/raid1/www/Hosts/bankrupt/TCRLA_Public/080407.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, April 7, 2008, Vol. 9, No. 68
Headlines
A R G E N T I N A
CHRISVAL SRL: Proofs of Claim Verification Deadline is April 25
DELTA AIR: Flight Attendants' Union Voting Starts April 23
FORESTAL ESPERANZA: Proofs of Claim Verification is Until May 22
HAIR EXPRESS: Proofs of Claim Verification Deadline is May 22
IMSSA SA: Files for Reorganization in Buenos Aires Court
KLEOPATRA LUX: Moody's Junks Corp. Family Rating; Outlook Stable
POLYMER GROUP: Net Loss Rises to US$41MM in Year Ended Dec. 29
WELL COMPANY: Proofs of Claim Verification is Until May 23
ZONDA COLOR: Proofs of Claim Verification Deadline is May 30
B E R M U D A
CENTENARY HOLDINGS: Proofs of Claim Filing Deadline is April 16
CENTENARY HOLDINGS: Sets Final Shareholders Meeting for May 5
MONTPELIER RE: Thomas Busher to Head European Operations
B R A Z I L
AMERICAN BANKNOTE: Moody's Rates BRL165MM Sr. Debentures at Ba2
ASPEN TECH: Appoints KPMG as New Independent Accounting Firm
BANCO DO BRASIL: Will Buy Shares in Agribusinesses
BANCO PANAMERICANO: UBS Pactual Puts Buy Recommendation on Firm
BRASIL TELECOM: Sees 57% Investments Increase This Year
COMPANHIA SIDERURGICA: To Pay Shareholders BRL1.24B in Dividends
DELPHI CORP: Ex-Parent GM May Assume More Pension Liabilities
GENERAL MOTORS: May Assume More Delphi Corp. Pension Liabilities
EMI GROUP: Douglas Merrill Leads Digital Music Business
HERCULES INC: Debt Reduction Cues Moody's to Up Rating to 'Ba1'
ISA CAPITAL: Fitch Holds Currency Issuer Default Ratings at BB
KRATON POLYMERS: Moody's Cuts Corporate Family Rating to B2
SCO GROUP: Gives Up Chapter 11 Plan; Lender to Buy Assets
SILGAN HOLDINGS: Closes Silgan White Cap Acquisition in Brazil
C A Y M A N I S L A N D S
AIG ASIA: Will Hold Final Shareholders Meeting on April 8
ALMAG LIMITED: Proofs of Claim Filing is Until April 7
ALMAG LIMITED: Sets Final Shareholders Meeting for April 8
CONTRA OFFSHORE: Proofs of Claim Filing Deadline is April 7
CONTRA OFFSHORE: Will Hold Final Shareholders Meeting on April 8
IMOGEST LIMITED: Proofs of Claim Filing is Until April 7
IMOGEST LIMITED: Will Hold Final Shareholders Meeting on April 8
MARGHERITA LIMITED: Sets Final Shareholders Meeting for April 8
TG EMPLOYEE: Proofs of Claim Filing Deadline is April 8
TG EMPLOYEE INVESTMENT: Proofs of Claim Filing Is Until April 8
C O L O M B I A
BANCOLOMBIA: Eyes More Acquisitions in Central America
C O S T A R I C A
ALCATEL-LUCENT: Moody's Holds Ratings; Outlook Revised to Neg.
D O M I N I C A N R E P U B L I C
BANCREDITO: Supreme Court Overturns Bank Officials' Acquittance
J A M A I C A
CASH PLUS: President Must Disclose Financial Affairs Information
M E X I C O
AMERICAN AXLE: Moody's Puts Ba3 Corp. Family Rating Under Review
BANCO INTERACCIONES: To Invest MXN10B in Infrastructure Projects
COREL CORP: Posts US$30,000 Non-GAAP Net Loss in First Qtr. 2008
DESARROLLO FIRME: Fitch Cuts National Long-Term Rating to BB+
DIRECTV GROUP: 48% of Stock Now Owned by Liberty Media
MEGA BRANDS: Posts US$97 Million Net Loss in 2007
MOVIE GALLERY: Consolidates Additional Store Operations
MUNICIPIO BENEITO SUAREZ: Fitch Ups Nat'l Long-Term Rtng to BB+
SONIC CORP: Feb. 29 Balance Sheet Upside-Down by US$109 Million
P U E R T O R I C O
FOOT LOCKER: Poor Sales Results Cues Moody's Ba3 Rating
MMM HOLDINGS: Moody's Retains Ratings Under Review
V E N E Z U E L A
PETROLEOS DE VENEZUELA: May Fail to Maintain Oil Shipments
PETROLEOS DE VENEZUELA: Production Costs Increase 21.7% in 2007
X X X X X X
* Fitch Issues Latin America Rating Actions Summary for March
* LatAm 2008-2009 Corp. Debt Refunding Manageable, Moody's Says
* BOND PRICING: For the Week March 31 - April 4, 2008
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A R G E N T I N A
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CHRISVAL SRL: Proofs of Claim Verification Deadline is April 25
---------------------------------------------------------------
Juan Carlos Vilanova, the court-appointed trustee for Chrisval
S.R.L.'s bankruptcy proceeding, will be verifying creditors'
proofs of claim until April 25, 2008.
Mr. Vilanova will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Buenos Aires will determine if the verified claims
are admissible, taking into account the trustee's opinion, and
the objections and challenges that will be raised by Chrisval
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 Chrisval's accounting
and banking records will be submitted in court.
Infobae didn't state the reports submission deadlines.
Mr. Vilanova is also in charge of administering Chrisval's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Juan Carlos Vilanova
Avenida Rivadavia 1210
Buenos Aires, Argentina
DELTA AIR: Flight Attendants' Union Voting Starts April 23
----------------------------------------------------------
Delta Air Lines Inc. received notification from the National
Mediation Board that the voting period for a union election
among Delta's flight attendants has been scheduled for April 23
to June 3, 2008.
On March 18, the NMB notified Delta that it had authorized a
union election among Delta flight attendants, but at that time
the NMB did not specify dates for a voting period.
In response to news of the voting period, Joanne Smith, senior
vice president for Delta's In-Flight Service and Global Product
Development, said:
"Delta flight attendants will make one of the most important
decisions of their careers over the coming months as they
choose between a direct relationship with Delta's management
team or the cost and risk of a third-party representative,"
Smith said.
"Our flight attendants have long been successful at speaking
for themselves and we continually demonstrate our
willingness to respond quickly and directly to their
individual and collective feedback. I'm asking all of our
flight attendants to make an educated choice, based on fact.
"The facts are: Delta flight attendants have it better than
what the Association of Flight Attendants' has been able to
deliver at other airlines, and those airlines' contracts are
not open to changes for several years to come -- years in
which Delta flight attendants will continue to enjoy higher
rates of pay, a better profit sharing program and a better
performance rewards program.
"In contrast, the AFA's track record at other network
carriers is not a good one. The AFA has demonstrated that
its members have not been protected from pay cuts, job loss,
pension termination or any other changes affecting the
airline industry. And flight attendants at those other
airlines also must pay hundreds of dollars per year in union
dues.
"Delta has good momentum thanks to the hard work of all
Delta people and we look forward to the ability to continue
working on their behalf and responding to their feedback,"
Smith continued.
AFA-CWA's Statement
Flight attendants at Delta Air Lines received news from the
National Mediation Board (NMB) that their opportunity to vote on
becoming members of the Association of Flight Attendants-CWA
(AFA-CWA) will begin on April 23, 2008. Voting will be open
from April 23 through June 3 at 2:00 p.m. Eastern Daylight Time.
"This is a very exciting and historic time for Delta flight
attendants," said Patricia Friend, AFA-CWA International
President. "Over the past 18 months, Delta flight attendants
been engaged in one of the largest grassroots' campaigns in
union history. Delta flight attendants tell us that the
airline's bankruptcy and more recently, the proposed merger with
Northwest Airlines have made it clear -- they need and want a
voice in their future and a legally binding contract they can
count on. Beginning April 23, they will have the opportunity to
join the tens of thousands of other AFA-CWA flight attendants
across the country who have taken control of their careers and
have a say in the decisions that affect their lives."
On Feb. 14, Delta flight attendants submitted a solid majority
of signature cards to the NMB, formally requesting a union
representation election for only the second time in the history
of the airline. Over the next several weeks, the NMB will send
instructions to Delta flight attendants on how to participate in
a secret-vote election that will determine union representation.
The NMB, the federal agency that supervises airline and railway
labor relations, will conduct voting electronically via the
Internet and through a phone-activated system. With roughly
13,000 Delta flight attendants eligible to vote this will be one
of the largest union elections in the U.S. this year.
"We need a voice -- more so than at any other time -- to be able
to negotiate for our own future, and to have a say in how a
merger, or a layoff might affect us," said Toni Weinfurtner,
Delta flight attendant and AFA-CWA activist. "We will have that
voice when we join the tens of thousands of our fellow flight
attendants across the country in the Association of Flight
Attendants-CWA."
About AFA-CWA
For over 60 years, the Association of Flight Attendants has been
serving as the voice for flight attendants in the workplace, in
the aviation industry, in the media and on Capitol Hill. More
than 55,000 flight attendants at 20 airlines come together to
form AFA-CWA, the world's largest flight attendant union. AFA
is part of the 700,000-member strong Communications Workers of
America (CWA), AFL-CIO.
About Delta Air
Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 328 destinations
in 56 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners. Delta flies to
Argentina, Australia and the United Kingdom, among others.
The company and 18 affiliates filed for chapter 11 protection on
Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents
the Debtors in their restructuring efforts. Timothy R. Coleman
at The Blackstone Group L.P. provides the Debtors with financial
advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at
Akin Gump Strauss Hauer & Feld LLP, provide the Official
Committee of Unsecured Creditors with legal advice. John
McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James
S. Feltman at Mesirow Financial Consulting, LLC, serve as the
Committee's financial advisors.
The Debtors filed a chapter 11 plan of reorganization and
disclosure statement explaining that plan on Dec. 19, 2007. On
Jan. 19, 2007, they filed revisions to the plan and disclosure
statement, and submitted further revisions to the plan on
Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors'
disclosure statement. In April 25, 2007, the Court confirmed
the Debtors' plan. That plan became effective on
April 30, 2007. The Court entered a final decree closing 17
cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News,
Issue No. 94; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
* * *
As reported in the Troubled Company Reporter on Jan. 17, 2008,
Standard and Poor's said that media reports that Delta Air Lines
Inc. (B/Positive/--) entered into merger talks with UAL Corp.
(B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--) will
have no effect on the ratings or outlook on Delta, but that
confirmed merger negotiations would result in S&P's placing
ratings of Delta and other airlines involved on CreditWatch,
most likely with developing or negative implications.
FORESTAL ESPERANZA: Proofs of Claim Verification is Until May 22
----------------------------------------------------------------
Rodolfo Fernando Daniel Torella, the court-appointed trustee for
Forestal Esperanza S.A.'s bankruptcy proceeding, will be
verifying creditors' proofs of claim until May 22, 2008.
Mr. Torella will present the validated claims in court as
individual reports on July 3, 2008. The National Commercial
Court of First Instance in Buenos Aires, Argentina, 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 Forestal Esperanza 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 Forestal Esperanza's
accounting and banking records will be submitted in court on
Aug. 29, 2008.
Mr. Torella is also in charge of administering Forestal
Esperanza's assets under court supervision and will take part in
their disposal to the extent established by law.
The trustee can be reached at:
Rodolfo Fernando Daniel Torella
Arcos 3726
Buenos Aires, Argentina
HAIR EXPRESS: Proofs of Claim Verification Deadline is May 22
-------------------------------------------------------------
Felisa Mabel Tumilasci, the court-appointed trustee for Hair
Express S.R.L.'s bankruptcy proceeding, will be verifying
creditors' proofs of claim until May 22, 2008.
Ms. Tumilasci will present the validated claims in court as
individual reports on July 3, 2008. The National Commercial
Court of First Instance in Buenos Aires, Argentina, 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 Hair Express 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 Hair Express'
accounting and banking records will be submitted in court on
Aug. 29, 2008.
Ms. Tumilasci is also in charge of administering Hair Express'
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Felisa Mabel Tumilasci
Avenida Callao 449
Buenos Aires, Argentina
IMSSA SA: Files for Reorganization in Buenos Aires Court
--------------------------------------------------------
Imssa S.A. has requested for reorganization approval after
failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Imssa to negotiate a settlement with its
creditors in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Imssa S.A.
Alsina 2143
Buenos Aires, Argentina
KLEOPATRA LUX: Moody's Junks Corp. Family Rating; Outlook Stable
----------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Kleopatra Lux 1 S.a.r.l. (formerly known as Kloeckner-
Pentaplast SA) to Caa1 from B2. The outlook is stable.
Moody's lead analyst for Kleopatra (Kloeckner-Pentaplast),
Rainer Neidnig said: "The downgrade reflects primarily ongoing
pressure on the company's earnings against our previous
expectation of improving profitability in the current year."
Main reasons for this development have been operational
difficulties, especially in the PET business, rising input costs
which could not yet be fully recouped through price increases
and lower than expected volumes.
While the rating considers that management is in the process of
addressing operational issues and is working on the gradual pass
through of higher raw material costs, it also reflects the
company's highly leveraged capital structure as well as lower
than expected EBITDA against the background of tightening
covenant headroom under its senior credit facilities.
The rating continues to benefit from Kloeckner-Pentaplast's
rather large size with leading positions in most of its business
areas and further expansion into growth markets in Asia and
Latin America. Moreover, stable end markets should add some
degree of stability to cash flow generation. But the recovery
to previously expected cash-flow generation may take some time
in Moody's view.
The stable outlook reflects the expectation that Kloeckner-
Pentaplast can stabilize its earnings situation on the back of a
successful pass-through of higher input costs and benefits from
further cost reductions. Moody's also incorporates an
expectation that shareholder Blackstone would continue to be
supportive in case of need.
Kleopatra Lux 1 S.a.r.l., headquartered in Montabaur, Germany
with legal domicile in Luxemburg, is a global leader in the
manufacturing of rigid plastic film for the pharmaceutical,
food, medical, electronics and other packaging industry. The
company generated about EUR1.1 billion of sales during 2007
(ending September), approximately 60% of which came from Europe
and approximately 40% from the US, Canada and Latin America,
including Kloeckner Pentaplast de Argentina S.A., a unit of the
company. The company also generates a smaller portion of
revenues in Asia. The company has 20 manufacturing sites in 10
countries with approximately 3,500 employees. The company is
owned by private equity group Blackstone.
POLYMER GROUP: Net Loss Rises to US$41MM in Year Ended Dec. 29
--------------------------------------------------------------
Polymer Group Inc. reported results of operations for the fourth
quarter and fiscal year ended Dec. 29, 2007.
The company recorded net loss for 2007 of US$41.1 million
compared to a net loss of US$34.5 million for the prior year.
The company reported net loss for the fourth quarter 2007 of
US$21.8 million compared to a net loss of US$18.9 million for
the same period the prior year.
"The fourth quarter was challenging for the company primarily as
a result of the rapid and significant increases in raw material
costs during the quarter," Veronica (Ronee) M. Hagen, PGI's
chief executive officer, said. "The cost increases could not be
offset by sales price adjustments within the fourth quarter due
to the timing of price increases with our customers under
contract. However, the underlying business initiatives were in
place, volume in the disposable markets remained steady and the
general fundamentals of our business and capacity for growth
remain strong."
Liquidity and Capital Resources
The company's principal sources of liquidity for operations and
expansions are funds generated from operations and borrowing
availabilities under the Credit Facility, consisting of a
revolving credit facility of US$45 million and a first-lien term
loan of US$410 million. The revolving credit portion of the
Credit Facility terminates on Nov. 22, 2010, and the remaining
balance of the first-lien term loan is due Nov. 22, 2012.
At Dec. 29, 2007, the company was in compliance with all such
covenants. Additionally, as of Dec. 29, 2007, the company has
no outstanding borrowings under the revolving credit facility
and capacity under the revolving credit facility had been
reserved for outstanding letters of credit in the amount of
US$10.9 million.
