/raid1/www/Hosts/bankrupt/TCRLA_Public/080306.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, March 6, 2008, Vol. 9, No. 47
Headlines
A R G E N T I N A
DANA CORP: Allowed Unsecured Claims Total US$2 Billion
DELTA AIR: Bell Atlantic Appeals TIA/SLV Claims Disallowance
DELTA AIR: Ten Retirees Seek Allowance of 'Look Back' Claims
DELTA AIR: Wants Until October 21 to Resolve Disputed Claims
GIRASOLES DEL CAMPO: Files for Reorganization in Court
GLOBAL CROSSING: To Provide IP Telephony Service to HM Revenue
INELMINDA SAICIFA: Files for Reorganization in Court
LEAR CORP: Court Allows Amended Complaint Over US$2 Bln Sale
LOGISTICA Y TRANSPORTE: Individual Report Submission on June 16
MARIO CORDANI: Proofs of Claim Verification Deadline is April 10
MPM OBRAS: Proofs of Claim Verification Deadline is April 18
PAGLIETTINI SA: Files for Reorganization in Court
SANTANDER RIO: Sees Up to 30% Growth in Lending This Year
SCO GROUP: Disclosure Statement Hearing Set For April 2
SCO GROUP: Payment in Full to All Creditors Under Plan
B E R M U D A
SCOTTISH RE: Amends Employment Terms of CEO and CFO
B O L I V I A
COEUR D'ALENE: M. Krebs Replaces J. Sabala as Sr. Vice Pres.-CFO
B R A Z I L
ABITIBIBOWATER INC: Incurs US$250MM Net Loss in Fourth Quarter
ABITIBIBOWATER INC: Seeks to Finance Debts Maturing in 2nd Qtr.
BANCO BRADESCO: Shareholders to Vote on Further Capital Increase
BANCO DO BRASIL: May Purchase Financial Institutions
BANCO DO BRASIL: Previ Reports BRL18 Billion Record Surplus
BANCO NACIONAL: Infrastructure Up 62% to BRL25.8 Billion
BANCO NACIONAL: Okays BRL355 Million Loan to Coelce
DELPHI CORP: Court Extends Deadline to Remove Civil Actions
DELPHI CORP: Court Extends Lease Decision Deadline to March 31
GERDAU SA: Board Okays Shares Issuance Up to BRL2.8 Million
GERDAU SA: To Carry Out Public Primary Share Offering
GOL LINHAS: Reports Passenger Statistics for February 2008
JAPAN AIRLINES: Announces Changes in Board Membership
JBS SA: Buys National Beef for US$465MM Cash, US$95MM Stock
JBS SA: Buying Smithfield Foods and Tasman Group for US$713 Mil.
NET SERVICOS: Picks ARRIS to Expand Internet Service in Brazil
SUN MICROSYSTEMS: Teams with SBTVD to Develop Software Solution
TEREX CORP: Closes ASV Purchase for US$488 Million
C A Y M A N I S L A N D S
GUGGENHEIM PARTNERS: Proofs of Claim Filing is Until March 14
GUGGENHEIM PARTNERS INVESTMENT: Claims Filing Ends on March 14
MADISON RIDGE: Proofs of Claim Filing Deadline is March 14
MERLIN BIOMED: Sets Final Shareholders' Meeting for March 14
MERLIN BIOMED OFFSHORE: Final Shareholders' Meeting on March 14
PARMALAT SPA: Increases Fully Paid Up Share Capital to EUR1.6BB
* CAYMAN ISLANDS: Moody's Publishes Annual Report
C H I L E
TECH DATA: Reports US$50.2 Million Net Income in Fourth Quarter
C O L O M B I A
GMAC LLC: Fitch Chips Ratings and Removes Negative CreditWatch
SOLUTIA INC: Posts US$208 Mil. Net Loss for Year Ended Dec. 31
SOLUTIA INC: Provides Status of Adversary Proceedings
SOLUTIA INC: DuPont Disputes Need to Reexamine BDO's Report
C O S T A R I C A
GRUPO M: Adverse Conditions Cue Moody's Ba3 Rating Withdrawal
SIRVA INC: 341 Meeting of Creditors Postponed Until April 20
SIRVA INC: Allowed to Obtain US$150,000,000 of DIP Financing
SIRVA INC: Gets Permission to Use Lenders' Cash Collateral
SIRVA INC: Sells U.K. and Ireland Operations to TEAM Group
D O M I N I C A N R E P U B L I C
TRICOM SA: Disclosure Statement Hearing Scheduled on April 15
E C U A D O R
PETROECUADOR: Lifts Force Majeure on Oil Exports
PETROECUADOR: To End Renegotiation Talks With Petrobras & Repsol
PETROECUADOR: Unit Awards Piping Supply Contracts to Two Firms
G U A T E M A L A
EXIDE TECHNOLOGIES: Moody's Ups US$200MM Credit Facility to Ba3
H A I T I
DYNCORP INT'L: Will Provide Support Services in Philippines
J A M A I C A
AMERICAN AIRLINES: To Launch Kingston-Fort Lauderdale Service
M E X I C O
AMERICAN AXLE: Work Stoppage of UAW Members Still in Effect
BANCO CREDIT: Moody's Assigns D+ Bank Financial Strength Rating
CABLEMAS SA: Moody's Reviews B1 Rating Pending Televisa Approval
DURA AUTOMOTIVE: Court Approves 2008 Annual Bonus Plan
DURA AUTOMOTIVE: Court Okays US$2 Mln Nyloncraft Settlement Pact
MEGA BRANDS: Former Owners Intend to Buy Back RoseArt Division
VISTA GOLD: Expects to Close US$32MM Convertible Note Offering
P E R U
QUEBECOR WORLD: Creditors' Committee Taps Mesirow as Advisor
QUEBECOR WORLD: Creditors' Panel Wants Jefferies & Co. as Banker
QUEBECOR WORLD: Wants Creditor Information Protocol Approved
QUEBECOR WORLD: Woes Cue US$779MM Non-Cash Hit for Quebecor Inc.
P U E R T O R I C O
TERADYNE INC: Daniel Tempesta Resigns as Corporate Controller
UNIVISION COMMS: Asset Sale Proceeds Lower Than Fitch Expected
V E N E Z U E L A
CHRYSLER LLC: Corrects Erroneously Reported US$2.7 Billion Loss
PETROLEOS DE VENEZUELA: Gov't Asks OPEC to Discuss Asset Freeze
- - - - -
=================
A R G E N T I N A
=================
DANA CORP: Allowed Unsecured Claims Total US$2 Billion
------------------------------------------------------
Pursuant to the Third Amended Joint Plan of Reorganization, Dana
Corp. and its debtor-affiliates filed a 38-page list of allowed
unsecured claims, which total US$2,047,009,527.
Wilmington Trust owns a substantial portion of the allowed
claims, the largest of which are:
Claim No. Claimant(Transferee) Allowed Amount
--------- -------------------- --------------
1701 LEXINGTON ANTIOCH LLC (SPCP GROUP) US$7,200,000
11680 AFFINIA GROUP INC (LEHMAN COMMERCIAL) US$12,700,000
1168000001 AFFINIA GROUP (WINDMILL MASTER FUND) US$9,000,000
13650 BEAR STEARNS INVESTMENT - METALDYNE US$9,361,174
14900 SYPRIS TECHNOLOGIES INC US$89,900,000
14903 TOLEDO-LUCAS COUNTY PORT AUTHORITY US$15,000,000
13800001 TOYOTA TSUSHO (TCM ALLOCATION) US$7,519,295
12681 WILMINGTON TRUST COMPANY US$453,510,000
12686 WILMINGTON TRUST COMPANY US$361,501,435
12685 WILMINGTON TRUST COMPANY US$277,743,110
12687 WILMINGTON TRUST COMPANY US$170,441,633
12688 WILMINGTON TRUST COMPANY US$154,550,000
12684 WILMINGTON TRUST COMPANY US$116,148,326
12682 WILMINGTON TRUST COMPANY US$78,279,843
12683 WILMINGTON TRUST COMPANY US$8,773,889
The list of Allowed General Unsecured Claims is available for
free at http://bankrupt.com/misc/Dana_Class5BClaims.pdf
Corrine Ball, Esq., at Jones Day, in New York, noted that to the
extent the holder of any General Unsecured Claim on Allowed
Claims List also holds or asserts any Claim or portion of a
Claim that is not a General Unsecured Claim in Class 5B under
the Plan, that other Claim or portion of a Claim is not included
in the updated Allowed Claims List.
The Reorganized Debtors reserve their rights to amend,
supplement, modify, or correct the updated Allowed Claims List.
The Third Amended Plan projected a 72% to 86% recovery for
general unsecured claims against the Debtors, excluding EFMG
LLC, on an assumption that total general unsecured claims ranged
from US$2,500,000,000 to US$3,000,000,000. Holders of general
unsecured claims will receive cash and stock of Dana Holding
Corp.
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies. Dana
employs 46,000 people in 28 countries. Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total
assets and US$7,665,000,000 in total debts resulting in a total
shareholders' deficit of US$534,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represented the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represented the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.
The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008. Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.
(Dana Corporation Bankruptcy News, Issue No. 71; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2008, Standard & Poor's Ratings Services assigned its
'BB-' corporate credit rating to Toledo, Ohio-based Dana Holding
Corp. following the company's emergence from Chapter 11 on
Feb. 1, 2008. The outlook is negative.
At the same time, Standard & Poor's assigned Dana's US$650
million asset-based loan revolving credit facility due 2013 a
'BB+' rating (two notches higher than the corporate credit
rating) with a recovery rating of '1', indicating an expectation
of very high recovery in the event of a payment default.
In addition, S&P assigned a 'BB' bank loan rating to Dana's
US$1.43 billion senior secured term loan with a recovery rating
of '2', indicating an expectation of average recovery.
DELTA AIR: Bell Atlantic Appeals TIA/SLV Claims Disallowance
------------------------------------------------------------
Bell Atlantic Tricon Leasing Corporation, NCC Golf Company, NCC
Key Company, and NCC Charlie Company notified the U.S.
Bankruptcy Court for the Southern District of New York that they
will take an appeal to the U.S. District Court for the Southern
District of New York from Judge Adlai S. Hardin's order
sustaining the objections of Delta Air Lines, Inc. to certain
claims they asserted for tax indemnities and stipulated loss
values.
Judge Hardin disallowed and expunged:
* Claim Nos. 6182, 6183 and 6185 filed by NCC Key Company as
Owner Participant;
* Claim Nos. 6184, 6216 and 6217 filed by NCC Golf Company as
Owner Participant;
* Claim No. 6186 filed by NCC Charlie Company as Owner
Participant; and
* Claim No. 6215 filed by Bell Atlantic Tricon Leasing
Corporation as Owner Participant.
Judge Hardin ruled that Substitute TIA/SLV Objection 3 is denied
insofar as it relates to Claim Nos. 4703, 4703-1, 4704, 4704-1
and 5335 as originally filed by The Bank of New York as
Indenture Trustee.
The Verizon Entities are owner participants to Tax Indemnity
Agreements involving aircraft with Tail Nos. N121DE, N917DL,
N919DL, N920DL, N921DL, N922DL, N923DL, and N924DL.
The Verizon Entities want the District Court to determine
whether the Bankruptcy Court erred as a matter of law:
(1) in preventing the Entities from taking any discovery with
respect to the meaning and function of the TIA's
exclusion provision;
(2) in holding that the TIA's exclusion provision is
unambiguous and in declining to consider the
uncontroverted extrinsic evidence presented by the
Entities with respect to the meaning of the exclusion
provision of the TIAs;
(3) in refusing to consider any extrinsic evidence as to the
customs and usages of terms in the leveraged aircraft
leasing industry in determining that the exclusion
provision of the TIA is unambiguous;
(4) in reaching its conclusions as to (i) the interest and
objective of Delta in negotiating the TIAs; and (ii) the
expectation and contemplation of the parties who drafted
the TIAs, without admitting or considering any evidence
to support these conclusions;
(5) in holding that the TIAs can be interpreted differently
in the "bankruptcy context" than they would be if
interpreted in accordance with applicable state law and
its rules of contract interpretation;
(6) in disallowing the Entities' TIA claims and in
incorrectly applying the exclusion provision, including
without limitation, by holding that the allowance of, and
distributions on, the Indenture Trustee's claims in
accordance with Delta's confirmed plan constitutes the
"payment" of the claims within the meaning of the
exclusion provision of the TIAs; and
(7) in holding that Delta could satisfy the elements of the
exclusion provision in the TIAs by tendering payment in
kind -- including shares of stock -- of an amount that
was not calculated in compliance with the provisions of
the TIA and the related transaction documents, instead of
paying the full amount of SLV in U.S. Dollars as
required by the applicable contract terms.
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. 91; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 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.
DELTA AIR: Ten Retirees Seek Allowance of 'Look Back' Claims
------------------------------------------------------------
The Delta Pilots' Pension Preservation Organization, Inc., and
four retired pilots sought certification of a purported class
action seeking, among others, approximately US$100,000,000 of
"look back" claims -- Claim Nos. 8601 and 8604 -- that Delta Air
Lines Inc. allegedly disregarded in calculating and scheduling
the non-qualified claims under the settlements approved by the
U.S. Bankruptcy Court for the Southern District of New York.
In November 2007, DP3 withdrew the DP3 Class Action with
prejudice, pursuant to a court-approved stipulation.
According to Timothy E. Graulich, Esq., at Davis Polk &
Wardwell,
in New York, 10 retirees, including three of DP3's Class
claimants, filed individual proofs of claim, "seeking the
allowance of the very same 'look back' claims . . . in the now-
withdrawn DP3 Class Action."
The Claims are:
Claimant Claim No. Claim Amount
-------- --------- ------------
George Baker 8029 US$173,508
John Maguire 8072 34,439
Donald Mairose 8000 98,402
William McGannon 8030 314,482
Roscoe McMillan 8009 188,095
Gary Simmons 8119 966 per month
Herbert Summers 8082 66,906
Robert Turner 8083 126,415
Christopher Waggener 8024 217,843
8592 460,588
David McHenry 8047 expunged
8599 399,709
Claim Nos. 8000 and 8024 have been objected to in the Debtors'
20th and 24th omnibus objections. The Court expunged Claim No.
8047, as objected by the Debtors in their 24th omnibus
objection.
According to Mr. Graulich, the Look Back Claims were filed for
ERISA's "look back rules" that merely determine how the Pension
Benefit Guaranty Corporation will allocate the assets of the
terminated qualified plan among plan participants. The ERISA
rules, Mr. Graulich explains, provides that the PBGC is the only
entity entitled to recover from an employer on account of
unfunded benefit liabilities under the terminated qualified
benefit pension plan.
Mr. Graulich says that there is no legal basis for the Look Back
Claimants to seek non-qualified pension plan claims against
Delta just because they are dissatisfied with their anticipated
qualified plan benefits from the PBGC.
Moreover, the Look Back Claims raise a question of either
federal regulation or federal law; hence, the Look Back
Claimants who assert miscalculations in their qualified benefits
should seek redress from the PBGC in an appropriate non-
bankruptcy forum, Mr. Graulich says.
Mr. Graulich finds that the Look Back Claims are predicated
entirely upon the PBGC's initial calculations that were
preliminary and remain subject to revision based upon a variety
of factors that may well to finalize. Accordingly, the Claims
are fundamentally speculative in nature and therefore must be
expunged, Mr. Graulich says, citing See Pineiro, 318 F. Supp. 2d
67, 73 (S.D.N.Y. 2003).
In addition, Mr. Graulich points out that Messrs. Mairose,
McHenry and Waggener are post-termination covered pilots who
have already been allowed claims pursuant to a Court-approved
Stipulation between the Debtors, the Creditors Committee and
DP3. The Stipulation substantially grants claims of pilots who
retired prior to the termination of non-qualified pension plans.
Specifically, post-termination covered pilots were additional
allowed general non-priority unsecured claims in the aggregate
amount of approximately US$728,000,000, in full satisfaction of
their rights under the NQ Plans, Mr. Graulich explains.
Notably, the Stipulation precluded DP3 and all covered retired
pilots from asserting new claims against Delta with respect to
the termination of the NQ Plans; therefore, the Look Back Claims
of the three pilots are direct violation of the Stipulation, Mr.
Graulich contends.
Mr. Graulich further notes that the global claims settlement
arising from the NQ Plans was the core of the NQ Settlement and
the distribution of cash and Delta shares of common stock to
covered pilots. Delta would have not made the distributions
absent the assurance of a final, comprehensive settlement with
DP3 and the covered pilots, Mr. Graulich tells Judge Adlai
Hardin.
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. 91; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or
215/945-7000).
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 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.
DELTA AIR: Wants Until October 21 to Resolve Disputed Claims
------------------------------------------------------------
Pursuant to Rule 9006(b)(1) of the Federal Rules of Bankruptcy
Procedure, Delta Air Lines Inc. and its debtor-affiliates ask
the U.S. Bankruptcy Court for the Southern District of New York
to further extend their deadline to file objections to various
proofs of claim.
Delta asks for a 180-day extension, or until Oct. 21, 2008, to
attend to the remaining disputed proofs of claim.
The Debtors' current claims objection deadline is
April 24, 2008.
Absent an extension of the present Claims Objection Deadline,
the Debtors would be forced to interrupt ongoing negotiations
and proceedings to file several claims objections in order to
preserve their rights with respect to unresolved claims,
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, in New
York, maintains.
Mr. Huebner relates that in the course of the Debtors' cases,
9,200 proofs of claim aggregating an astronomical US$93,000,000
had to be reviewed, compared to the Debtors' records, or
discussed with claimholders. Certain of the claims, he adds,
are addressed quickly and others that involve complicated issues
and transactions require detailed analysis and lengthy
negotiations.
The Debtors have made progress in resolving disputed claims
through settlement, rejection or otherwise, including:
-- two distributions totaling approximately 278,000,000
shares of New Delta Common Stock have been made under the
Plan on account of 36,000 allowed unsecured claims in the
face amount of US$12,500,000,000;
-- 27 omnibus objections have been filed to more than 6,600
proofs of claim;
-- 6,100 disputed claims have been resolved, with the initial
face value of US$37,000,000,000;
-- three omnibus objections filed with respect to 197 proofs
of claim arising from aircraft-related transactions, and
discovery requests have been served with respect to 111
tax indemnity agreement claims;
-- variations in contract language from the operative
documents of more than 200 aircraft leveraged lease
transactions with respect with respect to TIA claims and
stipulated loss value have been analyzed and categorized;
-- four separate "test case" objections to TIA and SLV claims
have been filed to determine Delta's obligations;
-- a test case objection to TIA claims have been filed based
on language under TIA barring TIA claims after transfer of
beneficial interests;
-- 39 objections have been filed to more than 240 TIA and SLV
claims;
-- 600 aircraft-related, SLV and TIA claims have been
resolved;
-- cash distributions and New Delta Common Stock have been
finalized, calculated and withheld with tax on account of
substantially all of Delta's general unsecured retiree
claims;
-- a US$1,200,000,000 Air Line Pilots Association claim has
been monetized and distributions have been made to all
union-member employees; and
-- more than 30,000 W-2 and 1099 tax forms and retirees
individualized statements have been sent to creditors on
account of their distributions.
Mr. Huebner also reports that although substantial progress has
been made, there are still remaining unresolved claims that need
to be resolved, including (i) approximately 390 non-aircraft
claims representing approximately US$2,400,000,000; (ii) 20
redundant proofs of claim filed by the Internal Revenue Service,
aggregating US$31,800,000,000; and (iii) various TIA and SLV
aircraft claims, which have generated considerable litigation.
Absent an extension of the Claims Objection Deadline, the
Debtors will be forced to file all possible objections to each
remaining TIA claims and SLV claims to protect themselves of
probable TIA/SLV rulings that might be overturned on appeal,
which would constitute an enormous waste of resources, Mr.
Huebner tells Judge Adlai Hardin.
Many large, complex Chapter 11 debtors have spent months or even
years longer in bankruptcy than did the Debtors have required
comparable or substantially longer periods of time to resolve
claims, Mr. Huebner notes, citing In re UAL Corp., et al., Case
No. 02-48191 (Bankr. N.D. Ill.) and In re US Airways Group,
Inc., et al., Case No. 04-13819 (Bankr. E.D. Va.).
Mr. Huebner asserts that the extension will provide adequate
opportunity for the Debtors to complete the process and properly
address thousands of legitimate claimants.
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. 91; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or
215/945-7000).
* * *
As reported in the Troubled Company Reporter on Jan. 17, 2008,
Standard and Poor's said that media reports that Delta Air Lines
Inc. (B/Positive/--) entered into merger talks with UAL Corp.
(B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will
have no effect on the ratings or outlook on Delta, but that
confirmed merger negotiations would result in S&P's placing
ratings of Delta and other airlines involved on CreditWatch,
most likely with developing or negative implications.
GIRASOLES DEL CAMPO: Files for Reorganization in Court
------------------------------------------------------
Girasoles del Campo S.A. has requested for reorganization
approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Girasoles del Campo 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:
Girasoles del Campo S.A.
Avenida Corrientes 2330
Buenos Aires, Argentina
GLOBAL CROSSING: To Provide IP Telephony Service to HM Revenue
--------------------------------------------------------------
Global Crossing Ltd. has disclosed that HM Revenue & Customs
will employ Global Crossing's hosted IP telephony service for
the operation of all its telephony services across the UK,
supporting 85,000 users. The service will be provided through
an OGCbuying.solutions contract. HMRC staff throughout the UK
will gradually migrate to this secure, hosted IP telephony
service.
This telecoms service is security-accredited and provides fully
managed voice, data networking, hosted IP telephony, mobile
working services and value added services. HMRC's move toward a
pan-government, secure hosted IP telephony platform ensures that
the organization is leading the way in the Government's best
practice and realizing the business benefits of a flexible,
managed and secure telephony solution. The IP telephony
platform forms a cornerstone of Global Crossing's next
generation network and Unified Communications strategy within
the UK.
Global Crossing CEO John Legere said, "We're delighted that
we've been chosen for this new contract by one of the largest
government departments in the country to migrate its legacy
telephony network to next generation technology. This
demonstrates Global Crossing's continued commitment to public
sector customers and our ability to transform legacy estates
into converged IP environments. The opportunity to support the
UK Government in its initiative to transform its
telecommunications services by offering secure next generation
hosted IP services to its customers is a core focus in our
support of government business."
