/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/080331.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 Monday, March 31, 2008, Vol. 9, No. 63 Headlines A R G E N T I N A 4DATALINK LATIN: Trustee to Verify Proofs of Claim Until May 2 COMPULBIKE SA: Trustee to Verify Proofs of Claim Until April 23 KATEFA SRL: Court Appoints Trustee for Firm's Bankruptcy MOLINOS HARINEROS: Buenos Aires Court Concludes Reorganization NEXUS CAPITAL: Trustee to Verify Proofs of Claim Until May 5 SALTA HYDROCARBON: S&P Puts US$234MM Notes' B Rating on WatchNeg SEARCH SA: Proofs of Claim Filing Deadline is May 29 * ARGENTINA: S&P Says Agricultural Protests Could Weaken Rating * ARGENTINA: S&P Issues Credit FAQ on Agricultural Strike Effect B E R M U D A AIRLORD TRANSPORT: Proofs of Claim Filing is Until April 9 AIRLORD TRANPSORT: Sets Final Shareholders Meeting for April 23 LASALLE RE: Proofs of Claim Filing Deadline is April 10 LASALLE RE CORPORATE: Proofs of Claim Filing is Until April 10 MAN MAC: Proofs of Claim Filing Deadline is April 2 SCOTTISH RE: To Postpone Form 10-K Filing for Year Ended Dec. 31 SECURITY CAPITAL: PwC Confirms XL Capital's New Biz Suspension STAINLESS INSURANCE: Proofs of Claim Filing Deadline is April 9 STAINLESS INSURANCE: Final Shareholders Meeting is on April 23 B R A Z I L ATARI: Non-Compliance with Nasdaq Rules Cues Stocks Delisting BANCO BMG: UBS Credit Line to Give Bank Time to Decide on IPO BANCO BRADSECO: Discloses Stockholders' Meeting Results BANCO NACIONAL: Grants BRL6 Million Loan to Eight Credit Coops BANCO NACIONAL: Okays 2 Loans for Rio de Janeiro & Ceara Subway COMPANHIA ENERGETICA: Up 5.5% in Sao Paolo Trading DELPHI CORP: Moody's Lifts Rating on New 2nd Lien Loan to 'B2' FORD MOTOR: February 2008 Saw Focus Sales Up By 36 Percent FORD MOTOR: Jaguar and Land Rover Sale Won't Affect S&P's Rtngs. HUGHES NETWORK: Net Income Rose Up 161% to US$50 Million in 2007 USINAS SIDERURGICAS: Earns BRL970 Million in Fourth Quarter 2007 C A Y M A N I S L A N D S BEGUISURI LIMITED: Proofs of Claim Filing Deadline is April 3 FDVG BALANCED: Sets Final Shareholders Meeting for April 3 HARARE SCDO: Proofs of Claim Filing Deadline is April 3 JOHCM TRIDENT: Will Hold Final Shareholders Meeting on April 3 LDA HOLDINGS: Sets Final Shareholders Meeting for April 3 ML PRINCIPAL: Will Hold Final Shareholders Meeting on April 3 MONITOR OIL: Must Talk with Creditors On Cash Collateral Use NBL FUNDING: Sets Final Shareholders Meeting for April 3 PALLAS SCDO: Proofs of Claim Filing Deadline is April 3 PATHFINDER INVESTMENTS: Proofs of Claim Filing is Until April 3 PENARTH INVESTMENTS: Proofs of Claim Filing Deadline is April 3 PETROCHEMICAL INVESTMENTS: Final Shareholders Meeting on April 3 SOUTH SHORE: Will Hold Final Shareholders Meeting on April 3 SPARCO INVESTMENTS: Proofs of Claim Filing is Until April 3 TELEXPRESS INVESTMENTS: Final Shareholders Meeting is on April 3 ZEBRA CAPITAL: Sets Final Shareholders Meeting for April 3 C H I L E QUEBECOR WORLD: Panel Taps Kurtzman Carson as Comm. Agent QUEBECOR WORLD: Seeks Authority to Assume Various Contracts QUEBECOR WORLD: Wants to Pay US$3,175,111 Sales Commissions C O L O M B I A ECOPETROL: Wants to List Shares on New York Stock Exchange PACIFICNET INC: Files Involuntary Bankruptcy in Delaware Court SOLUTIA INC: Harbinger Capital, et al., Hold 30.1% Stake SOLUTIA INC: Settlement with GE Betz Gets Court Approval SOLUTIA INC: Several Parties Disclose Ownership of Firm Shares C O S T A R I C A HERBALIFE LTD: Seven Summits Issues PriceWatch Alerts SIRVA INC: Committee Requests to Hire TRN as Investment Banker G U A T E M A L A ABITIBIBOWATER: Affiliate Prices US$413MM Offering of Sr. Notes TECO ENERGY: Fitch Raises Issuer Default Rating From 'BB+' M E X I C O CLEAR CHANNEL: Get Temporary Restraining Order Against Banks CLEAR CHANNEL: Fitch Says Ratings Hold if Going-Private Fails CLEAR CHANNEL: Might Face Ad Sector Woes Alone, Report Says CLEAR CHANNEL: Moody's Says Ratings Remain Under Review GLENSHAW GLASS: Changes Name to Kelman Bottles MOVIE GALLERY: Court Extends Lease Decision Period to May 13 MOVIE GALLERY: SyWest Opposes Lease Assignment to WaMu MOVIE GALLERY: Wants Consent Procedures for Lessors Approved * MEXICO: Default Rate Remains Low Due to Good Economy, S&P Says P E R U GLOBAL PAYMENT: Inks Securities Purchase Pacts with 3 Investors P U E R T O R I C O ADVANCED MEDICAL: Loses US$192MM in Year Ended Dec. 31, 2007 GOLD CENTER: Gets OK to Hire Landrau Rivera as Counsel GOLD CENTER: Sec. 341 Meeting Rescheduled to April 11 PEP BOYS: Awards Advertising Account to Zimmerman Agency PILGRIM'S PRIDE: Promotes Robert Wright as CEO U R U G U A Y NUEVO BANCO: Advent & Gilinkski to Agree on Sale by April 18 V E N E Z U E L A CHRYSLER LLC: Clarifies Misleading Coverage of Discount Programs PETROLEOS DE VENEZUELA: Inks Partnership Pact With Petrobras PETROLEOS DE VENEZUELA: May Launch Carabobo Tender in Two Months X X X X X X MODERN TECHNOLOGY: Plans Caribbean Expansion with Encore Energy * Chadbourne & Parke Grows LA Practice w/ Mexico Office Opening * S&P Publishes 2008 Credit Outlook on Global Auto Industry * BOND PRICING: For the Week March 24 - March 28, 2008 - - - - - ================= A R G E N T I N A ================= 4DATALINK LATIN: Trustee to Verify Proofs of Claim Until May 2 -------------------------------------------------------------- Ruben Daniel Sarafian, the court-appointed trustee for 4Datalink Latin America S.R.L.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 2, 2008. Mr. Sarafian will present the validated claims in court as individual reports on June 13, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by 4Datalink Latin and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of 4Datalink Latin's accounting and banking records will be submitted in court on Aug. 12, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 24, 2009. The trustee can be reached at: Ruben Daniel Sarafian Viamonte 1337 Buenos Aires, Argentina COMPULBIKE SA: Trustee to Verify Proofs of Claim Until April 23 --------------------------------------------------------------- Jorge Podhorzer, the court-appointed trustee for Compulbike SA's reorganization proceeding, will be verifying creditors' proofs of claim until April 23, 2008. Mr. Podhorzer will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 12 in Buenos Aires, with the assistance of Clerk No. 23, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Compulbike and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Compulbike's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on March 12, 2009. The debtor can be reached at: Compulbike SA Rodriguez Pena 434 Buenos Aires, Argentina The trustee can be reached at: Jorge Podhorzer Carmen 716 Buenos Aires, Argentina KATEFA SRL: Court Appoints Trustee for Firm's Bankruptcy -------------------------------------------------------- The National Commercial Court of First Instance in Buenos Aires has appointed Norberto Bonesi as the trustee for Katefa S.R.L.'s bankruptcy proceeding. Mr. Bonesi will be verifying creditors' proofs of claim and present the validated claims in court as individual reports in court. The court will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Katefa and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Bonesi will present a general report containing an audit of Katefa's accounting and banking records in court. Mr. Bonesi is also in charge of administering Katefa's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Norberto Bonesi Avenida Juan B. Justo 5096 Buenos Aires, Argentina MOLINOS HARINEROS: Buenos Aires Court Concludes Reorganization -------------------------------------------------------------- Molinos Harineros Clabecq S.A. concluded its reorganization process, according to data released by Infobae on its Web site. The closure came after the National Commercial Court of First Instance in Azul, Buenos Aires, homologated the debt plan signed between the company and its creditors. NEXUS CAPITAL: Trustee to Verify Proofs of Claim Until May 5 ------------------------------------------------------------ Alfredo Jorge Yanni, the court-appointed trustee for Nexus Capital de Argentina S.A.'s reorganization proceeding, will be verifying creditors' proofs of claim until May 5, 2008. Mr. Yanni will present the validated claims in court as individual reports on June 16, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Nexus Capital and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Nexus Capital's accounting and banking records will be submitted in court on Aug. 13, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on Feb. 10, 2009. The trustee can be reached at: Alfredo Jorge Yanni Viamonte 1446 Buenos Aires, Argentina SALTA HYDROCARBON: S&P Puts US$234MM Notes' B Rating on WatchNeg ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' rating on Salta Hydrocarbon Royalty Trust's US$234 million 11.55% targeted amortization notes due 2015 on CreditWatch with negative implications. The rating action addresses the increased possibility that the provincial government of the Argentine Province of Salta will attempt to take, or provoke, actions that prevent full, timely debt service payments, including a forced restructuring of the original payment terms. Officials from Salta's provincial government have expressed to S&P their intention to propose a restructuring of the notes' terms. Although details of the proposed restructuring have not been specified, their statements indicate an increased likelihood that the province will attempt to force a restructuring, potentially by trying to interfere in the transaction mechanics that provide for payment of debt service into an offshore trust account. S&P's rating reflects its opinion of the issuer's ability and willingness to pay interest and principal according to the transaction's original terms. S&P considers any change to these terms, including changes provoked or forced by a third party, a default. Most of the transaction's legal documents are governed by New York State law. The transaction structure specifies that a group of 17 private oil and gas companies with concessions to operate in the Province of Salta must pay a percentage of royalty payments, owed to the province, to an offshore trust account. These offshore funds are used to pay debt service. These provisions, in addition to a diversified obligor base, negative covenants regarding government interference, and other structural features, limit but do not eliminate the provincial government's ability to carry out its intention to restructure the transaction. Given the provincial government's expressed commitment to try to amend the notes despite the transaction's structural disincentives, S&P believes the risk of interference in the transaction by the provincial government has increased significantly. It is not clear, however, whether such attempts to interfere with the structure would be successful. It is likely that S&P will significantly lower the ratings on the notes if Salta's provincial government succeeds in negotiating an adverse change in the terms and conditions of the bonds. On the other hand, if the terms and conditions do not change materially or the potential changes do not impair the issuer's creditworthiness, S&P will affirm the rating on the notes. To date, there are sufficient funds in the collection account to meet the debt service payment due March 28, 2008. The reserve account, which is equivalent to the next two interest payments, is also fully funded. The Salta Hydrocarbon Royalty Trust program, issued in 2001, is a securitization of 80% of future royalty payments due to the Argentine province of Salta from a group of 17 private companies operating oil and gas concessions in the province. The transaction benefits from overcollateralization, an insurance policy that protects the issuer from the risk that it cannot transfer or convert currency needed for interest payments, and a liquidity reserve fund. SEARCH SA: Proofs of Claim Filing Deadline is May 29 ---------------------------------------------------- Hector Vegetti, the court-appointed trustee for Search SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until May 29, 2008. Mr. Vegetti will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires , with the assistance of Clerk No. 3, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Search and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Search's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Vegetti is also in charge of administering Search's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Search SA Araoz 823 Buenos Aires , Argentina The trustee can be reached at: Hector Vegetti Montevideo 711 Buenos Aires , Argentina * ARGENTINA: S&P Says Agricultural Protests Could Weaken Rating --------------------------------------------------------------- Standard & Poor's Ratings Services issued an article, entitled "Credit FAQ: The Agricultural Strike In Argentina: Cooking Pans And Beyond," that examines how recent demonstrations in response to the government's decision to hike taxes on agricultural exports reflect increasing discontent with a style of government that could potentially lead to a weaker sovereign rating over time for the Republic of Argentina (B+/Stable/B sovereign credit ratings). According to S&P's credit analyst Sebastian Briozzo, the government's popularity, albeit declining, is still relatively high. However, challenges are increasing and questions remain about whether the government has the management skills to deal with the increasing tension and the risk of a more polarized society. "The government has a political and economic cushion, but has to use it appropriately," said Mr. Briozzo. "Politically, its popularity remains high. Economically, despite the increase in inflation, Argentina's macroeconomic situation continues to be characterized by a fiscal surplus, a current account surplus, a relatively large level of international reserves, and manageable financing needs that justify its current rating category." The article addresses the question of why the citizens of a country whose GDP has been growing at above 8% for more than five years are demonstrating at major urban and rural centers. The government's tax hike triggered protests and demonstrations by agricultural producers across the country, leading to roadblocks and a sector strike that is now in its 15th day and threatens shortages in important food products. Demonstrators in major cities beat cooking pans in the streets. Mr. Briozzo explained that, while these events are contained in the rating, maintaining low financing requirements remains critical at the current level. "A strong fiscal performance, in particular a correction to the fiscal expansionary stance implemented in the 2007 electoral year, therefore remains fundamental to containing the downside risk to the rating. However, as policies designed to correct the fiscal performance place economic growth sustainability and political governability at greater risk, they will also contain any upside potential for Argentina's rating," Mr. Briozzo concluded. * ARGENTINA: S&P Issues Credit FAQ on Agricultural Strike Effect ---------------------------------------------------------------- Why are the citizens of a country whose GDP has been growing at above 8% for more than five years demonstrating at major urban and rural centers? While the effectiveness of current policies is always debatable, what seems to be triggering this discontent�and could lead to a weaker sovereign rating over time�is a style of management based upon the concentration of power and lacking sufficient dialogue with the different sectors of the economy. Frequently Asked Questions How did we get here? On March 11, 2008, the government decided to increase taxes on agricultural exports to 44.1% for soybeans from 35%, and 39.1% for sunflowers from 32%, while reducing export taxes on wheat and corn to 27.1% from 28% and 24.2% from 25%, respectively. Furthermore, it implemented a system of moving export taxes that will vary according to the prices of agricultural commodities. Therefore, any potential increase in international prices will lead to higher export duties, capturing most of the potential upside benefits for the sector. The measure triggered important protests and demonstrations by agricultural producers across the country, leading to roadblocks and a sector strike that is now in its 14th day and threatens shortages in important food products. What happened on March 25? Problems escalated in rural areas, and after 13 days President Cristina Fernandez de Kirchner delivered a speech that strongly ratified the increase in export taxes. The speech failed to open the door to any dialogue and triggered greater polarization. Spontaneous and peaceful demonstrations next began in the country's major urban centers, resembling the demonstrations held in 2001 over government policies at the time, with people beating pans in the streets. Fortunately, the demonstrations ended peacefully. What's really going on? Export taxes on agricultural products were implemented in 2002, and, despite expected complaints from the sectors affected, were actually accepted by most Argentines in the context of a depreciated exchange rate and high and growing agricultural commodity prices. It is highly unusual for one government economic policy tool to target so many objectives at the same time. First -- and a fundamental objective within the social agenda of an administration that was voted into office by most of the population in October 2007 -- export duties are actually a redistribution tool. They allow the government to redistribute extraordinary profits realized from unusually high agricultural commodity prices to the more vulnerable sectors of the population. Second -- also on the social and economic fronts -- these taxes allow the government to contain the effect of increasing international prices on domestic inflation. Third, export taxes introduce an incentive to promote the cultivation of crops other than soybeans, avoiding the medium- and long-term risk of concentrating agricultural production in just one crop. And last, but certainly not least, export duties are an important source of fresh revenue for the central government. In that this revenue, which represented 10.2% of total tax revenue and 2.5% of GDP in 2007 and is expected to reach about 3% of GDP in 2008, is not redistributed to the provinces as part of the intergovernmental system in Argentina. The central government has complete discretion over this revenue and how to apply it. High and growing commodity prices matched by a weak peso, linked to a weak U.S. dollar, generated high profitability in the agricultural sector since 2002. As mentioned, while the existence of export taxes was accepted even by the agricultural sector, the problem was their level. However, export taxes on soybeans increased progressively to 44% in 2008 from 9% in 2002. In this regard, the last increase affected the production equation, particularly for small and medium producers, and for the first time united them with large producers against the government. Nonetheless, and despite the fact that the increase in export taxes triggered the agricultural strike, what gave significance to the events was more than just the policies involved. It took more than the unified claims of the very different participants in Argentina's complex and heterogeneous agricultural sector to get people out in the streets demonstrating with their cooking pans. While there are certainly ideological differences between government supporters and those who demonstrated against it with regard to the urgency given to social problems in Argentina and how to solve them, what transformed the event into a significant political phenomenon seems to relate more to a certain style of government. At least part of the public perceives that the government decides on measures and implements them without sufficient and appropriate dialog among the sectors involved. Decisions seem to be concentrated in the president's inner circle. Political management is becoming a more serious area of analysis in Argentina, both in public opinion and in terms of its credit rating evaluation. The ability of the government to manage a more difficult set of economic and political problems in the coming years will have an impact on the sovereign rating. What's next? President Cristina Fernandez's popularity is expected to take a hit after recent events, but remains at a relatively solid level. As of March 14, 2008, only a few days after the increase in export taxes was announced, the president's popularity reached a still-high 47.2% (people who see the president's performance as good or very good), and was oscillating between 55% and 45% since the beginning of the year. On the one hand, the demonstrations in major urban areas surprised everyone because spontaneous demonstrations are uncommon even for Argentina's highly opinionated society, particularly in an economy that continues to grow rapidly. On the other hand, President Fernandez actually lost in many of the major urban areas in the October 2007 presidential election and was not popular there to begin with. However, what is more surprising is the strength of the demonstrations against the president in major rural areas, where Cristina Fernandez won heavily in the election. Increasing discontent with the government could also be supported by more significant food shortages than seen thus far. Fourteen days of agricultural strikes should soon start affecting the availability of agricultural products. The political landscape is also expected to change due to increasing participation of provincial governors in national politics, in particular the governors of Cordoba, Juan Schiaretti, a Peronist who supported Cristina Fernandez in the presidential election, and of Sante Fe, Hermes Binner, a moderate socialist who supported the candidacy of opposition candidate Elisa Carrio but maintained sound relationships with the president. The economic structures of these two provinces (second and third in terms of economic importance) are based upon agricultural and agro industrialized products. The two governors have called for moderation and for a fluent dialog to be maintained with agricultural producers. They, along with other governors, could become important political players as this standoff continues. It is important to remember that governors are also negatively affected by export taxes since this fiscal revenue is not shared with producer provinces. Will these issues affect the current 'B+' long-term sovereign credit rating? Although deteriorating, governability is not seen at risk at this point. The government's popularity, albeit declining, is still relatively high. However, challenges are increasing and questions remain about whether the government has the management skills to deal with the increasing tension and the risk of a more polarized society. The government has a political and economic cushion, but has to use it appropriately. Politically, as mentioned, its popularity remains high. Economically, despite the increase in inflation, Argentina's macroeconomic situation continues to be characterized by a fiscal surplus, a current account surplus, a relatively large level of international reserves, and manageable financing needs that justify its current rating category. Standard & Poor's Ratings Services 'B+' rating on Argentina could therefore be considered relatively low�if the analysis was determined only by these indicators. However, the ratings analysis incorporates issues that have to do with institutional weaknesses and questions on the medium- and long-term predictability and sustainability of government policies. Events such as those happening with the intervention of the Instituto Nacional de Estadisticas y Censo (INDEC), the national statistical agency, were an example of when and how issues such as institutional weakness could materialize in economic policies. Therefore, these events are somehow contained in the current rating category. However, maintaining low financing requirements remains critical at the current rating level. A strong fiscal performance, in particular a correction to the fiscal expansionary stance implemented in the 2007 electoral year, therefore remains fundamental to containing the downside risk to the rating. However, as policies designed