Net cash provided by operating activities was US$40 million
during 2007, a US$26.8 million decrease from the US$66.8 million
provided by operating activities during 2006. The net decrease
from 2006 to 2007 in cash flows from operating activities was
impacted by improved cash generated from gross profit on sales
during fiscal 2007 being more than offset by increases in cash
expenditures related to special charges that reduced operating
income during 2007 and changes in cash employed in working
capital during the periods.
The company has working capital of approximately US$176 million
at Dec. 29, 2007, compared with US$159.4 million at
Dec. 30, 2006. Accounts receivable at Dec. 29, 2007, was
US$139.5 million as compared to US$129.3 million on
Dec. 30, 2006, an increase of US$10.2 million of which a
significant amount was related to the movement of foreign
currencies versus the U.S. dollar.
Additionally, the increase in accounts receivable during 2007
was affected by sales dollar increases and sales increases in
regions with longer payment cycles.
Inventories at Dec. 29, 2007, were US$139.7 million, an increase
of US$8.0 million, due to foreign currency exchange, from
inventories at Dec. 30, 2006, of US$131.7 million, with
component increases in finished goods and work-in-process of
US$7.8 million and $2.6 million, and with a decrease in raw
materials of US$2.4 million. Additionally, inventory changes in
fiscal 2007 were affected by raw material cost increases, the
increases in inventory to effectively service the growth in
sales and inventory builds to transition the medical fabric
finishing from the U.S. to China and facilitate other plant
consolidation efforts.
Accounts payable and accrued liabilities at Dec. 29, 2007, were
US$150.4 million as compared to US$143.5 million at
Dec. 30, 2006, an increase of US$6.9 million, with a significant
component of such increase attributable to foreign currency
movements.
The increase in accounts payable and accrued liabilities from
Dec. 30, 2006, to Dec. 29, 2007, was impacted by the effects of
currency movements, construction in progress, accruals with
respect to incentive compensation plans and the ramp-up of its
new line in Suzhou, China, partially offset by the closure of
three of our plants in fiscal 2007, faster payment of trade
payables, including acceptance of vendor discounts, and changes
in terms regarding purchases of raw materials from certain
vendors, well as the movement of certain purchases of raw
materials, for which there is limited availability, to vendors
that have required the company to pay cash prior to delivery.
At Dec. 29, 2007, the company's balance sheet showed total
assets of US$750.671 million, total liabilities of
US$632.139 million and total shareholders' equity of
US$98.532 million.
About Polymer Group Inc.
Headquartered in Charlotte, North Carolina, Polymer Group Inc.
(OTC:POLGA) -- http://www.polymergroupinc.com/-- is a global
manufacturer and marketer of nonwoven and oriented polyolefin
products. The company supplies engineered materials to a number
of consumer and industrial product manufacturers in the world.
The company's product offerings are sold to converters that
manufacture a range of end-use products. It is also a producer
of spunmelt and spunlace products, and employs a range of
nonwovens technologies that allow it to supply products tailored
to customers' needs. The company develops, manufactures and
sells an array of products. The company has operations in
Argentina.
* * *
Polymer Group Inc. continues to carry Moody's Investor Service's
'B1' bank loan debt and long term corporate family ratings which
were placed in November 2005.
WELL COMPANY: Proofs of Claim Verification is Until May 23
----------------------------------------------------------
Juan Jose Esturo, the court-appointed trustee for Well Company
S.R.L.'s bankruptcy proceeding, will be verifying creditors'
proofs of claim until May 23, 2008.
Mr. Esturo will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Buenos Aires, Argentina, 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 Well Company 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 Well Company's
accounting and banking records will be submitted in court.
Infobae didn't state the reports submission deadlines.
Mr. Esturo is also in charge of administering Well Company's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Juan Jose Esturo
Reconquista 336
Buenos Aires, Argentina
ZONDA COLOR: Proofs of Claim Verification Deadline is May 30
------------------------------------------------------------
Santos Adolfo Jorge, the court-appointed trustee for Zonda Color
S.A.'s bankruptcy proceeding, will be verifying creditors'
proofs of claim until May 30, 2008.
Mr. Jorge will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Buenos Aires, Argentina, 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 Zonda Color 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 Zonda Color's
accounting and banking records will be submitted in court.
Infobae didn't state the reports submission deadlines.
Mr. Jorge is also in charge of administering Zonda Color's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Santos Adolfo Jorge
Junin 55
Buenos Aires, Argentina
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CENTENARY HOLDINGS: Proofs of Claim Filing Deadline is April 16
---------------------------------------------------------------
Centenary Holdings Ltd.'s creditors have until April 16, 2008,
to prove their claims to Robin J. Mayor, 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.
Centenary Holdings' shareholders agreed on March 31, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CENTENARY HOLDINGS: Sets Final Shareholders Meeting for May 5
-------------------------------------------------------------
Centenary Holdings Ltd. will hold its final general meeting on
May 5, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman,
Clarendon House, 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.
Centenary Holdings' shareholders agreed on March 31, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
MONTPELIER RE: Thomas Busher to Head European Operations
--------------------------------------------------------
Montpelier Re Holdings Ltd. has appointed Thomas G S Busher as
Head of European Operations, effective July 1, 2008.
Mr. Busher is a founding member of Montpelier’s management and
is Deputy Chairperson and Chief Operating Officer of the
Montpelier Group. He is a director of Spectrum Syndicate
Management Limited, which manages Montpelier Syndicate 5151 at
Lloyd’s, and is also Chairperson of Montpelier Europa AG,
Montpelier’s Swiss Lloyd’s Coverholder.
Chief Executive Officer and Chairperson, Anthony Taylor said:
"Tom has played a key role in the development of the Group since
its inception, most recently in the establishment of our Lloyd’s
and related US and Swiss platforms. His many years of
experience in Lloyd’s, which dates back beyond the time when we
both first worked together at Wellington Underwriting over 20
years ago, makes him the ideal candidate to be entrusted with
the long term build-out of our European operations.”
The company further announced that Mr. Busher has entered into a
new Service Agreement effective July 1, 2008, which secures his
services as Deputy Chairperson and Chief Operating Officer for
three years, and which may be extended thereafter by mutual
agreement.
Mr. Taylor continued, "We have now concluded our recent round of
senior management appointments. We have a strong team in place
supporting every aspect of our business across all our
platforms, and we continue to execute on our diversification
strategy in a measured way, with the emphasis on organic
growth."
About Montpelier Re Holdings Ltd.
Headquartered in Bermuda, Montpelier Re Holdings Ltd. --
http://www.montpelierre.bm-- through its operating subsidiary
Montpelier Reinsurance Ltd., provides customized, innovative,
and timely reinsurance and insurance solutions to the global
market. The company has operations in the United States and
Europe.
* * *
To date, Montpelier Re Holdings holds A.M. Best's "bb+"
subordinated debt rating and "bb" preferred stock rating.
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B R A Z I L
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AMERICAN BANKNOTE: Moody's Rates BRL165MM Sr. Debentures at Ba2
---------------------------------------------------------------
Moody's America Latina Ltda. assigned a Aa3.br Brazil National
Scale Rating and a Ba2 local currency rating to the BRL165
million senior unsecured debentures due 2013 to be issued by
American Banknote S.A in the local market. Proceeds from the
debentures, expected to be received in April 2008, will be used
to finance the acquisition of Interprint S.A, one of American
Banknote's largest competitors. The rating outlook is stable.
The Ba2 rating on the debentures reflects American Banknote's
leading market position in the Brazilian plastic cards and
identification systems businesses, its low leverage and strong
liquidity, long term client relationships, conservative
management and recognized expertise in secured printing. The
rating is constrained by the company's relatively small size,
the exposure of its revenues to a few large clients and the
risks in its business associated with the development of new
technologies and changes in consumer preferences, since the
company does not make large investments in research and
development, unlike its global peers.
American Banknote has shown strong sales growth in recent years
in all segments in which it operates, particularly in its
plastic cards business for clients in the financial and
telecommunications sectors. Sales growth stems not only from
organic growth, but also from strategic acquisitions that have
allowed the company to access new technologies and diversify its
activities. Boosted by robust operating margins, as measured by
average three-year EBITDA margins of 26%, cash flows and
profitability have been improving. American Banknote also has
relatively limited capital expenditure requirements, moderate
dividend distributions and virtually no interest-bearing debt
other than the planned debentures. The company's conservative
financial policy is appropriate mainly because of the potential
volatility of net sales and cash flow stemming from its exposure
to a few large clients and potential new entrants to its
markets.
The plastic financial cards business in Brazil has grown at a
CAGR of over 20% in the past four years and should continue to
post strong expansion due to low penetration, with an estimated
average of 2.4 cards per capita in Brazil, versus a U.S. average
of more than 5 cards per capita. Since there is no significant
barrier to entry for new competitors, the rating incorporates
the possibility that American Banknote could eventually lose
some of its existing contracts or experience a drop in its
operating margins. The acquisition of Interprint is an
important strategic step for the company, and will allow it to
consolidate its leading market share position in Brazil and
attain synergy gains and greater scale, which ultimately is
likely to enhance the company's competitive position versus
larger global players.
American Banknote has a relevant leading market share in the
plastic cards and identification systems markets. The company
benefits from existing synergies between its three operating
divisions by offering integrated solutions. These can range
from the manufacturing of cards and driver's licenses and
recording personal data and information management to printing,
handling and distributing a diversified range of products.
Bradesco (A1/Stable) and Telemar (Baa2/Stable), American
Banknote's two largest clients, together represent approximately
39% of its net revenues. After the acquisition of Interprint,
these two accounts will represent approximately 25% of revenues.
In spite of the strong relationship with these two clients
developed over the past decade, revenues from these clients
could be volatile because contracts are subject to periodic
renewal through a bidding process. The loss of either of these
clients would have an immediate negative impact on cash flow and
profitability.
The rise of new technologies and changes in consumer preferences
could affect the demand for both financial cards and phone
cards. The growing utilization of new electronic payment forms
could threaten the use of plastic cards, while a decline in the
consumption of phone cards could result from new forms of
recharging pre-paid cell phones. The consumption of financial
and phone cards is likely to keep growing in the medium term,
but at a lower pace as saturation is reached. The introduction
of value-added products such as chip cards and SIM cards may
fuel growth in the plastic cards business, partially offsetting
losses resulting from the increased penetration of traditional
financial cards.
Based in Brazil, American Banknote S.A --
http://www.abnote.com.br/-- is a public listed company whose
major shareholder is ABN Equities, which holds 33.7% of voting
and total capital. The company holds a leading position in the
supply of plastic cards, identification systems and print
services. The company offers a wide range of secure printed
material, customized services, ID systems and associated
products. In 2007, the company sold 770 million cards, 9.3
million driver's licenses and ID cards and processed 12 thousand
tons of paper. In 2007, American Banknote posted consolidated
net sales of BRL462 million and EBITDA of BRL128 million.
Interprint posted Consolidated Net Sales of BRL282.3 million
and EBITDA of BRL59.8 million in 2007. The company also has
factories and branches in Argentina, Chile and Puerto Rico.
ASPEN TECH: Appoints KPMG as New Independent Accounting Firm
------------------------------------------------------------
The Audit Committee of Aspen Technology Inc.'s Board of
Directors has appointed KPMG LLP as its independent registered
public accounting firm for the fiscal year ending June 30, 2008.
As disclosed on Jan. 16, 2008, Deloitte & Touche LLP declined to
stand for re-appointment for the fiscal 2008 audit. There was
no disagreement between the company and Deloitte on any matter
of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure.
About Aspen Technology
Based in Cambridge, Massachusetts, Aspen Technology Inc.
(Nasdaq:AZPN) -- http://www.aspentech.com/-- provides software
and professional services that help process companies improve
efficiency and profitability by enabling them to model, manage
and control their operations. The company has locations in
Brazil, Malaysia and France.
At March 31, 2007, the company's consolidated balance sheet
showed US$273.0 million in total assets, US$154.5 million in
total
liabilities, and US$118.5 million in total stockholders' equity.
* * *
Moody's Investor Service placed the company's long-term
corporate family rating at B2 and its equity-linked rating at
Caa1 in October 2001. These ratings still hold to date with a
stable outlook.
BANCO DO BRASIL: Will Buy Shares in Agribusinesses
--------------------------------------------------
Banco do Brasil's Agribusiness Director Jose Carlos Vaz told a
Brazilian financial daily that the bank will purchase shares in
agribusinesses either directly or through private equity funds.
According to the daily, Banco do Brasil will look to invest in
agribusinesses which will go public in future.
Banco do Brasil is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and more than 7,000
points of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Feb. 29, 2008, Moody's Investors Rating Service assigned a
Ba2 foreign currency deposit rating to Banco do Brasil.
BANCO PANAMERICANO: UBS Pactual Puts Buy Recommendation on Firm
---------------------------------------------------------------
Investment bank UBS Pactual has assigned a 'buy' recommendation
on Banco Panamericano's shares, Business News Americas reports.
BNamericas relates that UBS Pactual placed a one-year target
price of BRL12.00 per share on Banco Panamericano.
According to BNamericas, Banco Panamericano raised some
BRL700 million from its December 2007 debut on the Sao Paulo
stock exchange Bovespa, pricing 70 million shares at BRL10 each.
Since then Banco Panamericano shares have traded below the
initial public offering price.
UBS Pactual told BNamericas that the increase of employment in
Brazil will prop up consumer credit growth in the mid-term,
benefiting a consumer finance banks like Banco Panamericano.
Analyst Bruno Pereira said in a report, "We view Panamericano as
well positioned to benefit from increased consumer credit
penetration with a diversified product offering and expertise in
low income credit."
Banco Panamericano expects to increase its loan book to
BRL8.60 billion by year-end, compared to BRL7.09 billion at the
end of 2007, BNamericas states.
Banco PanAmericano is headquartered in Sao Paulo, Brazil and had
total assets of BRL2.54 billion and equity of BRL413 million in
March 2006.
* * *
In March 2008, Moody's Investors Service assigned a Ba2 global
local-currency deposit rating on Banco Panamericano S.A.
Moody's also assigned a Ba2 foreign currency deposit rating on
the bank.
BRASIL TELECOM: Sees 57% Investments Increase This Year
-------------------------------------------------------
Brasil Telecom Participacoes SA's Investor Relations Director
Paulo Narcelio Simaes Amaral said that the company expects
investments to increase 57% to BRL2.2 billion in 2008, from
BRL1.40 billion in 2007, Business News Americas reports.
BNamericas relates that the increase in investments is due to
the license acquisitions for IPTV and 3G services and the
extension of wireless services to a broader client base.
BNamericas notes that Brasil Telecom identified telecoms trends
in 2008 as the substitution of fixed for mobile lines, increased
broadband adoption, new technologies like 3G and WiMax, voice
over Internet protocol, "erosion of business lines with the
advent of triple and quadruple play (the convergence of
services), and more content and services as SMS."
According to BNamericas, Brasil Telecom must keep its current
eight million clients by offering new services and extension of
products to the lower income subscribers to fight the constant
loss of fixed telephony clients.
Brasil Telecom's Executive Technical Director Francisco Aurelio
Sampaio Santiago commented to BNamericas, "Fixed telephony
operations represent 70% of the company's revenues. We need to
add new services to minimize the fall in adoption. We started
offering the prepaid fixed telephony service with 50 credits
costing BRL19.90, 100 credits, and 200 credits costing BRL40.90.
We have 113,000 clients so far [in the prepaid system for low-
income clients] and 43% of them had never had a fixed line and
57% were out of the fixed base for at least five months."
BNamericas says that each credit lets the caller have certain
amount of minutes, which varies depending on the type of the
call.
Brasil Telecom Expects mobile service clients to increase by 30%
to 5.6 million this year, compared to last year, according to
the report.
Mr. Santiago told BNamericas that for broadband services, Brasil
Telecom must add value and form partnerships with other firms to
increase sales. "In order to increase our fixed broadband user
base by 22% in 2008, we have made a deal with [Brazil's largest
PC maker] Positivo [Informa¡tica] so their computers are offered
together with our broadband service," Mr. Santiago commented to
BNamericas.
Mr. Santiago also told BNamericas that Brasil Telecom will
slowly expand the fiber to the premise service (FTTx), which is
expensive. "FTTx is three times more expensive than ADSL to
buildings and seven times more expensive to homes," Mr. Santiago
said. He further revealed that
Brasil Telecom reportedly is also open to acquiring smaller
telecoms firms.
