/raid1/www/Hosts/bankrupt/TCRLA_Public/080409.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
Wednesday, April 9, 2008, Vol. 9, No. 70
Headlines
A R G E N T I N A
ALITALIA SPA: May Lose License if Cash Hike Remains Unclear
ARIANNA SA: Proofs of Claim Filing Deadline is May 19
ARTECO CONST: Proofs of Claim Filing is Until June 4
AYU SA: Proofs of Claim Filing Deadline is May 13
DESARROLLOS DE ACUERDOS: Trustee to Verify Claims Until May 26
REVLON INC: Net Loss Slides to US$16 Mil. in Year ended Dec. 31
SANIDAD SIGLO: Proofs of Claim Filing Deadline is May 1
VIEJO INDECENTE: Proofs of Claim Filing Deadline is May 12
B E R M U D A
GROVE MANAGEMENT: Proofs of Claim Filing Deadline is May 1
B O L I V I A
VISTA GOLD: Sells Unit & Bolivian Project to Republic Gold
B R A Z I L
BANCO CRUZEIRO: Inks Swap Contracts with UBS Pactual
BANCO DAYCOVAL: Will Repurchase Up to 10% of Preferred Shares
BRASKEM SA: Copesul Goes Offline for Planned Maintenance
CONSTRUTORA NORBERTO: Selling US$200 Million Notes Due 2017
CONSTRUTORA NORBERTO: Fitch Puts 'BB+' Rating on 10-Year Notes
LOCALIZA RENT: S&P Sees Growth in Brazilian Car Rental Industry
TAM SA: Joins 10 Firms to Develop Electronic Waybill in Brazil
TELEMAR NORTE: Completes Stock Purchase Agreement with Vivo
* BRAZIL: Fitch Says Banks Well Positioned for Downturn Pressure
C A Y M A N I S L A N D S
CLEARWATER CAPITAL: Proofs of Claim Filing is Until April 12
INVESTCORP MOODY: Sets Final Shareholders Meeting for April 11
INVESTCORP MOODY T5: Final Shareholders Meeting is on April 11
MIYAKODORI CAPITAL: Proofs of Claim Filing Deadline is April 13
MOUNTAIN FINANCE: Proofs of Claim Filing Deadline is April 11
MTC HOLDING: Proofs of Claim Filing is Until April 14
PALLAS GRADE: Sets Final Shareholders Meeting for April 10
RUTHERFORD GRADE: To Hold Final Shareholders Meeting on April 10
SOUND ENERGY: Sets Final Shareholders Meeting for April 10
SUNDAY SILENCE: Proofs of Claim Filing Deadline is April 13
SUTTER INVESTMENT: Final Shareholders Meeting is on April 10
C H I L E
AES GENER: POSCO Engineering to Build Plants for Firm
GMAC LLC: Moody's Comments on US$1.2 Bln Cap Injection to ResCap
C O L O M B I A
ROO GROUP: Launches New Brand; Renames Firm to KIT Digital
D O M I N I C A N R E P U B L I C
ALCATEL-LUCENT SA: Wins US$367.4 Bln Patent Case vs. Microsoft
E C U A D O R
PETROECUADOR: Poised to Sign 1st Batch of Pacts With Oil Firms
PETROECUADOR: Sells 9.36 Million Barrels of Crude
PETROECUADOR: May Terminate Petrobras' Oil Extraction Contract
G U A T E M A L A
BRITISH AIRWAYS: Will Reduce Standard Travel Agent Commission
J A M A I C A
DIGICEL LTD: Names David Hunter as CEO for Jamaica Unit
DYOLL GROUP: Denies Overpayment of J$117MM in Management Fees
NAT'L COMMERCIAL: Court to Hear Olint's Appeal on Bank's Lawyer
NATIONAL WATER: Illegal Connections Must Stop by April 28
M E X I C O
AMERICAN AIRLINES: Unit Opens Flight Routes to 15 Mexican Cities
BANCO DEL BAJIO: Uses Surecomp's Trade Finance Software
FOAMEX INT'L: Dec. 30 Balance Sheet Upside-Down by US$298 Mil.
EMPRESAS ICA: CPH Closes US$910 Mln LT Loan for La Yesca Project
ING BANK (MEXICO): Moody's Assigns D+ Bank Fin'l Strength Rating
MERISANT COMPANY: Moody's Withdraws 'B3' Ratings on Planned Loan
MOVIE GALLERY: Voting Results Show Overwhelming Support for Plan
RESIDENTIAL CAPITAL: Moody's Rtgs. Unmoved by Capital Injection
SONIC CORP: Gabriel Tsampalieros Named to Board of Directors
SR TELECOM: Reports US$132.4 Mil. Net Loss in Year Ended Dec. 31
SR TELECOM: Closes US$6 Million Sale of Asset to Group Legasse
TELTRONICS INC: Dec. 31 Balance Sheet Upside-Down by US$4.5 Mil.
* MEXICO: Fitch Reviews Toll Road Ratings Over Flat Business Tax
P A N A M A
CHIQUITA BRANDS: Inks New $350 Million Credit Facility
CHIQUITA BRANDS: Morten Arntzewn Resigns as Board Director
P E R U
GRAN TIERRA: To Commence Trading on the American Stock Exchange
P U E R T O R I C O
MAAX HOLDINGS: Moody's Withdraws Junk Ratings for Biz Reasons
SIMMONS COMPANY: S&P Changes Outlook to Negative; Keeps 'B' Rtg.
V E N E Z U E L A
CEMEX SAB: Open to Talks on Venezuelan Takeover
CA LA ELECTRICIDAD: Settles Tender Offer & Consent Solicitation
HARVEST NATURAL: Board Member John Clarke Says No to Re-Election
PETROLEOS DE VENEZUELA: Eyes 5MM Barrels/Year from Joint Venture
PETROLEOS DE VENEZUELA: Mulls Programs to Explore & Produce Oil
PETROLEOS DE VENEZUELA: Payment to Fonden to be Taken from Tax
X X X X X X
* Latin America Sees Brazil as First MPI 3 Country, Fitch Says
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: May Lose License if Cash Hike Remains Unclear
-----------------------------------------------------------
Ente Nazionale per l'Aviazione Civile, Italy's regulatory body
of air transport activities, may revoke Alitalia S.p.A.'s
license in the next three weeks if the national carrier cannot
come up with a recapitalization plan, Bloomberg News reports
citing ENAC chief Vito Riggio.
Mr. Viggio said ENAC will meet with officials from Alitalia and
the finance ministry to ask for guarantees that the carrier
could still meet financial obligations.
"We are very concerned now as the only chance of a capital
injection is fading away," Mr. Riggio told Bloomberg News,
adding that ENAC can revoke Alitalia's license if it is in
"permanent financial difficulty and has no clear prospects."
Mr. Viggio commented to Bloomberg News that if Alitalia is
placed into special administration, there would be repercussions
on the local market, since the carrier controls about half of
the Italian air transportation market.
Mr. Viggio, however, warned, "If they don't convince us, we'll
have to take action."
As reported in the TCR-Europe on April 3, 2008, Alitalia S.p.A.,
labor unions, professional associations, and Air France-KLM SA
stopped negotiations after failing to reach an agreement
that would accomplish the sale's effectiveness conditions,
satisfaction of which would finalize the acceptance by Alitalia
and Italy of Air France's binding offer.
Alitalia's board said it would review it financial options
before deciding today, April 8, 2008, whether to continue its
operations or to file for bankruptcy proceedings.
Italian Finance Minister Tommaso Padoa-Schioppa said that if the
sale to Air France fails, Alitalia may seek protection from
creditors and the government would appoint a special
commissioner to initiate bankruptcy proceedings. The government
had pledged to grant Alitalia a EUR300 million bridging loan if
Air France's takeover pushes through. Alitalia badly need more
funds as it had less than EUR200 million in cash and credit
available at March 31, 2008.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes. The Italian government owns 49.9%
of Alitalia. The company has operations in Argentina.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, and
EUR625.6 million in 2006.
ARIANNA SA: Proofs of Claim Filing Deadline is May 19
-----------------------------------------------------
Jose Carriquiry, the court-appointed trustee for Arianna SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until May 19, 2008.
Mr. Carriquiry will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 20 in Buenos Aires, with the assistance of Clerk
No. 39, 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 Arianna 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 Arianna's accounting
and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Carriquiry is also in charge of administering Arianna's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Arianna SA
Catamarca 295
Buenos Aires, Argentina
The trustee can be reached at:
Jose Carriquiry
Loyola 660
Buenos Aires, Argentina
ARTECO CONST: Proofs of Claim Filing is Until June 4
----------------------------------------------------
Aldo Emilio Cambiasso, the court-appointed trustee for Arteco
Const. SA's bankruptcy proceeding, will be verifying creditors'
proofs of claim until June 4, 2008.
Mr. Cambiasso will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 2 in Buenos Aires, with the assistance of Clerk
No. 3, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Arteco Const. 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 Arteco Const.'s
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Cambiasso is also in charge of administering Arteco Const.'s
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Arteco Const. SA
Asuncion 4073
Buenos Aires, Argentina
The trustee can be reached at:
Aldo Emilio Cambiasso
Cerrito 1070
Buenos Aires, Argentina
AYU SA: Proofs of Claim Filing Deadline is May 13
-------------------------------------------------
Gimena Botana, the court-appointed trustee for Ayu SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until May 13, 2008.
Ms. Botana will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 20 in Buenos Aires, with the assistance of Clerk
No. 40, 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 Ayu 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 Ayu's accounting and
banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Ms. Botana is also in charge of administering Ayu's assets under
court supervision and will take part in their disposal to the
extent established by law.
The debtor can be reached at:
Ayu SA
Scalabrini Ortiz 234
Buenos Aires, Argentina
The trustee can be reached at:
Gimena Botana
Tucuman 540
Buenos Aires, Argentina
DESARROLLOS DE ACUERDOS: Trustee to Verify Claims Until May 26
--------------------------------------------------------------
Estudio Sadofschi y Uruena, the court-appointed trustee for
Desarrollos de Acuerdos Comerciales SA's reorganization
proceeding, will be verifying creditors' proofs of claim until
May 26, 2008.
Estudio Sadofschi will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 8 in Buenos Aires, with the assistance of Clerk
No. 16, 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 Desarrollos de Acuerdos
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 Desarrollos de
Acuerdos' accounting and banking records will be submitted in
court on Aug. 11, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly on March 16, 2009.
The debtor can be reached at:
Desarrollos de Acuerdos Comerciales SA
Cordoba 669
Buenos Aires, Argentina
The trustee can be reached at:
Estudio Sadofschi y Uruena
Riobamba 496
Buenos Aires, Argentina
REVLON INC: Net Loss Slides to US$16 Mil. in Year ended Dec. 31
---------------------------------------------------------------
Revlon Inc. released financial results for the full year and
fourth quarter ended Dec. 31, 2007.
Net loss in the full year 2007 was US$16.1 million compared to a
net loss of US$251.3 million in the full year 2006. Adjusted
EBITDA in the full year 2007 was US$224.5 million, compared to
an Adjusted EBITDA of US$78.2 million last year.
Operating income was US$121.0 million in the full year 2007,
versus an operating loss of US$50.2 million in the full year
2006.
In the full year 2006, Vital Radiance, executive severance and
restructuring expenses unfavorably affected the company's
operating income and net loss by US$145.1 million and Adjusted
EBITDA by US$122.9 million. Results for the full year 2007
included restructuring expenses of US$7.3 million.
Excluding the impact of these items, the improvements in
operating income, net loss and Adjusted EBITDA were driven by
net sales increases, continued benefits from restructuring
actions and ongoing cost controls.
"We are executing our strategy and our financial results in 2007
were our best in many years, David Kennedy, Revlon president and
chief executive officer, said. "We generated US$224.5 million
in Adjusted EBITDA and our negative free cash flow was US$13.8
million. Our improved financial performance was driven by
increased net sales, continued benefits from our restructuring
actions and ongoing control of our costs."
"We fully recognize the need to further improve our performance,
and enter 2008 with a continued focus on increasing the value of
our company by building the Revlon brand and driving towards
both profitable sales growth and positive free cash flow," Mr.
Kennedy added.
Fourth Quarter Results
Net income in the fourth quarter of 2007 was US$40.8 million
compared with a net loss of US$5.5 million in the fourth quarter
of 2006. Adjusted Earnings Before Interest, Taxes, Depreciation
and Amortization or EBITDA in the fourth quarter of 2007 was
US$106.3 million, compared to an Adjusted EBITDA of US$108.2
million in the same period last year.
Operating income was US$80.4 million in the fourth quarter of
2007, versus operating income of US$70.1 million in the fourth
quarter of 2006.
In the fourth quarter 2006, Vital Radiance and restructuring
expenses unfavorably affected the company's operating income and
net loss by US$20.8 million and Adjusted EBITDA by US$9.7
million. The fourth quarter of 2007 included restructuring
expenses of US$0.4 million.
Excluding the impact of these items, the decreases in operating
income and Adjusted EBITDA were largely attributable to
increased brand support and higher performance-based incentive
compensation. Net income was reduced by the same factors that
affected Operating Income and Adjusted EBITDA. Net income in
the fourth quarter of 2006 included a charge of US$23.1 million
related to the early extinguishment of debt.
Cash Flow and Balance Sheet
Cash flow provided by operating activities in the full year 2007
was US$3.8 million, compared to cash flow used in operating
activities of US$138.7 million in the full year 2006. This
improvement was due to a lower net loss and decreased permanent
display spending, partially offset by changes in net working
capital.
At Dec. 31, 2007, the company's balance sheet showed total
assets of US$889.3 million, total liabilities of US$1,971.3
million and total stockholders' deficiency of US$1,082 million.
About Revlon Inc.
Headquartered in New York City, Revlon Inc. (NYSE:REV) --
http://www.revlon.com/-- conducts its business through its
direct wholly owned operating subsidiary, Revlon Consumer
Products Corporation and its subsidiaries, which manufactures,
markets and sells an array of cosmetics, skincare, fragrances,
beauty tools, hair color and personal care products. The
company is a mass-market cosmetics brand. The company's Latin
American operations are located in Argentina, Brazil, Chile,
Mexico and Venezuela.
* * *
The company's Sept. 30, 2007, consolidated balance sheet showed
US$882.4 million in total assets and US$2.03 billion in total
liabilities, resulting in a US$1.15 billion in total
shareholders' deficit.
Net loss in the third quarter of 2007 was US$10.4 million,
compared with a net loss of US$100.5 million in the third
quarter of 2006.
SANIDAD SIGLO: Proofs of Claim Filing Deadline is May 1
-------------------------------------------------------
Silvia Fernandina, the court-appointed trustee for Sanidad Siglo
XXI SRL's bankruptcy proceeding, will be verifying creditors'
proofs of claim until May 13, 2008.
Ms. Fernandina will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 49, 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 Sanidad Siglo 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 Sanidad Siglo's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Ms. Fernandina is also in charge of administering Sanidad
Siglo's assets under court supervision and will take part in
their disposal to the extent established by law.
The debtor can be reached at:
Sanidad Siglo XXI SRL
Tucuman 1539
Buenos Aires, Argentina
The trustee can be reached at:
Silvia Fernandina
Asuncion 4642
Buenos Aires, Argentina
VIEJO INDECENTE: Proofs of Claim Filing Deadline is May 12
----------------------------------------------------------
Carlos Adalberto Perez, the court-appointed trustee for Viejo
Indecente SRL's bankruptcy proceeding, will be verifying
creditors' proofs of claim until May 12, 2008.
Mr. Perez will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 14 in Buenos Aires, with the assistance of Clerk
No. 28, 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 Viejo Indecente 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 Viejo Indecente's
accounting and banking records will be submitted in court.
La Nacion didn't state the reports submission deadlines.
