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/raid1/www/Hosts/bankrupt/TCRLA_Public/080327.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 27, 2008, Vol. 9, No. 61 Headlines A R G E N T I N A ALITALIA SPA: Air France and Unions Resume Talks ALITALIA SPA: Romano Prodi Ready to Accept Italian Bid DELTA AIR: PBGC Seeks Leave to Respond to NQ Claims Objection EMPRESA DISTRIBUIDORA: Inks 10-Year Contract With Cycsa B A H A M A S METROPOLITAN BANK: Moody's Releases First Banking Sector Report TEEKAY CORP: Unit to Acquire Vessels for US$230 Million B E R M U D A IPC HOLDINGS: To Hold First Quarter 2008 Earnings Webcast B R A Z I L BANCO CRUZEIRO: Moody's Rates US$30 Million Senior Notes at Ba1 BANCO DA AMAZONIA: Fitch Holds BB+ Long-Term Issuer Default Rtgs BR MALLS: Acquires 35% Indirect Interest in Osasco Plaza Mall CENTRAIS ELETRICAS: Regulator Okays Unit's Project With Copel CENTRAIS ELETRICAS: Says Distribution Units Won't Be Privatized COMPANHIA ENERGETICA: Brazil Cancels Stake Sale COPEL: Regulator Okays Hydro Plant Construction With Eletrosul DELPHI CORP: Court Extends Exclusive Plan-Filing Date to May 31 DELPHI CORP: Seeks More IRS Waivers Due to Delay of Emergence ENERGIAS DO BRASIL: Fails to Deposit BRL1.74B for Cesp Auction JAPAN AIRLINES: Studies Safety Measures Along With Trade Unions UAL CORPORATION: Capt. Wallach Joins Two Board Committees UAL CORP: Labor, Political Leaders Balk at Outsourcing Plan UAL CORP: Teamsters Wants Compensation Practices Overhauled UAL CORP: U.S. Workers Get US$110 Million in Profit Sharing XERIUM TECHNOLOGIES: Delays Filing of December 2007 Form 10-K XERIUM TECHNOLOGIES: Discloses Likely Bankruptcy Filing XERIUM TECHNOLOGIES: Cancels Dividend for First Quarter 2008 XERIUM TECHNOLOGIES: S&P Cuts Ratings on Likely Covenant Breach C A Y M A N I S L A N D S AHFP PANTERA: Proofs of Claim Filing Deadline Is April 3 AHFP SYMPHONY: Proofs of Claim Filing Is Until April 3 AHFP TRIATTO: Proofs of Claim Filing Deadline Is April 3 ATLAS CPO: Proofs of Claim Filing Is Until April 3 BLUECREST INT'L: Sets Final Shareholders' Meeting for April 2 FORTUNATUS ETERNUS: Proofs of Claim Filing Deadline Is April 3 GANNET V: Proofs of Claim Filing Ends on April 3 LEIF INVESTMENTS: Proofs of Claim Filing Deadline Is April 3 MONBOUQUETTE CONSULTING: Proofs of Claim Filing Is Until April 3 REDWOOD HOTEL: Court to Hear Wind-Up Petition on April 1 C H I L E RED HAT: LatAm Online Retailer Migrates to Red Hat & JBoss C O L O M B I A ECOPETROL: Will Keep 30% Stake in Caracara Concession SOLUTIA INC: Appoints Nine Members to Board Committees SOLUTIA INC: To Begin Financial Reporting on Five Segments TERMOCANDELARIA SCA: Fitch Assigns BB- LT Issuer Default Ratings C O S T A R I C A DOLE FOOD: Unit Recalls Cantaloupes From Costa Rica SIRVA INC: Court Okays Sale of U.K. & Ireland Operations to TEAM SIRVA INC: Committee Wants Class 5 Claims Bar Date Set to May 29 US AIRWAYS: S&P Affirms Ratings & Revises Outlook to Stable D O M I N I C A N R E P U B L I C AES CORP: Commits to US$1 Billion Joint Venture With Riverstone E C U A D O R PETROECUADOR: Oil Export Revenues Jump to US$1.27B in Jan.-Feb. PETROECUADOR: Saves US$199.5 Million in Three Months J A M A I C A AIR JAMAICA: 9 Stations Without TCC Provide Petrol to Workers AIR JAMAICA: Workers Launch Strike on Failed New Wage Talks M E X I C O AMERICAN TOWER: Fitch Puts 'BB+' Rating on Planned US$325MM Loan AMERICAN TOWER: Moody's Puts 'Ba1' Rating on US$325 Million Loan AMERICAN TOWER: S&P Puts 'BB+' Rating on US$325MM Loan Facility CLEAR CHANNEL: Financing Talk Glitch Threatens to Derail Merger GREENBRIER COS: Unit's Chair Resigns After Bankruptcy Filing MBIA INC: Fitch Keeps Insurer Financial Strength & Debt Ratings RETAIL PRO: Posts US$2.1 Mil. Net Loss in Quarter Ended June 30 SR TELECOM: Selling Assets to Groupe Lagasse for US$6 Million P E R U QUEBECOR WORLD: Has US$350 Million in Available Funds QUEBECOR WORLD: Lays Off One-Third of Memphis Employees QUEBECOR WORLD: Noteholders Question Panel Advisors' Engagement V E N E Z U E L A BANESCO BANCO: Launches Preferred Shares Public Offering CA LA ELECTRICIDAD: Offer & Consent Solicitation Expires April 8 PETROLEOS DE VENEZUELA: May Ink Joint Plant Pact With Petrobras PETROLEOS DE VENEZUELA: Exxon Mobil Brings Case to Netherlands X X X X X X * Moody's Evaluates Proposed Changes to Ratings System - - - - - ================= A R G E N T I N A ================= ALITALIA SPA: Air France and Unions Resume Talks ------------------------------------------------ Air France-KLM SA resumed on March 25, 2008, negotiations to receive approval from Alitalia S.p.A.'s unions for its acquisition of the Italian government's 49.9% stake in the national carrier, BBC News reports. As recently reported in the TCR-Europe, Alitalia and the present government have accepted Air France-KLM SA's binding offer, subject to several conditions including union approval. Air France, so far, has yet to convince the unions to accept its business plan, which foresees more than 2,000 job cuts. Air France has set a March 31, 2008, deadline for an agreement. The effectiveness conditions for Air France's offer include: * formal approval of the Industrial Plan 2008-2010 by Alitalia’s Board of Directors; * formal agreement in a manner satisfactory for Air France-KLM between Alitalia and the trade unions representing the majority of each category of Alitalia’s employees, regarding the implementation of the Industrial Plan, the rules of employment, the plan related to the social shock absorbers and the contemplated transaction; * formal agreement in a manner satisfactory for Air France-KLM between Alitalia and the trade unions of Alitalia Servizi representing the majority of each category of Alitalia Servizi’s employees on the necessary restructuring measures and the related shock absorbers plan; * Italy's Ministry of Economy and Finance to grant Alitalia a credit line, or the necessary guarantees to obtain a credit line in favor of Alitalia of EUR300 million to be repaid immediately after the capital increase; * formal agreement between Alitalia and Aeroporti di Roma on the Rome Fiumicino Airport and on the service levels required for the implementation of the Industrial Plan 2008-2010; * with respect to the claim brought on by SEA against Alitalia to the tribunal of Busto Arsizio, either: -- the official withdrawal from the claim; -- its settlement in a manner satisfactory to Air France; -- the granting by the MEF to Alitalia of appropriate indemnification commitments, in case necessary by enacting an appropriate law decree, or any other applicable solution satisfactory to Air France-KLM to definitely remove the risk attached to the claim; * formal agreement between Alitalia, Fintecna and Alitalia Servizi, for what concerns the interest of each party, among other things, to re-internalize in Alitalia certain activities and to renegotiate certain clauses of the service agreements; * formal written confirmation from the MEF that the general interests are properly safeguarded in the context of the contemplated transaction and it shall, subject to certain conditions, tender its Alitalia shares and Alitalia convertible bonds in the tender offers; * formal written undertaking from the competent Italian governmental authority to maintain the current portfolio of the current Alitalia’s air traffic rights, continue to address in a fair, transparent and non discriminatory manner any future requests form Alitalia for new air traffic rights, and provide cooperation and assistance in the case of any major difficulties with extra-European Community countries. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ALITALIA SPA: Romano Prodi Ready to Accept Italian Bid ------------------------------------------------------ The Italian government will favor binding offers from local groups better than presented by Air France-KLM SA, Reuters reports, citing outgoing Italian Prime Minister Romano Prodi. "We have always been open to [an offer from an Italian group], Mr. Prodi was quoted by Reuters as saying. "Of course it is desirable. The problem is whether it's there." Mr. Prodi, however, said the government has yet to receive an Italian offer is "concrete, backed by resources, [and] have an industrial plan." "So far we have not seen anything except for the plan that we have taken into consideration," Mr. Prodi said. As reported in the TCR-Europe on March 25, 2008, AirOne S.p.A. has declared it will submit an alternative bid for Alitalia in three weeks, stressing that it needs more time to draft a proposal since it was excluded from conducting due diligence on the national carrier. Deutsche Lufthansa AG may join AirOne in the counteroffer. Finance minister Tommaso Padoa-Schioppa, however, told The Financial Times that any new offer for Alitalia must be made in days, not weeks. Alitalia and the present government have accepted Air France-KLM SA's binding offer, subject to several conditions including union approval. Air France, so far, has yet to convince the unions to accept its business plan, which foresees more than 2,000 job cuts. Former Prime Minister Silvio Berlusconi, expected to return to his post following the upcoming election, has vowed to rejett Air France's offer, saying he prefer an Italian buyer for Alitalia. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. DELTA AIR: PBGC Seeks Leave to Respond to NQ Claims Objection ------------------------------------------------------------- The Pension Benefit Guaranty Corporation seeks leave to file a brief no later than April 4, 2008, to respond to any pleading filed by claimants in response to Delta Air Lines Inc. and its debtor-affiliates' objection to the claims. The Debtors asked Judge Adlai S. Hardin of the U.S. Bankruptcy Court for the Southern District of New York to expunge 14 remaining claims that were filed by 13 retired pilots based on the termination of the Non-Qualified Benefit Plans. The Claims also assert amounts that are different from those prescribed by the NQ Pension Benefits methodologies and relate to obligations under the now terminated Qualified Plan. PBGC is the federal government agency that administers the defined benefit pension plan termination insurance program established by Title IV of the Employee Retirement Income Security Act. According to PBGC, the request allows it to comprehensively address ERISA issues raised by the parties prior to any decisions being made, which may significantly impact the Qualified Plan or the Title IV pension plan termination insurance program administered by PBGC. PBGC Agreement on Pilots Pension Plan As reported in the Troubled Company Reporter on Jan. 8, 2007, Delta confirmed, on Jan. 5, 2007, that PBGC, the federal agency charged with insuring the nation's pension plans under ERISA, has become the trustee of the Delta Pilots Retirement Plan. In December 2006, the company reached a settlement agreement with the PBGC and that the agreement had the full support of its Official Committee of Unsecured Creditors. The agreement later received approval by the U.S. Bankruptcy Court, which had previously determined that Delta could not reorganize or emerge from Chapter 11 unless the Pilot Plan was terminated. With the PBGC's agreement that the Pilot Plan meets all legal criteria for distress termination, the agency has become the Plan's trustee, with Sept. 2, 2006, established as the termination date for the Plan. In settlement of its claims against Delta and its affiliates, the PBGC will be allowed a prepetition unsecured claim against Delta of US$2.2 billion, and the debtors' proposed plan of reorganization will provide for the distribution to the PBGC of US$225 million in senior unsecured notes. Retired Delta pilots will receive in excess of US$800 million in allowed claims in respect of their lost non-qualified pension benefits. Delta's active pilots are covered by a defined contribution pension plan previously negotiated with the Air Line Pilots Association, the union representing Delta's more than 6,000 active pilots. Delta reconfirmed that it will preserve the Delta Retirement Plan, which covers ground employees and flight attendants. The ability to preserve this plan was made possible by the alternative funding provisions included in the pension reform legislation passed by Congress. 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. 93; 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. EMPRESA DISTRIBUIDORA: Inks 10-Year Contract With Cycsa ------------------------------------------------------- Empresa Distribuidora y Comercializadora Norte S.A. aka Edenor has signed a 10-year contract with subsidiary Comunicaciones y Consumo aka Cycsa, Business News Americas reports. According to BNamericas, Cycsa could use Edenor's infrastructure to offer telecommunications services. Argentine news daily El Cronista relates that Edenor will get 2% of Cycsa's yearly revenues and 10% of its profits. Edenor is currently testing power line communication, which allows broadband to reach a wider audience as electric power cables are more widespread than telecommunications infrastructure with only modems as additional element required to obtain Internet access, BNamericas states. Based in Buenos Aires, Argentina, Empresa Distribuidora y Comercializadora Norte S.A. aka Edenor is the largest electricity distribution company in Argentina in terms of number of customers and volume of energy sold. The company commenced operations in 1992, as a result of the privatization of the previously state-owned SEGBA. At that time, it was granted a 95-year concession to distribute electricity on an exclusive basis in its concession area, the greater Buenos Aires metropolitan area and northern portion of the City of Buenos Aires. EASA, which is controlled by Dolphin Energia S.A., is Edenor's holding company. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 1, 2007, Standard and Poor's Argentina assigned its 'B' Rating on US$220 Million Bond issued by Empresa Distribuidora y Comercializadora Norte S.A with annual fixed interest rate of 10.5% Notes due 2017. S&P said the outlook is positive. ============= B A H A M A S ============= METROPOLITAN BANK: Moody's Releases First Banking Sector Report --------------------------------------------------------------- Reforms to the Philippine banking system undertaken since the Asian currency crisis have helped to improve the regulatory and supervisory system, but confidence would be further enhanced by greater transparency, formalization of procedures and institutionalization of reforms, says a new report from Moody's Investors Service. "Bank credit risk in the Philippines has been elevated by a difficult operating environment, a new and developing supervisory and regulatory framework, and low level of government support," says Richard Lung, a senior analyst and author of the report, who also notes that proposed legislation, which would correct for some of the deficiencies in the supervisory framework, is pending in the Philippine Congress. "These challenges outweigh the benefits derived from the dominant role of banks within the financial system, and also help explain the low intrinsic financial strength and deposit ratings of the Moody's-rated Philippine banks," says Lung. The report is the first in a series of overviews on banking systems throughout the world, and is designed to complement Moody's banking system outlook reports by serving as reference guides to key structural factors that are reflected in Moody's bank credit ratings. The report notes that Philippine banks have historically faced little competition from the domestic capital markets or from non-bank financial institutions. As the dominant financial intermediaries, they have developed strong earnings profiles, which have been further buttressed by the fact that most of the large banks have universal banking licenses through which they can offer a wide range of financial services. However, banks in the Philippines are exposed to potentially high credit losses (as was experienced following the Asian financial crisis) due to their operating environment. In addition to the moderately high volatility in the country's business cycles, credit losses have historically been exacerbated by weak governance. As a result, once asset quality has begun to deteriorate, recovery from credit losses has been prolonged by deficiencies in the legal system preventing an orderly and expeditious resolution of bad assets. In considering external support factors, Moody's assesses the Philippines to be a low-support country based on the relatively low importance of the banking sector relative to the size of the economy, the uneven history of past government interventions and limits on deposit insurance coverage. The report, "Banking System Overview -- Philippines", can be found at http://www.moodys.com/ Metropolitan Bank and Trust Company -- http://www.metrobank.com.ph/-- is the flagship company of the Metrobank Group. Metrobank provides a host of deposit, savings, and loan products as well as electronic banking services like internet banking, mobile banking, and phone banking, as well as its huge ATM network. Metrobank is also the leading provider of trade finance in the country, and its overseas branch network has enabled it to service the fund remittances of Filipino overseas contract workers. The bank has 583 local branches and 35 international branches and offices located in Taiwan, China, Japan, Korea, Guam, United States, Hong Kong, Singapore, Bahamas, and in Europe. * * * As reported on Nov. 6, 2006, that Moody's Investors Service revised the outlook of Metropolitan Bank & Trust Co.'s foreign currency long-term deposit rating of B1 and foreign currency subordinated debt rating of Ba3 from negative to stable. TEEKAY CORP: Unit to Acquire Vessels for US$230 Million ------------------------------------------------------- The Royal Gazette reports that Teekay GP LLC is buying the Arctic Spirit and Polar Spirit from Teekay Corporation for US$230 million. Teekay GP LLC, the general partner of Teekay LNG Partners LP, effective April 1 will acquire the vessels and immediately charter the vessels back to Teekay Corp. for 10 years, with options to extend the charter up for an additional 15 years, the report relates. These charters would generate approximately US$27 million per year in operating cash flow to the partnership, the report adds. Teekay Corp., the Gazette says, bought the vessels three months ago from a joint venture of ConocoPhillips and Marathon Oil Corp. for US$230 million and chartered the vessels back to the sellers until April 2009, plus options exercisable by Teekay to extend the charter up to an additional seven years. About Teekay Corp. Headquartered in Nassau, Bahamas, Teekay Corporation (NYSE: TK) -- http://www.teekay.com/-- transports more than 10 percent of the world's seaborne oil, has built a significant presence in the liquefied natural gas shipping sector through its publicly- listed subsidiary, Teekay LNG Partners L.P. (NYSE: TGP), and is further growing its operations in the offshore production, storage and transportation sector through its publicly-listed subsidiaries, Teekay Offshore Partners L.P. (NYSE: TOO) and Teekay Petrojarl ASA (OSE: TPO). With a fleet of over 185 vessels, offices in 17 countries and 6,300 seagoing and shore- based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 26, 2007, Moody's Investors Service affirmed its debt ratings of Teekay Corporation -- Corporate Family of Ba2, senior unsecured of Ba3 and speculative grade liquidity rating of SGL-2. Moody's changed the rating outlook to stable from negative. ============= B E R M U D A ============= IPC HOLDINGS: To Hold First Quarter 2008 Earnings Webcast --------------------------------------------------------- IPC Holdings, Ltd., will hold its First Quarter 2008 Conference Call on Friday, April 25, 2008, at 8:30 a.m. Eastern. Interested participants can log on to: http://www.videonewswire.com/event.asp?id=46856 Teleconference Number: 800-862-9098 or 785-424-1051 Conference ID: IPC Contact: Valerie T. Masters, Valerie.Masters@ipcre.bm Tel. No. (441) 298-5111 IPC Holdings, Ltd. (Nasdaq: IPCR) through its wholly owned subsidiary IPCRe Limited (Bermuda), provides property catastrophe reinsurance and, to a limited extent, aviation, property-per-risk excess and other short-tail reinsurance on a worldwide basis. * * * IPC Holdings, Ltd. carried A.M. Best Co.'s BB+ rating on the company's US$236,250,000 convertible preferred stock assigned on Nov. 1, 2005. The preferred stock will mature on Nov. 15, 2008. =========== B R A Z I L =========== BANCO CRUZEIRO: Moody's Rates US$30 Million Senior Notes at Ba1 --------------------------------------------------------------- Moody's Investors Service assigned a Ba1 long-term foreign currency debt rating to Banco Cruzeiro do Sul S.A.'s existing US$30,000,000 senior unsecured notes due in May 2010. The notes were issued under the bank's US$1,000,000,000 Global Euro Medium-Term Note Program. The outlook on the rating is stable. This rating was assigned to the bank's US$30 million senior unsecured debt due in May 2010: -- Global Long-Term Foreign Currency Debt Rating: Ba1, stable outlook Banco Cruzeiro had unconsolidated assets of BRL4,310 million and equity of BRL1,047.6 million as of December 2007. Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul SA (Bovespa - CZRS4) -- http://www.bcsul.com.br/-- is a private- sector multiple bank with operations in the consumer segment, through paycheck-deductible loans to public employees and social security beneficiaries, and in the corporate segment, offering middle-market companies short-term loans usually backed by receivables. The bank's core business is lending to civil servants, with payments automatically deducted from payrolls. BANCO DA AMAZONIA: Fitch Holds BB+ Long-Term Issuer Default Rtgs ---------------------------------------------------------------- Fitch Ratings has affirmed Banco da Amazonia S.A.'s ratings as: -- Long-term foreign and local currency issuer default ratings: affirmed at 'BB+' -- Short-term foreign and local currency issuer default ratings: affirmed at 'B' -- Individual rating: affirmed at 'D' -- Support rating: affirmed at '3' -- Support Rating Floor: affirmed at 'BB+' -- National Long-term rating: affirmed at 'AA(bra)' -- National Short-term rating: affirmed at 'F1+(bra)' The outlooks for the long-term IDRs and national long-term rating remain stable. The ratings of Banco da Amazonia reflect the moderate probability of institutional support from its main shareholder, Brazil's federal government, and the bank's strategic importance to the development of Brazil's northern region, responsible for 26% of loans granted there. The Individual rating reflects Banco da Amazonia's improved asset quality, strategy to grow assets, good capitalisation level and cheap funding cost provided by the transferred funds from the Constitutional Financing Fund of the North (FNO) and the Amazon Investment Fund. On the other hand, the individual rating is also affected by political influence over the bank's management, outdated technology, strong dependence on fees provided by FNO and successive deficits in the bank's defined- benefit pension fund. The Individual rating could see upward rating potential in the medium term, should Banco da Amazonia diversify its revenue stream, sustain solid performance and maintain adequate capitalisation and asset quality. The rating could be adversely affected should the bank experience quality problems in the loan portfolio (individual or shared), or potential legal problems that may incur losses for the bank. Banco da Amazonia mainly serves small rural producers and small companies in Brazil's northern region, the Amazon region. In addition to its loan portfolio, the bank co-manages FNO's portfolio. Its revenues are generated primarily through fund management fees, loan portfolio revenues and the yield on its securities portfolio Banco da Amazonia aka Basa acts as a retail bank and regional development bank for the states of Para, Amazonas, Rondonia, Roraima, Acre, Amapa, Tocantins, Mato Grosso and part of Maranhao. The national treasury of Brazil controls about 96.9% of the company's capital. BR MALLS: Acquires 35% Indirect Interest in Osasco Plaza Mall ------------------------------------------------------------- BR Malls Participacoes S.A. has acquired a 35% indirect interest in Osasco Plaza Shopping, through its subsidiaries. Osasco Plaza Shopping is a mall located in the city of Osasco, state of Sao Paulo with 12,800 m2 in Gross Leasable Area and 175 stores. The mall hosts approximately 2.5 million visitors on average per month. Additionally, the other current stakeholders of the shopping mall are committed to carrying out an expansion to be launched in 2009, which will expand the mall's Gross Leasable Area by 16,000 m2. With this acquisition, BR Malls increases its owned Gross Leasable Area from 372.3 m2 to 376.8 m2, totalling from 896.4 m2 to 909.2 m2, and now holds interests in 31 shopping malls. Headquartered in Rio de Janeiro, Brazil, BR Malls is the largest integrated shopping mall company in Brazil with a portfolio of 30 malls, representing 894.3 thousand m2 in total Gross Leasable Area (GLA) and 372.6 thousand m2 in owned GLA. BR Malls is also Brazil's largest shopping mall service provider, managing and leasing 29 malls. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to BR Malls International Finance Ltd.'s forthcoming perpetual notes. It is a wholly owned subsidiary of Brazil-based shopping mall company BR Malls Participacoes S.A. (BR Malls; BB-/Stable/--). BR Malls and its direct subsidiaries unconditionally guarantee the perpetual notes. CENTRAIS ELETRICAS: Regulator Okays Unit's Project With Copel ------------------------------------------------------------- Parana environmental regulator Instituto Ambiental do Parana has granted Centrais Eletricas Brasileiras S.A. aka Eletrobras subsidiary Eletrosul the installation license for its 361- megawatt hydro plant with Companhia Paranaense de Energia aka Copel. Business News Americas relates that the license will let Copel and Eletrosul start building the plant. Copel told BNamericas that investments in the plant will be almost BRL1 billion. Copel's President Rubens Ghilardi commented to BNamericas, "We have a commitment to make power from Maua available to consumers starting in 2011. That commitment cannot be postponed." Maua will sell power to the regulated market under 30-year contracts with 24 power distributors all over Brazil, BNamericas states. Centrais Eletricas Brasileiras SA aka Eletrobras operates in the electric power sector in Brazil. The objective of Eletrobras is to perform activities involving studies, projects, construction and operation of electric power plants, transmission and distribution lines as well as underlying trade operations arising there from. Eletrobras is tasked with the preparation of studies and with drawing up construction projects for hydroelectric generation, transmission lines and substations to supply Brazil. It engages areas involving granting loans and financing, providing guarantees, locally or abroad, and acquiring debentures of companies and holders of public electric power services under their control; providing loans and guarantees, locally or abroad, for technical and scientific research institutions; and promoting and supporting researches relating to the power sector, linked to the generation, transmission and distribution of electric power. * * * As reported in the Troubled Company Reporter-Latin America on May 22, 2007, Standard & Poor's Ratings Services raised its long-term foreign currency counterparty credit rating on Centrais Eletricas Brasileiras S.A. aka Eletrobras to 'BB+' from 'BB'. S&P said that outlook is positive. CENTRAIS ELETRICAS: Says Distribution Units Won't Be Privatized --------------------------------------------------------------- Centrais Eletricas Brasileiras S.A. aka Eletrobras' Investor Relations Executive Astrogildo Quental said in a webcast that the company's distribution units won't be privatized. Business News Americas relates that Eletrobras controls these distributors: -- Ceal, -- Cepisa, -- Boa Vista Energia, -- Manaus Energia, -- Ceam, -- Ceron, and -- Eletroacre. "Those companies were bought by the last government [the administration of Fernando Henrique Cardoso], which planned to improve them for future privatization. According to the current government strategy, we don't plan to privatize the companies, but are aiming for more efficient management. Each company operates in a state, but they could be managed as one company to give them economies of scale, for example, when purchasing transformers," Mr. Quental told BNamericas. Centrais Eletricas Brasileiras SA aka Eletrobras operates in the electric power sector in Brazil. The objective of Eletrobras is to perform activities involving studies, projects, construction and operation of electric power plants, transmission and distribution lines as well as underlying trade operations arising therefrom. Eletrobras is tasked with the preparation of studies and with drawing up construction projects for hydroelectric generation, transmission lines and substations to supply Brazil. It engages areas involving granting loans and financing, providing guarantees, locally or abroad, and acquiring debentures of companies and holders of public electric power services under their control; providing loans and guarantees, locally or abroad, for technical and scientific research institutions; and promoting and supporting researches relating to the power sector, linked to the generation, transmission and distribution of electric power. * * * As reported in the Troubled Company Reporter-Latin America on May 22, 2007, Standard & Poor's Ratings Services raised its long-term foreign currency counterparty credit rating on Centrais Eletricas Brasileiras S.A. aka Eletrobras to 'BB+' from 'BB'. S&P said that outlook is positive. COMPANHIA ENERGETICA: Brazil Cancels Stake Sale ----------------------------------------------- The Sao Paulo government has canceled the March 26 auction to privatize Companhia Energetica de Sao Paulo aka Cesp due to lack of interest from potential buyers, various reports say. According to Brazilian clearing house CBLC, pre-qualified bidders failed to deposit financial guarantees for the auction. The five bidders were identified as: -- Suez Tractebel, part of France's Suez Energy International; -- Energias do Brasil, a subsidiary of Portugal's EDP; -- Neoenergia that has Spain's Iberdrola as a key partner; -- U.S. aluminum producer Alcoa Inc; and -- Brazil's energy holding CPFL Energia Business News Americas relates that each pre-qualified bidder had to deposit BRL1.74 billion to participate in the auction. The initial purchase price was BRL6.6 billion. The Financial Times relates that the deal, which would have raised a minimum of BRL6.6 billion, has turned to uncertainty at the last minute following several companies' talks of forming a consortium to bid for the company. Sao Paulo's Governor Jose Serra told reporters that the auction failed because firms had trouble securing loans to bid for Cesp. Power firms had been worried that there was no guarantee Cesp's Jupia and Ilha Solteira plants would secure concession renewals, BNamericas states. The state was unprepared to lower the asset price and possible bidders might have been unable to support the necessary fund because of tightness in credit markets, FT reports, citing Governor Serra. Reuters states that the potential buyers objected to spending nearly BRL20 billion (US$11.5 billion) for the company as concerns grew about the renewal of licenses in two dams, Jupia and Ilha Solteira, that account for nearly two-thirds of Cesp's generation capacity. According to the report, the licenses of the two plants have already been renewed once and cannot be repeated unless the government approved the deal. The plants accounted for about 5,000 megawatts, or two-thirds of the energy Cesp generates at its six dams. Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third largest power generator, majority owned by the State of Sao Paulo. CESP operates 6 hydroelectric plants with total installed capacity of 7,456 MW and reported net revenues of BRL1,983 million in the last twelve months through Sept. 30, 2006. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 10, 2007, Standard & Poor's Ratings Services raised its ratings on electricity generator Companhia Energetica de Sao Paulo, including its corporate credit rating to 'B' from 'B-'. At the same time, S&P raised its Brazil national scale ratings on CESP to 'brBBB-' from 'brBB'. S&P said the outlook remains positive on both scales. COPEL: Regulator Okays Hydro Plant Construction With Eletrosul -------------------------------------------------------------- Parana environmental regulator Instituto Ambiental do Parana has granted Companhia Paranaense de Energia aka Copel the installation license for its 361-megawatt hydro plant with Centrais Eletricas Brasileiras S.A. aka Eletrobras subsidiary Eletrosul. Business News Americas relates that the license will let Copel and Eletrosul start building the plant. Copel told BNamericas that investments in the plant will be almost BRL1 billion. Copel's President Rubens Ghilardi commented to BNamericas, "We have a commitment to make power from Maua available to consumers starting in 2011. That commitment cannot be postponed." Maua will sell power to the regulated market under 30-year contracts with 24 power distributors all over Brazil, BNamericas states. Headquartered in Parana, Brazil, COPEL aka Companhia Paranaense de Energia SA -- http://www.copel.com/ir-- (NYSE: ELP/LATIBEX: XCOP/BOVESPA: CPLE3, CPLE5, CPLE6) transmits and distributes electricity to more than 3 million customers in the state of Parana and has a generating capacity of nearly 4,600 megawatts, primarily from hydroelectric plants. COPEL also offers telecommunications, natural gas, engineering, and water and sanitation services. The company restructured its utility operations in 2001 into separate generation, transmission, and distribution subsidiaries to prepare for full privatization, which has been indefinitely postponed. In response, Copel is re-evaluating its corporate structure. The government of Parana controls about 59% of Copel. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2006, Moody's America Latina upgraded the corporate family rating of Companhia Paranaense de Energia aka Copel to Ba2 from Ba3 on its global scale. Moody's also upgraded its rating on the company's BRL500 million senior unsecured guaranteed debentures due 2007 to Ba2 from Ba3 (Global Local Currency) as well as its rating on the BRL400 million senior secured Guaranteed debentures due 2009 to Ba1 from Ba2 (Global Local Currency). Moody's said the rating outlook is stable. This rating action concludes the review process initiated on July 26, 2006, and still hold to date. DELPHI CORP: Court Extends Exclusive Plan-Filing Date to May 31 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Delaware further extended Delphi Corp. and it debtor-affiliates' exclusive periods to: (a) file a plan of reorganization through and including May 31, 2008; and (b) solicit acceptance of that plan through and including July 31, 2008. This is the Debtors' sixth request for exclusivity extension. The Debtors' current Exclusive Plan Proposal Period expires on March 31, 2008. As reported in the Troubled Company Reporter on Jan. 28, 2008, the Court confirmed the Debtors' First Amended Joint Plan of Reorganization. The Debtors anticipate having the Plan become effective as soon as reasonably practicable. Out of an abundance of caution, however, the Debtors are seeking an extension of the Exclusive Periods to prevent any lapse in exclusivity. A further extension of the Exclusive Periods is justified by the significant progress the Debtors have made toward emerging from Chapter 11, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, related. The Debtors, he noted, have developed, solicited, and achieved confirmation of a reorganization plan that was accepted by 81% of their creditors and 78% of their stockholders. Upon the effective date of the Plan, the Debtors' comprehensive settlements with General Motors Corp., Delphi's U.S. labor unions, and other settling parties will be implemented. "All of this was the result of diligent work by the Debtors over many months," Mr. Butler averred. The Debtors' efforts, according to Mr. Butler, were affected by severe dislocations in the capital markets that began late in the second quarter of 2007 and that have continued through the first quarter of 2008. "This turbulence in the capital markets was a principal cause of the delay in the Debtors' emergence from Chapter 11 before the end of 2007," he explained. The continued turbulence constitutes an additional factor justifying a further extension of the Exclusive Periods, he asserted. Although the Court has confirmed the Plan, the Debtors must still procure fully committed exit financing that will support implementation of the Plan and consummate all of the transactions contemplated by the Plan and Delphi's investment agreement with its Plan investors. The tasks of securing exit financing and satisfying all other conditions to the effectiveness of the Plan and Investment Agreement are significant for both their magnitude and complexity and also justify an extension of the Exclusive Periods, Mr. Butler adds. The size and complexity of the Debtors' Chapter 11 cases alone constitute sufficient cause to extend the Exclusive Periods, Mr. Butler pointed out. The Debtors' request for an extension of the Exclusive Periods is not a negotiation tactic, Mr. Butler clarified. He assured the Court that the Debtors are paying their bills as they come due, including the statutory fees paid quarterly to the U.S. Trustee. 