to correct the fiscal performance place economic growth sustainability and political governability at greater risk, they will also contain any upside potential for Argentina's rating. ============= B E R M U D A ============= AIRLORD TRANSPORT: Proofs of Claim Filing is Until April 9 ---------------------------------------------------------- Airlord Transport Ltd.'s creditors are given until April 9, 2008, to prove their claims to Marco Montarsolo, 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. Airlord Transport's shareholder decided on March 17, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Marco Montarsolo Sofia House, 1st Floor 48 Church Street, Hamilton Bermuda AIRLORD TRANPSORT: Sets Final Shareholders Meeting for April 23 --------------------------------------------------------------- Airlord Transport Ltd. will hold its final general meeting on April 23, 2008, at 10:00 a.m. at Sofia House, 1st Floor, 48 Church Street, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. Airlord Transport's shareholder decided on March 17, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Marco Montarsolo Sofia House, 1st Floor 48 Church Street, Hamilton Bermuda LASALLE RE: Proofs of Claim Filing Deadline is April 10 ------------------------------------------------------- LaSalle Re Limited's creditors are given until April 10, 2008, to prove their claims to Mike Morrison, 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. LaSalle Re's shareholder decided on March 13, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Mike Morrison KPMG Advisory Limited Crown House, 4 Par-la-Ville Road Hamilton HM 08, Bermuda LASALLE RE CORPORATE: Proofs of Claim Filing is Until April 10 -------------------------------------------------------------- LaSalle Re Corporate Capital Ltd.'s creditors are given until April 10, 2008, to prove their claims to Mike Morrison, 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. LaSalle Re's shareholder decided on March 13, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Mike Morrison KPMG Advisory Limited Crown House, 4 Par-la-Ville Road Hamilton HM 08, Bermuda MAN MAC: Proofs of Claim Filing Deadline is April 2 --------------------------------------------------- Man Mac Monch 9A Limited's creditors are given until April 2, 2008, to prove their claims to Beverly Mathias, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Man Mac's shareholders agreed on March 18, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton HM O9, Bermuda SCOTTISH RE: To Postpone Form 10-K Filing for Year Ended Dec. 31 ---------------------------------------------------------------- Scottish Re Group Limited will be postponing the release of results for the fourth quarter and the filing of its Form 10-K for the year ended Dec. 31, 2007. The company had previously reported that it expected to report results for the fourth quarter of 2007 after the market closes on March 27, 2008 and expected to host an earnings conference call to discuss the fourth quarter and full year results on March 28, 2008. As a result of the matters described below, the company will be postponing the earnings release and related earnings conference call to a later date to be announced. On March 12, 2008, the company filed a Form 12b-25 with the Securities and Exchange Commission stating that it was postponing the filing of its Annual Report on Form 10-K for the year ended Dec. 31, 2007 beyond the due date and that it intended to file its Form 10-K on or about April 1, 2008 so that the company could: (i) complete its process of evaluating mark-to-market valuations and other-than-temporary impairments in the carrying value of its available-for-sale securities; (ii) address the accounting and disclosure requirements arising from the company�s recently announced change in strategy; and (iii) allow sufficient time for the company�s independent registered public accounting firm, Ernst & Young LLP, to complete its audit of the company�s consolidated financial statements for the year ended Dec. 31, 2007. The company has filed with the U.S. Securities and Exchange Commission an amendment to its Form 12b-25 in respect of the said matters. In light of continuing deterioration in the credit markets and the resulting further declines in the market value of the company�s investment portfolio subsequent to the fiscal year end, the company has determined, in consultation with Ernst & Young LLP, that additional work is required to evaluate and conclude on the amount of other-than-temporary impairment charges to be recognized in the consolidated financial statements in accordance with US GAAP. The company�s determination of other-than-temporary impairments for securities classified as available-for-sale involves a variety of assumptions and estimates and includes assessments of risks and uncertainties associated with general economic conditions as well as specific conditions affecting specific issuers. The company�s other-than-temporary impairment methodology includes an analysis of gross unrealized losses for securities where the estimated fair value has declined significantly below cost or amortized cost. Factors being considered by the company include the length of time fair value has been below cost, credit worthiness of the issuer, position of the security in the issuer�s capital structure, the presence and estimated value of collateral or other credit enhancement, length of time to maturity, interest rates and the company�s intent and ability to hold the security until the market value recovers. Given the concentration of the Company�s investment portfolio in residential mortgage-backed securities backed by sub-prime and Alt-A mortgages, the company has supplemented its assessment of other-than-temporary impairments with specific procedures related to these securities including best estimate cash flow simulations of projected principal losses. For certain investments in beneficial interests in securitized financial assets of less than high quality with contractual cash flows, including asset backed securities, the company is required to apply Emerging Issues Task Force No. 99-20 Recognition of Interest Income and Impairment on Purchased Beneficial Interests that Continue to Be Held by a Transferor in Securitized Financial Assets (EITF 99-20) which requires a periodic update of the company�s best estimate cash flows over the life of the security, utilizing assumptions and estimates that a market participant would use. The company is conducting a detailed review in conjunction with Ernst & Young LLP of its current and past accounting practices for other-than-temporary impairments of lower credit quality structured securities pursuant to the requirements of EITF 99-20. Although the company is currently unable to specify the amount of other-than- temporary impairments to be included in realized investment losses for the fourth quarter of 2007, the company believes that the amounts will significantly exceed those previously reported for prior periods. The time and effort required to complete the foregoing evaluation is proving to be greater than the company had previously anticipated. The company is also examining whether this analysis would require a restatement of previously reported financial results. As a result, additional time is required for the company to complete its work in the foregoing areas and for Ernst & Young LLP to complete its audit procedures of the Company's consolidated financial statements. Consequently, the company will be unable to file its Form 10-K for the year ended Dec. 31, 2007, with the SEC by April 1, 2008. The company is diligently working on completing the Form 10-K but is unable to specify at this time when it will be in a position to make the filing. The company anticipated that its full year 2007 results as compared with the corresponding period for 2006 will show that revenues have decreased primarily as a result of realized investment losses representing other-than-temporary impairments on investments. Total benefits and expenses for 2007 are expected to be comparable with that of the prior year. However, in light of changes in our assessment of other-than-temporary impairment charges since March 12, 2008, the company currently anticipates that its net loss after tax for the year ended Dec. 31, 2007 will be higher than its net loss reported for the year ended Dec. 31, 2006, although the exact amount of such change cannot be determined at this time. Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. On Sept. 30, 2007, Scottish Re reported total assets of US$13.4 billion and shareholder's equity of US$869 million. * * * As reported in the Troubled Company Reporter-Latin America on March 14, 2008, Moody's Investors Service downgraded the preferred stock debt rating of Scottish Re Group Limited to Caa3 from B2, and the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company Ltd. and Scottish Re, Inc., were lowered to Ba3 from Baa3. The ratings were left on review for possible further downgrade, continuing a review that had been initiated on Feb. 15. At the same time, Moody's Investors Service downgraded the preferred stock debt rating of Scottish Re Group Limited (Scottish Re; NYSE: SCT) to Caa3 from B2, and the insurance financial strength (IFS) ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (U.S.), Inc., were lowered to Ba3 from Baa3. SECURITY CAPITAL: PwC Confirms XL Capital's New Biz Suspension -------------------------------------------------------------- PricewaterhouseCoopers LLP in New York reported on March 24, 2008, that following significant losses in 2007, the ratings of Security Capital Assurance Ltd.'s financial guarantee insurance provider, XL Capital Assurance Ltd., issued by the three major rating agencies have been downgraded. As a consequence, PwC said that XL Capital has suspended writing substantially all new business. XL Capital will administer its existing policies, including collecting premiums, paying claims, and negotiating termination of selected policies. The resumption of normal business operations is not expected in the near term. PwC reviewed and audited the financial position of XL Capital Assurance Inc, and subsidiary at Dec. 31, 2007, and Dec. 31, 2006, and the results of its operations and its cash flows for each of the three years in the period ended Dec. 31, 2007. XL Capital's Annual 2007 Results XL Capital and its subsidiary have US$3,086,490,000 in total assets, US$3,056,924,000 in total liabilities, and US$29,566,000 in total shareholders' equity as of Dec. 31, 2007. The companies for the year 2007 have total revenues of a negative US$101,729,000, which included US$321,929,000 written gross premiums and US$313,572,000 written ceded premiums and US$150,036,000 net losses on credit derivatives. They reported US$356,266,000 net loss for the quarter as compared with US$576,000 net loss and total revenues of US$33,631,000 for the year 2006. Developments, Risks and Uncertainties The maintenance of triple-A ratings has been fundamental to the XL Capital's historical business plan and business activities. However, adverse developments in the credit markets generally and the mortgage market specifically in the second half of 2007, which accelerated in the fourth quarter, have resulted in material adverse effects on its business, results of operations, and financial condition. These effects include rating agency downgrades of, and significant provisions for losses and loss adjustment expenses associated with, certain of the residential mortgage backed securities and collateralized debt obligations of asset backed securities guaranteed by XL Capital. This caused the capital requirements for maintaining its historic triple-A ratings of each of the three rating agencies to increase materially and, subsequently, all three rating agencies (Moody's Investors Service Inc., Fitch Ratings and Standard & Poor's Ratings Services) took the negative rating actions, which have caused the company to suspend writing substantially all new business resulting in the loss of new incremental earnings and cash flow. Although there can be no assurance that XL Capital will be able to recommence writing new business in the near term or at all, it believes its liquidity resources are sufficient to fund its obligations and its statutory capital is sufficient to comply with its regulatory solvency and regulatory risks limit requirements for at least the next 12 months. On Jan. 23, 2008, Fitch downgraded the insurance financial strength ratings of XLCA, XLCA-UK and XLFA to "A" (Rating Watch Negative) from "AAA." On Feb. 25, 2008, S&P downgraded the IFS, financial enhancement and issuer credit ratings of XLCA, XLCA-UK and XLFA to "A-" from "AAA" and each remains on CreditWatch with negative implications. On March 4, 2008, Moody's placed the "A3" IFS ratings of XLCA, XLCA-UK and XLFA on review for possible downgrade. Previously, on Feb. 7, 2008, among other actions, Moody's downgraded the IFS ratings of XLCA, XLCA-UK and XLFA to "A3" (Negative Outlook) from "Aaa." A full-text copy of the XL Capital's annual 2007 financial report is available for free at http://ResearchArchives.com/t/s?29a6 About Security Capital Security Capital Assurance Ltd. (NYSE: SCA) -- http://www.scafg.com-- is a Bermuda-domiciled holding company whose primary operating subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd, provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. * * * As reported in the Troubled Company Reporter-Latin America March 25, 2008, Standard & Poor's Ratings Services lowered its rating on Security Capital Assurance Ltd.'s series A perpetual noncumulative preference shares to 'C' from 'BB-'. The shares remain on CreditWatch with negative implications. At the same time, Standard & Poor's withdrew its 'BB+' preliminary senior secured debt rating and 'BB-' preliminary preferred stock rating on SCA's Rule 415 shelf registration. These actions follow the company's recent announcement that its board of directors elected not to declare a semiannual dividend payable on March 31, 2008. STAINLESS INSURANCE: Proofs of Claim Filing Deadline is April 9 --------------------------------------------------------------- Stainless Insurance Ltd.'s creditors are given until April 9, 2008, to prove their claims to Heidi Daniels-Roque, 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. Stainless Insurance's shareholder decided on March 14, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Heidi Daniels-Roque Sofia House, 1st Floor 48 Church Street, Hamilton Bermuda STAINLESS INSURANCE: Final Shareholders Meeting is on April 23 -------------------------------------------------------------- Stainless Insurance Ltd. will hold its final general meeting on April 23, 2008, at 10:00 a.m. at Sofia House, 1st Floor, 48 Church Street, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. Stainless Insurance's shareholder decided on March 14, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Heidi Daniels-Roque Sofia House, 1st Floor 48 Church Street, Hamilton Bermuda =========== B R A Z I L =========== ATARI: Non-Compliance with Nasdaq Rules Cues Stocks Delisting ------------------------------------------------------------- Atari Inc. received a Staff Determination Letter from the Nasdaq Listing Qualifications Department stating that Atari Inc. has not gained compliance with the requirements of Nasdaq Marketplace Rule 4450(b)(3), and that its securities are therefore subject to delisting from The Nasdaq Global Market. On Dec. 21, 2007, the Nasdaq Listing Qualifications Department notified Atari Inc. that, pursuant to Nasdaq Marketplace Rule 4450(e)(1), unless the market value of Atari Inc.'s publicly held shares, which is calculated by reference to Atari Inc.'s total shares outstanding, less any shares held by officers, directors or beneficial owners of 10% or more, maintains an aggregate market value of US$15 million or more for a minimum of 10 consecutive business days prior to March 20, 2008, Atari Inc.'s securities would be subject to delisting. The value of Atari Inc.'s publicly held shares did not reach that level within the required period. Atari Inc. intends to request a hearing before a Nasdaq Listing Qualifications Panel in order to appeal the Nasdaq Staff's determination in light of, among other things, the pending proposal by Infogrames Entertainment SA to acquire all of the outstanding shares of common stock not held by IESA. The hearing request will stay the delisting and, as a result, Atari Inc.'s securities will remain listed on The Nasdaq Global Market until the Panel issues its decision after the hearing. There can be no assurance that the Panel will grant Atari Inc.'s request for continued listing on The Nasdaq Global Market. About Atari Inc. Headquartered in New York, Atari Incorporated, (NASDAQ: ATAR) -- http://www.atari.com/-- publishes and distributes interactive entertainment software in the U.S. The company's 1,000+ published titles distributed by the company include hard-core, genre-defining franchises such as Test Drive(R); and mass-market and children's franchises such Dragon Ball Z(R). Atari Inc. is a majority-owned subsidiary of France- based Infogrames Entertainment SA, an interactive games publisher in Europe. Atari has offices in Brazil, the United Kingdom and Japan. As reported in the Troubled Company Reporter on Feb. 20, 2008, Atari Inc.'s consolidated balance sheet at Dec. 31, 2007, showed US$43.5 million in total assets and US$60.3 million in total liabilities, resulting in a US$16.8 million total stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with US$34.9 million in total current assets available to pay US$45.2 million in total current liabilities. Going Concern Doubt New York-based Deloitte & Touche LLP expressed substantial doubt about Atari's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2007. The auditing firm pointed to the company's significant operating losses. As of Dec. 31, 2007, and through Feb. 12, 2008, Atari Inc. was in violation of its financial covenants. BlueBay High Yield Investments (Luxembourg) S.A.R.L., Atari Inc.'s lender and a majority shareholder of Infogrames Entertainment S.A., has not waived this violation and has entered into a forbearance agreement with Atari Inc. which states that BlueBay will not exercise its rights on its facility until the earlier of (i) March 3, 2008, (ii) additional covenant defaults except for the ones existing as of Feb. 12, 2008, or (iii) if any action transpires which is viewed to be adverse to the position of the lender. BANCO BMG: UBS Credit Line to Give Bank Time to Decide on IPO ------------------------------------------------------------- BANCO BMG's Chief Executive Officer Ricardo Guimaraes told Business News Americas that the bank's BRL1 billion credit line from UBS Pactual will give it time to decide whether to carry out an initial public offering or form a partnership with another bank. BNamericas notes that Banco BMG expected to get the first installment of BRL600 million from UBS Pactual last week, with the remaining BRL400 million at a later date. Mr. Guimaraes commented to BNamericas, "An IPO or a partnership are still on the horizon. We could do one or the other but not before next year, if at all." According to BNamericas, Mr. Guimaraes said that Banco BMG has spoken with five investment banks before going with UBS Pactual and that this proves the trust foreign investors have in the Brazilian market. Mr. Guimaraes told BNamericas, "We're originating a lot of new loans, more than BRL600 million a month. We're confident payroll loans still have a lot of potential, along with vehicle financing." BNamericas relates that Banco Nacional wants to boost its lending by at least 25% this year, after expanding lending by 44.5% to BRL12.5 billion last year. Mr. Guimaraes told BNamericas that Banco BMG will stay away from international capital markets to finance lending growth, although chances to sell bonds outside Brazil could arise before year-end. "We got a good loan [from the UBS Pactual] at a difficult time. We look favorably on the development of payroll loans in other countries, especially emerging markets. The joint venture in Russia has stalled but not because of our choice," Mr. Guimaraes commented to BNamericas. Banco BMG is the banking arm of Grupo BMG, which also has real estate, food manufacturing and agro industry holdings. The bank is a niche player focused on loans to civil servants, with repayments taken monthly from payrolls. BMG operates mainly through in-house representatives in state companies. It also offers leasing and asset management services. * * * As reported in the Troubled Company Reporter-Latin America on June 26, 2007, Standard & Poor's Ratings Services raised its long-term counterparty credit rating on Banco BMG S.A. to 'BB-' from 'B+'. The rating was removed from CreditWatch Positive where it was placed June 11, 2007. S&P said the outlook is stable. On March 10, 2008, Moody's Investors Rating gave Banco BMG's US$250 million issue a Ba1 long-term foreign currency debt rating with a stable outlook and the bank's US$1 billion note program a Ba1 long-term foreign currency rating with a stable outlook and a Not Prime short-term foreign currency rating. BANCO BRADSECO: Discloses Stockholders' Meeting Results ------------------------------------------------------- Banco Bradesco S.A. has informed its stockholders, clients and the market in general the results of its Annual Stockholders� Meeting and Special Stockholders� Meeting. The company has approved the following: In the Annual Stockholders� Meeting: 1. the Management�s accounts, the Management Report, the Financial Statements - including the allocation of Net Income -, the Independent Auditors� and Fiscal Council�s Reports and the Summary of the Audit Committee Report, related to the fiscal year ended on Dec. 31, 2007, as well as the ratification of Interest on own Capital and Dividends related to 2007, in the amount of BRL$2,822,796,086.42, already distributed; 2. the reelection of Lazaro de Mello Brandao, Antonio Bornia, Mario da Silveira Teixeira Junior, Marcio Artur Laurelli Cypriano, Joao Aguiar Alvarez, Denise Aguiar Alvarez Valente, and Ricardo Espirito Santo Silva Salgado, to compose the Board of Directors; 3. the election of the Fiscal Council�s members: Domingos Aparecido Maia, Jose Roberto Aparecido Nunciaroni and Ricardo Abecassis Espirito Santo Silva - Sitting Members; Joao Batistela Biazon, Nelson Lopes de Oliveira and Renauld Roberto Teixeira - Deputy Members; 4. the annual global compensation and the amount allocated to fund the Complementary Pension Plans, both for the Management, as well as the individual compensation for the members of the Fiscal Council. In the Special Stockholders� Meeting: 1. the increase from 3 to 4 of the minimum number and from 6 to 8 of the maximum number of members that compose the Compliance and Internal Control Committee; and the establishment of the Risks and Capital Allocation Integrated Management Committee; 2. the consolidation of the Bylaws. By resolution taken in a proper meeting held on this date, the Board of Directors of this Bank, immediately after the Annual Stockholders� Meeting, which elected the members thereof, has chosen to take office as its Chairman and Vice-Chairman, Mr. Brandao and Mr. Bornia, respectively. These deliberations will be effective after the necessary approval of the process by the Brazilian Central Bank. About Banco Bradesco Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * On Nov. 12, 2007, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco. BANCO NACIONAL: Grants BRL6 Million Loan to Eight Credit Coops -------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has approved a financial support for BRL6 million to a microcredit program of eight credit cooperatives affiliated to Associacao das Cooperativas de Apoio a Economia Familiar [Ascoob]. These cooperatives operate in the semiarid of the State of Bahia, one of the poorest regions of Brazil, which economic activity is essentially rural, with predominance in the exploration of sisal, extensive farming and familiar agriculture for subsistence. The total volume of funds applied to microcredit during the project duration (five years) will be BRL21.5 million, due to financing rotation. With that, the cooperatives have the target of supporting at least 25% (around 8.5 thousand) of their total