Mr. Perez is also in charge of administering Viejo Indecente's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Viejo Indecente SRL
Thames 1907/07
Buenos Aires, Argentina
The trustee can be reached at:
Carlos Adalberto Perez
Larrea 785
Buenos Aires, Argentina
=============
B E R M U D A
=============
GROVE MANAGEMENT: Proofs of Claim Filing Deadline is May 1
----------------------------------------------------------
Grove Management Limited's creditors have until May 1, 2008, to
prove their claims to Carolynn D. Hiron, 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.
Grove Management's shareholder decided 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:
Carolynn D. Hiron
Olympia Capital (Bermuda) Limited
Williams House, 20 Reid Street
Hamilton, Bermuda
=============
B O L I V I A
=============
VISTA GOLD: Sells Unit & Bolivian Project to Republic Gold
----------------------------------------------------------
Vista Gold Corp. reported the sale of its wholly-owned
subsidiary Vista Gold (Antigua) Corp. to Republic Gold Limited.
Vista Gold Antigua indirectly held the company's interest in the
Amayapampa gold project in Bolivia. Under the terms of the
transaction, Republic Gold has agreed to pay Vista Gold US$3
million in three payments of US$1 million. The first of these
payments is due and payable upon the start of commercial
production at Amayapampa followed by US$1 million payments on
each of the first and second anniversaries of the start of
commercial production. In addition, Republic Gold has agreed to
pay the company a net smelter return royalty (NSR) on the gold
produced by or on behalf of Republic Gold from the Amayapampa
project in varying percentages depending on the price of gold
per ounce. When gold is between US$500.01 and US$650 per ounce,
a 2% NSR is payable, when the price of gold is between US$650.01
and US$750 per ounce, a 3% NSR is payable, and when the price of
gold is US$750.01 per ounce and above, the NSR will be 3.5%.
The NSR is capped at 720,000 gold equivalent ounces and no NSR
payments are due to Vista if the gold price is below US$500 per
ounce. Vista Gold will retain a first right of refusal in the
event Republic Gold decides to sell the property and will also
retain a right to re-acquire the property if Republic Gold
or Vista Gold Antigua have not moved to close a financing under
a project financing facility within five years.
Vista's President and Chief Operating Officer, Fred Earnest
stated, "We view the sale of Amayapampa as a strategic
divestiture that will allow us to concentrate our financial and
personnel resources on developing our larger Paredones Amarillos
(Mexico) and Mt. Todd (Australia) projects. Republic has been
involved in the Amayapampa project in recent years, and we
believe that it has the experience and technical team to
expeditiously place the project into production to take
advantage of current gold price levels."
Additionally, Vice President Business Development, Howard
Harlan, has announced that he intends to retire after 40 years
in the mining industry and has tendered his resignation
effective April 4, 2008. Executive Chairman and Chief Executive
Officer, Mike Richings said, "on behalf of the Board and all his
friends at Vista, I would like to wish him a long and happy
retirement and to thank him for his hard work, loyalty and his
many valuable contributions to Vista. Howard has had some of
the more difficult and challenging tasks we have faced -- he has
always tackled them enthusiastically and with determination. We
look forward to continuing our relationship in the future as he
has indicated that he will be available to assist us on a part-
time basis as a consultant."
About Vista Gold Corp.
Vista Gold Corp. (Amex: VGZ; TSX), based in Littleton, Colorado,
evaluates and acquires gold projects with defined gold
resources. Additional exploration and technical studies are
undertaken to maximize the value of the projects for eventual
development. The corporation's holdings include the Maverick
Springs, Mountain View, Hasbrouck, Three Hills, Wildcat projects
and Hycroft mine, all in Nevada, the Long Valley project in
California, the Yellow Pine project in Idaho, the Paredones
Amarillos and Guadalupe de los Reyes projects in Mexico, the
Amayapampa project in Bolivia, and the Awak Mas deposit in
Indonesia.
* * *
As reported in the Troubled Company Reporter on April 1, 2004,
Vista Gold's independent auditors expressed doubt about the
company's ability to continue as a going concern after reviewing
its financial statements for the year ending Dec. 31, 2003.
Vista Gold reported US$14.2 million net loss in the year ended
Dec. 31, 2007, US$2.2 million net loss for the three-month
period ended Sept. 30, 2007, and US$3.23 million net loss for
three- month period ended June 30, 2007.
===========
B R A Z I L
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BANCO CRUZEIRO: Inks Swap Contracts with UBS Pactual
----------------------------------------------------
Banco Cruzeiro do Sul has signed swap contracts with UBS
Pactual.
According to Banco Cruzeiro, each contract involves
BRL50 million with a maximum tenor of 365 days.
Business News Americas says that Banco Cruzeiro's free float of
81.1% of preferred shares won't be affected by the UBS Pactual
transaction.
Headquartered in Sao Paulo, Brazil, Banco Cruzeiro do Sul SA
(Bovespa - CZRS4) -- http://www.bcsul.com.br/-- is a private-
sector multiple bank with operations in the consumer segment,
through paycheck-deductible loans to public employees and social
security beneficiaries, and in the corporate segment, offering
middle-market companies short-term loans usually backed by
receivables. The bank's core business is lending to civil
servants, with payments automatically deducted from payrolls.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 27, 2008, Moody's Investors Service assigned a Ba1 long-
term foreign currency debt rating to Banco Cruzeiro do Sul
S.A.'s existing US$30,000,000 senior unsecured notes due in May
2010. Moody's said the outlook on the rating is stable.
BANCO DAYCOVAL: Will Repurchase Up to 10% of Preferred Shares
-------------------------------------------------------------
Banco Daycoval will buy back up to 10% of preferred shares from
April 7, 2008, through April 3, 2009.
Business News Americas relates that Banco Daycoval could
repurchase 6.43 million preferred shares for BRL74.5 million
based on the bank's share prices of BRL11.59 each as of
April 7, 2008.
BNamericas notes that UBS Pactual, Itau, and Concordia will be
the intermediaries.
Banco Daycoval raised some BRL1.09 billion when it went public
in July 2007. Its net profit increased 104% to BRL206 million
in 2007, compared to 2006, BNamericas states.
Headquartered in Sao Paulo, Brazil, Banco Daycoval started its
activities in 1968, with the creation of Daycoval DTVM and Valco
Corretora de Valores. Brothers Ibrahim and Sasson Dayan control
the bank. It is the core business of its shareholders and
specializes in financing small- and medium-sized companies,
backed by receivables. It also operates with consignment
lending for payroll deduction and consumer financing. Since
June 2007, the bank has had 29% of its shares traded at Bovespa
on the New Brazilian Stock Market. These shares enjoy a tag-
along privilege, giving minority shareholders 100% of the value
of the block of controlling shares in the event of the sale of
the institution.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2007, Fitch Ratings placed Banco Daycoval S.A.'s
Long-term foreign currency Issuer Default Rating at 'BB-' and
Long-term local currency IDR at 'BB-' with a Stable Outlook.
BRASKEM SA: Copesul Goes Offline for Planned Maintenance
--------------------------------------------------------
Copesul, a Braskem petrochemical company located in Triunfo in
Brazil's Rio Grande do Sul state, has began a planned
maintenance shutdown on March 31, 2008 at Planta 1 that will
last 30 days. Along with the turnaround, the plant's
petrochemical technology and capacity will be upgraded.
Planta 1's ethylene production capacity will increase by 28,000
tons per year, and its propylene production capacity will rise
16,600 tons per year. Copesul's total capacity will increase
from 1.22 million tons per year to 1.25 million tons per year.
Braskem SA (BOVESPA: BRKM5; NYSE: BAK; LATIBEX: XBRK) --
http://www.braskem.com.br/-- is a thermoplastic resins
producer in Latin America, and is among the three largest
Brazilian-owned private industrial companies. The company
operates 13 manufacturing plants located throughout Brazil, and
has an annual production capacity of 5.8 million tons of resins
and other petrochemical products. The company reported
consolidated net revenues of about US$9 billion in the trailing
twelve months through Sept. 30, 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 17, 2008, Fitch Ratings affirmed the 'BB+' foreign and
local currency issuer default ratings of Braskem S.A. Fitch
also affirmed the 'BB+' ratings on the company's senior
unsecured notes 2008, 2014, and senior unsecured notes 2017.
CONSTRUTORA NORBERTO: Selling US$200 Million Notes Due 2017
-----------------------------------------------------------
Construtora Norberto Odebrecht SA has sold US$200 million of
notes due in 2017 in a reopening, Guillermo Parra-Bernal of
Bloomberg News reports.
According to data compiled by Bloomberg, the company's Odebrecht
Finance Ltd. unit sold the 7.5 percent notes at a price of
100.5 cents on the dollar.
The Bloomberg data shows that Odebrecht is the seventh Latin
American borrower to complete a bond offering in international
markets since January. Aurelio Rodriguez, managing director at
Investment Placement Group in San Diego, told reporters that the
sale indicated the revival for Latin American corporate debt as
the region heads for a fifth year of annual economic expansion
above 4 percent.
Mr. Rodriguez, who oversees US$2.5 billion in local and foreign
currency-denominated assets, is hoping that the "sale kick
starts interest for Latin corporate debt among cross-over
buyers."
Credit Suisse Group and Deutsche Bank AG were the financial
advisors for Odebrecht on the deal. Mr. Rodriguez declined to
comment about whether he placed orders for the bonds.
Construtora Norberto Odebrecht SA -- http://www.odebrecht.com/
-- is a Latin American engineering and construction company
fully owned by the Odebrecht Group, one of the 10 largest
Brazilian private groups. Construtora Norberto is the world's
largest builder of hydroelectric plants, of sanitary and storm
sewers, water treatment and desalination plants, transmission
lines and aqueducts. The Group's main businesses are heavy
engineering and construction based in Rio de Janeiro, Brazil,
and Braskem S.A., its chemicals/petrochemicals company, based in
Sao Paulo, Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 5, 2007, Standard & Poor's Ratings Services raised its
long-term corporate credit rating on Construtora Norberto
Odebrecht to 'BB' from 'BB-'. At the same time, S&P assigned
its 'BB' issue rating to the proposed US$300 million, 10-year
MTNs to be issued by Odebrecht Finance Ltd. and unconditionally
and irrevocably guaranteed by CNO. S&P said the outlook was
revised to stable from positive.
CONSTRUTORA NORBERTO: Fitch Puts 'BB+' Rating on 10-Year Notes
--------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to the 10-year senior
unsecured notes issued by Odebrecht Finance Ltd., maturing
Oct. 15, 2017, in the amount of US$100 million, in complement to
the US$200 million senior unsecured notes issued by Odebrecht
Finance in October 2007. The notes are irrevocably and
unconditionally guaranteed by Construtora Norberto Odebrecht
S.A. Odebrecht Finance is a wholly owned subsidiary of
Odebrecht S.A., which controls Construtora Norberto. As in the
former US$200 million issuance, the net proceedings of the
US$100 million issue will flow to Odebrecht, which will transfer
them to three companies of the group: Odebrecht Investimentos em
Infra-estrutura Ltda., Odebrecht Oleo e Gas Ltda., and Odebrecht
Empreendimentos Imobiliarios Ltda. The amount received will be
used by these companies for investments, working capital and
other corporate purposes.
Fitch rates Construtora Norberto Odebrecht SA with an Issuer
Default Rating of 'BB+', for foreign and local currency, and a
national rating of 'AA(bra)'. The Outlook for the corporate
ratings is Stable.
The issuance's rating is based on the underlying credit quality
of Construtora Norberto Odebrecht, which incorporates its
leading position in Latin America and expertise in providing
engineering and construction services in Brazil and around the
world, as well as its geographical and project diversification.
The company has low leverage and a solid liquidity position, and
has consistently generated positive cash flow. Its backlog
continues to increase and currently represents nearly three
years of contracts. The company operates in 22 countries and
currently has ongoing works in 15 countries, which provides
significant access to hard currency and mitigates transfer and
convertibility risk; overseas operations represent more than two
thirds of revenues. It is exposed to economic and political
volatilities associated with emerging markets, where its primary
operations are located.
Construtora Norberto's operating performance has been steadily
improving over the last several years. The company's leverage
is low and consistent with the rating category. Net revenues of
BRL8.6 billion in 2007 have grown 90% from year-end 2003, and
operating EBITDA reached BRL877 million, an increase of 114%.
Over the same period, total debt/operating EBITDA declined from
3.3 times to 1.4, and net debt/operating EBITDA from 1.3 to zero
net debt. Low leverage and stronger liquidity helps mitigate
risks associated with long lead times, working capital, and
project completion risks. The company receives progress
payments as certain project milestones are completed, which also
helps to mitigate project completion risks.
Construtora Norberto's business prospects are good; the company
had a sizeable backlog of approximately US$13.3 billion at the
end of 2007, up from US$3.9 billion at the end of 2005. The
backlog primarily relates to overseas projects (approximately
US$10.6 billion), and is expected, in accordance with new
projections, to grow to approximately US$15 billion at end 2008.
The company's exposure to emerging market project risks is
somewhat mitigated with large advance payments, its experience
and track record of operating in these markets, its
participation in only the most strategic country projects, and
participating in projects financed by export, multilateral and
international agencies. The company mitigates currency risks by
matching revenues and costs using the same currency for each
project and has developed strong relationships with key local
subcontractors, suppliers, and workforce in its core countries
of operation. Of its total net revenue in 2007, 70% was
generated abroad and the remaining 30% in Brazil.
Construtora Norberto Odebrecht SA is a Latin American
engineering and construction company fully owned by the
Odebrecht Group, one of the 10 largest Brazilian private groups.
The company is the world's largest builder of hydroelectric
plants, sanitary and storm sewers, water treatment and
desalination plants, transmission lines and aqueducts. The
Group's main businesses are heavy engineering and construction
based in Rio de Janeiro, Brazil, and Braskem S.A., its
chemicals/petrochemicals company, based in Sao Paulo, Brazil.
LOCALIZA RENT: S&P Sees Growth in Brazilian Car Rental Industry
---------------------------------------------------------------
Despite significant improvement in the past several years, the
Latin American car rental industry is in its early stages when
compared with more mature markets in the U.S. and Europe. This
increases the operating risks for companies in the region but
also provides opportunities for increased growth and
profitability. In the region, Standard & Poor's Ratings
Services rates only Localiza Rent a Car S.A., (BB/Stable/--),
the largest car rental company in Brazil. The Brazilian car
rental industry remains very fragmented, consisting of 1,900
small family-owned companies spread throughout the country in
2006 and midsize operations of multinational participants such
as Avis, Hertz, and Portugal's SAG. The industry was estimated
to have a total fleet of 250,000 cars in 2006. Localiza is the
leading player and holds approximately a 21% market share, much
larger than those of the second- and third-largest competitors.
A large portion of Brazilian sales have traditionally been
derived from airport travelers (both business and, increasingly,
leisure), but growth has been more pronounced in off-airport
stores (CAGR of 37% in 2006-2007, compared with 15% in airports)
because of increased use of corporate short-term leases,
replacement policies by insurance companies, and expanding
economic activity. Off-airport revenues accounted for 62% of
Localiza's car rental revenues in 2007. Corporate fleet
management is another segment that has grown significantly.
Although very competitive, this business provides Brazilian car
rental companies with long-term, stable revenue streams.
With 100% risk cars, the success of Localiza's business model
partially derives from its efficient used car sales network.
The network allows the company to replace its fleet at a fast
pace and generate profits from favorable purchase prices. It is
also a source of market expertise to forecast vehicle
depreciation and provides a capable sales force to efficiently
divest vehicles. The company's cars are primarily in the low-
end segment, which is quite liquid, and the company's sales
network, essential for this business, is based in locations with
the strongest market penetration.
Headquartered in Belo Horizonte, Minas Gerais, Brazil, Localiza
Rent a Car SA operates car rental, fleet management, and used
car businesses in Brazil, and franchises rental car operations
throughout Latin America. At the end of March, 2007, Localiza
had a total fleet of 38,800 cars and 316 car rental locations
(278 in Brazil, with 145 company-owned) in nine countries.
Founded in 1973, Localiza is the market leader in Brazil in each
of the car rental lines of business, including replacement and
fleet management markets, and also has the largest number of car
rental locations at the principal Brazilian airports.
TAM SA: Joins 10 Firms to Develop Electronic Waybill in Brazil
--------------------------------------------------------------
TAM Linhas Aereas, through its cargo division TAM Cargo, is in
partnership with the Brazilian Federal Tax Authorities, a group
of more than 10 companies from different transport sectors and
the State Secretaries of Finance to develop an Electronic
Waybill (known as a CT-e) project in Brazil.
The project is to implement, later this year, a single Transport
Waybill format -- a standard document all cargo transporters
will issue before shipping -- that will replace the current
paper forms with an electronic document that can be used for all
transport categories.
The CT-e will make TAM's operations faster and more efficient,
as some processes related to transport, which are currently
manual, will be automated.
Currently, when cargos are unloaded from aircraft, they undergo
an inspection process in some Brazilian states and cannot be
delivered to addressees until a series of manual procedures are
completed. Automating the process will reduce the time cargo
remains at inspection points, making compliance with legal
requirements faster and more efficient, and simplifying issuance
of the Waybill -- which currently must be completed on four to
seven copies.
As well as these benefits, the CT-e will also bring a
significant reduction in the use of paper. Currently TAM
Cargo issues around 200 thousand waybills per month, which
corresponds to 2.4 million documents annually. With the digital
system in operation, the company estimates savings of around
five tons of paper per year.
TAM Cargo, the cargo business unit of TAM Linhas Aereas, offers
express delivery, conventional and special cargo services. It
serves many locations in Brazil and abroad, flying directly to
42 Brazilian airports, and covers more than 3,900 locations with
around 700 flights daily.
About TAM
TAM currently -- http://www.tam.com.br/-- has business
agreements with the regional airlines Pantanal, Passaredo, Total
and Trip. As of Jan. 14, the daily flight on the Corumba --
Campo Grande route in Mato Grosso do Sul began to be operated by
a partnership with Trip. With the expansion of the agreement
with NHT, TAM will now be serving 82 destinations in Brazil, 45
of which with its own flights. In addition, the company is
strengthening its presence in Rio Grande do Sul and Santa
Catarina.
* * *
On July 23, 2007, Fitch Ratings affirmed the 'BB' foreign
currency and local currency Issuer Default Ratings of TAM S.A.
Fitch has also affirmed the 'BB' rating of its US$300 million of
senior unsecured notes due 2017 as well as the company's
'A+(bra)' national scale rating and for its first debentures
issuance (BRL500 million). Fitch said the rating outlook is
stable.
TELEMAR NORTE: Completes Stock Purchase Agreement with Vivo
-----------------------------------------------------------
Telemar Norte Leste S.A., Tele Norte Leste Participacoes S.A.,
Amazonia Celular S.A. and Tele Norte Celular Participacoes S.A.,
disclose that all of the conditions precedent established under
the stock purchase agreement between TMAR and Vivo Participacoes
S.A. dated Dec. 20, 2007 have been satisfied, and as a result,
the closing of the transaction occurred.
Accordingly, 1,292,679 common shares and 3,715 preferred shares
of TNCP has been transferred to TMAR. The shares represent
51.86% of the common shares, 0.09% of the preferred shares, and
19.34% of the total share capital of TNCP, which, in turn,
controls Amazonia Celular.
The aggregate acquisition price for the shares under the Stock
Purchase Agreement was BRL128,599,660.51. The amount
corresponds to an acquisition price of BRL99.38 per common share
of TNCP, which is equivalent to a price of BRL152.01 per common
share of Amazonia Celular.
According to the disclosure, prices were adjusted by the average
of the daily rates of the Interbank Deposit Certificate –- CDI
from Aug. 2, 2007 until the date. Additionally, TMAR acquired
from Vivo certain rights for the subscription of new shares to
be issued by TNCP, as set forth in CVM Ruling n degree 319/1999,
as amended, for the price of BRL22,610,739.14.
In view of the closing under the Stock Purchase Agreement, TMAR
intends to submit, together with Credit Suisse (Brasil) S.A.
Corretora de Titulos e Valores Mobiliarios in its capacity as
dealer manager, to the Brazilian Securities Commission requests
for the registration of public tender offers for the acquisition
of all common shares of TNCP and Amazonia Celular held by their
respective non-controlling shareholders.
The Tender Offer for TNCP common shares will be at the price of
BRL79.51 per common share, and the Tender Offer for Amazonia
Celular common shares will be at the price of BRL121.61 per
common share. The prices to be offered for these shares in the
Tender Offers are equal to 80% of the amount paid by TMAR to
Vivo under the Stock Purchase Agreement for the common shares of
TNCP and Amazonia Celular, in compliance with the provisions of
article 254-A of Law n degree 6,404/76.
In view of the occurrence of the closing of the acquisition by
TMAR of the shares corresponding to the control block of TNCP,
TMAR also intends to submit to the Sao Paulo Stock Exchange
drafts of notices of voluntary tender offers for the outstanding
preferred shares issued by TNCP and Amazonia Celular. The
Voluntary Tender Offers will be made for the acquisition of any
and all preferred shares of TNCP and Amazonia Celular and will
be made at the price of BRL33.00 per preferred share of TNCP and
BRL25.55 per preferred share of Amazonia Celular, which may be
preferred class A, B, C, D or E shares. The commencement of the
Voluntary Tender Offers is subject to the non-occurrence of any
material adverse event that might affect TMAR's decision to
commence the Voluntary Tender Offers and to the approval of the
notices of the Voluntary Tender Offers by the Bovespa.
TMAR says that the commencement of the Voluntary Tender Offers
is subject to the overall conditions in the capital and
financial markets and the non-occurrence of any event that may
materially alter TMAR’s perspective regarding the profitability
of TNCP and Amazonia Celular and therefore, impact
TMAR’s decision to commence the Voluntary Tender Offers.
The Voluntary Tender Offers are not intended to cancel the
registration of TNCP or Amazonia Celular as publicly traded
companies with the CVM. TMAR’s management will inform its
shareholders and the market of the satisfaction of the
conditions that would enable the Tender Offers and the Voluntary
Tender Offers to proceed as well as any other events that may
impact their occurrence.
Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste
Participacoes SA -- http://www.telemar.com.br-- is a provider
of fixed-line telecommunications services in South America. The
company markets its services under its Telemar brand name. Tele
Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA;
Telemar Internet Ltda.; and Companhia AIX Participacoes SA.
* * *
As reported on April 27, 2007, Standard & Poor's Ratings
Services placed on CreditWatch with negative implications the
'BB+' corporate credit rating on Tele Norte Leste Participacoes
S.A. The creditwatch resulted from TmarPart's decision to buy
out its holding company's preferred shares.
* BRAZIL: Fitch Says Banks Well Positioned for Downturn Pressure
----------------------------------------------------------------
Fitch Ratings believes that Brazil's banking system is
adequately positioned to absorb the potential pressure from a
downturn, according to a Special Report released titled
"Brazil's MPI-3: Traffic Light Flashes Yellow - Have the Banks
Fastened Their Seat Belts?".
Fitch recently moved Brazil to the MPI 3 category in its
Systemic Risk Matrix, indicating the potential for systemic risk
from sustained credit growth above historic trends, accompanied
by marked appreciation of the BRL. Credit has risen by over 20%
of gross domestic product (GDP) over the past four years to over
50% of GDP, its highest point ever, based on IMF broad credit
definitions.
"The Brazilian banking system looks poised to continue to grow
faster than GDP in 2008. Its fundamentals and leading players
have remained strong and are well positioned to absorb potential
pressure on its growing loan portfolio," according to Managing
Director in Fitch's Latin American Financial Institutions Group,
Peter Shaw.
While the development of the banking system seems robust, some
risks remain. There is a lack of a well-proven credit culture
in Brazil, as reflected in historically low levels of bank
credit to GDP, and no reliable way to measure the overall
indebtedness of individuals. Therefore, a sharp economic
downturn represents the largest risk faced by Brazilian Banks.
The prospects for first half 2008 appear solid, as the momentum
the banks have built to this point should assure continuation of
the trends seen in 2007, and credit growth should continue,
albeit at a more moderate level. "Looking beyond first half
2008, prospects for somewhat slower economic growth, as well as
incipient regulatory efforts aimed at slowing loan growth,
should combine to slow the torrid pace of loan growth, a
development that Fitch would view positively," said Mr. Shaw.
The results of such a slow down on the banks would likely be
felt principally in 2009, as slower loan growth will lead to
pressure on net interest income, while provisioning pressures
will likely also press on operating margins, especially if
higher local interest rates result in additional pressures on
asset quality. While these results are unlikely to match those
seen over the last four years, strong revenue streams should be
able to absorb significantly higher provisions without requiring
the banks to carve into their capital bases in order to absorb
losses. Furthermore, solid private sector franchises of the
large universal banks, combined with the two large public sector
banks, continue to account for the lion's share of the system's
assets, and the regulator continues to evolve toward global best
practices, leaving the system well prepared to face the next
turn in the economic cycle in Brazil.
==========================
C A Y M A N I S L A N D S
==========================
CLEARWATER CAPITAL: Proofs of Claim Filing is Until April 12
------------------------------------------------------------
Clearwater Capital Partners Pacific Ltd.'s creditors have until
April 12, 2008, to prove their claims to John Cullinane and
Derrie Boggess, 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.
Clearwater Capital's shareholder decided on Sept. 14, 2007, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane and Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
INVESTCORP MOODY: Sets Final Shareholders Meeting for April 11
--------------------------------------------------------------
Investcorp Moody T5 Islamic Financing Limited will hold its
final shareholders' meeting on April 11, 2008, at 3:00 p.m. at
the registered office of the company.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the
records of the company for a period of six
years from the dissolution of the company,
after which they may be destroyed.
Investcorp Moody's shareholders agreed on Feb. 14, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attn: Evania Ebanks
Paget-Brown Trust Company Ltd.
Boundary Hall, Cricket Square
P.O. Box 1111, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
INVESTCORP MOODY T5: Final Shareholders Meeting is on April 11
--------------------------------------------------------------
Investcorp Moody T5 Investing Limited will hold its final
shareholders' meeting on April 11, 2008, at 3:30 p.m. at the
registered office of the company.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the
records of the company for a period of six
years from the dissolution of the company,
after which they may be destroyed.
Investcorp Moody's shareholders agreed on Feb. 14, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attn: Evania Ebanks
Paget-Brown Trust Company Ltd.
Boundary Hall, Cricket Square
P.O. Box 1111, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
MIYAKODORI CAPITAL: Proofs of Claim Filing Deadline is April 13
---------------------------------------------------------------
Miyakodori Capital Corporation's creditors have until
April 13, 2008, to prove their claims to John Cullinane and
Derrie Boggess, 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.
Miyakodori Capital's shareholder 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:
John Cullinane and Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
MOUNTAIN FINANCE: Proofs of Claim Filing Deadline is April 11
-------------------------------------------------------------
Mountain Finance Limited's creditors have until April 11, 2008,
to prove their claims to Westport Services Ltd., 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.
Mountain Finance'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 liquidator can be reached at:
Westport Services Ltd.
Attn: Bonnie Willkom
P.O. Box 1111, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
MTC HOLDING: Proofs of Claim Filing is Until April 14
-----------------------------------------------------
MTC Holding (Cayman) Corporation's creditors have until
April 14, 2008, to prove their claims to William Wong, 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.
MTC Holding's shareholder decided on May 30, 2007, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
William Wong
Attn: Rhonda Laws
P.O. Box 268, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 949 2648
Fax: (345) 949 8613
PALLAS GRADE: Sets Final Shareholders Meeting for April 10
----------------------------------------------------------
Pallas Grade SCDO 2002-1 Ltd. will hold its final shareholders'
meeting on April 10, 2008, at Caledonian House, 69 Dr. Roy’s
Drive, George Town, Grand Cayman, Cayman Islands.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Pallas Grade's shareholders agreed on Feb. 20, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Griffin Management Limited
Caledonian Trust (Cayman) Limited
Caledonian House, P.O. Box 1043
Grand Cayman KY1-1102
Cayman Islands
RUTHERFORD GRADE: To Hold Final Shareholders Meeting on April 10
----------------------------------------------------------------
Rutherford Grade SCDO 2003-1 Ltd. will hold its final
shareholders' meeting on April 10, 2008, at Caledonian House, 69
Dr. Roy’s Drive, George Town, Grand Cayman, Cayman Islands.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Rutherford Grade's shareholders agreed on Feb. 20, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Griffin Management Limited
Caledonian Trust (Cayman) Limited
Caledonian House, P.O. Box 1043
Grand Cayman KY1-1102
Cayman Islands
SOUND ENERGY: Sets Final Shareholders Meeting for April 10
----------------------------------------------------------
Sound Energy Capital Offshore Fund, Ltd., will hold its final
shareholders' meeting on April 10, 2008, at 9:00 a.m. at Close
Brothers (Cayman) Limited, 4th Floor Harbor Place, George Town,
Grand Cayman.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the
records of the company for a period of six
years from the dissolution of the company,
after which they may be destroyed.
Sound Energy's shareholders agreed on Feb. 21, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
John Sutlic
Attn: Kim Charaman
Close Brothers (Cayman) Limited
Fourth Floor, Harbor Place
P.O. Box 1034, Grand Cayman KYI-1102
Cayman Islands
Telephone: (345) 949 8455
Fax: (345) 949 8499
SUNDAY SILENCE: Proofs of Claim Filing Deadline is April 13
-----------------------------------------------------------
Sunday Silence Limited's creditors have until April 13, 2008, to
prove their claims to John Cullinane and Derrie Boggess, 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.
Sunday Silence's shareholder decided on March 14, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
John Cullinane and Derrie Boggess
c/o Walkers SPV Limited
Walker House, 87 Mary Street
George Town, Grand Cayman KY1-9002
Cayman Islands
SUTTER INVESTMENT: Final Shareholders Meeting is on April 10
------------------------------------------------------------
Sutter Investment Grade SCDO 2001-1 Ltd. will hold its final
shareholders' meeting on April 10, 2008, at Caledonian House,
69 Dr. Roy’s Drive, George Town, Grand Cayman, Cayman Islands.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) giving explanation thereof.
Sutter Investment's shareholders agreed on Feb. 20, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Griffin Management Limited
Caledonian Trust (Cayman) Limited
Caledonian House, P.O. Box 1043
Grand Cayman KY1-1102
Cayman Islands
=========
C H I L E
=========
AES GENER: POSCO Engineering to Build Plants for Firm
-----------------------------------------------------
POSCO Engineering & Construction Co. had won a US$1.31 billion
contract to construct two coal power plants for AES Gener,
Reuters reports.
POSCO Engineering received a notice to proceed for construction
of the 520-megawatt Angamos coal fired power project in
Antofagasta, Chile.
On Oct. 17, 2007, AES Gener signed a turnkey EPC contract with
POSCO Engineering for the subject project valued at
U$870 million.
The project is expected to serve the increasing power demand of
the mining industry in Northern Chile. The largest off-taker of
the project is expected to be the global mining company BHP
Billiton of Australia with whom AES has already signed a long
term Power Purchase Agreement.
The Angamos project is in Antofagasta, 1300 kilometers north of
Santiago. The project will consist of two plants each with a
capacity of 260 megawatts. Although POSCO Engineering has been
undertaking engineering and other pre-construction activities
since the signing of the contract, actual physical construction
at the site is expected to commence upcoming June with an
expected commercial operation date in the third quarter of 2011.
On October 2007, POSCO E&C signed another EPC contract with AES
Gener (Chile) to build the 270-megawatt Campiche coal fired
power project valued at U$440 million. The notice to proceed
for the Campiche project may be achieved by end of the month.
The commercial operation date of the Campiche project is
expected in the second quarter of 2011. The Campiche project is
in Ventanas, 110 kilometers north of Santiago, and is
immediately adjacent to another 240-megawatt coal fired power
plant that is now under construction by POSCO Engineering,
called Nueva Ventans Power Project. The contract for the Nueva
Ventanas project was signed in 2006.
In January 2008, POSCO Engineering was awarded an EPC contract
by AES Fonseca to build a coal fired power project in the port
city of Cutuco, El Salvador.
About POSCO Engineering
Based in Korea, POSCO Engineering & Construction Co., Ltd. is a
comprehensive engineering and construction company founded on
Dec. 1, 1994, with aims not only to enhance its technology in
engineering and construction areas through integrated operation
of its man powers that have been accumulated over the past
thirty years by the construction of POSCO's most up-to-date
steel works, but also to contribute to the development of the
nation's construction industry.
About AES Gener
AES Gener is the second-largest electricity generation group in
Chile in terms of generating capacity (20% market share) with an
installed capacity of 2,428 megawatts. Gener serves both the
Central Interconnected System or SIC and the Northern
Interconnected System or SING through various subsidiaries and
related companies, including affiliate Guacolda and the
TermoAndes subsidiary. TermoAndes has a generation capacity of
642.8 megawatts, which while located in Argentina serves Chile's
SING via InterAndes transmission line. Gener also participates
in electricity generation in Colombia through Chivor
hydroelectric plant of 1,000 megawatts, and a 25% participation
in Itabo's facilities in the Dominican Republic (432.5
megawatts). Gener is 91.2% owned by AES (IDR rated 'B+' by
Fitch).
* * *
To date, AES Gener carries Moody's Investors Service's Ba2 long-
term foreign bank deposit rating with a stable outlook. The
firm also carries Standard & Poor's Ratings Services' BB+ long-
term foreign issuer credit rating with a positive outlook.
GMAC LLC: Moody's Comments on US$1.2 Bln Cap Injection to ResCap
----------------------------------------------------------------
Residential Capital LLC's announcement that it has received a
US$1.2 billion capital injection from its parent GMAC LLC does
not impact the ratings of either entity. The US$1.2 billion
capital injection is equal to the face amount of ResCap debt
purchased in the open market by GMAC with an estimated current
market value of US$607 million and exchanged for US$607 million
newly created ResCap preferred units. GMAC also disclosed that
it has purchased an additional US$340 million face value of
ResCap debt currently valued at US$266 million that they may
contribute to ResCap.
The senior unsecured rating of GMAC LLC is B1 and ResCap B2.
The rating outook for both firms is negative. The downgrade of
GMAC's rating on Feb. 5, 2008 to B1 with a negative outlook
contemplated that the company would likely continue to provide
capital to support ResCap in the near term. The cash and
capital cost to GMAC of providing the US$1.2 billion capital
injection to ResCap, and the US$340 million of additional debt
purchased but not contributed to ResCap, is within Moody's
expectation of the amount of support GMAC would provide to
ResCap.
In regards to ResCap, the downgrade to B2 on Feb. 5, 2008
incorporated the possibility that the company would receive
sizable support from its parent. Moody's still believes that
ResCap's parents may have a limited tolerance for supporting
ResCap if ResCap's performance and condition fail to meet
management's expectations for improvement during the first half
of 2008. Additionally, Moody's notes that the form of the
capital injection does not improve ResCap's short term liquidity
profile. As stated above, the ResCap rating outlook remains
negative.
About GMAC
GMAC LLC -- http://www.gmacfs.com/-- formerly General Motors
Acceptance Corporation, is a global, diversified financial
services company that operates in approximately 40 countries in
automotive finance, real estate finance, insurance and other
commercial businesses. GMAC was established in 1919 and employs
approximately 26,700 people worldwide. Cerberus Capital
Management LP bought 51% GMAC LLC stake from General Motors
Corp. on December 2006. Its Latin American operations are
located in Argentina, Brazil, Chile, Colombia, Mexico and
Venezuela.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 6, 2008, Fitch Ratings downgraded and removed from Rating
Watch Negative the long-term Issuer Default Rating GMAC LLC and
related subsidiaries to 'BB' from 'BB+'. Fitch has also
affirmed the 'B' short-term ratings. Fitch originally placed
GMAC on Rating Watch Negative on Nov. 14, 2007. The Rating
Outlook is Negative. Approximately US$100 billion of unsecured
debt is affected by this action.
As reported in the Troubled Company Reporter-Latin America on
Feb. 26, 2008, Standard & Poor's Ratings Services lowered its
ratings on Residential Capital LLC and GMAC LLC. Residential
Capital LLC was downgraded to 'B/C' from 'BB+/B'. GMAC LLC was
downgraded to 'B+/C' from 'BB+/B'. The outlook for both
entities is negative.
===============
C O L O M B I A
===============
ROO GROUP: Launches New Brand; Renames Firm to KIT Digital
----------------------------------------------------------
ROO Group launched its new brand identity to better reflect the
company's updated strategic direction and corporate initiatives.
The new brand, KIT digital, represents the company's operational
platform and focus on "Knowledge, Imagination and Technology" to
provide its clients with the strategies and tools necessary to
harness the significant potential of Internet video. The
company's new web site is http://www.kit-digital.com.
KIT digital works closely with consumer brands and content
owners including Verizon, News Corp., Google, Sensis, RCS and
Telstra to develop and implement comprehensive, customized
solutions for maximizing and monetizing their online assets.
To enhance its service offering, the company recently announced
the acquisition and integration of its subsidiary, Sputnik
Agency, a leading interactive marketing agency that has worked
with clients including Holden (General Motors), BP and Saab
Australia.
Last month, the company entered into a content distribution
agreement with Kamera Content, a company that enables corporate
clients such as Vodafone, MSN, Orange, Telefonica and China
Mobile to deliver IPTV to their customers via both mobile and
online networks. At the same time, KIT digital (then ROO Group)
entered into a letter of intent to purchase 100% of the capital
stock of Kamera, a transaction that adds full mobile
distribution capabilities to KIT digital's online video service
offering.
"The transformation from ROO to KIT digital signifies a rebirth
for our company. With a new, profitability-focused management
team and the integration of our interactive marketing
subsidiary, Sputnik Agency-giving us a true end-to-end service
offering for companies who want to harness video over IP-we
believe KIT digital is positioned to lead and consolidate the
industry," said KIT digital chairperson and Chief Executive
Officer, Kaleil Isaza Tuzman. "Our new brand reflects the
efforts we've made since the KIT Capital team assumed control of
the company four months ago. We have worked hard to clean up
the capital structure, divest ourselves of non-core and
unprofitable assets, and refocus our sales and marketing efforts
on higher margin, enterprise clients. We felt the MIP TV
conference which starts today in Cannes, France-at which the
leading companies on both the content and digital delivery sides
of the industry are in attendance-was the right forum to unveil
our new corporate identity and enhanced corporate strategy."
The KIT digital 360 degree program provides clients in media &
entertainment, retail, automotive and financial services with a
digital media management package which allows these clients to
profitably market online video under their own brand, and
includes these salient features:
Device-agnostic, multi-lingual platform for content management
and delivery:
-- Workflow and publishing
-- Video player experience
-- Content streaming (live and VoD)
-- Indexing and storage
-- Advertising
-- Content and analytics
-- Rights management
-- Customer service
Comprehensive interactive agency services:
-- Content syndication and programming
-- Creative development and brand management
-- Campaign development
-- Strategy and planning
KIT digital (formally ROO Group) (OTC Bulletin Board: RGRP) --
http://www.kit-digital.com-- is a global service provider
enabling businesses to leverage their digital media assets and
provide an enhanced user experience. Through its comprehensive,
customized online platform, KIT digital provides clients with an
end-to-end solution to maximize the value of their online
assets. KIT digital has offices in Dubai, Melbourne
(Australia), New York, London, and Bogota (Colombia).
Going Concern Doubt
Moore Stephens PC expressed substantial doubt about ROO Group
Inc.'s ability to continue as a going concern after auditing the
company's consolidated financial statements as of the years
ended Dec. 31, 2006, and 2005. The auditing firm pointed to the
company's recurring losses and negative cash flows from
operations.
===================================
D O M I N I C A N R E P U B L I C
===================================
ALCATEL-LUCENT SA: Wins US$367.4 Bln Patent Case vs. Microsoft
--------------------------------------------------------------
A U.S. federal jury has ordered Microsoft Corp. to pay around
US$367.4 million in infringement damages to Alcatel-Lucent SA,
Reuters reports.
The jury ruled that Microsoft infringed two technology patents:
one which allows users to enter dates into calendars, and
another one that allows tablet computers to recognize
handwriting patterns, Reuters relates.
"We will move immediately to have the two verdicts against
Microsoft overturned," said Tom Burt, Microsoft corporate vice
president and deputy general counsel, told Reuters. "We feel
confident the verdicts will be overturned, just as the court
overturned a verdict last year by a San Diego jury."
Judge Rudi Brewster of the U.S. District Court for the District
of California reversed in August 2007 a jury's decision ordering
Microsoft to pay around US$1.52 billion in patent infringement
damages to Alcatel-Lucent. The company has appealed the
decision.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported on April 4, 2008, Moody's Investors Service 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. Moody's
said the outlook for the ratings is Negative.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
=============
E C U A D O R
=============
PETROECUADOR: Poised to Sign 1st Batch of Pacts With Oil Firms
--------------------------------------------------------------
Ecuadorian Oil Minister Galo Chiriboga told Reuters that
Petroecuador hopes to sign by next week the first batch of
agreements with foreign oil companies for the increase of state
participation in contracts.
Minister Chiriboga commented to Reuters, "The president has the
final word ... but I hope next week we can start signing
understanding memorandums."
As reported in the Troubled Company Reporter-Latin America on
March 3, 2008, Ecuadorian President President Rafael Correa gave
oil firms until March 8 to agree to the changes in their
contracts with Petroecuador. The government wants to turn
existing participation contracts into service provider contracts
that will pay companies a production fee and investment costs.
The Mines and Oil Ministry said that oil contract negotiations
in Ecuador are coming to an end. Once the negotiations end, the
new contracts will be presented to the national constituent
assembly. Petroecuador has reached agreements for six oil
contracts with Petroriental, Repsol YPF, Perenco, and Petrobras.
Petroecuador is still negotiating with Perenco, Andes Petroleum,
Canada Grande, and CNPC for block 11.
Minister Chiriboga admitted to Reuters that he hasn't reached a
deal with all of the firms, but said talks with the firms are
"moving forward nicely."
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
PETROECUADOR: Sells 9.36 Million Barrels of Crude
-------------------------------------------------
Petroecuador has sold a total of 9.36 million barrels of crude,
7.92 million barrels of which are Oriente crude and 1.44 million
barrels are Napo crude, in short-term contracts of 720,000
barrels each.
As reported in the Troubled Company Reporter-Latin America on
April 2, 2008, Petroecuador was seeking bids for the sale of the
Oriente and Napo crude. Petroecuador planned to sell Oriente
crude in 11 cargoes of 720,000 barrels each and Napo in two
cargoes of 720,000 barrels each.
Business News Americas relates that these firms picked up five
lots of Oriente crude after offering spot market price discounts
that ranged up to US$13.96 per barrel:
-- Glencore,
-- Petrobras,
-- Citizens Resources, and
-- Taurus Petroleum.
According to BNamericas, the crude will be shipped to the firms
in May.
BNamericas notes that six lots for Oriente crude were sold to
these companies which offered spot market price discounts of up
to US$12.94 per barrel:
-- Taurus Petroleum,
-- Glencore,
-- Petrobras,
-- Mitsubishi, and
-- Citizens Resources.
The report says that shipments to the firms will be made in
June.
Shell Trading and Taurus Petroleum picked up Napo lots after
offering discounts of US$23.67 per barrel and US$20.98 per
barrel respectively. The crude will be delivered in May,
BNamericas states.
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
PETROECUADOR: May Terminate Petrobras' Oil Extraction Contract
--------------------------------------------------------------
Petroecuador may terminate Petroleo Brasileiro SA's oil
extraction contract for an Ecuadorian oilfield, Reuters reports.
The report relates that Ecuador's Inspector General Xavier
Garaicoa has accused Petrobras of breaching its contract with
Petroecuador by transferring part of an oil block without proper
government authorization and that therefore its contract must be
terminated.
Petroecuador told Reuters that it has asked Petrobras to respond
to charges of a contract breach. Petroecuador's President
Fernando Zurita told journalists that the firm had begun the
termination process.
However, Petroecuador said it will make an official announcement
once Petrobras answers the charges.
Petrobras reportedly has denied the charges. According to
Petrobras, the request for response to the charges is another
chance to show the legality of its actions and will provide
Petroecuador all the documentation requested.
Petroecuador told Reuters that Petrobras is given ten days to
provide documents related to the charges.
The Ecuadorian oil minister will make the final decision on
whether to end the Petrobras' contract. Once Petrobras'
contract with Petroecuador is breached, its assets in the
country will be nationalized, which would take months or years,
Reuters states.
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Will Reduce Standard Travel Agent Commission
-------------------------------------------------------------
British Airways Plc told The Trinidad Guardian that it will
decrease the standard travel agent commission to 1% from 6%
starting May 19, 2008.
According to The Guardian, the reduction will be applied to
flights from outside the Caribbean and sole on separate tickets
except in:
-- the Turks and Caicos,
-- Bahamas, and
-- Cayman Islands.
The commission in these places is already 1% on all journeys
regardless of point of origin, The Guardian says, citing British
Airways.
According to British Airways, the 6% standard commission will be
retained for flights starting from any Caribbean island except
for Turks and Caicos, Bahamas, and Cayman Islands.
British Airways' Latin American and Caribbean Area Commercial
Manger Nick Horne commented to The Guardia, "The change reflects
market conditions such as the prevalence of travel agency fees
as well as the need to appropriately manage our distribution
costs. British Airways remains committed to the travel agency
community as an integral distribution partner and we look
forward to jointly growing our business."
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel
Shops Ltd. BA has offices in India and Guatemala.
* * *
As of Jan. 2, 2008, British Airways Plc carries a senior
unsecured debt rating of Ba1 from Moody's Investors' Service
with a stable outlook.
=============
J A M A I C A
=============
DIGICEL LTD: Names David Hunter as CEO for Jamaica Unit
-------------------------------------------------------
Digicel Ltd. has appointed David Hunter as chief executive
officer of Digicel Jamaica. Prior to his promotion, David
Hunter was CEO of Digicel Bermuda where during his tenure he led
Digicel to the number one position in the market, increasing the
total number of customers by 75 percent since 2006.
Mr. Hunter will leverage more than 12 years’ experience in the
telecommunications industry to ensure Digicel Jamaica continues
to offer the best value and best service in the market.
Previously, Scottish national Mr. Hunter held a number of
positions leading mobile telecommunications operators in Africa.
His past accomplishments include the position of Managing
Director for Celtel International, one of the largest mobile
operators in Africa. In addition, he has previously served as
Managing Director of Celtel Sierra Leone and Telecel Zambia.
Mr. Hunter will report into Digicel’s Group COO, Kevin White,
who is also based in Jamaica.
Colm Delves, CEO of Digicel Group said, “We are confident that
[Mr. Hunter] will build on Digicel Jamaica’s excellent track
record of strong growth experienced in the past seven years. As
our business in Jamaica continues to strengthen, David and our
entire Jamaica team will ensure that our customers continue to
be our number one priority.”