Users will benefit from using Global Crossing's hosted IP
telephony offering, Global Crossing Unified Communications(TM),
which provides customers with fully managed hosted IP telephony,
collaboration and messaging solutions over a single, converged
IP network designed to improve productivity, consolidate diverse
systems and maximize efficiencies.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
(NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, and the United Kingdom. Global Crossing
serves many of the world's largest corporations, providing a
full range of managed data and voice products and services. The
company filed for chapter 11 protection on Jan. 28, 2002 (Bankr.
S.D.N.Y. Case No. 02-40188). When the Debtors filed for
protection from their creditors, they listed US$25,511,000,000
in total assets and US$15,467,000,000 in total debts. Global
Crossing emerged from chapter 11 on Dec. 9, 2003.
* * *
At Sept. 30, 2007, Global Crossing Ltd.'s balance sheet showed
total assets of US$2.6 billion, total debts of US$2.7 billion
and a US$74 million stockholders' deficit.
As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Global Crossing Ltd. said in a statement that its
net loss increased 75% to US$89 million in the third quarter
2007, compared to US$51 million in the third quarter 2006.
INELMINDA SAICIFA: Files for Reorganization in Court
----------------------------------------------------
Inelminda S.A.I.C.I.F.A. has requested for reorganization
approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Inelminda 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:
Inelminda S.A.I.C.I.F.A.
Avenida Corrientes 2330
Buenos Aires, Argentina
LEAR CORP: Court Allows Amended Complaint Over US$2 Bln Sale
------------------------------------------------------------
The Delaware Court of Chancery granted a motion for leave to
file a fourth amended complaint in the purported class action
that sought to block Lear Corp.'s acquisition by billionaire
investor Carl Icahn, according to the company's Feb. 15, 2008
form 10-K filing with the U.S. Securities and Exchange
Commission for the quarter ended Dec. 31, 2007.
Between Feb. 9 and Feb. 21, 2007, certain stockholders filed
three purported class action lawsuits against the company,
certain members of our Board of Directors and American Real
Estate Partners, L.P., and certain of its affiliates
(collectively, AREP) in the Delaware Court of Chancery.
The amended complaint in the consolidated action generally
alleges that the Agreement and Plan of Merger with AREP Car
Holdings Corp., and AREP Car Acquisition Corp. unfairly limited
the process of selling Lear and that certain members of our
Board of Directors breached their fiduciary duties in connection
with the Merger Agreement and acted with conflicts of interest
in approving the Merger Agreement.
The amended complaint in the consolidated action further alleges
that Lears preliminary and definitive proxy statements for the
Merger Agreement were misleading and incomplete, and that Lears
payments to AREP as a result of the termination of the Merger
Agreement constituted unjust enrichment and waste.
On Feb. 23, 2007, the plaintiffs filed a motion for expedited
proceedings and a motion to preliminarily enjoin the
transactions contemplated by the Merger Agreement. On March 27,
2007, the plaintiffs filed an amended complaint.
On June 15, 2007, the Delaware court issued an order entering a
limited injunction of Lears planned shareholder vote on the
Merger Agreement until the Company made supplemental proxy
disclosure. That supplemental proxy disclosure was approved by
the Delaware court and made on June 18, 2007.
In June 2007, the Delaware court allowed the plaintiffs to file
a second amended complaint. Later, a third amended complaint
was then filed by the plaintiffs.
On Jan. 30, 2008, the Delaware court granted the plaintiffs
motion for leave to file a fourth amended complaint leaving only
derivative claims against the Lear directors and AREP based on
the payment by Lear to AREP of a termination fee pursuant to the
Merger Agreement. The plaintiffs were also granted leave to
file an interim petition for an award of fees, and expenses
related to the supplemental proxy disclosure.
About Lear Corporation
Based in Southfield, Michigan, Lear Corporation (NYSE:LEA) --
http://www.lear.com/-- supplies automotive interior systems and
components. Lear provides complete seat systems, electronic
products and electrical distribution systems and other interior
products. The company has more than 90,000 employees at 236
facilities in 33 countries.
Lear operates in Europe (France, Czech Republic, United Kingdom,
France, Germany, Hungary, Poland, Portugal, Romania, Russia,
Slovakia, Spain, Sweden), Latin America (Argentina, Mexico, and
Venezuela), and Asia (Singapore, China, India, Japan,
Philippines, South Korea, and Thailand).
* * *
As of March 4, 2008, Lear Corp. carries B2 Corporate Family,
Bank Loan Debt and Probability-of-Default ratings, and B3 Senior
Unsecured Debt rating from Moody's Investors Service, which said
the outlook is stable.
The company also carries B+ Long-Term Foreign and Local Issuer
Credit ratings from Standard & Poor's, which said the outlook is
negative.
LOGISTICA Y TRANSPORTE: Individual Report Submission on June 16
---------------------------------------------------------------
Jorge Roberto Dolinko, the court-appointed trustee for Logistica
y Transporte SA's reorganization proceeding, will present the
validated claims as individual reports in the National
Commercial Court of First Instance No. 7 in Buenos Aires on
June 16, 2008.
Mr. Dolinko will be verifying creditors' proofs of claim until
April 30, 2008. He will also submit in court a general report
that contains an audit of Logistica y Transporte's accounting
and banking records on Aug. 13, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly on Feb. 23, 2009.
Clerk No. 13 assists the court in this case.
The debtor can be reached at:
Logistica y Transporte SA
Parana 693
Buenos Aires, Argentina
The trustee can be reached at:
Jorge Roberto Dolinko
Tucuman 1657
Buenos Aires, Argentina
MARIO CORDANI: Proofs of Claim Verification Deadline is April 10
----------------------------------------------------------------
The court-appointed trustee for Mario Cordani S.A.'s bankruptcy
proceeding will be verifying creditors' proofs of claim until
April 10, 2008.
The trustee will present the validated claims in court as
individual reports on May 23, 2008. The National Commercial
Court of First Instance in Santa Fe 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 Mario Cordani 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 Mario Cordani's
accounting and banking records will be submitted in court on
July 7, 2008.
The trustee is also in charge of administering Mario Cordani's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Mario Cordani S.A.
Ruta Nacional Numero 11, Km. 481
Recreo, Departamento La Capital
Santa Fe, Argentina
MPM OBRAS: Proofs of Claim Verification Deadline is April 18
------------------------------------------------------------
Marina Fernanda Tynik, the court-appointed trustee for M.P.M.
Obras Civiles S.A.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until April 18, 2008.
Ms. Tynik will present the validated claims in court as
individual reports on June 3, 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 M.P.M. Obras 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 M.P.M. Obras'
accounting and banking records will be submitted in court on
July 17, 2008.
Ms. Tynik is also in charge of administering M.P.M. Obras'
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Marina Fernanda Tynik
Avenida Rivadavia 10.444
Buenos Aires, Argentina
PAGLIETTINI SA: Files for Reorganization in Court
-------------------------------------------------
Pagliettini S.A. has requested for reorganization approval after
failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Pagliettini 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:
Pagliettini S.A.
Diaz Colodrero 3110
Buenos Aires, Argentina
SANTANDER RIO: Sees Up to 30% Growth in Lending This Year
--------------------------------------------------------
A Banco Santander Rio S.A. executive told Business News Americas
that the bank expects lending to increase up to 30% this year,
compared to a 40% plus increase in 2007.
According to BNamericas, Santander Rio's private sector loans
grew 44.9% to ARS11.2 billion in December 2007, from December
2006.
The official commented to BNamericas, "We expect to grow 25-30%
in 2008, both for the bank and the system, with consumer loans
and SMEs [small and medium-sized enterprises] leading the way."
Santander Rio finished amortizing legal injunctions called
amparos in December 2007 and this bodes very well for the bank's
2008 profits, BNamericas says, citing the official. "After our
strong growth and finishing the amparos and other balance sheet
cleaning activities, it is reasonable to expect very good
results in 2008," the executive commented to BNamericas.
The official told BNamericas that other factors that will
increase 2008 results are:
-- the bank's government-backed securities, which
are valued at market price;
-- strong commission revenues;
-- good asset quality; and
-- a lower cost of funding.
BNamericas relates that most of Santander Rio's deposits "are
low-cost sight deposits, while commission revenues -- which last
year were up 32.5% to ARS954 million -- cover 90% of expenses."
The report says that Santander Rio's past-due loan ratio for
private sector loans was 0.65% in December 2007.
Santander Rio's "good liquidity allows for not issuing bonds
this year for funding purposes -- at least for now," BNamericas
states, citing the official.
Banco Santander Rio S.A. is headquartered in Buenos Aires,
Argentina. The bank had ARS$16.2 billion (US$5.3 billion) in
total assets and ARS$12.6 billion (US$4.1 billion) in deposits
as of December 2006.
* * *
On Nov. 13, 2007, Moody's said that Banco Santander Rio S.A.'s
long term foreign currency deposit rating of Caa1 is limited by
the country ceiling for foreign currency deposits. Banco
Santander Rio's B2 foreign currency debt program is based on the
bank's Ba1 global local currency deposit rating.
SCO GROUP: Disclosure Statement Hearing Set For April 2
-------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
scheduled a hearing on April 2, 2008, to consider approval of
the adequacy of The S.C.O. Group Inc. and S.C.O Operations
Inc.'s Disclosure Statement dated Feb. 29, 2008, explaining
their Chapter 11 Plan of Reorganization
Headquartered in Lindon, Utah, The S.C.O. Group Inc. (Nasdaq:
SCOX) fka Caldera International Inc.-- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.
The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, the United
Kingdom, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
As reported in the Troubled Company Reporter on Feb. 12, 2008,
the Court further extended the Debtors' exclusive periods to
file a Chapter 11 plan until May 11, 2008; and solicit
acceptances of that plan until July 11, 2008.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2008, Tanner LC in Salt Lake City, Utah, expressed
substantial doubt about The SCO Group Inc.'s ability to continue
as a going concern after auditing the company's financial
statements for the year ended Oct. 31, 2007. The auditing firm
reported that the company is a debtor-in-possession under
Chapter 11 of the U.S. Bankruptcy Code, has experienced
significant and continuing net losses, and is faced with
substantial contingent liabilities as a result of certain
adverse legal rulings.
SCO GROUP: Payment in Full to All Creditors Under Plan
------------------------------------------------------
The S.C.O. Group Inc. and S.C.O Operations Inc. filed their
Chapter 11 Reorganization Plan and Disclosure Statement with the
United States Bankruptcy Court for the District of Delaware on
Feb. 29, 2008.
The Debtors' Plan, include:
i) full payment with interest, if applicable of approved
creditors' claims as allowed on the effective date of the
Plan;
ii) full payment with interest, if applicable of all claims
subject to pending litigation when and to the extent the
courts allow such claims; and
iii distributions to equity holders.
The Plan allows the Debtors to focus its efforts on the
development, sales and support of its UNIX and mobile
technologies. The Plan also provides for the establishment of a
new board of directors as well as the appointment of a new Chief
Executive Officer on its effective date.
"This is an important milestone in emerging from Chapter 11
bankruptcy," said Jeff Hunsaker, President and Chief Operating
Officer of SCO Operations. "We have been working together with
the Stephen Norris Capital Partners team carefully preparing a
plan that will pay qualified creditors' claims, provide a return
to profitability, expand our business, and continue to provide
our customers and partners with the solutions and services they
need to run and grow their businesses.
"We continue to be encouraged by the feedback we are receiving
from our customers, partners and stockholders. One large
customer in Italy announced to us this week that after having
left our UNIX platform and trying Microsoft(R) Windows(TM) and
Linux, they are returning to SCO OpenServer 6 due to its
unmatched stability and reliability," said Hunsaker.
Stephen Norris Capital Partners has, subject to continued due
diligence, committed to provide up to US$100 million to finance
the SCO Plan of reorganization and to take the Company private.
Stephen Norris said, "This reorganization plan is a positive
step for SCO's customers, partners and stockholders and a major
win for all parties. This plan will enable it to grow its
business, especially outside the U.S., and if possible, settle
its outstanding litigation on a favorable and reasonable basis."
Mark Robbins, co-partner with Stephen Norris in SCO's investment
transaction said, "We have a firm belief in SCO's technology
platform and its potential to be expanded especially outside of
the United States. SCO has a solid customer base of industry
leaders. This Plan provides the necessary direction and strategy
to begin moving in a positive direction."
A full-text copy of the Disclosure Statement is available for
free at:
http://ResearchArchives.com/t/s?28bf
http://ResearchArchives.com/t/s?28c0
A full-text copy of the Chapter 11 Plan of Reorganization is
available for free at:
http://ResearchArchives.com/t/s?28be
Headquartered in Lindon, Utah, The S.C.O. Group Inc. (Nasdaq:
SCOX) fka Caldera International Inc.-- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.
The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, the United
Kingdom, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
As reported in the Troubled Company Reporter on Feb. 12, 2008,
the Court further extended the Debtors' exclusive periods to
file a Chapter 11 plan until May 11, 2008; and solicit
acceptances of that plan until July 11, 2008.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2008, Tanner LC in Salt Lake City, Utah, expressed
substantial doubt about The SCO Group Inc.'s ability to continue
as a going concern after auditing the company's financial
statements for the year ended Oct. 31, 2007. The auditing firm
reported that the company is a debtor-in-possession under
Chapter 11 of the U.S. Bankruptcy Code, has experienced
significant and continuing net losses, and is faced with
substantial contingent liabilities as a result of certain
adverse legal rulings.
=============
B E R M U D A
=============
SCOTTISH RE: Amends Employment Terms of CEO and CFO
---------------------------------------------------
Scottish Re Group Limited's Board of Directors, as a result of
the recently disclosed decision by the Board to alter the
company’s strategic focus, and in recognition of the impact on
the company's growth prospects, has agreed to certain amendments
to the employment agreements of George Zippel and Terry
Eleftheriou, the company's Chief Executive Officer and Chief
Financial Officer, respectively.
George's term of employment has been shortened to end on
July 31, 2008 and Terry's term of employment has been extended
to March 31, 2010.
Jonathan Bloomer, Chairman of the Board of Directors commented,
“George joined Scottish Re in August 2007 to execute a global
growth strategy that, given our subprime exposure and prevailing
market conditions, is no longer considered viable. He has been
instrumental in working with the Board to identify and develop
new strategies for the company. The Board believes that the
actions required to affect those strategies should be materially
complete by the middle of this year. Accordingly, the Board and
George have agreed to shorten the length of his employment
agreement. The Board thanks George for the contributions and
commitment he has provided to the Company and is counting on
his leadership for the next several months as we execute on our
new strategic focus.”
George Zippel commented, “Scottish Re has been a challenging and
rewarding experience. I look forward to continuing to lead the
team through a successful transition to the new strategic
focus.”
The company also reported that the Board has formed a committee
to lead the search for a new CEO and has retained an
international executive search firm to assist it in this
process.
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 4, 2008, Standard & Poor's Ratings Services lowered its
counterparty credit rating on Scottish Re Group Ltd. to 'B' from
'B+'. At the same time, it lowered its counterparty credit and
financial strength ratings on Scottish Re's operating companies
to 'BB' from 'BB+' and also lowered the ratings on all these
companies' dependent unwrapped securitized deals by one notch.
In addition, S&P placed the ratings on all these companies on
CreditWatch with negative implications.
As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2008, Moody's Investors Service placed Scottish Re
Group Limited's Senior unsecured shelf of (P)Ba3; subordinate
shelf of (P)B1; junior subordinate shelf of (P)B1; preferred
stock of B2; and preferred stock shelf of (P)B2 ratings on
review for downgrade.
=============
B O L I V I A
=============
COEUR D'ALENE: M. Krebs Replaces J. Sabala as Sr. Vice Pres.-CFO
----------------------------------------------------------------
Coeur d'Alene Mines Corporation has appointed Mitchell J. Krebs,
presently Senior Vice President - Corporate Development, to the
position of Senior Vice President - Chief Financial Officer.
Mr. Krebs will replace James A. Sabala, who will resign
effective March 21, 2008, to pursue other opportunities.
The company also announced that Coeur’s Chief Accounting
Officer, Thomas T. Angelos, has been promoted to Senior Vice
President and Chief Accounting Officer and Ken Koski has been
appointed to the position of Controller.
“I want to thank Jim for his hard work and significant
contributions to Coeur’s success,” said Dennis E. Wheeler,
Coeur’s Chairman, President, and Chief Executive Officer. “We
wish him all the best in his future endeavors.”
Mr. Wheeler continued, “Mitchell is a natural choice to become
Coeur’s Chief Financial Officer as he knows the Company, its
people, the industry, its financial reporting practices, and the
financial markets extremely well. He brings a unique skill set
and perspective to his new role, which will serve the Company
and its shareholders well. Together with the promotions of Tom
Angelos and Ken Koski, Coeur’s finance and accounting group is
well-prepared to support the company’s strategic objectives over
the coming years.”
Mr. Krebs has led Coeur’s Corporate Development Group for the
past five years. He first joined Coeur in 1995 and has been
involved in numerous financings and corporate transactions at
Coeur, including the recently completed acquisitions of Bolnisi
Gold and Palmarejo Silver & Gold. Mr. Krebs has a BS in
Economics from the Wharton School of Finance and an MBA from
Harvard University.
About Coeur d'Alene
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's Ratings Services B-
rating.
===========
B R A Z I L
===========
ABITIBIBOWATER INC: Incurs US$250MM Net Loss in Fourth Quarter
--------------------------------------------------------------
AbitibiBowater Inc. reported a net loss for the fourth quarter
2007 of US$250 million on sales of US$1,491 million. These
results compare with a net income of US$107 million on sales of
US$861 million for the fourth quarter of 2006.
For the full year 2007, the company reported a net loss of
US$490 million. This compares with a net loss of US$138 million
for 2006. Sales in 2007 totaled US$3,876 million, up 11% from
2006 sales of US$3,530 million.
The company's 2007 fourth quarter and year-end results reflect
the full quarter and year-end results for Bowater Incorporated
and the results for Abitibi-Consolidated Inc. for the period
after its combination with Bowater on Oct. 29, 2007. The
company's fourth quarter and year-end results for 2006 include
only Bowater results.
"While markets for wood products remain challenging, market
conditions for pulp and paper products are improving
significantly and we are pleased with our ongoing progress to
make our company a more globally competitive organization," John
W. Weaver, executive chairman, stated. "Our recently announced
agreement with Catalyst Paper, to sell our Snowflake, Arizona
newsprint mill for approximately $180 million, including
retained working capital, is another important milestone."
"We remain committed to our debt reduction target of US$1
billion over the next three years," Mr. Weaver said.
The company has been actively engaged in its Phase 2
comprehensive review of operations since the merger was
completed and expects that to disclose its decisions during the
second quarter of 2008. The company is focused on further cost
reductions and manufacturing platform improvements in both the
paper and wood products segments.
"Since our Phase 1 announcement, we have been working with our
employees, unions, governments and communities in an effort to
address the challenges that we face today," David J. Paterson,
President and chief executive officer, said. "We are operating
in a rapidly changing business environment and we will take the
necessary steps to position AbitibiBowater for the future."
"In order to remain a competitive, viable supplier and provide
our stakeholders with appropriate returns, we must significantly
improve the margins for our products," Mr. Paterson continued.
"Our recently announced price increases were a successful step."
As of Dec. 31, 2007, the company's listed total assets of
US$10.7 billion, total liabilities of US$8.8 billion resulting
to a total shareholders' equity of US$1.9 billion.
About AbitibiBowater
Headquartered in Montreal, Canada, AbitibiBowater Inc.
(NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a
result of the combination of Abitibi-Consolidated Inc. and
Bowater Incorporated. Pursuant to the transaction, Abitibi-
Consolidated Inc. and Bowater Incorporated became subsidiaries
of AbitibiBowater. The company produces a range of forest
products marketed in more than 80 countries around the world.
The company's customers include many publishers, commercial
printers, retailers, consumer products companies and building
supply outlets. AbitibiBowater is also a recycler of newspapers
and magazines. The company owns or operates 32 pulp and paper
mills and 35 wood products facilities in North America and
offshore. The company manages its business in five segments:
coated papers, specialty papers, newsprint, market pulp and
lumber. The company has operation in Brazil.
* * *
As reported in the Troubled company Reporter on Feb. 25, 2008,
Fitch Ratings downgraded AbitibiBowater Inc. and subsidiaries
as: Abitibi-Consolidated Inc.; IDR to 'CCC' from 'B-'; senior
unsecured debt to 'CCC/RR4 from 'B-/RR4'; secured revolver to
'CCC+/RR3' from 'B/RR3'. Bowater Incorporated; IDR to 'CCC'
from 'B-'; senior unsecured debt to 'CCC/RR4' from 'B-/RR4';
secured revolver to 'B/RR1' from 'BB-/RR1'. Bowater Canadian
Forest Products Inc.; IDR to 'CCC' from 'B-'; senior unsecured
debt to 'B-/RR2' from 'B+/RR2; secured revolver to 'B/RR1' from
'BB-/RR1'. All ratings have been placed on rating watch
negative.
ABITIBIBOWATER INC: Seeks to Finance Debts Maturing in 2nd Qtr.
---------------------------------------------------------------
AbitibiBowater Inc. amended Bowater Incorporated's credit
facilities.
The amendments permit an intercompany restructuring of the
ownership of the company's Catawba, South Carolina mill to
permit additional debt financing by Bowater or the company.
Among other liquidity needs that must be addressed, the
company's Abitibi-Consolidated subsidiary has second quarter
debt maturities of approximately US$200 million due April 1 and
US$150 million due June 20 that have not yet been refinanced.
The company confirmed that it has been reviewing multiple
financing alternatives to develop additional liquidity for the
remainder of 2008 and 2009.
The company cautioned that continued negative conditions in the
credit and capital markets, as well as the difficult industry
operating environment, are challenging its ability to obtain
financing and that there can be no assurance that either the
company, Abitibi-Consolidated or Bowater could obtain financing
on terms satisfactory to the company.
On Feb. 25, 2008, Bowater and certain of Bowater's direct and
indirect subsidiaries entered into amendments to Bowater's U.S.
and Canadian credit agreements:
-- The amendment to the U.S. credit agreement was entered
into with Wachovia Bank, National Association, as
administrative agent for the various lenders under that
credit agreement; and
-- The amendment to the Canadian credit agreement was entered
into among Bowater, Bowater Canadian Forest Products Inc.,
certain lender parties and The Bank of Nova Scotia, as
administrative agent for the lenders.