Brasil Telecom's net operational revenues are expected to grow
3.4% this year from BRL11.1 billion last year, and costs
expected to increase 2.8% from BRL7.26 billion, BNamericas
states.
Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes
SA -- http://www.brasiltelecom.com.br-- is a holding company
that conducts substantially all of its operations through its
wholly owned subsidiary, Brasil Telecom SA. The fixed-line
telecommunications services offered to the company's customers
include local services, including all calls that originate and
terminate within a single local area in the region, as well as
installation, monthly subscription, measured services, public
telephones and supplemental local services; intra-regional
long-distance services, which include intrastate and interstate
calls; interregional and international long-distance services;
network services, including interconnection and leasing; data
transmission services; wireless services, and other services.
* * *
To date, Brasil Telecom carries Moody's Investors Service's Ba1
senior unsecured and credit default swap ratings.
COMPANHIA SIDERURGICA: To Pay Shareholders BRL1.24B in Dividends
----------------------------------------------------------------
Companhia Siderurgica Nacional will pay shareholders
BRL1.24 billion in dividends.
Business News Americas relates that the payment is equal to
BRL1.62 per share and corresponds to last year's earnings.
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets, tin
mill products and tinplate. The company also runs its own iron
ore, manganese, limestone and dolomite mines and has strategic
investments in railroad companies and power supply projects.
The group also operates in Brazil, Portugal and the U.S.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services revised its
outlook on Brazil-based steel maker Companhia Siderurgica
Nacional and related entity National Steel S.A. to positive from
stable. At the same time, Standard & Poor's affirmed its 'BB'
corporate credit rating on CSN and its 'B+' rating on NatSteel.
DELPHI CORP: Ex-Parent GM May Assume More Pension Liabilities
-------------------------------------------------------------
General Motors Corp. may assume more of Delphi Corp.'s pension
liabilities to help its former unit and key auto parts supplier
emerge from bankruptcy. GM already has agreed to assume
US$1,500,000,000 in pension liabilities on Delphi's books, and
is now in talks to increase that, The Wall Street Journal said,
citing people familiar with the matter.
The Pension Benefit Guaranty Corp. would favor a proposal by GM
to assume more of Delphi's pension obligations. "For the last
two years we have been fighting to preserve the Delphi pensions,
and this looks like it could be a very positive development,"
Charles E.F. Millard, the PBGC's director, said in an e-mail,
according to WSJ.
As reported in the Troubled Company Reporter on Nov. 15, 2007,
GM agreed to pay US$300,000,000 to US$400,000,000 a year until
at least 2015, pursuant to settlements reached with Delphi and
its labor union United Automobile, Aerospace & Agricultural
Implement Workers of America. GM, in exchange for, among
others, an extension of it supply agreement with Delphi, will
reimburse a certain portion of Delphi's U.S. hourly labor costs
incurred to produce systems, components, and parts for GM from
Oct. 1, 2006, through Sept. 14, 2015.
GM has also committed to provide funding to US$2,825,000,000 of
the US$6,100,000,000 required by Delphi in order to exit
Chapter 11.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries. In 2007, nearly 9.37 million GM cars
and trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier
of vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than 75
million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on
Dec. 20, 2007. The Court confirmed the Debtors' First Amended
Plan on Jan. 25, 2008.
(Delphi Bankruptcy News, Issue No. 121; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported in the Troubled Company Reporter on March 28, 2008,
Moody's Investors Service raised the rating on Delphi Corp.'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.
As reported in the Troubled Company Reporter on March 17, 2008,
Standard & Poor's Ratings Services still expects to assign a 'B'
corporate credit rating to Delphi Corp. if the company emerges
from bankruptcy in early April.
S&P has revised its expected issue-level ratings because changes
to the structure of the proposed financings have affected
relative recovery prospects among the various term loans. S&P's
expected ratings are:
a) The US$1.7 billion "first out" first-lien term loan B-1 is
expected to be rated 'BB-' (two notches higher than the
expected corporate credit rating on Delphi), with a '1'
recovery rating, indicating the expectation of very high
(90%-100%) recovery in the event of payment default.
b) The US$2 billion "second out" first-lien term loan B-2 is
expected to be rated 'B' (equal to the corporate credit
rating), with a '4' recovery rating, indicating the
expectation of average (30%-50%) recovery in the event of
payment default.
c) The US$825 million second-lien term loan is expected to be
rated 'B-' (one notch lower than the corporate credit
rating), with a '5' recovery rating, indicating the
expectation of modest (10%- 30%) recovery in the event of
payment default.
GENERAL MOTORS: May Assume More Delphi Corp. Pension Liabilities
----------------------------------------------------------------
General Motors Corp. may assume more of Delphi Corp.'s pension
liabilities to help its former unit and key auto parts supplier
emerge from bankruptcy. GM already has agreed to assume
US$1,500,000,000 in pension liabilities on Delphi's books, and
is now in talks to increase that, The Wall Street Journal said,
citing people familiar with the matter.
The Pension Benefit Guaranty Corp. would favor a proposal by GM
to assume more of Delphi's pension obligations. "For the last
two years we have been fighting to preserve the Delphi pensions,
and this looks like it could be a very positive development,"
Charles E.F. Millard, the PBGC's director, said in an e-mail,
according to WSJ.
As reported in the Troubled Company Reporter on Nov. 15, 2007,
GM agreed to pay US$300,000,000 to US$400,000,000 a year until
at least 2015, pursuant to settlements reached with Delphi and
its labor union United Automobile, Aerospace & Agricultural
Implement Workers of America. GM, in exchange for, among
others, an extension of it supply agreement with Delphi, will
reimburse a certain portion of Delphi's U.S. hourly labor costs
incurred to produce systems, components, and parts for GM from
Oct. 1, 2006, through Sept. 14, 2015.
GM has also committed to provide funding to US$2,825,000,000 of
the US$6,100,000,000 required by Delphi in order to exit
Chapter 11.
About Delphi Corp.
Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier
of vehicle electronics, transportation components, integrated
systems and modules, and other electronic technology. The
company's technology and products are present in more than 75
million vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on
Dec. 20, 2007. The Court confirmed the Debtors' First Amended
Plan on Jan. 25, 2008.
(Delphi Bankruptcy News, Issue No. 121; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries. In 2007, nearly 9.37 million GM cars
and trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services. The company has operations in Brazil
* * *
As reported in the Troubled Company Reporter on March 26, 2008,
Standard & Poor's Ratings Services placed the ratings on General
Motors Corp., American Axle & Manufacturing Holdings Inc., Lear
Corp., and Tenneco Inc. on CreditWatch with negative
implications. The CreditWatch placement reflects S&P's decision
to review the ratings in light of the extended American Axle
(BB/Watch Neg/--) strike.
The work stoppage that began Feb. 25 at American Axle's U.S.
United Auto Workers plants has forced closure of many GM
(B/Watch Neg/B-3) plants, as well as plants of certain GM
suppliers. The strike began after the expiration of the four-
year master labor agreement with American Axle. Although S&P
still expects American Axle and the UAW to reach an agreement
that will reflect more competitive labor costs, the timing is
unknown.
To resolve the CreditWatch listings, S&P's will assess the
strike's impact on the companies' credit profiles, particularly
liquidity, once production resumes. S&P could lower the ratings
any time prior to a resolution of the Axle strike if the
liquidity of the companies becomes compromised, although
downgrades are not likely for another several weeks.
As reported in the Troubled Company Reporter on Feb. 28, 2008,
Fitch Ratings has affirmed the Issuer Default Rating of General
Motors at 'B', with a Rating Outlook Negative.
As reported in the Troubled Company Reporter on Nov. 9, 2007,
Moody's Investors Service affirmed its rating for General Motors
Corporation (B3 Corporate Family Rating, Ba3 senior secured,
Caa1 senior unsecured and SGL-1 Speculative Grade Liquidity
rating) but changed the outlook to Stable from Positive. In an
environment of weakening prospects for US auto sales GM has
announced that it will take a non-cash charge of US$39 billion
for the third quarter of 2007 related to establishing a
valuation allowance against its deferred tax assets in the US,
Canada and Germany.
As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract. The outlook is stable.
EMI GROUP: Douglas Merrill Leads Digital Music Business
-------------------------------------------------------
EMI Music has appointed Google's chief information officer and
one of its most senior global executives, Douglas Merrill, to
lead its growing digital music business.
As president of EMI Music's digital business, Mr. Merrill will
head a new global function which brings together for the first
time leadership responsibility for all of the company's digital
strategy, innovation, business development, supply chain and
global technology activities.
"Douglas is a proven agent of change who combines broad business
intellect with a deep engineering background. He has been a key
member of the management team at Google which has created more
value than any other consumer internet company by focusing
relentlessly on tools that enable consumers to do things more
effectively. His experience, talents and his ability to drive
innovation will be enormously valuable to EMI and to its
artists," Guy Hands, CEO of Terra Firma and chairman of EMI
Group disclosed.
"I have two passions. One is creating platforms and tools that
make it easier for consumers to achieve their goals. The other
is music. This exciting new role at EMI is a unique opportunity
for me to be able to put those two passions to work together and
help deliver EMI’s objective of providing the best services in
the world to consumers and musicians," Mr. Merrill said.
Merrill starts work at EMI on April 28, 2008, and will be based
at EMI Music’s Los Angeles headquarters in the Capitol Tower.
He will report to Guy Hands.
Douglas Merrill joined Google late in 2003. During his five
years with the company, he rose to become chief information
officer and vice president of engineering, responsible for all
billing and revenue technology and processes for Google
worldwide, together with internal engineering and support
worldwide.
He has led multiple strategic efforts including Google’s 2004
IPO and its related investor program and regulatory activities.
He was also responsible for the 2006 launch of Google Checkout,
which is now a multi-billion dollar business. In 2007 he was
tasked with leading the turnaround of Google’s radio advertising
business which he put back on a growth trajectory. Most
recently, he was asked by Google CEO, Eric Schmidt, to drive
Google’s strategy and business development activity in the
Middle East and sub-Saharan Africa, the two fastest growing
broadband populations in the world.
Previously, Douglas was a senior vice president at Charles
Schwab and Co, one of America’s largest financial services
providers. At Schwab, he was responsible for such functions as
information security, common infrastructure, and human resources
strategy and operations. Prior to his tenure there, Douglas
worked at Price Waterhouse in security implementation practices.
Before that, he was an information scientist at the RAND
Corporation, where he studied topics such as computer simulation
in education, team dynamics and organizational effectiveness.
Douglas holds a BA from the University of Tulsa in Social and
Political Organisation, and an MA and Ph.D. in Psychology from
Princeton University.
Emi Group has operations in Brazil.
HERCULES INC: Debt Reduction Cues Moody's to Up Rating to 'Ba1'
---------------------------------------------------------------
Moody's Investors Service raised the corporate family rating of
Hercules Incorporated to Ba1 from Ba2, adjusted other debt
ratings upward, and moved the outlook on the rating to positive.
This concludes the review for possible upgrade that was
initiated on Jan. 30, 2008.
The Ba1 CFR (and positive outlook) reflect Hercules' successful
efforts at debt reduction in past years and most recently in
2007. Hercules reduced balance sheet debt by roughly
US$200 million in 2007 (to about US$795 million) and this
reduction, along with strong cash flows, has caused credit
metrics to improve to levels that support the Ba1 CFR.
Moody's assigned a positive outlook to Hercules ratings in June
of 2007 in anticipation of Hercules' ongoing positive credit
metric performance. At that time, Moody's stated that provided
that capital expenditures remain moderate, there are no large
acquisitions and prospective dividend actions or share
repurchases are prudently sized, the company should be able to
generate retained cash flow to adjusted total debt above 20%,
free cash flow to adjusted total debt of over 10%, and a fixed
charge coverage ratio (EBITDA to interest) of over 4.5 times.
At the end of 2007 these metrics were 33%, 23%, and 5.0 times
respectively.
The positive outlook reflects Moody's expectation of further
modest debt reduction in 2008 and 2009 (after which Moody's
expects absolute debt levels to stabilize), that Hercules'
asbestos settlements and expenses will not exceed US$35 million
in any twelve month period and that the number of asbestos case
levels will continue to decline.
Provided capital expenditures remain moderate, there are no
large acquisitions and prospective dividend actions or share
repurchases remain at prudent levels the company should be able
to generate retained cash flow to adjusted total debt above 20%,
free cash flow to adjusted total debt of over 10%, and a fixed
charge coverage ratio (EBITDA to interest) of over 4.5 times.
If these metrics are realized on a sustainable basis Moody's
could reassess the appropriateness of the Ba1 ratings by year
end 2009. Conversely, an unexpectedly large increase in legacy
liabilities, debt financed share repurchases or bolt on
acquisitions that would cause debt to remain at or above US$800
million could cause Moody's outlook to return to stable.
Upgrades:
Issuer: Hercules Incorporated
-- Corporate Family Rating, Upgraded to Ba1 from Ba2
-- Probability of Default Rating, Upgraded to Ba1 from Ba2
-- Senior Secured Bank Credit Facility, to Baa2 from to Baa3,
15% - LGD2
-- Senior Secured Regular Bond orDebenture, to Baa2 from to
Baa3, 15% - LGD2
-- Senior Unsecured Regular Bond or Debenture, Upgraded to
Ba1 from Ba3, 62% LGD4
-- Junior Subord. Regular Bond or Debenture, Upgraded to Ba2
from B1, to 92% - LGD6
-- Subord. Conv./Exch. Bond or Debenture, Upgraded to Ba2
from B1, to 92% - LGD6
Outlook Actions:
-- Outlook, Changed To Positive From Rating Under Review
Hercules Inc. (NYSE:HPC) -- http://www.herc.com/-- manufactures
and markets chemical specialties globally for making a variety
of products for home, office and industrial markets. The
company has its regional headquarters in China and Switzerland,
and a production facility in Brazil.
ISA CAPITAL: Fitch Holds Currency Issuer Default Ratings at BB
--------------------------------------------------------------
Fitch Ratings has affirmed ISA Capital do Brasil S.A.'s foreign
and local currency Issuer Default Ratings at 'BB'. The rating
action applies to US$554 million in senior secured notes
outstanding. The rating outlook is stable.
ISA Capital do Brasil's ratings are based on the strong credit
quality of Companhia de Transmissao de Energia Eletrica
Paulista, its sole revenue source and only operating asset.
Companhia de Transmissao's strong credit quality is attributable
to the company's monopoly position, its stable and predictable
operating cash flow and its financially sound credit profile.
The ratings also reflect the noteholders' structural
subordination to Companhia de Transmissao's obligations, as well
as the company's concession renewal and refinancing risks.
Although, Companhia de Transmissao's credit quality is strong,
ISA Capital's credit quality is somewhat weaker given that the
company only owns 37.5% of Companhia de Transmissao's total
capital and does not receive the full benefits of operating cash
flow. ISA Capital's debt service coverage ratios approximately
2.8 as of year end 2007. The company received dividends of
approximately BRL284 million and had interest expenses of BRL105
million during 2007. Going forward, ISA Capital is expected to
increase its cash reserves by approximately BRL100 million per
year during the next four years in order to cover the
amortization of the 2012 notes.
Companhia de Transmissao's monopoly position stems from its
exclusive right to provide electricity transmission services
through its three concessions expiring in 2015, 2031 and 2038,
respectively. Furthermore, two Companhia de Transmissao
concession are located in the state of Sao Paulo, which accounts
for one-third of Brazil's overall GDP, making it one of the
largest electricity consumers in the country, and the third one,
which will still be constructed, is in the Northeast of Brazil.
The company's strong market position should further benefit the
company when it participates in future bids for new transmission
lines in Brazil.
Companhia de Transmissao generates a stable and predictable cash
flow, exhibiting the low business risk profile of an electric
transmission utility company. Its tariff-setting mechanism is
straightforward, receiving minor intervention from its
regulator. The company's tariffs are fixed and 86.4% of its
permitted annual revenue will not be revised by the regulator
until 2015, being adjusted by inflation every July. The other
13.6% are revised by the regulator every four years and
automatically adjusted by inflation every year. Its revenue is
stable and exempt from volumetric risk. The permitted annual
revenue, which represented approximately 99% of the company's
total revenue in 2007, is based on the electricity transmission
assets available to users, instead of the transmitted
electricity volume.