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. 120; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on March 18, 2008, Standard & Poor's Ratings Services still expects to assign a 'B' corporate credit rating to Delphi Corp. if the company emerges from bankruptcy in early April. S&P revised its expected issue-level ratings because changes to the structure of the proposed financings have affected relative recovery prospects among the various term loans. S&P's expected ratings are: -- The US$1.7 billion "first out" first-lien term loan B-1 is expected to be rated 'BB-' (two notches higher than the expected corporate credit rating on Delphi), with a '1' recovery rating, indicating the expectation of very high (90%-100%) recovery in the event of payment default. -- The US$2 billion "second out" first-lien term loan B-2 is expected to be rated 'B' (equal to the corporate credit rating), with a '4' recovery rating, indicating the expectation of average (30%-50%) recovery in the event of payment default. -- The US$825 million second-lien term loan is expected to be rated 'B-' (one notch lower than the corporate credit rating), with a '5' recovery rating, indicating the expectation of modest (10%-30%) recovery in the event of payment default. 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 as: 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. DELPHI CORP: Seeks More IRS Waivers Due to Delay of Emergence ------------------------------------------------------------- Delphi Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of Delaware to enter a supplemental order authorizing their performance under modified pension funding waivers issued by the U.S. Internal Revenue Service and related letters of credit provided by Delphi Corp. to the Pension Benefit Guaranty Corp. Specifically, the Debtors ask the Court, pursuant to Section 363(b) of the Bankruptcy Code and Rule 9019 of the Federal Rules of Bankruptcy Procedure, to authorize: (a) a further extension, until April 7, 2008, for Delphi to perform its obligations under the Pension Funding Waivers, (b) an increase of US$2,500,000 in the amounts outstanding under the PBGC Letters of Credit; and (c) an extension of the PBGC Letters of Credit through April 22, 2008. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates, Delphi's First Amended Joint Plan of Reorganization is not likely to become effective by March 31, 2008. Accordingly, Delphi applied to the IRS for another extension of the Pension Funding Waivers until April 7, 2008. In consideration for the extension, Delphi has offered to: (i) extend the PBGC Letters of Credit for the benefit of Delphi's pension plans from April 15, 2008, through and including April 22, 2008, and (ii) increase the aggregate amount outstanding under the Letters of Credit by an additional US$2,500,000. Mr. Butler notes that given the PBGC's ongoing support of the Debtors' reorganization and their commitment to their pension plans, and in light of the parties' recent discussions of the Debtors' proposal for a supplemental extension, the Debtors anticipate that the PBGC will support the Debtors' proposal. The Debtors further anticipate that the IRS -- which retains sole authority to grant a supplemental extension of the Pension Funding Waivers -- after taking into account the PBGC's recommendation and conducting its own independent analysis, will authorize the supplemental extension. As of March 21, 2008, the IRS has not formally approved any extension of the Pension Funding Waivers. Nevertheless, in light of the existing expiration date for the Waivers, the Debtors have determined to seek Court approval to perform the obligations they will incur in connection with a supplemental extension. Both the PBGC and the IRS have established strong records of support for the Debtors' reorganization, within the confines of their statutory obligations. The Debtors believe that their proposal for a supplemental extension of the Pension Funding Waivers falls well within the statutory mandate of both agencies and therefore believe that their application will be accepted. 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. 120; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on March 18, 2008, Standard & Poor's Ratings Services still expects to assign a 'B' corporate credit rating to Delphi Corp. if the company emerges from bankruptcy in early April. S&P revised its expected issue-level ratings because changes to the structure of the proposed financings have affected relative recovery prospects among the various term loans. S&P's expected ratings are: -- The US$1.7 billion "first out" first-lien term loan B-1 is expected to be rated 'BB-' (two notches higher than the expected corporate credit rating on Delphi), with a '1' recovery rating, indicating the expectation of very high (90%-100%) recovery in the event of payment default. -- The US$2 billion "second out" first-lien term loan B-2 is expected to be rated 'B' (equal to the corporate credit rating), with a '4' recovery rating, indicating the expectation of average (30%-50%) recovery in the event of payment default. -- The US$825 million second-lien term loan is expected to be rated 'B-' (one notch lower than the corporate credit rating), with a '5' recovery rating, indicating the expectation of modest (10%-30%) recovery in the event of payment default. 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 as: 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. ENERGIAS DO BRASIL: Fails to Deposit BRL1.74B for Cesp Auction -------------------------------------------------------------- Energias do Brasil has failed to deposit BRL1.74 billion as financial guarantee to be able to participate in the March 26 auction to privatize Companhia Energetica de Sao Paulo aka Cesp, Business News Americas reports. As reported in the Troubled Company Reporter-Latin America on March 20, 2008, Energias do Brasil's Investor Relations Executive Flavia Heller said that the company wasn't able to decide whether to bid for Cesp or not. Energias do Brasil registered as a bidder in the auction of a controlling stake in Cesp, saying that it wants to join a consortium to make the bid because Cesp is too big a company for one single player to purchase. According to Brazilian clearing house CBLC, the pre-qualified bidders in the auction failed to deposit financial. BNamericas relates that other pre-qualified companies include: -- Tractebel Energia, -- CPFL Energia, -- Neoenergia, and -- Alcoa. As a result, the Sao Paulo government canceled the auction, BNamericas says. BNamericas notes that each pre-qualified bidder had to deposit BRL1.74 billion to participate in the auction. The initial purchase price was BRL6.6 billion. Sao Paulo's Governor Jose Serra told reporters that the auction failed because firms had trouble securing loans to bid for the Cesp. Power firms had been worried that there was no guarantee Cesp's Jupia and Ilha Solteira plants would secure concession renewals, BNamericas states. About Companhia Energetica Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao Paulo (BOVESPA: CESP3, CESP5 and CESP6) aka Cesp is the country's third largest power generator, majority owned by the State of Sao Paulo. CESP operates 6 hydroelectric plants with total installed capacity of 7,456 MW and reported net revenues of BRL1,983 million in the last twelve months through Sept. 30, 2006. Energias do Brasil S.A. is an integrated utility group controlled by Energias de Portugal, with activities in generation, distribution and commercialization of electricity. Its power distribution subsdiaries Bandeirante, Escelsa and Enersul represent altogether some 64% of consolidated total assets, while the power generation assets represent some 31%. * * * In May 2007, Moody's Investors Service placed a Ba2 long-term corporate family rating on Energias do Brasil. JAPAN AIRLINES: Studies Safety Measures Along With Trade Unions --------------------------------------------------------------- Japan Airlines International Co., Ltd. has started jointly studying safety measures with its four unions after problems involving its flights, Kyodo News reports. According to Kyodo News, JAL and the trade unions have set up a flight safety working group to determine the causes of the incidents and to develop preventive measures. Kyodo News notes that this is the first time the management and the unions, which often conflict over wages and working conditions, agree to carry out a joint study of safety measures. About Japan Airlines 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. 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. UAL CORPORATION: Capt. Wallach Joins Two Board Committees --------------------------------------------------------- In a regulatory filing with the United States Securities and Exchange Commission, Paul R. Lovejoy, senior vice president, general counsel and secretary of UAL Corporation, disclosed that on Feb. 21, 2008, the UAL board of directors approved a recommendation from the Company's Governance Committee to allow Captain Stephen A. Wallach to serve on the Public Responsibility and Human Resources Committees of the UAL Board. As previously reported, Capt. Wallach was elected to the UAL Board effective on Jan. 1, 2008. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 154 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/ or 215/945-7000). * * * Fitch, on May 2007, affirmed the long-term issuer default ratings of UAL Corporation and its principal operating subsidiary United Airlines Inc. at B- originally issued on April 11, 2006. UAL continues to carry these ratings, as well as Fitch's BB- bank loan debt rating, as of March 25, 2008. Outlook remains positive. As of March 25, 2008, UAL's long-term corporate family and probability-of-default ratings at B2 issued by Moody's Investors Service still applies. The outlook is stable. Also, UAL's B long-term foreign and local issuer credit ratings given by Standard & Poor's Ratings Services still holds as of March 25, 2008. The outlook is stable. UAL CORP: Labor, Political Leaders Balk at Outsourcing Plan ----------------------------------------------------------- Hundreds of supporters including Teamsters, United Airlines Inc. mechanics, Bay Area union members and elected officials joined Teamsters Union General President Jim Hoffa and San Francisco Mayor Gavin Newsom at a rally on the steps of City Hall to protest a plan by UAL Corporation to outsource nearly 4,500 jobs at its San Francisco International Airport maintenance facility. United currently outsources 45% of all its maintenance work to foreign repair stations that are not held to the same standards as their U.S.-based counterparts. If a proposed plan by UAL to close the maintenance facility at SFO is allowed to occur, more than 4,500 Bay Area jobs could be lost. "In Indianapolis, United closed down the maintenance base and thousands lost their jobs and it devastated the community," said Rich Petrovsky, an airline mechanic at the SFO facility. "It's time to stop outsourcing and mechanics at United are drawing the line. We are working with the Teamsters and we say to United enough is enough." Petrovsky is one of the 9,300 UAL mechanics nationwide voting on whether to retain the Teamsters Union as their bargaining representative. Under their current representaion, mechanics have seen thousands of jobs leave the country unchecked. The proposed closure of the SFO facility is just the latest threat to American jobs by UAL. "The Teamsters Union will work tirelessly to make certain that the San Francisco maintenance facility remains open," Mr. Hoffa said. "United must treat you as the highly trained and valuable workforce you are and respect the hard work you and all the United mechanics nationwide do day in and day out to ensure that our families fly on safe and secure aircraft." In addition to Newsom, the San Francisco UAL mechanics at the rally received the support of a number of state and local politicians including State Senators Leland Yee and Carol Migden, Assembly members Ira Ruskin and Fiona Ma and District Attorney Kamala Harris. "These 4,500 United Airlines mechanic jobs represent the men and women who live right here in San Francisco," Mr. Newsom said. "They send their children to our public schools, support our local economy and contribute to the fabric of our community. I would like them to remain at SFO, and I would like to see them remain organized for the benefit of their families." UAL's outsourcing and plans to close the SFO facility has also drawn criticism on a national level with U.S. Senator Barbara Boxer and presidential candidate and U.S. Senator Barack Obama authoring letters of support for the workers. "I am concerned about the future of the approximately 4,000 aviation mechanics who service aircraft at the San Francisco hub of United Airlines," Boxer said in her letter of support to the airline mechanics. "It is essential to maintain a domestic aviation mechanic workforce that is highly skilled and provides a superior level of safety and security." Obama Equally Critical of UAL's Actions "The practice of outsourcing aircraft maintenance overseas raises security concerns and pits our skilled mechanics making a middle class living against less skilled, less well protected workers abroad," Obama said in his letter addressed to the Teamster Aviation Mechanics Coalition. "I applaud your efforts to organize a strong union at United Airlines, and look forward to working with you on the critical issue of outsourcing now and in the years ahead." Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women in the United States, Canada and Puerto Rico. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 154 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * Fitch, on May 2007, affirmed the long-term issuer default ratings of UAL Corporation and its principal operating subsidiary United Airlines Inc. at B- originally issued on April 11, 2006. UAL continues to carry these ratings, as well as Fitch's BB- bank loan debt rating, as of March 25, 2008. Outlook remains positive. As of March 25, 2008, UAL's long-term corporate family and probability-of-default ratings at B2 issued by Moody's Investors Service still applies. The outlook is stable. Also, UAL's B long-term foreign and local issuer credit ratings given by Standard & Poor's Ratings Services still holds as of March 25, 2008. The outlook is stable. UAL CORP: Teamsters Wants Compensation Practices Overhauled ----------------------------------------------------------- The Teamsters sent a letter to UAL Corporation demanding that it overhaul its compensation practices. If the company makes no significant changes, the International Brotherhood of Teamsters General Fund will urge fellow shareholders to withhold votes from directors serving on the subcommittee that set UAL's exorbitant executive pay. "On the heels of a three-year bankruptcy, UAL rewarded its CEO with US$39.7 million. This level of excess is indefensible," said C. Thomas Keegel, general secretary-treasurer of the Teamsters General Fund. The letter was sent Feb. 20, 2008, to UAL's Human Resources Subcommittee in anticipation of this year's proxy season. The union's General Fund requests that the Human Resources Subcommittee hire a new compensation consultant; change its comparative peer group for compensation from similarly sized businesses to airlines; reduce excessive golden parachutes; and appoint new directors to the subcommittee. "Long-term shareholders have watched their investments erode, the Pension Benefit Guaranty Corporation was forced to take on the company's pension obligations, and thousands of workers have either lost their jobs or suffered significant cuts in wages, healthcare and pensions. Aircraft maintenance workers' pensions were cut in half," Keegel said. "How does this kind of performance generate an almost US$40 million pay package? Directors must be held accountable for these decisions." In its letter, the Fund said UAL executives are the highest paid airline executives. Even the lowest paid UAL senior executive officer's pay exceeds that of CEOs at peer airlines. The letter also criticized the track records of the directors on their other board service, calling their collective executive compensation experience and performance record "a 'perfect storm' of flawed practices." "While UAL's board is faced with critical decisions regarding potential mergers, acquisitions and spin-offs, shareholders need to know that these choices will be made with a focus on creating long-term value," Keegel said. "Executive compensation must not drive UAL's business plan. If we don't see substantial changes in pay practices following our recommendations, we will ask our fellow shareholders to join us in withholding votes from these directors come May." The Teamsters union has long fought to curtail excessive executive pay, initiating successful executive severance reform at Bank of America, Coca-Cola, McKesson and General Electric. The Teamsters work closely with a coalition of other institutional investors pressing for pay-for-performance reforms through shareholder resolutions and discussions with companies. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 154 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Fitch, on May 2007, affirmed the long-term issuer default ratings of UAL Corporation and its principal operating subsidiary United Airlines Inc. at B- originally issued on April 11, 2006. UAL continues to carry these ratings, as well as Fitch's BB- bank loan debt rating, as of March 25, 2008. Outlook remains positive. As of March 25, 2008, UAL's long-term corporate family and probability-of-default ratings at B2 issued by Moody's Investors Service still applies. The outlook is stable. Also, UAL's B long-term foreign and local issuer credit ratings given by Standard & Poor's Ratings Services still holds as of March 25, 2008. The outlook is stable. UAL CORP: U.S. Workers Get US$110 Million in Profit Sharing ----------------------------------------------------------- UAL Corporation subsidiary, United Airlines Inc., distributed US$110 million in profit sharing payments to U.S.