaurant-style frozen snacks
called Tyson(r) Any'tizers(tm). These products can be
heated and served in a matter of minutes.
* Ready Now(tm)- 83% of consumers' main meals include ready-
to-eat foods. Tyson is helping expand the retail grocery
deli business with such products as prepared appetizers and
gourmet sandwich wraps.
Mr. Bond reported Tyson is expanding the success of its "Thank
You Mom" advertising and promotion plan by tying it into the
company's sponsorship of the 2008 and 2010 U.S. Olympic teams.
The company also has successfully promoted Tyson consumer
products through food donations made to families on the
ABC-TV show "Extreme Makeover: Home Edition."
Product development and innovation also have been key to the
success of Tyson Food Service. Examples include the 2007
reformulation of breaded products to zero grams of trans fat and
the conversion of ready-to-cook chicken to "All Natural" with a
50% reduction in salt. The company used its Kid Tested, Kid
Approved(tm) development process in the introduction of new
products for school cafeterias.
Tyson continues efforts to maximize margins in its commodity
businesses, according to Bond, by reducing non-value added
costs, improving yields and pricing and optimizing product mix
and services. This has included such measures as consolidating
some of the company's beef operations, changes in bird weight
and optimizing the number of value-added breast portions from
each chicken.
Mr. Bond projects Tyson's international business will grow from
US$3 billion in annual sales to at least US$5 billion by 2010.
Driving this increase will be the expansion of the Tyson
operations in other countries. Tyson has completed joint
ventures in Argentina and China, hopes to expand operations in
Mexico and is working on a potential acquisition in Brazil.
Tyson continues exploring ways to increase the value of its by-
products, including the conversion of fat into fuel. In
December 2007, Tyson and ConocoPhillips started turning beef
tallow into renewable diesel fuel. Production started at 100
barrels a day and is now operating at 300 to 500 barrels a day.
Tyson's alternative fuel joint venture, Dynamic Fuels, will
convert low cost fat, grease and other feedstock into renewable
synthetic jet fuel. A production facility is being constructed
in Louisiana and is expected to begin production in 2010.
About Tyson Foods Inc.
Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) --
http://www.tysonfoods.com/-- is a processor and marketer of
chicken, beef, and pork.
The company makes a wide variety of protein-based and prepared
food products at its 123 processing plants. Tyson has
approximately 114,000 Team Members employed at more than 300
facilities and offices in 26 states and 80 countries.
Tyson's U.S. beef plants are located in Amarillo, Texas; Dakota
City, Nebraska; Denison, Iowa; Finney County, Kansas; Joslin,
Illinois, Lexington, Nebraska and Pasco, Washington. The
company also has a beef complex in Canada, and is involved in a
vertically integrated beef operation in Argentina.
* * *
Tyson Foods Inc. continues to carry Moody's Ba1 corporate family
rating and Ba2 probability of default rating. The outlook is
negative.
=============
B E R M U D A
=============
MONTPELIER RE: Earns US$315.8 Million in Year Ended Dec. 31
-----------------------------------------------------------
Montpelier Re Holdings Ltd. reported US$315.8 million of net
income for the fiscal year 2007, compared to US$302.9 million of
net income in 2006. For the three months ended Dec. 31, 2007,
the company earned US$90.5 million compared to net earnings of
US$122.1 million for the same period in 2006.
The company recorded a fully converted book value per share of
US$17.88 as at Dec. 31, 2007, an increase of 5.4% and 17.6% for
the quarter and year inclusive of dividends.
Comprehensive income for the quarter ended Dec. 31, 2007, was
US$88.0 million and for the year was US$314 million. Operating
income, which excludes foreign exchange, investment gains and
losses and income tax, was US$88 million for the quarter.
Operating income for the full year was US$280 million. The
comprehensive return on average shareholders’ equity for the
quarter and year were 5.4% and 19.9%, respectively.
The loss ratio for the quarter was 20.8 percent, which includes
US$10.0 million, or 6.8 points, of losses incurred as a result
of the California wildfires in October. This was offset in part
by net favorable prior year reserve development of US$4.1
million, or 2.8 points. The combined ratio for the quarter was
52.9% and for the year was 61.3% compared to 60.3% in 2006.
The total return on the consolidated investment portfolio was
1.2% for the fourth quarter and 5.7% for the full year. The
company has minimal subprime exposure. Additional disclosure on
the company's mortgage-backed and asset-backed security holdings
are provided in its fourth quarter financial supplement.
Anthony Taylor, Chairman and Chief Executive Officer, commented:
"This was a robust finish to another strong year resulting in a
5.4% increase in book value per share for the quarter and 17.6%
for the year. Since the beginning of 2006, we have grown book
value per share by over 55%, inclusive of dividends."
"Notwithstanding the US$12 million of expenses related to the
roll-out of our new Lloyd’s, European and US platforms, the
combined ratio for the year was a very strong 61.3%, reflecting
what turned out to be a relatively light catastrophe year. From
a strategic perspective, we have successfully established our
expanded operating platforms, which will make their initial
contribution to the top line in 2008, although it will take a
little longer before they contribute positively to earnings. We
are already starting to reap the benefits of the flexibility
afforded to our operations from having multiple licenses and
locations and expect to leverage that increased flexibility
further in the upcoming quarters."
"On another note, several large individual risk losses have
occurred within the first 50 days of 2008 which in the aggregate
will produce a sizeable industry loss to the commercial property
insurance market. Based on current information, we expect to
incur total net losses of US$30-US$40 million from some of these
events."
Kernan Oberting, Chief Financial Officer, said: "We continue to
actively manage capital, repurchasing 3,327,628 common shares
during the fourth quarter at an average price of US$16.98.
During 2007, we publicly repurchased 3,776,989 common shares for
US$63.7 million and privately repurchased 939,039 common shares
and 7,172,375 warrants from White Mountains Insurance Group,
Ltd. for US$65 million. Through these transactions, we retired
approximately 11% of our fully converted common shares. Year-
to-date 2008, we have repurchased an additional 2,067,011 common
shares at an average price of US$16.93 per share in the open
market."
Headquartered in Bermuda, Montpelier Re Holdings Ltd., through
its operating subsidiary Montpelier Reinsurance Ltd., is a
premier provider of global property and casualty reinsurance and
insurance products. During the year ended Dec. 31, 2005,
Montpelier underwrote US$978.7 million in gross premiums
written. Shareholders' equity at Dec. 31, 2005, was US$1.1
billion.
* * *
To date, Montpelier Re Holdings holds A.M. Best's "bb+"
subordinated debt rating and "bb" preferred stock rating.
SEA CONTAINERS: Formally Seeks Court Approval of Pension Pact
-------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to approve the
pension scheme agreement between them and the trustees of the
two main Sea Containers Pension Schemes, relating to the amount
of the trustees' claims against Sea Containers' estate.
As reported in the Troubled Company Reporter on Feb. 8, 2008,
the Debtors emphasized that the agreement is a critical and
positive milestone in its efforts to emerge from Chapter 11.
Since the Chapter 11 negotiations first began in October 2006,
the board of directors and the officers of Sea Containers have
been focused on achieving a plan of reorganization that provides
full and fair settlement for all creditors. The major creditors
involved are the 1983 and the 1990 Pension Funds which have
almost 1,500 members between them and the holders -- thought to
be a number of U.S. hedge funds -- of four outstanding bond
issues.
The agreement with the Trustees for the pension funds, which are
estimated to be in deficit by approximately US$200 million under
the s75 'buy out' basis prescribed by U.K. law, will allow the
company and the trustees to avoid costly and protracted
litigation in multiple and potentially competing jurisdictions.
The agreement also creates an additional reserve of US$69
million for certain potential pension scheme liabilities in
respect of age-related equalization changes.
In connection with this important agreement, Sea Containers
withdrew its appeal against the Financial Support Direction.
The FSD, which sought to oblige Sea Containers Limited -- the
ultimate parent company -- to put in place additional financial
support for the pension funds, was handed down by the
Determinations Panel of the UK Pensions Regulator on
July 3, 2007. Sea Containers considers that the settlement will
adequately address any FSD and that the current legal
proceedings would be of no further benefit.
Terms of the Settlement
As a result of extensive negotiations that commenced prior to
the bankruptcy filing and have continued throughout these
Chapter 11 cases, the Debtors, their Official Committee of
Unsecured Creditors, and the Trustees agreed to the Settlement
under which the Schemes' claims against the Debtors are fully
resolved. Pertinent terms of the Settlement are as follows:
a) Schemes' Claim: In full and final satisfaction of all of
the Schemes' claims against SCL, SCSL and other direct and
indirect subsidiaries of SCL or SCSL, the Schemes shall
have a single allowed general unsecured claim against SCL
in the aggregate amount of US$194 million of which:
i) US$153.8 million will be allocated to the 1983
Scheme; and
ii) US$40.2 million will be allocated to the 1990 Scheme.
b) Administrative Expenses: Within three business days after
entry of an order approving the Settlement, the Debtors
shall pay US$5 million to the Schemes on account of
certain administrative ordinary course expenses.
c) Chapter 11 Advisory Fees: If the Debtors agree to pay, or
the Court approves payment of, Chapter 11 advisory fees to
any of the Debtors' prepetition creditors as
administrative expenses, the Schemes may seek
reimbursement of their Chapter 11 advisory fees in
accordance with the terms of the Settlement.
d) Equalization Claim Reserve: On the effective date of a
confirmed Chapter 11 plan in these cases, the Debtors
shall establish a reserve in respect of a US$69 million
claim for equalization matters. The Trustees shall
allocate such reserve between the Schemes. Upon
determination of the allowed amount of the equalization
claims, such amount, if any, shall be allowed against SCL
as a general unsecured claim and shall be paid from the
reserve.
e) Status Quo: The Schemes shall agree for a period of time
and under certain circumstance to refrain from selling or
assigning or otherwise transferring any legal or
beneficial interest in their claims and from winding up
the Schemes.
f) Definitive Documentation: The Settlement is subject to:
i) definitive documentation in form and substance
acceptable to all parties (executed and delivered
by the parties);
ii) approval under Federal Bankruptcy Rules P. 9019; and
iii) if required by the Schemes, U.K. court and
regulatory approval to ensure the Schemes' continued
eligibility for protection by the U.K. Pension
Protection Fund.
The Debtors and the Trustees also agree that in response to any
FSD issued by the U.K. Pensions Regulator, the Debtors will
propose, and the Trustees will support, financial support
arrangements consistent with the terms of the Settlement. The
Debtors and the Trustees further agree that the Settlement is
conditioned, in part, upon TPR's approval of those financial
support arrangements.
The parties have also agreed that the definitive documentation
for the Settlement will be in a form that will not result in
creditors of SCSL and other subsidiaries receiving unwarranted
changes in recoveries as a result of the Schemes' allowed claims
at the SCL level.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083.
The Court previously gave the Debtors until Feb. 20, 2008, to
file a plan of reorganization. The Debtors are seeking an
extension of this deadline to April 15, 2008.
===========
B R A Z I L
===========
AAR CORP: Expanding Manufacturing Operations in California
----------------------------------------------------------
AAR Corp. is significantly expanding its Composites
manufacturing operations with the lease of a 90,000 square-foot
facility located at the McClellan Business Park, formerly
McClellan Air Force Base, in Sacramento, California.
AAR will occupy the portion of the McClellan facility formerly
used by the U.S. Air Force for manufacturing composite
replacement aircraft parts. The expansion provides more than
four times the company's current composites manufacturing
capability through additional equipment and added capacity at
the facility.
"Increasingly, the aircraft community is using a higher
percentage of composite content in the manufacturing process as
it seeks to take advantage of the material's improved strength
and lighter weight," said David P. Storch, Chairman and Chief
Executive Officer of AAR CORP. "We're expanding our composites
manufacturing capacity to capitalize on this trend and keep pace
with our customers' changing requirements."