Companhia de Transmissao's credit metrics are supportive of its
holding company's credit ratings. The operating asset credit
metrics are characterized by low leverage and strong interest
coverage. Since ISA's acquisition, Companhia de Transmissao's
EBITDA margin has improved, as expected, to approximately 86% in
2007 fiscal year from the pre-acquisition 54% in the first half
of 2006. Its current EBITDA margin is more in line with its
peers. Healthy operating cash flow has allowed the company to
finance its growth with internally generated cash and thus
maintain low leverage levels.
ISA Capital's ratings also reflect the strong covenant package
that, among other things, limits Companhia de Transmissao's
future level of indebtedness. The company's expected leverage
and interest coverage should be well within the limits imposed
by the covenants, which require leverage of no more than 3.0 and
interest coverage of at least 3.0. In addition, under the
covenant package, ISA Capital is not allowed to declare or pay
any dividends or make any distributions.
Headquartered in Sao Paulo, Brazil, ISA Capital do Brasil --
http://www.isacapital.com.br/-- is a holding company created to
participate in the privatization of Companhia de Transmissao de
Energia Electrica Paulista (CTEEP). The company was
incorporated with a US$378 million equity contribution by
Interconexion Electrica S.A. E.S.P. and a US$609 million
intercompany loan from Interconexion Electrica.
CTEEP, ISA Capital's sole source of revenue and only operating
asset, is a privately owned electricity transmission company
located in the state of Sao Paulo. The company holds three
concessions for the transmission of electricity in the state of
Sao Paulo, the first one expiring in 2015 and the second one in
2031. The third concession contract, expiring in 2038, was
signed on March 17,2008, which comprises the construction,
operating and maintenance of two transmission lines in the
Northeast of Brazil, that CTEEP won at November 2007's auction.
KRATON POLYMERS: Moody's Cuts Corporate Family Rating to B2
-----------------------------------------------------------
Moody's Investors Service lowered the ratings of Kraton Polymers
LLC (Kraton - corporate family rating now B2 from B1) and places
the ratings under review for possible further downgrade
following the fourth quarter earnings announcement that
reflected weaker than expected performance. In addition,
management announced that it was in receipt of funds from its
sponsor that allowed the firm to successfully cure a prospective
default in the debt covenants on its credit facilities. While
the willingness of the sponsors to work with management to
provide funds to cure a covenant breech is a positive for
Kraton's liquidity, the need for such a cure, reflecting
weakness in the ability to generate cash flow to meet covenants,
is a key credit concern.
Kraton's and the industry's margins have been adversely affected
by unusually rapid increases in raw material prices and the
difficulty in raising product prices to offset these increases.
Given the downturn in the North American economy, which Moody's
feels may be prolonged, this margin pressure is expected to
continue.
This review is expected to be resolved by the end of May 2008.
In the review Moody's will focus on management's plans to: 1)
successfully raise product prices to offset raw material
increases, 2) address the tight covenant levels under the
existing credit facilities and possible amendments to the
facility, and 3) further cost cutting programs to aid in cash
generation.
Ratings Lowered and On Review for Possible Downgrade:
Issuer: Kraton Polymers LLC
-- Corporate Family Rating, lowered to B2 from B1, Placed on
Review for Possible Downgrade
-- Probability of Default Rating, lowered to B2 from B1 Placed
on Review for Possible Downgrade
-- Senior Secured Bank Credit Facility, lowered to B1 from Ba3,
Placed on Review for Possible Downgrade,
-- Senior Unsecured Subordinated Bond/Debenture, lowered to
Caa1 from B3, Placed on Review for Possible Downgrade,
Outlook Actions:
Issuer: Kraton Polymers LLC
Outlook, Changed To Rating Under Review From Negative
In November of 2007, Moody's affirmed Kraton's B1 corporate
family rating and revised the company's outlook to negative as
Moody's expected continued margin weakness, due to delays in
passing on the full extent of raw material cost increases to
Kraton customers, which would diminish free cash flow from
operations over the next 12-18 months. Kraton's margins
continue to be adversely impacted by an upturn in raw material
costs, particularly in the fourth quarter of 2007, such that
gross margins have dropped to 14% from 20% year-over-year
despite a measure of success in achieving some price increases
earlier in 2007.
For all of 2007, Kraton's cost of goods sold, as measured on a
US$/metric ton basis, have increased 9% and only 41% of these
higher costs have been passed on to customers. Since fiscal
2005 Kraton's cost of goods sold per metric ton of sales volume
have increased by 37%. Margin declines have also served to
offset the benefits of successful programs to cut fixed costs.
In 2007, Moody's also indicated the ratings or outlook could be
lowered if Kraton significantly under performed Moody's forecast
such that debt to EBITDA exceeded 5.5 times or retained cash
flow to total debt declined below 7% over the next 18 months.
Due to margin pressures, adjusted debt to EBITDA was 9.1 times
and retained cash flow to total adjusted debt declined below 4%
- metrics that support the review.
Moody's also views Kraton's liquidity profile as facing pressure
due to potential breaches of financial covenants. As of
Dec. 31, 2007, Kraton was in compliance with the applicable
financial ratios in the senior secured credit facility after
giving effect to an equity contribution by Kraton shareholders
in January 2008 in the amount of US$10 million, of which
US$9.6 million was used pursuant to the equity cure provisions
of Kraton's credit agreement. Kraton may not be able to
maintain these ratios or avail themselves of the equity cure
provisions of the credit facility in future periods.
A breach of any of the covenants or restrictions contained in
any of Kraton's existing or future financing agreements and
instruments, including the inability to comply with the required
financial covenants in the senior secured credit facility, could
result in an event of default under those agreements. Such a
default could allow the lenders under Kraton's financing
agreements to discontinue lending, to accelerate the related
debt as well as any other debt to which a cross-acceleration or
cross-default provision applies and to declare all borrowings
outstanding thereunder to be due and payable. In addition, the
lenders could terminate any commitments they had made to supply
Kraton with further funds. The credit facilities' leverage and
interest coverage covenants tighten in 2008, raising the
possibility that Kraton may fail to meet covenant tests by the
end of the second half of 2008 if margin pressure accelerates.
Kraton, headquartered in Houston, Texas, is a leading global
producer of styrenic block copolymers, or SBCs, which are
synthetic elastomers used in industrial and consumer
applications to impart favorable product characteristics such as
flexibility, resilience, strength, durability and
processability. Major end uses for Kraton's products include
personal care products, packaging and films, and IR Latex where
third quarter growth exceeds 5%. Other end uses include
adhesives, sealants, coatings, and channeling compounds where
third quarter growth is low to moderate at between 0-5% and a
paving and roofing business which experienced negative growth in
the third and fourth quarter. The company generated revenues of
US$1.1 billion for the year ending Dec. 31, 2007.
Its production facilities are located in the United States,
Germany, France, The Netherlands, Brazil, and Japan.
SCO GROUP: Gives Up Chapter 11 Plan; Lender to Buy Assets
---------------------------------------------------------
SCO Group Inc. has abandoned its proposed Chapter 11 plan of
reorganization after lender Stephen Norris & Co. Capital
Partners LP demanded other transactions, Steven Church of
Bloomberg News reports.
"We don't have a new deal," Bloomberg quotes Arthur Spector,
Esq., counsel to the Debtor, as saying during a status
conference with the court in Wilmington, Delaware, in regard
with the Debtor's plan. "But when we get the deal that we think
we are going to get, it's going to be better."
The lender is in discussion to acquire the Debtor's assets, Mr.
Spector said.
Joseph McMahon, Jr., Esq., told the United States Bankruptcy
Court for the District of Delaware, that this is the Debtor's
third effort to exit from Chapter 11 protection.
As reported in the Troubled Company Reporter on March 5, 2008,
the Debtor filed a Chapter 11 plan and Disclosure Statement with
the Court on Feb. 29, 2008.
The Debtors' Plan include:
i) full payment with interest, if applicable, of approved
creditors' claims as allowed on the effective date of the
Plan;
ii) full payment with interest, if applicable, of all claims
subject to pending litigation when and to the extent the
courts allow such claims; and
iii) distributions to equity holders.
The Plan allows the Debtors to focus its efforts on the
development, sales and support of its UNIX and mobile
technologies. The Plan also provides for the establishment of a
new board of directors as well as the appointment of a new Chief
Executive Officer on its effective date.
"This is an important milestone in emerging from Chapter 11
bankruptcy," said Jeff Hunsaker, President and Chief Operating
Officer of SCO Operations. "We have been working together with
the Stephen Norris Capital Partners team carefully preparing a
plan that will pay qualified creditors' claims, provide a return
to profitability, expand our business, and continue to provide
our customers and partners with the solutions and services they
need to run and grow their businesses.
"We continue to be encouraged by the feedback we are receiving
from our customers, partners and stockholders. One large
customer in Italy announced to us this week that after having
left our UNIX platform and trying Microsoft(R) Windows(TM) and
Linux, they are returning to SCO OpenServer 6 due to its
unmatched stability and reliability," said Hunsaker.
Stephen Norris Capital Partners has, subject to continued due
diligence, committed to provide up to US$100 million to finance
the SCO Plan of reorganization and to take the Company private.
Stephen Norris said, "This reorganization plan is a positive
step for SCO's customers, partners and stockholders and a major
win for all parties. This plan will enable it to grow its
business, especially outside the U.S., and if possible, settle
its outstanding litigation on a favorable and reasonable basis."
Mark Robbins, co-partner with Stephen Norris in SCO's investment
transaction said, "We have a firm belief in SCO's technology
platform and its potential to be expanded especially outside of
the United States. SCO has a solid customer base of industry
leaders. This Plan provides the necessary direction and
strategy to begin moving in a positive direction."
A full-text copy of the Disclosure Statement is available for
free at:
http://ResearchArchives.com/t/s?28bf
http://ResearchArchives.com/t/s?28c0
A full-text copy of the Chapter 11 Plan of Reorganization is
available for free at:
http://ResearchArchives.com/t/s?28be
Headquartered in Lindon, Utah, The S.C.O. Group Inc. (Nasdaq:
SCOX) fka Caldera International Inc.-- http://www.sco.com/--
provides software technology for distributed, embedded and
network-based systems, offering SCO OpenServer for small to
medium business and UnixWare for enterprise applications and
digital network services.
The company has office locations in Australia, Austria,
Argentina, Brazil, China, Japan, Poland, Russia, the United
Kingdom, among others.
The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead
Case No. 07-11337). Epiq Bankruptcy Solutions LLC, acts as the
Debtors' claims and noticing agent. The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors. The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008. The Debtors' schedules of assets and
liabilities showed total assets of US$9,549,519 and total
liabilities of US$3,018,489.
As reported in the Troubled Company Reporter on Feb. 12, 2008,
the Court further extended the Debtors' exclusive periods to
file a Chapter 11 plan until May 11, 2008; and solicit
acceptances of that plan until July 11, 2008.
* * *
As reported in the Troubled Company Reporter on Feb. 1, 2008,
Tanner LC in Salt Lake City, Utah, expressed substantial doubt
about The SCO Group Inc.'s ability to continue as a going
concern after auditing the company's financial statements for
the year ended Oct. 31, 2007. The auditing firm reported that
the company is a debtor-in-possession under Chapter 11 of the
U.S. Bankruptcy Code, has experienced significant and continuing
net losses, and is faced with substantial contingent liabilities
as a result of certain adverse legal rulings.
SILGAN HOLDINGS: Closes Silgan White Cap Acquisition in Brazil
--------------------------------------------------------------
Silgan Holdings Inc., as part of its previously reported
acquisition of Amcor Limited’s White Cap closures business in
Europe, Asia and South America, has completed the delayed
closing in Brazil.
Silgan White Cap is a worldwide supplier of an extensive range
of metal, composite and plastic vacuum closures to consumer
goods companies in the food and beverage industries. Silgan
White Cap Brazil is a leader in these markets in Brazil and
certain other South American countries.
Headquartered in Stamford, Connecticut, Silgan Holdings Inc. --
http://www.silganclosures.com/-- is a leading manufacturer of
consumer goods packaging products with annual net sales of
approximately US$2.9 billion in 2007. Silgan operates 69
manufacturing facilities in North and South America, Europe and
Asia. In North America, the company is the largest supplier of
metal containers for food products and a leading supplier of
plastic containers for personal care products. In addition,
Silgan is a worldwide supplier of metal, composite and plastic
vacuum closures for food and beverage products.
The firm has operations in Latin America, particularly in
Venezuela.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 25, 2007, Moody's Investors Service affirmed the corporate
family rating for Silgan Holdings Inc. at Ba2, the ratings on
the company's senior secured first lien credit facilities at Ba2
and the subordinated notes at B1. The outlook was affirmed at
stable.
==========================
C A Y M A N I S L A N D S
==========================
AIG ASIA: Will Hold Final Shareholders Meeting on April 8
---------------------------------------------------------
AIG Asia Direct Investment Fund Ltd. will hold its final
shareholders' meeting on April 8, 2008, at 10:00 a.m., at 35th
Floor, One Pacific Place, 88 Queensway, Hong Kong.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
AIG Asia's shareholders decided on March 3, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Lai Kar Yan (Derek) and Darach E. Haughey
35th Floor, One Pacific Place
88 Queensway, Hong Kong
Telephone: +852 2852 1659
Fax: +852 2850 8362
ALMAG LIMITED: Proofs of Claim Filing is Until April 7
------------------------------------------------------
Almag Limited's creditors have until April 7, 2008, to prove
their claims to Condor Nominee 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.
Almag's shareholder decided 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:
Condor Nominee Limited
c/o Barclays Private Bank & Trust
(Cayman) Limited
4th Floor FirstCaribbean House
25 Main Street, George Town
Grand Cayman KY1-1106, Cayman Islands
ALMAG LIMITED: Sets Final Shareholders Meeting for April 8
----------------------------------------------------------
Almag Limited will hold its final shareholders' meeting on
April 8, 2008, at 9:00 a.m., at 4th Floor FirstCaribbean House,
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.
Almag's shareholders decided 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:
Condo Nominee Limited
4th Floor FirstCaribbean House
Grand Cayman, Cayman Islands
CONTRA OFFSHORE: Proofs of Claim Filing Deadline is April 7
-----------------------------------------------------------
Contra Offshore Partners, Ltd.'s creditors have until
April 7, 2008, to prove their claims to Avalon 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.
Contra Offshore's shareholder decided on Dec. 27, 2007, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Avalon Management Limited
c/o P.O. Box 715
Grand Cayman KY1-1107, Cayman Islands
Telephone: (+1) 345 946-4422
Fax: (+1) 345 769-9351
CONTRA OFFSHORE: Will Hold Final Shareholders Meeting on April 8
----------------------------------------------------------------
Contra Offshore Partners, Ltd., will hold its final
shareholders' meeting on April 8, 2008, at 10:00 a.m., at
Avalon Management Limited, Third Floor, Zephyr House, Mary
Street, P.O. Box 715, Grand Cayman KY1-1107, Cayman Islands.
These matters will be taken up during the meeting:
1) accounting of the winding-up process;
2) giving explanation thereof; and
3) determining the manner in which the books,
accounts and documentation of the company and
of the liquidator should be maintained and
subsequently disposed.
Contra Offshore's shareholders decided 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:
Avalon Management Limited
Third Floor, Zephyr House
Mary Street, P.O. Box 715
Grand Cayman KY1-1107
Cayman Islands
IMOGEST LIMITED: Proofs of Claim Filing is Until April 7
--------------------------------------------------------
Imogest Limited's creditors have until April 7, 2008, to prove
their claims to Condor Nominee 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.
Imogest's shareholder decided on Feb. 18, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Condor Nominee Limited
c/o Barclays Private Bank & Trust
(Cayman)Limited
4th Floor FirstCaribbean House
25 Main Street, George Town
Grand Cayman KY1-1106, Cayman Islands
IMOGEST LIMITED: Will Hold Final Shareholders Meeting on April 8
----------------------------------------------------------------
Imogest Limited will hold its final shareholders' meeting on
April 8, 2008, at 10:00 a.m., at 4th Floor FirstCaribbean House,
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.
Imogest's shareholders decided on Feb. 18, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Condor Nominee Limited
4th Floor FirstCaribbean House
Grand Cayman, Cayman Islands
MARGHERITA LIMITED: Sets Final Shareholders Meeting for April 8
---------------------------------------------------------------
Margherita Limited will hold its final shareholders' meeting on
April 8, 2008, at 11:00 a.m., at 4th Floor FirstCaribbean House,
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.