members within the next five years, and it is estimated a generation and maintenance of 13.5 thousand jobs until 2012. The project has a strong impact on income generation and regional development, mainly taking into consideration that the municipalities involved present a Human Development Index (HDI) and GDP per capita lower than the average of the State of Bahia and Brazil. The average HDI of municipalities included in the project is 0.627, below the index of 0.693 in the State of Bahia or 0.757 in Brazil. The GDP per capita of those municipalities is BRL4,477.00, lower than BRL6,587.00 in the State of Bahia and BRL11,658.00 in Brazil. Among the merits of the project supported by BNDES are the importance of a contribution to the strengthening of the familiar agriculture for subsistence in one of the poorest regions of Brazil and an expansion in the offer of productive microcredit at the semiarid in the State of Bahia. In addition, the project will allow the attraction of new members and diversification of the products offered. The operation will also have an important impact on the financial results and businesses of cooperative in the region, because BNDES funds in the ambit of the Microcredit Program [PMC] have more favorable conditions in terms of costs and terms than the funds currently raised by them in the market. PMC credit conditions are financial charges of 2.5% per month and term up to 15 months with a 3-month grace period. Microcredit performance of cooperatives in the region is recent, arising from the integration with activities linked to an interdependent economy. In the last three years, such cooperatives performed about 4 thousand productive microcredit operations, lending approximately BRL5 million to about 3.2 thousand members, small rural producers. List of Cooperatives supported: * Cooperativa de Credito Rural de inhambupe Ltda - Sicoob Credite * Cooperativa de Credito Rural do Vale do Itapicuru Ltda - Ascoob Itapicuru * Cooperativa de Credito Rural Baixa Grande - Sicoob Grande * Cooperativa Valentense de Credito Rural Ltda � Sicoob Coopere * Cooperativa de Credito Rural do Piemonte � Ascoob Credimonte * Cooperativa de Credito Rural de Araci Ltda - Sicoob Araci * Cooperativa de Credito Rural de Serrinha Ltda � Ascoob Serrinha * Cooperativa de Credito Rural Pintadas - Sicoob Sertao Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. BANCO NACIONAL: Okays 2 Loans for Rio de Janeiro & Ceara Subway --------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has authorized two loans totaling BRL177 million for the construction and modernization of the subway in Rio de Janeiro and Ceara state capital Fortaleza. Business News Americas relates that Fortaleza subway firm Metrofor will get BRL142 million for the construction of the first stage of the subway system in the city. BNamericas notes that the project is part of the Brazilian federal government's growth acceleration plan. It has a total budget of BRL804 million, of which Banco Nacional is funding about 17.7%. The project includes 18 stations and 10 trains. The report says that the Fortaleza subway project has three stages and will connect the city to: -- Maracanau, -- Pacatuba, -- Caucaia, and -- Maranguape. BNamericas states that through the project, public transport system will be able to mobilize 158,000 passengers by 2011, a substantial increase compared to the current 10,000. According to BNamericas, Rio de Janeiro subway firm Metra-Rio will receive BRL34.3 million from Banco Nacional to implement new traffic control and ticket sales technology, to remodel railcars, and to carry out general maintenance. The loan is 62% of the project budget of BRL55.6 million. Metra-Rio will also implement a unique system for tickets through the use of a smart card with a computer chip. The project will make 3.57% more space for passengers on Line 1 and 2.11% more space on Line 2, BNamericas states. Banco Nacional de Desenvolvimento Economico e Social is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional currently carries a Ba2 foreign long-term bank deposit rating from Moody's Investors Service, and a BB+ long- term foreign issuer credit rating from Standards and Poor's Ratings Services. The ratings were assigned in August and May 2007. COMPANHIA ENERGETICA: Up 5.5% in Sao Paolo Trading -------------------------------------------------- Companhia Energetica de Minas Gerais has rose 5.5 percent to BRL30.59 in Sao Paulo trading, the biggest rally since Nov. 30, Paulo Winterstein of Bloomberg News reports. According to the report, Cemig, in four months, has gained after UBS AG recommended the company, saying that the concern in its energy concessions won't be renewed has been "exaggerated." The report adds that after the government refused to promise renewal of expiring energy concessions, Cemig has dropped 5.2 percent in the previous two days. Banco Santander analyst Marcio Prado said in a statement that the government's rejection to guarantee the renewal of concessions is "very bad news" for utilities. On March 25, Rival Cia. Energetica de Sao Paulo has canceled an auction to sell a stake in Cesp due to federal government's refusal to promise to renew the licenses to operate three Cesp hydroelectric dams. The stock has dived the most since 2006, Bloomberg relates. Citing UBS analyst Pedro Batista, Bloomberg says that "Market reaction was overly exaggerated." The risk of non-renewed concessions is only 9 percent of the company's generation capacity. Companhia Energetica de Minas Gerais aka Cemig -- http://www.cemig.com.br/-- is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market. Cemig's concession area extends throughout nearly 96.7% of the State of Minas Gerais, Brazil. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). * * * As reported on March 8, 2007, Moody's Investors Service assigned corporate family ratings of Ba2 on its global scale and Aa3.br on its Brazilian national scale to Companhia Energetica de Minas Gerais aka CEMIG. The rating action triggered the upgrade of CEMIG's outstanding debentures due in 2009 and 2011, and of the BRL250 million 2014 senior unsecured guaranteed debentures of its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from B1 on the global scale and to Aa3.br from Baa2.br on the Brazilian national scale, concluding the review process initiated on Aug. 8, 2006. DELPHI CORP: Moody's Lifts Rating on New 2nd Lien Loan to 'B2' -------------------------------------------------------------- Moody's Investors Service raised the rating on Delphi Corporation's revised second lien term loan to (P)B2 from (P)B3 and affirmed the company's Corporate Family Rating and Probability of Default Ratings of (P)B2, Speculative Grade Liquidity rating of SGL-2, first lien term loan rating of (P)Ba2, and stable outlook. The revision to the rating on the second lien facility follows a change in the composition of the term loans from the structure Moody's rated on March 14, 2008. The total amount of secured term loans Delphi requires to emerge from bankruptcy is unchanged at US$4.525 billion. However, the first lien term loan will be reduced to US$1.7 billion from US$3.7 billion and the second lien term loan will be increased to US$2.825 billion from US$0.825 billion as the full US$2.0 billion of what was to be the B-2 tranche of the first lien term loan has been moved to the second lien facility. The first lien term loan will continue to be split between US$1.5 billion lodged at the parent and US$0.2 billion at a European subsidiary. The previous B-2 tranche was designed as a "second out" portion of the first lien term loan, and remains junior to the US$1.7 billion of the first lien term loan. However, it will now be documented as part of an enlarged second lien term loan. An affiliate of General Motors Corporation has agreed to accept up to US$2.825 billion of the second lien term loan as part of the settlement for GM's claims. Major terms of the first lien term loan have not been altered from those of the B-1 tranche in the earlier structure. As those terms involved initial amortization of 1% per year, by moving US$2.0 billion to the second lien term loan, which does not require any scheduled amortization prior to final maturity, Delphi's annual repayment obligations post emergence will be lowered by US$20 million a year. Nonetheless, Delphi's financial leverage will not be affected by these changes nor will its expected operating performance, and key coverage metrics will not experience any material change from previous expectations. Consequently, Moody's affirmed Delphi's Corporate Family and Probability of Default ratings as well its liquidity rating and outlook. Although the amount of the first lien term loan will be reduced, its rating of (P)Ba2 is unchanged; the amounts of debt that are superior, equally ranked, or junior in the overall waterfall are unchanged. The (P)B2 rating on the increased size of the second lien term loan is one notch higher than the earlier rating and level with that of the Corporate Family Rating. This develops from a lower amount of senior debt ahead of its claims and its higher proportion of the debt capital, both of which tend to boost its expected recovery rate. Rating revised: -- US$2.825 billion second lien term loan, (P)B2, LGD-4, 52% from (P)B3, LGD-4, 65% Rating withdrawn: -- US$2.0 billion B-2 tranche of first lien term loan, (P)B2, LGD-3, 47% Delphi Corporation, headquartered in Troy, Michigan, is a global tier-1 automotive supplier with products and services addressing electrical or electronic architecture, electronics & safety, powertrain systems, thermal systems, and aftermarket product and service solutions. The company expects to have revenues from continuing operations of roughly US$20 billion and employs approximately 171,000 people at 163 manufacturing sites around the world. 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. FORD MOTOR: February 2008 Saw Focus Sales Up By 36 Percent ---------------------------------------------------------- Ford Motor Co.'s new Focus and SYNC are connecting with small car buyers. Focus retail sales were up 36% in February -- the fourth month in a row of higher retail sales. "The new Focus and SYNC arrived at an opportune time," said Jim Farley, Ford's group vice president, Marketing and Communications. "We needed to raise awareness and consideration among younger buyers � and Focus and SYNC are getting us back in the game." Buyers age 16-35 account for 32% of retail sales for the 2008 Focus, compared with 28 percent for the previous model. Focus is one of 12 Ford, Lincoln and Mercury models equipped with SYNC, an affordable, in-car connectivity technology that fully integrates most Bluetooth-enabled cell phones and MP3 players by voice activation. Retail car sales were 4% higher than a year ago paced by the Focus and the three mid-size sedans -- Ford Fusion, Mercury Milan, and Lincoln MKZ -- which combined posted a retail sales increase of 7%. The company at February continued to see higher sales in its: * Crossover utility vehicles -- 10%; * Ford Edge -- 46%; and * Lincoln MKX -- 22%. The MKZ and MKX helped Lincoln post higher retail sales in February -- up 2% -- although total sales were down 11%, reflecting lower fleet sales. Among trucks, sales for Ford's F-Series pickup totaled 52,548, off 5% from a year ago. Sales for Ford's compact pickup, the Ranger, totaled 7,431, up 27%. Sales for traditional sport utility vehicles continued to decline in February as combined sales for the Ford Explorer and Expedition, Mercury Mountaineer, and Lincoln Navigator were 22% lower than a year ago. Ford, Lincoln and Mercury sales totaled 185,294, down 7% compared with a year ago. Lower daily rental sales -- down 20% -- accounted for 60% of the decline. Total Ford Motor Company sales, including Jaguar, Land Rover, and Volvo, totaled 196,681, also down 7%. North American Production In the second quarter 2008, the company plans to produce 730,000 vehicles, a level 10% lower than a year ago when the company produced 811,000 vehicles. The reduction reflects the current economic conditions. In the first quarter 2008, the company plans to produce 685,000 vehicles, unchanged from the previously announced plan. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings of Ford Motor Company and Ford Motor Credit Company at 'B', and maintained the Rating Outlook at Negative. As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the United Auto Workers. FORD MOTOR: Jaguar and Land Rover Sale Won't Affect S&P's Rtngs. ---------------------------------------------------------------- Standard & Poor's Ratings Services said that the ratings and outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated B/Stable/B-3) were not affected by Ford's announcement of an agreement to sell its Jaguar and Land Rover units to Tata Motors Ltd. (BB+/Watch Neg/--) for US$2.3 billion (before US$600 million of pension contributions by Ford for Jaguar-Land Rover). The sale will bolster Ford's adequate liquidity. As of Dec. 31, 2007, cash and marketable securities totaled US$32.7 billion, and the company had an US$11.5 billion secured revolving credit facility with US$10.9 billion available for use. There are no financial maintenance covenants on this facility other than a borrowing-base calculation, which was not restrictive at year- end 2007. S&P sees insignificant risk in Ford's plans to temporarily provide components and technologies to Jaguar and Land Rover as well as provide financing for Jaguar and Land Rover dealers and customers for up to a year. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. HUGHES NETWORK: Net Income Rose Up 161% to US$50 Million in 2007 ---------------------------------------------------------------- Hughes Communications, Inc. reported financial results for the fourth quarter and year ended Dec. 31, 2007. The company's consolidated operations are currently classified into four reportable segments: North America VSAT; International VSAT; Telecom Systems; and Corporate and Other. The North America VSAT, International VSAT and Telecom Systems segments represent all the operations of Hughes Network Systems, LLC, Hughes' principal operating subsidiary. The company and its affiliates reported a net income of US$43.5 million on US$970.6 million of total revenues for the year ended Dec. 31, 2007, compared to 2006 where the group incurred a net loss of US$39.1 million on total revenues of US$858.6 million. The group had US$1.1 billion in total assets, US$859.1 million in total liabilities, and a stockholders' equity of US$247.4 million at Dec. 31, 2007, compared to total assets of US$912.3 million, total liabilities of US$709.4 million, and a stockholders' equity of US$198.3 million at Dec. 31, 2006. "HNS delivered strong financial results in 2007," said president and chief executive officer, Pradman Kaul. "Revenues increased by 13% over 2006 to USUS$970 million and our profitability in 2007 was also very strong. Operating Income for the year was USUS$90 million, a growth of 56% over 2006; EBITDA increased by 28% to USUS$139 million in 2007 over 2006, and Net Income increased by 161% to USUS$50 million. All of the segments showed robust growth. The major revenue growth contributors were the consumer, international and the mobile satellite markets with growth rates of 13%, 11% and 77% respectively in 2007 over 2006. The consumer base grew to 379,900 subscribers at Dec. 31, 2007, a growth of 16% over the subscriber base at Dec. 31, 2006. Our North America and International enterprise groups provided a solid revenue base contributing in aggregate over half of HNS' total revenue in 2007. I am also very pleased to report that we were awarded a record USUS$1.1 billion of new orders in 2007 representing a growth of 30% over 2006." "These impressive full-year results were a result of sustained quarterly performances, including a strong fourth quarter," continued Mr. Kaul. "We grew fourth quarter 2007 Revenues by 15%, Operating Income by 39% and Net Income by 95% over the fourth quarter of 2006. The revenue growth engines in the fourth quarter of 2007 were the consumer, international, and mobile satellite markets with growth rates of 14%, 25% and 52% respectively over the fourth quarter of 2006. We were awarded USUS$333 million of new orders in the fourth quarter of 2007, including significant orders from Camelot, State Bank of India, Best Western, Sherwin Williams, Walmart, Blockbuster, Hess, BP, Harris and Hughes Telematics." Some of the company's selected highlights: -- Hughes Network Systems, LLC accepted the in-orbit handover of the SPACEWAY(TM) 3 commercial communications satellite from Boeing. HNS will utilize the Boeing-built satellite to provide HughesNet(R) broadband satellite services throughout North America. The satellite is currently going through the system testing phase and the company expects to commence service later in the first quarter of 2008. -- Hughes Network Systems' wholly owned European subsidiary Hughes Network Systems Ltd. signed an amendment to the contract previously executed in August 2007 with U.K. lottery operator Camelot PLC for providing managed network services for over 27,000 lottery sites in the U.K. The amendment extends the contract's term to 10 years and also provides additional functionality. This brings the total value of the 10 year contract to over USUS$150 million making it the largest single order awarded to Hughes Network Systems in 2007. -- Hughes entered into a definitive agreement to acquire Helius, Inc., a portfolio company of Canopy Ventures. The acquisition will combine the skills of Helius, a recognized leader in providing business IPTV solutions for applications such as training, corporate communications and digital signage, with the extensive broadband networking experience and customer base of Hughes. Hughes plans to deploy Helius' innovative IP video technologies to enhance its existing HughesNet service offerings. -- Hughes Network Systems signed an agreement with Dow Electronics to be a distributor of HughesNet satellite broadband Internet service in the Southeastern United States, home to many consumers who are not served by high- speed landline Internet providers. Under the terms of the agreement, Dow Electronics will market primarily to retailers in Florida, Alabama, Georgia, Mississippi, Louisiana, South Carolina, North Carolina, Arkansas, Tennessee, Puerto Rico and the U.S. Virgin Islands who will sell and install the HughesNet satellite broadband access service. -- Hughes Network Systems signed an agreement with CVS Systems, Inc. to be a distributor of HughesNet satellite broadband Internet service in the Midwest and Great Lakes region of the country, home to many consumers who are not served by high-speed landline Internet providers. Under the terms of the agreement, CVS will market primarily to retailers in Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri and Ohio who will sell and install the HughesNet satellite broadband access service. Mr. Kaul said, "We are very pleased with the strong and balanced financial results that we have delivered in 2007. We are currently at an advanced stage in the in-orbit system testing of SPACEWAY 3 and we are looking forward to commencing service on SPACEWAY 3 by the end of this quarter. We expect that SPACEWAY 3 will provide us significant cost benefits and also open up new revenue opportunities going forward in the North American enterprise and consumer markets. We have a robust orders backlog coming into 2008 as a result of an outstanding new orders performance in 2007. All of these have positioned HNS very well for 2008 and beyond." Commenting on Hughes' financial performance, executive vice president and chief financial officer, Grant Barber said, "Our revenue and profitability showed strong growth in the fourth quarter of 2007. For the twelve months ended December 2007, Hughes delivered earnings per share of USUS$2.26 compared to a loss of USUS$2.43 in the same period in 2006, both on a fully diluted basis. We also generated cash from operations of USUS$93 million in 2007 and closed the year with a healthy consolidated cash and marketable securities position of USUS$151 million." About Hughes Network Systems Based in Germantown, Maryland, Hughes Network Systems LLC (NASDAQ:HUGH) -- http://www.hughes.com/-- a wholly owned subsidiary of Hughes Communications Inc., provides broadband satellite networks and services for large enterprises, governments, small businesses, and consumers. Hughes offers complete turnkey solutions, including program management, installation, training, maintenance and support-for professional and rapid deployment anywhere, worldwide. The company owns and operates a global base of HughesNet shared hub services throughout the United States, Brazil, China, Europe, and India. In Europe, Hughes maintains operations facilities and sales offices in Germany, U.K., Italy, Czech Republic, and Russia. * * * Moody's Investors Service assigned a B1 rating to Hughes Network Systems LLC's proposed US$115 million senior unsecured term loan, due 2014. In addition, the ratings agency affirmed the B1 corporate family rating, the B1 rating on the existing US$450 million senior notes due 2014 and the Ba1 rating on the US$50 million senior secured revolving credit facility. The proceeds of the new term loan will be used primarily to fund capital expenditures and for general corporate purposes. USINAS SIDERURGICAS: Earns BRL970 Million in Fourth Quarter 2007 ---------------------------------------------------------------- Usinas Siderurgicas de Minas Gerais SA a.k.a. Usiminas told Dow Jones Newswires that its net profit increased 28.9% to BRL970 million in the fourth quarter 2007, compared to BRL752 million in the fourth quarter 2006. The increase in the net profit is due to higher prices and an improved sales mix, Dow Jones notes, citing Usiminas. According to Dow Jones, Usiminas net revenue rose 6.2% to BRL3.48 billion in the fourth quarter 2007, compared to BRL3.27 billion in the fourth quarter 2006. Dow Jones relates that Usiminas' earnings before interest, taxes, depreciation and amortization increased 2.6% to BRL1.2 billion in the fourth quarter 2007, from BRL1.18 billion in the same period in 2006. Usiminas's net profit increased to BRL3.17 billion in 2007, compared to BRL2.51 billion in 2006, Dow JOnes states. Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de Minas Gerais SA is among the world's 20 largest steel manufacturing complexes, with a production capacity of approximately 10 million tons of steel. Usiminas System companies produces galvanized and non-coated flat steel products for the automotive, small and large diameter pipe, civil construction, hydro-electronic, rerolling, agriculture, and road machinery industries. Brazil consumes 80% of its products and the company's largest export markets are the US and Latin America. The company also sells in China and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local currency rating and an Aa1.br rating on its Brazilian national scale to the BRL500 million non-guaranteed subordinated debentures due 2013 to be issued by Usinas Siderurgicas de Minas Gerais S.A. (aka Usiminas). Net proceeds from the debentures issuance will be used to partially fund the company's capex program. Moody's said the rating outlook is stable. As reported in the Troubled Company Reporter-Latin America on Jan. 3, 2007, Standard & Poor's Ratings Services revised its outlook on Brazil-based steelmaker Usinas Siderurgicas de Minas Gerais S.A., aka Usiminas, to positive from stable. Standard & Poor's also it affirmed its 'BB+' local and foreign currency corporate credit ratings on Usiminas. ========================== C A Y M A N I S L A N D S ========================== BEGUISURI LIMITED: Proofs of Claim Filing Deadline is April 3 ------------------------------------------------------------- Beguisuri Limited's creditors have until April 3, 2008, to prove their claims to Buchanan 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. Beguisuri's shareholders agreed on Feb. 21, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Buchanan Limited Attn: Francine Jennings P.O. Box 1170 Grand Cayman KY1-1102, Cayman Islands Telephone: (345) 949-0355 Fax: (345) 949-0360 FDVG BALANCED: Sets Final Shareholders Meeting for April 3 ---------------------------------------------------------- FDVG Balanced Company Limited will hold its final shareholders' meeting on April 3, 2008, at 10:00 a.m., at HSBC Bank (Cayman) Limited, P.O. Box 1109, 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 five years from the dissolution of the company, after which they may be destroyed. FDVG Balanced's shareholder decided 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: Scott Aitken and Connan Hill Attn: Alex Johnston P.O. Box 1109, George Town Grand Cayman, Cayman Islands Telephone: (345) 949-7755 Fax: (345) 949-7634 HARARE SCDO: Proofs of Claim Filing Deadline is April 3 ------------------------------------------------------- Harare SCDO 2002-1 Ltd.'s creditors have until April 3, 2008, to prove their claims to Griffin Management 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. Harare SCDO's shareholders agreed on Feb. 20, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Griffin Management Limited Attn: Janeen Aljadir Caledonian Trust (Cayman) Limited Caledonian House, 69 Dr. Roy�s Drive P.O. Box 1043, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 914-4943 Fax: (345) 814-4859 JOHCM TRIDENT: Will Hold Final Shareholders Meeting on April 3 -------------------------------------------------------------- JOHCM Trident Financials Fund will hold its final shareholders' meeting on April 3, 2008. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. JOHCM Trident's shareholders agreed on Jan. 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 Richard Gordon Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands LDA HOLDINGS: Sets Final Shareholders Meeting for April 3 --------------------------------------------------------- LDA Holdings Ltd. will hold its final shareholders' meeting on April 3, 2008, at Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. LDA Holdings' shareholders agreed on Jan. 10, 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 Richard Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands ML PRINCIPAL: Will Hold Final Shareholders Meeting on April 3 ------------------------------------------------------------- ML Principal Protection Plus Ltd. will hold its final shareholders' meeting on April 3, 2008, at Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. ML Principal's shareholders agreed on Dec. 18, 2007, 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 Jan Neveril Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands MONITOR OIL: Must Talk with Creditors On Cash Collateral Use ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York advised Monitor Oil PLC and its creditors to arrive at an agreement immediately regarding Monitor's access to cash collateral -- before Monitor turns insolvent -- Tiffany Kary of Bloomberg News reports. Creditors have denied Monitor access to cash collateral of up to US$3,500,000, Ms. Kary says. On the other hand, Monitor is currently seeking approval to pay up to US$43,500,000 to its lenders owed US$80,000,000 in principal plus US$1,450,000 in interest, as reported in the Troubled Company Reporter on March 17, 2008. A hearing is set on April 4, 2008, to consider the request. Monitor's US$75,000 cash could fall down to US$53,000, Bloomberg says. Monitor's shareholder have removed all of the sitting directors and elected each of the proposed members to the board of directors, according to the company's Web site. The new directors are: -- Bjorn Q. Aaserod; -- Ole Johan Olsen; -- Odd Harald Hauge; and -- David Lynch. Mr. Aaserod was named executive chairman of Monitor. The new directors, Bloomberg relates, is seeking financing to pay bondholders and lenders. About Monitor Oil Headquartered in the Cayman Islands, Monitor Oil, Plc -- htpp://www.monitoroil.com/ -- an oil and gas service company that provides oil and gas production solutions, offshore services and engineering services. The Monitor Group has operations in London, England; Aberdeen, Scotland; Stavanger, Norway; Caldicot, Wales; Shanghai, China and New York, United States. The company and two of its affiliates, Monitor Single Lift 1, Ltd., and Monitor US FinCo, Inc., filed for Chapter 11 Protection on Nov. 21, 2007 (Bankr. S.D.N.Y. Case No. 07-13709). Eric Lopez Schnabel, Esq., at Dorsey & Whitney, L.L.P., represents the Debtor. The U.S. Trustee for Region 2 appointed five creditors to serve on an Official Committee of Unsecured Creditors in the Debtors' cases. Ira L. Herman, Esq., at Thompson & Knight, LLP, represents the Committee. As of Dec. 31, 2007, the company disclosed total assets of US$98,340,000 and total debts of US$56,125,000. NBL FUNDING: Sets Final Shareholders Meeting for April 3 -------------------------------------------------------- NBL Funding Corp. will hold its final shareholders' meeting on April 3, 2008, at Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. NBL Funding's shareholders agreed on Feb. 14, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Martin Couch and Jan Neveril Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands PALLAS SCDO: Proofs of Claim Filing Deadline is April 3 ------------------------------------------------------- Pallas SCDO 2002-1 Ltd.'s creditors have until April 3, 2008, to prove their claims to Griffin Management 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. Pallas SCDO's shareholders agreed on Feb. 20, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Griffin Management Limited Attn: Janeen Aljadir Caledonian Trust (Cayman) Limited Caledonian House, 69 Dr. Roy�s Drive P.O. Box 1043, Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 914-4943 Fax: (345) 814-4859 PATHFINDER INVESTMENTS: Proofs of Claim Filing is Until April 3 --------------------------------------------------------------- Pathfinder Investments Limited's creditors have until April 3, 2008, to prove their claims to Buchanan 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. Pathfinder Investments' shareholders agreed on Feb. 21, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Buchanan Limited Attn: Francine Jennings P.O. Box 1170 Grand Cayman KY1-1102, Cayman Islands Telephone: (345) 949-0355 Fax: (345) 949-0360 PENARTH INVESTMENTS: Proofs of Claim Filing Deadline is April 3 --------------------------------------------------------------- Penarth Investments Limited's creditors have until April 3, 2008, to prove their claims to Buchanan 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. Penarth Investments' shareholders agreed on Feb. 21, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Buchanan Limited Attn: Francine Jennings P.O. Box 1170 Grand Cayman KY1-1102, Cayman Islands Telephone: (345) 949-0355 Fax: (345) 949-0360 PETROCHEMICAL INVESTMENTS: Final Shareholders Meeting on April 3 ---------------------------------------------------------------- Petrochemical Investments Limited will hold its final shareholders' meeting on April 3, 2008, at 10:00 a.m., at Deloitte, Fourth Floor, Citrus Grove, P.O. Box 1787, 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 five years from the dissolution of the company, after which they may be destroyed. Petrochemical Investments' shareholders agreed on Feb. 22, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Stuart Sybersma Attn: Mervin Solas Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Telephone: (345) 949-7500 Fax: (345) 949-8258 SOUTH SHORE: Will Hold Final Shareholders Meeting on April 3 ------------------------------------------------------------ South Shore CLO II, Ltd., will hold its final shareholders' meeting on April 3, 2008, at Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. South Shore's shareholders agreed on Jan. 10, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Giles Kerley Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands SPARCO INVESTMENTS: Proofs of Claim Filing is Until April 3 ----------------------------------------------------------- Sparco Investments Limited's creditors have until April 3, 2008, to prove their claims to Buchanan 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. Sparco Investments' shareholders agreed on Feb. 21, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Buchanan Limited Attn: Francine Jennings P.O. Box 1170 Grand Cayman KY1-1102, Cayman Islands Telephone: (345) 949-0355 Fax: (345) 949-0360 TELEXPRESS INVESTMENTS: Final Shareholders Meeting is on April 3 ---------------------------------------------------------------- Telexpress Investments Limited will hold its final shareholders' meeting on April 3, 2008, at Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Telexpress Investments' shareholders agreed on Jan. 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: Richard Gordon and Chris Marett Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands ZEBRA CAPITAL: Sets Final Shareholders Meeting for April 3 ---------------------------------------------------------- Zebra Capital Limited will hold its final shareholders' meeting on April 3, 2008, at Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. Zebra Capital's shareholders agreed on Jan. 10, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Mora Goddard and Emile Small Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands ========= C H I L E ========= QUEBECOR WORLD: Panel Taps Kurtzman Carson as Comm. Agent --------------------------------------------------------- The Official Committee of Unsecured Creditors of Quebecor World Inc. and its affiliates seeks the U.S. Bankruptcy Court for the Southern District of New York's authority to retain Kurtzman Carson Consultants, LLC, as its communications agent, nunc pro tunc to Feb. 21, 2008. According to Madeleine Fequeire, director of Abitibi- Consolidated Sales Corp. and co-chairperson of the Committee, the Committee seeks to employ Kurtman Carson in compliance to its obligation under Section 1102(b)(3) of the Bankruptcy Code. Kurztman Carson is expected to: (a) establish and maintain an Internet-accessed Web site that provides, without limitation: (1) general information concerning the Debtors, including, case dockets, access to docket filings, and general information concerning significant parties in the cases; (2) highlights of significant events in the cases; (3) a calendar with upcoming significant events in the cases; (4) access to the claims docket as and when established by the Debtors or any claim agent retained in the cases; (5) a link to the Web site of the monitor appointed in the Debtors' Canadian proceedings; (6) a general overview of the chapter 11 process; (7) press releases (if any) issued by each of the Committee and the Debtors; (8) a non-public registration form for creditors to request "real-time" case updates via electronic mail; (9) a non-public form to submit creditor questions, comments and requests for access to information; (10) responses to creditor questions, comments and requests for access to information; provided, that the Committee may privately provide such responses in the exercise of its reasonable discretion, including in the light of the nature of the information request and the creditor's agreements to appropriate confidentiality and trading constraints; (11) answers to frequently asked questions; and (12) links to other relevant Web sites. (b) distribute case updates via electronic mail for creditors that have registered for this service on the Committee Web site; (c) establish and maintain a telephone number and electronic mail address for creditors to submit questions and comments; and (d) print and serve documents as directed by the Committee and its counsel. Kurtzman Carson is charging its normal and customary rates for its services to the Committee. The United States Trustee has agreed that Kurtzman Carson, in order to maintain its competitive rates, is not required to include its fee structure in the Committee's application. A full text copy of the KCC Agreement is available for free at: http://bankrupt.com/misc/Quebecor_KCCLLC_Agreement.pdf Sheryl Betance, director of KCC's Restructuring Services, says that her firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, and does not hold or represent any interest adverse to the Debtors' estates or of any class of creditors or equity security holders. 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. 10; 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: Seeks Authority to Assume Various Contracts ----------------------------------------------------------- Quebecor World Inc. and its affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to assume executory contracts with various entities. 1. Hell Gravure, GMBH & Co. KG The Debtors want to assume four executory contracts with Hell Gravure, GMBH & Co. KG to which the Debtors would buy certain rotogravure printing equipment and related software from Hell Gravure: (a) Quebecor Worlfd Atglen Inc. and Hell Gravure Agreement for purchase of two K6 Engravers for the Debtors' Atglen, Pennsylvania facility; (b) Quebecor World Mt. Morris II LLC and Hell Gravure Agreement for the purchase of two K6 Engravers for the Debtors' Mt. Morris, Illinois Facility; (c) QW Atglen and Hell Gravure Agreement for the purchase of two K6 Engravers for the Debtors' Franklin, Kentucky facility; and (d) A purchase order between QW Memephis Corp. and Hell Gravure for K6 upgrades to existing K406 Engravers for the Debtors' Dickson, Tennessee facility. The Debtors owe EUR1,872,938 to Hell Gravure under the contracts. The Debtors seek the Court's authority to pay its cure amounts and provide Hell Gravure with adequate assurance of future performance in accordance with Section 365 of the Bankruptcy Code. Michael Canning, Esq., at Arnold & Porter LLP, in New York, says that assumption of the contracts is critical to the Debtors' business. 2. Maschinenfabrik K. Walter GMBH & Co. KG The Debtors seek the Court's authority to assume two contracts with Maschinenfabrik K. Walter GMBH & Co. KG for the purchase of copper tanks used to plate the cylinders used in the rotogravure printing process. Quebecor World Nevada Inc. entered into an Equipment Purchase Agreement with K. Walter dated Sept. 3, 2007, for the purchase of one copper tank for the Debtors' Fernley, Nevada facility, and Quebecor World Atglen, Inc. entered into an Equipment Purchase Agreement with K. Walter dated Sept. 19, 2007, for the purchase of one copper tank for the Debtors' Franklin, Kentucky facility. The Debtors also ask Judge James M. Peck's permission to pay a US$240,000 cure amount on account of the equipment for the Fernley plant. The Debtors will provide K. Walter with adequate assurance of future performance. Mr. Canning says the Cylinder Plating Equipment is necessary to the Debtors' business, and the favorable terms of the Agreements make it a valuable asset of the Debtors' bankruptcy estates. 3. SIM Products Inc. Debtor Quebecor World Logistics Inc. and SIM Products Inc. entered into a contract, wherein the Debtor would purchase six 30-Pocket Co-Mailing Systems from SIM. Co-Mailers are used by the Debtors in connection with their direct mail business. A 30-Pocket Co-Mailer system consists of software and equipment capable of integrating subscriber lists from up to 30 different publishers and then bundling the related publications according to mail carrier routes and postal ZIP codes established by the U.S. Postal Service, so that magazines, catalogs and other materials published by multiple customers that are destined for the same geographic area are grouped together prior to delivery to the Postal Service. As of March 10, 2008, the Debtors have made down payments and installment payments totaling 39% of the total purchase price. The unpaid prepetition amount currently due and owing on account of the Co-Mailers is US$541,965, which is the amount that would be required to cure the Debtors' defaults under the Agreement pursuant to Section 365(b) of the Bankruptcy Code. The Debtors ask Judge Peck for permission to assume the contract, pay the Cure Amount to cure existing defaults, and provide SIM with adequate assurance of future performance. The Co-Mailers are necessary to the Debtors' business, and the favorable terms of the Agreement make it a valuable asset of the Debtors' bankruptcy estates, Mr. Canning says. 4. Goss International Americas Inc. Debtor Quebecor World Waukee Inc. and Goss International Americas Inc. entered into a contract, wherein Waukee would purchase a Universal 45 Four-High Tower Add-On with related equipment from Goss. According to Mr. Canning, the Tower would be added as an additional tower to an existing Goss Universal 45 press at the Debtors' facility in Waukee, Iowa. The Goss U45 Press is used primarily in the Debtors' telephone directory business. The Tower would provide additional page and color capability to the existing Goss U45 Press. "Increasing the range of page and color capability that the Debtors are able to offer to their customers will substantially increase their ability to generate revenue in the telephone directory business," Mr. Canning says. Mr. Canning relates that beginning mid-April 2008, the Waukee facility will lose a substantial amount of earnings each week the Tower is not operational, as it will have to outsource a substantial amount of work produced on the Goss U45 Press. Installation of the Tower was scheduled for March-April because the facility is less busy during this time and could more easily afford to take the Goss U45 Press offline for the time it will take to complete the installation and testing for the Tower. As of March 10, 2008, the Tower has been manufactured and shipped to Waukee, and Goss has represented to the Debtors that it is prepared to begin installation of the Tower immediately following assumption of the Agreement, Mr. Canning says. As of March 10, 2008, the Debtors have made down payments and installment payments totaling 45% of the total purchase price. The unpaid amount currently due and owing on account of the Tower is US$705,458, which is the amount that would be required to cure the Debtors' defaults under the Agreement pursuant to Section 365(b) of the Bankruptcy Code. The Debtors seek the Court's authority to assume the Agreement, pay the Cure Amount to cure existing defaults, and provide Goss with adequate assurance of future performance. Mr. Canning relates that the Tower is necessary to the Debtors' telephone directory business and will allow the Debtors to avoid outsourcing work related to that line of business. "Moreover, because the Debtors have already installed the Goss U45 Press at their Waukee facility, Goss is the only manufacturer that produces a tower add-on that is compatible with the Debtors' existing equipment." 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. 10; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in- Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Wants to Pay US$3,175,111 Sales Commissions ----------------------------------------------------------- Quebecor World Inc. and its affiliates seek the U.S. Bankruptcy Court for the Southern District of New York's authority to pay prepetition sales commissions currently owing to 108 sales representatives. Of these 108 sales representatives, 107 are owed accrued prepetition commissions by no later than March 31, 2008. The other employee is owed US$15,000 for meeting specific sales and budget attainment goals in 2007. This payment was due at the end of January 2007, and the Debtors seek authority to pay this employee for successfully achieving the target sales goal. The total amount of the sales commissions due to these 108 individuals is US$3,175,111. Of this amount, US$2,224,373 reflects amounts in excess of US$10,950 per employee, with the proposed prepetition payments per employee ranging from US$142 to US$251,441. Michael Canning, Esq., at Arnold & Porter LLP, in New York, notes that along with the sales commissions due in March, there are certain prepetition commission obligations that have not yet been fully resolved. Mr. Canning says the Debtors reserve the right to file a motion to seek the Court's authority to pay additional prepetition sales commissions, which the Debtors currently estimate to be approximately US$550,000. First Motion to Pay Prepetition Commissions As reported in the Troubled Company Reporter on Feb. 26, 2008, the Court gave the Debtors permission to pay accrued prepetition commissions due and owing as of Feb. 1, 2008, to their sales representatives. The TCR said on Feb. 19, 2008, Mr. Canning related that the Debtors' sales representatives are located in plants or in regional offices throughout North America, Europe and Latin America, and customers are able to coordinate simultaneous printing throughout the Debtors' network through a single sales representative. Mr. Canning said that the Debtors owe 59 sale representatives, as of Feb. 1, US$1,792,993. Of this amount, US$1,234,641 reflects amounts in excess of US$10,950 per employee, with the proposed prepetition payments per employee ranging from US$933 to US$117,868. The Debtors intends to provide the Office of the United States Trustee and counsel to the Official Committee of Unsecured Creditors a schedule showing for each employee scheduled to receive sales commissions on Feb. 1, 2008, the amount of payment and the amount of additional compensation previously received by the employee on account of 2007. 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. 10; 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. =============== C O L O M B I A =============== ECOPETROL: Wants to List Shares on New York Stock Exchange ---------------------------------------------------------- Ecopetrol President Javier Gutierrez told Reuters that the company wants to list its shares on the New York Stock Exchange in the second half of this year. According to Reuters, Ecopetrol sold 10.1% of its stake for US$2.8 billion to Colombian investors last year, the first time that the firm opened itself to private investment. Ecopetrol told Reuters that proceeds from the privatization are being invested in the company as it tries to revitalize the oil sector. 