-based employees. For the year, employees earned a total of US$170 million in payments related to 2007 performance. Eligible employees can expect to receive a profit sharing payment of approximately US$1,200 before withholdings for every US$30,000 of eligible earnings. "T[he recent] profit sharing payments are a result of the strong performance by our employees in 2007," said Glenn Tilton, United chairman, president and CEO. "Our employees worked together and stayed focused on our performance and customers, in a year of challenging weather and difficult ATC conditions. We are all proud of what we accomplished together and look forward to building upon that in 2008." Profit sharing will be paid to most U.S.-based employees today, and union-represented employees will also receive their Success Sharing payout for United's 2007 financial performance. AFA-represented employees elected to receive their profit sharing award in the form of a company contribution to their 401(k) to the extent possible. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News, Issue No. 154 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Fitch, on May 2007, affirmed the long-term issuer default ratings of UAL Corporation and its principal operating subsidiary United Airlines Inc. at B- originally issued on April 11, 2006. UAL continues to carry these ratings, as well as Fitch's BB- bank loan debt rating, as of March 25, 2008. Outlook remains positive. As of March 25, 2008, UAL's long-term corporate family and probability-of-default ratings at B2 issued by Moody's Investors Service still applies. The outlook is stable. Also, UAL's B long-term foreign and local issuer credit ratings given by Standard & Poor's Ratings Services still holds as of March 25, 2008. The outlook is stable. XERIUM TECHNOLOGIES: Delays Filing of December 2007 Form 10-K ------------------------------------------------------------- Xerium Technologies, on March 18, 2007, filed a notice of late filing on Form 12b-25 with the U.S. Securities and Exchange Commission with respect to its annual report on Form 10-K for the period ended Dec. 31, 2007. In light of the company’s risk of financial covenant default under its Credit and Guaranty Agreement, Stephen Light, the company’ new chief executive officer who was appointed effective Feb. 11, 2008, and other members of senior management have been devoting the substantial portion of their time seeking solutions to these financial covenant issues. In addition, in connection with the company’s annual assessment of goodwill, the company has concluded that an impairment of the goodwill of its roll covers segment may exist. While the company does expect there to be an impairment, the company requires further time to complete the analysis of whether an impairment does in fact exist and, if so, the amount of the impairment. As a result of these two matters, the company has not completed its financial statements and certain disclosures for inclusion in its annual report for the period ended Dec. 31, 2007. About Xerium Technologies Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. XERIUM TECHNOLOGIES: Discloses Likely Bankruptcy Filing ------------------------------------------------------- Xerium Technologies disclosed in a regulatory filing with the U.S. Securities and Exchange Commission on March 18, 2008 that while it was in compliance with it financial covenants under the Credit Agreement as of Dec. 31, 2007 and expects that it will generate cash flow from operations sufficient to service the debt under the Credit Agreement prior to the stated maturity of the debt if there is not otherwise an event of default under the debt, the company is currently pursuing alternatives to address expected financial covenant non-compliance in the first quarter of 2008 and future periods. Failing to meet a financial covenant under the Credit Agreement constitutes an event of default under the Credit Agreement. While the company does not expect that the lenders would do so immediately, upon an event of default, the lenders could accelerate the debt under the Credit Agreement, causing it to become due and payable. If this were to occur, the company would need to consider all options available to it, which could include a possible bankruptcy filing. The company is in discussions with potential investors regarding a private placement of equity securities, the net proceeds of which the company would use to pay down debt under the Credit Agreement, and is also seeking an amendment to the financial covenants under the Credit Agreement with its lenders. There can be no assurance that the company will be successful in completing either the private placement or the amendment or that, if achieved, these will be achieved at a sufficient level and on sufficient terms to allow the Company to meet the financial covenants under the Credit Agreement and to operate effectively in future periods. If the company is not able to address the financial covenant non-compliance issues described, the company expects that its independent auditors would need to include an explanatory paragraph in their opinion with respect to the Company’s financial statements for the year ended Dec. 31, 2007 expressing doubt about the ability of the Company to continue as a going concern. About Xerium Technologies Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. XERIUM TECHNOLOGIES: Cancels Dividend for First Quarter 2008 ------------------------------------------------------------ Xerium Technologies disclosed that pursuant to its dividend policy, the company’s Board of Directors has determined not to declare a dividend on the company’s common stock in the first quarter of 2008. The company has instead determined to retain cash that would have otherwise been used for a dividend for the repayment of debt or other purposes. The company does not currently expect to pay dividends on its common stock for the foreseeable future. Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. XERIUM TECHNOLOGIES: S&P Cuts Ratings on Likely Covenant Breach --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating and bank loan ratings on Youngsville, North Carolina- based Xerium Technologies Inc. to 'CCC+' from 'B+'. At the same time, the ratings were placed on CreditWatch with negative implications. "The downgrade and CreditWatch placement reflect the increased likelihood of a bankruptcy filing, as Xerium announced that it expects to breach certain financial covenants under its current credit facility during the first quarter and future periods, which could constitute a default under the facility," said Standard & Poor's credit analyst James Siahaan. Xerium, a global manufacturer of clothing and roll covers used in the paper making process, is seeking relief from creditors and is attempting to privately place equity to help remedy the situation. However, these proposed solutions are unlikely to be satisfactory, given current credit and equity market conditions. Xerium also filed a Form 12b-25 report with the SEC, indicating that it would be unable to file its annual report in a timely fashion. The company requires additional time to determine the specifics of a possible asset impairment on its roll covers operation. The confluence of these issues has resulted in a dramatic weakening of the company's credit quality. S&P could lower the ratings further if Xerium fails to complete an equity issuance and rectify its covenant violation. Headquartered in Wesborough, Massachusetts, Xerium Technologies, Inc. -- http://xerium.com/-- manufactures and supplies two types of products used primarily in the production of paper: clothing and roll covers. The company operates under a variety of brand names and owns a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products, designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries, including Austria, Brazil and Japan, Xerium Technologies has approximately 3,900 employees. ========================== C A Y M A N I S L A N D S ========================== AHFP PANTERA: Proofs of Claim Filing Deadline Is April 3 -------------------------------------------------------- AHFP Pantera's creditors have until April 3, 2008, to prove their claims to Bobby Toor and Dwight Dube, 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. AHFP Pantera's shareholders agreed on Feb. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Dwight Dube Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands AHFP SYMPHONY: Proofs of Claim Filing Is Until April 3 ------------------------------------------------------ AHFP Symphony's creditors have until April 3, 2008, to prove their claims to Bobby Toor and Dwight Dube, 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. AHFP Symphony's shareholders agreed on Feb. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Dwight Dube Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands AHFP TRIATTO: Proofs of Claim Filing Deadline Is April 3 -------------------------------------------------------- AHFP Triatto's creditors have until April 3, 2008, to prove their claims to Bobby Toor and Dwight Dube, 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. AHFP Triatto's shareholders agreed on Feb. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Dwight Dube Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands ATLAS CPO: Proofs of Claim Filing Is Until April 3 --------------------------------------------------- Atlas CPO Series III Limited's creditors have until April 3, 2008, to prove their claims to Joshua Grant and Sarah Kennedy, 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. Atlas CPO's shareholder decided on Feb. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Joshua Grant and Sarah Kennedy Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands BLUECREST INT'L: Sets Final Shareholders' Meeting for April 2 ------------------------------------------------------------- Bluecrest International Limited will hold its final shareholders' meeting on April 2, 2008, at 9:00 a.m., at Close Brothers (Cayman) Limited, on the 4th Floor of Harbor Place in George Town, 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 six years from the dissolution of the company, after which they may be destroyed. Bluecrest International's shareholders agreed on Feb. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: John Sutlic Attn: Kim Charaman Close Brothers (Cayman) Limited Harbor Place, Fourth Floor P.O. Box 1034, Grand Cayman, KYI-1102 Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 FORTUNATUS ETERNUS: Proofs of Claim Filing Deadline Is April 3 -------------------------------------------------------------- Fortunatus Eternus Limited's creditors have until April 3, 2008, to prove their claims to Royhaven Secretaries Limited, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Fortunatus Eternus' shareholders agreed on Feb. 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Royhaven Secretaries Limited Attn: Sharon Meghoo Coutts House 1446 West Bay Road P.O. Box 707, Grand Cayman KY1-1107 Cayman Islands Telephone: 945-4777 Fax: 945-4799 GANNET V: Proofs of Claim Filing Ends on April 3 ------------------------------------------------ Gannet V Funding Corporation's creditors have until April 3, 2008, to prove their claims to Bobby Toor and Steven O'Connor, 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. Gannet V's shareholders agreed on Feb. 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Steven O'Connor Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands LEIF INVESTMENTS: Proofs of Claim Filing Deadline Is April 3 ------------------------------------------------------------ Leif Investments Limited's creditors have until April 3, 2008, to prove their claims to Joshua Grant and Giles Kerley, 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. Leif Investments' shareholder decided on Feb. 13, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Joshua Grant and Giles Kerley Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands MONBOUQUETTE CONSULTING: Proofs of Claim Filing Is Until April 3 ---------------------------------------------------------------- Monbouquette Consulting And Advisory, Limited's creditors have until April 3, 2008, to prove their claims to Linburgh Martin and Jeff Arkley, 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. Monbouquette Consulting's shareholder decided on Feb. 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Linburgh Martin and Jeff Arkley Attn: Neil Gray Close Brothers (Cayman) Limited Fourth Floor, Harbor Place P.O. Box 1034, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 REDWOOD HOTEL: Court to Hear Wind-Up Petition on April 1 -------------------------------------------------------- The Grand Court of the Cayman Islands will hear the wind-up petition for Redwood Hotel Investment Corp. on April 1, 2008, at 10:00 a.m. at the Law Courts, George Town, Grand Cayman, Cayman Islands. Patricia Miller of 11331 Burnham Street, California, USA, filed the petition before the Grand Court on Feb. 20, 2008. Anyone who wants to attend the hearing of the petition, whether to support or oppose it, must give notice of their intention to do so by 4:00 p.m. on March 31, 2008, to the Attorneys at Law for the petitioner: Ritch & Conolly P. O. Box 1994, Queensgate House George Town, Grand Cayman Cayman Islands. The debtor can be reached at: Redwood Hotel Investment Corp. Cayman International Corporate & Marine Services Ltd. P.O. Box 822 Jack & Jill Building, Suite 10 19 Fort Street George Town, Grand Cayman KY1-1103 Cayman Islands ========= C H I L E ========= RED HAT: LatAm Online Retailer Migrates to Red Hat & JBoss ---------------------------------------------------------- Red Hat has disclosed that deRemate.com, an online trade community with presence in Argentina, Chile, Colombia and Mexico, has migrated to Red Hat and JBoss solutions to create an in-house-controlled portal to enable the payment of purchases completed through the company’s online retail sites throughout the region. Using Red Hat Enterprise Linux and JBoss Enterprise Application Platform on Dell PowerEdge hardware, the company has achieved cost savings, reliability, ease of implementation and scalability. Formerly relying on a third party for services, deRemate.com decided to search for a cost-effective and reliable solution that could provide flexibility and reliable support in developing its in-house portal. It ultimately selected Red Hat Enterprise Linux and JBoss Enterprise Application Platform for the solutions’ customizable flexibility and low costs. “In our initial research, we examined competitive solutions in the industry according to their performance, reliability, scalability and economic benefits. We determined that the leading solutions delivered by Red Hat and JBoss were the best fit in terms of this criteria,” said Alfredo Yung, CTO at deRemate.com. “We are happy with our decision to implement Red Hat and JBoss solutions because we believe that we’ll have the best, most cost-effective solution available.” With Red Hat and JBoss solutions, deRemate.com created a new architecture for its transactional sites and in June 2007, deRemate.com introduced DePagos.com, a payment platform that allows any user, individual or company to receive or send online payments in a safe, fast and secure way, only using an email address. The solution, currently only in operation in Argentina and Chile, is expected to be rolled out in Colombia and Mexico in the near future. In Argentina, DePagos.com has achieved significant cost savings, enjoyed its new solution’s transparency and benefited from reduced use of resources, requiring only 10-15 people within its organization for the development, operation and testing phases of its implementation. “Our experience with our new combined Red Hat and JBoss solution and the related support has been excellent. We’re happy to be dealing with products with an established presence in the market, with a large community of developers backing them up and with the support of well-known organizations,” said Mr. Yung. “Our new solution has larger potential than we’re even using so far, so we’ll later see what other business opportunities arise from our new platform, and how our business will evolve as a result.” Headquartered in Raleigh, North Carolina Red Hat, Inc. -- http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 19, 2007, Standard & Poor's Ratings Services revised its outlook on Red Hat Inc. to positive from stable and affirmed the ratings, including the 'B+' corporate credit rating. =============== C O L O M B I A =============== ECOPETROL: Will Keep 30% Stake in Caracara Concession ----------------------------------------------------- Ecopetrol will keep its 30% stake in the Caracara concession after Spanish oil firm Compania Espanola de Petroleos SA agreed to purchase a majority interest in the concession, Dow Jones Newswires reports. Dow Jones notes that the Caracara concession is in Colombia's Llanos Basin. According to Compania Espanola, it will get a 70% stake in the concession from its current operator and owner Hupecol Caracara LLC, while the rest of the stake will remain in hands of Ecopetrol. Dow Jones relates that the accord is part of Compania Espanola's strategy to increase reserves and production through the investment of US$1.8 billion through 2012. The transaction is awaiting approval from the regulator. Compania Espanola told Dow Jones that the project has an output of 20,000 barrels a day and estimated reserves of 40 million barrels. Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. Ecopetrol produced 385,000 barrels a day of oil and gas in 2006 and has 330,000 barrels a day of refining capacity, according to the company's Web site. In 2005 it produced about 60 percent of Colombia's daily output. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A.'s foreign and local currency issuer default ratings at 'BB+' and 'BBB-', respectively. SOLUTIA INC: Appoints Nine Members to Board Committees ------------------------------------------------------ On March 7, 2008, nine individuals were elected to serve as members of the committees of Solutia Inc.'s board of directors, according to Rosemary L. Klein, Solutia senior vice president, general counsel and secretary, in a regulatory filing with the U.S. Securities and Exchange Commission. These are: (a) Audit & Finance Committee W. Thomas Jagodinski - Chair of the Committee Robert K. deVeer, Jr. J. Patrick Mulcahy Robert A. Peiser Gregory C. Smith (b) Executive Compensation & Development Committee J. Patrick Mulcahy - Chair of the Committee Eugene I. Davis Robert K. deVeer, Jr. James P. Heffernan William T. Monahan (c) Governance Committee Robert A. Peiser - Chair of the Committee Eugene I. Davis James P. Heffernan W. Thomas Jagodinski Gregory C. Smith 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. 