The amendments:
(i) contemplate the transfer by Bowater of the Catawba, South
Carolina mill assets and related operations to a new
wholly owned subsidiary of Bowater;
(ii) permit the transfer of the equity of the Catawba
subsidiary to AbitibiBowater;
(iii) make the Catawba subsidiary an additional borrower under
the U.S. credit agreement and a guarantor of the Canadian
Obligations;
(iv) permit the Catawba subsidiary, AbitibiBowater, Bowater or
certain of their subsidiaries to incur up to an aggregate
of US$700 million of additional secured indebtedness,
subject to certain conditions;
(v) for 2008, increase the applicable margin and increase the
first lien leverage ratio requirement and decrease the
interest coverage ratio requirement; and
(vi) waive any and all defaults that may have occurred as a
result of a failure by Bowater and its subsidiaries to
comply with certain financial covenants.
The amendments contemplate that the Catawba subsidiary will
grant a mortgage on the Catawba mill assets on or before
March 31, 2008, as security for US$250 million of the
indebtedness outstanding under the U.S. credit agreement and for
US$50 million as security for the Canadian credit agreement.
A copy of the Third Amendment and Waiver, dated as of
Feb. 25, 2008, to the Credit Agreement dated as of May 31, 2006,
is available at no charge at
http://ResearchArchives.com/t/s?28c3
A copy of the Third Amendment and Waiver, dated as of
Feb. 25, 2008, to the Credit Agreement dated as of May 31, 2006,
is available at no charge at
http://ResearchArchives.com/t/s?28c4
About AbitibiBowater
Headquartered in Montreal, Canada, AbitibiBowater Inc.
(NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a
result of the combination of Abitibi-Consolidated Inc. and
Bowater Incorporated. Pursuant to the transaction, Abitibi-
Consolidated Inc. and Bowater Incorporated became subsidiaries
of AbitibiBowater. The company produces a range of forest
products marketed in more than 80 countries around the world.
The company's customers include many publishers, commercial
printers, retailers, consumer products companies and building
supply outlets. AbitibiBowater is also a recycler of newspapers
and magazines. The company owns or operates 32 pulp and paper
mills and 35 wood products facilities in North America and
offshore. The company manages its business in five segments:
coated papers, specialty paperBs, newsprint, market pulp and
lumber. The company has operation in Brazil.
* * *
As reported in the Troubled company Reporter on Feb. 25, 2008,
Fitch Ratings downgraded AbitibiBowater Inc. and subsidiaries
as: Abitibi-Consolidated Inc.; IDR to 'CCC' from 'B-'; senior
unsecured debt to 'CCC/RR4 from 'B-/RR4'; secured revolver to
'CCC+/RR3' from 'B/RR3'. Bowater Incorporated; IDR to 'CCC'
from 'B-'; senior unsecured debt to 'CCC/RR4' from 'B-/RR4';
secured revolver to 'B/RR1' from 'BB-/RR1'. Bowater Canadian
Forest Products Inc.; IDR to 'CCC' from 'B-'; senior unsecured
debt to 'B-/RR2' from 'B+/RR2; secured revolver to 'B/RR1' from
'BB-/RR1'. All ratings have been placed on rating watch
negative.
BANCO BRADESCO: Shareholders to Vote on Further Capital Increase
----------------------------------------------------------------
Banco Bradesco S.A.'s shareholders will vote on the BRL4 billion
proposed capital increase this week.
Business News Americas reports that Banco Bradesco's
shareholders agreed to a BRL1.2 billion capital increase in
February 2008 through the issue of 27.9 million shares at BRL43
apiece. The board proposed a BRL2.8 billion capital increase in
December 2007.
Banco Bradesco invited shareholders to its yearly stockholder
meeting on March 24, BNamericas states.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE:
BBD) -- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management. Bradesco has branches throughout Brazil as
well as one in New York, and Japan. Bradesco offers Internet
banking, insurance, pension plans, annuities, credit card
services (including football-club affinity cards for the soccer-
mad population), and Internet access for customers. The bank
also provides personal and commercial loans, along with leasing
services.
* * *
On Nov. 12, 2007, Moody's assigned a Ba2 foreign currency
deposit rating to Banco Bradesco.
BANCO DO BRASIL: May Purchase Financial Institutions
----------------------------------------------------
Banco do Brasil Chief Executive Officer Antonio Francisco de
Lima Neto said at a meeting of investment analyst association
Apimec in Sao Paulo that the bank could purchase public or
privately held financial institutions to boost its presence in
vehicle financing and housing loans, Business News Americas
reports.
BNamericas relates that Banco do Brasil is negotiating to
acquire federal district state bank Banco de Brasilia, while it
expects to complete the acquisition of former Santa Catarina
state bank Besc by the end of July.
According to BNamericas, Banco do Brasil incorporated former
Piaui state bank BEP.
Money for more acquisitions could be taken from the initial
public offering of credit card transaction processing firm
Visanet, which could bring in up to BRL30 billion before the end
of the first half of this year, BNamericas says, citing Banco do
Brasil Chief Financial Officer Aldo Luiz Mendes.
Banco do Brasil has a 32% stake in Visanet, according to the
report.
Mr. Mendes told BNamericas shareholders wanted Visanet to reach
a free float of 25% through the initial public offering.
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 Investors Service 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+.
BANCO DO BRASIL: Previ Reports BRL18 Billion Record Surplus
-----------------------------------------------------------
Banco do Brasil's employees pension fund Previ had a record
surplus of BRL18 billion and a 37.1% return on investments last
year, reports say.
According to Business News Americas, Previ's equity investments
provided:
-- a return of 50.9% in 2007,
-- fixed income investments 14.8%, and
-- real estate investments 16.6%.
BNamericas notes that Previ's assets under management increased
30.2% to BRL138 billion in 2007, compared to 2006.
Even though Previ transferred about BRL5.63 billion in shares in
2007, it still exceeds the legal limit for equity investments,
BNamericas relates.
Under Brazilian law, pension funds can invest up to 50% in
stocks. Previ is given until the end of 2010 to meet the
target, BNamericas says.
Previ Chief Executive Officer Sergio Rosa told reporters that
the fund will sell another BRL5 billion in shares this year.
Previ sold some 17.2 million Banco do Brasil shares in a
secondary offering in February that moved BRL3.44 billion and
raised the bank's free float to 21.7% from 14.8%, BNamericas
adds.
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 Investors Service 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+.
BANCO NACIONAL: Infrastructure Up 62% to BRL25.8 Billion
--------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social, in the
past 12 months ended in January, has disbursed BRL25.80 billion
for infrastructure, a 62% increase in comparison to the previous
period. For the first time in BNDES’ recent history the
disbursements for the infrastructure sector surpasses the amount
destined to industry.
The result already reflected the impact of financings granted to
the PAC – Growth Acceleration Program projects, which received
BRL5 billion during the analyzed period.
The support to the sector represented 39.9% of the resources
disbursed by the Bank in the past 12 months – BRL64.6 billion, a
percentage that reveals how much more important the
infrastructure segment has become under the prism of BNDES’
performance. In 2003, for example, infrastructure was equal to
29% of the Bank’s releases, going up to 36% in 2004, but
retreating back to 31% in 2006.
“The tendency is that the disbursements would continue firm
considering the projects already found within the Bank’s
portfolio and considering the sector’s perspective”, Wagner
Bittencourt said, director of the Infrastructure Area.
The infrastructure’s performance mostly reflected the 102%
growth of the releases for investments on electric energy –
BRL6.5 billion. The amount was equivalent to 10% of the Bank’s
disbursements in the past 12 months, a 7% superior participation
recorded in the same previous period (February 2006/January
2007).
One of the relevant aspects of BNDES’ result up to January 2008
was the signalization of the infrastructure sector’s continuing
growth. The approvals for the sector – BRL43.3 billion, grew
74% in the last 12 months and were responsible for 46% of the
total amount approved during the period – BRL95.5 billion,
leading the sector demand for the Bank’s resources.
From that total, electric energy participated with
BRL12.5 billion in approved projects between February 2007 and
January 2008, equivalent to a 206% increase in relation to the
same previous period. Such investments as for example, the
one in the hydroelectric plants of Estreito, Foz do Chapecó and
Simplicio will enable an increase of the installed capacity in
the country of 2.9 thousand megawatts.
The land transportation segment also bore relevant weight in the
infrastructure sector’s final result. Between February 2007 and
January 2008, the Bank released BRL11.8 billion to the sector
and approved BRL15 billion, both representing a 67% increase in
comparison to the same previous period.
Industry – In the past 12 months up to January of this year, the
disbursements for the sector summed up BRL25.77 billion, a 12%
drop in relation to the same previous period. The approvals,
which totaled BRL37.6 billion, were reduced by 9%.
The industrial area’s performance continued to be affected by
the reduction of financings to exports, which in turn,
influenced the final result. The industry’s outcome becomes
positive if one excludes the foreign trade operations. Under
that criterion, the disbursements grew 15.8% (BRL18.8 billion),
and approvals increased 29.6% - summing up BRL30.5 billion.
In spite of the improvement in the quality of the credits
granted to the industrial sector, the relative participation of
industry in total disbursements endured reduction between 2003
and 2007. In 2003, it was responsible for 48%. In the 12 months
ended in January, it dropped to 39.8%, the same level obtained
in December 2007. The amount of approvals was responsible for
39% of the total.
Consolidated outcome – BNDES’ disbursements between February
2007 and January 2008 grew 19% (BRL64.6 billion) and approvals
grew 22% (BRL95.5 billion) keeping the gap in relation to the
releases. The projects framed (BRL112.0 billion) and the
consultations (BRL131.2 billion) presented expansion of 12%
and 21%, respectively.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services. The ratings were assigned in August and
May 2007.
BANCO NACIONAL: Okays BRL355 Million Loan to Coelce
---------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
approved a BRL355 million loan to power distributor Companhia
Energetica do Ceara aka Coelce.
Banco Nacional told BNamericas that Coelce will use the loan for
its 2007-09 investment plan.
Coelce will invest BRL653 million in modernizing and improving
its power distribution systems in Ceara. The company will also
construct and update substations, implement information
technology systems, and boost its commercial and management
infrastructure, BNamericas states.
About Coelce
Companhia Energetica do Ceara aka Coelce is a Brazil-based
company engaged in operating a public commission for the
distribution of electric energy. The company's principal
activities are the generation, transmission, sale and
distribution of electric energy for public, industrial and
private consumption. Coelce distributes energy across 184
municipalities in the states of Ceara, in Brazil spanning
146,825 square kilometers and serves 2.3 million clients.
Endesa Group is the company's controlling shareholder through
Investluz.
About Banco Nacional
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services. The ratings were assigned in August and
May 2007.
DELPHI CORP: Court Extends Deadline to Remove Civil Actions
-----------------------------------------------------------
The Hon. Robert Drain of the U.S. Bankruptcy Court for the
Southern District of New York extended Delphi Corp. and its
debtor-affiliates' deadline to remove pending judicial and
administrative proceedings through the earlier of:
(a) 30 days after the effective date of the Debtors' Joint
Plan of Reorganization; and
(b) 30 days after the Court enters an order terminating the
automatic stay with respect an action.
As reported in the Troubled Company Reporter on Feb. 11, 2008,
John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher &
Flom LLP, in Chicago, Illinois, related, the Debtors are parties
to more than 200 judicial and administrative actions pending in
various courts or administrative agencies throughout the United
States.
The Debtors' deadline to remove Actions in accordance with
Section 1452 of the Judiciary and Judicial Procedure Code and
Rule 9027 of the Federal Rules of Bankruptcy Procedure expired
on Feb. 29, 2008.
The Debtors expect to emerge from Chapter 11 during the first
quarter of the year.
An extension, Mr. Butler asserted, was necessary in the event
that the Debtors' bankruptcy emergence date is delayed beyond
Feb. 29, 2008. An extension, he added, will afford the Debtors
an opportunity to make fully informed and prudent decisions
concerning the possible removal of the claims and causes of
action in the Actions, thus protecting the Debtors' valuable
right to adjudicate the Actions economically if current or
future circumstances warrant their removal.
The Debtors' request will not prejudice any party whose
proceeding is removed from seeking remand under Section 1452(b)
of the Bankruptcy Code, Mr. Butler pointed out.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of
vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than 75
million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on
Dec. 20, 2007. The Court confirmed the Debtors' First Amended
Plan on Jan. 25, 2008.
(Delphi Bankruptcy News, Issue No. 115; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2008, Moody's Investors Service assigned ratings to
Delphi Corporation for the company's financing for emergence
from Chapter 11 bankruptcy protection: Corporate Family Rating
of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and
US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a
Speculative Grade Liquidity rating of SGL-2 representing good
liquidity was assigned. The outlook is stable.
As reported in the Troubled Company Reporter on Jan. 11, 2008,
Standard & Poor's Ratings Services expects to assign its 'B'
corporate credit rating to Troy, Michigan-based automotive
supplier Delphi Corp. upon the company's emergence from Chapter
11 bankruptcy protection, which may occur by the end of the
first quarter of 2008. S&P expects the outlook to be negative.
In addition, Standard & Poor's expects to assign these
issue-level ratings: a 'B+' issue rating (one notch above the
corporate credit rating), and '2' recovery rating to the
company's proposed US$3.7 billion senior secured first-lien term
loan; and a 'B-' issue rating (one notch below the corporate
creditrating), and '5' recovery rating to the company's proposed
US$825 million senior secured second-lien term loan.
DELPHI CORP: Court Extends Lease Decision Deadline to March 31
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
further extended the time within which Delphi Corp. and its
debtor-affiliates may assume or reject unexpired leases of
nonresidential real property through and including the earlier
of:
(a) the Effective Date of the Debtors' confirmed First
Amended Joint Plan of Reorganization; and
(b) May 31, 2008.
If the Debtors file a subsequent motion to extend the Lease
Decision Deadline before the expiration of the applicable
deadline for a particular lease, and that motion is set for
hearing on the next omnibus hearing date that is at least 20
days away or is filed in accordance with Rule 6006-1(c) of the
Local Bankruptcy Rules for the U.S. Bankruptcy Court for the
Southern District of New York, the Debtors' deadline to assume
or reject the underlying lease is automatically extended until
the later of:
-- the date set forth in any subsequent Court order;
-- three business days after the Court enters an order ruling
on the Subsequent Motion; and
-- May 31, 2008.
As reported in the Troubled Company Reporter on Feb. 11, 2008,
the Debtors are lessors or lessees with respect to roughly 80
unexpired leases of nonresidential real property, John Wm.
Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP,
in Chicago, Illinois, relates. Certain of the Real Property
Leases, he noted, are among the Debtors' primary assets and are
vital to their business.
The First Amended Plan provides for the assumption of all of the
Real Property Leases on the Plan Effective Date. The Debtors'
Lease Decision Deadline expired Feb. 29, 2008.
The Proposed Lease Decision Deadline will be subject to the
terms of the Plan and Plan Confirmation Order, Mr. Butler
assured the Court. The Proposed Deadline, he added, coincides
with the Debtors' current deadline to solicit acceptances of a
reorganization plan.
The Debtors have remained and fully intend to remain current
with respect to all outstanding postpetition rental obligations
under the Real Property Leases, Mr. Butler continues. The non-
debtor parties to the Real Property Leases will not be
prejudiced by the proposed extension because the Debtors are
making payments under the Real Property Leases as they come due,
he said.
If the Lease Decision Deadline is not extended, the Debtors may
face uncertainty with respect to their ability to assume or
reject the Real Property Leases if the Plan does not become
effective by the current Feb. 29, 2008 Lease Decision Deadline,
Mr. Butler maintained.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of
vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than 75
million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on
Dec. 20, 2007. The Court confirmed the Debtors' First Amended
Plan on Jan. 25, 2008.
(Delphi Bankruptcy News, Issue No. 115; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 16, 2008, Moody's Investors Service assigned ratings to
Delphi Corporation for the company's financing for emergence
from Chapter 11 bankruptcy protection: Corporate Family Rating
of (P)B2; US$3.7 billion of first lien term loans, (P)Ba3; and
US$0.825 billion of 2nd lien term debt, (P)B3. In addition, a
Speculative Grade Liquidity rating of SGL-2 representing good
liquidity was assigned. The outlook is stable.
As reported in the Troubled Company Reporter on Jan. 11, 2008,
Standard & Poor's Ratings Services expects to assign its 'B'
corporate credit rating to Troy, Michigan-based automotive
supplier Delphi Corp. upon the company's emergence from Chapter
11 bankruptcy protection, which may occur by the end of the
first quarter of 2008. S&P expects the outlook to be negative.
In addition, Standard & Poor's expects to assign these
issue-level ratings: a 'B+' issue rating (one notch above the
corporate credit rating), and '2' recovery rating to the
company's proposed US$3.7 billion senior secured first-lien term
loan; and a 'B-' issue rating (one notch below the corporate
creditrating), and '5' recovery rating to the company's proposed
US$825 million senior secured second-lien term loan.
GERDAU SA: Board Okays Shares Issuance Up to BRL2.8 Million
-----------------------------------------------------------
Gerdau S.A.'s Board of Directors has approved a primary issuance
of common and preferred shares in an amount of up to
BRL2.8 billion. Application were made on March 4, 2008 for the
approval of the offering with the Brazilian Securities
Commission, Comissao de Valores Mobiliarios.
The company intended to offer its preferred shares, and American
Depositary Shares representing its preferred shares, in the
United States pursuant to a registration statement that will be
filed with the U.S. Securities and Exchange Commission.
The company also intends to offer its common shares in the
United States pursuant to Rule 144A under the Securities Act of
1933, as amended and outside the United States pursuant to
Regulation S under the Securities Act. The common shares will
not be registered under the Securities Act, and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.
The terms of the offerings will be established at the time of
sale. In each case, existing shareholders will have
preferential rights to subscribe in the offering, on terms to be
established. The preferential rights of non-Brazilian
shareholders to subscribe for common shares will be extended
only to shareholders that are qualified institutional buyers.
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: To Carry Out Public Primary Share Offering
-----------------------------------------------------
Gerdau SA will conduct a public primary offering of ordinary and
preferred shares of up to BRL2.80 billion.
Gerdau's controller, holding company Metalurgica Gerdau S.A.,
will also carry out a public primary offering of ordinary and
preferred stocks of up to BRL1.20 billion.
Shareholders of the two companies will have a priority in
subscribing to shares tied to the offerings.
Business News Americas relates that the offerings are awaiting
the Brazilian securities regulator Comissao de Valores
Mobiliarios' authorization. BNamericas relates that the
offerings also depend on conditions of capital markets in and
outside Brazil.
About Metalurgica Gerdau
Metalurgica Gerdau S.A. is a Brazil-based holding company for
Gerdau Group, a group of companies principally dedicated to the
production of steel products. The Company holds interests in
steel production mills in Brazil, Argentina, Chile, Colombia,
Canada, Spain, the United States and Uruguay. Gerdau Group has
an installed capacity of 19.2 million metric tons of steel per
year. In 2006 Gerdau acquired 40% of Sidenor, a steel producer
in Spain. Through Gerdau S.A., Metalurgica Gerdau holds
indirect interests in 14 other companies worldwide in addition
to an interest in Banco Gerdau (99%). Its subsidiaries,
activities predominantly involve smelting iron to producing
steel, production of specialty steels and recycling of steel.
The Gerdau Group markets its products to the automobile sector,
for the production of domestic appliances and consumer goods and
to the construction industry for the production of reinforced
concrete. Metalurgica Gerdau also holds interests in the
agricultural sector.
About Gerdau
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.
GOL LINHAS: Reports Passenger Statistics for February 2008
----------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of
Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas
Aereas S.A., released preliminary passenger statistics for the
month of February 2008. Consolidated domestic passenger traffic
(RPK) for February 2008, increased 17% and capacity (ASK)
increased 38% year-over-year. Domestic consolidated load factor
for the month was 62% and international consolidated load factor
was 55%. The company's total system load factor for the month
of February was 60%.
GOL Transportes' domestic passenger traffic (RPK) for February
2008, was 1,428mm and capacity (ASK) was 2,241mm. International
passenger traffic (RPK) was 202mm and capacity (ASK) was 259mm.
VRG Linhas' domestic passenger traffic (RPK) for February 2008
was 136mm and capacity (ASK) was 292mm. International passenger
traffic (RPK) was 357mm and capacity (ASK) was 762mm.
Consolidated Operating Data Feb. Feb. Change
2008 2007 (%)
Total System
ASK (mm) 3,554.2 2,165.1 64.2%
RPK (mm) 2,122.6 1,565.2 35.6%
Load Facto 59.7% 72.3% -12.6 p.p.
Domestic Market
ASK (mm) 2,533.3 1,837.0 37.9%
RPK (mm) 1,564.3 1,336.6 17.0%
Load Facto 61.7% 72.8% -11.1 p.p.
International Market
ASK (mm) 1,020.9 328.1 211.2%
RPK (mm) 558.3 228.6 144.2%
Load Facto 54.7% 69.7% -15.0 p.p.
Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL
Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) --
http://www.voegol.com.br-- through its subsidiary, GOL
Transportes Aereos S.A., provides airline services in Brazil,
Argentina, Bolivia, Uruguay, and Paraguay. The company's
services include passenger, cargo, and charter services. As of
March 20, 2006, Gol Linhas provided 440 daily flights to 49
destinations and operated a fleet of 45 Boeing 737 aircraft.
The company was founded in 2001.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 25, 2007, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Gol Linhas Aereas
Inteligentes S.A. Fitch also affirmed the outstanding US$200
million perpetual bonds and US$200 million of senior notes due
2017 at 'BB+' as well as the company's 'AA-' (bra) national
scale rating. Fitch said the rating outlook is stable.
JAPAN AIRLINES: Announces Changes in Board Membership
-----------------------------------------------------
The Japan Airlines Group has announced changes to the boards of
directors and executive officers of Japan Airlines Corporation
and Japan Airlines International, the Group’s main operating
airline for FY2008, the fiscal year ending March 31, 2009.
The JAL Group is currently making consolidated efforts to
restructure its business according to its Medium Term Revival
Plan. In FY2008, the airline group will continue pushing
forward with the various measures that are already underway and
strive to achieve the targets set. In order to do this, JAL has
decided to reappoint the executive directors who were appointed
last fiscal year, and keep changes down to a minimum.
The changes announced today are effective April 1, although some
of them are subject to the approval of the annual general
meeting of shareholders in late June when proposed new board
members announced can be formally elected. New executive
officers do not have board-voting rights and their appointments
do not require shareholder approval.
Mr. Haruka Nishimatsu remains as President and CEO of the JAL
Corporation and JAL International. As already announced on
Feb. 8, 2008, Toshiyuki Shinmachi will retire on March 31, 2008,
from his position as board chairman of both companies. He will
be joined by Mr. Takao Fukuchi who will retire from his post as
Senior Vice President, Cargo and Mail also at the end of March.
The post of JAL chairman will remain vacant, and Mr. Fukuchi
will be replaced by Mr Kunio Hirata. Promoted to the position
of Senior Vice President, Finance, Accounting, Purchasing will
be Mr. Yoshimasa Kanayama. Mr. Hirata and Mr. Kanayama will
remain in their current positions of Executive Officer from
April 1, up until their new titles are approved at the annual
general meeting of shareholders.
Promotions within the ranks of the current board of members will
result in President Nishimatsu being supported by two Vice
Presidents, one Senior Managing Director and three Managing
Directors.
A slight change to the power of Senior Executive Officer will
enable the Group to strengthen its corporate governance.
A “Corporate Climate Reform Committee” will be established
chaired by the President with an executive director appointed in
charge. The committee will carry out activities that will cut
across departments and job types helping to firmly establish
within the Group a corporate culture founded on the pillars of
safety and customer satisfaction.
Tokyo-based Japan Airlines International Company, Limited --
http://www.jal.com/en/-- was created as a result of the merger
of Japan Airlines and Japan Air Systems to boost domestic
coverage. Japan Airlines flies to the United States, Brazil and
France.
* * *
As reported on Feb. 9, 2007, that Standard & Poor's Ratings
Services affirmed its 'B+' long-term corporate credit and issue
ratings on Japan Airlines Corp. (B+/Negative/--) following the
company's announcement of its new medium-term management plan.
S&P said the outlook on the long-term corporate credit rating is
negative.
As reported on Oct. 10, 2006, that Moody's Investors Service
affirmed its Ba3 long-term debt ratings and issuer ratings for
both Japan Airlines International Co., Ltd and Japan Airlines
Domestic Co., Ltd. The rating affirmation is in response to the
planned restructuring of the Japan Airlines Corporation group on
Oct. 1, 2006 with the completion of the merger of JAL's two
operating subsidiaries, JAL International and Japan Airlines
Domestic. JAL International will be the surviving company.
Moody's said the rating outlook is stable.
Fitch Ratings Tokyo analyst Satoru Aoyama said that the
company's debt obligations and expenses for new aircraft have
placed it in an unfavorable financial position. Fitch assigned
a BB- rating on the company, which is three notches lower than
investment grade.
JBS SA: Buys National Beef for US$465MM Cash, US$95MM Stock
-----------------------------------------------------------
JBS S.A. has entered into a Membership Interest Purchase
Agreement with U.S. Premium Beef, LLC, and National Beef Packing
Company, LLC, under which JBS will acquire all of the
outstanding membership interests of National Beef. Under the
terms of the agreement, JBS will pay the members of National
Beef total proceeds of approximately US$465 million cash and
US$95 million in JBS common stock. In addition, JBS will assume
all of National Beef’s debt and other liabilities at closing.
The sale will combine all of National Beef’s operations and
facilities, including National Carriers, Inc. and its ownership
in Kansas City Steak Company, LLC with JBSSwift’s beef
operations. National Beef President Tim M. Klein will become
President and Chief Operating Officer of the joint National
Beef/JBS-Swift beef operations.
“This transaction will enable our company to become a part of a
leading multinational food company,” Steve Hunt, CEO of USPB,
said in making the announcement. “Being able to diversify
through JBS will put our company in a position to compete long
term in an increasingly competitive environment. Additionally,
as part of JBS, we will be in a strong position to grow USPB’s
successful integrated strategy. Our producer owners and other
producers who market cattle through USPB will now have a more
geographically diversified company with multiple locations to
deliver the high quality cattle they produce
for our value-added programs. This opportunity will establish a
solid platform for future company growth.”
John R. Miller, CEO of National Beef, added that the combined
operations will have the ability to better meet the growing
needs of customers both domestically and internationally. “This
strategic combination will allow both companies to better
utilize resources and management talent to compete in an
increasingly difficult world protein arena,” Mr. Miller noted.
“JBS’s worldwide reach and its reputation for efficient
operations will enable National Beef to participate in
opportunities heretofore unavailable to us. We look forward to
working with the management team of JBS to create a premier red
meat company.”
“We are thrilled to be able to have National Beef become part of
our North American beef processing operations,” Wesley Batista,
CEO of JBS USA, Inc., said. “National Beef’s reputation for
efficiently producing high quality beef and for serving its
customers is recognized worldwide. We are looking forward to
working with its management and employees to expand our business
in the United States and internationally. National Beef is an
industry leader in value added fresh beef in the United States
and is also a leading U.S. exporter of fresh chilled and frozen
beef to Japan—both of which are strengths that will complement
our business plan for growth in beef processing in the United
States and especially the Pacific Rim.”
The transaction is subject to certain conditions and will
require customary regulatory approvals.
About U.S. Premium
U.S. Premium Beef, LLC -- http://www.uspremiumbeef.com/-- is
the majority owner of National Beef Packing Company, LLC, a
leading U.S. beef processor. More than 2,100 producers from 36
states have marketed cattle on USPB’s quality-based grids.
These high quality cattle are the foundation of National Beef’s
value-added product lines and have enabled it to be a leader in
branded product programs for both domestic and
international markets.
About National Beef
Based in Kansas City, MO, National Beef Packing Company, LLC --
http://www.nationalbeef.com/-- has operations in Liberal and
Dodge City, Kansas; Brawley, California; Hummels Wharf,
Pennsylvania; Moultrie, Georgia and Kansas City, Kansas.
National Beef processes and markets fresh beef, case-ready beef
and beef byproducts for domestic and international markets. In
fiscal year 2007, National Beef generated sales of US$5.6
billion and processed 3.9 million head of cattle.
About JBS
Headquartered in Sao Paulo, Brazil, JBS is the third largest
beef company in the world in terms of cattle slaughtering
capacity and the largest beef processor and exporter in Brazil,
Argentina and Latin America. With operations in Brazil and
Argentina, JBS produces, prepares, packages and delivers fresh,
chilled and processed beef and beef by-products to customers
both in Brazil and abroad.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 13, 2007, Moody's Investors Service placed under review for
possible downgrade the company's B1 global local currency
corporate family rating and B1 senior unsecured rating of JBS
S.A.
JBS SA: Buying Smithfield Foods and Tasman Group for US$713 Mil.
----------------------------------------------------------------
JBS S.A. will be acquiring Smithfield Foods Inc. and Tasman
Group for a total cash consideration of US$713 million.
According to various reports, JBS has agreed to buy Smithfield
Foods's beef-producing units for US$565 million, US$200 million
of which are for cattle feedlots. JBS is also purchasing Tasman
Group in Australia for US$148 million.
JBS is expanding its business in the U.S., Australia and Europe
to increase sales in markets that restricted Brazilian beef
imports, Carlos Caminada and Choy Leng Yeong of the Bloomberg
News report. The report adds that JBS would likely become the
largest U.S. beef processor following the deals, replacing Tyson
Foods Inc. JBS , after Swift & Co. purchase in 2007, was the
third largest in U.S.
In a recent press release, JBS has also disclosed entry into a
Membership Interest Purchase Agreement with U.S. Premium Beef,
LLC, and National Beef Packing Company, LLC, to acquire all of
the outstanding membership interests of National Beef for
US$465 million cash and US$95 million in JBS common stock.
According to the company, it would sell BRL2.55 billion of new
shares in a private offering to pay for the acquisitions. Each
share amounted to BRL7.07.
About Smithfield Foods
Smithfield Foods, Inc., (NYSE: SFD) --
http://www.smithfieldfoods.com-- headquartered in Smithfield,
Virginia, is the largest vertically integrated producer and
marketer of fresh pork and processed meat in the US and has
operating subsidiaries and joint ventures in France, Poland,
Romania, the UK, Brazil, Mexico, and China.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 21, 2007, Standard & Poor's Ratings Services assigned its
'BB' rating to Smithfield Foods Inc.'s shelf drawdown of US$500
million senior unsecured notes due 2017.
About JBS
Headquartered in Sao Paulo, Brazil, JBS S.A. is the third
largest beef company in the world in terms of cattle
slaughtering capacity and the largest beef processor and
exporter in Brazil, Argentina and Latin America. With
operations in Brazil and Argentina, JBS produces, prepares,
packages and delivers fresh, chilled and processed beef and beef
by-products to customers both in Brazil and abroad.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 13, 2007, Moody's Investors Service placed under review for
possible downgrade the company's B1 global local currency
corporate family rating and B1 senior unsecured rating of JBS
S.A.
NET SERVICOS: Picks ARRIS to Expand Internet Service in Brazil
--------------------------------------------------------------
Brazilian-based NET Servicos de Comunicacao S.A. has placed a
large order for ARRIS C4 CMTS' to be deployed across its
national footprint. The C4 CMTS' will provide high-speed data
service as well as Voice over Internet Protocol (VoIP) telephone
service to NET customers in cities including Sao Paulo, Rio de
Janeiro, Curitiba, Brasilia and Santos.
"As the Brazilian broadband landscape becomes more competitive,
we must continue to offer our customers the widest variety of
telecommunications services available, and we were impressed
with the C4's density, scalability and all-component
redundancy," said NET Servicos Chief Executive Officer, Jose
Antonio Felix.
"After a rigorous selection process we are honored to be
selected by NET to help them provide advanced Voice and High
Speed Data service," said ARRIS Vice President of Sales in Latin
America, German Iaryczower. "Our goal is to help NET implement
a successful and trouble-free HSD and VoIP solution, which can
be cost-efficiently and reliably maintained for the future
communication needs of their growing customer base."
About ARRIS
Headquartered in Suwanee, Georgia, ARRIS --
http://www.arrisi.com-- is a global communications technology
company specializing in the design, engineering and supply of
technology supporting triple- and quad-play broadband services
for residential and business customers around the world. The
company supplies broadband operators with the tools and
platforms they need to deliver reliable telephony, demand driven
video, next-generation advertising and high-speed data services.
ARRIS products expand and help grow network capacity, reliably
deliver voice, video and data services and assure optimal
service delivery for end customers. ARRIS has R&D centers in
Atlanta; Chicago; Beaverton, Oregon; Wallingford, Connecticut;
Cork, Ireland and Shenzhen, China, and operates support and
sales offices throughout the world.
About NET Servicos
Headquartered in Sao Paulo, Brazil, Net Servicos de Comunicacao
SA -- http://nettv.globo.com/NETServ/us/empr/sobr_visao.jsp--
is the largest pay-television operator in Latin America. The
company operates in 79 Brazilian cities, including Sao Paulo,
Rio de Janeiro, Belo Horizonte and Porto Alegre. It is also the
leading provider of high-speed cable modem Internet access
through Net Virtua service. Its advanced network of coaxial and
fiber-optic cable covers over 44,000 kilometers and passes
approximately 9 million homes.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 21, 2008, Moody's Investors Service assigned a Ba2 foreign
currency rating to the proposed up to US$200 million guaranteed
long term senior unsecured notes to be issued by Net Servicos de
Comunicacao S.A. The rating outlook is stable.
SUN MICROSYSTEMS: Teams with SBTVD to Develop Software Solution
---------------------------------------------------------------
Sun Microsystems Inc. and the Forum do Sistema Brasileiro de TV
Digital Terrestre, the public-private organization responsible
for digital television conversion in Brazil, have signed a
memorandum of understanding to join forces in the development of
an open-source content platform based on Java(TM) technology for
use in the country-wide conversion of television applications
and services.
As a developing country with a strong commitment to open source
software, Brazil is adopting this open source strategy to reduce
the economic barriers to entry for its low income population and
minimize the royalty costs. There are more then 98 million
analog TV sets and an additional 120 million mobile devices in
Brazil. By the year 2016, the transition period will end and no
more analog terrestrial TV transmissions will be allowed. An
important component of this plan is to help ensure that
Brazilian citizens at all socioeconomic levels get affordable
access to the new ecosystem of interactive services to be
provided through the Java technology-based DTV infrastructure.
The agreement will help enable global companies to use Java
technology to create and implement interactive TV services and
interface tools for Brazilian customers by adapting HDTVs and
mobile devices to the Brazilian ISDB-T digital TV standard.
Java technology is the key component of the new, open source
solution and helps to enable interactive services for DTV
devices. The specification builds upon the same Java platform
that currently serves as the basis for other widely-deployed
digital television standards, including OpenCable/tru2way,
Multimedia Home Platform, GEM-IPTV and Blu-ray Disc/BDJ. To
help reduce overall equipment prices while driving innovation in
product development, the specification is being structured to
permit implementations of this module which can be deployed
royalty free and without licensing costs. The interactive
solution will be compatible with the current Brazilian digital
TV system middleware offering, known as GINGA, and will provide
a low-cost alternative to the technology that is currently
available. GINGA is being licensed as a worldwide registered
trademark by SBTVD.
“As the world's leading open source company, Sun's efforts to
drive open source innovation and open standards are proving to
be invaluable in helping emerging economies such as Brazil spur
innovation and drive down costs on products that have the
potential to improve the lives of their citizens,” said Crawford
Beveridge, executive vice president and chairman, APAC, EMEA and
the Americas, Sun Microsystems. “We hope that our work with
SBTVD on developing the first open-sourced national standard of
Interactive DTV will serve as a model platform for other
emerging countries.”
“According to the standard solutions and practices adopted by
SBTVD Forum, the Java software specification developed in
partnership with Sun will provide a valuable technological
alternative in a critical area,” according to Roberto
Franco, SBTVD Forum president, "Specifications developed around
SBTVD follow the philosophy of providing cutting edge technology
that offer more capabilities and are available through fair,
reasonable, affordable, non-discriminatory policies (FRAND),”
Mr. Franco said. “The GINGA standard allows more flexibility in
interactive application development by offering a declarative
platform, based on NCL, and a procedural platform, based in
Java, which both can be deployed royalty free. With this, we
can provide the market with an affordable and popular convertor
platform featuring powerful interactive resources.”
“At Sun, we believe giving communities access to code for all of
our software products will fuel innovation and accelerate the
pace of adoption. The momentum of open source and its power to
bring people onto the network is unquestionable,” said Rich
Green, executive vice president, Software, Sun Microsystems.
“The Brazilian developer community has a vibrant presence in our
Java software, MySQL and OpenSolaris communities and Sun will
continue to invest in these and other open source communities.
We're exceptionally pleased to join forces with SBTVD and the
strong, active Brazilian community of Java technologists in
developing this important national standard via the ginga.org.br
portal.”
SBTVD Forum is a non-profit organization, created with the
objective of helping and stimulating development and
implementation of best practices for digital images, sound
reception as well as broadcast transmission success in Brazil.
Its affiliated board has members of TV broadcasters,
transmission and reception equipment manufacturers, and software
industry vendors which represent more then 80% of the industry.
Members also include federal government and education and
research entities that develop activities supporting the
Brazilian TVD system. The Forum is responsible for defining
standards and regulations for the successful implementation of
digital TV infrastructure in Brazil, and communicating program
information about system in Brazil and abroad.
To learn more about innovations in Java technology, developers
can attend the 2008 JavaOne conference at the Moscone Center in
San Francisco, May 6-9, 2008. Registration is open now at
http://java.sun.com/javaone/sf/registration.jsp.'
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.
TEREX CORP: Closes ASV Purchase for US$488 Million
--------------------------------------------------
Terex Corporation has completed the acquisition of A.S.V. Inc.
by means of a short form merger under Minnesota law. ASV is now
a wholly-owned subsidiary of Terex and part of the Terex
Construction segment.
As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, the transaction is valued at approximately
US$488 million, or US$18 per fully diluted share of ASV common
stock, and is subject to the valid tender of a majority of ASV's
fully diluted common shares, regulatory approvals and other
customary conditions.
“We are extremely enthusiastic that ASV and its team members are
now part of the Terex Construction family,” said Robert Isaman,
President, Terex Construction. “With ASV as a proven leader in
compact track loader technology combining the global reach of
Terex, we see a real opportunity for expanding ASV product
sales. ASV is an excellent strategic and cultural fit and
provides a great addition to our product offerings as Terex
continues to grow as a global construction equipment
manufacturer.”
On Feb. 26, 2008, Terex announced the successful completion of
its tender offer for ASV common stock. In the merger, each
outstanding share of common stock, par value US$0.01 per share,
of ASV not tendered in the tender offer (other than shares to
which the holder has properly exercised dissenters’ rights) was
converted into the right to receive US$18.00 in cash per share,
without interest.
About ASV
A.S.V., Inc. -- http://www.asvi.com/-- designs, manufactures
and sells rubber track machines and related components,
accessories, and attachments. Its purpose-built chassis and
patented rubber track undercarriage technology are unique and
lead all rubber track loaders in innovation and performance.
ASV products are able to traverse nearly any terrain with
minimal damage to the ground, making them effective in markets
such as construction, landscaping, forestry and agriculture.
ASV’s wholly-owned subsidiary Loegering Mfg., Inc. designs,
manufactures and sells traction products and attachments for the
skid-steer industry. Goldman, Sachs & Co. acted as financial
advisor to ASV on this transaction and Dorsey & Whitney LLP
acted as legal counsel.
About Terex Corp.
Headquartered in Westport, Connecticut, Terex Corporation
(NYSE:TEX) - http://www.terex.com/-- manufactures a broad range
of equipment for use in various industries, including the
construction, infrastructure, quarrying, surface mining,
shipping, transportation, refining, and utility industries.
Terex offers a complete line of financial products and services
to assist in the acquisition of Terex equipment through Terex
Financial Services. The company operates in five business
segments: Aerial Work Platforms, Construction, Cranes, Materials
Processing & Mining, and Roadbuilding, Utility Products and
Other. The company has operations in Australia, Brazil, China,
Japan, Germany, United Kingdom, among others.
* * *
In August 2007, Moody's placed the company's long-term corporate
family rating and probability of default rating at Ba2, bank
loan debt rating at Ba1, and senior subordinate rating at Ba3.
These ratings still hold to date. Moody's said the outlook is
stable.
==========================
C A Y M A N I S L A N D S
==========================
GUGGENHEIM PARTNERS: Proofs of Claim Filing is Until March 14
-------------------------------------------------------------
Guggenheim Partners Equity Opportunity Fund II Ltd.'s creditors
have until March 14, 2008, to prove their claims to Jane Fleming
and Melanie Harbron, 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.
Guggenheim Partners' shareholder decided on Dec. 14, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jane Fleming and Melanie Harbron
Queensgate Bank & Trust
P.O. Box 30464, Harbor Place
Grand Cayman KY1-1202, Cayman Islands
Telephone: 345 945 2187
Fax: 345 945 2197
GUGGENHEIM PARTNERS INVESTMENT: Claims Filing Ends on March 14
--------------------------------------------------------------
Guggenheim Partners Investment Fund (Cayman) Ltd.'s creditors
have until March 14, 2008, to prove their claims to Jane Fleming
and Melanie Harbron, 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.
Guggenheim Partners' shareholder decided on Dec. 14, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jane Fleming and Melanie Harbron
Queensgate Bank & Trust
P.O. Box 30464, Harbor Place
Grand Cayman KY1-1202, Cayman Islands
Telephone: 345 945 2187
Fax: 345 945 2197
MADISON RIDGE: Proofs of Claim Filing Deadline is March 14
----------------------------------------------------------
Madison Ridge Master Fund, Ltd.,'s creditors have until
March 14, 2008, to prove their claims to Andrew Lee, 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.
Madison Ridge' shareholder decided on Jan. 24, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Andrew Lee
306 Dean Street, Brooklyn
NY 11217, USA
Contact for inquiries:
Shameer Jasani
c/o Ogier
Queensgate House, South Church Street
P.O. Box 1234, Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 949 9876
Fax: (345) 949 1986
MERLIN BIOMED: Sets Final Shareholders' Meeting for March 14
------------------------------------------------------------
Merlin Biomed International, Ltd., will hold its final
shareholders' meeting on March 14, 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) authorizing the liquidator 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.
Merlin Biomed's shareholders decided on Jan. 11, 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
Attn: Michael Lubin
Queensgate House, South Church Street
Grand Cayman, Cayman Islands
Telephone: (345) 949 9876
Fax: (345) 945 8604
MERLIN BIOMED OFFSHORE: Final Shareholders' Meeting on March 14
---------------------------------------------------------------
Merlin Biomed Offshore Longterm Appreciation Fund, Ltd., will
hold its final shareholders' meeting on March 14, 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) authorizing the liquidator 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.
Merlin Biomed's shareholders decided on Jan. 11, 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
Attn: Michael Lubin
Queensgate House, South Church Street
Grand Cayman, Cayman Islands
Telephone: (345) 949 9876
Fax: (345) 945 8604
PARMALAT SPA: Increases Fully Paid Up Share Capital to EUR1.6BB
---------------------------------------------------------------
Parmalat S.p.A. communicates that, following the allocation of
shares to creditors of the Parmalat Group, the subscribed and
fully paid up share capital has now been increased by
EUR8,741,676 to EUR1,661,207,690 from EUR1,652,466,014. The
share capital increase is due to the assignation of 8,683,000
shares and to the exercise of 58,676 warrants.
The latest status of the share allotment is 33,162,487 shares
representing approximately 2.0% of the share capital are still
in a deposit account c/o Parmalat S.p.A., of which:
* 13,388,617 or 0.8% of the share capital, registered in the
name of individually identified commercial creditors, are
still deposited in the intermediary account of Parmalat
S.p.A. centrally managed by Monte Titoli (compared with
13,446,885 shares as at Jan. 21, 2008);
* 19,773,870 or 1.2% of the share capital registered in the
name of the Foundation, called Fondazione Creditori
Parmalat, of which:
-- 120,000 shares representing the initial share capital
of Parmalat S.p.A. (unchanged);
-- 19,653,870 or 1.2% of the share capital that pertain to
currently undisclosed creditors (compared with
19,933,148 shares as at Jan. 21, 2008).
About Parmalat
Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months. It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.
The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases. On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York. In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat
Debtors' U.S. cases. On June 21, 2007, the U.S. Court Granted
Parmalat Permanent Injunction.
* CAYMAN ISLANDS: Moody's Publishes Annual Report
-------------------------------------------------
In its annual report on the Cayman Islands, Moody's Investors
Service says the government's Aa3 foreign currency bond rating
underscores the economic resiliency that has allowed the
impressive rebound from the devastation of Hurricane Ivan in
2004. The rating is the second highest in the Caribbean after
Bermuda.
Other important factors cited by the Moody's report to support
the rating are a very high GDP-per-capita ratio and very strong
governance indicators, reflecting sound institutions and a high
degree of policy predictability. Upward movement in the ratings
is limited by vulnerability to hurricanes, dependence on outside
sources of growth, and some fiscal inflexibility given a revenue
base that excludes direct income taxation.