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. PACIFICNET INC: Files Involuntary Bankruptcy in Delaware Court -------------------------------------------------------------- PacificNet, Inc. disclosed that three holders of the company's convertible subordinated debentures filed an involuntary petition for Chapter 11 relief in federal bankruptcy court on March 22, 2008, in Wilmington, Delaware. The company has retained counsel to oppose the filing because the petition fails to meet the standard for invoking an involuntary bankruptcy and fails to take into consideration other binding agreements between the company and the petitioning creditors that control the relationships between them. The company intends to vigorously opposethe petition and move for dismissal of the filing, and if successful will seek damages and attorneys fees. "PacificNet intends to take all appropriate actions and remedies regarding the involuntary petition," said Chief Executive Officer, Tony Tong. "We are working very hard with the advice of counsel to resolve this issue as soon as possible. We regret the action taken by these bondholders, however, we must be sure that any settlement reached is fair to all parties involved, including our shareholders. In the meantime, we will continue to operate as usual with no changes to our day-to-day operations. " PacificNet, Inc. (Nasdaq: PACT) is a provider of gaming and mobile game technology worldwide. Through its gaming subsidiaries including PactGames, Take1 Technologies and Octavian International, PacificNet offers solutions in casino equipment supply and the development, installation and support of systems and game content for the casino, lottery and AWP markets. The company employs around 1,800 staff in its various subsidiaries with offices in Argentina, Australia, China, Colombia, Germany, Hong Kong, India, Italy, Russia, Ukraine, U.K. and the U.S. * * * As reported in the Troubled Company Reporter on March 19, 2008, Los Angeles-based Kabani & Company, Inc., raised substantial doubt about the ability of PacificNet, Inc., to continue as a going concern after it audited the company's financial statements, as restated, for the year ended Dec. 31, 2006. The auditor pointed out that the company incurred net losses, had a negative cash flow in operating activities amounting to negative US$8,190,000 in the year ended Dec. 31, 2006, and the company's accumulated deficit was US$51,090,000 as of Dec. 31, 2006. In addition, the company is in default on its convertible debenture obligation. SOLUTIA INC: Harbinger Capital, et al., Hold 30.1% Stake -------------------------------------------------------- A joint Schedule 13D have been filed in the U.S. Securities and Exchange Commission by: * Harbinger Capital Partners Master Fund I, Ltd. -- Master Fund; * Harbinger Capital Partners Offshore Manager, L.L.C. -- Harbinger Management -- the investment manager of the Master Fund; * HMC Investors, L.L.C., Harbinger Management's managing member -- HMC Investors; * Harbinger Capital Partners Special Situations Fund, L.P. -- Special Fund; * Harbinger Capital Partners Special Situations GP, LLC -- HCPSS -- the general partner of the Special Fund; * HMC - New York, Inc. -- HMCNY -- the managing member of HCPSS; * Harbert Management Corporation -- HMC -- the managing member of HMC Investors and the parent of HMCNY; * Philip Falcone, a shareholder of HMC and the portfolio manager of the Master Fund and the Special Fund; * Raymond J. Harbert , a shareholder of HMC; and * Michael D. Luce, a shareholder of HMC. As of March 11, 2008, 59,943,092 shares of new common stock are outstanding -- based on the 59,750,000 shares Solutia Inc. reported outstanding and issued as the company's emergence, adjusted for warrants held by HMC, et al. William R. Lucas, Jr., on behalf of the Entities, discloses that as of March 11, they may be deemed to beneficially own these number of Shares: Party Shares Owned % of Shares ----- ------------ ----------- Master Fund 12,032,149 20.1% Harbinger Management 12,032,149 20.1% HMC Investors 12,032,149 20.1% Special Fund 6,026,461 10.1% HCPSS 6,026,461 10.1% HMCNY 6,026,461 10.1% HMC 18,058,610 30.1% Mr. Falcone 18,058,610 30.1% Mr. Harbert 18,058,610 30.1% Mr. Luce 18,058,610 30.1% No borrowed funds were used to purchase the Shares, other than any borrowed funds used for working capital purposes in the ordinary course of business, according to Mr. Lucas. He states that the Reporting Persons have acquired their Shares for investment and they reserve their rights. Mr. Lucas says that each the Reporting Persons has: -- the sole power to vote or direct the vote of zero Shares; -- the shared power to vote or direct the vote corresponding to the number of Shares they own; -- has the sole power to dispose or direct the disposition of zero Shares; and -- shared power to dispose or direct the disposition of Shares corresponding to the number of Shares they own. The Reporting Persons, with the exception of Master Fund, specifically disclaim beneficial ownership in the Shares reported except to the extent of their pecuniary interest in the Shares. In a Form 3 filing with SEC, Master Fund discloses that: -- it directly owns 193,092 warrants to purchase shares of common stock with a conversion or exercise price of US$29.70; and -- it indirectly owns 193,092 warrants with a conversion or exercise price of US$29.7. These securities may be deemed to be beneficially owned by Harbinger Management, HMC Investors, HMC, and Messrs. Falcone, Harbert and Luce. Each disclaims beneficial ownership of the securities reported except to the extent to his or its pecuniary interest in these. 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. S&P said 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: Settlement with GE Betz Gets Court Approval -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved a stipulation between Solutia Inc. and GE Betz Inc., under which both companies agree that: -- Claim No. 14845 will amend and supersede Claim No. 5640; -- GE Betz may exercise its right of setoff. GE Betz withdraws the secured claim of US$124,545; and -- GE Betz will retain an allowed general unsecured claim of US$255,575. As reported in the Troubled Company Reporter on March 6, 2008, GE Betz filed Claim No. 5640 on Nov. 22, 2004, alleging a total claim of US$406,006, of which US$124,545 was secured by a right of offset. On Feb. 4, 2008, GE Betz filed Claim No. 14845 for US$380,119, of which US$124,545 is secured by a right of offset. Claim No. 14845 is intended to amend and supersede Claim No. 5640. 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. S&P said 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: Several Parties Disclose Ownership of Firm Shares -------------------------------------------------------------- These parties disclosed in regulatory filings with the Securities and Exchange Commission their ownership of Reorganized Solutia Inc. securities: Non-Derivative Derivative Securities Securities Entity Acquired Owned Acquired Owned ------ -------- ----- -------- ----- Jeffry N. Quinn 20,000 20,115 - - President, Chief 10,000 30,115 Executive Officer & Chairman Timothy J. Spihlman 800 24,800 - - Vice President & 100 24,900 Corporate 100 25,000 Controller James M. Sullivan 2,000 63,895 - - Senior Vice 2,000 65,895 President, Chief 1,000 66,895 Financial Officer 4,000 70,895 & Treasurer Luc de Temmerman 300 300 - - Senior Vice President 100 400 & President Perf. 2,100 2,500 Products James R. Voss 100 40,100 - - Senior Vice 100 40,200 President & 200 40,400 President 400 40,800 Flexsys 400 41,200 600 41,800 700 42,500 Hal E. Wallach, 500 500 - - Jr. 300 800 Senior Vice 200 1,000 President - 100 1,100 Human Resources 200 1,300 2,700 4,000 2,000 6,000 Mr. Quinn indirectly owns the securities -- 20,000 at US$13.2066, and 10,000 at US$9.95 -- for the Jeffry N. Quinn Trust. Mr. Spihlman acquired the shares at prices ranging from US$11.26 to US$11.40. Mr. Sullivan acquired the securities at prices ranging from $11 to US$13.45. Mr. Temmerman acquired the securities at prices ranging from US$11.33 to US$11.37. Mr. Voss directly owns the securities. The securities' prices range from US$13.47 to US$13.66. Mr. Wallach acquired the shares at prices ranging from US$10 to US$14.11. 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. S&P said the outlook is stable. S&P also affirmed its 'B+' rating and '3' recovery rating on Solutia's proposed senior secured term loan. In addition, S&P assigned its 'B-' rating to Solutia's US$400 million unsecured bridge loan facility. S&P also withdrew its 'B-' rating on the proposed US$400 million unsecured notes, which have been replaced by the bridge facility in Solutia's capital structure. ================== C O S T A R I C A ================== HERBALIFE LTD: Seven Summits Issues PriceWatch Alerts ----------------------------------------------------- Seven Summits Research issues PriceWatch Alerts for key stocks. Seven Summits Strategic Investments' PriceWatch Alerts are available at http://www.iotogo.com/s/032608A. The PriceWatch Alerts cover these stocks: * First Solar, Inc. (Nasdaq: FSLR), * Morgan Stanley (NYSE: MS), * ConocoPhillips (NYSE: COP), * Jabil Circuit Inc. (NYSE: JBL), and * Herbalife Ltd. (NYSE: HLF). Along with Seven Summits PriceWatch Alerts, these brief reports contain a concise market overview, economic calendar and Dynamic Market Opportunities. PriceWatch Alerts include hedged trade ideas designed to potentially protect investors from unexpected market shifts. While other market reports only provide stock news, Seven Summits offer strategies that hedge investments against uncertainty. Hedged trades increase chances of making a profit, even if a stock goes down. "Our PriceWatch Alerts go beyond other market reports. Along with a brief concise market overview, each PriceWatch Alert provides useful strategies, which ensure potential investments are protected with basic hedging techniques," says Seven Summits Senior Analyst, Reid Stratton. "This brief report contains information that can benefit expert and novice investors who want to stay ahead of the market." For essential information on stocks poised to move go to: http://www.iotogo.com/s/032608Afor Seven Summits Strategic Investments' PriceWatch Alerts. About Seven Summits Investment Research Seven Summits Investment Research -- http://www.SevenSummitsInvestmentResearch.com-- is an independent investment research group, which focuses on the U.S. equities and options markets. The company's analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help its clients make the best possible investment decisions. About Herbalife Ltd. Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- is a global network marketing company that sells weight management, nutritional supplement, energy & fitness products and personal care products through a network of over 1.7 million independent distributors where the company currently sells the products through retail stores and an employed sales force. The company reports in the U.S., Canada, Jamaica, Mexico, Costa Rica, El Salvador, Panama, the Dominican Republic, Brazil, Europe, Africa, New Zealand and Australia, among others. Herbalife was founded in 1980 and is based in Grand Cayman, Cayman Islands. * * * As reported in the Troubled Company Reporter on April 5, 2007, Standard & Poor's Ratings Services said that its 'BB+' corporate credit rating on Herbalife Ltd. remains on CreditWatch with negative implications following the company's announcement that the company's board of directors has rejected a bid to be acquired by Whitney V L.P. The board indicated that although it views Whitney's bid as too low, it would consider an improved offer. SIRVA INC: Committee Requests to Hire TRN as Investment Banker -------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sirva Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for authority to retain Trenwith Securities, LLC, as its investment banker, nunc pro tunc to Feb. 23, 2008. According to the Committee, TRN has extensive familiarity with investment banking, valuation, and corporate finance in insolvency matters. The Committee adds that TRN has indicated a willingness to act as investment banker on the Committee's behalf. As investment banker, TRN will: (a) analyze the Debtors' business, operations, and financial position in light of potential transactions related to the sale of securities or assets; (b) evaluate proposals from potential investors or purchasers of securities or assets; (c) advise the Committee on strategy and tactics for discussion and negotiations relating to valuation of securities, assets, and other transactions; (d) recommend and analyze the "highest and best" alternatives for the Committee; and (e) support the Committee in other matters it may request. TRN will be paid on an hourly basis, and will be reimbursed of actual, necessary expenses and other charges incurred. Its standard hourly rates are: Position Hourly Rate -------- ----------- Managing Directors US$600 - US$675 Principals US$300 - US$600 Vice-Presidents US$225 - US$375 Associates US$175 - US$275 Staff US$125 - US$200 Jeffrey R. Manning, a managing director at TRN, assures the Court that his firm does not hold any interest adverse to the Debtors, their estates, their creditors, and the Committee. TRN is a "disinterested person" as that term is applied in Section 101(14) of the Bankruptcy Code. 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. 10; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000) ================= G U A T E M A L A ================= ABITIBIBOWATER: Affiliate Prices US$413MM Offering of Sr. Notes --------------------------------------------------------------- AbitibiBowater Inc.'s subsidiary, Abitibi-Consolidated Company of Canada, priced a private offering of US$413 million aggregate principal amount of 13.75% senior secured notes due April 1, 2011. The notes were sold to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons in reliance on Regulation S under the Securities Act. The notes have not been registered under the Securities Act or any state securities laws. ACCC also priced a US$400 million 364-day senior secured term loan with a coupon of LIBOR + 800 basis points, with a 3.5% LIBOR floor, at a price of 96% of par. The closing of both transactions is expected to occur on or about April 1, 2008, subject to the concurrent closing of both transactions and two other transactions. All four transactions are subject to the satisfaction of various closing conditions, including the receipt of various third-party approvals. The net proceeds from all four transactions will be used as part of the overall refinancing plan for the company's Abitibi- Consolidated Inc. subsidiary, which is intended to address upcoming debt maturities and general liquidity needs. About AbitibiBowater Headquartered in Dallas, Texas, Affiliated Computer Services Inc. (NYSE:ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology services to commercial and government clients. The company has two segments based on the clients it serves: commercial and government. The company provides services to a variety of clients including healthcare providers and payers, manufacturers, retailers, wholesale distributors, utilities, entertainment companies, higher education institutions, financial institutions, insurance and transportation companies. The company has operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. TECO ENERGY: Fitch Raises Issuer Default Rating From 'BB+' ---------------------------------------------------------- Fitch upgrades the Issuer Default Rating and senior unsecured debt ratings of TECO Energy, Inc. to 'BBB-' from 'BB+'. In addition, Fitch has removed TECO and its subsidiary, Tampa Electric Company from Rating Watch Positive. The Rating Outlook is Stable. Fitch affirms the IDR of Tampa Electric at 'BBB'. Approximately US$3.2 billion of debt is affected by this rating actions. Fitch's upgrade of TECO reflects the leverage reduction resulting from pay-down of parent debt using a portion of the proceeds from the US$405 million sale of the barge operations and earlier debt reduction efforts. TECO reduced parent and parent guaranteed debt by US$765 million in 2007. Fitch expects TECO's FFO coverage ratio to be approximately 3.8 times and a FFO to debt ratio of approximately 19% in 2008, which are consistent with guidelines for the new rating level. In addition, TECO has reduced business risk over the past few years through sales of certain non-regulated operations and a focus on Florida utility operations. TECO's liquidity position is considered strong. Cash and cash equivalents were US$162.6 million and available credit facilities were US$640.5 million at year-end 2007. Liquidity is enhanced by US$508 million of net operating losses tax carry- forwards as of Dec. 31, 2007, which is expected to result in minimal cash tax payments through 2010. In addition, there was approximately US$197 million of alternate minimum tax carry forwards at Dec. 31, 2007. There is no long-term debt maturing at the parent holding company in 2008 or 2009 and TECO has extended the average life of its debt through refinancing efforts. TECO's ratings are supported by upstream dividends from regulated utilities in Florida and profitable coal mining and Guatemala power investments. Primary credit concerns are increasing operating costs at the utilities, a weak Florida housing market and slowing state economy that are expected to contribute to more moderate growth of energy sales, and increasing capital spending for new gas-fired generation capacity and other investments. In addition, Fitch is concerned that higher risk TECO Coal and Guatemala operations may begin to contribute a greater proportion of consolidated cash flow. The ratings of Tampa Electric were affirmed. Credit metrics are expected to remain consistent with the current rating for the next few years assuming the State regulatory environment continues to be supportive and the parent company invests equity in the utility. In 2008, Tampa Electric is expected to file for its first base rate increase since 1992 as it continues to invest to meet system growth and reliability needs. Credit concerns include an increasing reliance on gas-fired generating capacity over the next five years, more stringent environmental regulations, slower kilowatt hour sales growth and the need for base rate relief to earn allowed rates of return. Fitch has upgraded these ratings and assigned a Stable Rating Outlook: TECO Energy, Inc. -- IDR to 'BBB-' from 'BB+'; -- Senior unsecured to 'BBB-' from 'BB+'. TECO Finance -- IDR to 'BBB-' from 'BB+'; -- Senior unsecured to 'BBB-'from 'BB+'. Fitch affirmed these ratings and assigned a Stable Rating Outlook. Tampa Electric Company -- IDR at 'BBB'; -- Senior unsecured at 'BBB+'; -- Short-term rating at 'F2' -- Commercial paper at 'F2'. Headquartered in Tampa, Florida, TECO Energy Inc. (NYSE:TE) -- http://www.tecoenergy.com/-- is an integrated energy-related holding company with regulated utility businesses, complemented by a family of unregulated businesses. Its principal subsidiary, Tampa Electric Company, is a regulated utility with both electric and gas divisions (Tampa Electric and Peoples Gas System). Other subsidiaries are engaged in waterborne transportation, coal and synthetic fuel production and electric generation and distribution in Guatemala. =========== M E X I C O =========== CLEAR CHANNEL: Get Temporary Restraining Order Against Banks ------------------------------------------------------------ District Court Judge John D. Gabriel of Bexar County, Texas, on Wednesday night, awarded a Temporary Restraining Order in favor of Clear Channel Communications Inc. The company had sued the banks that committed to financing the debt connected to their US$26 billion merger for tortious interference on March 26, 2008. Judge Gabriel ordered that the banks, among other things, must not �interfere with or thwart consummation of the Merger Agreement� by: 1) refusing to fund the Merger transaction, 2) insisting on terms that are inconsistent with the Commitment Letter, or 3) refusing to act in good faith in the drafting of definitive loan documents. In a statement released on their website, Clear Channels said that with the ruling, �the banks and the purchasers will now be able to move quickly to complete the loan documents and fund the merger.� About Clear Channel Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in mobile and on-demand entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside the United States, the company has operations in France, Italy, Spain and the United Kingdom, as well as Australia, China and Mexico. CLEAR CHANNEL: Fitch Says Ratings Hold if Going-Private Fails ------------------------------------------------------------- In line with previous guidance, Fitch Ratings stated that Clear Channel Communications 'BB-' Issuer Default Rating and Senior Unsecured Ratings would remain in place if the going-private transaction is not completed. Fitch originally downgraded Clear Channel's ratings to 'BB-' from 'BBB-' on Nov. 16, 2006 after the company announced it had executed a definitive merger agreement with a private equity group to be acquired for over US$26 billion. At that time, Fitch stated that the consummation of the going-private transaction would likely result in lower ratings, but that any cancellation of the merger would not result in any upward movement of the 'BB-' ratings, as management demonstrated a tolerance for greater leverage. Clear Channel has significant debt maturities coming due over the next three years, including its bank facility. Fitch believes the risk of financial policy revisions must be properly reflected in the ratings on any future market transactions that may be used to re-finance these maturities. Executive management employment agreements extend into 2014. Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in mobile and on-demand entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside the United States, the company has operations in France, Italy, Spain and the United Kingdom, as well as Australia, China and Mexico. CLEAR CHANNEL: Might Face Ad Sector Woes Alone, Report Says ----------------------------------------------------------- Clear Channel Communication Inc. faces another potential struggle aside from facing a possible collapse of its sale to Thomas H. Lee Partners LP and Bain Capital Partners LLC, according to Sarah McBride of The Wall Street Journal. The report said the company stands to go alone in "a faltering radio industry." As reported by the Troubled Company Reporter on March 26, 2008, the privatization of Clear Channel appeared in danger of collapsing after the backers failed to reach agreement on the final financing of the transaction. The TCR also reported that the buyers filed complaints in New York state court in Manhattan and in Bexar County, Texas to force the financiers to keep a promise to fund the deal in May 2007. Clear Channel joined the suit in Texas. WSJ said, "If the deal isn't completed, Clear Channel will be back to square one in a business that has declined sharply during the months it has chased the sale." The advertising sector is suffering in general and radio advertising in particular, the report noted. Some of Clear Channel's radio operations have suffered while the sale is pending. At the time of the proposed sale, the company owned 1,150 stations. The number is now down to about 1,000, the report said. Clear Channel could depend on its promising billboard advertising to perform well, but worries remain that broader economic woes might drag down the sector, according to the report. The report supported the idea posited by Bear Stearns analyst Victor Miller to separate its slower-growing radio business from the more promising billboard category to restore some confidence and boost shares. Mr. Miller also suggested the company could sell its international outdoor business, the report said. What the report sees as the bright side at Channel Communication is the company's lower debt than most similar companies -- which was noted by Bernstein Research analyst Michael Nathanson. Clear Channel has a ratio for debt-to-EBITDA of 2.6 for 2008. Clear Channel had anticipated closing the merger agreement it entered into in May 2007 by 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. If the deal is not pushed through, Channel Communications would get a breakup fee of US$500 million to US$600 million, and it wouldn't have to sell six radio stations as required under the privatization. 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. Restraining Order Issued Against Sale Financiers The recent WSJ report stated that on Thursday, a judge in Texas issued a restraining order forbidding the banks from refusing to fund the merger. Later in the day, the banks filed a notice to try to move the suit to federal court, the report stated. 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. CLEAR CHANNEL: Moody's Says Ratings Remain Under Review ------------------------------------------------------- On March 26, 2008, Clear Channel Communications, Inc. and affiliates of the Thomas H. Lee Partners, L.P. and Bain Capital Partners, LLC, filed a lawsuit against the banks who had committed to financing the debt in connection with their US$26 billion merger. Subsequently, a Texas judge issued a restraining order in favor of Clear Channel. The company's ratings remain under review for possible downgrade pending closing of the acquisition. Moody's will continue to monitor developments in order to assess the likelihood that the transaction will close. If the buyout is completed, the company's pro-forma leverage is expected to increase substantially and the post-acquisition company will have significantly weaker credit metrics. Assuming the transaction is completed as currently contemplated, Clear Channel will likely be assigned a Corporate Family Rating of B2 and the rating on the existing senior notes is likely to be notched down to Caa1 based on their expected subordination to the new senior secured debt facilities and the new senior notes. In the event the proposed leveraged buyout does not close, Clear Channel's ratings still have a high probability of being downgraded to speculative grade based on the company's now demonstrated predilection for shareholder friendly behavior. If the buyout does not close, the review will focus on the company's business strategy and financial policy including management's tolerance for financial risk. Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in mobile and on-demand entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside the United States, the company has operations in France, Italy, Spain and the United Kingdom, as well as Australia, China and Mexico. GLENSHAW GLASS: Changes Name to Kelman Bottles ---------------------------------------------- Kelman Bottles LLC is the new name of the former Glenshaw Glass Company and officially begins a new chapter of glassmaking in Pittsburgh. Kelman Bottles occupies 100,000 square feet in the former Glenshaw plant along Route 8 in Glenshaw, Pennsylvania. The company produces 3 colors of glass -- amber, flint and green. Glassmaking was one of Pittsburgh's earliest industries. By 1870, there were over sixty factories in the region producing half of the nation's glass supply. In the past 50 years, foreign competition has forced many domestic glass companies to close. Kelman Bottles is committed to reversing the trend. There is significant demand for glass containers from buyers ranging from the largest breweries and wineries to local, independent producers. According to owner William Kelman "Demand is coming from the food and beverage industries which have seen a number of glass producers cease operations in recent years. The glass companies remaining are benefiting from the reduced number of domestic suppliers." Creation of 120 Jobs Kelman Bottles currently produces 220 tons of glass per day and employs more than 100 people. Immediate plans are to restore two additional furnaces, which would create another 120 jobs in the community. A major reason for Kelman Bottles' willingness to invest in Western Pennsylvania is the experience, skill and dedication of the employees. Many of the company's employees have more than thirty years of glass industry experience. Kelman Bottles plays an important role in the environmental movement in the community by recycling glass. Currently only 25% of glass bottles are recycled in Pennsylvania compared to over 80% in Europe and Canada. "A key to our success will be the use of recycled glass. You will see us working to reduce the glass that goes into landfills. Our hope is that we can help Pennsylvania not only match the recycling rates in Europe but exceed them," Mr. Kelman states. As an independent glass company in an industry dominated by a small number of major players, Kelman Bottles is comfortable in its role as a niche supplier. "Having acquired a shuttered glass plant, our initial focus was to bring in orders and get the plant making bottles again. Our team has been successful in doing both. Our mission going forward is simple -- "We aim to be the best - not the biggest." About Glenshaw Glass/Kelman Bottles Allison Park, Pennsylvania-based GGC LLC, aka Glenshaw Glass Company faced an involuntary chapter 7 petition on Feb. 1, 2005 (Bankr. W.D. Penn. Case No. 05-21071) by TIN Inc., d/b/a Temple- Inland, Pro-Tec Partitons Inc., and Terlyn Industries Ltd. Judge M. Bruce McCullough presides the case. David K. Rudov, Esq., at Rudov & Stein represents the petitioning creditors who have an aggregate claim of more than US$1 million. Pittsburgh Business Times reported on March 20, 2008, that Glenshaw Glass Company was liquidated under chapter 11 of the U.S. Bankruptcy Code in 2006. Now known as Kelman Bottles -- http://kelmanbottles.com/-- the company produces glass containers for the food and beverage industry in the US, Canada and Mexico. MOVIE GALLERY: Court Extends Lease Decision Period to May 13 ------------------------------------------------------------ The Honorable Douglas O. Tice of the U.S. Bankruptcy Court for the Eastern District of Virginia extended the period by which Movie Gallery Inc. and its debtor-affiliates must assume or reject leases, through and including May 13, 2008. The Court clarified that the Order is be without prejudice to the rights of: -- the Debtors to request and obtain further related extensions; -- parties-in-interest to oppose the Debtors' requests for extension, or their rejection or assumption of any Lease; and -- any party to seek to compel the Debtors to assume or reject any Leases. Judge Tice ruled that the extension does not apply to the Lease located at 6301 Troost, in Kansas City, Missouri, which terminated by its own terms on Dec. 31, 2007. About Movie Gallery Based in Dothan, Alabama, Movie Gallery Inc. -- http://www.moviegallery.com/-- is a home entertainment specialty retailer. It operates over 4,600 stores in the United States, Canada, and Mexico under the Movie Gallery, Hollywood Entertainment, Game Crazy, and VHQ banners. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq., at Kutak Rock LLP, is the Debtors' local counsel. The Debtors' claims & balloting agent is Kutzman Carson Consultants LLC. When the Debtors' filed for protection from their creditors, they listed total assets of US$891,993,000 and total liabilities of US$1,419,215,000. The Official Committee of Unsecured Creditors has selected Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B. Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl & Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at Miles & Stockbridge PC, as its local counsel. The Debtors' spokeswoman Meaghan Repko said that the company does not expect to exit bankruptcy protection before the second quarter of 2008. The Debtors have until June 13, 2008 to file their plan of reorganization. (Movie Gallery Bankruptcy News Issue No. 22; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) MOVIE GALLERY: SyWest Opposes Lease Assignment to WaMu ------------------------------------------------------ SyWest Development asks the U.S. Bankruptcy Court for the Eastern District of Virginia to deny Movie Gallery Inc. and its debtor-affiliates' request to assume and assign a lease to Washington Mutual. SyWest Development and the Debtors are parties to a non- residential real property lease agreement dated Oct. 8, 1996, involving Fruitvale Station Shopping Center located in Oakland, California, where the Debtors operate one of their stores. SyWest contends that the Debtors' proposal to assume and assign the Oakland Lease to Washington Mutual Bank for use as a bank branch: * violates the use provision of the Lease and an exclusivity provision in favor of Bank of the West, another tenant in the center; and * must provide all adequate assurance information under Section 365(b) of the Bankruptcy Code. Pursuant to the Phase 2 Auction procedures, an executed Sale Agreement constitutes a sale free and clear of any interest including, without limitation, any liens, claims or encumbrances or other interests on or in the Phase 2 Leases that are subject to Sale Agreements. A Designation Rights Agreement will entitle good-faith purchasers with adequate protections. Charles W. Chotvacs, Esq., at Ballard Spahr Andrews & Ingersoll, LLP, in Washington, D.C., contends that shopping center leases will often "contain complementary restrictive use provisions . . . [where] . . . various tenants are bound to provide a complementary and diverse array of products and services which together will attract a large number of customers to the shopping center." According to Mr. Chotvacs, the Debtors' proposed lease assignment violates the provisions of the Lease and the Bank of West Lease under Section(b)(3) of the Bankruptcy Code which requires that "any attempt to assume and assign a lease will be subject to the terms of the lease, including provisions concerning use, exclusivity and tenant mix and balance." "The word 'mix' implies that issues will focus on the inclusion or exclusion of a store in the array or mix of mall stores; and 'balance' implies issues focusing on the location and relationship of tenants in [it]," Mr. Chotvacs states, pointing the Court to In re Federated Dept. Stores, Inc., 135 B.R. 941, 943 (Bankr. S.D.Ohio 1991). In effect, Mr. Chotvacs continues, the proposed use of the Premises as a bank will adversely affect the Landlord's merchandising plans for the Center. Additionally, the Debtors' proposed assumption and assignment of the Lease to Washington Mutual places the Landlord in breach of the Bank of the West Lease and can subject Sywest to significant damages and legal fees, Mr. Chotvacs says. About Movie Gallery Based in Dothan, Alabama, Movie Gallery Inc. -- http://www.moviegallery.com/-- is a home entertainment specialty retailer. It operates over 4,600 stores in the United States, Canada, and Mexico under the Movie Gallery, Hollywood Entertainment, Game Crazy, and VHQ banners. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq., at Kutak Rock LLP, is the Debtors' local counsel. The Debtors' claims & balloting agent is Kutzman Carson Consultants LLC. When the Debtors' filed for protection from their creditors, they listed total assets of US$891,993,000 and total liabilities of US$1,419,215,000. The Official Committee of Unsecured Creditors has selected Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B. Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl & Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at Miles & Stockbridge PC, as its local counsel. The Debtors' spokeswoman Meaghan Repko said that the company does not expect to exit bankruptcy protection before the second quarter of 2008. The Debtors have until June 13, 2008 to file their plan of reorganization. (Movie Gallery Bankruptcy News Issue No. 22; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) MOVIE GALLERY: Wants Consent Procedures for Lessors Approved ------------------------------------------------------------ Movie Gallery Inc. and its debtor-affiliates asked the Honorable Douglas O. Tice of the U.S. Bankruptcy Court for the Eastern District of Virginia to approve procedures for receiving prior written consent of lessors to extend the deadline by which the Debtors must assume or reject unexpired leases of nonresidential real property. As part of their prepetition and ongoing restructuring initiatives, the Debtors have made decisions since the date of bankruptcy with respect to approximately 1,000 leases of nonresidential real property to maximize the value of their estates. The Debtors maintained that they will need additional flexibility to assume or reject their remaining 3,000 leases, which may foreclose some restructuring options and create unnecessary administrative claims. Alternatively, the Debtors would be forced to negotiate extensions with several landlords on an individual basis, which is a process that would prove inefficient and expensive. Pursuant to the Consent Procedures, the Debtors proposed that: (a) they will compile a schedule of the Leases on which additional time is needed to make decisions to assume or reject; (b) a notice of the Court-approval of the Consent Procedures will be sent to landlords; (c) a Consent Letter will be sent to concerned lessors; (d) the Consent Letter will state the Debtors' request for the Lessor's written consent to the lease decision deadline, to be extended through and including the earlier of: (a) Sept. 15, 2008; and (b) the Plan Effective Date in exchange for US$100 consent check for each lease. A full-text copy of the Consent Letter is available for free at http://researcharchives.com/t/s?299f/ (e) a lessor's cashing of the consent check that the Debtors will send along with the Consent Letter constitutes an acceptance of the Debtors' offer for US$100 and consent that the lease decision deadline may be extended, thereby creating a written contract between the Debtors and the lessor; (f) by entering into the Contract, the Lessor is deemed to have given the Debtors "prior written consent" within the meaning of Section 365(d)(4)(B)(ii) of the Bankruptcy Code; (g) the Lessor will have the opportunity to "opt out" through the Opt Out Form, a full-text copy of which is available for free at http://researcharchives.com/t/s?29a0 (h) the Debtors will submit for final Court authorization of a lease decision extension a proposed order identifying the consenting lessors. A full-text copy of the proposed Consent Procedures is available for free at http://researcharchives.com/t/s?29a1 Peter J. Barrett, Esq., at Kutak Rock LLP, in Richmond, Virginia said that pursuant to the Consent Procedures, each lessor may opt out by informing the Debtors; or not cashing the Consent Check. Accordingly, Mr. Barrett continues, the proposed Consent Procedures do not unfairly prejudice the lessors. Mr. Barrett contended that the Consent Procedures provide lessors the option to enter into, and be compensated through, the written contracts while disallowing the Debtors from potentially making premature assumption or rejection of leases. Furthermore, Mr. Barrett maintained that the Debtors' use of their assets to issue consent checks is justified because this affords the Debtors additional time to conduct a thorough analysis of the Leases. The Debtors expect that spending US$100 per lease is reasonable payment in light of the benefits that the Consent Procedures offer to all parties, Mr. Barrett tells Judge Tice. Landlords Object More than 25 landlords object to the Debtors' proposed lease decision extension consent procedures: * The Macerich Company, RREEF Management Company, West Valley Properties, Westwood Financial Corporation, Watt Management Company, Sywest Development, Jones Lang LaSalle Americas, Inc., J.H. Snyder Company, Sol Hoff Company, LLC and Beverly Wilcox Properties, LLC; * Aronov Realty Management, Centro Properties Group Developers, Diversified Realty Corporation, Federal Realty Investment Trust, General Growth Management, Inc., Levin Management Corporation, The Morris Companies Affiliates, American Resurgens, WP Realty and Regency Centers L.P.; and * Weingarten Realty Investors and its affiliates, BC Woods Properties, Benderson Development Company, Kanoa West Pointe, LLC, Mala LLC, and RMC Property Group. The Landlords contend that cashing the US$100 check cannot replace the requirement that the Debtors obtain the prior written consent of the Landlords within the meaning of Section 365(d)(4)(B)(ii) of the Bankruptcy Code. The Debtors should be required to secure written consent or a stand alone agreement with the affected Landlord, instead of deeming that the Landlord has accepted the extension request through the cashing of the check, the Landlords maintain. In addition, the mechanism proposed by the Debtors is prone to numerous situations where the check may be cashed by an entity that is unauthorized to decide whether to allow the Debtors to extend the time to assume or reject the lease, the Landlords tell Judge Tice. The Landlords further relate that they receive checks "in an untimely fashion that are sent to former landlords' lock boxes", where the Landlords have no way of tracking the checks under the Debtors' proposal; hence, the risk of accidental cashing of the checks "is too high". The Landlords also note that the Bankruptcy Code provides no authority for the Debtors to assume or reject leases beyond the Plan confirmation date. Against this backdrop, the Landlords ask the Court to deny the Extension Procedures Request and disallow attempts to have the cashing of a check being a deemed Landlord's acceptance of a lease decision period extension. In the alternative, the Landlords ask Judge Tice to require the Debtors to provide a mechanism for any related lease decision period with a separate written extension consent or stand-alone agreement. About Movie Gallery Based in Dothan, Alabama, Movie Gallery Inc. -- http://www.moviegallery.com/-- is a home entertainment specialty retailer. It operates over 4,600 stores in the United States, Canada, and Mexico under the Movie Gallery, Hollywood Entertainment, Game Crazy, and VHQ banners. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq., at Kutak Rock LLP, is the Debtors' local counsel. The Debtors' claims & balloting agent is Kutzman Carson Consultants LLC. When the Debtors' filed for protection from their creditors, they listed total assets of US$891,993,000 and total liabilities of US$1,419,215,000. The Official Committee of Unsecured Creditors has selected Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B. Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl & Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at Miles & Stockbridge PC, as its local counsel. The Debtors' spokeswoman Meaghan Repko said that the company does not expect to exit bankruptcy protection before the second quarter of 2008. The Debtors have until June 13, 2008 to file their plan of reorganization. (Movie Gallery Bankruptcy News Issue No. 22; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * MEXICO: Default Rate Remains Low Due to Good Economy, S&P Says ---------------------------------------------------------------- During 2007, the default rate continued decreasing in Mexico because of a good economic environment, interest rate stability, and a low inflation rate, according to a report released by Standard & Poor's Ratings Services titled, "2007 Corporate, Financial Services, And Public Finance Default And Ratings Transition Study In Mexico." Since 1990, the total number of Mexican companies that have defaulted is still 29, compared with a larger number of rated companies in Mexico. Last year, S&P rated a total of 282 entities in the corporate, financial services, and public finance sectors, a 2% increase from 2006. "In 2007, the ratio of company downgrades to upgrades in Mexico was 0.51%, which means that for every downgrade, there were two upgrades on average, reflecting Mexico's economic stability during the year," said S&P's credit analyst Fabiola Ortiz. The ratio compares well with the global ratio of 0.67%. This transition study covers 646 companies in the corporate, financial institutions, and public finance sectors in Mexico, including 29 entities that have defaulted on their financial obligations. Comparatively, the global study includes 13,162 issuers with 1,542 defaults. ======= P E R U ======= GLOBAL PAYMENT: Inks Securities Purchase Pacts with 3 Investors --------------------------------------------------------------- Global Payment Technologies Inc. disclosed in a regulatory filing with the Securities and Exchange Commission Tuesday that it has entered into securities purchase agreements and common stock purchase warrants with David Mark Crompton, through Ydra Pty Ltd as purchaser, Steven Hugh Crisp and Richard and Luisa Soussa. The transactions closed Feb. 20, 2008, March 13, 2008, and March 14, 2008, respectively. The securities purchase agreements for David Crompton, Steven Crisp and Richard Soussa provide for the purchase of 200,000, 500,000 and 250,000 shares, respectively, of GPT common stock at US$0.20 per share in cash. In addition each investor received warrants to purchase an additional 200,000; 500,000 and 250,000 shares, respectively, of GPT common stock at US$0.28 per share. The warrants expire in March 2012. The transactions contemplated by the Purchase Agreement are exempt from the registration requirements pursuant to Section 4(2) and Regulation D of the Securities Act of 1933, as amended. About Global Payment Headquartered in Bohemia, New York, Global Payment Technologies Inc. (NasdaqCM: GPTX) -- http://www.gptx.com/-- designs, manufactures, and markets automated currency acceptance and validation systems used to receive and authenticate currencies in a variety of payment applications worldwide. The company has operation in Peru. Going Concern Doubt As reported in the Troubled Company Reporter on Jan. 31, 2008, New York-based Eisner LLP expressed substantial doubt about Global Payment Technologies Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Sept. 30, 2007. The auditing firm pointed to Global Payment's recurring losses and deficiencies in cash flows from operations. ==================== P U E R T O R I C O ==================== ADVANCED MEDICAL: Loses US$192MM in Year Ended Dec. 31, 2007 ------------------------------------------------------------ Advanced Medical Optics Inc. incurred a net loss of US$192 million on US$1 billion of net sales for the year ended Dec. 31, 2007, compared to earnings of US$79 million on net sales of US$997 million for the year ended Dec. 31, 2006. The company's net sales for 2007 rose 9.4% to US$1,090.8 million. The rise reflects the IntraLase and WaveFront Sciences acquisitions, organic growth in cataract implant and laser vision corrections sales and a 2.9% increase related to foreign currency, which were partially offset by recall-related declines in eye care sales. The company had a GAAP net loss for 2007 of US$192.9 million, or a net loss of US$3.22 per share. The per share loss was increased by an estimated US$2.26 due to an US$87.0 million charge for in-process R&D, approximately US$38.2 million in transaction-related charges, a US$1.3 million deferred financing cost write-off, a US$6.1 million loss on derivative instruments and an estimated US$2.8 million tax effect. The company reported a fourth-quarter net loss under GAAP of US$12.3 million, compared to a net loss of US$7.6 million, in 2006's fourth quarter. These results included the impacts of the November 2006 and May 2007 recalls. The fourth-quarter 2007 results also included the following items, which combined to increase the net loss per share by US$0.17: * US$10.7 million in pre-tax charges related to integration of acquisitions; * US$3.4 million pre-tax loss on derivative instruments; and * estimated tax effects totaling US$3.8 million. The company's fourth-quarter 2007 net sales rose 25% to US$304.6 million on organic growth, the acquisitions of IntraLase Corp. and WaveFront Sciences, Inc., and includes a 5.3% increase related to foreign currency impacts. On a pro forma basis, the company's fourth-quarter sales rose 7.3%. The pro forma sales growth rate reflects comparisons that include the IntraLase and WaveFront Sciences performance as if the acquisitions had occurred in all periods presented. Fourth-quarter sales growth was partially offset by lost sales and returns associated with the company's May 2007 contact lens care solution recall. Advanced Medical had total assets of US$2.7 billion, total liabilities of US$2.1 billion, and a stockholders' equity of US$598 million at Dec. 31, 2007, compared to total assets of US$2 billion, total liabilities of US$1.2 billion, and a stockholders' equity of US$715 million at Dec. 31, 2006. Plans to Reduce Fixed Costs The company disclosed plans to reduce its fixed costs in order to further enhance its global competitiveness, operating leverage and cash flow. The plan includes a net workforce reduction of approximately 150 positions, or about 4% of the company's global workforce. In addition, AMO plans to consolidate certain operations to improve its overall facility utilization. To complete this plan, AMO expects to incur charges between US$25 million and US$30 million in 2008 and estimates that the vast majority will be cash. Upon full implementation, the company expects these actions to result in annualized savings of approximately US$10 million to US$12 million. In 2008, the company estimates savings related to these actions in the range of US$4 million to US$7 million, which are reflected in the current guidance. The charges outlined above are in addition to the US$11 million to US$13 million in charges the company expects to take in 2008 to consolidate its equipment manufacturing, which was announced in December 2007. "Our fourth-quarter performance represented a strong finish to 2007, in which we advanced our strategy and moved aggressively to overcome challenges," said Jim Mazzo, chairman and chief executive officer. "Our cataract/implant business delivered growth across all product categories, and we are entering 2008 on track to launch a range of new technologies to position us for future growth. Our eye care business continued to rebound, with fourth-quarter 2007 sales up 20% on a sequential basis. In addition, this business is now launching our first-ever product to relieve dry eye symptoms. Demonstrating the competitive power of our dual excimer and femtosecond laser platform, our laser vision correction business achieved double-digit sales growth on a pro forma basis. With the planned 2008 release of new LASIK innovations, we intend to continue to expand our leadership position. "To ensure we are maximizing the earnings and cash flow power of the global footprint we have created, we need to be diligent in our effort to improve efficiency and productivity. We expect to accomplish this through staff reductions and infrastructure changes designed to reduce fixed costs, improve operating leverage and enhance long-term cash flow. "We remain confident in the strength of our global businesses, technologies, new product pipeline and