122; 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 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. SOLUTIA INC: To Begin Financial Reporting on Five Segments ---------------------------------------------------------- Solutia Inc. will realign its financial reporting to five segments from its current two-segment reporting structure. The five segments will be: Saflex(r), CPFilms(r), Technical Specialties (including Flexsys(r), Therminol(r) and Skydrol(r)), Integrated Nylon, and Other. "This change will promote a better understanding of the underlying nature of Solutia's businesses by providing a more detailed analysis of each segment," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc. "In addition, the new segment reporting will more effectively communicate Solutia's current operating environment and business unit strategy." The company will present its future results in this new reporting format. Key financial metrics for 2007 are presented in the new format at the end of this press release. In addition, 2007 and 2006 quarterly key financial metrics will be posted on the investor section of the company's Web site -- http://www.solutia.com/ Portfolio Transformation and Business Investment "Over the last few years, we have made great strides in transforming our business into a global specialty chemicals and performance materials company with leading market positions, clear competitive differentiation and attractive growth opportunities," said Quinn. "In line with this strategy, we had many accomplishments in 2007 including the opening of our Saflex plant in Suzhou, China, the acquisition of Flexsys -- the world leader in rubber chemicals, and the continued restructuring of our integrated nylon business from a U.S.-focused carpet fiber producer to a global engineered thermoplastics and polymers supplier. As a result, our diversified portfolio better positions us to capitalize on the growth opportunities that exist globally while reducing our exposure to industry cycles. Although we recognize that there remains work to be done, we take comfort from the path we have traveled to get to this point." "Our financial results in 2007 demonstrate the success of our strategy, the resolve of our execution, and the strong foundation upon which we base our outlook for the future," added Quinn. "For the year, we delivered significant revenue and underlying earnings growth across all of our business units and across multiple geographic regions. We achieved particularly strong growth in Asia, which reported a 55% increase in revenue over the previous year." Significant Top-Line Growth Solutia reported net sales of US$3,535 million for 2007, an increase of 26% compared to net sales of US$2,795 million for 2006. The majority of the increase came as the result of Solutia's acquisition of the 50% stake in Flexsys, which resulted in Solutia's 100% ownership and consolidation of Flexsys sales since May 1, 2007. Excluding Flexsys, net sales increased 9% year-over-year, with 4% of the increase attributed to higher sales volumes, 4% attributable to higher selling prices and the remainder from currency exchange movements. Sales increased in all businesses in 2007 primarily due to strong international growth in CPFilms, Saflex and Integrated Nylon. Net sales outside the United States accounted for 55% of the total revenue, with 25% from Asia, 23% from Europe, and 7% from all other regions. Net Income/Loss and Analysis of Significant Items Solutia reported a consolidated net loss from continuing operations of US$222 million for the year ended 2007 versus a consolidated net loss from continuing operations of US$56 million for the year ended 2006. Solutia's continuing operations were negatively impacted by reorganization items and other unusual gains and charges totaling approximately US$293 million after-tax in 2007 and US$76 million for 2006. "The charges Solutia incurred during 2007 and within the fourth quarter in particular were entirely associated with reorganization items," said James M. Sullivan, senior vice president and chief financial officer, Solutia Inc. "These items are not related to our underlying business performance, and are primarily related to changes in claims valuations for certain creditors within the reorganization process. Excluding reorganization items and other unusual gains and charges, net income from continuing operations increased to $71 million from $20 million in 2006." Increased volumes and selling price improvements in all businesses contributed positively to the Company's results. Raw material costs continued to rise during the year; however, selling price increases offset this impact. New Segment Reporting The company utilizes EBITDAR as the comparable basis given future results will be impacted by the adoption of fresh start accounting as of its emergence date, which will impact the company's depreciation and amortization expense, as well as eliminate the reorganization items classification in future periodic filings. Therefore in the first quarter of 2008, the company will begin to utilize EBITDAR as its measure of segment profit/loss. The table below provides historical financial information based on the company's new financial segment reporting format. Use of Non-U.S. GAAP Financial Information EBITDAR is defined as operating profit from continuing operations, plus equity earnings from affiliates, other income, depreciation and amortization and further adjusted for reorganization costs associated with bankruptcy and other charges. EBITDAR is not a recognized term under GAAP and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Management believes that EBITDAR is meaningful because it provides a way to identify operating results of the company had it not been in the reorganization process during the time period being reported upon. EBITDAR is a typical financial measure used for companies during the restructuring process. In addition, management believes that measures of income excluding non-recurring, non-operational items are meaningful because they provide insight with respect to Solutia's ongoing operating results. The measurements are not recognized in accordance with generally accepted accounting principles and should not be viewed as an alternative to GAAP measures of performance. Because not all companies use identical calculations, this presentation of EBITDAR may not be comparable to similarly titled measures of other companies. 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. 122; 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 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. TERMOCANDELARIA SCA: Fitch Assigns BB- LT Issuer Default Ratings ---------------------------------------------------------------- Fitch Ratings has assigned 'BB-' foreign and local currency Issuer Default Ratings to Termocandelaria S.C.A. E.S.P. Concurrently, Fitch has assigned a 'BB-' foreign currency long- term debt to Termocandelaria Power Ltd.'s outstanding senior secured US$90.1 million notes. The rating outlook is stable. Termocandelaria's ratings reflect the company's guaranteed reliability charges (capacity payments) during the next five years according to Colombia's recently revised regulatory framework. Resolution CREG-071 of 2006 established a new firm capacity compensation scheme for Colombian generation companies, which favorably affected Termocandelaria and granted the company an approximately US$34 to US$37 million in annual, dollar linked, capacity payments until December 2012. Furthermore, resolution CREG-019 of 2008 established that existing plants will be allocated 100% of their firm energy after November 2012. Therefore, Termocandelaria is expected to continue receiving firm energy remuneration in the long term, which will equal the current firm energy times the resulting price from the energy auctions. This price is subject to a cap and floor protection for the 3 years proceeding December 2013. Termocandelaria operates in a highly competitive electricity market dominated by low cost hydro electric generation companies. Therefore, the company does not expect to be regularly dispatched but to be a back-up generation plant for the Colombian electricity interconnected system. Furthermore, the Colombian electricity market's installed capacity sufficiently meets current demand and new capacity is not expected to be needed until 2013. The company's historically weak financial profile reflects the company's past challenging operating environment. Unfavorable regulatory changes during 2001, coupled with high debt levels, decreasing demand and additional transmission capacity to Termocandelaria's region forced the company to decrease its dispatch to a minimum. Going forward, increased income from capacity payments should improve the company's financial profile. The ratings do not incorporate the possible plant conversion to combined cycle given that its completion and financing is currently uncertain. The conversion may be considered neutral to negative for the company's credit profile depending on how it is financed. However, capital expenditures for this project are considered significant and might increase leverage. Post financial restructuring trust structure provides satisfactory protection for note-holders granting them easier access to the company's assets in an event of default. The trust structure also mitigates some Change of Control issues as well as willingness issues by preventing the company from increasing leverage and requiring high debt prepayment fees. This is incorporated into the company's IDRs. Located near the city of Cartagena, Colombia, Termocandelaria is a thermoelectric generation company with a net installed capacity of 314 mega watts. The company has been recently converted to operate with either natural gas or diesel, when initially only used natural gas. The company serves as a back up plant for when the country faces drought seasons and hydroelectric generation capacity is low or when transmission between the interior of the country and the north side is interrupted. ================== C O S T A R I C A ================== DOLE FOOD: Unit Recalls Cantaloupes From Costa Rica --------------------------------------------------- Dole Food Co. Inc.'s unit Dole Fresh Fruit Co. has recalled the cantaloupes imported from Costa Rica, Emaxhealth.com reports. Emaxhealth.com relates that Dole Fresh recalled the cantaloupes in the Eastern U.S. and Quebec due to potential health concerns -- some cantaloupes packed on Jan. 25, 26, and 27, of last year by an independent, third-party grower in Costa Rica were found to be positive for Salmonella. Infection with Salmonella could result in more severe illnesses and potentially can be fatal, Emaxhealth.com says, citing the U.S. Food and Drug Administration. No illnesses have been reported but Dole Fresh decided to recall the cantaloupes, the report says. About 6,104 cartons of cantaloupes were distributed between Feb. 5 and Feb. 8, 2007, Emaxhealth.com states. Based in Westlake Village, California, Dole Food Company Inc. -- http://www.dole.com/-- is the world's largest producer and marketer of high-quality fresh fruit, fresh vegetables and fresh-cut flowers. Dole markets a growing line of packaged and frozen foods and is a produce industry leader in nutrition education and research. Dole's fresh-cut! Flowers segment sources, imports and markets fresh-cut flowers, grown mainly in Colombia and Ecuador, primarily to wholesale florists and supermarkets in the U.S. * * * As reported in the Troubled Company Reporter-Latin America on March 26, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Dole Food Co. Inc. and Dole Holding Co. LLC, to 'B-' from 'B'. S&P said the outlook is negative. SIRVA INC: Court Okays Sale of U.K. & Ireland Operations to TEAM ---------------------------------------------------------------- Sirva Inc. and its debtor-affiliates received authority from the U.S. Bankruptcy Court for the Southern District of New York to consummate the Sale of their ownership shares in SIRVA Group Holdings Limited and SIRVA Ireland, despite objections. Triple Net Investments IX, LP, opposed the Debtors' request to sell their ownership shares to companies managed by TEAM Relocations Limited, for US$4,200,000. Robert E. Nies, Esq., at Wolff & Samson PC, in New York, asked the Court to delay approval of the Motion until the Debtors make greater disclosure of the circumstances that require approval of the "extraordinary and exigent sale." Triple Net asked that: -- the first disclosure must address TEAM, and its "dual relationship" to the Purchasers and to the Committee; and -- a full disclosure of the Committee's process in reaching support of the Motion must be made. Triple Net stated that the Motion and the contract of Sale is not clear with regard to the legal exposure of SIRVA, Inc., the parent company of the foreign non-debtor subsidiaries, after the Sale. According to Mr. Nies, notwithstanding the potential benefit of the Debtors in discharging their obligations with respect to the Sale, they need to explain in greater detail how the Motion will benefit all unsecured creditors, particularly the Class 5 claimants. Absent full disclosure, Triple Net insisted that despite the need to fund SIRVA UK and avoid liquidation, the Motion should be denied for having to abandon a normal sale process under Section 363 of the Bankruptcy Code. * * * Judge James M. Peck authorized the Debtors to: * consummate the Sale of the shares to TEAM, pursuant to the terms of the Share Purchase Agreement; * close the Sale contemplated by in the Agreement; and * execute and close fully the Agreement. Judge Peck determined that TEAM undertook the transactions contemplated by the Agreement in accordance with Section 363(m) of the Bankruptcy Code; hence (i) the reversal or modification on appeal of the authorization to consummate the Sale will not affect the validity of the Sale, and (ii) TEAM is entitled to the full protections of Section 363(m). Furthermore, Judge Peck approved the Notice of Sale to be served on all parties-in-interest with respect to the Sale. The sale of the shares by the Debtors to TEAM in a Private Sale with no competitive bidding is approved and authorized in light of, among others, the liquidity needs of SIRVA UK, Judge Peck held. All objections to the Motion were withdrawn at the hearing held March 21, 2008. 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. The combined hearing on the adequacy of the disclosure statement and the confirmation of the Debtors' proposed Plan of Reorganization is set April 18, 2008. (Sirva Inc. Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) SIRVA INC: Committee Wants Class 5 Claims Bar Date Set to May 29 ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sirva Inc. and its debtor-affiliates asks the U.S. Bankruptcy Court for the Southern District of New York to: (a) authorize the Debtors to establish May 29, 2008, 5:00 p.m., Pacific Time, as the Claims Bar Date for holders of Class 5 claims; (b) approve the procedures for filing proofs of claim; and (c) approve the form and manner of notice for the Class 5 Claims Bar Date. The Committee relates that it is seeking to obtain a distribution to holders of Class 5 Claims, which the Debtors have affirmed to be no more than 48 claimholders. The Debtors' position is that no bar date for Class 5 claims is necessary because holders of these claims are to receive no distribution, Ilan D. Scharf, Esq., at Pachulski, Stang, Ziehl & Jones LLP, relates. However, in the event that holders of Class 5 Claims become entitled to a distribution on account of their claims -- either after litigation or a settlement -- the Committee and the Debtors may well need to know the amount of Class 5 Claims, Mr. Scharf says. "As such, the Committee asks the Court to establish a deadline for parties to assert Class 5 Claims," Mr. Scharf explains. The Committee asks the Court to direct the Debtors to serve (i) the notice of Class 5 Bar Date and (ii) a proof of claim form substantially in the form of Official Form No. 10 upon Class 5 Claimholders, the United States Trustee, and other parties-in- interest as deemed appropriate by the Debtors and the Committee, by no later than April 22, 2008, to provide potential claimants ample time to prepare and file their claims. The Committee further asks the Court to direct the Claimants to file their proofs of claim with the Claims Agent, Kurtzman Carson Consultants LLC, at 2335 Alaska Ave., El Segundo, CA 90245, no later than May 29, 2008. Failure to appropriately file a proof of claim will bar a claimant from: -- asserting claims against the Debtors; -- voting on any plan of reorganization filed by the Debtors; and -- participating in any distribution on account of the claims. Mr. Scharf notes that since there are no unknown holders of Class 5 Claims, a "publication notice is unnecessary under the circumstances." 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. The combined hearing on the adequacy of the disclosure statement and the confirmation of the Debtors' proposed Plan of Reorganization is set April 18, 2008. (Sirva Inc. Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) US AIRWAYS: S&P Affirms Ratings & Revises Outlook to Stable ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on US Airways Group Inc. to stable from positive. S&P has affirmed all ratings, including the 'B-' long-term corporate credit rating. "The outlook revision is based on an expected weakening of the company's financial profile from sustained high fuel prices," said Standard & Poor's credit analyst Betsy Snyder. "We expect the company to post a significant loss in 2008 not only because of higher fuel prices, but also due to weaker demand caused by a slowing economy." The ratings on US Airways Group Inc. reflect the high risk profile of the U.S. airline industry, a substantial debt burden, limited financial flexibility, and ongoing labor integration problems. Ratings also incorporate the company's relatively good liquidity and modest debt maturities over the next several years. US Airways Group is the seventh-largest U.S. airline, as measured by revenue passenger miles and available seat miles. America West Holdings Corp., parent of America West Airlines Inc., completed a reverse merger with US Airways Group (America West effectively acquired US Airways, with US Airways Group becoming the new holding company for both airlines) on Sept. 27, 2005. The merger occurred on the day US Airways emerged from Chapter 11 bankruptcy protection. The two airlines were finally combined under one operating certificate on Sept. 26, 2007, after operating independently up to that date. The merger resulted in a much broader route network; America West had focused primarily in the Southwest, while US Airways had focused on the eastern half of the U.S. Combined, they operate out of primary hubs at Charlotte, North Carolina, Phoenix, and Philadelphia, and secondary hubs at Las Vegas, New York (LaGuardia Airport), Washington, District of Columbia (Reagan Airport), and Boston to cities in the U.S., Canada, the Caribbean, Latin America, and Europe. Still, the combined route system is less extensive than those of other large U.S. network airlines and has a more limited presence in faster-growing international markets. Higher fuel prices and expected weaker demand have made a ratings upgrade for US Airways over the near to intermediate term less likely. However, S&P could revise the outlook to positive if fuel prices were to decline significantly and the fall off in demand is less than expected. Sustained high fuel prices and weakness in demand could result in a negative outlook. Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. US Airways has operations in Japan, Australia, China, Costa Rica, Philippines, and Spain, among others. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. =================================== D O M I N I C A N R E P U B L I C =================================== AES CORP: Commits to US$1 Billion Joint Venture With Riverstone --------------------------------------------------------------- The AES Corporation and Riverstone Holdings LLC have committed up to US$1 billion as part of a new joint venture to develop a global platform of utility-scale solar photovoltaic (PV) projects. Under terms of the agreement, AES, one of the world's largest global power companies, and Riverstone, a New York-based energy and power-focused private equity firm, will each provide up to US$500 million of capital over five years to invest in PV solar projects around the world. The jointly owned entity, to be called AES Solar, will seek to become a leading global developer, owner and operator of utility-scale solar installations that will be connected to the power grids that supply homes and businesses. These installations, ranging from fewer than two to more than 50 megawatts in size, will consist of land-based solar PV panels that capture sunlight and convert it into electricity, feeding the power grid directly. The business will follow the traditional independent power producer and wind business growth models by initially focusing on developments and projects in those countries offering the most attractive tariffs. As the costs of both PV panels and installation come down, AES Solar will look to expand into other countries with appropriate market incentives, with the goal of "grid parity" - being competitive with conventional fuels. "Renewable energy is an increasingly significant part of AES's overall portfolio and currently accounts for 20 percent of our global generation capacity," said Paul Hanrahan, AES President and Chief Executive Officer. "Solar is a natural extension of our business, much as wind generation has been, and we see tremendous opportunity for growth in this market. We look forward to partnering with Riverstone in this joint venture, to make solar power a viable energy source worldwide." Ralph Alexander, a Managing Director of Riverstone Holdings, said, "Because of its scale, this joint venture has the potential to change the fundamental economics of solar power. We are excited about partnering with AES, which we recognize as a world-class partner. The timing is right for this project given the spread of renewable power standards around the world, high energy prices and the continued progress of the solar photovoltaics industry to improve performance and reduce costs. Together, these trends present a substantial opportunity to create value and meet the world's growing demand for clean energy." The joint venture will be managed by a seven-member board of directors. Three directors each will be appointed by AES and Riverstone. Robert Hemphill will serve as President and CEO and the seventh member of the board. Mr. Hemphill joined AES in 1981 and has held a series of senior leadership positions, including serving as AES's Executive Vice President of Global Development. He also served as a member of the AES Board of Directors for seven years. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company has Latin America operations in Argentina, Brazil, Chile, Dominican Republic, El Salvador and Panama. * * * AES Corporation still carries Moody's Investors Service's B1 Corporate Family Rating and the senior unsecured rating. As of Feb. 6, 2008, the company still carried Fitch Ratings' 'BB/RR1' rating on US$500 million issue of senior unsecured notes due 2017. ============= E C U A D O R ============= PETROECUADOR: Oil Export Revenues Jump to US$1.27B in Jan.-Feb. --------------------------------------------------------------- Petroecuador said that its oil export revenues increased to US$1.27 billion in the first two months of this year, compared to US$487 million in the same period of 2007, Dow Jones Newswires reports. Dow Jones relates that data from Petroecuador indicates that in terms of volume, the company's oil exports increased 42% to 16.1 million barrels of crude oil between January and February 2008, from 11.37 million barrels in the same months last year. According to Dow Jones, Petroecuador's total exports include Napo crude from fields the government confiscated from Occidental Petroleum Co. in May 2006 for allegedly breaching the terms of the operating contract. Oriente crude exports totaled 11.03 million barrels in the first two months of 2008, with the average price increasing to US$80.53 a barrel from US$45.24 a barrel in the same months last year, the report says. Napo crude exports were about 5.07 million barrels, with the average price increasing to US$75.81 per barrel in the first two months of this year from US$38.89 in the same period in 2007, Dow Jones 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: Saves US$199.5 Million in Three Months ---------------------------------------------------- Petroecuador's President Fernando Zurita told Dow Jones Newswires that the company has saved US$199.5 million in the last three months due to decline in costs and better control in the sale of oil products. The Ecuadorian government will use the savings to help flood victims, Dow Jones reports, citing Mr. Zurita. Petroecuador will be able save US$540 million next year through projects like a new system to control the firm's oil production with private companies, Mr. Zurita told Dow Jones. 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. ============= J A M A I C A ============= AIR JAMAICA: 9 Stations Without TCC Provide Petrol to Workers ------------------------------------------------------------- Jamaica's auditor general found that nine gas stations provided petrol to Air Jamaica employees without having current Tax Compliance Certificates, The Jamaica Gleaner reports. As reported in the Troubled Company Reporter-Latin America on March 20, 2008, the Public Accounts Committee launched a probe over Air Jamaica's extension of contracts to firms who failed to comply with the requirements of the Contracts Commission. Air Jamaica named four petrol stations as being retained to provide petrol lifting services despite their failure to provide Tax Compliance Certificates. Air Jamaica's board member Millicent Hughes told The Gleaner that the nine companies include four that have since submitted the certificates to the auditor general and one that had withdrawn its services with the airline. The Gleaner relates that the other four petrol suppliers were in the process of either getting their certificates or their contracts would be terminated for noncompliance. The four operators were given until April 15 to provide the certificates, The Gleaner says, citing Ms. Hughes. The Gleaner notes that the Committee was also told that Air Jamaica owed the companies outstanding amounts. Committee Chairperson Omar Davies asked Ms. Hughes what had convinced Air Jamaica that this time, the delinquent firms would comply with the deadline, the report says. According to The Gleaner, Ms. Hughes answered, "(We have insisted that) if you can't produce in a month, we won't do business with you." Mr. Davies commented to The Gleaner, "All persons wishing to do business with Air Jamaica should be aware of the procurement guidelines governing Air Jamaica's acquisition of goods or services." Contracts with Air Jamaica were being examined to ascertain whether persons had valid certificates, The Gleaner states, citing Ms. Hughes. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Moody's Investors Service assigned a rating of B1 to Air Jamaica Limited's guaranteed senior unsecured notes. On July 21, 2006, Standard & Poor's Rating Services assigned a "B" long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, based on the government's unconditional guarantee of both principal and interest payments. AIR JAMAICA: Workers Launch Strike on Failed New Wage Talks ----------------------------------------------------------- Flight attendants have launched demonstrations against Air Jamaica for failing to start new wage negotiations, Caribbean Media Corporation reports. About 38 flight attendants called in sick, RJR News says, citing Air Jamaica's Executive Chairperson Shirley Williams. The flight attendants told CMC that the last wage contract expired in May 2007 and since then talks for a new labor accord haven't "gotten off the ground." CMC notes that flight attendants are also complaining about Air Jamaica's failure to improve poor working conditions. The Bustamante Industrial Trade Union told CMC that the workers were upset over the living conditions they are subjected to while on duty in the U.S., accusing Air Jamaica's management for refusing to address the problem despite numerous complaints. According to CMC, the protest has resulted to the cancellation of some of Air Jamaica's international flights. Air Jamaica told the Associated Press that it has canceled flights to: -- New York, -- Fort Lauderdale, -- Miami, and -- Toronto. The strike was unexpected because the management was planning to meet with the flight attendants last Tuesday to discuss grievances, the AP says, citing Ms. Williams. Radio Jamaica relates that hundreds of passengers were stranded at the Norman Manley International Airport. Afternoon flight passengers were reportedly asked to wait while Air Jamaica officials were in meetings. According to Radio Jamaica, unions representing flight attendants and ground staff gave Air Jamaica until next week to launch wage talks. Ms. Williams told Radio Jamaica, "I am not sure what the nature of these problems are, there have been various reports in the news media. . . . we have reported the matter to the Ministry of Labor." Radio Jamaica relates that Air Jamaica's management will be meeting with the unions before the Ministry of Labor. Labor Minister Pearnel Charles told RJR News that the ministry will do everything for the speedy resumption of normal activities at Air Jamaica. The cancellation of flights has affected farm and hotel workers who were to leave Jamaica last Tuesday, Radio Jamaica states, citing Mr. Charles. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Moody's Investors Service assigned a rating of B1 to Air Jamaica Limited's guaranteed senior unsecured notes. On July 21, 2006, Standard & Poor's Rating Services assigned a "B" long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, based on the government's unconditional guarantee of both principal and interest payments. =========== M E X I C O =========== AMERICAN TOWER: Fitch Puts 'BB+' Rating on Planned US$325MM Loan ---------------------------------------------------------------- Fitch Ratings has assigned a 'BB+' rating to American Tower Corporation's proposed US$325 million incremental senior term loan maturing in 2012. Proceeds from the term loan will be used to refinance existing indebtedness under the revolving facility. The Rating Outlook is Stable. AMT's ratings reflect the scale in its operations, which has translated into strong operating performance and increased free cash flow. AMT's operating characteristics remain favorable and are reflective of the lower business risk that results in a predictable and growing cash flow stream generated largely from investment grade national wireless operators. Fitch believes these characteristics more than offset AMT's sizable share repurchase program and the higher financial leverage for its rating category. AMT should continue to meaningfully improve its operating metrics due to scale benefits and the expectations for continued wireless industry demand. Over the longer-term, Fitch expects that AMT, as well as the rest of the tower industry, will benefit from the build-out requirements associated with the 700 MHz auction. AMT's liquidity position is solid owing to its free cash flow, cash on hand and undrawn revolver capacity. FCF for the last twelve months was in excess of US$500 million. For 2008, with higher capital spending expected for land purchases, new tower construction and augmentation of existing sites, Fitch believes FCF levels will be comparable to 2007. Cash and cash equivalents, including restricted cash, was US$87 million as of Dec. 31, 2007. Proforma for the new incremental term loan, which will provide AMT with additional liquidity, the company had drawn approximately US$650 million of the US$1.25 billion on its senior unsecured revolving credit facility that matures in 2012. The financial covenants for the new term loan are the same as the existing revolver, which includes these: total senior secured leverage ratio of 3.0 times, total borrower leverage ratio of 6.0x and interest coverage ratio of 2.5x. The senior secured leverage covenant of 3.0x provides AMT with additional capacity for future tower securitizations. Fitch expects the majority of excess cash flow, borrowings under its revolving credit facility and cash on hand will be used to repurchase shares. Under the previous stock repurchase program that expired in February 2008, AMT purchased 35 million shares of common stock for US$1.5 billion. AMT's Board of Directors approved a new stock repurchase program to purchase up to an additional US$1.5 billion of its class A common stock. As a result, debt will increase moderately over the next couple of years. For 2007, debt increased by US$700 million to US$4.3 billion. Based on current capital allocation plans, Fitch expects debt to increase by at least US$400 million in 2008 with leverage likely staying in the mid-4x range. AMT's near-term debt maturities are relatively modest over the next three years with only US$78 million of convertible debt from two issuances due in 2010. Headquartered in Boston, American Tower Corporation (NYSE: AMT) -- http://www.americantower.com/-- owns, operates and develops broadcast and wireless communications sites. American Tower owns and operates over 22,000 sites in the United States, Mexico and Brazil. The company had an annual revenues of US$1.5 billion. AMERICAN TOWER: Moody's Puts 'Ba1' Rating on US$325 Million Loan ---------------------------------------------------------------- Moody's Investors Service assigned a Ba1 rating to American Tower Corporation's new US$325 million senior unsecured term loan maturing in 2012, the proceeds of which will be used to repay outstandings under the revolving credit facility. The transaction will modestly strengthen the company's liquidity position, as the company also announced a US$1.5 billion stock buyback program. The Company's fundamental key credit considerations remain unchanged. Accordingly, Moody's affirmed AMT's Ba1 corporate family, Ba1 senior unsecured and SGL-1 liquidity ratings. Moody's also affirmed AMT's Ba1 probability of default rating. The outlook remains stable. Moody's has taken these ratings actions: Issuer: American Tower Corporation -- Corporate Family Rating: Affirmed Ba1 -- Probability-of-Default Rating: Affirmed Ba1 -- US$325 million new term loan facility: Assigned Ba1, LGD4 -- 56% -- US$1.25 billion revolving credit facility: Affirmed Ba1, LGD4 -- 56% (Changed from LGD4 -- 55%) -- 7% Senior Notes due 2017: Affirmed Ba1, LGD4 -- 56% (Changed from LGD4 -- 55%) -- 7.125% Senior Notes due 2012: Affirmed Ba1, LGD4 -- 56% (Changed from LGD4 -- 55%) -- 7.5% Senior Notes due 2012: Affirmed Ba1, LGD4 -- 56% (Changed from LGD4 -- 55%) -- 5% Senior Convertible Notes due 2010: Affirmed Ba1, LGD4 -- 56% (Changed from LGD4 -- 55%) -- Outlook: Stable -- Speculative Grade Liquidity: Affirmed SGL-1 AMT's Ba1 corporate family rating reflects Moody's expectation that the fundamentals of the wireless tower sector are likely to remain favorable through the next several years and AMT's good market position will enable its strong earnings and cash flow momentum to continue. The rating also considers the company's single industry focus and relatively small scale, although much of AMT's revenues are contractually derived from its relationships with the largest and well-capitalized national wireless operators across the U.S. Finally, the rating reflects Moody's view that AMT is likely to continue directing its growing free cash flow to shareholders via share buy backs over the next few years, targeting adjusted leverage below 6.0x. Headquartered in Boston, American Tower Corporation (NYSE: AMT) -- http://www.americantower.com/-- owns, operates and develops broadcast and wireless communications sites. American Tower owns and operates over 22,000 sites in the United States, Mexico and Brazil. The company had an annual revenues of US$1.5 billion. AMERICAN TOWER: S&P Puts 'BB+' Rating on US$325MM Loan Facility --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its issue and recovery ratings to Boston, Massachusetts-based communications tower operator American Tower Corp.'s $325 million unsecured term loan facility. The assigned issue rating is 'BB+', the same as the corporate credit rating, with a recovery rating of '3', indicating expectations for meaningful (50%-70%) recovery in the event of a payment default. The existing ratings on the company's outstanding unsecured debt issues remain unchanged. Although numerically S&P's analysis indicates recovery in the 90%-100% range, the recovery rating has been capped at '3' due to the company's ability to incur additional debt. Should the company's credit profile worsen, S&P expect it may add further debt, material enough to reduce its recovery estimate. The term loan is an incremental facility that is allowed under, and governed by, the existing loan agreement. It will have substantially similar terms and conditions as the existing loan agreement. The proceeds from this new facility will be used to repay borrowings under the company's US$1.25 billion revolving credit facility. The corporate credit rating is BB+ and the outlook is stable. The corporate credit rating reflects the promising prospects of its wireless tower leasing business, which is expected to generate increasingly stronger levels of net free cash flow after capital expenditures. Ratings List American Tower Corp. Corporate credit rating BB+/Stable/-- New Issue Assigned American Tower Corp. US$325 million unsecured term loan facility BB+ Recovery rating 3 Headquartered in Boston, American Tower Corporation (NYSE: AMT) -- http://www.americantower.com/-- owns, operates and develops broadcast and wireless communications sites. American Tower owns and operates over 22,000 sites in the United States, Mexico and Brazil. The company had an annual revenues of US$1.5 billion. CLEAR CHANNEL: Financing Talk Glitch Threatens to Derail Merger --------------------------------------------------------------- The privatization of Clear Channel Communications Inc. appeared in danger of collapsing after backers of the deal failed to reach agreement on the final financing of the transaction, reports say. As reported by the Troubled Company Reporter on Feb. 19, 2008, the company anticipated closing the merger agreement with Thomas H. Lee Partners LP and Bain Capital Partners on March 31, 2008. The company's shareholders approved the adoption of the merger agreement, as amended, in which Clear Channel would be acquired by CC Media Holdings Inc., a corporation formed by private equity funds co-sponsored by Lee Partners and Bain Capital. The deal includes US$19.4 billion of equity and US$7.7 billion of debt. In recent developments, talks of the private-equity firms and their banks reportedly became mired over details of the credit agreement, the people familiar with the matter said. The banks that agreed to finance the deal include Citigroup Inc., Morgan Stanley, Deutsche Bank AG, Credit Suisse Group, Royal Bank of Scotland PLC and Wachovia Corp. A report by The Wall Street Journal stated that analysts predict Clear Channel's stock to likely collapse into the US$20s without the privatization. In 4 p.m. composite trading on the New York Stock Exchange on March 15, Clear Channel shares traded at US$32.56. According to the report, one of the difficult issues surrounding the deal concerns the requirements on the deal's debt. "The banks have made it very difficult for the two private- equity firms to refinance some of the debt that's set to mature in four years, and the private equity firms have balked," the WSJ report stated. Another issue is the banks insistence on a price floor for the debt that would limit their exposure, according to the report. About Bain Capital Boston, Massachussetts-based Bain Capital Partners LLC -- http://www.baincapital.com/-- is a private investment firm with approximately US$40 billion in assets under management. Its family of funds includes private equity, venture capital, public equity and leveraged debt assets. Absolute Return Capital LLC is the global macro affiliate of Bain Capital. Bain Capital Private Equity has raised nine funds and invested in more than 200 companies. Bain Capital (Europe) Limited, an affiliate, is dedicated to investment opportunities in the European market. Bain Capital Venture Partners LLC is the venture capital arm of Bain Capital. Sankaty Advisors LLC, the credit affiliate of Bain Capital LLC, is a private manager of high-yield debt obligations. In October 2006, Michaels Stores Inc. announced the completion of its merger with affiliates of Bain Capital Partners LLC and The Blackstone Group. As a result, Bain Capital Partners LLC and Blackstone own equal stakes in Michaels, and funds affiliated with Highfields Capital Management own a minority stake. About Thomas Lee Partners Boston, Massachussetts-based Thomas H. Lee Partners LP -- http://www.thlee.com/-- Thomas H. Lee Partners is the teddy bear at the gate. Known as a "friendly" leveraged buyout (LBO) firm, the company uses a mix of debt, funds from institutional investors, and its own money to buy companies. Unlike the fearsome LBO outfits of the 1980s, Thomas H. Lee Partners eschews the axe for the handshake; it builds up a stake and courts management cooperation. Lee then usually sells the revamped acquisitions or takes them public. Thomas H. Lee, who founded Thomas H. Lee Partners in 1974, left his namesake firm in 2006 to start a long-planned rival hedge fund and private equity venture. The company has teamed up with Bain Capital to buy media titan Clear Channel for almost US$20 billion. About Clear Channel Communications Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. As of Dec. 31, 2007, it owned 717 core radio stations, 288 non-core radio stations which are being marketed for sale and a leading national radio network operating in the United States. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 30, 2008, Standard & Poor's Ratings Services said its ratings on Clear Channel Communications, including the 'B+' corporate credit rating, remain on CreditWatch with negative implications. S&P originally placed them on CreditWatch on Oct. 26, 2006, following the company's announcement that it was exploring strategic alternatives to enhance shareholder value. GREENBRIER COS: Unit's Chair Resigns After Bankruptcy Filing ------------------------------------------------------------ Gerald Regan resigned as chairman of TrentonWorks Ltd., a non- operating subsidiary of The Greenbrier Companies, following the bankruptcy filing of Greenbrier, Sarah Regan writes for The Canadian Press. As reported in the Troubled Company Reporter on Feb. 27, 2008, made an application to the Supreme Court of Nova Scotia for the appointment of a receiver to take control of its assets. Mr. Regan said that the prolonged receivership proceedings prompted Greenbrier to file for bankruptcy and end the receivership of Trentonworks, Canadian Press relates. The receivership trial was scheduled to commence this month but was delayed after the United Steelworkers Union representing the laid off workers at Trentonworks requested to attend the trial, based on the report. Union representative Dave Fanning stated that he hasn't "seen the bankruptcy order" but said that creditors owed money by the Debtor will meet on March 31, 2008, Canadian Press says. Ernst & Young will be appointed trustee in the bankruptcy case and will proceed in the sale of the Debtor's assets, Canadian Press quotes Mr. Regan as stating. Receivership Application in Nova Scotia Court The TCR said that in April 2007, Greenbrier announced the closure of the railcar manufacturing operation, located in Trenton, Nova Scotia, Canada. The operation had become uncompetitive as a result of appreciation of the Canadian dollar and other cost disadvantages. Since then, the company has worked with Ernst & Young to market the facility and, in the process, directly contacted over 200 potential buyers, nationally and internationally. That process was not successful, and TrentonWorks has asked the Court to appoint a eceiver to administer the assets in the best interest of its creditors. The company expects the appointment of a Receiver to eliminate any ongoing costs associated with this operation. Greenbrier regrets the closing of the plant and the subsequent loss of employment, but the plant was not cost competitive in the North American marketplace. About TrentonWorks Ltd. Located in Nova Scotia, Canada, TrentonWorks Ltd. -- http://www.trentonworks.ca/-- was acquired by e Greenbrier Companies in 1995. TrentonWorks has a history in the railcar and other steel fabricating businesses in Canada since 1872. About Greenbrier Companies Inc. Headquartered in Lake Oswego, Oregon, Greenbrier (NYSE: GBX) - http://www.gbrx.com/-- is a supplier of transportation equipment and services to the railroad industry. The company builds new railroad freight cars in its three manufacturing facilities in the U.S. and Mexico and marine barges at its U.S. facility. It also repairs and refurbishes freight cars and provides wheels and railcar parts at 38 locations across North America. Greenbrier also builds new railroad freight cars and refurbishes freight cars for the European market through both its operations in Poland and various subcontractor facilities throughout Europe. Greenbrier owns approximately 9,000 railcars, and performs management services for approximately 138,000 railcars. * * * The Greenbrier Cos. Inc. continues to carry Moody's Investors Service's 'B1' long-term corporate family rating, which was placed in March 2007. MBIA INC: Fitch Keeps Insurer Financial Strength & Debt Ratings --------------------------------------------------------------- Fitch Ratings has decided to maintain its Insurer Financial Strength and debt ratings on MBIA Inc. and its subsidiaries for the foreseeable future. Fitch expects to maintain the MBIA ratings as long as Fitch believes that it can maintain a clear, well-supported credit view without access to certain non-public details concerning MBIA's insured portfolio, to which Fitch will no longer have access. Commenting on Fitch's decision, Stephen W. Joynt, President and Chief Executive Officer of Fitch Ratings, said: "We are disappointed that MBIA has requested that we withdraw our IFS ratings and that they have decided to stop providing us important non-public information about their portfolio. While we respect MBIA's decision not to provide us that information, we trust that they will respect our decision to continue to maintain a rating on MBIA, a company about which many investors are so clearly interested. The approach we are taking with MBIA is consistent with the approach we have taken in other similar situations." Mr. Joynt continued: "Fitch has discussed this situation with several major investors, some of whom hold MBIA insured securities that are only rated by Fitch, and we have concluded that maintaining the MBIA ratings at this time is most appropriate for investors and causes the least disruption to the marketplace. For example, several large money market funds hold Tender Option Bonds rated by Fitch based on MBIA insurance. If we withdraw our rating they may be forced sellers into a market already challenged by liquidity issues. Maintaining a rating -- whether AAA or even if downgraded to AA category -- continues the recognition of the high quality of their investment." As announced by Fitch on Feb. 5, 2008 -- before Fitch received MBIA's request to withdraw -- the ratings of MBIA and its subsidiaries were place on Rating Watch Negative. Fitch expects that its review of MBIA will be completed in the course of the next few weeks. Currently, Fitch believes that should the ratings of MBIA be changed as a result of this review, MBIA's IFS ratings will be no lower than the 'AA' category, which represents very strong capacity to meet policyholder and contract obligations on a timely basis. On March 7, 2008, MBIA publicly announced its request that Fitch withdraw its IFS ratings. That request was communicated in a letter to Fitch and received just prior to MBIA's public announcement. Fitch subsequently confirmed with the company that MBIA would no longer provide Fitch non-public details on its insured portfolio and may participate in the rating process in a more limited manner than it has participated to date. In general, Fitch believes that they can rate companies based upon publicly available information. The unique nature of the financial guaranty sector makes maintaining the MBIA IFS and debt ratings more challenging without access to the non-public details on their insured portfolio. To Fitch's knowledge, the non-public details on MBIA's insured portfolio currently made available to Fitch are not available from any other source. Accordingly, while Fitch has decided to maintain MBIA's ratings at this time, it may become necessary to withdraw those ratings in the future. Fitch expects that it will maintain MBIA's ratings for at least the next few months, but can provide no assurance that the ratings will remain outstanding beyond then. Headquartered in Armonk, New York, MBIA Inc. (NYSE:MBI) -- http://www.mbia.com-- provides financial guarantee insurance, investment management services, and municipal and other servicesto public finance and structured finance clients on a globalbasis. The company conducts its financial guarantee business through its wholly owned subsidiary, MBIA Insurance Corporation and provides investment management products and financial services through its wholly owned subsidiary MBIA Asset Management, LLC. MBIA manages its activities primarily through two principal business operations: insurance and investment management services. In February 2007, MBIA Corp. formed a new subsidiary, MBIA Mexico, S.A. de C.V. During the year ended Dec. 31, 2006, MBIA discontinued its municipal services operations. These operations included MBIA MuniServices Company. On Dec. 5, 2006, the company completed the sale of MBIA MuniServices Company. RETAIL PRO: Posts US$2.1 Mil. Net Loss in Quarter Ended June 30 --------------------------------------------------------------- In a regulatory filing with the U.S. Securities and Exchange Commission dated March 19, 2008, Retail Pro Inc. reported a net loss of US$2.1 million on total revenue of US$6.2 million for the first quarter ended June 30, 2007, compared with a net loss of US$1.8 million on total revenue of US$6.0 million for the corresponding period ended June 30, 2006. Operating loss, which included depreciation and amortization expense, increased by US$797,000, due primarily to the increase in Application development and Selling, General & Administrative expenses, offset by an increase in gross profit. Interest expense was US$419,000 in the three months ended June 30, 2007, compared to US$380,000 during the three months ended June 30, 2006. During the three months ended June 30, 2007, the company financed its investment in software development and capital equipment using cash provided by operations and proceeds from a long-term purchase contract. At June 30, 2007 and March 31, 2007, the company had cash of US$731,000 and US$565,000, respectively. Balance Sheet At June 30, 2007, the company's consolidated balance sheet showed US$42.0 million in total assets, US$33.1 million in total liabilities, and US$8.9 million in total stockholders' equity. The company's consolidated balance sheet at June 30, 2007, also showed strained liquidity with US$5.4 million in total current assets available to pay US$27.2 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free at http://researcharchives.com/t/s?298e Going Concern Doubt Goldman & Parks LLP, in Encino, California, expressed substantial doubt about Island Pacific Inc. nka. Retail Pro Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended March 31, 2007, and 2006. The auditing firm reported that the company has suffered recurring losses from operations and has an accumulated deficit of US$81,979,000 as of March 31, 2007. Headquartered in La Jolla, California, Retail Pro, Inc. (OTC: IPIN.PK) -- http://www.retailpro.com/--provides Point of Sale, Store Operations, Merchandising, Planning, Business Intelligence, and Payment Processing software applications for the specialty retail industry. Retail Pro(R) is delivered through a world-wide network of channel partners. The company maintains offices in the United States, United Kingdom, Australia, Mexico, Italy, Poland and China. SR TELECOM: Selling Assets to Groupe Lagasse for US$6 Million ------------------------------------------------------------- SR Telecom Inc. signed an asset purchase agreement to sell majority of its assets, including its WiMAZ Forum-certified symmetryMX product line, to Groupe Lagasse for an aggregate consideration of US$6.05 million payable at closing and by the assumption of certain stated liabilities. The transaction, once completed, will provide continuity for SR Telecom's international customer base and permit the company to grow and capitalize on its many WiMAX opportunities. The transaction, which is subject to certain closing conditions and court approval, is expected to close on or before April 4, 2008. "We are pleased to reach this agreement with Groupe Lagasse," said Serge Fortin, President and CEO of SR Telecom. "Their international presence, financial strength and entrepreneurial spirit, along with their knowledge and expertise in the high technology field, make Groupe Lagasse a strong financial and operational purchaser for SR Telecom’s business. This deal clearly benefits our employees and our customers around the world as it will enable us to quickly resume normal operations, and accelerate the development, delivery and deployment of our leading-edge WiMAX solutions." "Groupe Lagasse had been searching for ways to tap in to the WiMAX market for quite some time," Louis Lagasse, Chairman of Groupe Lagasse said. "In SR Telecom, we saw an organization possessing a solid business plan, a strong management team, a significant order pipeline, and an unequaled depth of expertise and experience in wireless telecommunications. This acquisition allows us to leverage the synergies between our current organization and SR Telecom to immediately enter the rapidly- growing global WiMAX market as a major player with a feature- rich, field-proven product line." Under terms of the agreement, Groupe Lagasse will purchase SR Telecom’s brand, trademarks, intellectual property, patents, inventories and equipment relating to its symmetryMX product line. It is not expected that SR Telecom shareholders will receive any value out of the proceeds of such sale. SR Telecom filed for creditor protection under the CCAA on Nov. 19, 2007. On Feb. 29, 2008, it announced that it had obtained an order from the Quebec Superior Court to extend the period of the court-ordered stay of proceedings against SR Telecom under the CCAA to May 2, 2008. Headquartered in Quebec, Canada, Groupe Lagasse -- http://www.groupelagasse.com/-- is an international company with manufacturing and products business units that focus on providing leading edge, rugged, high reliability, and high availability solutions for the private and public sectors. Its activities include electronic manufacturing expertise for secure radio and telecom products that address the entire product life cycle. Groupe Lagasse is a privately held holding whose sales, in 2007, exceeded CDN200 million; the group has operations in Europe and North America and employs over 1,000 people worldwide. Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) -- http://www.srtelecom.com/-- delivers broadband wireless access (BWA) solutions that enable service providers to deploy voice, Internet and next-generation services in urban, suburban and remote areas. The company has offices in Mexico, France and Thailand. SR Telecom Inc.'s consolidated balance sheet at June 30, 2007, showed CDN$83.9 million in total assets and CDN$97.9 million in total liabilities, resulting in a CDN$14.0 million total stockholders' deficit. ======= P E R U ======= QUEBECOR WORLD: Has US$350 Million in Available Funds ----------------------------------------------------- Quebecor World Inc. provided an update on the currently ongoing chapter 11 proceedings of Quebecor World (USA) Inc. and its affiliated debtors. As of March 7, 2008, the company had more than US$225 million of cash on hand and more than US$125 million of additional borrowings available under the US$750 million debtor-in- possession financings for a total of more than US$350 million of availability. The company also expects to generate significant free cash flow in 2008. On March 7, 2008, Judge James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York extended by 30 days the date by which the final order approving the debtors US$1 billion debtor-in-possession financing, previously authorized by the Court, must be entered in order to allow the parties sufficient time to address certain remaining issues. During this extended period, all of the terms and conditions of the interim order previously entered by the Court approving the debtor-in-possession financing remain in effect, including the company's right to borrow up to US$750 million under the debtor- in-possession financings. 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. 9; 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: Lays Off One-Third of Memphis Employees ------------------------------------------------------- Einat Paz-Frankel of Memphis Business Journal reports that Quebecor World Inc. has laid off one-third of its Memphis work force. From the Tennessee Department of Labor & Workforce Development, Einat Paz-Frankel found out that 87 employees of the Memphis facility were laid off on March 4, 2008. In February, the plant employed 260 full-time workers. The report notes that the reason for the layoff was not disclosed. 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 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 IS$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. 9; 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: Noteholders Question Panel Advisors' Engagement --------------------------------------------------------------- The Ad Hoc Group of Quebecor Noteholders tells Judge James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York that it questions the Official Committee of Unsecured Creditors' decision to retain two sets of financial advisors on top of the numerous financial advisors already at work in the Debtors' cases on behalf of unsecured creditors. The Noteholder Group is currently engaged in discussions with the Creditors' Committee with respect to the consensual division of labor between Mesirow Financial Consulting LLC, and Jefferies & Company, Inc. It is hopeful that an appropriate arrangement can be reached in short order. "Until agreement is reached, however, the Noteholder Group submits that the addition of yet two more financial advisors can only lead to duplication of effort and wasted resources. Furthermore, the burden is on the Creditors' Committee to show why it needs two financial advisors in [the Debtors'] cases -- a burden it has not met," Alan W. Kornberg, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, in New York, says. U.S. Trustee Concerned With Likely Duplication of Efforts Diana G. Adams, the United States Trustee for Region 2, is concerned about the division of responsibilities between Jefferies and Mesirow, the potential for duplication of efforts between the firms, and any resulting inefficiencies and adverse cost implications on the estates. To that end, the United States Trustee has raised the issue with counsel to the Creditors' Committee. The U.S. Trustee's trial attorney, Andrew D. Velez-Rivera, relates that Jefferies and Mesirow have met for the purpose of establishing a division of responsibilities between the firms, and agreed upon an allocation of services to the Creditors' Committee. The Office of the United States Trustee has been advised of the specific tasks to be performed by each of the firms, and of the division of responsibilities between them. The United States Trustee has no objection to that allocation, and the Creditors' Committee has agreed to notify the Office of the United States Trustee in the event the division of responsibilities between Jefferies and Mesirow changes during the course of their representation of the Committee. Committee Wants Ad Hoc Committee's Objection Overruled "The [Ad Hoc Noteholder Group's] Objection should be overruled," according to Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, representing the Official Committee of Unsecured Creditors. Mr. Dizengoff says that the Ad Hoc Noteholder Group's objection lack merit since the Committee, in the careful exercise of its business judgment has concluded that it needs the services of both a sophisticated forensic accounting and financial advisory firm with significant international experience (Mesirow) and an investment banking firm with significant capital market experience (Jefferies). Mr. Dizengoff relates that the advisory services to be provided by Mesirow and Jefferies are discreet and independent from each other. "Indeed, each firm's responsibilities have been carefully negotiated to avoid duplication, appropriately make use of [the] firm's abilities and ultimately assist the Committee in analyzing the Debtors' business operations, financial results and reorganization efforts," Mr. Dizengoff adds. Mr. Dizengoff also points out that the Committee cannot and should not, as the Ad Hoc Noteholder Group suggests, abdicate its fiduciary responsibilities to the Ad Hoc Noteholder Group, the Prepetition Bank Group or the Monitor. "The Ad Hoc Noteholder Group cannot hold the Committee hostage to its demand that there be an agreed upon process on who takes a leading role on a particular issue," Mr. Dizengoff relates. While the Ad Hoc Noteholder Group is free to rely on the Committee, Mr. Dizengoff says that the reverse is not true. Mr. Dizengoff delineates each firm's role: Mesirow Financial Consulting Jefferies & Co. (Forensic Accntg./ Financial (Investment banking Services) Advisory Services) ---------------------------- ---------------------------- (a) Fraudulent transfers (a) Fraudulent transfers including lien pledge including lien pledge to pre-petition lenders pre-petition lenders - Capital Market analysis - Forensic analysis - Facts analysis (b) DIP objection/ amendments (b) Preference and avoidance actions including repayment of private notes (c) Major asset sales (c) Review and analysis of - M&A transactions plant closures - Cost analysis (d) Non-public(i.e. management (d) 13 week cash flow monthly operating reports, analysis by business and geographic - Cash receipts and region) disbursements (e) Publicly filed Monthly (e) AR securitization Operating Reports facility (f) Executory contracts (f) Executory contracts - to be determined - to be determined (g) Employee retention and (g) Pension funding status compensation plans (h) Business plans analysis (h) Intercompany transactions and review (i) Advise on current state (i) Critical vendor/ of the restructuring/ reclamation capital markets (j) Analyzing any potential (j) Liquidation analysis or proposed strategy for restructuring or adjusting the Debtors' outstanding indebtedness or overall capital structure (k) Exit financing (k) Exit financing - Lender selection and - Cash flow and covenants economics - Collateral analysis (l) Debt capacity analysis 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. 9; 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. ================= V E N E Z U E L A ================= BANESCO BANCO: Launches Preferred Shares Public Offering -------------------------------------------------------- Banco Banesco Universal has launched a public offer of new preferred shares on the Venezuelan market to raise some VEF125 million. According to Banco Banesco, it will be selling 1.25 billion at VEF0.1 each from March 24 to April 10 to strengthen its capital base, offering a fixed dividend rate of 19.5% for the first year. The minimum purchase is VEF100 subject to a three-year lockup period. Banco Banesco told Business News Americas that it will give preference to small retail investors who want to purchase up to VEF2,000 in Banesco shares. The placement agents for the offering are Multiplicas and Econinvest, BNamericas states. Banesco Banco Universal was established in 1977. It has grown rapidly during the past 10 years through M&A. The bank offers loans in several segments including consumer, commercial and agricultural. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 18, 2008, Fitch Ratings assigned 'B' long- and short-term local currency issuer default ratings to Banesco Banco Universal. Fitch said the outlook is negative. CA LA ELECTRICIDAD: Offer & Consent Solicitation Expires April 8 ---------------------------------------------------------------- C.A. La Electricidad de Caracas, pursuant to its previous offer to purchase and consent solicitation, its wholly-owned subsidiary, Electricidad de Caracas Finance B.V. has received consents from the holders of approximately US$244.3 million in aggregate, or 93.96% in aggregate, of Electricidad de Caracas Finance BV's 10.25% Senior Guaranteed Notes Due 2014 as of 5:00 p.m., New York City time, on March 24, 2008. The consents received exceeded the number needed to approve the adoption of the proposed amendments to the indenture under which the Notes were issued. The terms and conditions of the offer and consent solicitation are set forth in an Offer to Purchase and Consent Solicitation Statement dated March 7, 2008. Based on the receipt of the required consents, Electricidad de Caracas Finance BV, C.A. La Electricidad de Caracas and the trustee under the indenture governing the Notes expect to enter into a supplemental indenture that will, once operative, eliminate substantially all the restrictive covenants contained in the indenture and the Notes and, as a result of such amendments, thereby eliminate certain events of default and would modify other related provisions of the indenture. These amendments will not become operative until the Electricidad de Caracas Finance BV accepts and pays for all notes validly tendered by April 8, 2008. Each holder who validly tendered and did not validly withdraw their notes and related consents prior to 5:00 p.m., New York City time, on March 24, 2008, may no longer withdraw their notes and related consents and will be entitled to an early consent payment of US$20 for each US$1,000 principal amount of Notes tendered by them if Electricidad de Caracas Finance B.V. accepts such Notes pursuant to the terms of the Offer to Purchase. The offer will expire at midnight, New York City time, on April 8, 2008, unless extended or earlier terminated by Electricidad de Caracas Finance B.V. at its sole discretion. Holders who have not yet tendered their notes may tender until April 8, 2008. Such holders will not be eligible to receive the Early Consent Payment and accordingly will only be eligible to receive an amount equal to the Total Consideration less the Early Consent Payment. Electricidad de Caracas Finance B.V.'s obligation to accept for purchase and to pay for each of the notes validly tendered in the tender offer is subject to, and conditioned upon, the satisfaction or waiver of: (i) the receipt of the requisite consents and the execution of amendments to the indenture and each of the other related transaction documents implementing the proposed amendments; (ii) the issuance and receipt of funds from a new issuance of debt securities in transactions exempt from registration under the United States Securities Act of 1933, as amended, or receipt of funds from other financing sources, in an amount sufficient to fund the purchase of any and all validly tendered and not withdrawn notes accepted for purchase in accordance with the terms of the Offer to Purchase and all related fees and expenses; and (iii) certain other customary conditions set forth in the Offer to Purchase. Electricidad de Caracas Finance B.V. reserves the right to extend, amend or terminate the tender offer and consent solicitation at any time. The company has retained ABN AMRO Bank N.V. to serve as the Dealer Manager for the offer and the consent solicitation. Questions concerning the terms of the offer may be directed to: ABN AMRO Bank N.V. Tel. Number: 1-212-409-7530. Copies of the Offer to Purchase may be obtained by calling the information agent: D.F. King & Co., Inc., Tel. Number: 1-800-829-6551 (toll-free) or 1-212-269-5550 (banks and brokerage firms). Headquartered in Caracas, Venezuela, CA La Electricidad De Caracas is a subsidiary of AES Corporation and is engaged in providing electricity services. The company operates in Caracas, Guarenas, Guatire in Miranda State and San Felipe in Yaracuy State. As of May 11, 2007, CA La Electricidad de Caracas is a subsidiary of Petroleos de Venezuela, S.A. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 2, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on C.A. La Electricidad de Caracas to 'BB-' from 'B'. The ratings were removed from CreditWatch with developing implications, where they were placed originally on Feb. 13, 2007. S&P said the outlook is stable. PETROLEOS DE VENEZUELA: May Ink Joint Plant Pact With Petrobras --------------------------------------------------------------- Venezuela's President Hugo Chavez may sign an accord with Brazil's President Luiz Inacio Lula da Silva to formalize Petroleos de Venezuela SA's US$4.5 billion joint heavy-oil refinery with Petroleo Brasileiro SA aka Petrobras outside Recife in Brazil's Northeast, Jeb Blount at Bloomberg News reports. Brazilian presidential spokesperson Marcelo Baumbach told Bloomberg that President Chavez will visit Brazil to start negotiations with President Lula da Silva. Presidents Chavez and Lula da Silva expect to sign a final agreement to allow the construction of the 200,000 barrel per day plant that would get 50% of its input from Venezuela and the other half from Brazil, Bloomberg relates, citing, Mr. Baumbach. According to Bloomberg, the project was first proposed in 2000 as a joint venture with an agreement that Petrobras will own 60% of the refinery's shares, while Petroleos de Venezuela will hold 40%. Venezuela initiated with Brazil plans for the refinery several times since 2005, but Venezuela didn't agree on a final role in the project, which was scheduled to begin production in 2011. Banco Fator SA's oil analyst Marcos Paulo Fernandes commented to Bloomberg, "We're getting to the point where people can't really wait for a final decision from Venezuela anymore. Petrobras is perfectly able to handle this project itself, Venezuela's participation is, at least, in part about politics and diplomacy." Petrobras will proceed with the construction of the plant even without Petroleos de Venezuela, Bloomberg states, citing Brokerage Agora CTVM's oil analyst Luiz Otavio Broad. About Petrobras Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp- - was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in Brazil. Petrobras has operations in China, India, Japan, and Singapore. About Petroleos de Venezuela 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 is negative. PETROLEOS DE VENEZUELA: Exxon Mobil Brings Case to Netherlands -------------------------------------------------------------- El Universal reports that Exxon Mobil won a freezing injunction hitting Petroleos de Venezuela SA's assets in both the Netherlands and the Netherlands Antilles. According to El Universal, Hildegard Rondon de Sanso, legal counsel of PDVSA in the case against US oil major Exxon Mobil, said that following a victory in the England High Court, the conglomerate now has to advocate its viewpoint in the Netherlands court where the US company filed an action. Last week, Judge Paul Walker of the London High Court overturned the freezing injunction against PDVSA. While satisfied with the ruling issued by Judge Walker, Ms. Rondon stressed that PDVSA "has less arguments for defense in the Netherlands, as the holding does own assets in the Netherlands, namely Bopec -- a small oil storage terminal based in Bonaire -- and 220,000 bpd Isla refinery in Curacao, which PDVSA operates under a leasing agreement," El Universal relates. 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 is negative. =========== X X X X X X =========== * Moody's Evaluates Proposed Changes to Ratings System ------------------------------------------------------ Moody's Investors Service is mulling over possible changes to its ratings system, The New York Times reports. These considerations come in the wake of criticism against rating firms underrating municipal debt in relation to corporate bonds, relates the Times. Several states have already pressured these rating agencies to come up with a single rating standard for both municipal and corporate debt. Various groups have hailed the move as a "welcome first step". In addition, Fitch Ratings and Standard & Poor's have employed steps to standardize and simplify their ratings, says the Times. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Sheryl Joy P. Olano, Rizande de los Santos, Pamella Ritah K. Jala, Tara Eliza Tecarro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2008. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. 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