About AAR Corp.
AAR Corp. (NYSE: AIR) -- http://www.aarcorp.com/-- provides
products and value-added services to the worldwide aviation and
aerospace industry. With facilities and sales locations around
the world, AAR uses its lose-to-the-customer business model to
serve airline and defense customers through Aviation Supply
Chain; Maintenance, Repair and Overhaul; Structures and Systems
and Aircraft Sales and Leasing. In Asia Pacific, the company
has offices in Singapore, China, Japan and Australia. In Latin
America, the company has a sales office in Rio de Janeiro,
Brazil.
* * *
AAR Corporation continues to carry Moody's Investors Service's
'Ba3' long-term corporate family rating, which was assigned in
November 2006.
BANCO CRUZEIRO: Earns BRL16 Million from Telebras Share Sale
------------------------------------------------------------
Banco Cruzeiro do Sul has sold its 26 billion preferred shares
in the capital stock of Telecomunicacoees do Brasil S.A. aka
Telebras, generating a pre-tax profit of BRL16.0 million.
The sold shares constitute almost 12.4% of Telebras preferred
shares, Business News Americas reports, citing Banco Cruzeiro.
Banco Cruzeiro do Sul still have a participation of 8.37% or 29
billion in common shares in Telebras.
Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul
(Bovespa - CZRS4) -- http://www.bcsul.com.br/-- a private-
sector multiple bank with operations in the consumer segment,
through paycheck-deductible loans to public employees and social
security beneficiaries, and in the corporate segment, offering
middle- market companies short-term loans usually backed by
receivables. The bank's core business is lending to civil
servants, with payments automatically deducted from payrolls.
* * *
On Sept. 10, 2007, Moody's assiged a Ba2 foreign currency
deposit rating for Banco Cruzeiro do Sul.
BANCO DO BRASIL: To Combine Besc by Second Quarter
--------------------------------------------------
Banco do Brasil will be combining former Santa Catarina state
bank Besc by 2008 second quarter, Business News Americas
reports, citing Banco do Estado de Santa Catarina president
Eurides Mescolotto.
The local press disclosed that Brazilian President Luiz Ignacio
Lula da Silva has withdrawn Besc from the national privatization
plan, Programa Nacional de Desestatizacao.
The report relates that in preparation for privatization along
with other banks, Besc was federalized in 1999. Following
President Lula's decree signing, Besc was given 30 days for an
auditor employment, which in turn will have 45 days to determine
how much the bank is worth.
Banco do Brasil claimed in November that it would pay BRL250
million over 12 months for Besc. As part of the deal, the
federal government would pay the state of Santa Catarina BRL270
million, BNamericas relates.
The report adds that Banco do Brasil would likely acquire
federal district state bank Banco de Brasilia after combining
Besc and Banco do Estado do Piaua SA - BEP.
Banco do Brasil will release its 2007 financial results by Feb.
28.
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and more than 7,000
points of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Nov. 6, 2007, Moody's assigned a Ba2 foreign currency deposit
rating to Banco do Brasil. On Aug. 23, 2007, Moody's assigned a
Ba2 long-term bank deposit rating on the bank with a stable
outlook.
In May 2007, Standard & Poor's Ratings Services raised its long-
term foreign currency counterparty credit rating on Brazilian
government-related entity Banco do Brasil to 'BB+' from 'BB',
after Brazil's foreign currency sovereign credit rating was
upgraded to BB+.
BNP PARIBAS: Moody's Cuts Credit-Linked Notes' Rating to Ba2
------------------------------------------------------------
Moody's Investors Service has taken rating action regarding
certain credit linked notes issued by BNP and Banque Paribas.
Moody's has upgraded this series of notes issued by Banque
Paribas:
-- Series 430 to Ba2 from B2, credit linked to Brazil.
Moody's has upgraded this series of notes issued by BNP Paribas:
-- Series 458 to Ba2 from B3, credit linked to Brazil.
Moody's said the ratings are being updated to reflect the credit
risk of the reference entities to which the notes are linked.
The ratings also incorporate the credit risk of the issuer.
A credit linked note is a form of funded credit derivative that
is structured as a security with an embedded credit default swap
allowing the issuer to transfer a specific credit risk to credit
investors. It is issued by a special purpose company or trust,
designed to offer investors par value at maturity unless a
referenced credit defaults.
Headquartered in Paris, France, BNP Paribas –-
http://www.bnpparibas.com/-- is one of the main banks in Europe
and France created through the merger of Banque Nationale de
Paris and Paribas. Banco BNP Paribas Brasil SA is a subsidiary
of BNP Paribas in Sao Paulo, Brazil.
BRASKEM SA: Board OKs New Buyback Program for 19,862,411 Shares
---------------------------------------------------------------
Braskem's Board of Directors has approved a new share buyback
program. The beginning of this program is subject to the
approval of the cancellation of shares currently held in
treasury, in the amount of BRL244 million, in the Extraordinary
Shareholders' Meeting to be held on March 6.
The program will be effective for 12 months, with investment of
BRL252 million at present value for its full implementation, and
consists of the buyback of up to 19,862,411 preferred class A
shares, which represent approximately 10% of class A outstanding
shares.
According to Braskem Chief Executive Officer, Jose Carlos
Grubisich, "This is one more action of Braskem aimed at creating
value to the company and its shareholders. We believe that the
consolidation process of the petrochemical industry with the
acquisition of Ipiranga, which brought new size and
competitiveness to Braskem, and the excellent performance
achieved by the company, have not been reflected in the
appreciation of our shares."
Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins producer
in Latin American, and is among the three largest Brazilian-
owned private industrial companies. The company operates 13
manufacturing plants located throughout Brazil, and has an
annual production capacity of 5.8 million tons of resins and
other petrochemical products. The company reported consolidated
net revenues of about US$9 billion in the trailing twelve months
through Sept. 30, 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Braskem S.A. Fitch
also affirmed the 'BB+' ratings on the company's senior
unsecured notes 2008, 2014, and senior unsecured notes 2017.
BRASKEM SA: Launches First Polypropylene Resin in LatAm Market
--------------------------------------------------------------
Braskem SA has launched the country's first ultra-clarified
polypropylene resin, called Prisma 3410, on the Brazilian and
Latin American markets. The resin opens a new frontier for
applying polypropylene in parts that require great transparency.
Braskem polypropylene business director, Rui Chammas explained,
"With this development, Braskem reaffirms its commitment to
innovation as a means to create value for its clients and the
sector’s entire productive chain."
The new resin is geared towards the cosmetic, portable
electronic, household appliance, office material, package and
lid segments. The company estimates the potential market for
this resin at approximately 10,000 tons. "For 2008, the
objective is to reach a sales volume of more than 1,200 tons,"
Mr. Chammas added, underscoring that polypropylene is one of the
fastest growing resins in the world. "In 2007, PP grew more
than 10%, which proves its versatility and potential to replace
other materials."
With the development of Prisma 3410, Braskem expands the Prisma
family portfolio of premium resins that have a differentiated
performance in applications involving parts with great
transparency and mechanical resistance. According to Technology
and Innovation Director, Luis Fernando Cassinelli, ultra-
clarified PP’s main differential is that it sets a new
performance level in transparency and mechanical resistance for
the final part. Its high transparency, 50% greater than
conventional polypropylene, and its strong rigidity make the
product especially indicated for manufacturing transparent parts
with thick walls. "Its differentiated technical performance and
its cost competitiveness also make it feasible for replacing
styrene-based engineering plastics as well as other
alternatives, such as crystal polystyrene, polycarbonate,
acrylic and glass," added Mr. Casinelli.
"We are at the worldwide forefront in using this technology.
Our commitment to technological innovation allows us to
anticipate our clients' needs and influence market trends," Mr.
Chammas concluded.
The resin was developed in record time at the Braskem Technology
and Innovation Center in Triunfo/RS, the most complete and best
equipped of its kind in Latin America. The center has a highly
specialized team comprised of PhDs, researchers and skilled
technicians, as well as cutting edge equipment and pilot plants.
About Braskem
Braskem (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins producer
in Latin American, and is among the three largest Brazilian-
owned private industrial companies. The company operates 13
manufacturing plants located throughout Brazil, and has an
annual production capacity of 5.8 million tons of resins and
other petrochemical products. The company reported consolidated
net revenues of about US$9 billion in the trailing twelve months
through Sept. 30, 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Braskem S.A. Fitch
also affirmed the 'BB+' ratings on the company's senior
unsecured notes 2008, 2014, and senior unsecured notes 2017.
COMPANHIA SIDERURGICA: Companhia Vale to Resume Pellets Supply
--------------------------------------------------------------
Published reports say that Companhia Siderurgica Nacional will
again receive pellets from Brazilian mining and metals group
Companhia Vale do Rio Doce, as ordered by a court in Rio de
Janeiro.
Companhia Vale said that it stopped supplying pellets to
Companhia Siderurgica this month due to strong market conditions
early this year that left the miner with no surplus.
Business News Americas relates that Companhia Siderurgica and
Companhia Vale failed to formalize a long-term contract for
pellet supply in 2005. Companhia Vale said that it had been
supplying surplus pellet to Companhia Siderurgica since 2006,
without any long-term agreement that establishes a steady
supply. There isn't a formal contractual obligation that
assures regular pellet sales to Companhia Siderurgica, the
report adds.
Companhia Vale must now provide 56,000 tons of the steel-making
input each month to Companhia Siderurgica, reports say.
About Companhia Vale
Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.
About Companhia Siderurgica
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets, tin
mill products and tinplate. The company also runs its own iron
ore, manganese, limestone and dolomite mines and has strategic
investments in railroad companies and power supply projects.
The group also operates in Brazil, Portugal and the U.S.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services revised its
outlook on Brazil-based steel maker Companhia Siderurgica
Nacional and related entity National Steel S.A. to positive from
stable. At the same time, Standard & Poor's affirmed its 'BB'
corporate credit rating on CSN and its 'B+' rating on NatSteel.
GERDAU SA: Investing US$120M in Minas Gerais Iron Ore Operations
----------------------------------------------------------------
Gerdau SA said that it will pump US$120 million into its iron
ore operations in Minas Gerais in the 2008-10 period.
Business News Americas relates that disbursements in the next
three years will include a treatment plant and logistics
infrastructure to transport output.
According to Gerdau, studies point out to the existence of an
iron ore reserve of 1.8 billion tons in Minas Gerais.
Gerdau Chief Executive Officer Andre Gerdau Johannpeter
commented to the press, "Our interest is to use the iron ore to
enhance our competitiveness. Our goal is to have our own source
of iron ore at a more affordable cost than if bought on the
market."
Mr. Johannpeter told BNamericas that Gerdau has won't ship input
abroad, but the company could eventually consider doing so in
the future. "The focus now is to supply the iron ore to our
mills," Mr. Johannpeter commented to BNamericas.
Headquartered in Porto Alegre, Brazil, Gerdau SA
-- http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s
Ba1 corporate family rating and stable outlook.
GERDAU SA: Gets Hydroelectric Complex Concession
------------------------------------------------
Brazil's National Electrical Power Agency aka ANEEL has
transferred the concession to produce electricity at the
hydroelectric complex of Sao Joao - Cachoeirinha, to Gerdau SA.
The complex is composed of two hydroelectric plants to be built
in the river Chopim, in the municipalities of Honorio Serpa and
Clevelandia, Parana.
The project will have an installed capacity of 105 megawatts.
Construction should be completed by the beginning of 2011. The
estimated investment is US$173 million.
Headquartered in Porto Alegre, Brazil, Gerdau SA
-- http://www.gerdau.com.br/-- produces and distributes crude
steel and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay, India and the
United States.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s
Ba1 corporate family rating and stable outlook.