strategy. However, after the first six weeks of 2008, we have seen the deteriorating U.S. economy negatively impact our domestic LASIK procedure volumes. We have multiple, unique growth drivers that we believe will mitigate our exposure to a slowdown in the elective refractive procedure market, but we feel a more conservative view is prudent at this time," concludes Mr. Mazzo. About Advanced Medical Headquartered in Santa Ana, Calif., Advanced Medical Optics -- http://www.amo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. AMO employs employs approximately 4,200 worldwide. The company has operations in 24 countries and markets products in approximately 60 countries. The company has operations in Germany, Japan, Ireland, Puerto Rico and Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 12, 2007, Moody's Investors Service downgraded Advanced Medical Optics, Inc.'s Corporate Family Rating and Probability of Default Rating to B2 from B1. The rating outlook was revised to stable. Ratings hold to date. GOLD CENTER: Gets OK to Hire Landrau Rivera as Counsel ------------------------------------------------------ Gold Center, Inc., sought and obtained authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Noemi Landrau Rivera, Esq., at Landrau Rivera & Assoc., in Guaynabo, Puerto Rico, as its bankruptcy counsel. Gold Center requires the assistance of legal counsel to properly administer the bankruptcy proceeding, present a disclosure statement and propose a confirmable bankruptcy plan. As counsel Landrau Rivera will: a) advise the debtor with respect to its duties, powers and responsibilities in the case under the laws of the United States and Puerto Rico in which the debtor-in-possession conducts its business, or is involved in litigation; b) advise the debtor in connection with a determination whether a reorganization is feasible and, if not, aiding debtor in the orderly liquidation of its assets; c) assist the debtor with respect to negotiations with creditors for the purpose of arranging the orderly liquidation of assets or for proposing a viable plan of reorganization; d) prepare on behalf of the debtor the necessary complaints, answers, orders, reports, memoranda of law or any other legal papers or documents; e) appear before the Bankruptcy Court, or any court in which the debtor asserts a claim interest or defense directly or indirectly related to the bankruptcy case; f) perform other legal services for debtor as may be required in the proceedings or in connection with the operation of and involvement with debtor's business, including but not limited to notarial services; g) employ other professional services as necessary to complete debtor's financial reorganization with Chapter 11 of the Bankruptcy Code. Noemi Landrau Rivera, Esq., will be paid US$175 an hour for her services. An Associate Staff Attorney at the firm will be paid US$125 an hour. Legal and Financial Assistants will be paid US$75 per hour. The firm will also be reimbursed for actual out-of-pocket expenses. The parties have agreed to a US$6,000 retainer, which was paid before the filing of the petition. Gold Center attests that Noemi Landrau Rivera, nor her employees have any connection with the debtors, the creditors, any party- in-interest, their attorneys, their accountants and the U.S. Trustee's Office. Mrs. Landrau represents Chapter 7 trustees who have been appointed to the Panel of private trustees for the Judicial District of Puerto Rico under the supervision of the Office of the United States Trustee. The Debtor attests that her engagement as attorney for Chapter 7 Trustees does not constitute or represent an adverse interest to the estate. Noemi Landrau Rivera and Landrau Rivera & Assoc. are disinterested persons within the definition provided by 11 U.S.C. Section 101(14), the Debtor states. Gold Center Inc., filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code on February 13, 2008, before the U.S. Bankruptcy Court for the District of Puerto Rico in Old San Juan (Case No. 08-00815). The Debtor continues to manage its properties and operate its business as debtor-in-possession. Gold Center disclosed US$1 mllion to US$100 million in estimated assets and debts when it filed for bankruptcy. GOLD CENTER: Sec. 341 Meeting Rescheduled to April 11 ----------------------------------------------------- The meeting of creditors in Gold Center Inc.'s chapter 11 cases has been rescheduled to April 11, 2008, at 10:00 am. The meeting will be held at the Ochoa Building, First Floor, 500 Tanca SL Corner of Tanca and Comercio St., in Old San Juan, Puerto Rico. The meeting was originally set for March 24, 2008 at 1:30 p.m. Noemi Landrau Rivera, Esq., at Landrau Rivera & Assoc., in Guaynabo, Puerto Rico, the Debtor's counsel, did not disclose the reason for the adjournment. Ms. Rivera signed the rescheduling notice. Gold Center Inc., filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code on February 13, 2008, before the U.S. Bankruptcy Court for the District of Puerto Rico in Old San Juan (Case No. 08-00815). The Debtor continues to manage its properties and operate its business as debtor-in-possession. Gold Center disclosed US$1 mllion to US$100 million in estimated assets and debts when it filed for bankruptcy. PEP BOYS: Awards Advertising Account to Zimmerman Agency -------------------------------------------------------- Zimmerman Advertising has been named agency of record for The Pep Boys - Manny, Moe & Jack. The addition of Pep Boys -- the only national aftermarket retail and service chain that serves the do-it-yourself, do-it-for-me, buy-for-resale and replacement tire segments of the automotive aftermarket -- to its client list, which includes CROCS, Nissan, Six Flags, hh gregg, Longs Drugs Stores and Friendly's Ice Cream Restaurants, is further recognition of Zimmerman's vast retail branding experience in every category. Pep Boys, which spent US$85 million last year, will benefit from the agency's take-no-prisoners approach to grabbing market share and achieving both out-of-the-starting-gate and lasting results, developing and implementing a holistic advertising and marketing campaign, including media planning and buying, creative strategy and a complete retail activation plan. "The Zimmerman team is the perfect match for Pep Boys -- we're both focused on the customer and, more importantly, that synergy will allow us to achieve our objective of treating every market as if it is the only market, and every customer as if he or she is our only customer," said Pep Boys' senior vice president of merchandising and marketing, Scott Webb. "They understand our business and the pressures our customers are feeling today. Together with Zimmerman, we'll accelerate our business transformation. I'm super pleased to welcome the Zimmerman team to our Pep Boys family." "We walked in with the vision that Pep Boys will become the premier national brand to service cars and trucks," says agency founder, Jordan Zimmerman. "Together, we will make sense of a very fragmented and broken sector. The opportunity is absolutely monstrous." Pep Boys' Vice President of Marketing and Advertising, Jim Fox commented, "We are pleased to engage a highly experienced agency like Zimmerman to help us create a more dynamic marketing and advertising strategy and reignite customer passion for our 87- year-old iconic brand and its heritage. We look forward to working together to identify new and exciting approaches to reaching our customers and building our brand." "Pep Boys has developed great awareness with consumers with the Manny, Moe and Jack personalities, but those same consumers who recognize the brand don't know exactly what Pep Boys offers," adds Zimmerman Executive Vice President and Chief Marketing Officer, Michael Goldberg. "Our mission is to transform that broad awareness into real purchase intent, and use this recognition to have a seismic impact on market share, both in the auto parts sector -- where Pep Boys already dominates -- and in the service sector, which is fragmented and not dominated by any one provider." About Zimmerman Advertising Headquartered in Fort Lauderdale, Florida, Zimmerman Advertising, an Omnicom Group(TM) company, is a national retail brand builder, and the 15th largest advertising agency in the United States, with more than 1,000 full-time associates and offices throughout the country, including New York, Los Angeles, Washington DC, Chicago, Dallas, San Francisco and Atlanta. About Pep Boys Headquartered in Philadelphia, The Pep Boys - Manny, Moe & Jack (NYSE: PBY) -- http://pepboys.com/-- has over 560 stores and approximately 6,000 service bays in 35 states and Puerto Rico. Along with its vehicle repair and maintenance capabilities, the company also serves the commercial auto parts delivery market and is one of the leading sellers of replacement tires in the United States. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 22, 2008, Moody's Investors Service has placed these ratings of Pep Boys Manny Moe & Jack under review for possible downgrade: Corporate family rating at B1; Probability of default rating at B1; US$155 million senior secured term loan due 2013 at Ba3; and US$200 million senior subordinated notes due 2014 at B3. PILGRIM'S PRIDE: Promotes Robert Wright as CEO ---------------------------------------------- Robert A. Wright has been promoted to chief operating officer of Pilgrim's Pride Corporation. Mr. Wright previously served as executive vice president of sales and marketing, a position he had held since June 2004. He succeeds J. Clinton Rivers, who was promoted to president and chief executive officer earlier this month. Pilgrim's Pride also disclosed an organizational realignment designed to enhance customer service, product quality, teamwork and communications. Under the new structure, four senior division vice presidents will have overall responsibility for sales, operations and quality assurance in their respective lines of business: case ready, fresh foodservice, supply operations and prepared foods. Those four senior executives, in turn, will report to Mr. Wright, whose former position as executive vice president of sales and marketing has been eliminated under this new organization alignment. "Bob has the ideal background and experience to lead this new reporting structure, which we believe will enable us to deliver enhanced service, quality and value to our customers," Mr. Rivers explained. "Bob is a proven leader who can forge stronger relationships among our sales and operations teams. His combination of operations and sales experience will prove invaluable as we work to position the company for sustained, profitable growth." Mr. Wright joined Pilgrim's Pride in October 2003 as executive vice president of the company's turkey division after serving as president of Butterball Turkey Co. for five years. Prior to leading Butterball, he held various leadership positions at Cargill, Inc., including vice president of operations -- worldwide poultry, general manager -- broiler division, and director of operations and engineering. Mr. Wright earned a Bachelor of Science degree from Fitchburg State College, graduating cum laude. He also holds a Master of Business Administration degree from Rivier College in Nashua, New Hampshire. Pilgrim's Pride also announced that Shane Butler has been promoted to senior division vice president, prepared foods. He previously served as senior vice president, prepared foods regional operations since February 2007. Prior to that, Mr. Butler was vice president, prepared foods regional operations, having previously served in successive management positions at the Company's Mt. Pleasant, Texas, prepared foods facility. He earned a Bachelor of Science degree in business administration and a Master of Science degree in business management from LeTourneau University in Longview, Texas. Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation (NYSE: PPC) -- http://www.pilgrimspride.com/-- produces, distributes and markets poultry processed products through retailers, foodservice distributors and restaurants in the U.S., Mexico and in Puerto Rico. Pilgrim's Pride employs about 40,000 people and has major operations in Texas, Alabama, Arkansas, Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania, Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with other facilities in Arizona, Florida, Iowa, Mississippi and Utah. * * * Pilgrim's Pride Corp. holds Moody's Investors Service's B1 senior unsecured credit rating, B2 senior subordinated notes, and Ba3 corporate family ratings. PPC's planned new US$250 million senior unsecured notes also bears Moody's B1 rating and its new US$200 million senior subordinated notes bears Moody's B2 rating. The outlook on all ratings is stable. Standard & Poor's Ratings Services gave Pilgrim's Pride Corp. a 'BB-' corporate credit rating. ============= U R U G U A Y ============= NUEVO BANCO: Advent & Gilinkski to Agree on Sale by April 18 ------------------------------------------------------------ Private equity fund Advent International will reach an agreement on the sale of its Nuevo Banco Comercial in Uruguay to Colombia's Gilinski group by April 18, Business News Americas reports, citing a source. As reported in the Troubled Company Reporter-Latin America on March 18, 2008, Advent International may reach an accord to sell Nuevo Banco to Gilinski by the end of this month. Advent International reportedly stopped the sale of Nuevo Banco on Jan. 28, 2008, even though it received bids from three banks. Banco Itau, Unibanco, Scotiabank, the Royal Bank of Canada, and Gilinski's GNB Sudameris looked at Nuevo Banco's books, but only three of them presented a concrete proposal. Advent International officials informed representatives of the central bank on March 11, 2008, of the ongoing negotiations with Gilinski, who asked Advent International for updated figures on Nuevo Banco despite having been over the bank's books recently. The source told BNamericas that Gilinski hasn't yet approached the Uruguayan central bank. Advent International could get as much as US$300 million from the sale of Nuevo Banco, BNamericas says, citing market observers. Boston Consulting Group is responsible for the "due diligence process," BNamericas states, citing the source. Nuevo Banco, Uruguay's second largest private sector bank, was formed in March 2003 from the assets of three local banks that were intervened and suspended due to a "run on deposits" during Uruguay's financial crisis in 2002. The Uruguayan government sold Nuevo Banco to a group led by Advent International for US$167 million in September 2005. Nuevo Bank has UYU29.7 billion in assets and some 106,000 customers. * * * In April 2007, Fitch Ratings Service affirmed Nuevo Banco Comercial S.A.'s BB- local currency long-term issuer rating. Fitch said the outlook is stable. ================= V E N E Z U E L A ================= CHRYSLER LLC: Clarifies Misleading Coverage of Discount Programs ---------------------------------------------------------------- Some recent reports suggested that Chrysler LLc's Friends Program discounts on purchases of new Chrysler, Jeep(R), or Dodge vehicles had been discontinued. Chrysler employees can still help an immediate family member or a friend get a great deal on a new Chrysler, Jeep(R), or Dodge vehicle. U.S. employees can enable 6 vehicle purchase or lease discounts (at 1% below dealer invoice) for extended family and friends. This is in addition to the 6 vehicle purchase or lease discounts for the employees, retirees and their eligible family members -- a total of 12 discounts on most new Chrysler, Jeep & Dodge vehicles. All 12 discounts provide major savings and include relevant incentives in effect. The recent news coverage on these employee programs was misleading in that it made people think that the Friends Program was eliminated. The program continues for employees and retirees. Only The Employee Choice program has been cancelled which ended Jan. 2, 2008 -- all other Chrysler LLC employee purchase programs remain in effect. With all the Chrysler Employee Advantage programs, employees have the ability to be true product and sales ambassadors for the company. Employees can continue to drive Chrysler sales by encouraging their friends, family, neighbors and acquaintances to buy or lease a new Chrysler product. Now is the time to get great deals with affordable financing or lease payments with 0% APR financing for 60 months available on most 2008 models. Based in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. PETROLEOS DE VENEZUELA: Inks Partnership Pact With Petrobras ------------------------------------------------------------ Petroleos de Venezuela SA president Rafael Ramirez has signed an agreement with Petroleo Brasileiro president Jose Sergio Gabrielli de Azevedo that sets the bases for the partnership between the two companies for the Abreu e Lima Refinery, in Pernambuco. The agreement lays out the terms for the incorporation, including shareholding, set at 60% for Petrobras and 40% for PDVSA. It also defines the terms for the future signing of the Articles of Incorporation and of the Shareholder Agreement. The specific terms of the agreement are protected by a confidentiality agreement. The Abreu e Lima Refinery will get an investment in the order of US$4.05 billion and will be capable of processing 200,000 barrels of oil per day, 50% of which from Brazil (Marlim) and 50% from Venezuela. The plant is expected to go online in the second half of 2010 and to reach full capacity in 2011. Some 65% of the processed volume will be diesel fuel, the oil derivative that is used the most in Brazil. Cooking gas (LPG), petrochemical naphtha, and coke � solid fuel used in the steel, cement, thermal, and aluminum industries -, will also be produced. Petrobras will give continuity to its studies on a corporate share of up to 10% in the oil exploration and production project in the Carabobo 1 field, in the Orinoco Range, in which PDVSA will hold no less than a 60% share. The studies will continue until the bidding procedure, announced by PDVSA for the remaining 30% share, has been completed. 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: May Launch Carabobo Tender in Two Months ---------------------------------------------------------------- A Petroleos de Venezuela SA executive told Dow Jones Newswires that the firm could launch a tender for the Carabobo 1 field in the Orinoco heavy oil basin in two months. The official commented to Dow Jones, "In the tender for licenses to operate Carabobo 1 oil field blocs, the work is very much advanced and the announcement could come in one or two months." Venezuelan Oil Minister Rafael Ramirez told Dow Jones that the government will launch the Carabobo tender sometime this year but has yet to give a date. The Venezuelan government would seek partners to develop Carabobo 1, expected to hold some 10 billion barrels of heavy crude, Dow Jones states. 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 =========== MODERN TECHNOLOGY: Plans Caribbean Expansion with Encore Energy --------------------------------------------------------------- Modern Technology Corp. and Encore Energy Systems disclosed plans to install a showcase pilot project for its planned expansion into the Caribbean Energy Market. The planned pilot energy project includes the geothermal grey- water heat exchanger technology and solar water heating systems. The project site is a self-contained complex spanning 3 acres with office suites and residential units. The systems will support 140,000 gallons of heated swimming pools, six water heater units and 30 tons of environmental control HVAC using geothermal heat-exchanger technology. The two companies intend for local and regional government officials to participate in the project. The project is intended to serve as a model and showcase installation and to further promote its geothermal expansion in the region. Caribbean power generation depends on expensive oil that burdens local economies and hinders growth. The planned showcase installation will reduce electrical hot water generation costs by an estimated 95% and HVAC heating/cooling costs by an estimated 40% to 70%. The price per kilowatt-hour of electricity is one of the highest in the world. This showcase geothermal project will clearly demonstrate the rapid return on investment for the installed systems. Through this planned project, the project will introduce energy- saving geothermal and solar technologies to the Caribbean and promote job creation. The companies believe that this project will not only provide a shining example to residents, businesses and governments, but also demonstrate the potential of this energy-saving and cost-effective system. About Encore Energy Encore Energy Systems (Pink Sheets: ENCS.PK) -- http://www.encoreenergyinc.com-- owns the patents for the use of grey-water and domestic water in heat exchanger systems. They also provide all forms of conventional geothermal heat exchange systems. About Modern Technology Corp Headquartered in Oxford , Massachusetts, Modern Technology Corp. (Pink Sheets: MODC) -- http://www.moderntechnologycorp.com/-- is a diversified technology development and acquisition company that builds revenues through continuous growth, strategic acquisitions, and commercialization of nascent technology. MODC improves operating efficiencies through the elimination of cost redundancies and realized synergy between subsidiaries. Going Concern Doubt The company said it has doubts about its ability to continue as a going concern considering its significant losses, negative cash flows from operations, and accumulated deficits for the periods ending March 31, 2007. In addition, the company will need to fulfill working capital requirements through the sale of stock and/or the issuance of debt. * Chadbourne & Parke Grows LA Practice w/ Mexico Office Opening --------------------------------------------------------------- Chadbourne & Parke LLP opened an office in Mexico City as part of the expansion of its Latin American practice. Lawyers in the office will advise clients in Latin America and also in major U.S. markets involved in cross-border trade with the region. "A Mexico City presence fits well with Chadbourne's international and domestic network of offices and provides strong support for our Latin America practice," Allen Miller, co-head of Chadbourne's Latin America practice, said. "We expect Mexico City to be a key office in our international network. Our operation there also creates special synergies with domestic offices such as Los Angeles, where Chadbourne already has a very active practice, including renewable energy and litigation, and Houston, where we are particularly strong in serving the oil and gas sector." Lawyers in the new office will focus on mergers and acquisitions, private equity, capital markets, bank and project finance, energy and infrastructure, litigation and arbitration. The Mexico City office opened with approximately 20 lawyers. Boris Otto, a corporate lawyer, and Luis Enrique Graham, a litigator and international arbitration practitioner, joined as partners in Chadbourne & Parke LLP. Jose Antonio Chavez, a corporate finance lawyer, joined as a partner in the Mexican partnership, Chadbourne & Parke, S.C. Two other attorneys joined Chadbourne's New York office earlier this month as part of the Latin American practice's expansion. Marc Rossell, who concentrates on cross-border capital markets and financing work, and Oliver Armas, a litigator and international arbitration practitioner, joined as partners of Chadbourne & Parke LLP. Other lawyers in the Mexico City office include Derek Woodhouse, who heads the energy and infrastructure practice in Mexico; Anthony Girolami, who is active in infrastructure development and international finance matters, with an emphasis on Brazil; and Ricardo Ramirez Hernandez, who focuses on international arbitration and trade matters. "We are excited to join Chadbourne and become its first office in Latin America," Mr. Otto, managing partner of the Mexico City office, said. "Our Latin America practice has deep roots in the region and experienced attorneys. My colleagues and I expect to benefit from Chadbourne's resources in Latin America and worldwide. We look forward to an expansion of the office's activity in such areas as M&A and private equity." After significant increases in 