Margherita's shareholders decided on Feb. 18, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Condor Nominee Limited
4th Floor FirstCaribbean House
Grand Cayman, Cayman Islands
TG EMPLOYEE: Proofs of Claim Filing Deadline is April 8
-------------------------------------------------------
TG Employee Investment Company I's creditors have until
April 8, 2008, to prove their claims to Patrick Joseph Brazzill
and Elizabeth Anne Bingham, the company's liquidators, or be
excluded from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
TG Employee's shareholders agreed on Feb. 26, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Patrick Joseph Brazzill
Elizabeth Anne Bingham
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309, Ugland House
Grand Cayman KY1-1104, Cayman Islands
TG EMPLOYEE INVESTMENT: Proofs of Claim Filing Is Until April 8
---------------------------------------------------------------
TG Employee Investment Company II's creditors have until
April 8, 2008, to prove their claims to Patrick Joseph Brazzill
and Elizabeth Anne Bingham, the company's liquidators, or be
excluded from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
TG Employee's shareholders agreed on Feb. 26, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Patrick Joseph Brazzill
Elizabeth Anne Bingham
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309, Ugland House
Grand Cayman KY1-1104, Cayman Islands
===============
C O L O M B I A
===============
BANCOLOMBIA: Eyes More Acquisitions in Central America
------------------------------------------------------
Bancolombia's Chairperson Jorge Londono told Business News
Americas that the bank is willing to look for more acquisitions
to strengthen its Central American presence.
BNamericas relates that Bancolombia made its first purchase
outside Colombia last year. It bought El Salvador's largest
bank Banagricola for US$900 million.
According to BNamericas, Mr. Londono said on the sidelines of a
conference in Santiago, "We want to look at other opportunities
to move on with our international expansion process, firstly at
Central America. It's an attractive market and in some ways it
would be natural for us to expand there."
Mr. Londono told BNamericas that Bancolombia is working on
integrating Banagricola's products and services with its
platform and administrative model, which will take long.
Mr. Londono commented to BNamericas, "The merger process was
carried out with no surprises ... we were lucky the institution
was not sold because it was going through a crisis or it needed
restructuring."
Bancolombia is also interested in Peru, where it already
operates through its vehicle renting unit and will launch its
trust fund unit Fiduciaria Bancolombia later this year,
BNamericas states, citing Mr. Londono.
Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Moody's Investors Service changed the outlook to
positive from stable on its Ba3 long-term foreign currency
deposit ratings and Ba1 long-term foreign currency subordinated
bond rating for Bancolombia, S.A.
==================
C O S T A R I C A
==================
ALCATEL-LUCENT: Moody's Holds Ratings; Outlook Revised to Neg.
--------------------------------------------------------------
Moody's Investors Service has affirmed the ratings for Alcatel-
Lucent which include a Ba3 corporate family rating for Alcatel-
Lucent and a Not-Prime for its short term debt, as well as Ba3
ratings for senior and B2 ratings for subordinated debt that was
issued originally by the predecessor companies Alcatel S.A. and
Lucent Technologies, Inc.
The outlook for the ratings was changed to negative to reflect
the heightened market risk in the industry and ongoing
restructuring challenges to adapt product range and cost
structure of the merged company to a very competitive
environment.
Wolfgang Draack, Senior Vice President and lead analyst for
Alcatel-Lucent, summarized: "The rating affirmation reflects our
expectation that Alcatel-Lucent has passed in 2007 the trough
level of profitability and that the benefits of restructuring
should increasingly be realized so that margins and operating
cash flow should gradually grow and reach in 2008 a coverage
level of interest and debt that is commensurate with the present
Ba3 rating. We see several challenges to this endeavour
including an outlook for depressed orders from telecom operators
leading to stable demand at best, little evidence yet that more
selective bidding by certain equipment companies including
Alcatel-Lucent has alleviated the severe price pressure in the
industry, and the requirement for further extensive headcount
adjustments at the company. The concern that these factors may
delay the turnaround at Alcatel-Lucent is captured in the
negative rating outlook."
Alcatel-Lucent's financial metrics for 2007 including an
interest coverage level of 0.3-times, net debt/EBITDA (net of
restructuring expenses) of 4.2-times and a negative free cash
flow of EUR1.2 billion are clearly below expectations for a Ba3
rating even considering the company's scale, diversification and
leading, broad technology position. The Ba3 rating was affirmed
only on the basis of a clear near term path towards reasonable
operating profitability with only modest cash consumption during
2008. This assessment does not rely on business growth, but on
internal cost savings that have been initiated in the merger and
synergy plan of late 2006. These should become more prevalent
in 2008. These effects are expected to (i) improve materially
the operating profitability on an LTM basis, (ii) reduce net
debt/EBITDA well below 4-times, and (iii) have free cash flow
trend towards a positive amount, but not exceed a negative
EUR600 million including cash cost for restructuring in 2008;
all ratios to include Moody's adjustments. These metrics are
more compatible with a Ba3 rating for a company with this
business profile and a very strong liquidity position.
The negative outlook for the rating reflects relatively high
uncertainty about management's ability to execute the
restructuring program and to achieve the cash flow and
profitability targets noted above in view of adverse demand
trends and unclear competitive responses (e.g. pricing
strategies) at this stage. The seasonality in the industry,
where weak first calendar quarters and strong cash flow receipts
in the last quarter of a year are common, may make the progress
of restructuring and its benefits visible only in the latter
quarters of the year, with the effect of increasing uncertainty.
Moody's last rating action for Alcatel-Lucent was the rating
downgrade to Ba3 from Ba2 for the corporate family rating and
parallel changes for the instrument ratings on Nov. 7, 2007.
Headquartered in Paris, France, Alcatel-Lucent is one of the
world leaders in providing advanced solutions for
telecommunications systems and equipment to service providers,
enterprises and governments with sales of EUR17.8 billion in
fiscal year 2007. The company has operations in Costa Rica.
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCREDITO: Supreme Court Overturns Bank Officials' Acquittance
---------------------------------------------------------------
The Supreme Court Penal Chamber of the Dominican Republic has
overturned the National District 3rd Collegiate Court's ruling
that acquitted former Bancredito officials Arturo Pellerano and
Felipe Mendoza on fraud charges file by the Dominican Central
Bank and Banks Superintendence, Dominican Today reports.
Dominican Today relates that the National District 3rd
Collegiate Court then ruled against an October 2007 sentence
condemning the defendants. On August 2006 the National District
1st Collegiate Court convicted Messers. Pellerano and Mendoza,
who were sentenced to a three-year imprisonment and a DOP1
million fine in a lawsuit filed by a group of Bancredito
depositors.
According to Dominican Today, the Supreme Court ruled that the
lawsuit filed by the Central Bank and Banks Superintendence and
the lawsuit by Bancredito depositors are two different cases
against the defendants. He sent the Central Bank and Banks
Superintendence lawsuit to the 2nd Collegiate Court for retrial.
Bancredito is a subsidiary of Banco Intercontinental, which
collapsed in 2003 as a result of massive fraud that drained it
of about US$657 million. As a consequence, all of its branches
were closed. The bank's current and savings accounts holders
were transferred to the bank's new owner -- Scotiabank. The
bankruptcy of Baninter was considered the largest in world
history, in relation to the Dominican Republic's Gross Domestic
Product. The resulting deficit was equal to 12% to 15% of the
country's national GDP. It costs Dominican taxpayers
DOP55 billion and resulted to the country's worst economic
crisis.
=============
J A M A I C A
=============
CASH PLUS: President Must Disclose Financial Affairs Information
----------------------------------------------------------------
Cash Plus Limited's President Carlos Hill has been given a
deadline to provide information on the investment scheme's
financial affairs to the receiver, Radio Jamaica reports.
As reported in the Troubled Company Reporter-Latin America on
April 3, 2008, Cash Plus is in receivership. Cash Plus admitted
that it wouldn't be able to pay its lenders until April 14. The
firm has 40,000 lenders with loans totaling J$4 billion. Cash
Plus was unable to repay its investors on March 31.
PricewaterhouseCoopers' accountant Kevin Bandoian was appointed
as joint receiver-manager for Cash Plus.
According to Cash Plus' receiver, Mr. Hill has a specific period
in which to present documentary proof of the existence of funds
to settle the investment scheme's liabilities.
Radio Jamaica relates that the receiver manager has informed
Cash Plus workers that the operations of legal and viable
entities will continue. Workers can also present business
plans, which if considered feasible for any of the entities will
be considered for implementation.
Cash Plus Ltd is an investment club in Jamaica. It collapsed
in 2007 after the Financial Services Commission moved to
regulate its operations. The company is a financial arm of the
Cash Plus Group of Companies, a business conglomerate
established in 2002 by mortgage banker Carlos Hill. The company
offers its participants the opportunity to participate in the
group's ventures which include mergers and numerous
acquisitions.
===========
M E X I C O
===========
AMERICAN AXLE: Moody's Puts Ba3 Corp. Family Rating Under Review
----------------------------------------------------------------
Moody's Investors Service placed American Axle & Manufacturing
Holdings, Inc.'s Ba3 Corporate Family Rating under review for
downgrade. In a related action, American Axle's Speculative
Grade Liquidity Rating was lowered to SGL-2 from SGL-1. The
review will consider the potential near term implications of the
protracted work stoppage by American Axle's UAW employees on the
company's financial metrics and liquidity, balanced against the
potential long term benefits of any eventual settlement.
While Moody's believes that any eventual settlement with the UAW
will incorporate terms that support the company's long term
competitive position in the domestic auto parts business, the
near term disruption caused by the protracted strike and the
potential cash use associated with the strike and any negotiated
settlement, represent key credit concerns. The review will also
consider the potential effects of increasing economic
uncertainty in the U.S. and higher fuel costs resulting in
weaker consumer automotive demand.
The UAW elected to implement a work stoppage on Feb. 25, 2008,
at five of American Axle's facilities in Michigan and New York
involving approximately 3,650 UAW employees. The underlying
issues involve, among other items, American Axle's goal of
reducing its all-in hourly labor cost, estimated to be
approximately US$73.48 under the expired labor contract, to
levels competitive with other domestic automotive suppliers.
Currently, the work stoppage is into its second month and
published reports indicate that progress is being made on some
items. However, there appears to be little movement on major
wage and benefit discussions. Moody's will continue to monitor
developments of the ongoing negotiations between the company and
the UAW and consider rating actions as necessary based on new
information.
In lowering the Speculative Grade Liquidity Rating to SGL-2 from
SGL-1, Moody's expects that the protracted work stoppage will
consume some cash and has the potential to weaken the company's
liquidity profile if not resolved in the near term. Moody's had
anticipated the company to be free cash flow generative in 2008,
but the combined effects of the strike, weak automotive demand,
and lower productions levels at the company's largest customer
(GM at 78% of revenues) may create headwinds. At year-end 2007
the company reported US$344 million of cash and had
US$572 million of availability under its US$600 million
revolving credit facility.
American Axle maintains ample cushion under its principal
financial covenants which measure net debt to EBITDA and net
worth. This cushion should enable the company to maintain
significant availability of the facility over the near term.
All of the company's bank obligations and notes are currently
unsecured, which establishes some flexibility to generate
alternative liquidity, if needed, subject to lien baskets and
sale/leaseback limitations in the respective indentures. The
company has made progress in reducing its cost structure as a
result of recent restructuring initiatives. As of Dec. 31, 2007
debt/EBITDA was 2.4x, EBIT/Interest was 2.4x, and free cash flow
to debt approximated 14%.
These ratings are under review for downgrade:
American Axle & Manufacturing Holdings, Inc.
-- Corporate Family, Ba3
-- Probability of Default, Ba3
-- Unsecured guaranteed convertible note, Ba3 (LGD-4, 56%)
American Axle & Manufacturing, Inc.
-- Unsecured guaranteed notes, Ba3 (LGD-4, 56%)
-- Unsecured guaranteed term loan, Ba3 (LGD-4, 56%)
Ratings lowered:
-- Speculative Grade Liquidity, to SGL-2 from SGL-1
Holdings' obligations are guaranteed by American Axle and vice
versa.
The last rating action was Nov. 26, 2007 when American Axle's
ratings were affirmed and the Outlook changed to Stable.
American Axle & Manufacturing, Inc., headquartered in Detroit,
Michigan, is a world leader in the manufacture, design,
engineering and validation of driveline systems and related
components and modules, chassis systems, and metal formed
products for light truck, SUV's and passenger cars. The company
has manufacturing locations in the USA, Mexico, the United
Kingdom, Brazil, China and Poland. The company reported
revenues of US$3.2 billion in 2007.
BANCO INTERACCIONES: To Invest MXN10B in Infrastructure Projects
----------------------------------------------------------------
Banco Interacciones will invest over MXN10 billion in
infrastructure projects this year.
According to Banco Interacciones, it will fund projects under
the Mexican federal government's national infrastructure program
PNI, which will invest US$50 billion over the next three years
to develop:
-- highway,
-- ports, and
-- airports networks.
Business News Americas relates that Banco Interacciones will
invest in highways and water and wastewater plants this year.
The bank has already funded water treatment plants in Colima,
Durango, and Tamaulipas, and highways in Veracruz, Guanajuato,
and Michoacan.
Banco Interacciones S.A. is headquartered in Mexico City
providing finance to states and municipalities as well as
infrastructure projects.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 14, 2007, Moody's Investors Service assigned a Ba2 long-
term global local currency subordinated debt rating to Banco
Interacciones, S.A.'s MXN700 million of non-convertible,
eligible for Tier-2 capital, subordinated notes. These notes
are due in 2017.
COREL CORP: Posts US$30,000 Non-GAAP Net Loss in First Qtr. 2008
----------------------------------------------------------------
Corel Corporation reported financial results for its first
quarter ended Feb. 29, 2008. Revenues in the first quarter of
fiscal 2008 were US$65.5 million, an increase of 25 percent over
revenues of US$52.6 million in the first quarter of fiscal 2007.
First quarter 2008 revenue includes organic revenue growth of 3
percent, which excludes revenue from products acquired from
InterVideo and Ulead. GAAP net loss in the first quarter of
fiscal 2008 was US$30,000 compared to GAAP net loss of
US$11.9 million in the first quarter of fiscal 2007.
Non-GAAP adjusted net income for the first quarter of fiscal
2008 was US$6.7 million, or US$0.26 per diluted share, compared
to non-GAAP adjusted net income for the first quarter of fiscal
2007 of US$2.7 million, or US$0.11 per diluted share. Non-GAAP
adjusted EBITDA in the first quarter of 2008 was
US$13.3 million, an increase of 52 percent over US$8.7 million
in the first quarter of 2007.
"Corel had a solid first quarter with strong results across our
diverse mix of products, channels and geographies," said Corel
Corporation Chief Executive Officer, David Dobson. "Having
successfully completed the integration of InterVideo and Ulead,
we are well-positioned to take advantage of the growing market
opportunity for our extensive Digital Media portfolio. At the
same time, Corel’s Graphics and Productivity products enjoyed a
strong quarter, highlighted by the first quarter release of
CorelDraw Graphics Suite X4 which recorded strong results,
particularly in Europe and emerging markets. Additionally,
revenue from emerging markets grew more than 40 percent year
over year as we continue to expand our presence in these
important growing markets through our diverse mix of
distribution channels."
Financial Guidance
Second Quarter Fiscal 2008 Guidance:
Corel provided guidance for the second quarter ending
May 31, 2008. The Company currently expects:
-- Revenue in the range of US$66 million to US$68 million.
-- GAAP net income in the range of US$1 million to US$2.5
million and non-GAAP adjusted net income in the range of
US$8.5 million to US$10 million.
-- GAAP earnings per share in the range of US$0.04 to US$0.09
and non-GAAP earnings per share in the range of US$0.32 to
US$0.38.
Fiscal 2008 Guidance:
Resulting guidance for the year ending Nov. 30, 2008 is:
-- Revenue in the range of US$263 million to US$275 million.
-- GAAP net income of US$9.5 million to US$15 million and
non-GAAP adjusted net income of US$40.5 million to US$46
million.
-- GAAP income per share of US$0.34 to US$0.55 and non-GAAP
earnings per share of US$1.50 to US$1.70.
Ottawa, Ontario-based Corel Corporation (NASDAQ: CREL) (TSX:
CRE) -- http://www.corel.com/-- is a packaged software company
with an estimated installed base of over 40 million users. The
company provides productivity, graphics and digital imaging
software. Its products are sold in over 75 countries through a
scalable distribution platform comprised of original equipment
manufacturers, Corel's international websites, and a global
network of resellers and retailers. The company's product
portfolio features CorelDRAW(R) Graphics Suite, Corel(R)
WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro,
and Corel Painter(TM).
The company has operations in Germany, Italy, the United
Kingdom, Australia, Japan, Korea, Brazil, and Mexico, among
others.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 2, 2008, Standard & Poor's Ratings Services placed its 'B'
long-term corporate credit and senior secured debt ratings on
Corel Corp. on CreditWatch with negative implications. The
recovery rating on the senior secured debt is unchanged at '3'.
DESARROLLO FIRME: Fitch Cuts National Long-Term Rating to BB+
-------------------------------------------------------------
This is the latest comprehensive list of Fitch Ratings 64 Latin
America national scale rating changes for the month of March,
which include: upgrades, downgrades, outlook revisions, watch
changes and withdrawn ratings. These rating changes were
previously announced via separate press releases in Spanish or
Portuguese.
Fitch upgraded these National ratings:
Estado de Mexico (State of Mexico):
-- National long-term rating upgraded to 'BBB(mex)' from 'BBB-
(mex)' Rating Watch Positive.
-- Bank Loans BBVA due Dec. 1, 2023, national long-term rating
upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loan Banorte due Dec. 21, 2022, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Dexia due April 1, 2021, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Inbursa due March 1, 2021 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banorte (1) due June 1, 2011 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banamex due Dec. 1, 2023, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loan Banobras due Dec. 1, 2025 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banobras due Dec. 1, 2024 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank loans Banobras 8 due Dec. 1, 2024 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- FOREMEX due Dec. 1, 2023, national long-term rating
upgraded to 'AA-(mex)' from 'A+(mex)'.
-- ISSSEMYM due Dec. 1, 2023, national long-term rating
upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Santander due Dec. 1, 2023, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banorte due June 1, 2011 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
* Rating actions took place on March 13, 2008
Municipio de Benito Juarez, Quintana Roo (Mexico):
-- National long-term rating upgraded to 'BB+(mex)' Outlook
Stable from 'BB(mex)' Outlook Positive. Rating actions
took place on March 26, 2008.
Universidad Autonoma de Nuevo Leon (Mexico):
-- National long-term rating upgraded to 'A+(mex)' from
'A(mex)'. Rating actions took place on March 11, 2008.
Pionero Pesos (Argentina):
-- Series Pionero Pesos national long-term rating upgraded to
'AA-(arg)' from 'A+(arg)'. Rating actions took place on
March 25, 2008.
Fitch has downgraded these ratings:
Americana de Reaseguros C.A. (Venezuela):
-- National Insurer Financial Strength downgraded to
'BBB+(ven)' from 'A(ven)'. Rating Action took place on
March 14, 2008.
Banco Multiple Santa Cruz, S.A. (Dominican Republic):
-- National long-term rating downgraded to 'BBB(dom)' from
'BBB+(dom)'.
-- National short-term rating downgraded to 'F3(dom)' from
'F2(dom).
* Rating Actions took place on March 28, 2008.
Coppel, S.A.B. de C.V. (Mexico):
-- National long-term rating downgraded to 'AA-(mex)' from
'AA(mex)'.
-- ALMACO 00U due Jan. 16, 2013 national long-term rating
downgraded to 'AA-(mex)Outlook Stable' from 'AA(mex)Outlook
Stable'.
-- ALMCACO 03 due June 19, 2008 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 05 due Dec. 10, 2010 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 07 due April 5, 2017 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 07-2 due May 8, 2014 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 06 due June 14, 2010 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 99U due March 1, 2013 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
* Rating actions took place on March 10, 2008.
Desarrollo Firme de Negocios, S.A. de C.V. (Mexico):
-- National long-term rating downgraded to 'BB+(mex)' Outlook
Negative from 'BBB-(mex)';
-- National short-term rating downgraded to 'B(mex)' from
'F3(mex)'
* Rating actions took place on March 10, 2008.
GMAC Compania Financiera S.A. (Mexico):
-- National long-term rating downgraded to 'AA-(arg)' Outlook
Negative from 'AA(arg)'.
-- National short-term rating downgraded to 'A1(arg)' Outlook
Negative from 'A1+(arg)'.
-- Endeudamiento de Largo Plazo national long-term rating
downgraded to 'AA-(arg)' Outlook Negative from 'AA(arg)'.
-- ON's Clase 2 national long-term rating downgraded to 'AA-
(arg)' Outlook Negative from 'AA(arg)'.
-- Programa de ON's Corto y Mediano Plazo national long-term
rating downgraded to 'AA-(arg)' Outlook Negative from
'AA(arg)'.
-- ON's Clase 1 national short-term rating downgraded to
'A1(arg)' Outlook Negative from 'A1+(arg).
-- Endeudamiento de Corto Plazo national short-term rating
downgraded to 'A1(arg)' Rating Watch Negative from
'A1+(arg).
* Rating actions took place on March 28, 2008.
GMAC Financiera, S.A. de C.V. (Mexico):
-- Prog. Dual de C.B. due Dec 20, 2008 national short-term
rating downgraded to 'F2(mex)' from 'F1(mex)' Rating Watch
Negative.
-- GMACFIN 06 due Sept. 17, 2009 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Outlook Negative.
-- GMACFIN 07 due June 14, 2012 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Outlook Negative.
* Rating Actions took place on March 3, 2008.
GMAC Mexicana, S.A. de C.V. (Mexico):
-- GMAC 07 due June 14, 2009 national short-term rating
downgraded to 'F2(mex)' from 'F1(mex)'.
-- Certificados Bursatiles due Nov. 15, 2008 national long-
term rating downgraded to 'A(mex)' Rating Watch Negative
from 'A+(mex)' Outlook Negative.
-- Certificados Bursatiles due Nov. 15, 2008 national short-
term rating downgraded to 'F2(mex)' from 'F1(mex)'.
* Rating actions took place on March 3, 2008.
Gmac Hipotecaria, S.A. de C.V. (Mexico):
-- GMACHIP 07 due June 14, 2012 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Rating Watch Negative.
-- Prog. Dual de C.B. due Dec. 20, 2008 national short-term
rating downgraded to 'F2(mex)' from 'F1(mex) Rating Watch
Negative'.
-- GMACHIP 06 due Sept. 17, 2009 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Rating Watch Negative.
* Rating Actions took place on March 3, 2008.
Urbi Desarrollos Urbanos, S.A.B. de C.V. (Mexico):
-- National long-term rating downgraded to 'A(mex)' Outlook
Stable from 'A+(mex)'.
-- National short-term rating downgraded to 'F2(mex)' from
'F1(mex)'.
-- URBI 03 due June 28, 2008 national long-term rating
downgraded to 'A(mex)' from 'A+(mex)'.
-- URBI 05 due Jan. 19, 2010 national long-term rating
downgraded to 'A(mex)' from 'A+(mex)'.
-- URBI 07 due Sept. 27, 2010 national long-term rating
downgraded to 'A(mex)' from 'A+(mex)'.
-- Prog. de C.B. de C.P. due Dec. 20, 2011 national short-term
rating downgraded to 'F2(mex)' from 'F1(mex)'.
* Rating Actions took place on March 28, 2008.
Fitch made these outlook revisions and rating watch changes:
Municipio de Zapotlan el Grande, Jal (Mexico):
-- Rating Outlook revised to 'BBB-(mex)' Outlook Positive from
'BBB-(mex)' Outlook Stable. Rating actions took place on
March 13, 2008.
Farmacias Ahumada S.A. (Chile):
-- Rating Watch changed to 'A-(chl)' Outlook Stable from 'A-
(chl)' Rating Watch Negative.
-- Senior unsecured bonds due Aug. 28, 2014 Rating Watch
changed to 'A-(chl)' from 'A-(chl)' Rating Watch Negative.
-- Senior unsecured bonds due Aug. 28, 2025 Rating Watch
changed to 'A-(chl)' from 'A-(chl)' Rating Watch Negative.
* Rating actions took place March 10, 2008
Transportadora de Gas del Norte S.A. (Argentina):
-- Outlook revised to 'A-(arg)' Outlook Negative from 'A-
(arg)' Outlook Stable. Rating actions took place on March
28, 2008.
Companhia de Concessoes Rodoviarias (Brazil):
-- Rating Watch changed to 'A+(bra)' Rating Watch Negative
from 'A+(bra)' Outlook Stable.
-- Senior unsecured debentures due March 1, 2011 'A+(bra)'
Rating Watch Negative from 'A+(bra)'.
* Rating actions took place on March 17, 2008.
Fitch affirmed and withdrew these ratings:
Securitizadora Security GMAC-RFC S.A (Chile):
-- Series 2000-1 A national long-term rating of 'BBB(chl)';
-- Series 2000-1 B national long-term rating of 'C(chl)'.
* Rating actions took place on March 3, 2008.
Desarrollo Firme de Negocios SA de CV. was founded in 1994 in
Coahuila, Mexico.
DIRECTV GROUP: 48% of Stock Now Owned by Liberty Media
------------------------------------------------------
Liberty Media Corporation purchased 78.30 million of The DIRECTV
Group Inc. common shares in a private transaction, increasing
Liberty's ownership of the company to approximately 48%.
To fund the purchase, Liberty borrowed US$1.98 billion against a
newly executed equity collar on 110 million DIRECTV common
shares. The equity collar is a series of puts and calls with
maturities ranging up to 4.40 years.
"These transactions reaffirm our belief in DIRECTV, the quality
of its service, and the performance of Chase Carey and his
management team," said Greg Maffei, Liberty's President and CEO.
"The additional shares and equity collar each increase our
exposure to DIRECTV's equity and further align Liberty's
interests with those of the DIRECTV shareholders."
The purchases, collars and loan were executed through a wholly-
owned subsidiary of Liberty and attributed to the Liberty
Entertainment tracking stock group.
FCC Says Deal with DIRECTV Benefits Public
As reported in the Troubled Company Reporter on Feb. 29, 2008,
the Federal Communications Commission approved the transfer of
control of DIRECTV to Liberty Media, subject to conditions. The
Commission concluded that, as conditioned, the public interest
benefits of the transfer outweighed the potential harms and
would be consistent with applicable Commission rules and
policies.
The TCR said on Feb. 11, 2008 that under the deal, News Corp.
will exchange its interest in DirecTV with Liberty Media's
interest in News Corp. Liberty Media said it plans to exchange
its stake in News Corp. for 39% of DirectTV. The parties
reached an US$11 billion deal that includes News Corp.'s stake
in DirectTV.
As a benefit of the transaction, Liberty Media and News Corp.,
which is the majority stakeholder of DirecTV, would sever their
ownership interests with each other which will decrease media
consolidation and reduce vertical integration therefore
benefiting
the public.
About Liberty Media
Headquartered in Englewood, Colorado, Liberty Media Corporation
(NasdaqGS: LINTA) -- http://www.libertymedia.com/-- owns
interests in a broad range of electronic retailing, media,
communications and entertainment businesses. Those interests
are attributed to two tracking stock groups: the Liberty
Interactive group, which includes Liberty's interests in QVC,
Provide Commerce, IAC/InterActiveCorp, and Expedia, and the
Liberty Capital group, which includes Liberty's interests in
Starz Entertainment, News Corporation, and Time Warner.
About DirecTV
Headquartered in El Segundo, California, The DIRECTV Group Inc.
(NYSE: DTV) -- http://www.directv.com/ -- provides digital
television entertainment services. Through its subsidiaries
and affiliated companies in the United States, Brazil, Mexico
and other countries in Latin America, the DIRECTV Group provides
digital television service to more than 16.5 million customers
in the United States and over 4.6 million customers in Latin
America.
* * *
In April 2007, Standard & Poor's Ratings Services affirmed the
'BB' corporate credit and 'BB-' senior unsecured debt rating on
The DIRECTV Group Inc. S&P said the outlook is stable.
In addition, Standard & Poor's raised the bank loan rating on
US$2 billion of credit facilities at DIRECTV Holdings LLC, a
wholly owned subsidiary of The DIRECTV Group Inc, to 'BB+' from
'BB' and revised the recovery rating to '1' from '3'.
MEGA BRANDS: Posts US$97 Million Net Loss in 2007
-------------------------------------------------
MEGA Brands Inc. reported its fourth quarter and full-year 2007
financial results. Full-year net loss was US$97.1 million
compared to net earnings of $25.3 million in 2006. Net loss was
US$66.2 million in fourth quarter 2007, compared to net earnings
of US$2.8 million in the fourth quarter of 2006.
"2007 was a difficult year for MEGA Brands, for our employees
and shareholders, and for our many loyal fans," Marc Bertrand,
president and CEO, stated. "We are disappointed with our
overall performance and we promise that no effort is being
spared to achieve a meaningful turnaround as quickly as
possible."
"We are solidly on track to achieve the $12 million in
annualized savings targeted under the Value Enhancement Plan
announced at the end of the third quarter. We have exciting new
products in the pipeline in all of our product categories and we
are pleased to be working with Intertek, a leading provider of
quality and safety solutions, as we roll out MAGNEXT(R: 60.91,
+0.08, +0.13%), the new generation of magnetic construction
toys," added Bertrand.
"Although 2007 was a challenging year, there were several
positive results in the company's performance, including record
sales of preschool construction toys and continued solid growth
in international sales," Mr. Bertrand added. "In Stationery and
Activities, sales matched 2006 levels, with improved margins.
"We are very focused on executing the many operational and new
product initiatives under way. With the recent amendment to our
credit agreement, we now have the financial flexibility to
implement current initiatives that will strengthen our core toy
business while exploring a sale of our Stationery and Activities
business through an orderly process," concluded Bertrand.
Financial results were impacted by these factors in 2007:
-- US$65.9 million of Specified Items resulting mainly from
voluntary product recall, inventory provisions, sales
below cost and termination of licensing agreements;
-- lower gross profit generated by the Magnetix product line
of US$21 million due to lower unit sales and prices;
-- lower manufacturing efficiencies resulting from the
inventory reduction plan initiated by the corporation and
the downsizing of the Woodridge, New Jersey facility which
was fully closed in December 2007. The impact of lower
manufacturing efficiencies on gross profit amounted to
approximately US$6 million.
-- US$5.7 million of Other Charges.
Marketing and advertising expenses were slightly lower at
US$26.2 million compared to $26.8 million in 2006.
Liquidity
Cash flows used in operating activities before changes in non-
cash operating working capital amounted to US$26.3 million
compared to cash flows generated of US$1.8 million in the fourth
quarter of 2006.
This change resulted from the higher net loss in the 2007
period. After favorable changes in non-cash operating working
capital in both periods, cash flows from operating activities
were US$64.6 million in the fourth quarter of 2007 compared to
US$28 million in the corresponding 2006 period.
At Dec. 31, the company's balance sheet showed total assets of
US$709.714 million, total liabilities US$487.320 million and
total shareholders' equity US$222.394 million.
About Mega Brands Inc.
MEGA Brands Inc. (TSE: MB) -- http://www.megabrands.com/--
designs, manufactures and markets high quality toys and
stationery products. Headquartered in Montreal, the company has
approximately 4,500 employees with offices, manufacturing
facilities or distribution centers in 14 countries, including
Belgium, United Kingdom, Germany, France, Spain, Mexico, and
Australia. The Corporation's products are sold in over 100
countries.
* * *
As reported in the Troubled company Reporter on Jan. 25, 2008,
Standard & Poor's Ratings Services lowered its corporate credit
and bank loan ratings on Mega Brands Inc. to 'B' from 'B+'. The
ratings remain on CreditWatch with negative implications, where
they were placed Nov. 9, 2007. The '3' recovery rating on the
bank loan is unchanged.
MOVIE GALLERY: Consolidates Additional Store Operations
-------------------------------------------------------
Movie Gallery, Inc. and its debtor-affiliates disclosed plans
to close approximately 160 underperforming Movie Gallery and
Hollywood Video stores in its third and final round of store
closures.
This consolidation of store operations is in addition to the
closures previously announced on Feb. 4, 2008 and
Sept. 25, 2007.
Joe Malugen, Chairman, President and Chief Executive Officer of
Movie Gallery, said, "While the decision to close stores is
never easy, this final consolidation will allow us to further
focus our resources on those stores with the strongest operating
performance and best prospects for growth after we emerge from
bankruptcy. This is another positive step forward in our
restructuring to position the Company for profitability and
long-term success."
"Movie Gallery remains committed to its loyal customers and
talented employees. We will work with customers at affected
stores to transfer their accounts to other nearby Movie Gallery
and Hollywood Video locations where possible," continued Mr.
Malugen. "I would also like to thank our many associates and
partners for their exceptional customer service and their
dedication to the company. As always, we remain committed to
treating all affected employees fairly and providing the
necessary assistance to make this transition as smooth as
possible."
Movie Gallery expects liquidation sales at affected stores to
begin in approximately one week and to conclude by April 30.
About Movie Gallery
Based in Dothan, Alabama, Movie Gallery Inc. --
http://www.moviegallery.com/-- is a home entertainment
specialty retailer. The company owns and operates 4,600 retail
stores that rent and sell DVDs, videocassettes and video games.
The company has operations in Mexico.
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.
MUNICIPIO BENEITO SUAREZ: Fitch Ups Nat'l Long-Term Rtng to BB+
---------------------------------------------------------------
This is the latest comprehensive list of Fitch Ratings 64 Latin
America national scale rating changes for the month of March,
which include: upgrades, downgrades, outlook revisions, watch
changes and withdrawn ratings. These rating changes were
previously announced via separate press releases in Spanish or
Portuguese.
Fitch upgraded these National ratings:
Estado de Mexico (State of Mexico):
-- National long-term rating upgraded to 'BBB(mex)' from 'BBB-
(mex)' Rating Watch Positive.
-- Bank Loans BBVA due Dec. 1, 2023, national long-term rating
upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loan Banorte due Dec. 21, 2022, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Dexia due April 1, 2021, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Inbursa due March 1, 2021 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banorte (1) due June 1, 2011 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banamex due Dec. 1, 2023, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loan Banobras due Dec. 1, 2025 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banobras due Dec. 1, 2024 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank loans Banobras 8 due Dec. 1, 2024 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- FOREMEX due Dec. 1, 2023, national long-term rating
upgraded to 'AA-(mex)' from 'A+(mex)'.
-- ISSSEMYM due Dec. 1, 2023, national long-term rating
upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Santander due Dec. 1, 2023, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banorte due June 1, 2011 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
* Rating actions took place on March 13, 2008
Municipio de Benito Juarez, Quintana Roo (Mexico):
-- National long-term rating upgraded to 'BB+(mex)' Outlook
Stable from 'BB(mex)' Outlook Positive. Rating actions
took place on March 26, 2008.
Universidad Autonoma de Nuevo Leon (Mexico):
-- National long-term rating upgraded to 'A+(mex)' from
'A(mex)'. Rating actions took place on March 11, 2008.
Pionero Pesos (Argentina):
-- Series Pionero Pesos national long-term rating upgraded to
'AA-(arg)' from 'A+(arg)'. Rating actions took place on
March 25, 2008.
Fitch has downgraded these ratings:
Americana de Reaseguros C.A. (Venezuela):
-- National Insurer Financial Strength downgraded to
'BBB+(ven)' from 'A(ven)'. Rating Action took place on
March 14, 2008.
Banco Multiple Santa Cruz, S.A. (Dominican Republic):
-- National long-term rating downgraded to 'BBB(dom)' from
'BBB+(dom)'.
-- National short-term rating downgraded to 'F3(dom)' from
'F2(dom).
* Rating Actions took place on March 28, 2008.
Coppel, S.A.B. de C.V. (Mexico):
-- National long-term rating downgraded to 'AA-(mex)' from
'AA(mex)'.
-- ALMACO 00U due Jan. 16, 2013 national long-term rating
downgraded to 'AA-(mex)Outlook Stable' from 'AA(mex)Outlook
Stable'.
-- ALMCACO 03 due June 19, 2008 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 05 due Dec. 10, 2010 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 07 due April 5, 2017 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 07-2 due May 8, 2014 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 06 due June 14, 2010 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 99U due March 1, 2013 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
* Rating actions took place on March 10, 2008.
Desarrollo Firme de Negocios, S.A. de C.V. (Mexico):
-- National long-term rating downgraded to 'BB+(mex)' Outlook
Negative from 'BBB-(mex)';
-- National short-term rating downgraded to 'B(mex)' from
'F3(mex)'
* Rating actions took place on March 10, 2008.
GMAC Compania Financiera S.A. (Mexico):
-- National long-term rating downgraded to 'AA-(arg)' Outlook
Negative from 'AA(arg)'.
-- National short-term rating downgraded to 'A1(arg)' Outlook
Negative from 'A1+(arg)'.
-- Endeudamiento de Largo Plazo national long-term rating
downgraded to 'AA-(arg)' Outlook Negative from 'AA(arg)'.
-- ON's Clase 2 national long-term rating downgraded to 'AA-
(arg)' Outlook Negative from 'AA(arg)'.
-- Programa de ON's Corto y Mediano Plazo national long-term
rating downgraded to 'AA-(arg)' Outlook Negative from
'AA(arg)'.
-- ON's Clase 1 national short-term rating downgraded to
'A1(arg)' Outlook Negative from 'A1+(arg).
-- Endeudamiento de Corto Plazo national short-term rating
downgraded to 'A1(arg)' Rating Watch Negative from
'A1+(arg).
* Rating actions took place on March 28, 2008.
GMAC Financiera, S.A. de C.V. (Mexico):
-- Prog. Dual de C.B. due Dec 20, 2008 national short-term
rating downgraded to 'F2(mex)' from 'F1(mex)' Rating Watch
Negative.
-- GMACFIN 06 due Sept. 17, 2009 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Outlook Negative.
-- GMACFIN 07 due June 14, 2012 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Outlook Negative.
* Rating Actions took place on March 3, 2008.
GMAC Mexicana, S.A. de C.V. (Mexico):
-- GMAC 07 due June 14, 2009 national short-term rating
downgraded to 'F2(mex)' from 'F1(mex)'.
-- Certificados Bursatiles due Nov. 15, 2008 national long-
term rating downgraded to 'A(mex)' Rating Watch Negative
from 'A+(mex)' Outlook Negative.
-- Certificados Bursatiles due Nov. 15, 2008 national short-
term rating downgraded to 'F2(mex)' from 'F1(mex)'.
* Rating actions took place on March 3, 2008.
Gmac Hipotecaria, S.A. de C.V. (Mexico):
-- GMACHIP 07 due June 14, 2012 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Rating Watch Negative.
-- Prog. Dual de C.B. due Dec. 20, 2008 national short-term
rating downgraded to 'F2(mex)' from 'F1(mex) Rating Watch
Negative'.
-- GMACHIP 06 due Sept. 17, 2009 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Rating Watch Negative.
* Rating Actions took place on March 3, 2008.
Urbi Desarrollos Urbanos, S.A.B. de C.V. (Mexico):
-- National long-term rating downgraded to 'A(mex)' Outlook
Stable from 'A+(mex)'.
-- National short-term rating downgraded to 'F2(mex)' from
'F1(mex)'.
-- URBI 03 due June 28, 2008 national long-term rating
downgraded to 'A(mex)' from 'A+(mex)'.
-- URBI 05 due Jan. 19, 2010 national long-term rating
downgraded to 'A(mex)' from 'A+(mex)'.
-- URBI 07 due Sept. 27, 2010 national long-term rating
downgraded to 'A(mex)' from 'A+(mex)'.
-- Prog. de C.B. de C.P. due Dec. 20, 2011 national short-term
rating downgraded to 'F2(mex)' from 'F1(mex)'.
* Rating Actions took place on March 28, 2008.
Fitch made these outlook revisions and rating watch changes:
Municipio de Zapotlan el Grande, Jal (Mexico):
-- Rating Outlook revised to 'BBB-(mex)' Outlook Positive from
'BBB-(mex)' Outlook Stable. Rating actions took place on
March 13, 2008.
Farmacias Ahumada S.A. (Chile):
-- Rating Watch changed to 'A-(chl)' Outlook Stable from 'A-
(chl)' Rating Watch Negative.
-- Senior unsecured bonds due Aug. 28, 2014 Rating Watch
changed to 'A-(chl)' from 'A-(chl)' Rating Watch Negative.
-- Senior unsecured bonds due Aug. 28, 2025 Rating Watch
changed to 'A-(chl)' from 'A-(chl)' Rating Watch Negative.
* Rating actions took place March 10, 2008
Transportadora de Gas del Norte S.A. (Argentina):
-- Outlook revised to 'A-(arg)' Outlook Negative from 'A-
(arg)' Outlook Stable. Rating actions took place on March
28, 2008.
Companhia de Concessoes Rodoviarias (Brazil):
-- Rating Watch changed to 'A+(bra)' Rating Watch Negative
from 'A+(bra)' Outlook Stable.
-- Senior unsecured debentures due March 1, 2011 'A+(bra)'
Rating Watch Negative from 'A+(bra)'.
* Rating actions took place on March 17, 2008.
Fitch affirmed and withdrew these ratings:
Securitizadora Security GMAC-RFC S.A (Chile):
-- Series 2000-1 A national long-term rating of 'BBB(chl)';
-- Series 2000-1 B national long-term rating of 'C(chl)'.
* Rating actions took place on March 3, 2008.
Additional information on these rating actions can be found on:
Fitch Ratings http://www.fitchratings.com
Fitch Argentina http://www.fitchratings.com.ar
Fitch Brazil http://www.fitchratings.com.br
Fitch Chile http://www.fitchratings.cl
Fitch Mexico http://www.fitchmexico.com
Fitch Venezuela http://www.fitchvenezuela.com
Fitch Dominican Republic http://www.fitchdominicana.com
Benito Juarez is one of the eight municipalities of the Mexican
state of Quintana Roo. The municipality is located in the north
of the state nearest Isla Mujeres and the Caribbean Sea. Its
territory extends 1664 square kilometers and it represents 3.27%
of the territory of the state. The municipality reported a
population of 572,973 persons in the 2005 INEGI census, most of
whom lived in the municipal seat, Cancun.
SONIC CORP: Feb. 29 Balance Sheet Upside-Down by US$109 Million
---------------------------------------------------------------
Sonic Corp.'s balance sheet at Feb. 29, 2008, showed total
assets of US$776.205 million and total liabilities of US$886.009
million, resulting to total stockholders' deficit of
US$109.804 million.
The company reported net income of US$9.253 million for second
quarter ended Feb. 29, 2008, compared to net income of
US$6.225 million for the same period in the previous year.
The company has net income of US$22.836 million for six months
ended Feb. 29, 2008, compared to net income of US$21.511 million
for the same period in the prior year.
"Our multi-layered growth strategy with elements focused on
driving revenues, increasing profitability and using capital
efficiently, continues to enhance shareholder value," said
Clifford Hudson, chairman and chief executive officer.
"Successful sales-driving initiatives, such as the retrofit,
Happy Hour and new product news were strong contributors to
system-wide same-store sales growth of 3.2%, with a healthy
increase in traffic," Mr. Hudson added. "These initiatives,
along with strong development activity and the increasingly
accretive effect of our share repurchases, remain key drivers
that position us well for continued strong earnings growth."
"Going forward, we expect the positive impact of Happy Hour,
combined with the launch of our new line of coffee products this
month, will further set Sonic apart as the Ultimate Drink
Stop(R)," Mr. Hudson stated. "In addition, our increased
investment in media, projected to reach US$190 million in fiscal
2008 -- with over US$95 million dedicated to system-wide
advertising -- will drive a strong brand message to increase
sales in both existing and new markets. We'll continue to
enhance these sales-driving strategies, layering opportunities
to grow sales with new products such as our Java Chillers and
monthly offers such as Cinnasnacks(TM), along with other new
products, to emphasize the wide variety of offerings during non-
traditional day parts."
Development and Retrofit
During the second quarter, Sonic opened 34 new drive-ins
compared with the opening of 29 in the year-earlier period.
Franchise drive-in openings increased to 29 in the second
quarter from 22 in the year-earlier quarter. The company
expects to open 180 to 200 drive-ins system-wide in fiscal 2008.
Existing franchisees continue to demonstrate their commitment to
the brand with the completion of 200 retrofits during the second
quarter, for a total of 402 for the first six months of the
fiscal year and 728 since the franchise retrofit began in early
calendar year of 2007.
More than 25% of Sonic's franchise drive-ins have now completed
the retrofit. In addition, Sonic retrofitted a total of
39 partner drive-ins in the second quarter of fiscal 2008 for a
total of 77 partner drive-ins for the first six months of the
fiscal year. The company now has retrofitted a total of 303
partner drive-ins since the program began, and currently over
50% of partner drive-ins have the new look.
In fiscal 2008, the company expects to retrofit a total of 150
partner drive-ins along with 600 to 700 franchise drive-ins.
In addition to new store development, franchisees are actively
relocating or rebuilding existing drive-ins. Of the 16
relocations or rebuilds completed during the second quarter,
franchisees completed 14 compared with nine in the same period
of the prior year.
For the first six months of fiscal year 2008, a total of 31
system drive-ins were rebuilt or relocated versus 16 in the same
period a year ago. Continued franchise investment is
anticipated in this area with a total of 60 to 70 system drive-
ins expected to be rebuilt or relocated this fiscal year.
About Sonic Corp.
Headquartered in Oklahoma City, Oklahoma, Sonic Corp. (Nasdaq:
SONC) -- http://www.sonicdrivein.com/-- originally started as a
hamburger and root beer stand in 1953, in Shawnee, Oklahoma,
called Top Hat Drive-In, and then changed its name to Sonic in
1959. The first drive-in to adopt the Sonic name is still
serving customers in Stillwater, Oklahoma. Sonic has more than
3,200 drive-ins coast to coast and in Mexico, where more than a
million customers eat every day.
====================
P U E R T O R I C O
====================
FOOT LOCKER: Poor Sales Results Cues Moody's Ba3 Rating
-------------------------------------------------------
Moody's Investors Service downgraded the ratings of Foot Locker,
Inc., corporate family rating to Ba3. The rating outlook
remains negative.
The downgrade was prompted by the company's poor sales results
for fiscal year 2007, primarily driven by weakness in the
athletic retail market in North America as well as an overall
weak retail sales environment. This resulted in higher
markdowns, a notable deterioration in Foot Locker's
profitability, and a weakening in credit metrics.
In particular, debt to EBITDA rose to 6.1 times which is
significantly higher than the level cited in Moody's credit
opinion dated Sept. 26, 2007 that would likely prompt a
downgrade. Given the ongoing weak retail sales environment,
Moody's expects that Foot Locker will likely sustain weakened
credit metrics over the next twelve months.
These ratings are downgraded:
-- Corporate family rating to Ba3 from Ba2;
-- Probability of default rating to Ba3 from Ba2;
-- Senior unsecured notes to B1 (LGD4, 61%) from Ba2
(LGD4, 59%).
The rating outlook is negative.
The Ba3 corporate family rating reflects Foot Locker's weak
profitability levels and weakened credit metrics. The company's
profitability level fell dramatically during 2007 as a result of
heavy markdown activity and is currently below its peer group.
The rating also reflects its significant business risk as a
specialty retailer and its highly seasonal operations.
As a result of the company's narrow focus on athletic footwear
and apparel, Foot Locker is highly susceptible to changing
fashion trends and its cash flow from operations generation is
heavily reliant on the fourth quarter holiday selling season.
Balancing these significant risks is the company's global
diversification, credible market position, and its moderate
scale. The rating is also supported by the company's good
liquidity and modest level of funded debt which is currently
below its excess cash level.
The rating outlook is negative reflecting Moody's expectations
that the retail selling environment will continue to be
pressured thus constraining Foot Locker's operating performance
and will likely cause credit metrics to remain weak over the
next twelve months.
Foot Locker, Inc., headquartered in New York, New York, is a
global, specialty retailer of athletic footwear and apparel. It
operates approximately 3,785 primarily mall-based stores in 20
countries in North America, Europe and Asia Pacific, including
Australia and New Zealand. Revenues for fiscal year ended
Feb. 2, 2008 were approximately US$5.4 billion.
Headquartered in New York, Foot Locker, Inc. (NYSE: FL) ---
http://www.footlocker-inc.com/ -- is a specialty athletic
retailer that operates approximately 3,800 stores in 21
countries in North America, Canada, Puerto Rico, Europe and
Australia.