RHODIA SA: Appoints Pascal Juery as President for Novecare
----------------------------------------------------------
Rhodia S.A. appointed Pascal Juery as president of the company's
Novecare Enterprise. Before his appointment Mr. Juery was the
group purchasing vice president. Jose Matias succeeded this
function. Mr. Juery and Mr. Matias are members of Rhodia's
executive committee.
Rhodia Novecare serves selected consumer care and industrial
market segments and holds leading positions in the surfactants,
phosphorus derivatives, natural polymers, synthetic polymers and
monomers technologies, and sovents. Growth is driven by
innovation, customer intimacy and global reach. Rhodia
Novecare’s areas of expertise are protection, surface
modification, active delivery and improvement of formulations
and processes. the enterprise has global sales of EUR945
million.
About Rhodia
Headquartered in Paris, France, Rhodia S.A. (NYSE: RHA)
-- http://www.rhodia.com/-- is a global specialty chemicals
company partnering with major players in the automotive,
electronics, pharmaceuticals, agrochemicals, consumer care,
tires, and paints and coatings markets. Rhodia offers tailor-
made solutions combining original molecules and technologies to
respond to customers' needs. The group generated sales of
EUR4.8 billion in 2006 and employs around 16,000 people
worldwide.
Rhodia is listed on Euronext Paris and the New York Stock
Exchange. The company has operations in Brazil.
* * *
As of Feb. 19, 2008, Rhodia S.A. carries Moody's long-term
corporate family rating of Ba3 and senior unsecured debt rating
of B1 with positive outlook.
The company also carries Standard & Poor's BB- long-term foreign
and local issuer credit ratings, and B short-term foreign and
local issuer credit ratings. The ratings outlook is stable.
Fitch Ratings assigned long-term issuer default rating at BB-
and senior unsecured debt rating at BB- with outlook positive.
SUN MICROSYSTEMS: Partners With TSMC for UltraSPARC Processors
--------------------------------------------------------------
Sun Microsystems Inc. has selected Taiwan Semiconductor
Manufacturing Company as its foundry partner for processors
based on 45-nanometer geometry as well as future generations.
Sun partner Texas Instruments will continue to test and package
the 45-nanometer processors.
"TSMC gives us leading process technology coupled with the
economics scale of high volume and lower cost," said Dr. David
Yen, Sun's executive vice president, Microelectronics.
"TSMC is already fully engaged with engineers from both Sun and
TI as we make this transition as seamless and as fast as
possible," said Sridhar Vajapey, VP, Technology, Validation and
Test, who heads the Sun team that selected TSMC.
"TSMC, working with Sun Microelectronics as their foundry
partner together with Texas Instruments, on this industry-
leading technology is a tremendous synergy of strengths," said
Jack Sun, vice president of R&D at TSMC. "This collaboration
brings together all the ingredients to successfully design, test
and manufacture some of the most complex chips in the world on
TSMC's CPU-grade manufacturing process."
"TI has had the pleasure of being a strategic partner with Sun
for almost two decades and we look forward to working with TSMC
to provide turnkey backend support for Sun's SPARC product
roadmap," Hunter Ward, TI VP & General Mgr - Sun Business Unit.
Driving OpenSPARC(TM) Adoption
As part of the announcement, both Sun and TSMC will collaborate
to expand Sun's OpenSPARC program. In the first phase of the
program the two companies will work together to expand the
university outreach program in Taiwan. In addition to its
existing university outreach program, TSMC has a large fabless
customer base and a substantial number of large IP partners that
will help expand OpenSPARC platform adoption.
Through the OpenSPARC program, Sun has established six major
universities as OpenSPARC Technology Centers of Excellence: the
University of California, Santa Cruz; University of Texas,
Austin; University of Michigan, Ann Arbor; University of
Illinois, Urbana-Champaign; Stanford University; and Carnegie
Mellon University. Each Center of Excellence has a minimum two-
year commitment, during which time they'll execute chip design
research and course work based on Sun's chip multi-
threading(CMT) design.
Sun Microelectronics
The Sun Microelectronics group oversees development in
networking, cryptography, and high-performance computing, and
servers as a supplier to OEM customers around the globe. In
August 2007, Sun introduced the UltraSPARC T2 processor, the
world's fastest commodity processor. The UltraSPARC T2 set new,
single-chip performance world records in two industry standard
benchmarks: SPECint_rate2006 (78.5) and SPECfp_rate2006 (62.3).
The UltraSPARC T2 processor, which is powered by less than 95
watts (nominal) with less than two watts per thread, boasts the
most functionality, and lowest wattage per core and thread of
any processor in its class.
About Sun Microsystems
Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: SUNW) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services. It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.
Sun Microsystems conducts business in 100 countries around the
globe, including Brazil, Argentina, India, Hungary, United
Kingdom, Singapore, among others.
* * *
Sun Microsystems Inc. carries Moody's "Ba1" probability of
default and long-term corporate family ratings with a stable
outlook. The ratings were placed on Sept. 22, 2006, and
Sept. 22, 2005, respectively.
Sun Microsystems also carries Standard & Poor's "BB+" long-term
foreign and local issuer credit ratings, which were placed on
March 5, 2004, with a stable outlook.
ZIM CORP: Earns $155,758 in Third Quarter Ended Dec. 31, 2007
-------------------------------------------------------------
ZIM Corporation reported net income of US$155,758 for the third
quarter ended Dec. 31, 2007, compared to a US$507,117 net loss
for the quarter ended Dec. 31, 2006.
Revenue for the quarter ended Dec. 31, 2007, was US$698,562, an
increase from US$517,969 for the quarter ended Dec. 31, 2006. A
one-time recognition of revenue in the premium SMS segment of
US$197,948 is included in revenue and resulted from a review of
outstanding payables and receivables and subsequent settlement
of outstanding amounts. This was partially offset by the
previously disclosed decline in revenue from the company's SMS
aggregation services caused by the continuing saturation of the
aggregation market which the company expects to continue.
"Results from this quarter reflect our efforts to improve
operations and focus on our higher margin product segments," Dr.
Michael Cowpland, president and chief executive officer of ZIM,
said. "We've made good progress in reducing our operating
expenses and continue to look for additional savings as we
pursue opportunities related to our Internet TV, Mobile, and
Database products and services."
ZIM had cash of US$273,507 as at Dec. 31, 2007, as compared to
US$441,637 on Dec. 31, 2006, and US$209,741 at Sept. 30, 2007.
As at Dec. 31, 2007, ZIM had no amounts due to financial
institutions.
Going Concern Doubt
As reported in the Troubled Company Reporter on Nov. 19, 2007,
Raymond Chabot Grant Thornton LLP, in Ottawa, Canada, expressed
substantial doubt about ZIM Corporation's ability to continue as
a going concern after auditing the company's consolidated
financial statements for the years ended March 31, 2007, and
2006. The auditing firm pointed to the company's net loss of
US$1,936,187 for the year ended March 31, 2007, and the
company's negative cash flows from operations during each of the
previous five years.
About ZIM Corp.
Ottawa, Canada-based ZIM Corporation (OTC BB: ZIMCF) --
http://www.zim.biz/-- is a mobile content, Enterprise Database
Software and Internet TV service provider. Through its global
infrastructure, ZIM provides publishing and licensing services
for market-leading mobile content and for Internet TV
broadcasting. The company has offices in Brazil and London.
==========================
C A Y M A N I S L A N D S
==========================
BANK OF CHINA: Gets Nod for CNY10-Billion Stock Fund
----------------------------------------------------
China Securities Regulatory Commission has approved Bank of
China Investment Management Co. Ltd.'s new open-ended stock fund
valued at around CNY10 billion, Thomson Financial News reports.
Bank of China Investment Management is the fund-management unit
of the Bank of China Ltd.
The move is aimed at "increasing capital flows into the local
bourse and giving a boost to the stock market," the report says.
The fund was one of two with a total value of CNY19.5 billion
that had been approved by the country's securities regulator,
Bank of China Chairman Xiao Gang said.
Beijing-based Bank of China Limited -- http://www.bank-of-
china.com/en/static/index.html -- is a Chinese bank that has
presence in all major continents. The company offers financial
services through itsglobal network of over 560 overseas offices
in 25 countries and regions. In Hong Kong and Macao, Bank of
China is one of the local note issuing banks. Traditional
commercial banking constitutes the majority of Bank of China's
business, which is composed of corporate banking, retail banking
and banking with financial institutions. The company has
branches in Singapore, Japan, Kazakhstan, London, Grand Cayman,
and the United States.
Moody's Investors Service gave the bank a bank financial
strength rating of D- on May 4, 2007.
The Troubled Company Reporter-Asia Pacific reported that Fitch
Ratings affirmed the bank's D individual rating on Dec. 14,
2006.
CHENGWEI AAC: Proofs of Claim Filing Deadline Is March 5
--------------------------------------------------------
Chengwei AAC's creditors have until March 5, 2008, to prove
their claims to Aline Moulia, 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.
Chengwei AAC's shareholders agreed on Nov. 27, 2007, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Aline Moulia
Corporate Filing Services Ltd.
P.O. Box 613, Grand Cayman KY1-1107
Cayman Islands
Telephone: 415-609-4845
Fax: 415-358-4045
DRAGONOX HOLDINGS: Proofs of Claim Filing Is Until March 5
----------------------------------------------------------
Dragonox Holdings Limited's creditors have until March 5, 2008,
to prove their claims to Lion International Corporate Services
Limited, 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.
Dragonox Holdings' shareholder decided on Jan. 9, 2008, to place
the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Lion International Corporate Services Limited
Attn: Mark Edmunds
P.O. Box 484, Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 949 7755
Fax: (345) 949-7634
FREESPIRIT CAPITAL: Sets Final Shareholders' Meeting for March 5
----------------------------------------------------------------
The Freespirit Capital Management - Asia (Non-US Feeder) Fund
will hold its final shareholders' meeting on March 5, 2008, at
2:30 p.m., at 3 Pickering Street, #02-18 Nankin Row, Singapore
048660 Singapore.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
The Freespirit Capital Fund's shareholders agreed on Jan. 18,
2008, to place the company into voluntary liquidation under The
Companies Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Eric Sandlund
3 Pickering Street
#02-18 Nankin Row
Singapore 048660, Singapore
LEAVITT INSURANCE: Proofs of Claim Filing Deadline Is March 5
-------------------------------------------------------------
Leavitt Insurance Company's creditors have until March 5, 2008,
to prove their claims to Michael Leavitt and Justin Kuperberg,
the company's liquidators, 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.
Leavitt Insurance's shareholders agreed on Jan. 18, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Michael Leavitt and Justin Kuperberg
c/o Leavitt Management Group
2600 Lake Lucien Drive
Maitland, Florida 32751
USA
UBS PACTUAL: Sets Final Shareholders' Meeting for March 5
---------------------------------------------------------
UBS Pactual High Income Fund, Ltd., will hold its final
shareholders' meeting on March 5, 2008, at 10:00 a.m., at Ogier,
Attorneys, Queensgate House, South Church Street, Grand Cayman,
Cayman Islands.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) authorize the liquidator of the company to retain
the records of the company for a period of five
years from the dissolution of the company, after
which they may be destroyed.
UBS Pactual's shareholder decided on Feb. 4, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Ogier, Attorneys
Attn: Susan Taylor
Queensgate House, South Church Street
Grand Cayman, Cayman Islands
Telephone: (345) 949 9876
Fax: (345) 949 1986
===============
C O L O M B I A
===============
GMAC LLC: Closing Down 75% of North American Auto Credit Offices
----------------------------------------------------------------
Following the warning of Cerberus Capital Management LP founder
Stephen Feinberg regarding GMAC LLC's "substantial difficulty,"
the auto credit company intends to cut 75% of its North American
regional auto-lending offices, Greg Bensinger of Bloomberg News
reports.
A letter from Barbara Stokel, executive vice president of North
American operations, to car dealers, states that GMAC will close
most of its 16 offices in the United States, except those in
Dallas, Texas; Pittsburgh, Pennsylvania; Atlanta, Georgia; and
Chicago, Illinois. GMAC will keep its Toronto office in Canada,
and close three others.
As reported in the Troubled Company reporter in Feb. 18, 2008,
Mr. Feinberg wrote in a Jan. 22 letter to investors, that while
Cerberus has "detailed contingency plans in a continuing
worsening environment . . . if the credit markets continue to
decline and we find ourselves in a prolonged environment of
capital market shutdown, GMAC could run into substantial
difficulty."
For the full-year 2007, GMAC reported a net loss of US$2.3
billion, compared to net income of $2.1 billion for the full-
year 2006. Profitable results in the automotive and insurance
businesses were more than offset by a $4.3 billion loss at its
Residential Capital mortgage unit.
About GMAC
GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors
Acceptance Corporation, is a global, diversified financial
services company that operates in approximately 40 countries in
automotive finance, real estate finance, insurance and other
commercial businesses. GMAC was established in 1919 and employs
approximately 26,700 people worldwide. Cerberus Capital
Management LP bought 51% GMAC LLC stake from General Motors
Corp. on December 2006. Its Latin American operations are
located in Argentina, Brazil, Chile, Colombia, Mexico and
Venezuela.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 8, 2008, Moody's Investors Service downgraded the senior
unsecured rating of GMAC LLC to B1 from Ba3. Separately, the
senior unsecured rating of Residential Capital LLC was
downgraded to B2 from Ba3. The rating outlook for both firms is
negative. The GMAC rating action is a result of Moody's
downgrade of ResCap's ratings.
==================
C O S T A R I C A
==================
ALCATEL-LUCENT: Forms LatAm & Caribbean Operational Structure
-------------------------------------------------------------
Alcatel-Lucent SA official Lourinaldo Silva told Business News
Americas that the company has formed a new operational structure
for its Latin American & Caribbean operations.
BNamericas relates that Mr. Silva will head the new division.
He was a director of Alcatel-Lucent's enterprise segment in
Brazil.
Mr. Silva told BNamericas that with the creation of the new
division, the region gains autonomy because offices in Europe
will no longer administer Alcatel-Lucent's operations.
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported on Nov. 9, 2007, Moody's Investors Service
downgraded to Ba3 from Ba2 the Corporate Family Rating of
Alcatel-Lucent. The ratings for senior debt of the group
were equally lowered to Ba3 from Ba2 and the trust preferred
notes of Lucent Technologies Capital Trust I have been
downgraded to B2 from B1. At the same time, Moody's affirmed
its Not-Prime rating for short-term debt of Alcatel-Lucent.
Moody's said the outlook for the ratings is stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO INTERCONTINENTAL: Prosecution Wants Lubrano's Imprisonment
----------------------------------------------------------------
The Justice Ministry and the Monetary and Financial Authority
are seeking the imprisonment of former Banco Intercontinental
Vice President Vivian Lubrano for allegedly being involved in
the bank's fraud case, Dominican Today reports.
Dominican Today relates that the complainants have asked the
National District Appeals Court of the Dominican Republic to
reverse the acquittance of Ms. Lubrano. They also want the
former Banco Intercontinental official to be fined DOP3.5
million; they further want her assets confiscated.
As reported in the Troubled Company Reporter-Latin America on
Oct. 23, 2007, Ms. Lubrano was charged with money laundering.
She was acquitted due to insufficient evidence.
Ms. Lubrano broke the Monetary and Financial Law by allegedly
concealing information from authorities, Dominican Today says,
citing the prosecution.
Dominican Today notes that the court rejected a motion by Ms.
Lubrano's legal representatives to present a video containing
some of the testimonies of witnesses who had testified in the
lower court.
The court will also hear an appeal of the verdict against former
Banco Intercontinental head Ramon Baez Figueroa, Dominican Today
states.
Located in the Dominican Republic, Banco Intercontinental aka
Baninter collapsed in 2003 as a result of a massive fraud and a
resulting deficit of US$2.2 billion. As a consequence, all of
its branches were closed. The bank's current and savings
accounts holders were transferred to the bank's new owner --
Scotiabank. The bankruptcy of Baninter was considered the
largest in world history, in relation to the Dominican
Republic's Gross Domestic Product. The resulting deficit was
equal to 12% to 15% of the country's national GDP. It costs
Dominican taxpayers DOP55 billion and resulted to the country's
worst economic crisis.
====================
E L S A L V A D O R
====================
CHOICE HOTELS: Board Declares US$0.17 Per Share Cash Dividend
-------------------------------------------------------------
On Feb. 11, 2008, Choice Hotels International's Board of
Directors declared a quarterly cash dividend of US$0.17
per share of common stock. The dividend is payable
April 18, 2008, to shareholders of record as of April 4, 2008.
Choice Hotels International -- http://www.choicehotels.com/--
franchises more than 5,500 hotels, representing more than
450,000 rooms, in the United States and 37 countries and
territories. As of Dec. 31, 2007, 1,004 hotels are under
development in the United States, representing 79,342 rooms, and
an additional 89 hotels, representing 8,640 rooms, are under
development in more than 15 countries and territories. The
company has hotels in Brazil, Costa Rica, El Salvador, Guatemala
and Honduras.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 18, 2008, Choice Hotels International Inc.'s balance sheet
at Dec. 31, 2007, showed total assets of US$328.38 million and
total liabilities of US$485.44 million, resulting to a total
shareholders' deficit of US$157.06 million.
=========
H A I T I
=========
ROYAL CARRIBBEAN: To Build US$27-Million Pier in Haiti
------------------------------------------------------
After months of negotiations, Royal Caribbean Cruises Ltd. has
signed an agreement with Haiti to build a US$27 million pier,
The Miami Herald reports.
According to the news report, the 800-foot long pier would allow
cruise passengers to have easy access to a secluded beach. The
company will launch its largest cruise ship -- the 220,000-ton
Genesis -- late next year.
Miami Herald relates that Haitian President Rene Preval had
agreed to the extension of the company's current lease of the
260-acre peninsula along Haiti's north coast from 2026 to 2050.
Mr. Preval made the deal with Craig Milan, president of Royal
Celebrity Tours, and John Weis, director of private destinations
for Royal Caribbean Cruises.
Haiti Finance Minister Daniel Dorsainvil said in a statement
that the pact would draw more tourists and positive comments
from investors, the report adds.
About Royal Caribbean
Headquartered in Miami, Royal Caribbean Cruises Ltd. (NYSE: RCL)
-- http://www.royalcaribbean.com/-- is a global cruise vacation
company that operates Royal Caribbean International, Celebrity
Cruises and Pullmantur Cruises, Azamara Cruises and CDF
Croisieres de France. The company has a combined total of 35
ships in service and seven under construction. It also offers
unique land-tour vacations in Alaska, Australia, China, Canada,
Europe, Latin America and New Zealand. The company has
operations in Puerto Rico.
* * *
Royal Caribbean Cruises Ltd. still carries Moody's 'Ba1' long-
term corporate family rating assigned on Feb. 22, 2005. Moody's
said the outlook is stable.
=============
J A M A I C A
=============
CENTURY ALUMINUM: Posts US$112.3MM Net Loss for 2007 Fourth Qtr.
----------------------------------------------------------------
Century Aluminum Company reported a net loss of US$112.3 million
for the fourth quarter of 2007. For the fourth quarter of 2006,
the company reported a net loss of US$119.1 million.
Reported fourth quarter results were impacted by a net after-tax
charge of US$147.7 million for mark-to-market adjustments on
forward contracts that do not qualify for cash flow hedge
accounting. Quarterly results were impacted by a tax benefit
of US$4.0 million related to the increase in the carrying amount
of deferred tax assets as a result of a state tax law change.
The dilutive effect of the convertible notes, options and
service-based awards would reduce basic EPS by US$0.05 per
share.
For fiscal year ended Dec. 31, 2007, Century reported a net loss
of US$101.2 million compared to the net loss of US$41.0 million
for fiscal 2006.
Included in these results is a net after-tax charge of
US$328.3 million for mark-to-market adjustments on forward
contracts that do not qualify for cash flow hedge accounting.
Full year results were impacted by a tax benefit of US$8.3
million related to the increase in the carrying amount of
deferred tax assets as a result of a state tax law change.
Sales for the fourth quarter of 2007 were US$432.1 million
compared with US$424.4 million for the fourth quarter of 2006.
Sales for fiscal 2007 were US$1.8 billion compared with US$1.6
billion for 2006.
As of Dec. 31, 2007, the company's consolidated balance sheet
reflected a total shareholder's equity of US$0.6 billion.
"Century made good progress in 2007 toward its strategic
objectives of lowering unit production costs, increasing global
diversification and addressing our long-term cost structure,"
Logan W. Kruger, president and chief executive officer, said.
"Our financial results were strong and included record shipments
and cash flow.
"During the fourth quarter, we completed the latest expansion of
Nordural's smelter at Grundartangi, Iceland," Mr. Kruger
continued. "The entire three-year project, which almost tripled
the size of the plant, was implemented on time and on budget."
"The smelter is now producing at its 260,000 tonne per year
capacity, and is operating well," Mr. Kruger added. "We are
proud of the team which delivered this impressive result, while
simultaneously operating the plant in an efficient and safe
manner.
"At our greenfield smelter project near Helguvik, Iceland, we
made important progress," Mr. Kruger stated. "We signed
agreements with two geothermal power providers and with the
national power transmission company."
"We received a favorable opinion from the National Planning
Agency on our environmental impact assessment, Mr. Kruger
relayed. "We raised the equity financing for the plant's first
two phases and became the first U.S. company to list on the
Iceland stock exchange."
"Lastly, we have assembled an experienced project team; they are
now completing the final steps required for the commencement of
construction," Mr. Kruger conveyed.
"We see 2008 as another year of opportunity for Century," Mr.
Kruger went on to say. "We will begin the major construction
phase of our new plant in Iceland."
"We will also commence a modest two year capital improvement
program for our U.S. plants," Mr. Kruger concluded. "These
activities are taking place in an industry environment that we
would characterize as favorable over the medium and longer-
term."
About Century Aluminum
Headquartered in Monterey, California, Century Aluminum Company
(NASDAQ: CENX) -- http://www.centuryaluminum.com/-- owns
primary aluminum capacity in the United States and Iceland, as
well as an ownership interest in alumina and bauxite assets in
the United States and Jamaica. Century's corporate offices are
located in Monterey, California.
* * *
Century Aluminum Company carries Moody's Investors Service Ba3
corporate family and probability-of-default ratings, and B1
senior unsecured debt rating. The ratings outlook remains
stable.
The company also carries Standard & Poor's BB- long-term foreign
and local issuer credit ratings. The ratings outlook remains
stable.
===========
M E X I C O
===========
ALLIS-CHALMERS: Expects to Report Net Income of US$50.3 Million
---------------------------------------------------------------
Allis-Chalmers Energy Inc. disclosed that for the full year 2007
it expects to report revenues of US$574.0 million, operating
income of US$125.0 million and net income of approximately
US$50.3 million. For the fourth quarter 2007 it expects to
report revenues of approximately US$147.0 million, operating
income of US$21.0 million and net income of approximately US$5.6
million.
Adjusted EBITDA is expected to be US$185.4 million and US$38.6
million for the full year and fourth quarter of 2007,
respectively.
Operating results in the fourth quarter of 2007 were primarily
impacted by:
-- weakness in demand for drill pipe in the Gulf of Mexico due
to the hurricane season and the departure of rigs to the
international market.
-- severe flooding in Villahermosa, the largest operating yard
in the company's Mexican tubular services operation.
-- labor strikes in Argentina for 15 days, because of the
October presidential elections, affecting the company's
International Drilling segment. Additionally, the new
Argentine government imposed a corporate tax on all
employees.
-- start up costs and low utilization for our coil tubing
units.