"The current fiscal year budget clearly outlines a multi-year
ambitious capital expenditure agenda to be financed by
substantial borrowing by Cayman Islands' standards," said
Moody's Vice President and Senior Analyst Alessandra Alecci,
author of the report. "Despite these borrowing plans and some
fiscal deterioration associated with rising capital
expenditures, the Cayman Islands' level of indebtedness remains
manageable and still well within the ratings' cohort."
Ms. Alecci said the significant widening of the central
government deficit during 2004/2005 and 2007/2008, as well as
the potential for further debt accumulation in the coming years,
is due to extraordinary circumstances rather than a shift of an
otherwise historically conservative fiscal stance.
"As reflected in the debt ratios, there is an established track
record of fiscal prudence in the Cayman Islands," Ms. Alecci
noted.
Official growth projections of between 3% and 3.5% for 2008 and
2009 incorporate the expectation that softer global conditions
will affect the tourist industry, especially arrivals from the
United States. The projection also assumes that global
financial shocks will not severely affect the Cayman Islands'
financial services industry, as this is so far proving to be the
case, said the analyst.
"While the full impact of the financial turmoil will probably be
felt in full only later in the year, it is not likely to
destabilize the Cayman Islands' leading position in the mutual
fund registration industry and, in turn, significantly affect
the sizeable fees paid to the government," Ms. Alecci concluded.
Moody's report, "Cayman Islands: 2008 Credit Analysis," is a
yearly update to the markets and is not a rating action.
=========
C H I L E
=========
TECH DATA: Reports US$50.2 Million Net Income in Fourth Quarter
---------------------------------------------------------------
Tech Data Corporation reported its financial results for the
fourth-quarter and fiscal year ended Jan. 31, 2008.
Net sales for the three-month period ended Jan. 31, 2008,
reached a fourth-quarter record of US$6.5 billion, an increase
of 5.9 percent from US$6.1 billion in the prior-year period.
Fourth quarter net-income totaled US$50.2 million compared to
net income of US$36.1 million for the prior-year period, based
upon Generally Accepted Accounting Principles. Results for the
fourth quarter of fiscal 2008 included a US$1.4 million non-cash
charge for the loss on disposal of subsidiaries related to the
company’s decision earlier this year to exit its operations in
the United Arab Emirates. The charge primarily related to
foreign currency translation losses recorded during the current
year.
“We completed fiscal 2008 with another solid quarterly
performance. Our Tech Data team delivered worldwide net income
growth in the fourth quarter of nearly 40 percent on net sales
growth of 5.9 percent. We are pleased with the measurable
improvements in our European operations where we generated a
fourth quarter non-GAAP operating margin of .90 percent, the
highest in twelve quarters,” said Robert M. Dutkowsky, Chief
Executive Officer, Tech Data Corporation. “Our market driven
sales initiatives and improved inventory management processes,
coupled with our efforts to enhance return on capital employed,
drove strong results across our Americas and European operations
throughout the year. While we're pleased with our progress, we
know there are opportunities for continued improvement on all
fronts. As we proceed into fiscal 2009, the economic
environment remains an important consideration, but we remain
cautiously optimistic. We will continue to manage our business
responsibly while making wise investments for long-term
success.”
Fiscal-Year Results
Net sales for the fiscal year ended Jan. 31, 2008 were
US$23.4 billion, an increase of 9.2 percent from US$21.4 billion
in the fiscal year ended Jan. 31, 2007. On a regional basis,
net sales in the Americas represented 47 percent of net sales,
and increased 10.4 percent to US$11.0 billion from
US$9.9 billion in the prior-year period. Europe represented 53
percent of net sales, and increased 8.2 percent (1.4 percent
decrease on a local currency basis) to US$12.4 billion from
US$11.5 billion for the fiscal year ended Jan. 31, 2007.
Gross margin for the fiscal year ended Jan. 31, 2008 was 4.84
percent, up from 4.70 percent in the prior-year comparable
period. The increase in gross margin was primarily attributable
to improvements in the company’s pricing and inventory
management practices in Europe, partially offset by competitive
pricing conditions in the Americas.
For the fiscal year ended Jan. 31, 2008, on a GAAP basis, the
company recorded operating income of US$188.4 million, or 0.80
percent of net sales, compared with an operating loss of
US$(4.2) million, or (.02) percent of net sales, in the prior-
year period.
The company recorded net income on a GAAP basis of
US$108.3 million for the fiscal year ended Jan. 31, 2008,
compared to a net loss of US$(97.0) million, in the prior-year
period. Net income for the fiscal year ended Jan. 31, 2007
included US$3.9 million in income from discontinued operations
related to the sale of the European training business.
Founded in 1974, Tech Data Corporation (NASDAQ GS: TECD) --
http://www.techdata.com/-- distributes IT products, with more
than 90,000 customers in over 100 countries. The company's
business model enables technology solution providers,
manufacturers and publishers to cost-effectively sell to and
support end users ranging from small-to-midsize businesses to
large enterprises. Tech Data is ranked 107th on the FORTUNE
500(R). The company and its subsidiaries operate centers in
Latin America, including Brazil and Chile.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 4, 2007, Moody's Investors Service affirmed Tech Data
Corporation's corporate family rating and probability of default
at Ba1; and US$350 Million Convertible Senior Unsecured Notes
due 2026 at Ba2. Moody's changed the outlook to stable from
negative.
===============
C O L O M B I A
===============
GMAC LLC: Fitch Chips Ratings and Removes Negative CreditWatch
--------------------------------------------------------------
Fitch Ratings has downgraded and removed from Rating Watch
Negative the long-term Issuer Default Rating GMAC LLC and
related subsidiaries to 'BB' from 'BB+'. Fitch has also
affirmed the 'B' short-term ratings. Fitch originally placed
GMAC on Rating Watch Negative on Nov. 14, 2007. The Rating
Outlook is Negative. Approximately US$100 billion of unsecured
debt is affected by this action.
The downgrade of GMAC's LT IDR reflects in part the company's
financial support for its wholly-owned subsidiary ResCap, which
generated considerable losses in 2007. In addition, the
downgrade reflects Fitch's view that some of the operating
momentum, in the form of increased business diversification from
General Motors, that was expected from GMAC's separation from GM
has lessened due to the broad challenges the company is facing.
The Negative Outlook reflects the more challenging economic and
financing environment that GMAC will face throughout 2008.
Fitch believes that while the automotive finance and insurance
businesses produced acceptable results in 2007, this will likely
weaken in 2008 due to increased funding and credit costs, and
lower new car sales. Rising funding cost primarily reflect
weaker execution from securitization transactions, while rising
credit costs reflect Fitch's view that both default frequency
and loss severity will increase in the retail automotive finance
portfolio.
Fitch may downgrade ratings further if automotive credit quality
were to weaken beyond historical averages for GMAC or if GMAC
were to provide additional and material financial support to
ResCap.
Fitch has downgraded these ratings and removed them from Rating
Watch Negative:
GMAC LLC
GMAC International Finance B.V.
GMAC Bank GmbH
GMAC Canada Ltd.
General Motors Acceptance Corp. of Canada Ltd.
General Motors Acceptance Corp. of Australia
-- Long-term IDR to 'BB' from 'BB+';
-- Senior debt to 'BB' from 'BB+'.
General Motors Acceptance Corp. (N.Z.) Ltd.
-- Long-term IDR to 'BB' from 'BB+'.
Fitch has also affirmed these ratings:
GMAC LLC
GMAC International Finance B.V.
GMAC Bank GmbH
General Motors Acceptance Corp. of Canada Ltd.
General Motors Acceptance Corp. of Australia
GMAC Australia (Finance) Ltd.
General Motors Acceptance Corp. (U.K.) Plc
General Motors Acceptance Corp. (N.Z.) Ltd.
-- Short-term IDR 'B';
-- Short-term debt 'B'.
GMAC Canada Ltd.
-- Short-term IDR 'B'.
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.
SOLUTIA INC: Posts US$208 Mil. Net Loss for Year Ended Dec. 31
--------------------------------------------------------------
Solutia Inc., disclosed in its annual report for fiscal year
ended Dec. 31, 2007, that it has a net loss of US$208,000,000 on
net sales of US$3,535,000,000, compared with a net income of
US$2,000,000 on net sales of US$2,795,000,000 in 2006, and net
income of US$8,000,000 on net sales of US$2,645,000,000 in 2005.
Solutia held US$173,000,000 in cash at Dec. 31, 2007, compared
to US$150,000,000 in 2006, and US$107,000,000 in 2005.
Solutia's net cash flow was US$23,000,000 in 2007; US$43,000,000
in 2006, and a negative cash flow of US$8,000,000 in 2005.
Deloitte & Touche LLP, the Debtors' auditors, says that the
financial statements have been prepared assuming that the
company will continue as a going concern. However, the
company's recurring losses from operations, negative working
capital, and shareholders' deficit raise substantial doubt about
its ability to continue as a going concern, Deloitte notes. The
financial statements do not include adjustments that might
result from the outcome of the uncertainty.
A full-text copy of Solutia's 2007 Annual Report is available
for free at http://ResearchArchives.com/t/s?28b6
As of Dec. 31, 2007, the Debtors' balance sheet showed total
assets of US$2,640,000,000, total current liabilities of
US$1,627,000,000, total liabilities not subject to compromise of
US$2,313,000,000, liabilities subject to compromise of
US$1,922,000,000, and shareholders' deficit of US$1,595,000,000.
Cash and cash equivalents at the end of the year were
US$173,000,000.
About Solutia Inc.
Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,
engage in the manufacture and sale of chemical-based materials,
which are used in consumer and industrial applications
worldwide. Solutia has operations in Malaysia, China,
Singapore, Belgium, and Colombia.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03-
17949). When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On Oct. 22,
2007, the Debtor re-filed a Consensual Plan & Disclosure
Statement and on Nov. 29, 2007, the Court confirmed the Debtors'
Consensual Plan. Solutia emerged from chapter 11 protection
Feb. 28, 2008. (Solutia Bankruptcy News, Issue No. 120;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter-Latin America on
March 5, 2008, Standard & Poor's Ratings Services raised its
corporate credit rating on Solutia Inc. to 'B+' from 'D',
following the company's emergence from bankruptcy on Feb. 28,
2008, and the implementation of its financing plan. The outlook
is stable.
S&P also affirmed its 'B+' rating and '3' recovery rating on
Solutia's proposed senior secured term loan. In addition, S&P
assigned its 'B-' rating to Solutia's $400 million unsecured
bridge loan facility. S&P also withdrew its 'B-' rating on the
proposed US$400 million unsecured notes, which have been
replaced by the bridge facility in Solutia's capital structure.
SOLUTIA INC: Provides Status of Adversary Proceedings
-----------------------------------------------------
Solutia Inc. disclosed in its 2007 annual report on Form 10-K
submitted to the U.S. Securities and Exchange Commission that
due to the size and nature of its business, it is party to
numerous legal proceedings.
According to Rosemary L. Klein, Solutia's senior vice president,
general counsel and secretary, most of these proceedings have
arisen in the ordinary course of business and involve claims for
money damages.
(1) Commitment Parties Adversary Proceeding
On Feb. 6, 2008, the Debtors filed a complaint against
Citigroup Global Markets Inc., Goldman Sachs Credit Partners,
L.P., and Deutsche Bank Securities Inc., to require the lenders
to meet their commitment under the Exit Financing Facility
Commitment Letter that has been approved by the Court.
On Feb. 25, the parties reached an agreement on the terms of
a revised exit financing package, which was approved by the
Court on Feb. 26. The Debtors' Effective Date is Feb. 28.
(2) JPMorgan Adversary Proceeding
JPMorgan, as indenture trustee for debentures due 2027 and 2037,
filed a complaint against Solutia asserting causes of action
principally seeking declaratory judgment to establish the
validity and priority of the purported security interest of the
holders of the 2027 and 2037 Debentures. The Court ruled in
favor of Solutia that the 2027/2037 Debentures were properly de-
securitized under the express terms of the Prepetition Indenture
and its related agreements.
JPMorgan, the Ad Hoc Committee of Solutia Noteholders and
individual Noteholders controlling at least US$300 in principal
amount of the 2027/2037 Notes have agreed to stay their appeals
to the Adversary Proceeding in consideration for the
Noteholders' treatment under the the Debtors' confirmed Fifth
Amended Joint Plan of Reorganization.
The Plan provides that the adversary proceeding will be deemed
dismissed and withdrawn with prejudice on the effective date of
the Plan.
(3) Equity Committee Adversary Proceeding
The Official Committee of Equity Security Holders filed a
complaint against, and objections to the proofs of claim filed
by, Pharmacia Corporation and Monsanto Company in the Debtors'
Chapter 11 cases. The complaint alleged, among other things,
that Solutia's spin off from Pharmacia was a fraudulent transfer
because Pharmacia forced Solutia to assume excessive liabilities
and insufficient assets such that Solutia was destined to fail
from its inception.
The Equity Committee has agreed to stay the adversary proceeding
in consideration for the treatment given to Equity Holders under
the Plan. The Plan provides that they Adversary Proceeding will
be deemed dismissed and withdrawn with prejudice on the
Effective
Date.
(4) BNY Claim
Solutia has filed an objection to the claim of Bank of New York,
as indenture trustee for the 2009 Notes, seeking disallowance of
the portion of the claim that represented original issue
discount that would remain unearned as of the Effective Date.
BNY opposed the disallowance, and further asserted that the
allowed amount of the Claim should include damages arising from,
among other things, Solutia's proposed payment of the Claim
before the stated maturity of the 2009 Notes.
The Court recently approved a settlement with BNY and the 2009
Noteholders, whereby the 2009 Noteholders will receive
US$220,500,000 in cash, plus all accrued but unpaid interest
through the Effective Date.
Ms. Klein relates that Solutia is also party to around 14 legal
proceedings outside the Debtors' Chapter 11 cases.
A full-text copy of Solutia's 2007 Annual Report is available
for free at http://ResearchArchives.com/t/s?28b6
About Solutia Inc.
Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,
engage in the manufacture and sale of chemical-based materials,
which are used in consumer and industrial applications
worldwide. Solutia has operations in Malaysia, China,
Singapore, Belgium, and Colombia.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03-
17949). When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on Nov. 29, 2007, the Court confirmed
the Debtors' Consensual Plan. Solutia emerged from chapter 11
protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No.
120; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter-Latin America on
March 5, 2008, Standard & Poor's Ratings Services raised its
corporate credit rating on Solutia Inc. to 'B+' from 'D',
following the company's emergence from bankruptcy on
Feb. 28, 2008, and the implementation of its financing plan.
The outlook is stable.
S&P also affirmed its 'B+' rating and '3' recovery rating on
Solutia's proposed senior secured term loan. In addition, S&P
assigned its 'B-' rating to Solutia's $400 million unsecured
bridge loan facility. S&P also withdrew its 'B-' rating on the
proposed US$400 million unsecured notes, which have been
replaced by the bridge facility in Solutia's capital structure.
SOLUTIA INC: DuPont Disputes Need to Reexamine BDO's Report
-----------------------------------------------------------
E.I. DuPont de Nemours and Company, Inc., questions the intent
of Solutia Inc. and its debtor-affiliates to reexamine the
Aug. 24, 2007 report of their third-party auditor BDO Seidman,
LLP's, relative to DuPont's request for payment of a
US$1,394,718 administrative claim.
The Debtors objected to DuPont's payment request on the basis
that they need to conduct unspecified discovery for unspecified
reasons, Alan L. Hill, Esq., at Phillips Lytle LLP, in New York,
representing DuPont, says. The Debtors did not set forth any
specific reason why BDO Seidman's report should be reexamined,
he says.
Mr. Hill tells the Court that the third-party audit mechanism is
set forth in the postpetition Second Amendment to the Contract
dated March 1, 2006. The underlying contract was assumed by the
Debtors during their Chapter 11 cases. The specific terms of
the third party audit were established by the Debtors pursuant
to a letter dated March 31, 2006. He asserts that there is no
reason to justify allowing the Debtors a "second bite at the
apple with respect to a contractual provision that they freely
entered into" after the the bankruptcy filing.
Moreover, the BDO Report does exactly what Solutia requested.
It examines each provision of the "Meet or Release Clause" of
the Contract in detail and provides a reason why each required
provision is either met or not met. The BDO Report concludes
that "Solutia [Inc.] did not comply with the terms of the Meet
or Release Clause of the Contract," Mr. Hill says.
Furthermore, the BDO Report was issued nearly six months ago.
At no time before the filing of DuPont's Motion did the Debtors
take any action to challenge the findings of the audit. It was
the Debtors' obligation to challenge the report if they thought
it was deficient as a matter of law, and they made no timely
effort to do so, Mr. Hill points out. Solutia's response
appears to be a delay tactic instead of a bona-fide objection to
the merits of DuPont's claim, he contends.
Solutia Challenges DuPont's Claims
As reported in the Troubled Company Reporter on Feb. 15, 2008
E.I. DuPont de Nemours and Company, Inc., sought payment of a
US$1,394,718 administrative claim, based on a contract pursuant
to which DuPont sold certain product on an exclusive basis to
Solutia Inc.
Representing the Debtors, Thomas L. Kent, Esq., at Paul,
Hastings, Janofsky & Walker LLP, in New York, stated that
DuPont's Claim is invalid because DuPont's basis for the Claim
is without merit. He insisted that Solutia complied with the
requirements of the parties' contract and the second amendment
to that contract is not "null and void."
Until the Debtors have an opportunity to conduct discovery and
have an opportunity to challenge Dupont's Claim, the U.S.
Bankruptcy Court for the Southern District of New York should
not allow it, Mr. Kent asserted. In the alternative, the
Debtors asked the Court to set a discovery schedule to allow the
Debtors to collect the necessary information to challenge BDO
Seidman's finding.
About Solutia Inc.
Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE:
SOA-WI) -- http://www.solutia.com/-- and its subsidiaries,
engage in the manufacture and sale of chemical-based materials,
which are used in consumer and industrial applications
worldwide. The company operates globally with approximately
6,000 employees in more than 60 countries that includes
Malaysia, China, Singapore, Belgium, and Colombia.
The company and 15 debtor-affiliates filed for chapter 11
protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03-
17949). When the Debtors filed for protection from their
creditors, they listed US$2,854,000,000 in assets and
US$3,223,000,000 in debts.
Solutia is represented by Richard M. Cieri, Esq., Jonathan S.
Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis
LLP, in New York, as lead bankruptcy counsel, and David A.
Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders
LLP, in St. Louis Missouri, as special counsel. Trumbull Group
LLC is the Debtor's claims and noticing agent. Daniel H.
Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq.,
at Akin Gump Strauss Hauer & Feld LLP represent the Official
Committee of Unsecured Creditors, and Derron S. Slonecker at
Houlihan Lokey Howard & Zukin Capital provides the Creditors'
Committee with financial advice. The Official Committee of
Retirees of Solutia, Inc., et al., is represented by Daniel D.
Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq.,
at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and
Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott
Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in
Birmingham, Alabama.
On Feb. 14, 2006, the Debtors filed their Reorganization Plan &
Disclosure Statement. On May 15, 2007, they filed an Amended
Reorganization Plan and on July 9, 2007, filed a 2nd Amended
Reorganization Plan. The Bankruptcy Court approved the Debtors'
amended Disclosure Statement on Oct. 19, 2007. On
Oct. 22, 2007, the Debtor re-filed a Consensual Plan &
Disclosure Statement and on Nov. 29, 2007, the Court confirmed
the Debtors' Consensual Plan. Solutia emerged from chapter 11
protection Feb. 28, 2008. (Solutia Bankruptcy News, Issue No.
120; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter on March 4, 2008,
Standard & Poor's Ratings Services raised its corporate credit
rating on Solutia Inc. to 'B+' from 'D', following the company's
emergence from bankruptcy on Feb. 28, 2008, and the
implementation of its financing plan. The outlook is stable.
S&P also affirmed its 'B+' rating and '3' recovery rating on
Solutia's proposed senior secured term loan. In addition, S&P
assigned its 'B-' rating to Solutia's US$400 million unsecured
bridge loan facility. S&P also withdrew its 'B-' rating on the
proposed US$400 million unsecured notes, which have been
replaced by the bridge facility in Solutia's capital structure.
==================
C O S T A R I C A
==================
GRUPO M: Adverse Conditions Cue Moody's Ba3 Rating Withdrawal
-------------------------------------------------------------
Moody's Investors Service has withdrawn the Ba3 rating of Grupo
M Holding S.A.'s proposed US$150 million senior unsecured notes
due 2017, which have not been issued because of continued
adverse conditions in the global credit markets. Moody's has
also withdrawn the company's Ba3 corporate family rating because
there are no rated obligations outstanding.
Based in Alajuela, Costa Rica, Grupo M Holding S.A., a
privately-owned holding company, through its subsidiaries, is
the leading retailer of consumer electronics, home furniture,
home appliances, and telephone and computer equipment in Central
America. The company largely caters to low and medium income
customers to which it offers installment financing plans as an
integral part of its business. For fiscal year 2007, sales and
reported EBITDA reached about US$392 million and US$92 million,
respectively. The company has operations in Nicaragua,
Honduras, Guatemala and El Salvador.
SIRVA INC: 341 Meeting of Creditors Postponed Until April 20
------------------------------------------------------------
Diana G. Adams, the United States Trustee for Region 2, informs
parties-in-interest that the meeting of creditors of SIRVA,
Inc., and its debtor-affiliates will not be convened if the
Debtors' proposed plan of reorganization is confirmed prior to
April 20, 2008.
The U.S. Trustee appointed the Official Committee of Unsecured
Creditors in the Debtors' Chapter 11 cases on February 22, 2008.
The Sec. 341 Meeting of Creditors, which is required under
Section 341(a) of the Bankruptcy Code in all bankruptcy cases,
offers the opportunity for creditors to question a responsible
office of the Debtors under oath about the company's financial
affairs and operations that would be of interest to the general
body of creditors.
About SIRVA Inc.
Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets :
SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation
solutions to a well-established and diverse customer base. The
company handles all aspects of relocation, including home
purchase and home sale services, household goods moving,
mortgage services and home closing and settlement services.
SIRVA conducts more than 300,000 relocations per year,
transferring corporate and government employees along with
individual consumers. SIRVA's brands include Allied, Allied
International, Allied Pickfords, Allied Special Products, DJK
Residential, Global, northAmerican, northAmerican International,
Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA
Settlement. The company has operation in Costa Rica.
The company and 61 of its affiliates filed separate petitions
for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case
No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis,
L.L.P. is representing the Debtor. A Committee of Unsecured
Creditors has been appointed in the case. At its bankruptcy
filing, the company reported total assets of US$924,457,299 and
total debts of US$1,232,566,813 for the quarter ended
Sept. 30, 2007.
(Sirva Inc. Bankruptcy News, Issue No. 7; Bankruptcy Creditors'
Services Inc. http://bankrupt.com/newsstand/or 215/945-7000)
SIRVA INC: Allowed to Obtain US$150,000,000 of DIP Financing
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved, on a final basis, the debtor-in-possession credit
facility of Sirva Inc. and its debtor-affiliates, allowing them
to obtain up to US$150,000,000 of postpetition financing, to
provide for the Debtors' working capital, and for other general
corporate purposes.
The Court authorized the Debtors to enter into the Credit and
Guarantee Agreement, dated as of Feb. 6, 2008, with JPMorgan
Chase Bank, N.A., as administrative agent, and J.P. Morgan
Securities Inc., as arranger.
Judge James M. Peck found that the DIP Financing will be
necessary for the continuation of the Debtors' businesses and
preserve their going concern value. The terms of the DIP
Agreement are fair and reasonable, and reflect the Debtors'
exercise of prudent business judgment, Judge Peck ruled. All
objections to the entry of the Final DIP Order are overruled.
Without prejudice to the rights of any other party, the Debtors
stated that as of the Petition Date, they were indebted and
liable to prepetition lenders for US$511,000,000 in loans under
a US$600,000,000 Credit Agreement, dated as of Dec. 1, 2003.
Those loans include the 2008 Revolving Credit Loans, 2008 Swing
Line Loans, 2008 Reimbursement Obligations and the New Term
Loans.
The Debtors submitted that their obligations pursuant to the
Prepetition Credit Facility constitute legal, valid, and binding
obligations, and they release any defenses against the
Prepetition Lenders.
The liens and security interests granted to JPMCB, as
prepetition credit facility agent, are valid, perfected,
enforceable, and first priority, subject to permitted exceptions
under the Prepetition Credit Facility. Those liens are
subordinate only to liens and security interests granted to
secure the DIP Financing, as well as valid, perfected, and
unavoidable liens under the prepetition loan agreement, to the
extent that those liens are senior to JPMCB's liens on the
prepetition collateral.
The Court ruled that all loans made to the Debtors pursuant to
the DIP Agreement, and all other obligations owing to the DIP
Lenders, are deemed extended by the DIP Agent, the DIP Lenders,
and other affiliates in good faith, and will be protected
pursuant to Section 364(e) of the Bankruptcy Code.
The Debtors are authorized to make adequate protection payments
to the Prepetition Credit Facility lenders, to pay interest,
fees and expenses and to repay in full the 2008 Loans, and any
accrued and unpaid interest. No further approval of the Court
is required for amendments, waivers, consents or other
modifications to and under the DIP Agreement that do not shorten
the maturity of the loans, increase the commitments or interest
rates, change any event of default, or add or amend any
covenants to be materially more restrictive.
The Debtors are also authorized to pay non-refundable fees to
JPMCB, JPMSI, and the DIP Lenders pursuant to the Fee Letter,
dated January 29, 2008, among SIRVA, Inc., JPMCB and the JPMSI,
the Incremental Commitment Letter, dated February 1, 2008, among
SIRVA and the DIP Lenders, and the DIP Agreement.
Except to the extent set forth in respect of a "carve-out," the
DIP Obligations will constitute allowed senior administrative
claims against the Debtors, with priority over all
administrative expenses, adequate protection claims and other
claims, whether those expenses or claims may become secured.
The Superpriority Claims will be payable from, and have recourse
to, the prepetition and postpetition property of the Debtors,
excluding the avoidance actions and their proceeds.
The Carve-Out is:
(i) all fees required to be paid to the Clerk of the Court
and to the Office of the U.S. Trustee, plus interest at
the statutory rate;
(ii) up to US$250,000 fees and expenses incurred by a
trustee; and
(iii) following a notice by the DIP Agent in the event of a
default under the DIP Agreement, the payment of accrued
and unpaid professional fees and expenses not exceeding
US$5,000,000, incurred by the Debtors and any statutory
committee appointed in the bankruptcy cases, and
allowed by the Court.
The Carve-Out will not pay for professional fees and expenses
incurred in connection with the initiation or prosecution of any
claims, causes of action, adversary proceedings or other
litigation against the DIP Agent, the DIP Lenders, the
Prepetition Credit Facility Lenders or the Prepetition Credit
Facility Agent, but may be available to cover investigation and
diligence professional fees and expenses for the Committee. So
long as no Trigger Notice is delivered, the Carve-Out will not
be reduced by payment of Court-allowed fees and expenses.
As security for the DIP Obligations, certain security interests
and liens are granted to the DIP Agent, for its benefit and the
benefit of the DIP Lenders, subject only to the Carve-Out.
The Court ratified the full payment under the Prepetition Credit
Facility outstanding as of the Petition Date, of the 2008 Loans
for US$45,300,000 in the aggregate, and the New Term Loans for
US$20,000,000 with accrued and unpaid interest thereon, from
proceeds of the DIP Financing. All payments of interest,
principal or other amounts in respect of the 2008 Loans will be
made to the Prepetition Credit Facility Agent.
The Debtors will use the proceeds of the DIP Financing and the
Prepetition Collateral solely as provided by the Final DIP Order
and the DIP Agreement. The Loans under the DIP Agreement,
Collateral, Prepetition Collateral, including the Cash
Collateral, or the Carve-Out may not be used to object to any
amount due under the DIP Agreement or the Prepetition Loan
Agreement or assert any claims, or prevent the DIP Agent's or
the Prepetition Credit Facility Agent's enforcement of the DIP
Agreement or the the Prepetition Loan Agreements.
The Committee may use up to US$75,000 of the Prepetition
Collateral, including the Cash Collateral, the Loans under the
DIP Agreement, the Collateral, or the Carve-Out, to investigate
the validity, enforceability or priority of the Prepetition
Credit Facility Obligations or the Prepetition Credit Facility
Agent's liens on the Prepetition Collateral, or to investigate
any claims and defenses or other causes action against the
Prepetition Credit Facility Agent or the Prepetition Credit
Facility Lenders. Additionally, the retained professionals in
the Debtors' bankruptcy cases may be paid up to US$450,000,
prior to the effective date of any plan of reorganization.
To the extent that JPMCB, in its role as Prepetition Credit
Facility Agent, is listed as loss payee under the Debtors'
insurance policies, JPMCB, in its role as DIP Agent, is also
deemed to be the loss payee under the Debtors' insurance
policies. JPMCB will act in that capacity, and distribute any
proceeds from those insurance policies, first to the full
payment of the DIP Obligations, and second, to the payment of
the Prepetition Credit Facility Obligations.
Conversion to Exit Facility
Upon the satisfaction or waiver of the conditions precedent to
effectiveness set forth in the Exit Facility Agreement,
automatically and without further Court order, (i) the Debtors
and Guarantors, each in their capacity as reorganized Debtors,
are authorized to assume all obligations in respect of the loans
and all other monetary obligations under the DIP Agreement, (ii)
each loan under the DIP Agreement will be deemed to have been
continued as a loan under the Exit Facility Agreement, (iii)
each DIP Lender will be deemed to be an Exit Lender under the
Exit Facility Agreement, (iv) the DIP Documents will be deemed
to have been superseded and replaced, and deemed amended and
restated in the form of, the Exit Facility Agreement, and (v)
the commitments under the DIP Agreement will be deemed to have
been terminated.
The Court grants liens on, and security interests in, the
property of certain of the reorganized Debtors to secure the
obligations outstanding under, and the entry into, the Exit
Facility Agreement.
The Court also authorized the Debtors to pay the fees and
reimburse the expenses of the Exit Arranger, the Exit Agent and
the Exit Lenders.
In accordance with the DIP Agreement, any order entered by the
Court confirming the Reorganization Plan will provide that upon
the Conversion Date:
(i) the Debtors and the reorganized Debtors are authorized
to execute and deliver the Exit Facility Agreement;
(ii) the Exit Facility Agreement will constitute the legal,
valid and binding obligations of the reorganized
Debtors parties, enforceable in accordance with their
terms;
(iii) the Liens granted by the Court will continue to secure
all obligations under the Exit Facility Documents, and
will not be amended or discharged by confirmation of
the Reorganization Plan; and
(iv) no obligation, payment, transfer, or grant of security
under the Exit Facility Agreement will be stayed,
restrained, voidable, or recoverable under the
Bankruptcy Code, or under any applicable law or subject
to any defense or counterclaim.
A copy of the Debtors' Final DIP Order is available for free at:
http://bankrupt.com/misc/SirvaFinalDIPOrder.pdf
About SIRVA Inc.
Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets :
SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation
solutions to a well-established and diverse customer base. The
company handles all aspects of relocation, including home
purchase and home sale services, household goods moving,
mortgage services and home closing and settlement services.
SIRVA conducts more than 300,000 relocations per year,
transferring corporate and government employees along with
individual consumers. SIRVA's brands include Allied, Allied
International, Allied Pickfords, Allied Special Products, DJK
Residential, Global, northAmerican, northAmerican International,
Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA
Settlement. The company has operation in Costa Rica.
The company and 61 of its affiliates filed separate petitions
for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case
No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis,
L.L.P. is representing the Debtor. A Committee of Unsecured
Creditors has been appointed in the case. At its bankruptcy
filing, the company reported total assets of US$924,457,299 and
total debts of US$1,232,566,813 for the quarter ended
Sept. 30, 2007.
(Sirva Inc. Bankruptcy News, Issue No. 7; Bankruptcy Creditors'
Services Inc. http://bankrupt.com/newsstand/or 215/945-7000)
SIRVA INC: Gets Permission to Use Lenders' Cash Collateral
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York,
on a final basis, authorized Sirva Inc. and its debtor-
affiliates to use their lenders' cash collateral, and all other
prepetition collateral for general corporate purposes.
The Debtors are authorized to provide adequate protection to the
lenders and the agent under their credit agreement, dated as of
Dec. 1, 2003, in an amount equal to the aggregate diminution in
value of the Prepetition Collateral, including diminution
resulting from the sale, lease or use of Cash Collateral, among
others.
The Debtors have a US$511,000,000 senior credit facility through
SIRVA Worldwide, Inc. A related credit agreement with JPMorgan
Chase Bank, N.A., and a consortium of other lenders, consists of
a US$175,000,000 revolving credit facility and a US$336,000,000
term loan obligation, and is collateralized by substantially all
of the assets of SIRVA Worldwide, SIRVA, Inc., and certain of
the SIRVA Worldwide's direct and indirect domestic subsidiaries.
Consent to use of Cash Collateral also terminates if the DIP
Financing terminates or the Debtors do not make the Prepetition
Adequate Protection Payments.
All of the Debtors' cash constitute the Debtors' Cash
Collateral,
including:
-- cash and other amounts on deposit or maintained by the
Debtors in any account with any Prepetition Lender, other
than cash in which the Cash Management Banks have an
interest; and
-- any cash proceeds of the disposition of any Prepetition
Collateral.
About SIRVA Inc.
Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets :
SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation
solutions to a well-established and diverse customer base. The
company handles all aspects of relocation, including home
purchase and home sale services, household goods moving,
mortgage services and home closing and settlement services.
SIRVA conducts more than 300,000 relocations per year,
transferring corporate and government employees along with
individual consumers. SIRVA's brands include Allied, Allied
International, Allied Pickfords, Allied Special Products, DJK
Residential, Global, northAmerican, northAmerican International,
Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA
Settlement. The company has operation in Costa Rica.
The company and 61 of its affiliates filed separate petitions
for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case
No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis,
L.L.P. is representing the Debtor. A Committee of Unsecured
Creditors has been appointed in the case. At its bankruptcy
filing, the company reported total assets of US$924,457,299 and
total debts of US$1,232,566,813 for the quarter ended
Sept. 30, 2007.
(Sirva Inc. Bankruptcy News, Issue No. 7; Bankruptcy Creditors'
Services Inc. http://bankrupt.com/newsstand/or 215/945-7000)
SIRVA INC: Sells U.K. and Ireland Operations to TEAM Group
----------------------------------------------------------
SIRVA, Inc., reached an agreement to sell its moving services
operations in the United Kingdom and the Republic of Ireland to
a company managed by The TEAM Group, Europe's leading corporate
international moving company and a member of the Allied
International moving network. The transaction is subject to
certain closing conditions, including the receipt of regulatory,
court and other approvals.
The sale includes Pickfords, the U.K.'s leading moving and
storage business, and Allied Pickfords' international moving
services business in the U.K. TEAM will manage Pickfords without
any interruption to service to existing and future customers.
SIRVA's relocation operations in the U.K. and Continental Europe
are not part of the transaction. SIRVA remains committed to a
continued presence in the relocation market in Europe. SIRVA
will also continue to own and operate the Allied Pickfords
business in Australia, New Zealand and Asia.
The sale reflects SIRVA's strategy of pursuing a business model
in which the Company works with representatives around the world
to ensure that Allied network customers receive seamless, high-
quality service to and from virtually any country in the world,
SIRVA said in a statement.
Last year, SIRVA sold its moving services operations in 13
European countries to TEAM, which subsequently became the Allied
network's representative in those countries. Since then, the
two companies have worked together successfully to offer
customers integrated international moving services.
By selling the U.K. business to an existing Allied
representative, SIRVA further strengthens the Allied network and
ensures service to customers -- either relocating to the U.K. or
moving within the country -- will be unaffected.
"We are pleased to announce this transaction, which allows SIRVA
to focus on our core businesses. As TEAM are already members of
the Allied network in Europe, SIRVA ensures customers in the
U.K. will continue to receive global coverage and the highest
levels of service; and Pickfords becomes part of another trusted
organization," said SIRVA President and Chief Executive Officer
Robert W. Tieken.
Cees Zeevenhooven, TEAM Allied Group CEO, said, "Pickfords has a
great heritage, and we look forward to growing the company.
This transaction builds on the process which we began one year
ago to increase our presence in the European marketplace, and we
anticipate expansion of the TEAM Allied network throughout the
continent."
The TEAM Group is Europe's leader and one of the world's largest
international moving and relocation companies, with over 40
operations in 14 countries. The Group employs over 900
specialist staff and provides a comprehensive range of
innovative cost-effective mobility solutions.
About Sirva Inc.
Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets :
SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation
solutions to a well-established and diverse customer base. The
company handles all aspects of relocation, including home
purchase and home sale services, household goods moving,
mortgage services and home closing and settlement services.
SIRVA conducts more than 300,000 relocations per year,
transferring corporate and government employees along with
individual consumers. SIRVA's brands include Allied, Allied
International, Allied Pickfords, Allied Special Products, DJK
Residential, Global, northAmerican, northAmerican International,
Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA
Settlement. The company has operations in Costa Rica.
The company and 61 of its affiliates filed separate petitions
for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case
No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis,
L.L.P. is representing the Debtor. An official Committee of
Unsecured Creditors has been appointed in this case. When the
Debtors filed for bankruptcy, it reported total assets of
US$924,457,299 and total debts of US$1,232,566,813 for the
quarter ended Sept. 30, 2007.
(Sirva Inc. Bankruptcy News, Issue No. 8; Bankruptcy Creditors'
Services Inc. http://bankrupt.com/newsstand/or 215/945-7000)
===================================
D O M I N I C A N R E P U B L I C
===================================
TRICOM SA: Disclosure Statement Hearing Scheduled on April 15
-------------------------------------------------------------
The Hon. Stuart Bernstein of the U.S. Bankruptcy Court for the
Southern District of New York will convene a hearing on April
15, 2008, to consider the adequacy of the disclosure statement
explaining Tricom S.A. and its U.S. affiliates' Plan of
Reorganization, and to confirm the plan, Christopher Scinta of
Bloomberg News reports.
As reported in the Troubked Company Reporter on March 3, 2008,
the Debtors told the Court that under a pre-packaged plan of
reorganization, which was approved by 97% of creditors allowed
to vote, largest secured creditor Credit Suisse Group, which
holds US$26 million in claims, will receive new secured debt of
US$25.5 million at 11% interest. Unsecured financial creditors
would receive pro rata shares in a newly formed holding company
and US$105 million of secured notes. General unsecured
creditors will be paid 100%.
According to Bloomberg citing the Debtors' counsel, Manuel
Larren Nashelsky, existing holders of interest in Tricom, under
the plan, will own less than 1% of the stock. Mr. Nashelsky
said that U.S. bankruptcy laws is different from Dominican
bankruptcy laws, which allows shareholders to retain some stake
in the company.
Bloomberg says that under Dominican law, regardless of U.S.
Court rulings, the Debtors' assets will be frozen and goods will
be embargoed if creditors aren't paid on time.
At a hearing yesterday, the judge scheduled April 15 as the
deadline for the Debtors to submit their full financial
condition, Bloomberg relates.
The judge also approved the Debtors' "first day motions,"
granting them to pay prepetition wages and benefits to their
employees, to pay US$2 million in taxes, to pay claims from
vendors, and to honor prepaid call cards the Debtors' sold,
according to Bloomberg.
Plan Objection
Bancredit Cayman Ltd., an affiliate bank controlled by Tricom's
largest shareholder Manuel Arturo Pellerano, opposes to the
plan, contending that its claims are not categorized in the
plan, Bloomberg recounts. Timothy Brock, counsel for Bancredit,
told the Court that Mr. Pellerano looted US$120 million from
banks he controlled, including Bancredit, and allegedly gave the
money to Tricom. The bank's counsel is asking the Court to
appoint an examiner to conduct an inquiry on Mr. Pellerano and
Tricom.
About Tricom
Headquartered in Santo Domingo, Dominican Republic, Tricom S.A.
-- http://www.tricom.net/-- provides telecom services. The
company operates its own local access network and a digital
cellular system. It also operates its own fiber-optic cables and
switches based in the United States. The company and its U.S.
affiliates filed for Chapter 11 protection on Feb. 29, 2008
(Bankr. S.D. N.Y. Case No. 08-10720). Larren M. Nashelsky,
Esq., at Morrison & Foerster LLP, in New York City, represent
the Debtors. When the Debtors' filed for protection from their
creditors, they listed total assets of US$327,600,000 and total
debts of US$764,600,000.
=============
E C U A D O R
=============
PETROECUADOR: Lifts Force Majeure on Oil Exports
------------------------------------------------
A Petroecuador spokesperson told Reuters that the company has
lifted its force majeure on oil exports.
As reported in the Troubled Company Reporter-Latin America on
March 5, 2008, Petroecuador declared force majeure to suspend
oil supply obligations after a landslide caused by rain ruptured
a pipeline, causing an oil spill into a swamp in a mountainous
region. Petroecuador's 160-man cleanup crew contained the 4,000
barrel oil spill caused when landslides hit the pipeline, which
transports almost 70% of the 511,000 barrels of crude produced
daily in Ecuador. Petroecuador completed the repairs to the
pipeline and restarted pumping.
A Petroecuador official told Reuters that a 360,000-barrel
shipment was the only delivery delayed during force majeure.
The lifting of force majeure will delay the 10 oil cargo
deliveries Petroecuador set this month, Petroecuador states.
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
PETROECUADOR: To End Renegotiation Talks With Petrobras & Repsol
----------------------------------------------------------------
Petroecuador will conclude oil contract renegotiation talks with
Petrobras and Repsol YPF before the March 8 deadline, Juan Pablo
Spinetto and Fred Pals at Bloomberg News reports, citing
Ecuadorian Oil Minister Galo Chiriboga.
As reported in the Troubled Company Reporter-Latin America on
Feb. 29, 2008, Minister Chiriboga said that Petroecuador expects
to reach a deal with foreign oil firms on the change in their
contracts by March 8. Ecuadorian President Rafael Correa gave
oil firms until March 8 to agree to the changes in their
contracts with Petroecuador. The government wants to convert
existing participation contracts into service provider
agreements. Oil companies have to agree to either getting paid
for the oil they'll extract from the ground, or pay the
government a 99% tax for windfall profits above contract prices.
Should the company opt not to accept either of the two changes,
they can leave the country and get paid for their investments to
date.
Minister Chiriboga commented to Bloomberg News, "We have made
progress [with the Petrobras and Repsol talks]. We already have
closed deals with two companies, and we hope to complete the
agreement with Repsol this week."
Ecuador wants at least US$1.7 billion in foreign investment
after the completion of the renegotiations, Bloomberg News
states, citing Minister Chiriboga.
About Repsol YPF
Repsol YPF, S.A., is an integrated oil and gas company engaged
in all aspects of the petroleum business, including exploration,
development and production of crude oil and natural gas,
transportation of petroleum products, liquefied petroleum gas
and natural gas, petroleum refining, petrochemical production
and marketing of petroleum products, petroleum derivatives,
petrochemicals and natural gas. Repsol YPF operates in over 30
countries.
About Petroleo Brasileiro
Petroleo Brasileiro S.A. aka Petrobras is a wholly owned
enterprise of the Brazilian Government, which is responsible for
all hydrocarbon activities in Brazil. The company is engaged in
a range of oil and gas activities. Petrobras operates in six
segments: exploration and production, supply, distribution, gas
and power, international and corporate.
About Petroecudor
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
PETROECUADOR: Unit Awards Piping Supply Contracts to Two Firms
--------------------------------------------------------------
Petroecuador's production unit Petroproduccion has awarded
contracts totaling US$55.3 million to Akira and Tenaris to
supply piping for the renovation of branch and secondary systems
between Amazon oilfields, Business News Americas reports.
According to Petroecuador, Panama's Akira was awarded a
US$30 million contract, while multinational Tenaris was awarded
a US$25.3 million contract.
BNamericas relates that Akira is given 120 days to deliver the
piping and Tenaris has up to 190 days.
Ecuador's energy and hydrocarbons investment fund Feiseh will
help fund the project, which is aimed at helping Petroproduccion
meet its goal of boosting production to 199,000 barrels per day
by year-end, from 171,858 barrels per day on March 3,
BNamericas states.
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
=================
G U A T E M A L A
=================
EXIDE TECHNOLOGIES: Moody's Ups US$200MM Credit Facility to Ba3
---------------------------------------------------------------
Moody's Investors Service affirmed the Corporate Family Rating
at Caa1 for Exide Technologies, Inc. but changed the outlook to
positive from stable. Moody's also raised the rating on the
company's asset based revolving credit facility to Ba3 from B1.
Moody's also affirmed ratings of the senior secured term loans,
at B1; and the senior secured junior-lien notes, at Caa1. The
Probability of Default remains Caa1.
The Caa1 Corporate Family Rating continues to reflect The
company's weak credit metrics balanced against operating
performance that is improving as a result of cost reduction
initiatives and successful pricing actions. While it benefits
from its geographic and customer diversity, the company remains
exposed to cyclical industry conditions, weather uncertainties,
and commodity pricing pressures.
The positive outlook reflects the company's progress in applying
customer price increases and improved operational efficiencies
which are reflected in the company's recent quarterly
performance. The company's recent performance further indicates
that price increases have taken hold and should further improve
the company's operating performance. The company's capacity to
generate free cash flow in the near term should be helped by
softer global lead pricing due to softer global economic
conditions. For the LTM period ending Dec. 30, 2007,
DEBT/EBITDA was approximately 6.2 and interest coverage
approximated 0.7. The company had US$71 million of cash on hand
at Dec. 30, 2007, and US$79 million of availability under its
revolving credit. A fixed charge covenant 1.1 becomes effective
if availability falls below US$40 million.
Ratings affirmed:
Exide Technologies Inc.:
-- Caa1 Corporate Family Rating;
-- Caa1 Probability of Default;
-- Caa1 (LGD3, 45%) rating of US$290 million of senior
secured junior-lien notes due March 2013;
Exide Technologies Inc. & Exide Global Holdings Netherlands CV:
-- B1 (LGD2, 16%) to the US$130 million senior secured term
loan at Exide Technologies, Inc.;
-- B1 (LGD2, 16%) to the US$165 million senior secured term
loan at Exide Global Holdings Netherlands CV.;
Ratings raised:
-- US$200 million asset based revolving credit facility, to
Ba3 from B1.
The last rating action was on April 26, 2007 when the senior
secured bank debt was rated.
In a January 2008 special comment, Moody's outlined the changes
to its Loss-Given-Default methodology to recognize the favorable
recovery experience of asset-based loans relative to other types
of senior secured first-lien loans. The terms of the company's
asset-based loans meet the eligibility requirements outlined in
the Special Comment and, therefore, its rating is Ba3, which is
one notch higher than would otherwise have been indicated by the
Loss-Given-Default waterfall.
About Exide Technologies
Headquartered in Alpharetta, Georgia, Exide Technologies
(NASDAQ: XIDE) -- http://www.exide.com/-- manufactures and
distributes lead acid batteries for transportation and
industrial applications worldwide.
The company has operations in 89 countries, including,
Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa
Rica, Ecuador, El Salvador, Guatemala, Panama, Paraguay, Peru,
Uruguay, Venezuela, Trinidad and Puerto Rico.
The company filed for chapter 11 protection on April 14, 2002
(Bankr. Del. Case No. 02-11125). Matthew N. Kleiman, Esq., and
Kirk A. Kennedy, Esq., at Kirkland & Ellis, represented the
Debtors in their successful restructuring. The Court confirmed
Exide's Amended Joint Chapter 11 Plan on April 20, 2004. The
plan took effect on May 5, 2004.
=========
H A I T I
=========
DYNCORP INT'L: Will Provide Support Services in Philippines
-----------------------------------------------------------
DynCorp International Inc. has been award a contract from the
U.S. Navy to provide support services for the Joint Special
Operations Task Force in the Republic of the Philippines. This
cost-plus-award-fee contract is valued at US$16,337,846 for a
seven-month base period and contains four 12-month options,
which if exercised will bring the estimated award value to more
than US$164 million.
The work to be performed includes all labor, supervision,
management, tools, materials, equipment, facilities,
transportation, incidental engineering, and other items
necessary to provide support services. Work will commence with
a three month phase-in period beginning on March 7, 2008. This
contract was competitively awarded by the U.S. Naval Facilities
Engineering Command, Pacific. Contingency Response Services LLC
was the incumbent under the previous contract, with DynCorp
International as the managing partner.
DynCorp International Inc. -- http://www.dyn-intl.com/-- (NYSE:
DCP) through its operating company DynCorp International LLC, is
a provider of specialized mission-critical technical services,
mostly to civilian and military government agencies. It
operates major programs in law enforcement training and support,
security services, base operations, aviation services and
operations, and logistics support worldwide. Headquartered in
Falls Church, Virginia, DynCorp International LLC has
approximately 14,600 employees worldwide including Haiti.
* * *
DynCorp still carries Standard and Poor's BB- rating assigned on
June 15, 2006. S&P said the outlook is stable.
=============
J A M A I C A
=============
AMERICAN AIRLINES: To Launch Kingston-Fort Lauderdale Service
-------------------------------------------------------------
American Airlines Inc. will begin new service between Kingston,
Jamaica, and Fort Lauderdale on June 1, subject to government
approval.
American Airlines will fly the route daily with its 148-seat
Boeing 737-800 aircraft, which feature 16 seats in First Class
and 132 seats in the Coach cabin.
"We have served Jamaica for more than 31 years and we are proud
to continue to grow the market with this new route," said Peter
Dolara, American’s Senior Vice President for Mexico, Caribbean
and Latin America. "This new flight complements our current
service from Miami, allowing increased visits to friends and
family, as well as continuing to develop trade and tourism in
Jamaica."
American Airlines currently serves Jamaica from Miami with three
daily flights to Kingston and two flights to Montego Bay. It
also serves Montego Bay daily from New York-JFK and five times
weekly from its Dallas/Fort Worth hub.
Based in Fort Worth, Texas, American Airlines Inc., a wholly
owned subsidiary of AMR Corp., operates the largest scheduled
passenger airline in the world with service throughout North
America, the Caribbean, Latin America, Europe and Asia. The
airline flies to Belgium, Brazil, Japan, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2007, Fitch Ratings affirmed the debt ratings of
American Airlines, Inc.'s Issuer Default Rating at 'B-' and
Secured bank credit facility at 'BB-/RR1'. Fitch says the
rating outlook has been revised to positive from stable.
===========
M E X I C O
===========
AMERICAN AXLE: Work Stoppage of UAW Members Still in Effect
-----------------------------------------------------------
The work stoppage implemented by American Axle & Manufacturing
Inc.'s United Auto Workers union-represented workforce at five
facilities in Michigan and New York remains in effect.
Approximately 3,650 associates are represented by the UAW at
these facilities.
At all times during these negotiations, AAM has honored its duty
to negotiate in good faith. AAM has not engaged in unfair labor
practices nor has AAM violated any labor laws. Allegations to
the contrary are simply not true.
AAM's UAW-represented facilities currently affected by the work
stoppage are not profitable and have not been for years.
AAM is profitable at other U.S. and non-U.S. locations,
principally because the cost structure at these operationally-
flexible regional manufacturing facilities is market
competitive.
AAM's recent proposals to the UAW feature the same changes
accepted by the UAW in agreements with its competitors in the
United States of America. This includes AAM's principal
driveline competitors in the domestic market: Dana Corp. and the
in-house axle-making operations of Ford Motor Co. and Chrysler
LLC.
Pursuant to the expired master agreement with the UAW, AAM's
all-in labor cost is currently US$73.48 per hour. This is
approximately three times the market rate of AAM's peers and
competitors in the United States.
"The market competitiveness of AAM's labor cost structure in the
United States of America is the key issue we are discussing with
the UAW," AAM Co-Founder, Chairman & CEO Richard E. Dauch said.
"AAM cannot accept terms and conditions that put the company at
a significant competitive disadvantage in the U.S. automotive
supply industry. AAM's negotiating team has never left the
bargaining table and is available at any time to resume
negotiations with the UAW."
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-Latin America on
Feb. 28, 2008, Standard & Poor's Ratings Services said that its
ratings on American Axle and Manufacturing Holdings Inc.
(BB/Negative/--) are not immediately affected by reports that
the United Auto Workers labor union, elected to conduct a work
stoppage at the expiration of its four-year master labor
agreement with American Axle.
As reported in the Troubled Company Reporter-Latin America on
Nov. 28, 2007, Moody's Investors Service affirmed American Axle
& Manufacturing Holdings, Inc.'s Corporate Family rating of Ba3
as well its 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.
BANCO CREDIT: Moody's Assigns D+ Bank Financial Strength Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a bank financial strength
rating of D+ to Banco Credit Suisse Mexico, S.A. At the same
time, Moody's assigned long- and short-term global local-
currency deposit ratings of A1/Prime-1, respectively. Moody's
also assigned long- and short-term foreign currency deposit
ratings of Baa1/Prime-2, as well as long- and short-term Mexican
National Scale ratings of Aaa.mx and MX-1, respectively. All
these ratings have stable outlooks.
According to Moody's, Banco Credit Suisse Mexico's D+ BFSR
reflects the bank's intrinsic financial strength excluding any
potential sources of parental support. The BFSR takes into
account the bank's limited scope business as reflected by its
trading and investment bank strategy. Y et, Moody's notes that
-- relative to its direct peer group -- the Mexican bank has
built an important market presence, and holds leading positions
in selected business lines in the local market.
The A1 local currency deposit rating assigned to Banco Credit
Suisse Mexico to a great extent incorporates Moody's assessment
of the probability of very high support that could be received
from its parent company, Credit Suisse (rated Aa1 / Prime-1,
with a stable outlook). Moody's notes that an integral part of
this support is the transfer of a significant portion of risks
related to the principal trading and investment banking
activities of Credit Suisse Mexico to other entities of the
Credit Suisse group. Credit Suisse Mexico's operation is
supported by its parent in the form of risk management policies,
product expertise and resources, as well as business model.
These ratings were assigned to Banco Credit Suisse Mexico, S.A.:
-- Bank Financial Strength Rating: D+
-- Long-term global local-currency deposits: A1
-- Short-term global local-currency deposits: Prime-1
-- Long-term foreign currency deposits: Baa1
-- Short-term foreign currency deposits: Prime-2
-- Mexican National Scale, long-term: Aaa.mx
-- Mexican National Scale, short-term: MX-1
-- Outlook: Stable
Headquartered in Mexico City, Banco Credit Suisse Mexico,
formerly known as Banco Credit Suisse First Boston (Mexico) SA,
is a subsidiary of the Credit Suisse Group.
CABLEMAS SA: Moody's Reviews B1 Rating Pending Televisa Approval
----------------------------------------------------------------
Moody's Investors Service has placed Cablemas, S.A. de C.V.'s B1
corporate family rating under review for possible upgrade
pending regulatory approval for Televisa (rated Baa1 stable) to
acquire a 49% equity stake of Cablemas.
Issues affected by Moody's action:
-- US$175 million of 9.375% Senior Unsecured Global Notes
due 2015.
"The rating review was prompted by Moody's expectation that
Televisa will shortly become an important shareholder of
Cablemas with a 49% or higher stake at its holding company,
Alvafig", said Moody's Senior Analyst Nymia Almeida. According
to Televisa, it has met the conditions imposed by the Mexican
anti-trust body, Cofeco, to receive authorization for the
acquisition of Cablemas. Thus, Televisa may soon convert its
loan to Cablemas' holding company into equity. Also, Moody's
believes that Cablemas, as the second largest cable TV company
in Mexico and because of its high-quality network, is a of
strategic importance to Televisa as part of its objective to
consolidate the cable TV industry and compete in the
telecommunications market.
Moody's ratings on Cablemas continue to reflect the company's
tight liquidity position, lack of free cash flow, strong
dependence on debt to finance building out its network and the
pressure on operating margins caused by high churn, at 2.5% for
video services and 4.3% for broadband services as of
September 2007. These risks are offset by the company's
position as Mexico's second largest cable TV operator with a 19%
national market share, its solid 40% adjusted operating margins
and the quality of its network (83% bidirectional). The company
has no material debt maturing before late 2012 (bullet payment
of US$50 million loan taken to fund the acquisition of Bestel)
or 2015 (B1-rated US$175 million global notes) and has low
leverage, with debt/Adjusted EBITDA of 2.5 times for the last
twelve month period ending on Sept. 30, 2007.
The rating review period will end with the announcement of
Cofeco's final resolution on the acquisition of Cablemas,
expected for April 2008.
Headquartered in Mexico City, Cablemas, is the second largest
Cable TV service providers in Mexico servicing over 770,200
video and 213,300 Internet subscribers as well as 34,400
telephony lines. As of September 2007, LTM revenues and EBITDA
amounted to US$237 million and US$102 million, respectively.
DURA AUTOMOTIVE: Court Approves 2008 Annual Bonus Plan
------------------------------------------------------
The Hon. Kevin Carey of the U.S. Bankruptcy Court for the
District of Delaware approved Dura Automotive Systems Inc. and
its debtor-affiliates' 2008 Annual Bonus Plan in its entirety
after finding that payments contemplated in the Bonus Plan
constitute transfers and obligations permitted by Section
503(c)(3) of the Bankruptcy Code.
Judge Carey ruled that every payment and distribution obligation
of the Debtors under the 2008 Bonus Plan will be treated as an
administrative expense pursuant to Section 503(b)(1)(A).
Judge Carey said that if the Debtors have not emerged from
Chapter 11 on or before July 31, 2008, it would determine
whether the delay in emergence has resulted from an inter-
creditor dispute. If emergence has not occurred on or before
July 31, no payments will be made under the 2008 Bonus Plan
without further Court order.
The compensation committee of the Debtors' board of directors
will formally review and approve the 2008 Bonus Plan prior to
any payments being made, provided that the Compensation
Committee will not modify the terms of the Bonus Plan without
further Court order.
The Debtors will make payments to participants in the 2008 Bonus
Plan in the discretion of the Debtors' management.
Judge Carey clarified that the Official Committee of Unsecured
Creditors' withdrawal of its objection to the Amended 2008 Key
Management Incentive Plan does not constitute an admission that
(i) the participants in the Bonus Plan are not "insiders" as the
term is defined in Section 101(31); and (ii) the Bonus Plan
constitutes a permitted "incentive" bonus program for insiders
under Section 503(c).
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan and
Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.
As of July 2, 2006, the Debtor had US$1,993,178,000 in total
assets and US$1,730,758,000 in total liabilities. The Debtors
have asked the Court to extend their plan filing period to
April 30, 2008.
(Dura Automotive Bankruptcy News, Issue No. 47; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
DURA AUTOMOTIVE: Court Okays US$2 Mln Nyloncraft Settlement Pact
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
a settlement among Nyloncraft Inc. and Dura Automotive Systems
Inc. and its debtor-affiliates. Pursuant to the settlement,
Nyloncraft will pay about US$2 million to end its obligations to
continue paying principal and interest on a US$6 million
subordinated notes it issued to the Debtors when Nyloncraft
bought the Debtors' plastics business for US$41 million in
January 2002.
As reported in the Troubled Company Reporter on Feb. 8, 2008,
shortly after the Debtors' bankruptcy filing, they were informed
that Nyloncraft was in financial covenant default with its
senior secured lenders, as well as under the Nyloncraft Note.
Nyloncraft would not be able to make further interest payments
to the Debtors under the Nyloncraft Note. Accordingly, during
the pendency of their Chapter 11 cases, the Debtors have not
received interest payments on the Nyloncraft Note, which
interest payments have accrued to approximately US$647,500
through Feb. 15, 2008. Nyloncraft was also unable to make the
principal payment required by the note on Feb. 28, 2007.
The Debtors and Nyloncraft conducted discussions over a
compromise of the Nyloncraft Note amount payable to the Debtors.
As a result of good-faith negotiations, the parties agree that
Nyloncraft will pay US$1,997,500 to the Debtors in exchange for
a release from obligations under the Nyloncraft Note.
Proceeds of the settlement will be applied in accordance with
the final revolver DIP order, the interim replacement term loan
DIP order, the revolver DIP facility, the applicable
postpetition financing documents, and the replacement term DIP
credit documents.
Upon receipt of the proceeds by the postpetition revolving loan
agents, any and all liens, replacement term DIP liens, or claims
encumbering the Nyloncraft note arising under or related to the
transactions referenced in or related to the DIP Orders, as well
as any and all Liens, Replacement Term DIP Liens or claims of
any other lenders against the Nyloncrafl Note, will be released.
Upon release of the Proceeds to the Debtors, the Debtors will
disburse the Proceeds in accordance with directions of the DIP
Agents.
Rochester Hills, Mich.-based DURA Automotive Systems Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar
products to the recreation vehicle and specialty vehicle
industries. DURA sells its automotive products to North
American, Japanese and European original equipment manufacturers
and other automotive suppliers.
The company has three locations in Asia -- China, Japan and
Korea. It has locations in Europe and Latin-America,
particularly in Mexico, Germany and the United Kingdom.
The Debtors filed for chapter 11 petition on Oct. 30, 2006
(Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq.,
Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan
Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel
for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors' co-
counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel.
Miller Buckfire & Co., LLC is the Debtors' investment banker.
Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and
balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors.
As of July 2, 2006, the Debtor had US$1,993,178,000 in total
assets and US$1,730,758,000 in total liabilities. The Debtors
have asked the Court to extend their plan filing period to
April 30, 2008.
(Dura Automotive Bankruptcy News, Issue No. 47; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
MEGA BRANDS: Former Owners Intend to Buy Back RoseArt Division
--------------------------------------------------------------
On Feb. 20, 2008, Lawrence and Jeffrey Rosen sent a letter to
Mega Brands expressing an interest in buying the RoseArt
Activity and Stationery divisions of Mega Brands, Inc.
The Rosens are the former owners of RoseArt Industries Inc., a
family business for over 80 years based in New Jersey. They
sold the company to Mega Brands in 2005.
The Rosens have proven success in the toy, stationery, activity
and craft industries. Each has over 30 years experience. They
grew the business to over US$325 million in sales. The Rosens
also have made over 15 successfulacquisitions.
Montreal, Canada-based MEGA Brands Inc. (TSE: MB) --
http://www.megabrands.com/-- designs, manufactures and markets
high quality toys and stationery products. Headquartered in
Montreal, the company has approximately 4,500 employees with
offices, manufacturing facilities or distribution centers in 14
countries. The company's products are sold in over 100
countries including Mexico.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 25, 2008, Standard & Poor's Ratings Services lowered its
corporate credit and bank loan ratings on Mega Brands Inc. to
'B' from 'B+'. The ratings remain on CreditWatch with negative
implications, where they were placed Nov. 9, 2007. The '3'
recovery rating on the bank loan is unchanged.
VISTA GOLD: Expects to Close US$32MM Convertible Note Offering
--------------------------------------------------------------
Vista Gold Corp. expects to close its brokered private placement
of up to US$32 million in aggregate principal amount of its
senior secured convertible notes reported on Feb. 12, 2008.
The company will use the net proceeds of the offering of the
Notes to finance the previously announced purchase of gold
processing equipment to be used at the Paredones Amarillos gold
project and to fund ongoing operations at the Paredones
Amarillos gold project in Mexico.
Vista Gold Corp. (TSX & Amex: VGZ), based in Littleton,
Colorado, evaluates and acquires gold projects with defined
gold resources. Additional exploration and technical studies
are undertaken to maximize the value of the projects for
eventual development. The corporation's holdings include the
Maverick Springs, Mountain View, Hasbrouck, Three Hills, Wildcat
projects and Hycroft mine, all in Nevada, the Long Valley
project in California, the Yellow Pine project in Idaho, the
Paredones Amarillos and Guadalupe de los Reyes projects in
Mexico, the Amayapampa project in Bolivia, and the Awak Mas
deposit in Indonesia.
* * *
As reported in the Troubled Company Reporter on April 1, 2004,
Vista Gold's independent auditors expressed doubt about the
company's ability to continue as a going concern after reviewing
its financial statements for the year ending Dec. 31, 2003.
Vista Gold continued to report US$2.2 Million net loss for the
three-month period ended Sept. 30, 2007, US$3.23 Million net
loss for three-month period ended June 30, 2007, and US$776,000
net loss for the three-month period ended March 31, 2007.
=======
P E R U
=======
QUEBECOR WORLD: Creditors' Committee Taps Mesirow as Advisor
------------------------------------------------------------
The Official Committee of Unsecured Creditors in the bankruptcy
case of Quebecor World Inc. and its debtor-affiliates seeks
permission from the U.S. Bankruptcy Court for the Southern
District of New York to retain Mesirow Financial Consulting,
LLC, as its financial advisors, nunc pro tunc to Feb. 1, 2008.
According to Madeleine Fequeire, director of Abitibi-
Consolidated Sales Corp. and co-chairperson of the Committee,
the panel needs assistance in collecting and analyzing financial
and other information in relation to the Debtors' chapter 11
cases.
Mesirow is a financial services firm headquartered in Chicago,
and is a primarily employee-owned, private company with more
than 1,100 employees working across the USA and Puerto Rico.
As financial advisor to the Committee, Mesirow is expected to:
(a) review reports or filings required by the Court or the
Office of the United States Trustee, including schedules
of assets and liabilities, statements of financial
affairs and monthly operating reports;
(b) review and analyze legal entity relationships, including
analyzing issues, which may be raised regarding
substantive consolidation and accounting for intercompany
transactions and balances;
(c) review the Debtors' financial information, including
analyzing cash receipts and disbursements, financial
statement items and proposed transactions for which
Bankruptcy Court approval is sought;
(d) review and analyze report regarding cash collateral and
any debtor-in-possession financing arrangements and
budgets;
(e) evaluate potential employee retention and severance;
(f) assist in identifying and implementing potential cost
containment opportunities;
(g) assist with identifying and implementing asset
redeployment opportunities;
(h) analyze assumption and rejection issues regarding
executory contracts and leases;
(i) review and analyze the Debtors' proposed business plans
and their business and financial condition generally;
(j) review and critique the Debtors' financial projections
and assumptions;
(k) assist in preparing documents necessary for confirmation;
(1) advise and assist the Committee in negotiations and
meetings with the Debtors, the bank lenders and other
stakeholders;
(m) advise on the tax consequences of proposed plans of
reorganization;
(n) assist with the claims resolution procedures, including
analyses of creditors' claims by type and entity;
(o) provide litigation consulting services and expert witness
testimony regarding confirmation issues, avoidance
actions or other matters; and
(p) provide any other functions as may be requested by the
Committee or its counsel to assist the Committee in the
Debtors' Chapter 11 cases.
Mesirow's current normal and customary hourly rates are:
Level Hourly Rates
----- ------------
Senior Managing Director,
Managing Director and Director US$650 - US$690
Senior Vice-President US$550 - US$620
Vice President US$450 - US$520
Senior Associate US$350 - US$420
Associate US$190 - US$290
Paraprofessional US$150
The Committee wants the Debtors to indemnify Mesirow from
liabilities and claims related to its engagement, except those
arising from the firm's gross negligence and willful misconduct.
Leon Szlezinger, managing director of Mesirow, says that his
firm is a "disinterested person" as that term is defined in
Section 101(14) of the Bankruptcy Code, and does not hold or
represent any interest adverse to the Debtors' estates or of any
class of creditors or equity security holders.
The firm can be reached at:
Leon Szlezinger, Managing Director
Mesirow Financial Consulting, LLC
350 North Clark Street
Chicago, IL 60610
Tel: (800) 453-0600
http://www.mesirowfinancial.com/
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail. In Canada it has 17
facilities in five provinces, through which it offers a mix of
printed products and related value-added services to the
Canadian market and internationally. The company has operations
in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the
British Virgin Islands.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In
March 2007, it sold its facility in Lille, France. Quebecor
World (USA) Inc. is its wholly owned subsidiary.
Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable
Justice Robert Mongeon oversees the CCAA case. Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case. Ernst & Young Inc. was appointed as Monitor.
On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.
The company has until May 20, 2008, to file a plan of
reorganization in the Chapter 11 case. The Debtors' CCAA stay
has been extended to May 12, 2008. (Quebecor World Bankruptcy
News, Issue No. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating
to the US$400 million super priority senior secured revolving
term loan facility of Quebecor World Inc. as a Debtor-in-
Possession. The related US$600 million super priority senior
secured term loan was rated Ba3 (together, the DIP facilities).
The RTL's better asset value coverage relative to the TL
accounts for the ratings'
differential.
QUEBECOR WORLD: Creditors' Panel Wants Jefferies & Co. as Banker
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in the bankruptcy
case of Quebecor World Inc. and its debtor-affiliates seeks
permission from the U.S. Bankruptcy Court for the Southern
District of New York to employ Jefferies & Company, Inc., as its
investment banker, nunc pro tunc to Feb. 5, 2008.
The Committee believes that the services of an investment banker
are necessary and appropriate to enable it to evaluate the
complex financial and economic issues raised by the Debtors'
reorganization proceedings and to effectively fulfill its
statutory duties. Madeleine Fequeire, director of Abitibi-
Consolidated Sales Corp. and co-chairperson of the Committee,
says that the Committee chose Jefferies because of the firm's
global expertise in providing investment banking services to
debtors and creditors in restructurings and distressed
situations.
Jefferies & Company, Inc., is an investment banking firm with
its principal office located at 520 Madison Avenue, 12th Floor
in New York. Together with its subsidiaries, Jefferies Group
has approximately 2,500 employees in 30 offices around the
world.
Under an engagement letter dated Feb. 5, 2008, Jefferies is
expected to:
(a) become familiar with and analyze the Debtors' business,
business plan operations, assets, strategic plan,
financial condition and prospects;
(b) provide a valuation analyses of the Debtors if requested,
the form of which will be as agreed upon by Jefferies and
the Committee, and provide expert testimony relating to
any valuation;
(c) advise the Committee on the current state of the
restructuring and capital markets;
(d) assist and advise the Committee in examining and
analyzing any potential or proposed strategy for
restructuring or adjusting the Debtors' outstanding
indebtedness or overall capital structure, whether
pursuant to a plan of reorganization, capital raise, M&A
transaction, a sale of assets or equity under section 363
of the Bankruptcy Code, a liquidation, or otherwise,
assisting the Committee in developing its own strategy
for accomplishing a restructuring;
(e) assist and advise the Committee in evaluating and
analyzing the proposed implementation of any
restructuring, including the value of the securities, if
any, that may be issued under any plan of reorganization;
and
(f) render other investment banking services as may from time
to time be agreed upon by the Committee and Jefferies,
including providing expert testimony on valuation, and
other expert testimony and investment banking support
related to DIP and exit financing, M&A and asset sale
processes.
Jefferies will charge a US$150,000 monthly fee. The firm will
also seek a US$3,500,000 transaction fee, which will be earned
in full upon substantial consummation of a chapter 11 plan that
is supported by the Committee. Jefferies will credit 50% of all
monthly fees paid in excess of US$900,000 against the
transaction fee.
Jefferies will seek reimbursement of all out-of-pocket expenses.
The Committee wants the Debtors to indemnify Jefferies from
liabilities and claims related to its engagement, except those
arising from the firm's gross negligence and willful misconduct.
Steven Strom, managing director of Jefferies, says that his firm
is a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code, and does not hold or represent
any interest adverse to the Debtors' estates or of any class of
creditors or equity security holders.
The firm can be reached at:
Steven Strom, Managing Director
Jefferies & Company, Inc.
520 Madison Avenue, 12th Floor
New York, New York 10022
Tel; (212) 284-2300
http://www.jefferies.com/
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail. In Canada it has 17
facilities in five provinces, through which it offers a mix of
printed products and related value-added services to the
Canadian market and internationally. The company has operations
in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the
British Virgin Islands.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In
March 2007, it sold its facility in Lille, France. Quebecor
World (USA) Inc. is its wholly owned subsidiary.
Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable
Justice Robert Mongeon oversees the CCAA case. Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case. Ernst & Young Inc. was appointed as Monitor.
On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.
The company has until May 20, 2008, to file a plan of
reorganization in the Chapter 11 case. The Debtors' CCAA stay
has been extended to May 12, 2008. (Quebecor World Bankruptcy
News, Issue No. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating
to the US$400 million super priority senior secured revolving
term loan facility of Quebecor World Inc. as a Debtor-in-
Possession. The related US$600 million super priority senior
secured term loan was rated Ba3 (together, the DIP facilities).
The RTL's better asset value coverage relative to the TL
accounts for the ratings'
differential.
QUEBECOR WORLD: Wants Creditor Information Protocol Approved
------------------------------------------------------------
Quebecor World Inc. and its debtor-affiliates and the Official
Committee Unsecured Creditors asked the U.S. Bankruptcy Court
for the Southern District of New York to approve a Creditor
Information Protocol. This is to ensure that the Committee is
able to comply with its obligations under Section 1102(b)(3)(A)
of the Bankruptcy Code and to protect the Debtors' confidential,
privileged or proprietary information.
(1) Access to Creditor Information
In full satisfaction of the Committee's obligations to provide
access to information for creditors in accordance with Section
1102(b)(3)(A) and (B) of the Bankruptcy Code, the Committee
will:
(a) establish and maintain an Internet-accessed Web site that
provides:
(1) general information concerning the Debtors,
including, case dockets, access to docket filings,
and general information concerning significant
parties in the cases;
(2) highlights of significant events in the cases;
(3) a calendar with upcoming significant events in the
cases;
(4) access to the claims docket as and when established
by the Debtors or any claim agent retained in the
cases, including the Web site established by Donlin
Recano & Co., Inc.;
(5) access to the Web site of the monitor appointed in
the Debtors' Canadian proceedings;
(6) a general overview of the chapter 11 process;
(7) press releases issued by each of the Committee and
the Debtors;
(8) a non-public registration form for creditors to
request "real-time" case updates via electronic mail;
(9) a non-public form to submit creditor questions,
comments and requests for access to information;
(10) responses to creditor questions, comments and
requests for access to information; provided, that
the Committee may privately provide the responses in
the exercise of its reasonable discretion;
(11) answers to frequently asked questions; and
(12) links to other relevant Web sites.
(2) Privileged and Confidential Information
The Committee will not be required to disseminate to any entity:
(i) without further order of the Court, confidential,
proprietary, or other non-public information concerning
the Debtors or the Committee, or
(ii) any other information if the effect of the disclosure
would constitute a general or subject matter waiver of
the attorney-client, work-product, or other applicable
privilege possessed by the Committee.
The Debtors will assist the Committee in identifying, receiving
any information from any entity in connection with an
examination pursuant to Rule 2004 of the Federal Rules of
Bankruptcy Procedure.
Requests for information may be addressed to:
Arnold & Porter LLP
Attn: Michael J. Canning
399 Park Avenue,
New York, New York 10022
quebecorservice@aporter.com
The stipulation also governs the release of confidential
information of third parties and exculpation provisions.
A full-text copy of the Creditor Information Protocol is
available for free at http://ResearchArchives.com/t/s?28b0
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail. In Canada it has 17
facilities in five provinces, through which it offers a mix of
printed products and related value-added services to the
Canadian market and internationally. The company has operations
in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the
British Virgin Islands.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In
March 2007, it sold its facility in Lille, France. Quebecor
World (USA) Inc. is its wholly owned subsidiary.
Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable
Justice Robert Mongeon oversees the CCAA case. Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case. Ernst & Young Inc. was appointed as Monitor.
On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.
The company has until May 20, 2008, to file a plan of
reorganization in the Chapter 11 case. The Debtors' CCAA stay
has been extended to May 12, 2008. (Quebecor World Bankruptcy
News, Issue No. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating
to the US$400 million super priority senior secured revolving
term loan facility of Quebecor World Inc. as a Debtor-in-
Possession. The related US$600 million super priority senior
secured term loan was rated Ba3 (together, the DIP facilities).
The RTL's better asset value coverage relative to the TL
accounts for the ratings'
differential.
QUEBECOR WORLD: Woes Cue US$779MM Non-Cash Hit for Quebecor Inc.
----------------------------------------------------------------
The Canadian Press reports that Quebecor Inc. expects to take a
non-cash hit of up to US$779,000,000 resulting from the
difficulties of its Quebecor World Inc. printing subsidiary.
According to the report, Quebecor CEO Pierre Karl Peladeau
declined to indicate whether he plans to retain a stake in
Quebecor World, which was founded by his late father and formed
the basis of the Quebecor group, or invest additional capital
once it exits protection. "It's too early to say anything about
what's going to happen there," The Canadian Press quoted
Mr. Peladeau as saying during a conference call to discuss
fourth quarter and year-end results.
Quebecor Inc. began to exclude Quebecor World from its
consolidated results as of Jan. 21, 2008, the report adds.
In a news release, Quebecor Inc. and Quebecor Media Inc. issued
this statement regarding the impact of Quebecor World Inc.'s
decision to place itself under the protection of the Companies'
Creditors Arrangement Act in Canada:
"On Jan. 21, 2008, Quebecor World Inc. placed itself under the
protection of the Companies' Creditors Arrangement Act.
Quebecor World and some of its U.S. subsidiaries also placed
themselves under the protection of Chapter 11 of the Bankruptcy
Code in the United States.
"These procedures will have no material impact on the operations
of Quebecor Media.
"In light of the rejection by Quebecor World's bank creditors of
the rescue plan announced on Jan. 11, 2008, Quebecor did not
consider it to be in the interests of its shareholders to
enhance its offer and increase the risk associated with its
investment in Quebecor World. In light of Quebecor World's
decision to place itself under the protection of the Companies'
Creditors Arrangement Act, Quebecor will have to exclude
Quebecor World from the scope of its consolidation as of
Jan. 21, 2008.
"Since the events involving Quebecor World occurred after
Dec. 31, 2007, Quebecor will have to consolidate financial data
for Quebecor World as of Dec. 31, 2007, and for the financial
year ended on that date.
"The carrying value of Quebecor's investment in Quebecor World
as of Sept. 30, 2007, for consolidation purposes, was $429.0
million, and net losses on foreign exchange in the amount of
approximately $350.0 million related to this investment had been
accumulated as of that date in other comprehensive income. The
total net loss before taxes that will ultimately be recognized
in Quebecor's results in connection with the events involving
Quebecor World should not exceed the total of these amounts.
This net loss will have no impact on Quebecor's cash and cash
equivalents.
"The release of Quebecor's consolidated financial results for
2007 will be dependent on the production by Quebecor World of
its financial results for the year ended Dec. 31, 2007. In view
of the recent events involving Quebecor World, Quebecor
anticipates that the publication of its annual financial
documents, including its audited consolidated financial results,
its Management Discussion and Analysis and its press release,
will be delayed. Quebecor cannot guarantee that, for the 2007
financial year, it will be able to meet its reporting
obligations by the prescribed deadline since it has no control
over Quebecor World's ability to report its own financial
results."
Quebecor World's Bankruptcy
Won't Affect Quebecor Inc. and Units
As reported in the Troubled Company Reporter on Jan. 28, 2008,
Quebecor Inc., Quebecor Media Inc. and its subsidiaries are not
affected in any way by the decision of Quebecor World to seek
court protection from creditors under the Companies' Creditors
Arrangement Act (CCAA). Quebecor Inc. said that Quebecor World
is an independent company, distinct from the two other entities,
and its current situation will have no effect on the normal,
continuing operations of Quebecor Inc. and Quebecor Media Inc.
Pierre Karl PEladeau, President and Chief Executive Officer
of Quebecor Inc. said, "Quebecor and Quebecor Media are both in
excellent financial health and the outlooks for the future of
the businesses are excellent."
Quebecor Inc. formally advised Quebecor World a week ago that it
must remove "Quebecor" from its corporate name. This measure is
intended to eliminate any confusion in the public.
Quebecor Inc. Severing Ties with QWorld
According to Seeking Alpha, UBS analyst Jeffrey Fan informed
clients that Quebecor World's decision to seek bankruptcy
protection in Canada and the U.S., and the recent request for
removal of "Quebecor" from Quebecor World's corporate name
reflect Quebecor Inc.'s decision to surrender control of
Quebecor World. He added that the likelihood of Quebecor
providing further funding to Quebecor World has been
significantly reduced.
Quebecor Inc., together with Tricap Partners, previously offered
a US$400,000,000 Rescue Financing Proposal to Quebecor World on
Jan. 11, 2008. The proposal, however, was rejected by Quebecor
World's secured lenders.
The company has obtained interim approval on a US$1,000,000,000
DIP financing agreement with Credit Suisse. Flint Group North
America Corporation; Abitibi Consolidated Sales Corp., Abitibi-
Consolidated US Funding Corp., Bowater America Inc., and Bowater
Inc.; and Corporate Property Associates 9 LP, want the Court to
deny final approval on the $1,000,000,000 of DIP financing.
About Quebecor Inc.
Montreal, Quebec-based Quebecor Inc. (TSE: QBR.A/B) --
http://www.quebecor.com/-- is a communications company with
operations in North America, Europe, Latin America and Asia.
The company has two operating subsidiaries: Quebecor World Inc.,
a commercial print media services company, and Quebecor Media
Inc., a media company, engaged in the business of cable,
newspapers, broadcasting, leisure and entertainment, interactive
technologies and communications, and Internet/portals. On
Jan. 1, 2006, the operations of Videotron Telecom Ltd.,
previously the Business Telecommunications segment, were folded
into the Cable segment. On Nov. 15, 2006, Sun Media Corporation
launched two free dailies in the Ottawa area, 24 HOURS in
English and 24 HEURES in French. In June 2007, Quebecor World
acquired Colorscope, an interactive and print imaging services
provider with locations on the United States west coast.
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE:
IQW), -- http://www.quebecorworldinc.com/-- provides market
solutions, including marketing and advertising activities, well
as print solutions to retailers, branded goods companies,
catalogers and to publishers of magazines, books and other
printed media. It has 127 printing and related facilities
located in North America, Europe, Latin America and Asia. In
the United States, it has 82 facilities in 30 states, and is
engaged in the printing of books, magazines, directories, retail
inserts, catalogs and direct mail. In Canada it has 17
facilities in five provinces, through which it offers a mix of
printed products and related value-added services to the
Canadian market and internationally. The company has operations
in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the
British Virgin Islands.
The company is an independent commercial printer in Europe with
19 facilities, operating in Austria, Belgium, Finland, France,
Spain, Sweden, Switzerland and the United Kingdom. In
March 2007, it sold its facility in Lille, France. Quebecor
World (USA) Inc. is its wholly owned subsidiary.
Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable
Justice Robert Mongeon oversees the CCAA case. Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case. Ernst & Young Inc. was appointed as Monitor.
On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No.
08-10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.
The company has until May 20, 2008, to file a plan of
reorganization in the Chapter 11 case. The Debtors' CCAA stay
has been extended to May 12, 2008. (Quebecor World Bankruptcy
News, Issue No. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating
to the US$400 million super priority senior secured revolving
term loan facility of Quebecor World Inc. as a Debtor-in-
Possession. The related US$600 million super priority senior
secured term loan was rated Ba3 (together, the DIP facilities).
The RTL's better asset value coverage relative to the TL
accounts for the ratings'
differential.
====================
P U E R T O R I C O
====================
TERADYNE INC: Daniel Tempesta Resigns as Corporate Controller
-------------------------------------------------------------
Effective Feb. 29, 2008, Daniel Tempesta resigned as Teradyne
Inc.'s corporate controller and principal accounting officer.
Effective March 1, 2008, the Board of Directors of Teradyne
appointed Gregory R. Beecher as principal accounting officer.
Mr. Beecher will continue to serve as Teradyne's vice president,
chief financial officer and treasurer and will receive no
additional compensation for his service as principal accounting
officer.
Prior to his employment with Teradyne, Mr. Beecher was a partner
at PricewaterhouseCoopers LLP from 1993 to 2001.
About Teradyne Inc.
Headquartered in North Reading, Massachussetts, Teradyne Inc.
(NYSE: TER) -- http://www.teradyne.com/-- is a supplier of
Automatic Test Equipment used to test complex electronics used
in the consumer electronics, automotive, computing,
telecommunications, and aerospace and defense industries.
Teradyne employs about 3,600 people worldwide. The company has
offices in Brazil and Puerto Rico.
* * *
Teradyne Inc. still carries S&P's "B+" long term foreign issuer
credit and long term local issuer credit ratings which was
placed on Dec. 13, 2002.
UNIVISION COMMS: Asset Sale Proceeds Lower Than Fitch Expected
--------------------------------------------------------------
In a filing, Univision Communications, Inc. disclosed that it
expects to receive US$113 million in gross proceeds upon closing
the sale of its music assets to UMG Recordings, Inc. The
company also disclosed that it may potentially use borrowings
under its bank senior secured credit facility, which cannot
exceed US$250 million, to pay down its US$500 million second-
lien term loan due March 2009.
The proceeds expected to be received for the music assets are
lower than Fitch's initial expectations. Fitch currently
expects the company can generate an additional approximately
US$175 million in gross proceeds from the sale of assets that
produce little or no cash flow. As such, Fitch does expect
there to be a shortfall between proceeds from the initial non-
cash-flow producing asset sales and the second-lien loan. Fitch
believes the company has smaller-market cash-flow producing
stations that are non-core assets which could be divested to
take care of any remaining shortfall of the second-lien loan,
including its radio stations in the San Diego and Las Vegas
markets. Also, the company had US$123 million in cash on its
balance sheet at Sept. 30, 2007. Fitch would expect year-end
cash balances to be disclosed on this week's earnings release
and/or conference call.
These combined sources should partially mitigate the total
amount that the company may need from its credit facility.
Fitch notes that the credit facility does have a MAC clause
prior to each borrowing. The company also has a near-term
US$200 million 2008 maturity that is expected to be covered by a
committed delay-draw facility which also has a MAC clause.
Beyond these maturities, the company does not have another
significant maturity until US$500 million due July 2011.
Assuming the PIK option is used, Fitch estimates cash interest
coverage to be below 1.5 times which is lower than Fitch's
initial expectations and weak for Fitch 'B' IDR rating. This is
balanced by Fitch's continued expectations for strong growth
over the intermediate term. Fitch will continue to monitor the
company's quarterly results, including this week's release, and
any impact the softening economic environment may have on
expected future cash flows. Given the high leverage, any
meaningful variances from Fitch expectations of the next 18
months including maturities, could result in negative rating
action or outlook revisions.
Headquartered in Los Angeles, California, Univision
Communications Inc., (NYSE: UVN) -- http://www.univision.net/--
owns and operates more than 60 television stations in the U.S.
and Puerto Rico offering a variety of news, sports, and
entertainment programming. The company had about US$2.6 billion
in debts at Dec. 31, 2006. Univision Music Group is a
subsidiary of Univision Communications Inc.
=================
V E N E Z U E L A
=================
CHRYSLER LLC: Corrects Erroneously Reported US$2.7 Billion Loss
---------------------------------------------------------------
Several media outlets have erroneously reported a loss of
approximately US$2.7 billion by Chrysler LLC between
Aug. 4, 2007, and Sept. 30, 2007, the company said.
In fact, the company continued, from an operating earnings
standpoint, Chrysler was profitable during this time period.
Also, Chrysler lost significantly less than what was reported
during the course of the full year.
Chrysler believes any differences are attributable due to U.S.
Generally Accepted Accounting Principles versus International
Financial Reporting Standards accounting rules. These
differences include pension accounting for the UAW settlement
and restructuring and purchases accounting.
Daimler's Annual Report
After Chrysler was taken private by Cerberus Capital Management
LP and has stop making its financial statements public, the
annual report of former parent and 19.9% shareholder Daimler AG
provides a glimpse of Chrysler's loss of EUR1.94 billion or
US$2.94 billion in an eight-week period between Aug. 4 and
Sept. 30, 2007, Edward Taylor and Josee Valcourt of The Wall
Street Journal report.
Daimler also disclosed that it gave Tom LaSorda, who is now
Chrysler's president and vice chairman, a EUR10.4 million bonus
and EUR2.13 million salary as a member of DaimlerChrysler AG
board of directors, the Journal says.
The Wall Street Journal suggests that these figures may spur
disapproval from the United Auto Workers union, which agreed to
a cost-saving deal last year to help Chrysler.
About Chrysler
Headquartered 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: Gov't Asks OPEC to Discuss Asset Freeze
---------------------------------------------------------------
The Venezuelan government has asked the the Organization of
Petroleum Exporting Countries to discuss, during a March 5
meeting, Exxon Mobil Corp.'s seeking of asset freeze court order
against Petroleos de Venezuela SA.
As reported in the Troubled Company Reporter-Latin America on
March 5, 2008, Exxon Mobil asked the London High Court to uphold
the order freezing US$12 billion in Petroleos de Venezuela's
assets to support the arbitration process between both parties.
The asset-freeze order against Petroleos de Venezuela was made
so that Exxon Mobil Corp. would be able to extract compensation
should it win a pending arbitration. Petroleos de Venezuela has
appealed the asset-freeze order. Petroleos de Venezuela
contends that the U.K. court doesn't have the authority to award
the injunction because the case involved U.S. and Venezuelan
firms.
Venezuelan Energy and Oil Minister and Petroleos de Venezuela SA
head Rafael Ramirez told Fred Pals and Julie Ziegler at
Bloomberg News, "We are interested in explaining in detail what
they [Exxon Mobil] pretend to do against us. They could do the
same against Algeria, Saudi Arabia, any other country within
OPEC."
OPEC President and Algerian Energy Minister Chakib Khelil told
Bloomberg News that the organization will discuss Venezuela's
request.
"Our organization is very sensitive to that. In the past, OPEC
has supported countries that had conflicts with companies,"
Minister Khelil commented to Bloomberg News.
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.
* * *
As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela
SA's long-term issuer default rating and local currency long
term issuer default rating at BB-. 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
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