David Hall, who previously held the position of CEO of Digicel
Jamaica since April 2004, will remain with Digicel in the
capacity of CEO North Caribbean where he will be concentrating
on the flourishing markets of Bermuda, the Cayman Islands and
Turks & Caicos.
“David Hall has been instrumental in the phenomenal rise of
Digicel as the leading mobile provider in Jamaica with more than
1.9 million customers. We know that his invaluable experience
and expertise will ensure the continued development of the North
Caribbean markets” said Mr. Delves.
Since Digicel initially launched in Jamaica in 2001, mobile
penetration has climbed from 10 percent in 2001 to more than 80
percent. Digcel has invested more than US$750 million to build
a nationwide network in Jamaica with close to 100% population
coverage. The company also offers its cutting edge WiMAX
technology. With an employee base of more than 1,000, Digicel
Jamaica has been consistently recognized as the number one
company for customer care in Jamaica.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
In February 2007, Moody's Investors Service affirmed Caa2 senior
unsecured rating to Digicel Group Limited's US$1.4 billion
senior unsecured notes offering.
DYOLL GROUP: Denies Overpayment of J$117MM in Management Fees
-------------------------------------------------------------
The Dyoll Group has denied the claim of Dyoll Insurance
Company's liquidators that it made a J$117 million overpayment
in management fees, Radio Jamaica reports.
Radio Jamaica relates that the unit's liquidators' filed a
lawsuit against the Dyoll Group for the overpayment.
According to Radio Jamaica, the liquidators alleged that the
money was accumulated between 1999 and 2005.
The Dyoll Group's legal representatives told Radio Jamaica that
there is no basis for the claim, as indicated in the information
contained in the firm's fourth quarter results released last
week.
Radio Jamaica notes that despite financial problems, the Dyoll
Group was able to have profit for the 12 months ended
Dec. 31, 2007. The Dyoll Group's net profit decreased to
J$5 million in 2007, compared to J$7.2 million in 2006.
The Dyoll Group made no revenues during the 12 months ended
December 2007, but it made almost J$16 million in net interest
income on its bank deposits, Radio Jamaica states.
Dyoll Group Ltd. is a Jamaica-based company that is principally
engaged in the insurance business. Jamaica's Financial Services
Commission has assumed temporary management of the Jamaica-based
Dyoll Insurance Co. Ltd. in March 7, 2005, in order to establish
the true position of the Company, address the matter of
settlement to its claimants and ensure that its policies will
remain in force after a high level of insurance claims were
leveled on the company as a result of the hurricane Ivan.
Kenneth Tomlinson was appointed temporary manager. Jamaica's
Supreme Court ordered for the distribution of a US$653 million
fund held by the FSC in accordance with the Insurance Act 2001,
section 59, which says that the prescribed deposit, on the
winding up of an insurance company, should be applied first to
settle the claims of local policyholders.
NAT'L COMMERCIAL: Court to Hear Olint's Appeal on Bank's Lawyer
---------------------------------------------------------------
A Jamaican court will hear an appeal from Olint Limited against
the National Commercial Bank Jamaica Limited's hiring of former
Financial Services Commission Chairperson Michael Hylton as its
legal representative, Radio Jamaica reports.
As reported in the Troubled Company Reporter-Latin America on
March 10, 2008, High Court Judge Roy Jones ruled in favor of the
National Commercial in a lawsuit Olint filed to remove Mr.
Hylton from the bank's legal team. Olint sought to bar Mr.
Hylton from representing the National Commercial. Olint took
out an injunction against National Commercial on Jan. 11, when
the bank decided to close the investment club's accounts for
being allegedly an unregulated company operating in breach of
the Securities Act. Olint said that Mr. Hylton was a former
solicitor general and chairperson of the FSC, which had issued a
cease-and-desist order on Olint Corporation in March 2006.
Olint has concerns that Mr. Hylton was a member of the FSC's
board when that commission issued the cease-and-desist order.
Olint's lawyers said they would be filing an appeal on the
court's decision by April 7.
Olint's lawyers further claimed that Mr. Hylton "was privy to
confidential information shared between Olint and the FSC when
he was chairman," Radio Jamaica states.
Headquartered in Kingston, Jamaica, the National Commercial Bank
Jamaica Limited -- http://www.jncb.com/-- provides commercial
and retail banking, wealth management services. The company's
services include personal banking, business banking, mortgage
loans, wealth management and insurance services. Founded in
1977, the bank primarily operates in West Indies and the UK.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd. S&P said the outlook is stable.
As reported in the Troubled Company Reporter-Latin America on
May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica-
based National Commercial Bank Jamaica Limited: long-term
foreign and local currency Issuer Default at 'B+'; short-term
foreign and local currency rating at 'B'; individual at 'D'; and
support at 4. The rating outlook on the bank's ratings is
stable, in line with Fitch's view of the sovereign's
creditworthiness.
NATIONAL WATER: Illegal Connections Must Stop by April 28
---------------------------------------------------------
The National Water Commission has given residents in the
communities of Old Braeton and Reed Pen in St. Catherine to
regularize illegal connections to the commission's network by
April 28, 2008, Radio Jamaica reports.
Radio Jamaica relates that the Commission disconnected water
supply to those communities last week after residents refused to
pay their water bills.
The Community owed over J$12 million in unpaid water bills,
Radio Jamaica says, citing the Commission.
According to the Commission, its officers held a meeting with
Member of Parliament Fitz Jackson and a group of residents last
Sunday. The Commission told Radio Jamaica that it has reached
an agreement with clients in Old Braeton and Reed Pen.
The National Water Commission is a statutory organization
charged with the responsibility of providing potable water and
wastewater services for the people of Jamaica.
* * *
The National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses. For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion. The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.
Jamaican citizens have been complaining to the commission about
water disruptions in their communities, resulting to
restrictions of water use.
===========
M E X I C O
===========
AMERICAN AIRLINES: Unit Opens Flight Routes to 15 Mexican Cities
----------------------------------------------------------------
American Airlines Inc.'s regional affiliate, American Eagle
began service between Dallas/Fort Worth International Airport,
and Tampico, Mexico. The addition of this new route increases
American Airlines offerings to 15 cities throughout Mexico.
American Eagle will fly the route daily with its 44-seat Embraer
ERJ-140 jets.
"We are pleased to begin service to the great city of Tampico,"
said American's Senior Vice President for Mexico, Caribbean and
Latin America, Peter Dolara. "This new route supplements our
extensive network throughout Mexico."
With more than 300 flights each week to 15 Mexico cities,
American and American Eagle can take you to Mexico's most
important destinations. Flights originate in five major United
States gateways, so it's easy to connect to non-stop service
through Dallas/Fort Worth, Los Angeles, Chicago, New York and
Miami.
Based in Fort Worth, Texas, American Airlines Inc., a wholly
owned subsidiary of AMR Corp., operates the largest scheduled
passenger airline in the world with service throughout North
America, the Caribbean, Latin America, Europe and Asia. The
airline flies to Belgium, Brazil, Japan, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 26, 2008, Standard & Poor's Ratings Services revised its
outlook on the long-term ratings on AMR Corp. (B/Negative/B-3)
and subsidiary American Airlines Inc. (B/Negative/--) to
negative from positive. S&P also lowered its short-term rating
on AMR to 'B- 3' from 'B-2' and affirmed all other ratings on
AMR and American.
BANCO DEL BAJIO: Uses Surecomp's Trade Finance Software
-------------------------------------------------------
Banco del Bajio has purchased a trade finance software from
Surecomp to grow its trade finance business.
According to Surecomp, Banco del Bajio will use the a//NETT
software to automate and manage its corporate trade finance
processing.
Banco del Bajio is the eighth largest bank in Mexico with an
overall market share of roughly 2% of loans and deposits.
It is one of the largest and fastest growing regional
banks in Mexico. Three groups of national investors own a 49%
stake in the bank, Sabadell and the IFC control 20% and 10%,
respectively, and the balance is widely held. Banco del Bajio
has entered into the mortgage and construction sectors through
the acquisition of two specialized mortgage lenders in 2004 and
2005. These companies and a factoring entity are Banco del
Bajio's sole subsidiaries, while it also has a 50% stake in the
pension fund management company Afore Afirme Bajio, created in
2005. As of September 2007, Bajio had roughly US$3.9 billion in
assets, loans for US$3 billion and equity of US$418 million.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 7, 2007, Fitch Ratings affirmed the 'BB+' long-term local
and foreign currency issuer default and the 'B' short-term
foreign and local currency issuer default ratings of Mexico's
Banco del Bajio. Fitch said that while the international-scale
ratings have a stable outlook, the outlook on the national-scale
long-term rating was revised to positive from stable.
FOAMEX INT'L: Dec. 30 Balance Sheet Upside-Down by US$298 Mil.
--------------------------------------------------------------
Foamex International Inc.'s balance sheet at Dec. 30, 2007,
showed total assets of US$433.7 million and total liabilities of
US$731.8 million, resulting to total shareholders' deficit of
US$298.1 million.
The company reported financial results for the fourth quarter
and fiscal year, which ended on Dec. 30, 2007.
Net loss for the fourth quarter was US$35.6 million compared to
net income of US$1.1 million in the fourth quarter of 2006.
Interest expense for the fourth quarter of 2007 was
US$14.4 million.
Net loss for 2007 was US$46.7 million compared to net income of
US$12.3 million in 2006.
"This year we made significant progress restructuring and
streamlining operations; we took actions to reduce excess
capacity and improve plant efficiencies, while significantly
lowering overheads," Jack Johnson, president and chief executive
officer, said. "We improved cash flow through working capital
reductions and asset sales, allowing us to reduce debt by
approximately US$95.0 million, since emerging from bankruptcy in
February 2007, thus lowering debt levels to US$534.1 million at
year-end."
"Some of our more notable accomplishments include: selling our
70% equity interest in Foamex Asia; consolidating our Eddystone,
PA and Fort Wayne, Indiana manufacturing facilities; selling the
Fairless Hills, Pennsylvania, Dallas, Texas, and Orlando,
Florida carpet cushion facilities; lowering management
compensation costs; and recently, launching new products at
ISPA," Mr. Johnson continued.
"Although we are operating in a sluggish economy, we remain
confident in our strategic plan, which is to continue de-
levering the balance sheet and grow the business by exploiting
our technological advantage in the flexible polyurethane market
and expanding globally," Mr. Johnson added. "The recently
disclosed Rights Offering and Second Lien Offering demonstrate
the commitment of both the management team and significant
equityholders to position the company to achieve its strategic
growth plan."
Liquidity and Capital Resources
Cash and cash equivalents were US$5.2 million at Dec. 30, 2007,
compared to US$6.0 million at Dec. 31, 2006. Working capital at
Dec. 30, 2007, was US$108.2 million and the current ratio was
1.69 to 1 compared to working capital at Dec. 31, 2006 of
US$24.0 million and a current ratio of 1.08 to 1.
Total debt and revolving credit borrowings at Dec. 30, 2007 was
US$534.1 million, a US$109.6 million decrease from Dec. 31,
2006, including prepayments of US$80.0 million on the first lien
term loan.
As of Dec. 30, 2007, there were revolving credit borrowings of
US$7.9 million under the Revolving Credit Facility. Revolving
credit borrowings at Dec. 30, 2007, reflect working capital
requirements.
During 2007, the company consolidated the operations of its
Eddystone, Pennysylvania manufacturing facility and its Fort
Wayne, Indiana manufacturing facility. The company intends to
sell the Eddystone, Pennsylvania facility and has included the
US$5.0 million net book value of the assets as held for sale in
the accompanying consolidated balance sheet as of Dec. 30, 2007.
About Foamex International Inc.
Headquartered in Linwood, Pennsylvania, Foamex International
Inc. (FMXIQ.PK) -- http://www.foamex.com/-- produces cushioning
for bedding, furniture, carpet cushion and automotive markets.
The company also manufactures polymers for the industrial,
aerospace, defense, electronics and computer industries. Foamex
has Asian locations in Malaysia, Thailand and China. The
company's Latin American subsidiary is in Mexico.
The company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693). As of July 3, 2005, the Debtors reported US$620,826,000
in total assets and US$744,757,000 in total debts.
On Feb. 2, 2007, the Court confirmed the Debtors' Second Amended
Joint Plan of Reorganization. The Plan of Reorganization of
Foamex International Inc. became effective and the company
emerged from chapter 11 bankruptcy protection on Feb. 12, 2007.
EMPRESAS ICA: CPH Closes US$910 Mln LT Loan for La Yesca Project
----------------------------------------------------------------
Empresas ICA, S.A.B de C.V. has disclosed that the Constructora
de Proyectos Hidroelectricos, S.A. de C.V. (CPH) consortium, in
which ICA holds a 67% interest, closed the US$910 million long-
term financing for the La Yesca Hydroelectric Project.
The US$910 million syndicated loan, leadered by WestLB New York
Branch, matures in the second quarter of 2012, which is the
expected delivery date for the Project. It will be amortized in
two payments: the first on the date of the Provisional
Acceptance of the first turbogenerating unit by the Federal
Electricity Commission, and the second upon the conclusion of
the Project.
Alonso Quintana, Chief Financial Officer of ICA, noted: “This is
the largest financing ever concluded in Mexico for a project of
this type, and ensures that the resources that are required to
execute it are available, in order to deliver the project on
time and in accordance with specifications.”
The financing is secured by the collection rights of the
contract. The proceeds from the financing will be used to pay
the short term loan of US$80 million which has been used for the
project start up, construction costs, interest payments, and
transaction costs.
The La Yesca Hydroelectric Project was named the “Americas Power
Deal of the Year (2007)” by Project Finance International
magazine. It is located on the Santiago River, on the border of
the states of Jalisco and Nayarit. The contract includes civil,
electromechanical, and related works, procurement, engineering,
fabrication, transportation, set up, testing, and putting into
operation two turbine generating units with total capacity of
750MW. The turbogenerators are being supplied by Power Machines
- Ztllmz, Electrozila Energomachexport. The project was awarded
by the CFE in September 2007, and construction began the same
month.
Empresas ICA -- http://www.ica.com.mx/-- the largest
engineering, construction, and procurement company in Mexico,
was founded in 1947. ICA has completed construction and
engineering projects in 21 countries. ICA's principal business
units include civil construction and industrial construction.
Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 20, 2007, Standard & Poor's Ratings Services affirmed its
'BB-' long-term corporate credit rating on Empresas ICA S.A.B.
de C.V. S&P said the outlook is stable.
ING BANK (MEXICO): Moody's Assigns D+ Bank Fin'l Strength Rating
----------------------------------------------------------------
Moody's Investors Service assigned a bank financial strength
rating of D+ to ING Bank (Mexico), S.A. At the same time,
Moody's assigned long- and short-term global local-currency
deposit ratings of A1/Prime-1, respectively. Moody's also
assigned long- and short-term foreign currency deposit ratings
of Baa1/Prime-2, as well as long- and short-term Mexican
National Scale ratings of Aaa.mx and MX-1, respectively. All
these ratings have stable outlooks.
According to Moody's, ING Bank Mexico's D+ BFSR reflects the
bank's intrinsic financial strength excluding any potential
sources of external support (i.e. parental support).
The BFSR takes into account that -- relative to its direct peer
group -- ING Bank Mexico has been able to build an important
presence locally, with particular emphasis in the developing
Mexican derivatives market -- business that represents a high
portion of the bank's total revenues. Yet, the BFSR is
constrained by ING Bank Mexico's limited scope business as
reflected by its trading and wholesale banking strategy.
The A1 local currency deposit rating assigned to ING Bank Mexico
to a great extent incorporates Moody's assessment of the
probability of very high support that could be received from its
Dutch parent company ING Bank N.V. (rated Aa1/Prime-1, with a
stable outlook). Moody's believes this support would be
forthcoming given the high level of integration in terms of risk
management, as well as the sharing of business strategy and
product expertise between the parent and the Mexican banking
vehicle. Specifically, Moody's notes that an integral part of
the parental support takes the form of risk sharing between ING
Bank Mexico and other entities of the ING network.
These ratings were assigned to ING Bank Mexico, S.A.:
-- Bank Financial Strength Rating: D+
-- Long-term global local-currency deposits: A1
-- Short-term global local-currency deposits: Prime-1
-- Long-term foreign currency deposits: Baa1
-- Short-term foreign currency deposits: Prime-2
-- Mexican National Scale, long-term: Aaa.mx
-- Mexican National Scale, short-term: MX-1
-- Outlook: Stable
ING Bank Mexico S.A. is headquartered in Mexico City, and
reported total assets of MXN53.3 billion as of December 2007.
MERISANT COMPANY: Moody's Withdraws 'B3' Ratings on Planned Loan
----------------------------------------------------------------
Moody's Investors Service withdrew the ratings on Merisant
Company's previously proposed new US$35 million bank revolving
credit agreement and US$210 million bank term loan, following
the company's announcement that it had withdrawn the transaction
due to an inability to obtain favorable financing terms in an
adverse market.
The withdrawn transaction was to have refinanced the company's
existing bank credit facilities. Moody's affirmed Merisant's
other ratings, including its corporate family rating of Caa3 and
its probability of default rating of Caa3. The rating outlook
remains stable.
Ratings withdrawn:
Merisant Company
-- Previously proposed new US$35 million senior secured
revolving credit agreement at B3 (LGD2,16%)
-- Previously proposed new US$210 million senior secured term
loans at B3 (LGD2,16%)
Ratings affirmed:
Merisant Worldwide, Inc.
-- Corporate family rating at Caa3
-- Probability of default rating at Caa3
-- US$137 million senior subordinated discount notes maturing
May 2014 at Ca (LGD6,91%)
Merisant Company
-- US$35 million first lien senior secured revolving credit
expiring in January 2009 at B3 (LGD2,16%)
-- US$190 million first lien senior secured Term Loan B
maturing in January 2010 at B3 (LGD2, 16%)
-- US$15.7 million (original EU 50 million) 1st lien senior
secured Term Loan A maturing in January 2009 at B3
(LGD2, 16%)
-- US$225 million senior subordinated notes maturing in July
2013 at Ca (LGD4, 63%)
The affirmation of Merisant's existing ratings is based on the
greater stability in the company's operating performance.
Reported operating profit margin in each of the first three
quarters of fiscal 2007 was stronger than in the same period in
the prior year, even when excluding US$30 million in other
income in the second quarter of fiscal 2007. Profitability has
benefited from supply chain programs to streamline
manufacturing. Cost structure has also been helped by the
current excess of global aspartame supply.
Further cost savings and the leveraging of manufacturing
capacity through the production of private label goods represent
opportunities to enhance profitability, while greater
international expansion could boost sales over the intermediate
term. Merisant is anticipated to be able to fund working
capital, capital expenditures, and modest term debt repayments
with cash on hand (US$51 million at Dec. 31, 2007), its US$35
million revolving credit agreement, and modest operating cash
flow.
Merisant's Caa3 corporate family rating reflects the company's
very heavy debt burden relative to its earnings and cash flow
and the likelihood, in Moody's view, that the company might need
to restructure its debt in order to be able to meet fierce
competition and to invest in growth opportunities.
The rating outlook is stable, given that the current corporate
family rating adequately captures debt recovery expectations for
the enterprise.
Headquartered in Chicago, Merisant Worldwide Inc. --
http://www.merisant.com/-- is a leading global producer and
marketing of low-calorie tabletop sweeteners. Its premium-
priced brands are Equal and Canderel, which are sweetened with
aspartame. Merisant has an estimated 21% dollar share of the
global retail market for low-calorie tabletop sweeteners, and
sales of approximately US$290 million for the fiscal year ended
Dec. 31, 2007. The company has operations in Mexico.
MOVIE GALLERY: Voting Results Show Overwhelming Support for Plan
----------------------------------------------------------------
Movie Gallery, Inc. and its debtor-affiliates have disclosed
that the voting results for the Debtors' Second Amended Joint
Plan of Reorganization have been filed with U.S. Bankruptcy
Court for the Eastern District of Virginia.
Voting by every class of creditors entitled to vote was
overwhelmingly in support of the Plan. The Plan was accepted by
more than 90% of the approximately 1,500 creditors who voted on
the Plan.
A confirmation hearing on the Plan is scheduled today, April 9,
2008. The Debtors believe that the Plan satisfies the
requirements of the U.S. Bankruptcy Code and is hopeful that it
will be confirmed by the Bankruptcy Court. The Debtors remain
on schedule to emerge early in the second quarter of 2008.
"Through our ongoing restructuring we have positioned Movie
Gallery and Hollywood Video as stronger businesses, better
equipped for long-term success," said Joe Malugen, Chairman,
President and Chief Executive Officer of Movie Gallery. "We are
confident that our Plan represents a fair and equitable outcome
for all of the creditors involved. We are pleased to have
the strong support of our creditors and appreciate the continued
loyalty of our customers, suppliers and employees."
Details of the voting results including votes on a class-by-
class basis are available at http://www.kccllc.net/moviegallery
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.
RESIDENTIAL CAPITAL: Moody's Rtgs. Unmoved by Capital Injection
---------------------------------------------------------------
Residential Capital LLC's announcement that it has received a
US$1.2 billion capital injection from its parent GMAC LLC does
not impact the ratings of either entity. The US$1.2 billion
capital injection is equal to the face amount of ResCap debt
purchased in the open market by GMAC with an estimated current
market value of US$607 million and exchanged for US$607 million
newly created ResCap preferred units. GMAC also disclosed that
it has purchased an additional US$340 million face value of
ResCap debt currently valued at US$266 million that they may
contribute to ResCap.
The senior unsecured rating of GMAC LLC is B1 and ResCap B2.
The rating outook for both firms is negative. The downgrade of
GMAC's rating on Feb. 5, 2008 to B1 with a negative outlook
contemplated that the company would likely continue to provide
capital to support ResCap in the near term. The cash and
capital cost to GMAC of providing the US$1.2 billion capital
injection to ResCap, and the US$340 million of additional debt
purchased but not contributed to ResCap, is within Moody's
expectation of the amount of support GMAC would provide to
ResCap.
In regards to ResCap, the downgrade to B2 on Feb. 5, 2008
incorporated the possibility that the company would receive
sizable support from its parent. Moody's still believes that
ResCap's parents may have a limited tolerance for supporting
ResCap if ResCap's performance and condition fail to meet
management's expectations for improvement during the first half
of 2008. Additionally, Moody's notes that the form of the
capital injection does not improve ResCap's short term liquidity
profile. As stated above, the ResCap rating outlook remains
negative.
Residential Capital LLC is a subsidiary or GMAC LLC and is
headquartered in Minneapolis, Minnesota. Rescap reported equity
of US$6.0 billion at Dec. 31, 2007. ReCap has operations in
Mexico.
SONIC CORP: Gabriel Tsampalieros Named to Board of Directors
------------------------------------------------------------
Sonic Corp. announced Thursday that Gabriel Tsampalieros has
been named to its Board of Directors. Tsampalieros is the
owner, chairman and chief executive officer of The Second Cup
Coffee Company Inc., the largest franchisor of specialty coffee
cafes in Canada. Founded in 1975, Second Cup has more than 360
locations in Canada and more than 30 international locations.
"Gabe brings relevant franchise, multi-unit retail and
management experience to our Board. His business and legal
background will add significant value to what is already a
strong Board of Directors," said Clifford Hudson, chairman and
chief executive officer of Sonic Corp.
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
3,400 drive-ins coast to coast and in Mexico.
* * *
As reported in the Troubled Company Reporter on April 4, 2008,
Sonic Corp.'s consolidated balance sheet at Feb. 29, 2008,
showed total assets of US$776.2 million and total liabilities of
US$886.0 million, resulting in a US$109.8 million total
stockholders' deficit.
SR TELECOM: Reports US$132.4 Mil. Net Loss in Year Ended Dec. 31
----------------------------------------------------------------
SR Telecom Inc. released its year-end audited financial results
and its fourth quarter results for the period ended Dec. 31,
2007.
As reported in the Troubled Company Reporter on April 2, 2008,
the company entered into a definitive agreement with Lagasse
Communications & Industries Inc., or Groupe Lagasse, to sell the
majority of its property and assets related to the WiMAX
business and symmetryTM line of products. SR Telecom received
cash proceeds of US$6.05 million, before transaction fees. The
transaction closed April 4, 2008. A report on the closed sale
transaction is in today's Troubled Company Reporter.s
The audited consolidated financial statements for the year ended
December 31, 2007 have been prepared using a different basis
than the standard going concern assumption.
The company's assets were valued at their net realizable value
for a total of US$37.0 million. As a result, a significant
asset impairment of US$40.6 million was recognized in the fourth
quarter financial statements.
Since the company filed for creditor protection under Companies'
Creditors Arrangement Act (CCAA), the liabilities were presented
in the financial statements at their "allowed claim amount",
triggering an increase in liabilities of US$17.7 million. Total
liabilities amounted to US$150.3 million. The allowed claim
amount represents the estimated maximum amount to be potentially
claimed by creditors.
No provision has been recorded in 2007 for the losses expected
to occur from Jan. 1, 2008, to the liquidation date as the
audited financial statements for the year ended Dec. 31, 2007,
have not been prepared on a liquidation basis.
Consolidated Financial Results
SR Telecom's revenue for the year was US$75.7 million compared
to US$68.7 million in 2006. Despite this increase, the revenue
generated in 2007 was below management's expectations for its
symmetry product line. This revenue shortfall was mainly due to
the impact of liquidity restrictions on sales efforts, delays in
manufacturing and product and technology development and to
additional delays incurred in the ongoing implementation of
major contracts in Mexico and Argentina.
Operating loss from continuing operations was US$115.5 million,
up from US$98.0 million in 2006. Net loss and comprehensive
loss for 2007 was US$132.4 million, compared to US$115.6 million
in the prior year.
Results in 2007 were significantly impacted by asset impairment
and restructuring charges of US$60.6 million resulting from CCAA
proceedings, which includes an asset impairment charge of
US$40.6 million to bring assets to their net realizable value
based on the proceeds from the asset sale to Groupe Lagasse,
with the remainder related to an increase in long-term
liabilities to their allowed claim amount. The impact of asset
impairment and restructuring charges was partially offset by
lower selling, general and administrative expenses and reduced
research and development expenses compared to 2006.
Total assets amounted to US$37.0 million as at Dec. 31, 2007,
compared to US$150.6 million in 2006. The decrease over the
prior year by US$113.6 million was a result of the asset
impairment charge and the discontinued operations of CTR, the
company's Chilean subsidiary operating in the Telecommunications
Service Provider Segment, sold at the beginning of 2007.
Liabilities increased by US$10.6 million to US$150.3 million as
at Dec. 31, 2007, due to the additional financing obtained in
July 2007 and the adjustment of liabilities to their allowed
claim amount. The increase was partially offset by CTR
discontinued operations and elimination of related liabilities.
Consolidated cash and cash equivalents decreased from
US$18.5 million as at Dec. 31, 2006, to US$17.0 million as at
Dec. 31, 2007.
About SR Telecom
Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) --
http://www.srtelecom.com/-- delivers broadband wireless access
(BWA) solutions that enable service providers to deploy voice,
Internet and next-generation services in urban, suburban and
remote areas. The company has offices in Mexico, France and
Thailand.
SR Telecom Inc.'s consolidated balance sheet at June 30, 2007,
showed CDN$83.9 million in total assets and CDN$97.9 million
in total liabilities, resulting in a CDN$14.0 million total
stockholders' deficit.
SR Telecom is currently operating under the protection of the
Companies' Creditors Arrangement Act (CCAA). The company
filed for creditor protection under the CCAA on Nov. 19, 2007.
On Feb. 29, 2008, it obtained a court order to extend the period
of the Court-ordered stay of proceedings under the CCAA to
May 2, 2008.
SR TELECOM: Closes US$6 Million Sale of Asset to Group Legasse
--------------------------------------------------------------
SR Telecom Inc. closed the sale of the majority of its assets to
Sherbrooke (Quebec) based Groupe Lagasse. The transaction,
which received court approval on March 31, 2008, will provide
continuity for SR Telecom's international customer base and
protect high technology jobs in Montreal.
As reported in the Troubled Company Reporter on April 2, 2008,
SR Telecom said that the Quebec Superior Court authorized the
sale of the majority of the company's assets to Groupe Lagasse.
As announced on March 24, 2008, Groupe Lagasse will purchase SR
Telecom's brand, trademarks, intellectual property, patents,
inventories and equipment relating to its symmetryMX product
line.
SR Telecom shareholders will not receive any value out of the
proceeds of the sale.
Since Nov. 19, 2007, SR Telecom has been operating under the
protection of the Companies' Creditors Arrangement Act (CCAA).
On February 29, 2008, it obtained a court order to extend the
period of the Court-ordered stay of proceedings under the CCAA
to May 2, 2008.
The new business will be operating under the name SR Telecom &
Co. S.E.C., a Groupe Lagasse wholly owned subsidiary.
About Groupe Lagasse
Groupe Lagasse -- http://www.groupelagasse.com/-- is an
international company with manufacturing and products business
units that focus on providing leading edge, rugged, high
reliability, and high availability solutions for the private and
public sectors. Its activities include electronic manufacturing
expertise for secure radio and telecom products that address the
entire product life cycle. The Group also develops advanced
carrier grade VoIP access devices, gateways, secure SIP-based
software solutions and secure, ruggedized, active RFID
solutions. These are complemented by outsourced contact center
solutions and automated interactive voice services that can
deliver a single message to as many as 10,000 recipients per
hour, via phone, mobile phone, SMS and e-mail. Groupe Lagasse
is a privately held holding whose sales, in 2007, exceeded $200
M Cnd; the group has operations in Europe and North America and
employs over 1,000 people worldwide.
About SR Telecom
Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) --
http://www.srtelecom.com/-- delivers broadband wireless access
(BWA) solutions that enable service providers to deploy voice,
Internet and next-generation services in urban, suburban and
remote areas. The company has offices in Mexico, France and
Thailand.
SR Telecom Inc.'s consolidated balance sheet at June 30, 2007,
showed CDN$83.9 million in total assets and CDN$97.9 million
in total liabilities, resulting in a CDN$14.0 million total
stockholders' deficit.
TELTRONICS INC: Dec. 31 Balance Sheet Upside-Down by US$4.5 Mil.
----------------------------------------------------------------
At Dec. 31, 2007, Teltronics Inc.'s consolidated balance sheet
showed US$18.0 million in total assets and US$22.5 million in
total liabilities, resulting in a US$4.5 million total
stockholders' deficit.
The company reported a net loss of US$2.1 million on net sales
of US$40.6 million for the year ended Dec. 31, 2007, compared
with net income of US$1.6 million on net sales of US$46.9
million for the year ended Dec. 31, 2006.
The overall decrease in net sales for the year ended Dec. 31,
2007, was primarily the result of reduced sales in the 20-20
market based on competitive pressure from the VoIP switch
providers, deceases in the Intelligent Systems Management market
which was as a result of the change in focus from the telephony
market to the server based systems, and decreases in the
Contract Services market.
For the year ended Dec. 31, 2007, interest expense increased
US$499,000 to US$1.9 million. The increase in interest costs
was primarily the result of an additional charge of
approximately
US$489,000 from the debt restructuring in 2007.
Liquidity
As of Dec. 31, 2007, the company had cash and cash equivalents
of US$1,123,000 as compared to US$794,000 as of Dec. 31, 2006.
Working capital as of Dec. 31, 2007, was US$116,000 as compared
to US$798,000 as of Dec. 31, 2006.
The company's obligations as of Dec. 31, 2007, consisted
primarily of the following items:
a) a revolving line of credit facility with an outstanding
balance of US$4,029,000,
b) a senior term loan of US$5,258,000,
c) a note payable to Tri-Link of US$208,000,
d) a note payable to a related party of US$348,000, and
e) dividends on its Series B and C Preferred stock, of which
US$252,000 is due and payable within the next twelve
months.
Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2007, are available for
free at http://researcharchives.com/t/s?2a02
About Teltronics Inc.
Headquartered in Sarasota, Florida, Teltronics Inc. (OTC BB:
TELT) -- http://www.teltronics.com/-- designs, develops,
installs, manufactures and markets electronic hardware and
application software products, and engages in electronic
manufacturing services primarily in the telecommunication
industry.
The company designs, installs, develops, manufactures and
markets electronic hardware and application software products
and also engages in electronic manufacturing services in the
telecommunication industry. The company's products are
classified into intelligent systems management, digital
switching systems, voice over Internet protocol, customer
contact management systems and emergency response systems.
Overall operations are classified into three reportable
segments: Teltronics, Inc., Teltronics Limited (UK) and Mexico.
Its Mexico office is located at Naucalpan de Juarez.
* MEXICO: Fitch Reviews Toll Road Ratings Over Flat Business Tax
----------------------------------------------------------------
Fitch Mexico S.A. de C.V. has initiated a review of all 13
private toll road ratings in Mexico following the March 31,
2008 deadline for businesses to select their approach to paying
the new minimum corporate tax called the Flat Rate Business Tax,
Impuesto Empresarial a Tasa Unica (IETU) that was enacted by the
Mexican federal government in September 2007 and went into
effect on Jan. 1, 2008. The affected bonds and the related toll
roads are:
* ARMEC03U - Armeria-Manzanillo & Ecatepec-Piramides
* CONCECB06U - Atlixco-Jantetelco
* CPACCB04U - Penon-Texcoco
* FREZAC05 - Libramiento Fresnillo, Libramiento Calera-
Enrique Estrada y Libramiento Noreste de
Zacatecas
* MAYAB02AU - Kantunil-Cancun
* MAYAB02BU - Kantunil-Cancun
* OCALFA05U - Toluca-Atlacomulco
* PADEIM06U - Mexico-Toluca
* PLANRIO05U - Libramiento Plan del Rio
* PLANRIO05-2U - Libramiento Plan del Rio
* TENANCB05U - Tenango-Ixtapan de la Sal
* VCZ03U - Cardel-Veracruz
* ZONALCB06U - Altar-Santa Ana
The IETU tax legislation, which replaces the existing asset tax,
has set the minimum tax rate at 16.5% in 2008, 17% in 2009 and
17.5% from 2010 onwards. It gives businesses the option to
consolidate their taxes at the parent level or pay the taxes,
which are levied on gross revenues of the asset, at the project
level. Now that the deadline of March 31, 2008, to make that
one-time election to the federal government has passed, Fitch
will assess the impact of that election on the credit quality of
the bonds over the next few weeks and either affirm the bonds or
take the appropriate negative rating action.
Private toll road debt structures developed over the past decade
were not designed to absorb the IETU tax. To the extent that
sponsors opted to consolidate taxes at the parent level, the net
effect of the new tax on the credit quality of the project's
debt is likely to be minimal to none. To the extent that the
sponsors opted to pay the tax at the project level and alter the
structure to incorporate the tax, the effect of this action
would be to place a tax obligation ahead of debt service and
thus reduce available financial flexibility to pay debt.
It is important to note that the impact of this tax at the
project level may differ from project to project depending on
their tax profile. Projects with a significantly lower overall
tax rate than the applicable IETU tax rates will likely be more
exposed to adverse rating action were the sponsor to choose to
pay the tax at the project level. The requirement to make a
one-time election that is not subject to change provides some
certainty that subsequent changes in payment strategy are not an
ongoing risk to these debt structures.
On April 4, 2008, Fitch placed the Libramiento Plan del Rio toll
road (PLANRIO5U and PLANRIO5-2U) bonds on Rating Watch Negative.
This action reflected the potential impact on these issuances
from the project sponsors' decision to alter the current debt
structure in the near future to incorporate the payment of this
tax in the waterfall. The PLANRIO5U senior bonds are rated
'AA(mex)' and the PLANRIO5-2U subordinate bonds are rated
'A(mex)'.
===========
P A N A M A
===========
CHIQUITA BRANDS: Inks New $350 Million Credit Facility
------------------------------------------------------
Chiquita Brands International Inc. disclosed Monday that it has
entered into a new US$350 million senior secured credit
agreement with various lenders, including Cooperatieve Centrale
Raiffeisen - Boerenleenbank B.A., "Rabobank Nederland," New York
Branch ("Rabobank") acting as administrative agent and lead
arranger and with Wells Fargo Bank, National Association as the
syndication agent. Entry into this agreement completes the
company's previously announced refinancing plan, which has
lowered the company's interest expense, extended debt maturities
and added significant covenant flexibility that will allow
management to focus further on successfully executing its
profitable growth strategy.
"We are very pleased with the outcome of the refinancing we have
achieved during a period of turbulent financial markets, and we
appreciate the continuing support provided by our bank
partners," said Fernando Aguirre, chairman and chief executive
officer. "I am confident that our strengthened balance sheet
will enhance our ability to achieve sustainable, profitable
growth."
The new six-year secured credit facility consists of a
US$150 million revolving credit facility and a US$200 million
term loan, and replaces the company's prior US$200 million
revolving credit facility as well as the US$132 million Term
Loan C which remained outstanding following the company's
February 2008 offering of 4.25% Convertible Senior Notes due
2016. The revolving credit facility may be increased in the
future by up to US$50 million at Chiquita's request, under
certain circumstances.
The agreement governing the new credit facilities contains two
material financial maintenance covenants, an operating company
leverage ratio and a fixed charge coverage ratio, both of which
are set at levels that provide significant added flexibility.
The holding company leverage covenant that was part of the prior
senior secured facility is not included in the new credit
facility.
About Chiquita Brands
Headquartered in Cincinnati, Ohio, Chiquita Brands International
Inc. (NYSE: CQB) -- http://www.chiquita.com/-- is a marketer
and distributor of high-quality fresh and value-added food
products. The company markets its products under the Chiquita(R)
and Fresh Express(R) premium brands and other related
trademarks. Chiquita employs approximately 24,000 people
operating in more than 70 countries worldwide.
Chiquita, with revenues of approximately US$4.7 billion for the
fiscal year ended Dec. 31, 2007, employs approximately 25,000
people operating in more than 70 countries worldwide, including
Belgium, Columbia, Germany, Panama, Philippines, among others.
* * *
As reported in the Troubled Company Reporter on March 5, 2008,
Moody's Investors Service affirmed Chiquita Brands International
Inc.'s US$250 million 7.5% senior unsecured notes due 2014 at
Caa2 (LGD5), LGD % to 82% from 89%; and US$225 million 8.875%
senior unsecured notes due 2015 at Caa2 (LGD5), LGD % to 82%
from 89%.
CHIQUITA BRANDS: Morten Arntzewn Resigns as Board Director
----------------------------------------------------------
On March 28, 2008, Morten Arntzen notified the Chiquita Brand
International Inc.'s Board of Directors of his decision not to
stand for re-election to the Board of Directors at the company's
annual meeting of stockholders in 2008 due to other business
commitments. Mr. Arntzen will continue to serve as a director
of the company until the 2008 annual meeting of stockholders.
Mr. Arntzen's retirement from the Board of Directors does not
involve any disagreement with the Company.
On April 3, 2008, the Board of Directors of the company elected
a new director, William H. Camp. Mr. Camp, age 59, was employed
by Archer Daniels Midland Company, an agricultural processing
company and manufacturer of value-added food and feed
ingredients from 1986 until he retired in December 2007. It has
not yet been determined on which standing committees of the
Board of Directors Mr. Camp will serve. Mr. Camp, however, was
appointed to serve on an ad hoc committee recently formed to
consider certain recent litigation involving the company.
About Chiquita Brands
Headquartered in Cincinnati, Ohio, Chiquita Brands International
Inc. (NYSE: CQB) -- http://www.chiquita.com/-- is a marketer
and distributor of high-quality fresh and value-added food
products. The company markets its products under the
Chiquita(R) and Fresh Express(R) premium brands and other
related trademarks. Chiquita employs approximately 24,000
people operating in more than 70 countries worldwide.
Chiquita, with revenues of approximately US$4.7 billion for the
fiscal year ended Dec. 31, 2007, employs approximately 25,000
people operating in more than 70 countries worldwide, including
Belgium, Columbia, Germany, Panama, Philippines, among others.
* * *
As reported in the Troubled Company Reporter on March 5, 2008,
Moody's Investors Service affirmed Chiquita Brands International
Inc.'s US$250 million 7.5% senior unsecured notes due 2014 at
Caa2 (LGD5), LGD % to 82% from 89%; and US$225 million 8.875%
senior unsecured notes due 2015 at Caa2 (LGD5), LGD % to 82%
from 89%.
=======
P E R U
=======
GRAN TIERRA: To Commence Trading on the American Stock Exchange
---------------------------------------------------------------
Gran Tierra Energy Inc.'s common stock listing application has
been approved by the American Stock Exchange. This approval is
contingent upon the company being in compliance with all
applicable listing standards on the date it begins trading on
the Exchange, and may be rescinded if the company is not in
compliance with such standards. Gran Tierra Energy's common
stock is scheduled to commence trading on the AMEX under the
trading symbol "GTE" effective with the opening of the market on
April 8, 2008.
The company's shares will continue to trade on the Toronto Stock
Exchange under the symbol "GTE". Trading on the OTC Bulletin
Board will cease upon initiation of trading on the AMEX.
"This is another substantial step forward for Gran Tierra Energy
and our shareholders," stated Gran Tierra Energy Inc. Chief
Executive Officer, Dana Coffield. "Listing on the AMEX will
increase the visibility of the company to the financial
community and allow us to continue to diversify our shareholder
base. We fully expect our growing operational success to be
better reflected and communicated with our listing on the
American Stock Exchange."
Headquartered in Calgary, Canada, Gran Tierra Energy Inc.
(OTCBB: GTRE.OB) -- http://www.grantierra.com/-- is an
international oil and gas exploration and production company
with substantial interests and prospective properties in
Argentina, Colombia and Peru.
* * *
In a 10-Q filing dated Nov. 8, 2007 with the U.S. Securities and
Exchange Commission, Gran Tierra Energy Inc.'s management
disclosed that the company's ability to continue as a going
concern is dependent upon obtaining the necessary financing to
acquire, explore and develop oil and natural gas interests and
generate profitable operations from its oil and natural gas
interests in the future.
The company incurred a net loss of US$10,630,571 for the nine
months ended Sept. 30, 2007, and had an accumulated deficit of
US$18,673,955 as at Sept. 30, 2007. The company expects to
incur substantial expenditures to further its capital investment
programs and the company's existing cash balance and cash flow
from operating activities may not be sufficient to satisfy its
current obligations and meet its capital investment commitments.
To provide financing for Gran Tierra's ongoing operations, the
company said it secured a US$50 million credit facility with
Standard Bank Plc on Feb. 28, 2007, which will provide
additional financing for the company's future operations. As at
Sept. 30, 2007, the company said it has not drawn-down on this
facility.
The company's intention is to build a portfolio of oil and
natural gas production, development, and exploration
opportunities using the capital raised during 2006, cash
provided by future operating activities and by using the
available credit facility. However, the company said it may
need to secure additional sources of capital to fund its future
operating activities.
====================
P U E R T O R I C O
====================
MAAX HOLDINGS: Moody's Withdraws Junk Ratings for Biz Reasons
-------------------------------------------------------------
Moody's Investors Service has withdrawn all ratings on MAAX
Holdings, Inc. and MAAX Corporation for business reasons.
These ratings were withdrawn on MAAX Holdings, Inc.:
-- Corporate Family Rating, Ca
-- Probability of Default Rating, Ca
-- Speculative Grade Liquidity Rating, SGL-4
-- US$152 million 11.57% senior unsecured discount notes due
2012, C (LGD6, 93%)
This rating was withdrawn on MAAX Corporation:
-- US$150 million 9.75% senior subordinated notes due 2012, Ca
(LGD5, 73%)
MAAX Holdings, Inc., headquartered in Quebec, is a manufacturer
of bathroom products and spas for the residential market. For
the twelve months ended Nov. 30, 2007, the company reported
revenues of US$411 million and a net loss of US$180 million.
The company has operations in Jamaica and Puerto Rico.
SIMMONS COMPANY: S&P Changes Outlook to Negative; Keeps 'B' Rtg.
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
Simmons Co. to negative from stable. All ratings on the
company, including the 'B' corporate credit rating, were
affirmed. On a consolidated basis, Simmons had total debt
outstanding of about US$1.2 billion at Dec. 31, 2007.
"The outlook revision reflects our expectation that the cushion
on the bedding company's financial covenants could tighten over
the next few quarters, as a result of the sluggish housing
market and reduced consumer spending," said Standard & Poor's
credit analyst Rick Joy.
While the company has shown strong sales growth over the second
half of 2007, several companies in the bedding industry have
experienced substantial softening of trends in recent months,
which S&P believes reflects a broader industry slowdown. S&P
believes the company may find it difficult to improve credit
measures over the next year amid continued softness in the U.S.
housing market, a weak retail environment, and rising raw
material costs. In addition, S&P is concerned about a potential
constriction of the company's cushion on its financial
covenants, given a step-down in the required debt leverage
covenant level beginning this quarter.
The speculative-grade ratings on Simmons reflect its narrow
business focus, aggressive financial policy, and highly
leveraged financial profile. Somewhat mitigating these factors
are the company's well-recognized brands, solid market position,
and the mattress industry's relatively stable demand and
barriers to entry.
Atlanta, Georgia-based Simmons manufactures and distributes
bedding products and mattresses in the U.S. The company sells a
broad range of mattresses and foundations under well-recognized
brands, including its flagship Beautyrest brand. The estimated
US$6.9 billion U.S. bedding industry is highly competitive, with
three companies dominating a significant portion of the market.
Simmons is the No. 2 participant, with a share of about 16%,
behind market leader Sealy Corp., with a 21% share, and ahead of
AOT Bedding Holdings Corp., with a share of more than 13%,
according to third-party sources. While the industry has
historically demonstrated stability in various economic
environments, near-term growth prospects have weakened along
with the economy and housing market in the U.S. However, high
transportation costs and the short lead times required by
retailers provide some protection against the threat of imported
products.
S&P expects the intermediate-term operating environment to be
challenging. If Simmons' cushion on its financial covenants
narrows significantly, S&P could lower the ratings. Although
unlikely over the near term, S&P could revise the outlook to
stable if Simmons is able to strengthen credit measures and
improve its operations.
Headquartered in Atlanta, Georgia, Simmons Company --
http://www.simmons.com/-- is a mattress manufacturer and
marketer of a range of products through its indirect subsidiary
Simmons Bedding Company. Products includes Beautyrest(R),
Beautyrest Black(TM), ComforPedic by Simmons(TM), Natural
Care(TM), BackCare(R), Beautyrest Beginnings(TM) and Deep
Sleep(R). Simmons Bedding Company operates 21 conventional
bedding manufacturing facilities and two juvenile bedding
manufacturing facilities across the United States, Canada and
Puerto Rico. Simmons also serves as a key supplier of bedding
to hotel groups and resort properties.
=================
V E N E Z U E L A
=================
CEMEX SAB: Open to Talks on Venezuelan Takeover
-----------------------------------------------
In response to the announcement made by Hugo Chavez, President
of Venezuela, CEMEX S.A.B. de C.V. said that:
1. Venezuelan Ministers Rafael Ramirez, Minister of Energy
and Oil; Rodolfo Sanz, Minister of Basic Industries and
Mining; William Contreras, Minister of Light Industries
and Commerce and Edith Gomez, Minister of Habitat and
Housing met with representatives of the cement companies
in Venezuela.
2. Rafael Ramirez, Minister of Energy and Oil, informed the
representatives of the cement industry about the decision
of the Government of Venezuela to control the cement
industry through a scheme in which the government would
have at least a 60% stake with operative and
administrative control, explaining that other options may
be considered during a negotiation period.
3. It is the government’s intention to have negotiations with
each of the cement companies. Working teams will be
formed by each company to initiate conversations with the
government.
4. CEMEX expressed its willingness to engage in a dialogue
with the authorities to find a mutually satisfactory
solution.
5. During the negotiation period, CEMEX will continue to
operate normally and will look after the interests of its
employees. CEMEX is confident that it has the support of
authorities to guarantee the safety of its personnel and
the integrity of its facilities.
6. CEMEX has always been in compliance with local law and
regulations in Venezuela and has been committed to its
workers and the continued development of the country
through activities that benefit Venezuelan communities.
Headquartered in Mexico, Cemex SA -- http://www.CEMEX.com/-- is
a growing global building solutions company that provides high
quality products and reliable service to customers and
communities in more than 50 countries throughout the world,
including Argentina, Colombia and Venezuela. Commemorating its
100th anniversary in 2006, CEMEX has a rich history of improving
the well-being of those it serves through its efforts to pursue
innovative industry solutions and efficiency advancements and to
promote a sustainable future.
* * *
On May 30, 2005, Moody's Investors Service revised the
ratings outlook on Cemex S.A. de C.V.'s Ba1 ratings to positive
from stable. Ratings affected include the company's Ba1 ratings
on approximately US$110 million in senior unsecured Euro notes
and its senior implied rating.
CA LA ELECTRICIDAD: Settles Tender Offer & Consent Solicitation
---------------------------------------------------------------
In connection with the previously announced offer to purchase
and consent solicitation by C.A. La Electricidad de Caracas'
wholly-owned subsidiary, Electricidad de Caracas Finance B.V.
C.A. La Electricidad de Caracas said that the tender offer
consideration to be paid for the Electricidad de Caracas Finance
BV's 10.25% Senior Guaranteed Notes Due 2014 that are validly
tendered and accepted for purchase pursuant to the terms and
conditions set forth in the Offer to Purchase and Consent
Solicitation Statement dated March 7, 2008 .
Pursuant to the Offer to Purchase, the Tender Offer
Consideration to be paid for notes validly tendered and accepted
for payment was determined using the yield to maturity of the 3-
3/8% United States Treasury Note due Oct. 15, 2009 (Reference
Security), plus a fixed spread of 50 basis points. The yield on
the Reference Security, as calculated by ABN AMRO Bank N.V., as
of 2:00 p.m., New York City time, on Friday, April 4, 2008, was
1.807%. Accordingly, the tender offer yield and Tender Offer
Consideration per US$1,000 principal amount of notes are 2.307%
and US$1,167, respectively. Pursuant to the Offer to Purchase,
the total consideration to be paid for notes validly tendered on
or prior to 5:00 p.m. on March 24, 2008, and accepted for
payment, will be US$1,187 per US$1,000 principal amount of
notes.
The settlement for the tender offer and consent solicitation is
expected to occur on April 10, 2008, unless the Expiration Date
is extended. April 10, 2008 was assumed as the settlement date
for purposes of calculating the Total Consideration.
As of 5:00 p.m. on April 4, 2008, the Electricidad de Caracas
Finance BV had received tenders with respect to approximately
US$245.5 million aggregate principal amount of the notes, or
approximately 94.4% of the outstanding aggregate principal
amount of the notes. As previously announced, the company has
received consents in excess of the number needed to approve the
adoption of the proposed amendments to the indenture under which
the notes were issued.
The tender offer and consent solicitation will expire at
midnight, New York City time, on April 8, 2008, unless extended
or earlier terminated by the Electricidad de Caracas Finance BV
at its sole discretion. Holders who have not yet tendered their
notes may tender until April 8, 2008. Such holders will not be
eligible to receive the early consent payment and accordingly
will only be eligible to receive an amount equal to the Tender
Offer Consideration.
Electricidad de Caracas Finance B.V.'s obligation to accept for
purchase and to pay for each of the notes validly tendered in
the tender offer is subject to, and conditioned upon, the
satisfaction or waiver of:
(i) the receipt of the requisite consents and the execution
of amendments to the indenture and each of the other
related transaction documents implementing the proposed
amendments;
(ii) the issuance and receipt of funds from a new issuance of
debt securities in transactions exempt from registration
under the United States Securities Act of 1933, as
amended, or receipt of funds from other financing
sources, in an amount sufficient to fund the purchase of
any and all validly tendered and not withdrawn notes
accepted for purchase in accordance with the terms of
the Offer to Purchase and all related fees and expenses;
and
(iii) certain other customary conditions set forth in the
Offer to Purchase.
Electricidad de Caracas Finance B.V. reserves the right to
extend, amend or terminate the tender offer and consent
solicitation at any time.
The company has retained ABN AMRO Bank N.V. to serve as the
Dealer Manager for the offer and the consent solicitation.
Questions concerning the terms of the offer may be directed to:
ABN AMRO Bank N.V.
Tel. Number: 1-212-409-7530.
Copies of the Offer to Purchase may be obtained by calling the
information agent:
D.F. King & Co., Inc.,
Tel. Number: 1-800-829-6551 (toll-free) or
1-212-269-5550 (banks and brokerage firms).
Headquartered in Caracas, Venezuela, CA La Electricidad De
Caracas is a subsidiary of AES Corporation and is engaged
in providing electricity services. The company operates in
Caracas, Guarenas, Guatire in Miranda State and San Felipe in
Yaracuy State. As of May 11, 2007, CA La Electricidad de
Caracas is a subsidiary of Petroleos de Venezuela, S.A.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 2, 2007, Standard & Poor's Ratings Services raised its
long-term corporate credit rating on C.A. La Electricidad de
Caracas to 'BB-' from 'B'. The ratings were removed from
CreditWatch with developing implications, where they were placed
originally on Feb. 13, 2007. S&P said the outlook is stable.
HARVEST NATURAL: Board Member John Clarke Says No to Re-Election
----------------------------------------------------------------
Harvest Natural Resources, Inc. board member John U. Clarke has
decided that he will not stand for re-election at Harvest's
annual stockholder meeting on May 15, 2008, due to other time
commitments. Mr. Clarke has been a member of the Harvest board
since his appointment in October 2000. Mr. Clarke will continue
to serve on the Harvest board until the 2008 annual stockholder
meeting, which is the end of his current term.
Harvest Chairperson of the Board, Stephen D. Chesebro', said,
"John has been a valuable and respected member of our board and
his leadership has helped guide Harvest throughout the years as
it faced challenges and opportunities. With John's assistance,
Harvest is now positioned to build a diverse, growth-focused
global portfolio."
Harvest President and Chief Executive Officer, James A.
Edmiston, said, "It has been a pleasure working with John at
Harvest and we wish him continued success in his many
endeavors."
Mr. Clarke currently serves as Chairman of the Board and Chief
Executive Officer of NATCO Group, Inc., a publicly-traded oil
field services and equipment company.
Harvest Natural Resources, Inc. (NYSE: HNR) --
http://www.harvestnr.com/-- is an independent energy company
engaged in the acquisition, exploration, development, production
and disposition of oil and natural gas properties. The company
has acquired and developed significant interests in the
Venezuela, Russia and has also undeveloped acreage offshore of
China. The company's only producing assets are in Venezuela.
Its subsidiary, Harvest Vinccler S.C.A. has been providing
operating services to Petroleos de Venezuela SA (PDVSA).
* * *
As reported in December 2007, Harvest Natural Resources said in
a statement that it incurred a US$6.5 million loss in the first
quarter 2007, and a net loss of US$62.5 million as of Dec. 31,
2006.
Moody's Investors Service Upgraded the company's senior implied
rating to Caa1 from Caa2 in September 2004. The rating still
hold to date.
PETROLEOS DE VENEZUELA: Eyes 5MM Barrels/Year from Joint Venture
----------------------------------------------------------------
Petroleos de Venezuela SA's Exploration and Production Vice
President Luis Vierma said that the company's joint venture with
China National Petroleum Corp. Service and Engineering Ltd. will
produce five million barrels oil oil per year in 2015.
As reported in the Troubled Company Reporter-Latin America on
April 7, 2008, Petroleos de Venezuela would form a joint venture
with CNPCSE for oil operations and services. The joint venture
will strengthen the Venezuelan operations through the use of
Chinese personnel and technology to consolidate the formers
sovereignty in energy. The joint venture should handle 30% of
oil activities in Venezuela.
Petroleos de Venezuela said that it would fulfill its plan to
increase production to 5.8 million barrels per day by 2012,
Steven Bodzin at Bloomberg News relates.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela
SA's long-term issuer default rating and local currency long
term issuer default rating at BB-. Fitch said the ratings
outlook is negative.
PETROLEOS DE VENEZUELA: Mulls Programs to Explore & Produce Oil
---------------------------------------------------------------
Petroleos de Venezuela SA's board has examined programs to
explore and produce oil, Prensa Latina reports, citing company
sources.
Prensa Latina's unnamed sources said the board is also analyzing
the firm's 2007 results.
Prensa Latina relates that the stages of the Mariscal Sucre
Project were evaluated:
-- exploitation plan,
-- leasing of drills,
-- underwater systems,
-- objectives, and
-- progress.
The board also discussed the boat drill Neptune Discoverer's
upcoming arrival to Venezuela. The boat will drill the first
wells Costa Afuera in the fields of Dragon and Patao, and then
transport the gas to the Industrial Complex Gran Mariscal de
Ayacucho, Prensa Latina states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela
SA's long-term issuer default rating and local currency long
term issuer default rating at BB-. Fitch said the ratings
outlook is negative.
PETROLEOS DE VENEZUELA: Payment to Fonden to be Taken from Tax
--------------------------------------------------------------
Petroleos de Venezuela SA's Chief Executive Officer Rafael
Ramirez told El Universal that contributions to the National
Development Fund or Fondon will be deducted from the planned tax
on windfall oil revenues.
El Universal relates that Venezuelan Vice President Ramon
Carrizalez submitted to windfall oil income bill or the tax law
governing revenues from extraordinarily high oil prices in world
markets to the Venezuelan Assembly for discussion and approval
last week. The Assembly approved the bill during their "plenary
session." Under the bill, all the corporations based in and
exporting liquid hydrocarbons from Venezuela shall pay the
Venezuelan government up to 60% of their revenues from oil sales
"when the benchmark North Sea Brent crude oil price exceeds a
ceiling of US$70 per barrel."
According to El Universal, the Executive Branch may exempt some
exports from this tax to encourage oil exports under government
economic policies or international cooperation plans. "The tax
shall be paid on a monthly basis in Venezuelan bolivars at the
official exchange rate of VEB2,150 per US dollar. Payment shall
be made within the first five working days following submittal
of the relevant form."
The bill will be forwarded to the Legislature's Committee on
Energy and Mines, which will then make a report for the second
discussion and approval in the plenary session. Once the bill
is approved this month, the new tax will be effective as of
May 1, El Universal states.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
As of Feb. 14, 2008, Fitch Ratings held Petroleos de Venezuela
SA's long-term issuer default rating and local currency long
term issuer default rating at BB-. Fitch said the ratings
outlook is negative.
===========
X X X X X X
===========
* Latin America Sees Brazil as First MPI 3 Country, Fitch Says
--------------------------------------------------------------
Fitch Ratings, in its latest semi-annual "Bank Systemic Risk
report" issued, says that banks worldwide face an increasingly
challenging operating environment. Bank systemic risk continues
to rise, the United States and Swiss banking systems have
weakened due to the U.S. subprime crisis, and a sharp fall in
global credit growth is underway.
"Large, global banks in several major developed countries have
been hardest hit by the US subprime crisis, marking this crisis
out from more familiar, country-specific banking crises," says
Fitch's sovereign team Senior Director, Richard Fox. "The US
and Swiss banking systems have been toppled from their top,
'very strong' ranking based on Fitch's Banking System Indicator.
But this still leaves them on a par with most developed country
banking systems which remain 'strong'. In the US, losses and
writedowns to date, while still mounting, fall well short of
aggregate system capital -- a conventional measure of the
severity of a banking crisis. But global real credit growth is
forecast to slow sharply to 9% this year, from over 14% last
year, and leading indicators of potential stress are flashing in
more emerging market regions."
The fall in the U.S. Banking System Indicator (BSI) to 'B' from
'A' reflects Individual rating downgrades for over 30 banks and
bank groups since October.
"Fitch expects ratings pressure to remain for the remainder of
2008, but a further decline in the BSI is not envisioned," says
Managing Director of Fitch's North American Financial
Institutions team, James Moss. "The largest US banks have
raised in excess of US$60 billion in new capital to date, often
in amounts representing 10% or more of a firm's capital base."
Developed countries in aggregate have more elevated macro
prudential indicators (MPI) than emerging markets. Four
developed countries are in Fitch's highest macro prudential risk
category (MPI 3), of which Iceland continues to give most cause
for concern; Fitch placed the three major banks' ratings on
Rating Watch Negative last week. Australia, Canada and Ireland
are also MPI 3, though the trends exhibited there are nowhere
near as extreme as in Iceland. Australia remains one of now only
five 'very strong' (BSI A) banking systems (Luxembourg, the
Netherlands, Spain and the U.K. are the others -- all MPI 2).
With the United Kingdom's Northern Rock an isolated bank
failure, none of these countries have seen any large bank's
Individual rating downgraded. In the U.K. and Spain, weakening
property sectors are likely to exert some moderate pressure on
banks, while in the U.K., the potential for additional write-
downs and a weaker earnings outlook for wholesale and investment
banking will impact banks more exposed to those sectors.
Fitch's Bank Systemic Risk matrix shows the BSI and MPI side by
side to emphasise that stronger banking systems, typically in
developed countries, are better able to withstand the potential
stress that Fitch's leading indicators of macro-prudential
stress aim to anticipate. Azerbaijan and Iran have been in the
weakest (E3) segment of the matrix for some time, although in
Azerbaijan's case low credit to GDP is a mitigating factor.
Russia remains in the 'D3' segment, now joined by Kazakhstan,
Romania and Turkey. The dependence of Kazakhstan's banking
system on external funding made it an early casualty of the
global credit squeeze. Credit growth is now slowing rapidly but
strong sovereign support has averted systemic failure. Romania
had one of the highest rates of real credit growth in emerging
Europe last year and it shows no sign of slowing. By contrast,
credit growth is slowing in Turkey. Like Slovakia, which also
moves into the MPI 3 category, credit growth only just exceeded
the MPI 3 threshold last year, in contrast to other emerging
Europe MPI 3s where real credit growth ranged from 30-60%.
Slovakia's banking system is relatively strong (BSI C) in
emerging market terms.
The GCC is a region with generally strong banking systems (BSI
B), on a par with the typical developed country system.
However, credit growth has been rapid for some time due to
abundant liquidity, strong demand and falling real interest
rates. Inflation has reached double digits in both Qatar and
the UAE and both these countries rise to MPI 3 in this report.
Latin America also sees its first MPI 3 country, Brazil --
though it too, has a stronger than average banking system by
emerging market standards, at BSI C.
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S U B S C R I P T I O N I N F O R M A T I O N
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