Investment in BCH Ltd.
Allis-Chalmers also disclosed nced that it has entered into an
agreement with BCH Ltd. to invest US$40.0 million in cash in BCH
in the form of a 15% Convertible Subordinated Secured debenture.
The debenture is convertible, at any time, at the option of
Allis-Chalmers into 49.0% of the common equity of BCH. At the
end of two years, Allis-Chalmers has the option to acquire the
remaining 51.0% of BCH from its parent, BrazAlta Resources
Corp., based on an independent valuation from a mutually
acceptable investment bank. BrazAlta is a publicly traded
Canadian-based international oil and gas corporation with
operations in Brazil, Northern Ireland, and Canada (TSX.V:BRX).
BCH is a Canadian-based oilfield services company engaged in
contract drilling operations exclusively in Brazil. BCH has
five drilling rigs under two to three year contracts with
Petroleo Brasileiro S.A., and its partners, and contracts for
two additional drilling rigs and one service rig with BrazAlta
for a term of three years. Allis-Chalmers expects that these
contracts have the potential to generate revenues of
approximately US$125.0 million to BCH over the next three years.
Micki Hidayatallah, Allis-Chalmers' chairman and chief executive
officer, stated, "We are very excited about the opportunity to
make an investment in the drilling and completion market in
Brazil, the most advanced economy in South America. We could
not have found an investment in this market with a more
predictable, stable and profitable business model. As capital
expenditures by Petrobras and BrazAlta continue to increase, we
look forward to increasing our assets in Brazil by working with
BCH's management team in exploring potential markets for our
rental inventory, directional drilling, underbalanced drilling,
coil tubing and casing and tubing installation services. We
also believe that the very capable management team at BCH will
quickly seize the opportunity to expand its drilling and
completion services with its principal customers, Petrobras and
BrazAlta.
About Allis-Chalmers Energy
Headquartered in Houston, Texas, Allis-Chalmers Energy Inc.
(NYSE: ALY) -- http://www.alchenergy.com-- is an oilfield
services company. It provides services and equipment to oil and
natural gas exploration and production companies, domestically
primarily in Texas, Louisiana, New Mexico, Colorado, Oklahoma,
Mississippi, Wyoming, Arkansas, West Virginia, offshore in the
Gulf of Mexico, and internationally primarily in Argentina and
Mexico. Allis-Chalmers provides rental services, international
drilling, directional drilling, tubular services, underbalanced
drilling, and production services.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 10, 2007, Standard & Poor's Ratings Services revised its
outlook on Allis-Chalmers Energy Inc. to positive from stable
and affirmed its 'B' corporate credit rating on the company.
AMERICAN AXLE: To Construct Manufacturing Facility in Rayong
-------------------------------------------------------------
American Axle & Manufacturing Holdings, Inc., which is traded as
AXL on the NYSE, plans to establish a new manufacturing
facility in Thailand, near the city of Rayong, located southeast
of Bangkok.
American Axle has acquired approximately 21 acres in an
industrial park in the Rayong Province for the construction a
90,000-square foot, state-of-the-art, wholly owned regional
manufacturing plant for its highly engineered driveline
products.
It is anticipated that the groundbreaking for this facility will
occur in late spring of 2008, with preliminary production
planned for 2009. Joseph S. Tang has been appointed plant
manager to oversee the construction, build the organization, and
be responsible for the future operation of the facility.
"Our new facility in Thailand represents a significant expansion
of our manufacturing footprint in the important economy of Asia
where growing demand for vehicles is accelerating production
volumes," says AAM Co-Founder, Chairman & CEO Richard E. Dauch.
"AAM is continuing to invest in products and markets where we
can best serve our customers and have the opportunity to drive
profitable growth."
The manufacturing facility will be located in the Hemaraj
Eastern Seaboard Industrial Estate that is locally recognized as
"Detroit of the East" for its heavy population of automotive
OEMs and suppliers. The location is strategically located in
proximity to key seaports and will provide excellent geographic
access to vehicle manufacturers throughout the region.
AAM's current Asia operations include a manufacturing facility
in Changshu, China along with business and engineering offices
in Tokyo, Japan; Shanghai, China; Pune, India; and Seoul, South
Korea.
AAM is a world leader in the manufacture, engineering, design
and validation of driveline and drivetrain systems and related
components and modules, chassis systems and metal-formed
products for trucks, sport utility vehicles, passenger cars and
crossover utility vehicles. In addition to locations in the
United States (Michigan, New York, Ohio and Indiana), AAM also
has offices or facilities in Brazil, China, Germany, India,
Japan, Luxembourg, Mexico, Poland, South Korea and the United
Kingdom.
Headquartered in Detroit, Michigan, American Axle &
Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/--
and its wholly owned subsidiary, American Axle & Manufacturing,
Inc., manufactures, engineers, designs and validates driveline
and drivetrain systems and related components and modules,
chassis systems and metal-formed products for light trucks,
sport utility vehicles and passenger cars. In addition to
locations in the United States (in Michigan, New York and Ohio),
the company also has offices or facilities in Brazil, China,
Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea
and the United Kingdom.
* * *
As reported in the Troubled Company Reporter on Nov. 27, 2007,
Moody's Investors Service affirmed American Axle & Manufacturing
Holdings, Inc.'s Corporate Family rating of Ba3 as well as the
senior unsecured rating of Ba3 to American Axle & Manufacturing
Inc.'s notes and term loan. At the same time, the rating agency
revised the rating outlook to stable from negative and renewed
the Speculative Grade Liquidity rating of SGL-1.
ARROW ELECTRONICS: Signs Purchase Agreement With LOGIX
------------------------------------------------------
Arrow Electronics Inc. has entered into exclusive negotiations
to purchase 100 percent of the shares of LOGIX S.A., a
subsidiary of Groupe OPEN. The transaction is subject to
consultation with the LOGIX works council and any definitive
agreement will be subject to EU competition clearance. Arrow
anticipates the acquisition will be immediately accretive to
earnings post integration.
LOGIX is a leading value-added distributor of midrange servers,
storage, and software in 11 European countries with annual gross
revenues of approximately 500 million euros. Headquartered in
Courbevoie, France, LOGIX has operations in France, Belgium,
Luxembourg, Morocco, Poland, the Netherlands, Israel, Denmark,
Finland, Sweden, and Norway, bringing Arrow Enterprise Computing
Solutions’ geographic reach to 24 countries. With approximately
500 employees, LOGIX provides a full range of value-added
distribution services, including demand creation, integration,
technical training, financing, marketing and logistics, to over
6,500 partners.
"With this acquisition, we continue the transformation of our
ECS business. Two years ago we entered the European marketplace
and this transaction represents the next step in our strategic
expansion in this important region. With its experienced
management team and highly talented sales, marketing and design
professionals, LOGIX is well positioned to take advantage of the
increasing demand for virtualization and state-of-the-art
infrastructure solutions. LOGIX’s best-in-class portfolio of
suppliers and focus on the fast growing mid-market will enable
Arrow to strengthen relationships with key suppliers and
increase our value proposition in the European marketplace,"
said William E. Mitchell, chairman, president and chief
executive officer.
"I am pleased to join Arrow Electronics in further accelerating
its European transformation. The transaction will allow all
employees, clients, and suppliers of LOGIX to benefit from
greater scale and the efficiency of a leading worldwide player,"
said Laurent Sadoun, chairman and chief executive officer of
LOGIX.
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.
GRUPO MEXICO: Strikers Ask US Congress to Freeze US$1.4B Funding
----------------------------------------------------------------
The World War 4 Report says that representatives of the
protesters at Grupo Mexico SA, de C.V.'s Cananea mine have asked
the U.S. Congress to withhold a US$1.4 billion funding for
Mexican security forces until public hearings are held to
investigate the use of the police and military against the
strikers on Jan. 11.
According to WW4, leaders from the US-based United Steelworkers
accompanied the Mexican strikers to the Capitol in Washington,
DC, to make the request to the congress.
WW4 relates that police and soldiers had forcefully removed
strikers from the mine. The Labor Secretariat said that
soldiers and police agents would continue to occupy Cananea, WW4
notes.
United Steelworkers' head, Loe Gerard, commented to WW4, "Mexico
cannot be allowed to violate workers' human rights with impunity
under the pretense of securing borders and combating narco-
trafficking."
United Steelworkers member Salvador Aguilar told WW4, "[W]e want
him to practice what he [Mexican President Felipe Calderon]
preaches in Mexico and stop using the army and the police to
destroy unions."
As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2008, a court in Mexico authorized workers at Cananea
to continue their protest. The Mexican labor board had declared
that the five-month strike by workers at Cananea was illegal.
The strikers had obtained in December 2007 authorization from a
Mexican court to continue their protests over contracts and
safety at the mine. The Mexican national mining-metalworkers
union STMMRM launched demonstrations against the labor
ministry's decision. However, the recent court ruling
overturned the labor board's decision, siding with the union's
appeal. Grupo Mexico said that it would appeal the court's
ruling that allowed the protest at Cananea to continue.
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, is the world's third largest copper producer, fourth
largest silver producer and fifth largest producer of zinc and
molybdenum.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 29, 2006, Fitch upgraded the local and foreign currency
Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to
'BB+' from 'BB'. The rating still holds to date with a stable
outlook.
KANSAS CITY: Earns US$55 Mil. in Fourth Quarter Ended Dec. 31
-------------------------------------------------------------
Kansas City Southern reported financial results for fourth
quarter and year ended Dec. 31, 2007.
The company reported net income of US$54.7 million for quarter
ended Dec. 31, 2007, compared to net income of US$40.6 million
for the same period in the previous year. Net income available
to common shareholders in the fourth quarter ended totaled
US$49.9 million compared with US$35.7 million in fourth quarter
2006, a 36.6% increase. The company's net income for full year
ended Dec. 31, 2007, was US$153.8 million compared with net
income of US$108.9 million in 2006. Net income available to
common shareholders in the full year ended totaled US$134
million compared with US$89.4 million in fourth quarter 2006.
Increased fuel, casualties and insurance and materials and other
expenses were partially offset by reductions in compensation and
benefits, purchased services and equipment costs. The
improvement in compensation and benefits expense includes, among
other things, certain non-cash credits related to profit sharing
expense in Mexico driven by various tax initiatives taken in
response to new tax legislation enacted in the fourth quarter.
Tax expense in the fourth quarter was driven higher by the
recent tax legislation in Mexico increasing the effective rate
for the quarter to 32.6% due to a non-recurring, non-cash
adjustment of recognized net operating losses.
Operating income for the fourth quarter was a record US$108.7
million compared with US$88.2 million last year, a 23.2%
increase. The fourth quarter 2007 operating ratio was 76.4%
compared with 80.1% a year ago.
About Kansas City Southern
Headquartered in Kansas City, Missouri, Kansas City Southern
(NYSE:KSU) -- http://www.kcsouthern.com/-- is a transportation
holding company that has railroad investments in the U.S.,
Mexico and Panama. Its primary U.S. holding includes KCSR,
serving the central and south central U.S. Its international
holdings include Kansas City Southern de Mexico, serving
northeastern and central Mexico and the port cities of Lazaro
Cardenas, Tampico and Veracruz, and a 50% interest in Panama
Canal Railway Company, providing ocean-to-ocean freight and
passenger service along the Panama Canal. KCS' North American
rail holdings and strategic alliances are primary components of
a NAFTA Railway system, linking the commercial and industrial
centers of the U.S., Canada and Mexico.
* * *
Kansas City Southern continues to carry Moody's Investor Service
'B2' probability of default rating which was placed in
September 2006.
MOVIE GALLERY: Files Second Amended Plan of Reorganization
----------------------------------------------------------
Movie Gallery, Inc., and its debtor-affiliates delivered to the
U.S. Bankruptcy Court for the Eastern District of Virginia a
Second Amended Joint Plan of Reorganization, and accompanying
Disclosure Statement on Feb. 15, 2008, to incorporate, among
others, provisions relating to the Cash-out Election and release
of Sopris Capital Advisors LLC.
The Second Amended Plan incorporates modifications with respect
to the treatment of certain claims, including:
* Class 2 Other Secured Claims will be paid in full in cash;
* Class 3 First Lien Claims will be allowed for
US$598,501,500 as of Feb. 1, 2008 plus:
(i) reimbursement obligations of up to US$23,500,000
with respect to synthetic letters of credit;
(ii) interest and fees payable from February 1, 2008,
through and including the effective date of the
Plan;
(iii) fees and expenses payable to the First Lien Agents;
and
(iv) contingent and unliquidated claims arising under the
First Lien Credit Facility, including for
indemnification.
* Class 4 Second Lien Claims will be allowed for
US$191,486,419, as of Feb. 1, 2008, plus interest payable,
and fees and expenses payable to the Administrative and
Second Lien Collateral Agents. The Sopris Second Lien
Claims will be deemed allowed in the amount of
US$72,235,000 as of the Petition Date plus accrued and PIK
Interest.
The Class 3 and 4 Claims will not be subject to any avoidance,
reductions, set-off, offset, characterization, subordination,
counterclaims, cross-claims, defenses, disallowance, impairment
or any other challenges under applicable law or regulation by
any Entity.
Class 7 Claims
The modified provision for Class 7A General Unsecured Claims
against Movie Gallery, Inc., provides that so long as the value
of the New Common Stock that would be issued on account of the
Holder's Allowed Class 7A Claims does not exceed 9% of the
amount of the Holder's Allowed Class 7A Claim, at its option,
either:
(1) its Pro Rata share of 0.596% of the Unsecured Claim
Equity Allocation, its Pro Rata share of 0.6% of the
Warrants and its Pro Rata share of 0.6% of the Litigation
Trust Distributions; or
(2) in exchange for assigning to Sopris the Holder's Allowed
Class 7A Claim and making the Cash-Out Election, US$5 of
Cash per share of New Common Stock that would have been
issued on account of the Cash-Out Elector's Allowed
Claims participating in the Cash-Out Election, had the
Holder not made the Cash-Out Election, or less per share
due to dilution in accordance with the Plan if the Cash-
Out Electors' Aggregate Equity Allocation exceeds
2,000,000 shares of New Common Stock.
If the value of the New Common Stock that would be issued on
account of the Holder's Allowed Class 7A Claims exceeds 9% of
the amount of the Holder's Allowed Class 7A Claims, at its
option, either:
(1) shares of New Common Stock with an Implied Plan Value of
9% of the amount of its Allowed Class 7A Claim and its
Pro Rata share of 0.6% of the Warrants and its Pro Rata
share of 0.6%the portion of the Litigation Trust
Distributions, subject to reduction in accordance with
the Plan; or
(2) in exchange for assigning to Sopris the Holder's Allowed
Class 7A Claim and making the Cash-Out Election, the
lesser of (i) US$5 of Cash per share of New Common Stock
that would have been issued on account of the Cash-Out
Elector's Allowed Claims participating in the Cash-Out
Election had the Holder not made the Cash-Out Election or
(ii) Cash equal to 4.5% of the amount of the Holder's
Allowed Class 7A Claims, provided that the amount may be
less due to dilution in accordance with the Plan if the
Cash-Out Elector's Aggregate Equity Allocation exceeds
2,000,000 shares of New Common Stock.
Holders of Allowed Claims in Classes 7A, 7B and 7E are entitled
to (i) vote on the Plan and (ii) assign their Allowed Claims to
Sopris in exchange for an amount in cash to be paid by Sopris
equal to the cash-out value.
Sopris holds approximately US$174 in principal amount of 11%
Senior Notes, which is approximately 54% of the aggregate amount
of 11% Senior Notes outstanding.
Operation of Cash-Out Election
In exchange for assigning to Sopris and making the Cash-Out
Election, holders of allowed Class 7A, Class 7B General
Unsecured Claims against Movie Gallery US, LLC, Class 7E General
Unsecured Claims and 9.625% Senior Subordinated Note Claims
against Hollywood Entertainment Corporation will receive the
lesser of US$5 of cash per share of new common stock.
In the event that the cash-out electors' aggregate equity
allocation exceeds 2,000,000 shares of new common stock, each
elector will receive an amount of cash equal to the product of
the number of shares of new common stock that would have
been issued on account of the allowed claim, multiplied by the
cash-out maximum value.
In no circumstance will the amount of cash made available to
cash-out electors exceed US$10,000,000.
The amount of cash available to cash-out electors on account of
allowed claims in Class 7A is no more than 4.5% of the claims,
and may be less if the electors’ aggregate equity allocation
exceeds 2,000,000 shares.
The Debtors also noted that the commitment by Sopris to fund the
Cash-Out Election up to the cash-out maximum value, allows the
Debtors to obtain financing to make payments or distributions.
Rights Offering
The Plan contemplates that the Debtors will raise US$50,000,000
through the Rights Offering, which offering the Debtors will
consummate on the Plan Effective Date. Each Rights Offering
participant will have the opportunity to purchase the number of
Rights Offering shares equal to its pro rata ownership of the
11% Senior Notes.
The Rights Offering will dilute the new common stock issued on
account of allowed Class 6 and Class 7 Claims under the Plan,
and will be fully backstopped by Sopris in accordance with the
Backstop Rights Purchase Agreement. In return for its backstop
commitment, Sopris will receive the Rights Offering Commitment
Fee Equity Allocation.
In addition, under the Second Amended Plan, Sopris will convert
the Debtors’ outstanding US$325,000,000 11% Senior Notes into
equity, including approximately US$174,000,000 held by Sopris.
Sources of Cash for Plan Distributions
All consideration necessary for the Reorganized Debtors to make
payments or distributions pursuant to the Plan will be obtained
from the Exit Facility, the Rights Offering, the commitment by
Sopris to fund the Cash-Out Election up to the Cash-Out Maximum
Value, the Litigation Trust Recovery Proceeds or other Cash from
the Debtors, including Cash from operations.
"The Sopris Release"
Each holder of a claim who receives a distribution under the
plan will fully discharge and release Sopris and its affiliates
from any and all causes of action arising from or related in any
way to the debtors, the Chapter 11 cases, the Plan, the Rights
Offering or the Cash-out Election.
The "Sopris Release," however, will not operate to waive or
release any causes of action arising from obligations preserved
under the Plan, the Lock Up Agreement and the Plan Support
Agreement, the amended and restated First Lien Credit Agreement
and Second Lien Credit Agreement.
The "Sopris Release" will not apply in any action brought by the
U.S. Securities and Exchange Commission in exercise of its
police and regulatory powers. The SEC is deemed to have opted
out of the release provided.
A full-text copy of Movie Gallery's Second Amended Plan is
available for free at:
http://researcharchives.com/t/s?283c
A full-text copy of Movie Gallery's Disclosure Statement to the
Second Amended Plan is available for free at:
http://researcharchives.com/t/s?283d
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. It operates over 4,600 stores in the United
States, Canada, and Mexico under the Movie Gallery, Hollywood
Entertainment, Game Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, is the Debtors' local counsel. The Debtors'
claims & balloting agent is Kutzman Carson Consultants LLC.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000.
The Official Committee of Unsecured Creditors has selected
Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B.
Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl &
Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at
Miles & Stockbridge PC, as its local counsel.
The Debtors' spokeswoman Meaghan Repko said that the company
does not expect to exit bankruptcy protection before the second
quarter of 2008. The Debtors have until June 13, 2008 to file
their plan of reorganization. (Movie Gallery Bankruptcy News
Issue No. 20; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
MOVIE GALLERY: Wants US$4.7MM Employee Incentive Plan Approved
--------------------------------------------------------------
Movie Gallery Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Eastern District of Virginia to approve
their Key Employee Incentive Plan, operating under two
components, the Management Incentive Plan and the Supplemental
Incentive Plan.
The Management Incentive Plan which provides a potential bonus
computed -- in a similar manner to the Debtors' historical bonus
plan -- based on a percentage of each participant's salary, to
be awarded if the Debtors achieve certain levels of earnings
before interest, taxes, depreciation and amortization. The
bonus is computed and awarded on a quarterly or semi-annual
basis depending upon the participant's position.
On the other hand, the Supplemental Incentive Plan provides a
bonus computed as a percentage of earnings to be awarded to
after June 30, 2008, to participants who have satisfied the
tailored objectives established accordingly.
The Management Incentive Plan
The Management Incentive Plan is designed to incentivize
eligible employees to help the Debtors maximize EBITDA on
specific targets incorporated in the Debtors' 2008 forecast.
For participants at the senior vice president level and above,
the Management Incentive Plan is a semi-annual plan with a bonus
period that commences on January 7 and ends on July 6, based on
the Debtors' fiscal calendar.
For participants at the vice president level and below, the
Management Incentive Plan is a quarterly plan with the first
bonus period commencing on January 7 and ending on April 6; and
the second bonus period commencing on April 7 and ending on
July 6.
Bonus payments are calculated by multiplying (i) the
participant's actual earnings for the bonus period, by (ii) the
applicable bonus percentage based on each participant's title,
which ranges from 60% for executive vice presidents and above to
8.5% for supervisors, by (iii) the adjustment based on the level
of EBITDA achieved, which ranges from 150% for 112.5% of target
EBITDA, to 0% for senior vice president level participants and
above, and 50% for vice president level participants and below
for 87.5% of target EBITDA.
A straight-line amortization in between the percentages for
EBITDA achievements is between the ranges. If the Debtors do
not achieve at least 87.5% of Target EBITDA, no bonus will be
paid.
All salaried full-time, non-temporary employees in corporate
cost centers are eligible for the Management Incentive Plan.
The semi-annual cost for the Management Incentive Plan is
approximately US$3,200,000 if the Debtors meet the Target EBITDA
amounts, which is estimated to include approximately 400
employees.
The Supplemental Incentive Plan
The Supplemental Incentive Plan is designed to incentivize
eligible employees to meet tailored performance goals and ensure
that the Debtors meet their overall restructuring goals.
The Supplemental Incentive Plan includes key salaried and
hourly, full-time employees at the vice president level and
below who are in positions that are important to the Debtors'
ongoing business, including support center and distribution
center personnel and District Managers and above in field
operations.
Given the roles of these individuals, the Debtors believe the
Supplemental Incentive Plan does not include any insiders, as
defined by Section 503(c) of the Bankruptcy Code. Eligible
employees will be offered a Supplemental Incentive Plan bonus of
up to 20% of the employee's actual earnings during the bonus
period.
The bonus period for the Supplemental Incentive Plan is from
January 7 to June 30, 2008.
Eligible employees will be offered a Supplemental Incentive Plan
bonus of up to 20% of the employee's actual earnings during the
bonus period, and the maximum bonus to any individual employee
will not exceed US$20,000.
Once employees have been identified to receive a Supplemental
Incentive Plan award, appropriate performance objectives
relating to the reorganization or other critical business
initiatives will be formulated. Incentive payouts will depend
on each participant's successful achievement of the stated
objectives.
The Supplemental Incentive Plan will be considered for employees
who meet one or more of the these criteria:
(a) fulfill unique and/or critical job duties, including
specialized technical skills;
(b) provide leadership skills within one or multiple
departments;
(c) the voluntary separation of the employees would put the
organization and its significant initiatives at risk;
(d) replacing the employees would require the use of external
agencies with associated fees; and
(e) are at significant risk of being hired away from the
Debtors.
The Supplemental Incentive Plan payments are capped at
US$1,500,000 which is estimated to include approximately 400
employees.
Marc J. Carmel, Esq., at Kirkland & Ellis LLP, in New York,
maintains that the KEIP creates a fair, objective and
incentive-based compensation structure for their employees that
aligns employee interests with those of the Debtors'
stakeholders to encourage maximum effort and performance during
the restructuring process.
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. It operates over 4,600 stores in the United
States, Canada, and Mexico under the Movie Gallery, Hollywood
Entertainment, Game Crazy, and VHQ banners.
The company and its debtor-affiliates filed for Chapter 11
protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849
to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and
Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the
Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq.,
at Kutak Rock LLP, is the Debtors' local counsel. The Debtors'
claims & balloting agent is Kutzman Carson Consultants LLC.
When the Debtors' filed for protection from their creditors,
they listed total assets of US$891,993,000 and total liabilities
of US$1,419,215,000.
The Official Committee of Unsecured Creditors has selected
Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B.
Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl &
Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at
Miles & Stockbridge PC, as its local counsel.
The Debtors' spokeswoman Meaghan Repko said that the company
does not expect to exit bankruptcy protection before the second
quarter of 2008. The Debtors have until June 13, 2008 to file
their plan of reorganization. (Movie Gallery Bankruptcy News
Issue No. 20; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)
=================
N I C A R A G U A
=================
SOLERA HOLDINGS: Improved Capital Cues S&P to Up Rating to BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating and senior secured debt ratings to 'BB-' from 'B+' on
Solera Holdings Inc. The outlook is stable. The raised rating
reflects the company's meaningful improvement in credit metrics,
largely supported by strong operating results in both of the
company's core segments. The company's operating lease-adjusted
leverage has declined to around 4.0 from above 6.5 at December
2006.
"The ratings on Solera reflect its relatively narrow product
focus within both the mature North America marketplace as well
as the higher-growth in Europe, Middle East, and Africa (EMEA)
and Asia markets. Also factoring into the rating is the
company's improved, but still aggressive, capital structure,"
said S&P's credit analyst Clay Ching. "These aspects are in
part offset by a largely recurring revenue base, well-
established customer relationships, and solid operating
margins."
S&P expects EBITDA margins to remain at the current levels in
the mid-30% area with possible expansion occurring from scale
benefits and operating cost structure efficiencies. During the
six months ended December 2007, Solera Holdings generated
approximately US$38 million in free operating cash flow. Given
modest capital expenditures and limited working capital needs,
s&P expects the company to continue to generate moderate free
operating cash flow. Operating lease-adjusted total debt to
EBITDA is about 4.0, which is an appropriate level for the
current rating. Discretionary cash flow used for debt
reduction, along with modest growth in EBITDA, is expected to
drive continued improvement in leverage over time.
Headquarted in San Diego, California, Solera Holdings Inc.
(NYSE: SLH) -- http://www.solerainc.com/-- is a global provider
of integrated software, information, and workflow management
systems designed to support activities within the automotive
claims process. Solera has operations in 51 countries across
six continents. The Solera companies include Audatex Holdings
in the U.S., Canada, and in more than 45 additional countries,
Informex in Belgium, Sidexa in France, ABZ in The Netherlands,
Hollander serving the North American recycling market, and IMS
providing medical review services.
It has Latin America operations in Brazil, Colombia, Costa Rica,
Ecuador, El Salvador, Dominican Republic, Ecuador, El Salvador,
Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto Rico and
Venezuela.
====================
P U E R T O R I C O
====================
ADVANCED MEDICAL: To Reduce Workforce by 150 Positions
------------------------------------------------------
To further enhance its global competitiveness, operating
leverage and cash flow, the Board of Directors of Advanced
Medical Optics Inc. on Feb. 12, 2008, committed to an additional
plan to reduce its fixed costs. The additional plan includes a
net workforce reduction of approximately 150 positions, or about
4% of the company's global workforce. In addition, AMO plans to
consolidate certain operations, including the relocation of all
activities at the Irvine plant, to improve its overall facility
utilization.
This additional plan includes workforce reductions and related
expenses, outplacement assistance, facilities-related costs and
accelerated amortization of certain long-lived assets.
AMO expects to complete these additional activities in 2008 and
estimates the total non-recurring pre-tax charges resulting from
the additional plan to be in the range of US$25.0 million to
US$30.0 million, substantially all of which will be incurred in
2008. The significant majority are expected to be cash
expenditures.
On Dec. 18, 2007, the company disclosed that it would relocate
its femtosecond laser manufacturing operations from the Irvine
plant to its excimer laser and phacoemulsification manufacturing
facility in Milpitas, California, as well as the the assembly of
IntraLase disposable patient interfaces from the Irvine plant to
AMO's facility in Puerto Rico.
About Advanced Medical
Headquartered in Santa Ana, Calif., Advanced Medical Optics
-- http://www.amo-inc.com/-- develops, manufactures and markets
ophthalmic surgical and contact lens care products. AMO employs
employs approximately 4,200 worldwide. The company has
operations in 24 countries and markets products in approximately
60 countries. The company has operations in Germany, Japan,
Ireland, Puerto Rico and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 12, 2007, Moody's Investors Service downgraded Advanced
Medical Optics, Inc.'s Corporate Family Rating and Probability
of Default Rating to B2 from B1. The rating outlook was revised
to stable. Ratings hold to date.
ANGIOTECH PHARMA: Posts US$21.2-Mln Net Loss in 2007 Fourth Qtr.
----------------------------------------------------------------
Angiotech Pharmaceuticals Inc. reported a US$21.2 million net
loss for the quarter ended Dec. 31, 2007, compared to a US$11.7
million net loss in the same period for the previous year. For
the full fiscal year ended Dec. 31, 2007, the company incurred a
net loss of US$59.3 million compared to a US$4.6 million net
income in 2006.
Total revenues generated for the 2007 fourth quarter are
US$71.3 million compared to the revenues generated for the 2006
fourth quarter at US$US$93.21 million. For the fiscal year
2007, total revenues are US$287.7 million, in comparison with
US$US$315.1 million total revenues for fiscal 2006.
As of Dec. 31, 2007, the company's balance sheet reflected total
assets of US$1.15 billion, total debts of US$0.7 billion, and a
total stockholder's equity of US$0.4 billion.
"Throughout 2007, we continued to build our business with the
launch of new products, the receipt of regulatory approvals, and
the establishment of new partnerships," Dr. William Hunter,
president and chief executive officer of Angiotech, said. "We
expect our new product pipeline and our portfolio of innovative
currently marketed products to provide growth and opportunity in
2008 and beyond."
"With our expanded sales and marketing team in place and many of
our reorganization activities completed, we believe that we are
well positioned to achieve our targets for sales growth and
gross margin improvements in the coming year," Tom Bailey, chief
financial officer of Angiotech, said. "We are confident that
during 2008 we will begin to realize returns on the various
investments we have made in our business over the last two
years."
About Angiotech
Based in Vancouver, British Columbia, Angiotech Pharmaceuticals
Inc. (NASDAQ: ANPI, TSX: ANP)-- http://www.angiotech.com/-- is
a pharmaceutical and medical device company with over 1,500
dedicated employees. Angiotech discovers, develops and markets
innovative treatment solutions for diseases or complications
associated with medical device implants, surgical interventions
and acute injury. The company has several specialized direct
sales and distribution organizations in Puerto Rico, the United
States, the United Kingdom, Denmark and Switzerland, as well as
significant manufacturing capabilities.
* * *
As reported in the Troubled Company Reporter on Jan. 3, 2008,
Standard & Poor's Ratings Services affirmed the ratings,
including the 'B-' long-term corporate credit rating, on
Vancouver-based Angiotech Pharmaceuticals Inc. and removed them
from CreditWatch with negative implications, where they were
placed Oct. 22, 2007. The outlook is negative.
CELESTICA INC: To Hold Annual Shareholders' Meeting on April 24
---------------------------------------------------------------
The Annual General Shareholders' Meeting of Celestica Inc. will
be held on Thursday, April 24, 2008 at 10:00 a.m. Eastern at the
Dominion Club, 1 King Street West, Toronto, Ontario.
Celestica also set Friday, March 14, 2008, as the record date
for determining shareholders of the company who are entitled to
vote at the meeting. Shareholders will receive the company's
proxy statement and related materials in late March.
Headquartered in Toronto, Celestica Inc. (NYSE:CLS) --
http://www.celestica.com/-- provides innovative electronics
manufacturing services to companies in the computing,
communications, consumer, industrial, and aerospace and defense
end markets. As reported in the Troubled Company Reporter on
Feb. 5, 2008, Celestica reported net loss on a generally
accepted accounting principles basis for the fourth quarter of
US$11.7 million compared to GAAP net loss of US$60.8 million for
the same period last year.
Celestica operates a highly sophisticated global manufacturing
network with operations in Brazil, China, Ireland, Italy, Japan,
Malaysia, Philippines, Puerto Rico, and the United Kingdom,
among others.
* * *
Moody's Investors Service placed Celestica Inc.'s corporate
family and probability of default ratings at 'B1' in May 2007.
The ratings still hold to date with a negative outlook.
SUNCOM WIRELESS: Gets Majority Consent From Senior Noteholders
--------------------------------------------------------------
SunCom Wireless Inc., a subsidiary of SunCom Wireless Holdings
Inc., received, as of 5:00 p.m., New York City time, on
Feb. 14, 2008, consents from holders of approximately
US$686,515,000, representing receipt of consents from a majority
of the principal amount held by holders other than certain
significant holders that SunCom has chosen to treat as
affiliates for purposes of the consent solicitation, of SunCom's
outstanding 8-1/2% Senior Notes due 2013 pursuant to its consent
solicitation for the Notes.
SunCom has notified The Bank of New York, trustee under the
indenture governing the Notes, that it has received the
Requisite Consents, terminating the revocation rights of holders
who had delivered their consents prior to the Trustee
Notification.
As a result of the receipt of the Requisite Consents, SunCom
entered into a supplemental indenture incorporating the proposed
amendments. The supplemental indenture provides that, upon the
closing of the proposed merger between SunCom Holdings and a
subsidiary of T-Mobile USA Inc. and the payment by SunCom of the
consent payment to holders of Notes who validly delivered their
consent prior to the Expiration Time, substantially all the
existing requirements will be eliminated for SunCom to provide
periodic reports and financial statements and SunCom's
compliance certificate obligations will be limited to the
requirements set forth in the Trust Indenture Act.
Upon the consummation of the Merger and other conditions
described in the consent solicitation statement being met or
waived, SunCom will promptly pay a consent payment to each
holder who delivered a consent prior to the Expiration Time.
The consent payment will be in the amount of US$1 for each
US$1,000 principal amount of Notes with respect to which such
holder validly delivered a consent.
Citi acted as solicitation agent and Global Bondholder Services
acted as the information agent and tabulation agent for the
consent solicitation.
About Suncom Wireless Holdings Inc.
Based in Berwyn, Pennsylvania, SunCom Wireless Holdings Inc.
(NYSE:TPC) -- http://www.suncom.com/-- provides digital
wireless communications services in the southeastern United
States, Puerto Rico and the United States Virgin Islands. The
company operates a wireless communications network covering
approximately 4.1 million potential customers in Puerto Rico and
the United States Virgin Islands. The Company provides wireless
communications services under the SunCom Wireless brand name.
* * *
Standard & Poor's placed Suncom Wireless Holdings Inc.'s long-
term foreign and local issuer credit ratings at 'B-' in
September 2007. The ratings still hold to date.
===============================
T R I N I D A D & T O B A G O
===============================
HERCULES OFFSHORE: S&P Says Rating Unaffected by Jackup Rigs Buy
----------------------------------------------------------------
Standard & Poor's Ratings Services disclosed that the ratings on
contract drilling firm Hercules Offshore Inc. (BB-/Stable/--)
would not be affected by the company's Feb. 15, 2008,
announcement of a definitive agreement to buy three jackup
drilling rigs and related equipment from Transocean Inc. for
US$320 million. S&P expects that Hercules will acquire these
rigs through a combination of cash and debt (US$80 million to
US$100 million in revolving credit facility borrowings) that
should not materially affect its leverage. Even though the
transaction improves the company's fleet quality, S&P recognizes
that the jackup market is inherently cyclical. Significant
increases in debt or worse-than-expected operating performance
could cause S&P to lower the ratings.
Headquartered in Houston, Texas, USA, Hercules Offshore, Inc.
(Nasdaq: HERO) provides shallow-water drilling and lift boat
services to the oil and natural gas exploration and production
industry in the United States Gulf of Mexico and
internationally. It operates a fleet of 33 jackup rigs, 27
barge rigs, 65 liftboats, three submersible rigs, one platform
rig and a fleet of marine support vessels. Its services are
organized in four segments, Domestic Contract Drilling Services,
International Contract Drilling Services, Domestic Marine
Services and International Marine Services. The company's
Domestic Contract Drilling Services and Domestic Marine Services
are conducted in the United States Gulf of Mexico, its
International Contract Drilling Services are conducted offshore
Qatar and India, and its International Marine Services are
conducted in West Africa. The company also has operations in
Venezuela, Trinidad and Mexico.
=================
V E N E Z U E L A
=================
CHRYSLER LLC: Court Denies Equipment Pull-Out From Plastech
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Michigan
denied Chrysler LLC's request to pull out tooling equipment from
Plastech Engineered Products Inc. and its debtor-affiliates'
plants.
The decision came after a two-day hearing last week, with
Chrysler and Plastech presenting their cases about the tooling
dispute.
Chrysler spokesperson, Kevin Frazier, commented, "We are
obviously disappointed with this decision. We cannot provide
further information at this time. However, we will continue to
work with all parties to ensure that our plants continue to
receive deliveries of parts."
As reported in the Troubled Company Reporter on Feb. 14, 2008,
the Debtors opposed Chrysler's request for lifting of the
automatic stay that would allow it to take possession of the
tooling. If Chrysler's proposal is granted, the Debtors
contended, they would immediately lose approximately 15% of
their annual revenues, considering that Chrysler accounts for
about US$200,000,000 of Plastech's annual revenues.
In addition, the Debtors argued that Chrysler has no right to
take the tooling equipment away, since pursuant to their
financial accomodation agreements, the tooling is property of
the Debtors' estate.
As reported in the Troubled Company Reporter on Feb. 15, 2008,
Chrysler LLC reacted to Plastech's argument that the tooling
equipment is property of the estate. Chrysler argued that the
objections of the Debtors and various of the Debtors' lenders,
which share a common theme -- that Chrysler's entitlement to
possession of the Tooling is somehow conditioned on Chrysler
proving "ownership" of the Tooling -- miss the mark.
"Possession of the Tooling, not ownership, is the issue before
the Court," Chrysler's counsel argued.
Representatives for General Motors Corp. and Ford Motor Co. as
well as for auto supplier Johnson Controls Inc. told the Court
that they believe Chrysler has the right to reclaim their own
equipment under their contracts with Plastech.
About Plastech
Based in Dearborn, Michigan, Plastech Engineered Products, Inc.
-- http://www.plastecheng.com/-- is full-service automotive
supplier of interior, exterior and underhood components. It
designs and manufactures blow-molded and injection-molded
plastic products primarily for the automotive industry.
Plastech's products include automotive interior trim, underhood
components, bumper and other exterior components, and cockpit
modules. Plastech's major customers are General Motors, Ford
Motor Company, and Toyota, as well as Johnson Controls, Inc.
Plastech is a privately held company and is the largest family-
owned company in the state of Michigan. The company is
certified as a Minority Business Enterprise by the state of
Michigan. Plastech maintains more than 35 manufacturing
facilities in the midwestern and southern United States. The
company's products are sold through an in-house sales force.
The company and eight of its affiliates filed for Chapter 11
protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08-
42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher &
Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C.,
represent the Debtors in their restructuring efforts. The
Debtors chose Jones Day as their special corporate and
litigation counsel. Lazard Freres & Co. LLC serves as the
Debtors' investment bankers, while Conway, MacKenzie & Dunleavy
provide financial advisory services. The Debtors also employed
Donlin, Recano & Company as their claims and noticing agent.
An Official Committee of Unsecured Creditors has been appointed
in the Debtors' cases.
As of Dec. 31, 2006, the company's books and records
reflected assets totaling US$729,000,000 and total liabilities
of US$695,000,000.
About Chrysler LLC
Based in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter on Nov. 12, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Chrysler LLC and DaimlerChrysler Financial
Services Americas LLC and removed it from CreditWatch with
positive implications, where it was placed Sept. 26, 2007. S&P
said the outlook is negative.
CHRYSLER LLC: To Exceed Recovery Plan on All Key Metrics
--------------------------------------------------------
Chrysler LLC is bound to surpass its recovery plan "on virtually
all key metrics" according to an e-mailed statement by Cerberus
Capital Management LP on Friday, Terry Kosdrosky writes for The
Wall Street Journal.
Cerberus expressed confidence on its capital infusion in
Chrysler and complimented on the leadership of chief executive
Robert Nardelli and co-presidents Tom LaSorda and Jim Press, WSJ
notes.
Cerberus said that Chrysler will "fare just fine" with its US$8
billion cash, but continued to warn investors of the risks, WSJ
relates. Cerberus also said that GMAC LLC has "strong long-term
prospects," WSJ adds. These compliments came amid the financial
pressures that Chrysler and GMAC are facing due to the crisis in
the U.S. economy, WSJ notes. Cerberus founder Stephen Feinberg,
WSJ relates, had informed shareholders late last month about the
risks involving the two companies.
Difficulty Warning for GMAC
GMAC struggled with the decline in the U.S. housing industry and
financial markets and reported a US$724 million loss during the
last quarter of 2007.
As reported in the Troubled Company Reporter on Feb. 18, 2008,
founder of Cerberus Capital warned investors of possible
"substantial difficulty" in GMAC, the auto and mortgage lender
controlled by Cerberus. Mr. Feinberg wrote in a Jan. 22 letter
to investors that while Cerberus has "detailed contingency plans
in a continuing worsening environment . . . if the credit
markets continue to decline and we find ourselves in a prolonged
environment of capital market shutdown, GMAC could run into
substantial difficulty." The letter outlines worst-case
scenarios for investors, according to Cerberus partner Tim
Price.
About Cerberus Capital
Cerberus Capital Management LP --
http://www.cerberuscapital.com/-- is a private investment firms
that provides both financial resources and operational expertise
to undervalued companies. Cerberus is headquartered in New York
City with affiliates and advisory offices in Atlanta, Chicago,
Los Angeles, London, Baarn, Frankfurt, Tokyo, Osaka and Taipei.
Cerberus holds controlling or significant minority interests in
companies around the world, including 80.1% stake in Chrysler
LLC bought in 2007 from Daimler AG. Cerberus was also the lead
investor of a group that acquired 51% of GMAC, the financing arm
of General Motors. In aggregate, these companies currently
generate over US$60 billion in annual revenues.
About GMAC
GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors
Acceptance Corporation, is a global, diversified financial
services company that operates in approximately 40 countries in
automotive finance, real estate finance, insurance and other
commercial businesses. GMAC was established in 1919 and employs
approximately 26,700 people worldwide.
About Chrysler LLC
Based in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
As reported in the Troubled Company Reporter on Nov. 12, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Chrysler LLC and DaimlerChrysler Financial
Services Americas LLC and removed it from CreditWatch with
positive implications, where it was placed Sept. 26, 2007. S&P
said the outlook is negative.
PETROLEOS DE VENEZUELA: English Court Wants Freeze Compliance
-------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA must
comply with the England High Court's order that freezes the
firm's assets or be accused of contempt of court, El Universal
reports, citing a notice accompanying the court's order, which
was issued on Jan. 24.
As reported in the Troubled Company Reporter-Latin America on
Feb. 11, 2008, that Petroleos de Venezuela is barred from taking
or disposing of up to US$12 billion in petroleum assets
worldwide after courts in Britain and the U.S. ordered freezing
of those assets.
According to El Universal, the notice says that Petroleos de
Venezuela could be fined or its assets may be subject to a lien.
The notice warns that "any other individual who has been advised
of this order and may take any action to help or allow the
defendant to infringe the terms of the order, may be in contempt
of court and may be sent to prison, imposed a fine or his/her
assets may be subject to a lien."
El Universal relates that the freezing of assets is applicable
to:
-- assets owned by Petroleos de Venezuela, and
-- assets Petroleos de Venezuela jointly owns.
The report says that the court order refers to:
-- Nynas Limited,
-- Eastham Refinery Limited,
-- Nynas Bitumen Limited,
-- Bitor Energy,
-- Bitor Europe Limited,
-- the assets of Nynas' branch in the U.K.,
-- the stake Nynas UK owns under a leasing agreement
of the Dundee refinery (Scotland), and
-- any sums credited to any bank account held by
Petroleos de Venezuela in any corporation it may
own directly or indirectly.
Other sums in accounts Petroleos de Venezuela has abroad have
not been frozen, El Universal notes, citing sources. The
freezing of assets may stop once Petroleos de Venezuela
guarantees the bond through payment of US$12 billion to the
court or by any other means that may be agreed upon with the
complainant, El Universal states. Experts told El Universal
that the court order doesn't intend to harm the daily operations
of Petroleos and its affiliates.
Petroleos de Venezuela's legal representatives will seek to
annul the freezing order, El Universal says, citing sources.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
To date, Petroleos de Venezuela SA carries Fitch's BB- long term
issuer default rating and local currency long term issuer
default rating. Fitch said the ratings outlook was negative.
PETROLEOS DE VENEZUELA: May Sell 50% Stake in Chalmette Plant
-------------------------------------------------------------
Venezuelan state-run oil firm Petroleos de Venezuela SA's head,
Rafael Ramirez, told news agency Agencia Bolivariana de Noticias
that the company could sell its 50% stake in the Chalmette
plant.
According to ABN, Petroleos de Venezuela operates the Chalmette
plant with Exxon Mobil.
Business News Americas relates that the plant was not affected
when Petroleos de Venezuela decided to stop making oil sales to
Exxon Mobil. BNamericas notes that Petroleos de Venezuela had
said that the suspension of oil shipments wouldn't affect joint
operations with Exxon Mobil outside Venezuela.
An Exxon Mobil spokesperson commented to BNamericas, "The
Chalmette refinery is continuing to operate as usual and
continues to meet customer needs."
Mr. Ramirez told Reuters that the assets that Exxon Mobil held
in Venezuela's Cerro Negro project are worth less than Petroleos
de Venezuela's holdings in Chalmette. Reuters says that
Chalmette received most of the oil exported from the Cerro
Negro.
Venezuela could be arranging a deal to give Exxon Mobil its
Chalmette assets as compensation for its Cerro Negro assets,
Reuters says, citing analysts.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
To date, Petroleos de Venezuela SA carries Fitch's BB- long term
issuer default rating and local currency long term issuer
default rating. Fitch said the ratings outlook was negative.
PETROLEOS DE VENEZUELA: Workers' Strike Halts Boscan Operations
---------------------------------------------------------------
A workers' protest has suspended operations at the Boscan
oilfield, which is run by Venezuelan state-run oil firm
Petroleos de Venezueal SA's joint venture Petroboscan, El
Universal reports.
Business News Americas relates that the protest started Feb. 18.
Petroleos de Venezuela's head, Rafael Ramirez, told El Universal
that 200 oil employees picketed on the road to Boscan. About
750 workers weren't able to work due to the protest. "The field
has been shut down and not producing anything," a union leader
told El Universal.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
To date, Petroleos de Venezuela SA carries Fitch's BB- long term
issuer default rating and local currency long term issuer
default rating. Fitch said the ratings outlook was negative.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marie Therese V. Profetana, Sheryl Joy P. Olano,
Rizande de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
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Information contained herein is obtained from sources believed
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