MMM HOLDINGS: Moody's Retains Ratings Under Review
--------------------------------------------------
Moody's Investors Service is maintaining its review for possible
downgrade on the senior debt ratings of MMM Holdings, Inc., NAMM
Holdings, Inc., and Preferred Health Management Corporation.
The rating agency stated that the continuation of the review is
a result of a possible breach of the Debt to EBITDA financial
covenant in its bank loan agreement which tightens to a 2.0
limit in 2008. The ratings had been under review for possible
downgrade since March 20, 2007. At that time the ratings were
also downgraded one notch.
According to Moody's, 2007 preliminary financial results
indicate the company has made significant progress in addressing
the unexpectedly high medical utilization and costs in its
Puerto Rico operations. These issues had resulted in a
significant earnings decline at the end of 2006 and early 2007
and a breach of several financial covenants in its bank loan
agreement. The rating agency stated, however, that despite this
progress, the company has not yet been successful in
renegotiating the financial covenants with its lenders. Moody's
noted that even though the company is improving its net earnings
margins, the combination of a significant decline in medical
membership in Puerto Rico during 2007, lower than expected debt
amortization in 2007, and the tightening Debt to EBITDA covenant
limit in 2008 will make it difficult for MMM to be in compliance
with this covenant at the end of 2008. The rating agency
commented that this uncertainty is the key driver for the rating
remaining under review.
Moody's noted, however, that based on preliminary financial
results, the company is expected to be close to meeting all
financial covenants as of Dec. 31, 2007. In addition, declining
membership trends appear to have reversed during 2008. The
company is current on all required debt service and continues to
make all required principal and interest payments, including an
excess principal payment of approximately $20 million made on
March 28, 2008.
Moody's said that the focus of its review will be the progress
and terms of any renegotiation of the credit facility. Moody's
will also review MMM's final 2007 audited results as well as
2008 earnings as they develop.
These ratings remain under review for possible downgrade:
* MMM Holdings, Inc. -- senior secured debt rating at Caa1;
corporate family rating at Caa1;
* NAMM Holdings, Inc. -- senior secured debt rating at Caa1;
* Preferred Health Management Corporation -- senior secured
debt rating at Caa1;
* MMM Healthcare, Inc. -- insurance financial strength rating
at B1;
* PrimeCare Medical Network, Inc. -- insurance financial
strength rating at B1.
MMM Healthcare offers Medicare Advantage products exclusively to
eligible participants in Puerto Rico. Moody's notes that the
company currently enjoys being the market leader in providing
Medicare Advantage products in Puerto Rico. NAMM is a medical
management company that operates in California and Illinois.
Its regulated operating subsidiary, PrimeCare Medical Network,
Inc., consists of 10 owned IPAs in Southern California that
contract with major health care benefit companies on a capitated
basis to provide medical care to commercial and Medicare
members.
Moody's health insurance financial strength ratings are opinions
about the ability of life and health insurance companies to
punctually repay senior policyholder claims and obligations.
Moody's corporate family rating is an opinion of a corporate
family's ability to honor all of its financial obligations and
is assigned to a corporate family as if it had a single class of
debt and a single consolidated legal entity structure.
MMM Holdings Inc., through it two main operating subsidiaries
MMM Healthcare and Preferred Medical Choice, Inc., is the
largest provider of Medicare Advantage products in Puerto Rico,
with over 200,000 members as of Sept. 30, 2006. MMM Healthcare
and Preferred Medical service in excess of 60% of the Medicare
Advantage enrolled population in Puerto Rico and account for
approximately 80% of Aveta's operating earnings.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: May Fail to Maintain Oil Shipments
----------------------------------------------------------
The Economist relates that Petroleos Venezuela SA may not be
able to maintain oil shipments "indefinitely" to nations "lining
up" for Venezuela's attendants.
According to The Economist, Petroleos de Venezuela's output is
decreasing, while domestic oil consumption is increasing.
The Economist notes that Petroleos de Venezuela exports
one million barrels per day of oil to the U.S. and has to pay
full-price sales for its imports.
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: Production Costs Increase 21.7% in 2007
---------------------------------------------------------------
Petroleos de Venezuela SA's production costs, excluding
operational accords, increased 21.7% to US$4.88 per barrel in
2007, compared to US$4.01 per barrel in 2006, Marianna Parraga
at El Universal reports.
El Universal relates that oil production costs per barrel rose
13.6% to US$4.93 in 2007, from 2006, the highest oil production
cost per barrel over the last five years.
According to El Universal, Petroleos de Venezuela's' financial
statements indicate that the consolidated operational expenses
rose to US$14.95 billion in 2007, from US$14.77 billion in 2006.
Exploration costs increased to US$154 million in 2007, compared
to US$100 million in 2006.
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
===========
* Fitch Issues Latin America Rating Actions Summary for March
-------------------------------------------------------------
This is the latest comprehensive list of Fitch Ratings 64 Latin
America national scale rating changes for the month of March,
which include: upgrades, downgrades, outlook revisions, watch
changes and withdrawn ratings. These rating changes were
previously announced via separate press releases in Spanish or
Portuguese.
Fitch upgraded these National ratings:
Estado de Mexico (State of Mexico):
-- National long-term rating upgraded to 'BBB(mex)' from 'BBB-
(mex)' Rating Watch Positive.
-- Bank Loans BBVA due Dec. 1, 2023, national long-term rating
upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loan Banorte due Dec. 21, 2022, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Dexia due April 1, 2021, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Inbursa due March 1, 2021 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banorte (1) due June 1, 2011 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banamex due Dec. 1, 2023, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loan Banobras due Dec. 1, 2025 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banobras due Dec. 1, 2024 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank loans Banobras 8 due Dec. 1, 2024 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- FOREMEX due Dec. 1, 2023, national long-term rating
upgraded to 'AA-(mex)' from 'A+(mex)'.
-- ISSSEMYM due Dec. 1, 2023, national long-term rating
upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Santander due Dec. 1, 2023, national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
-- Bank Loans Banorte due June 1, 2011 national long-term
rating upgraded to 'AA-(mex)' from 'A+(mex)'.
* Rating actions took place on March 13, 2008
Municipio de Benito Juarez, Quintana Roo (Mexico):
-- National long-term rating upgraded to 'BB+(mex)' Outlook
Stable from 'BB(mex)' Outlook Positive. Rating actions
took place on March 26, 2008.
Universidad Autonoma de Nuevo Leon (Mexico):
-- National long-term rating upgraded to 'A+(mex)' from
'A(mex)'. Rating actions took place on March 11, 2008.
Pionero Pesos (Argentina):
-- Series Pionero Pesos national long-term rating upgraded to
'AA-(arg)' from 'A+(arg)'. Rating actions took place on
March 25, 2008.
Fitch has downgraded these ratings:
Americana de Reaseguros C.A. (Venezuela):
-- National Insurer Financial Strength downgraded to
'BBB+(ven)' from 'A(ven)'. Rating Action took place on
March 14, 2008.
Banco Multiple Santa Cruz, S.A. (Dominican Republic):
-- National long-term rating downgraded to 'BBB(dom)' from
'BBB+(dom)'.
-- National short-term rating downgraded to 'F3(dom)' from
'F2(dom).
* Rating Actions took place on March 28, 2008.
Coppel, S.A.B. de C.V. (Mexico):
-- National long-term rating downgraded to 'AA-(mex)' from
'AA(mex)'.
-- ALMACO 00U due Jan. 16, 2013 national long-term rating
downgraded to 'AA-(mex)Outlook Stable' from 'AA(mex)Outlook
Stable'.
-- ALMCACO 03 due June 19, 2008 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 05 due Dec. 10, 2010 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 07 due April 5, 2017 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 07-2 due May 8, 2014 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 06 due June 14, 2010 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
-- ALMACO 99U due March 1, 2013 national long-term rating
downgraded to 'AA-(mex)' Outlook Stable from 'AA(mex)'
Outlook Stable.
* Rating actions took place on March 10, 2008.
Desarrollo Firme de Negocios, S.A. de C.V. (Mexico):
-- National long-term rating downgraded to 'BB+(mex)' Outlook
Negative from 'BBB-(mex)';
-- National short-term rating downgraded to 'B(mex)' from
'F3(mex)'
* Rating actions took place on March 10, 2008.
GMAC Compania Financiera S.A. (Mexico):
-- National long-term rating downgraded to 'AA-(arg)' Outlook
Negative from 'AA(arg)'.
-- National short-term rating downgraded to 'A1(arg)' Outlook
Negative from 'A1+(arg)'.
-- Endeudamiento de Largo Plazo national long-term rating
downgraded to 'AA-(arg)' Outlook Negative from 'AA(arg)'.
-- ON's Clase 2 national long-term rating downgraded to 'AA-
(arg)' Outlook Negative from 'AA(arg)'.
-- Programa de ON's Corto y Mediano Plazo national long-term
rating downgraded to 'AA-(arg)' Outlook Negative from
'AA(arg)'.
-- ON's Clase 1 national short-term rating downgraded to
'A1(arg)' Outlook Negative from 'A1+(arg).
-- Endeudamiento de Corto Plazo national short-term rating
downgraded to 'A1(arg)' Rating Watch Negative from
'A1+(arg).
* Rating actions took place on March 28, 2008.
GMAC Financiera, S.A. de C.V. (Mexico):
-- Prog. Dual de C.B. due Dec 20, 2008 national short-term
rating downgraded to 'F2(mex)' from 'F1(mex)' Rating Watch
Negative.
-- GMACFIN 06 due Sept. 17, 2009 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Outlook Negative.
-- GMACFIN 07 due June 14, 2012 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Outlook Negative.
* Rating Actions took place on March 3, 2008.
GMAC Mexicana, S.A. de C.V. (Mexico):
-- GMAC 07 due June 14, 2009 national short-term rating
downgraded to 'F2(mex)' from 'F1(mex)'.
-- Certificados Bursatiles due Nov. 15, 2008 national long-
term rating downgraded to 'A(mex)' Rating Watch Negative
from 'A+(mex)' Outlook Negative.
-- Certificados Bursatiles due Nov. 15, 2008 national short-
term rating downgraded to 'F2(mex)' from 'F1(mex)'.
* Rating actions took place on March 3, 2008.
Gmac Hipotecaria, S.A. de C.V. (Mexico):
-- GMACHIP 07 due June 14, 2012 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Rating Watch Negative.
-- Prog. Dual de C.B. due Dec. 20, 2008 national short-term
rating downgraded to 'F2(mex)' from 'F1(mex) Rating Watch
Negative'.
-- GMACHIP 06 due Sept. 17, 2009 national long-term rating
downgraded to 'BBB+(mex)' Rating Watch Negative from
'A+(mex)' Rating Watch Negative.
* Rating Actions took place on March 3, 2008.
Urbi Desarrollos Urbanos, S.A.B. de C.V. (Mexico):
-- National long-term rating downgraded to 'A(mex)' Outlook
Stable from 'A+(mex)'.
-- National short-term rating downgraded to 'F2(mex)' from
'F1(mex)'.
-- URBI 03 due June 28, 2008 national long-term rating
downgraded to 'A(mex)' from 'A+(mex)'.
-- URBI 05 due Jan. 19, 2010 national long-term rating
downgraded to 'A(mex)' from 'A+(mex)'.
-- URBI 07 due Sept. 27, 2010 national long-term rating
downgraded to 'A(mex)' from 'A+(mex)'.
-- Prog. de C.B. de C.P. due Dec. 20, 2011 national short-term
rating downgraded to 'F2(mex)' from 'F1(mex)'.
* Rating Actions took place on March 28, 2008.
Fitch made these outlook revisions and rating watch changes:
Municipio de Zapotlan el Grande, Jal (Mexico):
-- Rating Outlook revised to 'BBB-(mex)' Outlook Positive from
'BBB-(mex)' Outlook Stable. Rating actions took place on
March 13, 2008.
Farmacias Ahumada S.A. (Chile):
-- Rating Watch changed to 'A-(chl)' Outlook Stable from 'A-
(chl)' Rating Watch Negative.
-- Senior unsecured bonds due Aug. 28, 2014 Rating Watch
changed to 'A-(chl)' from 'A-(chl)' Rating Watch Negative.
-- Senior unsecured bonds due Aug. 28, 2025 Rating Watch
changed to 'A-(chl)' from 'A-(chl)' Rating Watch Negative.
* Rating actions took place March 10, 2008
Transportadora de Gas del Norte S.A. (Argentina):
-- Outlook revised to 'A-(arg)' Outlook Negative from 'A-
(arg)' Outlook Stable. Rating actions took place on March
28, 2008.
Companhia de Concessoes Rodoviarias (Brazil):
-- Rating Watch changed to 'A+(bra)' Rating Watch Negative
from 'A+(bra)' Outlook Stable.
-- Senior unsecured debentures due March 1, 2011 'A+(bra)'
Rating Watch Negative from 'A+(bra)'.
* Rating actions took place on March 17, 2008.
Fitch affirmed and withdrew these ratings:
Securitizadora Security GMAC-RFC S.A (Chile):
-- Series 2000-1 A national long-term rating of 'BBB(chl)';
-- Series 2000-1 B national long-term rating of 'C(chl)'.
* Rating actions took place on March 3, 2008
Additional information on these rating actions can be found on:
Fitch Ratings http://www.fitchratings.com
Fitch Argentina http://www.fitchratings.com.ar
Fitch Brazil http://www.fitchratings.com.br
Fitch Chile http://www.fitchratings.cl
Fitch Mexico http://www.fitchmexico.com
Fitch Venezuela http://www.fitchvenezuela.com
Fitch Dominican Republic http://www.fitchdominicana.com
* LatAm 2008-2009 Corp. Debt Refunding Manageable, Moody's Says
---------------------------------------------------------------
Latin American non-financial corporate issuers have debt-
refunding needs that appear manageable in 2008 and 2009,
says Moody's Investors Service in its first survey of rated
corporate issuers in the region.
However, a big spike in maturities in the second half of the
year will test investor appetite for Latin American credit and
the ease of corporate access to alternative sources of
financing, either through bank financing or local market
issuance, says Moody's.
"While the amount of debt coming due in the first half of 2008
is low by any standard, the first big refunding test will come
in the second half of 2008, when maturities increase nearly
threefold," says Moody's chief credit officer for Latin America,
Alexander Carpenter.
The US$21 billion of corporate debt coming due in Latin America
through 2009 ordinarily would not raise concerns about
companies' ability to refinance, notes Mr. Carpenter, "however,
market conditions have been far from ordinary in recent months."
Moody's survey included both covenant cushion and refinancing
risk analysis. "We do not expect a significant increase in the
risk of covenant violations because most Latin American
corporate results have remained in line with or above our
expectations," says Mr. Carpenter.
Hence, debt maturities should be the main area of focus for
liquidity risk in the region, says Moody's.
Overall, rating drift in Latin America was positive in the first
quarter of 2008, with seven positive rating actions and three
negative rating actions.
In terms of sector, Moody's estimates that the non-utility
energy sector represents approximately US$9 billion, or 42%, of
total 2008-2009 debt maturities in the region, while other
sectors with refinancing risk either have low cash flow
volatility, like telecom and utilities, or benefit from the
current high level of commodity prices, like energy, metals and
mining.
Sixty issuers, or 40% of the approximately 150 non-financial
rated corporate issuers in Latin America, have bonds maturing
before year-end 2009. According to Moody's, remaining debt
maturities in the first half of 2008 are relatively low at
US$1.9 billion, while maturities are expected to spike to US$6.8
billion in the second half of 2008 and US$12.3 billion in 2009.
This report on the Latin American credit environment is part of
Moody's quarterly publication on global credit conditions called
On the Quarter: Credit Insights & Highlights from Moody's
Investors Service, which is available on Moodys.com.
* BOND PRICING: For the Week March 31 - April 4, 2008
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Argnt-Bocon PR11 2.000 12/3/10 ARS 60.86
Argnt-Bocon PR13 2.000 3/15/24 ARS 61.17
Arg Boden 2.000 9/30/08 ARS 14.80
Argent-EURDIS 7.820 12/31/33 EUR 72.94
Argent-$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 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 9.100 10/31/08 CHF 63.60
Vontobel Cayman 10.000 10/24/08 CHF 47.40
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 10.900 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 * * *