2007 in revenue and profits, the firm is evaluating other locations in Latin America for expansion. Talbert Navia, co-head of the Latin America practice, said that Brazil is a possibility, noting, "Chadbourne already serves major clients in that country, in the energy, natural resources, infrastructure and financial sectors. An in-country presence in Brazil would further expand our practice." About Chadbourne & Parke LLP Headquartered in New York City, Chadbourne & Parke LLP -- http://www.chadbourne.com/-- provides a full range of legal services, including mergers and acquisitions, securities, project finance, private funds, corporate finance, energy, communications and technology, commercial and products liability litigation, securities litigation and regulatory enforcement, special investigations and litigation, intellectual property, antitrust, domestic and international tax, insurance and reinsurance, environmental, real estate, bankruptcy and financial restructuring, employment law and ERISA, trusts and estates and government contract matters. Major geographical areas of concentration include Central and Eastern Europe, Russia and the CIS, the Middle East and Latin America. The firm has offices in New York, Washington, DC, Los Angeles, Houston, London, Moscow, St. Petersburg, Warsaw, Kyiv, Almaty, Dubai and Beijing. * S&P Publishes 2008 Credit Outlook on Global Auto Industry ----------------------------------------------------------- Industry Credit Outlook The problematic United States economic outlook and growing regulatory pressures to cut greenhouse gases are turning the thumbscrews on automaker profits in the world's three largest established markets, the U.S., Europe, and Japan. Light-vehicle sales in the U.S. will almost certainly decline to their lowest level in 10 years in 2008 to about 15 million units, and a deep U.S. recession could drag them still lower. Standard & Poor's Ratings Services expects new-car registrations in Europe to stagnate because strong demand in the budding Eastern European markets will not make up for likely declines in Western Europe. In Japan, too, vehicle sales are likely to continue to slide, putting pressure on original equipment manufacturers' (OEM) profits. In the U.S., the auto loan ABS markets have not escaped the fall-out from the general reassessment of risk by investors. Still, S&P believes they are still accessible, albeit at a higher cost than in recent years. Regulators in Europe, in particular, are moving ahead to cut carbon dioxide (CO2) emissions. Planned EU legislation outlined in December would, if implemented, increase the onus on OEMs to foot much of the bill for persuading consumers to choose greener cars. This could weigh increasingly heavily on their research and development (R&D) spending over the next few years. Still, European automakers are proving remarkably resilient to adverse industry developments. Thanks mainly to restructuring efforts over the past two years, the operating profits of all six rated European automakers improved in 2007 from the previous year. The booming BRIC nations -- Brazil, Russia, India, and China -- are also providing a bridge to growth. These emerging economies already represent 20% of global car sales and S&P believes they will continue to increase strongly by more than 10% per year over the medium term. Yet, even if demand is robust, growing competition in these markets is beginning to dampen profitability. In China, profit levels have already sunk to the world average, due to competition, overcapacity, and market fragmentation. BRICs therefore can't fully offset the effect of persisting negative industry trends in established markets: continued high raw-material costs, largely unfavorable foreign exchange rates for the export-oriented OEMs, and the longer term threat of more stringent environment legislation to reduce vehicle emissions. U.S. auto loan ABS losses rise modestly, but ratings remain stable. Despite the financial market turbulence, automakers in general continue to enjoy a strong industrial liquidity position, which S&P considers a necessity in an industrial environment characterized by huge working capital swings and high capital expenditures. They also have availability under their revolving credit facilities. The auto loan ABS markets have not escaped the fall-out from the general reassessment of risk by investors. Consequently, pricing spreads on secondary and new issue auto loan ABS spreads have widened. Nevertheless, S&P believes that the auto loan ABS market is accessible, albeit at a higher cost than in recent years. As the bond market is largely unavailable to the subinvestment-grade automakers, notably the U.S. players General Motors Corp. (B/WatchNeg/B-3), Ford Motor Co. (B/Stable/B-3), and Chrysler LLC (B/Negative/--), there has been a heavy reliance on ABS financings in recent years. In 2007, Ford Credit and GMAC were active issuers, but toward the second half of the year investors weren't buying non-'AAA' tranches like they once did. This trend continued into 2008. Through the end of February this year, each of the three had tapped the public ABS markets, but classes rated below 'AAA' were retained by the sellers. Like most auto finance companies, losses on Ford Credit and GMAC's 2007 securitizations are trending slightly higher than in 2006, but remain close to expected levels. Chrysler LLC's 2006 and 2007 ABS are reporting elevated losses compared with the low levels experienced for the 2005 pools. However, there has been a significant reduction in 30+ day delinquencies for Chrysler's pools for the last two reporting months, December and January. Management attributes this to several actions instituted to improve collections. At this time, the 2006 and 2007 pools from the domestic captives remain adequately enhanced for the assigned ratings. North American light-vehicle sales in 2008: How low will they go? U.S. light vehicle industry sales will almost certainly decline to their lowest level in 10 years in 2008. But how low is far from certain. S&P currently expects 2008 U.S. light-vehicle sales to be about 15 million, down from 16.1 million in 2007. This would be about 13% below the record level of 17.3 million in 2000. In a deep U.S. recession, S&P believes sales would go well below 15 million. But the seasonally adjusted annual selling rate for January 2008 was 15.3 million and 15.4 million for February -- both higher than S&P's 2008 estimate, in the face of clear economic weakness. Still, S&P remains concerned about how 2008 sales will evolve. With industry demand soft in light of economic uncertainty, the crucial efforts by the Michigan-based automakers to manage dealer inventories, reduce daily rental volumes, and control their use of incentives will remain under pressure. Compounding the weak sales outlook, product-mix shifts into somewhat smaller and generally less profitable vehicle classes continue. Crossover utility vehicle (CUV) sales were up 10.3% in the first two months of 2008, while sport utility vehicle (SUV) sales were down 22.1%. Pressure on the SUV and pickup truck segments will remain a negative influence in 2008, led by consumer preference shifts, high gas prices, the housing decline, and uncertainty over consumer spending. GM, Ford Motor, and Chrysler continue to gradually lose market share, partly by design as they retrench from daily rental fleet sales. GM's market share in the first two months of 2008 was 23.5%, down from 23.7% in the same period of 2007. Ford Motor's share during those same periods was 15.7%, down slightly from 15.8%. Chrysler's was 13% versus 14.1% in 2007. Second quarter 2008 North American production for Ford Motor is expected to be down 10% from 2007, while GM's production is forecast to be down 5%. In both cases, actual production is subject to change because inventory levels evolve during the quarter. Japanese and Korean automakers, meanwhile, are not immune from a lower level of sales. While Toyota Motor Corp.'s (AAA/Stable/A-1+) market share was 16% for the first two months of 2008, up from 15.5% in 2007, its sales fell 2.5% year over year during the first two months of 2008. North American Commercial Vehicles: No light yet at the end of tunnel The severe downturn in medium- and heavy-duty truck markets entered its second full year with few signs of a rebound in demand. What had initially been a technical downturn caused by new engine-emission regulations in early 2007 has been extended and exacerbated by the weak U.S. economy. A similar confluence of factors caused the extended truck downturn from 2001 to 2003. For full-year 2007, class 8 heavy-duty truck production fell 44%, according to data from A.C.T. Research. Monthly net orders remained at sluggish levels through the first two months of 2008, and dealer inventories remained high, particularly in medium-duty class 6 and 7 segments. S&P currently expects North American production to be flat or even slightly down in 2008, with a possibility of some pickup of demand late in the year. But visibility is very poor for all industry players. Activity in 2009 will likely benefit from another round of emissions changes scheduled for 2010, but if demand stays depressed into early 2009 then some suppliers or manufacturers may find themselves with covenant or liquidity challenges. European Automakers Reap Rewards of Restructuring Efforts Operating profits of all six rated European automakers improved in 2007 thanks to cost-saving a restructuring programs launched by almost all European OEMs over the past two years. S&P expects better labor efficiency and declining capital expenditure levels also to support free cash flow generation this year. Credit quality in the sector held up well in the first two months of 2008, despite the adverse industry environment, with no downgrades. The outlook on Peugeot S.A. (BBB+/Stable/A-2) was revised to stable from negative and Daimler AG (BBB+/Watch Pos/A-2) was put under review in February for a potential upgrade in the short term. In the first two months of 2008, auto demand gathered momentum in both Western and Eastern Europe. Yet, for the full year 2008, S&P expects the European market as a whole to remain largely stagnant, with likely declines in Spain and the U.K. as a result of negative housing prices and poor consumer-confidence trends. The weak dollar and yen also present challenges for export-oriented manufacturers with a poor global production footprint. All automakers have improved their financial hedging in recent years, however, so that effects on operating profits should remain moderate. German consumers start the year in spending gear: Of the five major auto markets in Western Europe, Germany grew the strongest in the first two months of 2008, with new-car registrations up 17.3% on the same period of the previous year, following a 9.2% decline in the full year 2007. Yet, despite the relatively strong underlying economy and increasing replacement demand, S&P expects the market to stagnate over the full year, reflecting uncertainty about future CO2 emissions regulation, leading customers to postpone car-buying decisions. France's new tax incentives may stimulate small-car sales: The French market grew by 2.4% in the first two months of 2008 on the same period of 2007) but a planned incentive scheme could further stimulate auto sales in 2008. The introduction of CO2- based tax regime as of Jan. 1, 2008, alongside purchase incentives of up to EUR1,000 on small and low-emission cars could stimulate small car sales in 2008 and heavily penalize the largest and least fuel-efficient cars, by imposing a one-time purchase tax of up to EUR2,600, with a sliding scale of taxes for those cars that fall between these extremes. U.K. sales could slide on house-prices worries: U.K. car sales fell by 3.1% in the first two months of 2008, after growing by 2.5% in 2007. S&P expects full-year sales to decline, as a result of negative housing prices and poor consumer confidence. Replacement demand could also be slow because the U.K. has the youngest fleet in Europe. Italian market slows: New-car registrations in Italy dropped by 5.5% in January and February 2008, after a strong 7.1% growth for full-year 2007 -- the strongest in Western Europe last year. A continuation of the government scrapping incentives in 2008, which contributed to 2007 market growth, could aid the market. Spanish auto market on a downhill path: During 2006-2007, the Spanish market showed a continuous downward demand trend. This decline continued in January, by 12.7% on the first month of last year, but managed a slight increase of 0.7% in February. S&P expects the downward trend to continue in 2008. New EU states accelerating: New-car registrations in the new EU member states are continuing to trend upward. Europe's new markets grew by 18.6% in January and February compared with 13.1% in the same period of 2007. In the medium term, S&P expects the EU accession countries' car markets to grow robustly as cars become increasingly affordable due to growing GDPs. BMW leads the pack: Among individual OEM's German automaker BMW AG (A+/Stable/A-1) was first off the starting block in the first two months of 2008, with new car registrations up 19.2% on the same period of the previous year. Daimler registrations were up also up 9.9%, By contrast, Toyota declined by 8.4% and GM by 6%. Eastern Europe: Still powering Europe's heavy-truck market through 2008 European light commercial vehicle registrations rose by 7.1% in 2007, which was strong, although slower than 2006. In the heavy-duty segment (over 16 tons), strong demand in Central and Eastern Europe drove growth to 7.3% on the previous year. For 2008, S&P expects this to continue at about 5%-10% for the heavy-duty truck market, which is in line with its expectation. Sliding vehicle demand in Japan will increase profitability pressures this year Vehicle sales in Japan slipped to 5.35 million units in 2007, a 6.7% decline from 2006. A series of new model launches by Toyota, Honda Motor Co. Ltd. (A+/Positive/A-1), and others in the latter part of 2007 failed to stem the decline in passenger- car demand by 5.2% from the previous year. Even sales of mini- vehicles, with engines of 0.66 liters or smaller, which enjoyed favorable sales growth in 2006, declined by 5.1% to 1.92 million units. In January 2008, the passenger-car segment perked up, increasing 6.4% year-on-year and supporting a 1.4% increase in overall demand in the first month. Yet, the Japan Automobile Manufacturers Association projects that full-year 2008 vehicle sales figures will disappoint, declining 1.2% from 2007. S&P expects Japanese automakers' profitability to come under increased pressure in 2008, but to remain relatively healthy. Manufacturers such as Toyota and Honda reported generally favorable operating results for 2007, with strong growth in unit sales in major overseas markets. Favorable foreign exchange rates also supported strong results. Nevertheless, major challenges remain, including continuously high material and energy costs, increased administrative and R&D expenses to support global expansion, and a weaker model mix as a result of a demand shift to smaller vehicles in the high gasoline price environment. What's more, uncertainty over the economic outlook in the U.S., the largest market for most Japanese automakers, and increased volatility in foreign exchange rates are adding to Japanese automakers' concerns. Korean vehicle market: New products support sales Despite a likely slowdown in GDP growth in 2008, vehicle sales in Korea should remain largely supported by an influx of new models. Ten new launches are scheduled for the domestic market this year, after just four in 2007. Kia Motors Corp. (BBB- /Stable/--), in particular, should benefit from three new models that are likely to underpin a growth in market share. In 2007, domestic vehicle sales increased by 4.8% to 1.22 million units, from 1.15 million units in 2006, on the back of a recovery in domestic consumption. However, this masks mixed fortunes among individual manufacturers. While Hyundai Motor Co. (BBB-/Stable/--) recorded 7.5% sales growth at home in 2007, after timely new product launches and facelifts, Kia's unit sales remained flat, due to limited new product launches last year. BRICs Build A Bridge To Growth The emerging BRIC countries look set to continue to unfold their growth potential to established carmakers in 2008, giving them the chance to boost their global sales and reduce their dependence on sluggish demand in the West's mature and saturated automotive markets. Brazil steams ahead: After a record-breaking 27% surge in 2007, vehicle sales in 2008 are likely to calm, but still reach double-digit growth rates. Brazil's surprisingly strong macroeconomic performance, with forecast GDP growth of about 5% in 2008, and its resilience against the global credit crunch will support better credit availability, lower interest rates, and the extension of loan periods, all of which should feed healthy domestic demand in 2008. With registrations of 607,556 in 2007, Fiat Spa (BB+/Positive/B) was the top-selling brand in Brazil, with an increase of 30.5%, followed by Volkswagen AG (A-/Stable/A-2), GM, Ford Motor, and Peugeot. Foreign manufacturers pile into Russia: The dynamic development of the Russian automotive industry looks set to gather force in 2008. After 2.3 million new cars were sold in Russia in 2007, and this is expected to rise to 3,000,000 units this year. Much of the demand in 2007 came from imports of branded vehicles, up 61% on the previous year. In January this year, sales of foreign cars continued to grow at a prodigious pace of 53% or 39,270 units year on year. Russia is also expanding as a manufacturing base, with seven foreign assembly lines now operating in Russia: the GM-Avtovaz joint venture; Ford Motor; the Renault S.A. (BBB+/Stable/A-2) and Moscow joint venture; the Avtotor plant assembling BMW, GM, and KIA cars; the IzhAvto plant assembling three KIA models; the Taganrog enterprise that assembles Hyundai cars; and Toyota's St. Petersburg plant that assembles Toyota Camrys. This industrial expansion is being driven by substantial inflows of capital and petrodollars, as well as the availability of consumer credit. In February 2008, Avtovaz, Russia's largest domestic carmaker, and Renault confirmed their strategic partnership, in the course of which Renault will acquire 25% plus one share in Avtovaz for US$1 billion and a deferred payment not exceeding US$165 million. In India, Tata unveils the world's cheapest car: The Indian automotive market has seen strong compound annual average growth of 12% over the past four years and shows no signs of flagging. Forecasts by J.D. Power and Associates suggest 10%-11% growth per year until the end of the decade. For the 10 months to Jan. 31, 2008, passenger-car and commercial-vehicle sales grew by 12.8% and 2.9%, respectively, on a year-on-year basis. Passenger-vehicle exports during this period grew by a mere 4.9% year on year, while the commercial- vehicle exports were up 17.9%. The Indian market is dominated by three players: Maruti Udyog Ltd. (not rated), 54% of which is owned by Suzuki Motor Corp. (A-/Stable/--); Hyundai Motor India Ltd., a subsidiary of Korean Hyundai Motor Co.; and India's own Tata Motors Ltd. (BB+/Watch Neg/--). Profitability is currently high, with EBITDA margins of about 12%, but S&P expects this to decline gradually due to increasing competition and declining capacity utilization rates. In January 2008, Tata Motors unveiled the cheapest car in the world, the Nano (costing about US$2,500-US$3,000) in India, which attracted worldwide interest. Tata expects to sell 250,000 cars in the first year and up to 1,000,000 annually in the next three to four years. The car is likely to boost demand in the Indian passenger-car market by attracting owners of motorized two-wheelers, which represent a major section of the Indian automobile sector, to upgrade to a car. The Indian passenger-car market has flourished mainly due to a rise in personal disposable incomes and the booming Indian economy that is growing at an annual rate of about 9%. More than 50% of the vehicles sold in India are purchased on credit. Despite rising interest rates, demand is growing because of attractive buyer incentives, price reductions, and the easy availability of consumer financing. Chinese market promising: After an impressive annual growth rate of 60% to 70% in recent years, the Chinese passenger-car market is likely to cool to 10%-15% increases per year over the medium term. The market holds plenty of promise given that it has a population of 1.3 billion in which only 20 in 1,000 people of driving age owned a car in 2006. What's more, nominal national income is likely to grow at more than 10% per year over the next five years, spurred by strong economic growth. Total auto sales in China grew by 21.8% in 2007 year on year to 8.8 million units and are expected to surpass 10 million units in 2008. Sales of passenger vehicles grew by 21.7% year on year to 6.3 million units and commercial vehicles by about 22.3% to 2.5 million units. Nearly 90 new vehicle models were launched in 2007. GM and VW are still the leading brands in the country, through joint ventures with local manufacturers. Although demand is strong, profitability in China has come down to world-average levels as a result of fierce competition, overcapacity, intense pricing pressures, market fragmentation, high material costs, poor quality (albeit improving), the lower availability of components, and higher-than-average production costs. In such a competitive environment, automakers cannot pass on rising steel prices to consumers so relieve pressure on margins. Still, growth in exports from China has been remarkably fast, from a mere 1,000 units in 2003 to 612,700 units in 2007, and is expected to reach one million unit per year by 2010. In terms of value, exports rose by 130% to US$7.31 billion. The Chinese government has outlined an ambitious plan to increase the export value of vehicles and auto components to US$120 billion within the next decade. * BOND PRICING: For the Week March 24 - March 28, 2008 ------------------------------------------------------ Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- Argnt-Bocon PR11 2.000 12/3/10 ARS 60.86 Argnt-Bocon PR13 2.000 3/15/24 ARS 61.17 Arg Boden 2.000 9/30/08 ARS 14.80 Argent-EURDIS 7.820 12/31/33 EUR 72.94 Argent-$DIS 8.280 12/31/33 USD 72.25 Argent-Par 0.630 12/31/38 ARS 38.52 BRAZIL ------ CESP 9.750 1/15/15 BRL 62.29 CAYMAN ISLANDS -------------- Shinsei Fin Caym 6.418 1/29/49 USD 70.22 Shinsei Finance 7.160 7/29/49 USD 68.32 Vontobel Cayman 5.000 3/12/10 CHF 70.60 Vontobel Cayman 6.400 3/28/08 CHF 75.00 Vontobel Cayman 6.533 3/27/08 CHF 66.95 Vontobel Cayman 7.812 3/27/08 EUR 71.90 Vontobel Cayman 8.250 4/25/08 CHF 71.60 Vontobel Cayman 8.250 7/28/08 CHF 39.20 Vontobel Cayman 8.000 10/24/08 CHF 48.40 Vontobel Cayman 8.500 3/27/08 CHF 51.40 Vontobel Cayman 8.600 3/27/08 CHF 67.60 Vontobel Cayman 8.900 3/27/08 CHF 66.55 Vontobel Cayman 9.100 10/31/08 CHF 63.60 Vontobel Cayman 9.250 3/27/08 CHF 71.70 Vontobel Cayman 10.000 10/24/08 CHF 47.40 Vontobel Cayman 10.400 3/27/08 CHF 73.30 Vontobel Cayman 10.400 7/8/08 CHF 53.20 Vontobel Cayman 10.800 9/26/08 CHF 49.00 Vontobel Cayman 10.800 12/19/08 CHF 74.00 Vontobel Cayman 10.850 3/27/08 EUR 53.00 Vontobel Cayman 10.900 9/26/08 CHF 48.00 Vontobel Cayman 11.000 6/20/08 CHF 38.40 Vontobel Cayman 11.500 6/27/08 EUR 60.95 Vontobel Cayman 11.500 7/22/08 CHF 62.80 Vontobel Cayman 12.000 7/25/08 EUR 73.90 Vontobel Cayman 17.500 6/5/09 CHF 71.80 Vontobel Cayman 20.000 1/23/09 EUR 67.20 JAMAICA ------- Jamaica Govt LRS 7.500 10/6/12 JMD 71.98 Jamaica Govt LRS 12.750 6/29/22 JMD 73.98 Jamaica Govt LRS 12.850 5/31/22 JMD 73.39 PUERTO RICO ----------- Puerto Rico Cons. 5.900 4/15/34 USD 45.00 Puerto Rico Cons. 6.000 12/15/34 USD 71.00 Puerto Rico Cons. 6.250 5/1/22 USD 74.00 Puerto Rico Cons. 6.300 11/1/33 USD 47.00 VENEZUELA --------- Petroleos de Ven 5.250 4/12/17 USD 66.81 Petroleos de Ven 5.375 4/12/27 USD 57.47 Petroleos de Ven 5.500 4/12/37 USD 55.87 Venezuela 7.000 3/31/38 USD 69.87 *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marie Therese V. Profetana, Sheryl Joy P. Olano, Rizande de los Santos, and Pamella Ritah K. Jala, Editors. Copyright 2008. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *