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/raid1/www/Hosts/bankrupt/TCRLA_Public/080414.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, April 14, 2008, Vol. 9, No. 73 Headlines A R G E N T I N A CASA BELEN: Proofs of Claim Verification Deadline is June 26 DYNAMOTIVE ENERGY: Signs Biomass Supply Deal in Argentina Plants SANFOR SALUD: Trustee to Verify Proofs of Claim Until May 27 W.R. GRACE: To Keep Medical Program to Support Asbestos Victims W.R. GRACE: Wants Court's Approval to Appoint Welsh as Mediator B A R B A D O S AMERICAN AIRLINES: Cancels More Flights as Inspections Continue AMERICAN AIRLINES: Canceled Flights Might Affect L-T S&P's Rtgs. AMERICAN AIRLINES: Flight Cancellations Doesn't Affect Barbados B E R M U D A AMAZON MARITIME: Proofs of Claim Filing Deadline is April 23 AMAZON MARITIME: Sets Final Shareholders Meeting for May 14 DFS BROKERS: Proofs of Claim Filing is Until April 23 DFS BROKERS: Sets Final Shareholders Meeting for May 13 FLUOR CONTINENTAL: Proofs of Claim Filing Deadline is April 23 FLUOR CONTINENTAL: Sets Final Shareholders Meeting for May 12 FOSTER WHEELER: UK Unit Bags Construction Deal from INEOS Feluy HATTERAS REINSURANCE: Proofs of Claim Filing Deadline is May 2 INTELSAT LTD: Galaxy 25 to Expand RRsat Services in NorthAm INTELSAT LTD: Inks Multi-Year Contract with Elite Entertainment INTELSAT LTD: Raymond Svider Joins Firm as Board Chairman SCOTTISH RE: Inks LOI to Recapture Business From Ballantyne Re SCOTTISH RE: Explores Sale of North America Life Reinsurance Biz SEA CONTAINER: Court Approves Entry to Charter Termination Pacts SEA CONTAINERS: Contrarian, et al. Wants Subpoenas Quashed SECURITY CAPITAL: Appoints Fred Corrado & Paul Hellmers to Board SUNVELD INVESTMENT: Proofs of Claim Filing is April 30 SUNVELD INVESTMENT: Sets Final Shareholders Meeting for May 15 B R A Z I L AMERICAN AXLE: New UAW Contract is Still Not Market Competitive AMERICAN AXLE: Union Workers and Supporters to Rally on April 18 AMERICAN AXLE: Strike Could Affect Plastech Operations AMR CORP: Cancels 570 Flights as Aircraft Inspections Resume BNP PARIBAS: Inks Deal With Diebold & Banca Nazionale del Lavoro BR MALLS: Plans Commercial Expansion With CR2 Empreendimentos DELPHI CORP: Moody's Withdraws Low-B Prospective Debt Ratings DRESSER-RAND GROUP: Solid Performance Cues S&P's Rating Upgrades GOL LINHAS: VRG Suspends International Routes to Focus on LatAm HERCULES INC: S&P Upgrades Ratings to 'BB+' on Improved Profile C A Y M A N I S L A N D S BLACK JAGUAR: Proofs of Claim Filing Deadline is April 17 BLUE STREAM: Proofs of Claim Filing is Until April 17 CPS CAYMAN: S&P Assigns BB Rating on Class B Deferrable Interest CRESCENT BROTHERS: Proofs of Claim Filing Deadline is April 17 DAMSEL FUNDING: Proofs of Claim Filing is Until April 17 JOY HOLDINGS: Proofs of Claim Filing is Until April 17 KICAP MASTER: Sets Final Shareholders Meeting for April 17 KICAP NETWORK: Will Hold Final Shareholders Meeting on April 17 OTTIMO FUNDING: Proofs of Claim Filing Deadline is April 17 POWRS 1997-1: Will Hold Final Shareholders on April 17 THE CONTRA FUND: Sets Final Shareholders Meeting for April 17 C O L O M B I A ECOPETROL: Closes Propilco Acquisition Deal GERDAU SA: Regulator Endorses Firm's Plan to Buy Comsisa Shares D O M I N I C A N R E P U B L I C TRAILER BRIDGE: S&P Holds B- Long-Term Corporate Credit Rating J A M A I C A CASH PLUS: Financial Woes May Affect Jamaican Economy CASH PLUS: Police Raid Carlos Hill's Residence M E X I C O CLEAR CHANNEL: Extends Tender Offers Expiration for Senior Notes DISTRIBUTED ENERGY: Appoints UHY LLP as New Independent Auditors FEDERAL-MOGUL: Panel's Special Counsel Seeks US$4.1 Mil. Payment KRISPY KREME: Lenders Approve Modifications in Credit Facilities LEVI STRAUSS: Feb. 24 Balance Sheet Upside-Down by US$318.87 Mln MEGA BRAND: Moody's Chips Ratings After Release of 2007 Results * MEXICO: S&P Publishes Industry Report on Mortgage Companies P E R U DOE RUN: Workers Launch Strike at La Oroya Refining Complex P U E R T O R I C O MAXXAM: Court of Appeals Upholds Judge Hughes' Ruling vs. FDIC R&G FINANCIAL: Gets Regulatory OK for April Dividend Payments SUNCOM WIRELESS: Moody's Ups Rating to 'B2' on T-Mobile Merger UNIVISION COMMS: Fitch Affirms CCC+ Rating on Sr. Unsecured Debt WESTERN RADIOSONIC: Case Summary, 23 Largest Unsecured Creditors V E N E Z U E L A HARVEST NATURAL: Says Venezuela's Windfall Tax Bad for Industry PETROLEOS DE VENEZUELA: Exxon Still Operates Chalmette Plant PETROLEOS DE VENEZUELA: Discloses Strategy at London Congress X X X X X X * BOND PRICING: For the Week April 7 - April 11, 2008 - - - - - ================= A R G E N T I N A ================= CASA BELEN: Proofs of Claim Verification Deadline is June 26 ------------------------------------------------------------ Luis Di Cesare, the court-appointed trustee for Casa Belen SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until June 26, 2008. Mr. Di Cesare will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 46, 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 Casa Belen 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 Casa Belen's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Di Cesare is also in charge of administering Casa Belen's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Casa Belen SRL General Fructuoso Rivera 6147 Buenos Aires, Argentina The trustee can be reached at: Luis Di Cesare Viamonte 1356 Buenos Aires, Argentina DYNAMOTIVE ENERGY: Signs Biomass Supply Deal in Argentina Plants ---------------------------------------------------------------- Dynamotive Energy Systems Corporation and its subsidiary Dynamotive Latinoamericana S.A., have disclosed the execution of contracts for the provision of biomass for two of its proposed plants in the Province of Corrientes in Argentina. The company said that it has identified, and has been offered, a site for the project within the Municipality of Virasoro. Negotiations in regard to the site are progressing and are expected to be completed in the near term. The signing of the biomass supply contract follows months of cooperative work with the Town of Virasoro which has been instrumental in attracting Dynamotive to the region. This represents a key step in the progress toward the development of the project announced in May, 2007. The contract envisages the delivery by the Municipality of Virasoro of 250,000 wet tonnes (approx. 150,000 dry tonnes) of biomass (sawdust and other forestry operations residues) per year for 10 years. The contract further provides Dynamotive an option to request deliveries beyond the initial 250,000 tonnes envisaged and beyond the initial period. The supply can be further enhanced through the utilization of land filled biomass in the region alleviating a significant environmental issue caused by soil and air pollution as a consequence of stockpiling and burning of biomass. Deliveries of biomass in accordance with the contract are envisaged to commence at the time that the proposed projects become operational. Dynamotive has the option to request earlier deliveries. Dynamotive continues to work with the Municipality of Virasoro and other biomass providers in the region. The development plan envisages up to 6 plants with further potential within the Province of Corrientes. The city of Gobernador Virasoro and the government of the Province of Corrientes have actively supported and continue to support this project. Dynamotive and its development partners in the region are in negotiations with the Province and other users in the region for the purchase of the plants’ output. The project envisages the potential for power generation and / or BioOil and char deliveries to customers. Proposals for the establishment of two power plants in the region have been presented. Further, the company is working with financial institutions who have expressed interest in the financing of the projects subject to conditions precedent being met. The company will report progress as it advances in its negotiations. All parties acknowledge that the project remains subject to satisfactory negotiations and execution of definitive agreements beyond the ones completed. Accordingly, there can be no certainty in respect of the company’s ultimate participation rights in the project, nor of actual completion of them at this time. About BioOil(R) Biofuel BioOil(R) is an industrial fuel produced from cellulose waste material. When combusted it produces substantially less smog- precursor nitrogen oxides (NOx) emissions than conventional oil as well as little or no sulfur oxide gases (SOx), which are a prime cause of acid rain. BioOil(R) and BioOil Plus(TM) are price-competitive replacements for heating oils #2 and #6 that are widely used in industrial boilers and furnaces. They have been EcoLogo certified, having met stringent environmental criteria for industrial fuels as measured by Environment Canada’s Environmental Choice Program. BioOil(R) can be produced from a variety of residue cellulosic biomass resources and is not dependent on food-crop production. About Dynamotive Energy Dynamotive Energy Systems Corporation (OTC BB: DYMTF.OB) -- http://www.dynamotive.com/-- is an energy solutions provider headquartered in Vancouver, Canada, with offices in the USA, UK and Argentina. Its carbon/greenhouse gas neutral fast pyrolysis technology uses medium temperatures and oxygen-less conditions to turn dry waste biomass and energy crops into BioOil(TM) for power and heat generation. BioOil(TM) can be further converted into vehicle fuels and chemicals. Going Concern Doubt BDO Dunwoody LLP, in Vancouver, Canada, conducted its audit of Dynamotive Energy Systems Corp.'s consolidated financial statements for the years ended Dec. 31, 2006, and 2005, in accordance with Canadian reporting standards, which do not permit a reference to conditions and events casting substantial doubt about the company's ability to continue as a going concern when these are adequately disclosed in the financial statements. Dynamotive Energy incurred a loss of US$14.3 million for the year ended Dec. 31, 2006. The company's ability to continue as a going concern is dependent on achieving profitable operations, commercializing its BioOil production technology and obtaining the necessary financing in order to develop this technology. SANFOR SALUD: Trustee to Verify Proofs of Claim Until May 27 ------------------------------------------------------------ Hugo Basile, the court-appointed trustee for Sanfor Salud SA's reorganization proceeding, will be verifying creditors' proofs of claim until May 27, 2008. Mr. Basile will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of Clerk No. 34, 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 Sanfor Salud 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 Sanfor Salud's accounting and banking records will be submitted in court. La Nacion didn't state the reports submission deadlines. Creditors will vote to ratify the completed settlement plan during the assembly on March 3, 2009. The debtor can be reached at: Sanfor Salud SA Pasaje King 348 Buenos Aires, Argentina The trustee can be reached at: Hugo Basile Uriburu 782 Buenos Aires, Argentina W.R. GRACE: To Keep Medical Program to Support Asbestos Victims --------------------------------------------------------------- W. R. Grace & Co. plans to retain the Medical Program it established in 2000 to assist local residents with medical needs resulting from their exposure to asbestos from the former Grace mine located near the town of Libby, Montana. "In talking to people in Montana last night, there seemed to be confusion about our medical program," William M. Corcoran, vice president, said. "When we saw some of the comments in the press, we were surprised. We have made it clear for many years that we intend to sustain the health care program when we emerge from Chapter 11 just as we did when we went into bankruptcy." The Libby Medical Program has been in effect since 2000. More than 800 people are currently enrolled in it and receive health care and prescription drug coverage. Since 2000, Grace has spent more than US$14 million on the program. In addition, Grace is making an additional annual contribution of US$250,000 to St. John's Lutheran Hospital in Libby, Montana. Since 2000, Grace has donated more than US$2 million to St. John's to support its work on this important issue. "St. John's is an outstanding health care institution with top notch health care staff," Mr. Corcoran said. "We are pleased that our donations have been used to help purchase state-of-the- art health care equipment and technology for the people of Libby, Montana." About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally including Argentina, Australia and Ireland. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. Estimation of W.R. Grace's asbestos personal injury liabilities commenced on January 14, 2008. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. As of November 30, 2007, W.R. Grace's balance sheet showed total assets of US$3,335,000,000, and total debts of US$3,712,000,000. W.R. GRACE: Wants Court's Approval to Appoint Welsh as Mediator --------------------------------------------------------------- W.R. Grace Co. and its debtor-affiliates ask the United States Bankruptcy Court for the District of Delaware to appoint Diane M. Welsh as the mediator for the asbestos-related property damage claims filed by Speights & Runyan on behalf of individual claimants. James E. O'Neill, Esq., at Pachulski, Stang, Ziehl & Jones LLP, in Wilmington, Delaware, relates that as of April 7, 2008, about 160 S&R Claims remain pending, all of which have been objected to by the Debtors on various grounds. He says the Court directed the Debtors and S&R, in January 2008, to submit to mediation to see if the remaining claims could be resolved. Thereafter, the Debtors and S&R exchanged information with respect to potential mediator candidates. As a result, the Debtors and S&R ultimately agreed on the selection of the Court as the mediator. the Court, according to Mr. O'Neill, served as a U.S. Magistrate Judge in the U.S. District Court for the Eastern District of Pennsylvania for 12 years. As Magistrate Judge, the Court conducted nearly 1,800 settlement conferences in virtually every area of civil litigation. She also served on the Alternative Dispute Resolution Committee for the Eastern District of Pennsylvania District Court for 10 years, drafting local federal court rules for a court-annexed mediation program. Since her retirement in 2005, the Court has served as a mediation and arbitrator with JAMS, an alternative dispute resolution organization. Pursuant to an engagement letter, the Court will be paid for her services at a rate of US$550 per hour plus an initial non- refundable case management fee of US$275 from each of the Debtors and S&R, plus out-of-pocket fees. The Mediator's fees and expenses will be paid equally by the Debtors and S&R. The Debtors and S&R agree to indemnify the Mediator for any damages. To the best of the Debtors' knowledge, the Court is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code, and does not have any interest adverse to the Debtors or their estates or S&R and its clients. Mr. O'Neill says the Court indicated that she can conduct the mediation on April 24 and 25, 2008. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally including Argentina, Australia and Ireland. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. Estimation of W.R. Grace's asbestos personal injury liabilities commenced on January 14, 2008. At Dec. 31, 2006, the W.R. Grace's balance sheet showed total assets of US$3,620,400,000 and total debts of US$4,189,100,000. As of November 30, 2007, W.R. Grace's balance sheet showed total assets of US$3,335,000,000, and total debts of US$3,712,000,000. (W.R. Grace Bankruptcy News, Issue No. 156; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) =============== B A R B A D O S =============== AMERICAN AIRLINES: Cancels More Flights as Inspections Continue --------------------------------------------------------------- American Airlines has canceled approximately 570 flights on April 11, as it works to complete the inspections of its MD-80 fleet. The airline continues efforts to re-accommodate customers affected by this week's activity. In the afternoon of April 10, 132 MD-80 aircraft were returned to service. Inspections will continue overnight, with approximately 170 MD-80s expected to be available for service on the morning of April 11. These inspections were conducted to ensure compliance with a Federal Aviation Administration directive related to the bundling of wires in the wheel well of the MD-80 aircraft. American Airlines apologizes for any inconvenience this activity has created for its customers. On Thursday, American Airlines canceled over 930 flights related to the MD-80 inspections. That follows the cancellation of 1,094 flights on Wednesday and 460 canceled flights on Tuesday. Customers who were scheduled on a flight that was canceled may request a full refund or apply the value of their ticket toward future travel on American Airlines. Additionally, customers scheduled to travel on any MD-80 flight April 8-13, even if their flight has not been canceled, may rebook without a change fee to any AA flight with availability in the same cabin as long as their travel begins by April 17. Customers who were inconvenienced with overnight stays should go to AA.com where a link has been established to request information about compensation. Customers also are encouraged to continue to check AA.com or to contact their travel agents for flight status information. About American Airlines 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 Barbados, 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. AMERICAN AIRLINES: Canceled Flights Might Affect L-T S&P's Rtgs. ---------------------------------------------------------------- Standard & Poor's Ratings Services does not expect American Airlines Inc.'s (B/Negative/--) widespread flight cancellations to have an impact on its ratings on the company or parent AMR Corp. (B/Negative/B-3), unless the disruptions are prolonged or more serious. S&P revised its outlook on AMR Corp. and American Airlines to negative from positive, and lowered its short-term rating on AMR Corp. to 'B-3' from 'B-2' on March 24, 2008. Still, AMR Corp. is likely to suffer a noticeable financial impact in the second quarter, mostly because of lost revenue and the cost of rebooking delayed passengers. The scale of the cancellations is beyond what would be caused by major storms affecting an airline's hub, the most nearly comparable situation. Further, American Airlines is providing more assistance, in the form of travel vouchers, overnight accommodations, etc., than it might in the case of weather- related cancellations. Major storms affecting hubs have sometimes hurt earnings up to US$20 million to US$30 million, but the damage in this case will likely be worse. Perhaps the only factors working in the company's favor are that its competitors' planes are already so crowded that it is not possible to book many passengers on other airlines, and American is not the first airline recently to have cancellations and a public relations problem related to maintenance. A longer-term issue, which will affect all of the United States airlines, is that these persistent operational problems at multiple carriers may make them more wary of raising fares further to offset very high fuel prices. It only takes one large airline to block an attempted general fare increase by not matching higher ticket prices, and American, and possibly other airlines, may be hesitant to raise prices on the heels of such well-publicized problems. The timing of these problems is unfortunate, as air travel demand is likely to be softer than last year, due to the very weak economy, and very high fuel prices are adding billions of dollars to airlines' expenses. About American Airlines 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 Barbados, 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. AMERICAN AIRLINES: Flight Cancellations Doesn't Affect Barbados --------------------------------------------------------------- American Airlines Inc.'s three days of cancellation of over 900 flights hasn't affected Barbados, Lisa Lorde at Caribbean Broadcasting Corp. reports. As reported in the Troubled Company Reporter-Latin America on April 10, 2008, American Airlines canceled several hundred flights to conduct additional inspections of its MD-80 fleet to ensure precise and complete compliance with the Federal Aviation Administration's airworthiness directive related to the bundling of wires in the aircraft's wheel wells. These inspections -- based on Federal Aviation Administration audits -- are related to detailed, technical compliance issues and not safety-of- flight issues. All flights to and from Barbados and their connecting flights are on schedule, CBC says, citing an American Airlines representative. The safety inspections are only for the MD-80 aircraft. Barbados wasn't affected since the island is serviced by the Airbus, CBC states. 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. ============= B E R M U D A ============= AMAZON MARITIME: Proofs of Claim Filing Deadline is April 23 ------------------------------------------------------------ Amazon Maritime Ltd.'s creditors have until April 23, 2008, to prove their claims to Christopher C. Morris, 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. Amazon Maritime's shareholder decided on April 3, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda AMAZON MARITIME: Sets Final Shareholders Meeting for May 14 ----------------------------------------------------------- Amazon Maritime Ltd. will hold its final shareholders' meeting on May 14, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. Amazon Maritime's shareholder decided on April 3, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda DFS BROKERS: Proofs of Claim Filing is Until April 23 ----------------------------------------------------- DFS Brokers Limited's creditors have until April 23, 2008, to prove their claims to Christopher C. Morris, 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. DFS Brokers' shareholders agreed on March 31, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda DFS BROKERS: Sets Final Shareholders Meeting for May 13 ------------------------------------------------------- DFS Brokers Limited will hold its final shareholders' meeting on May 13, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. DFS Brokers' shareholders agreed on March 31, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda FLUOR CONTINENTAL: Proofs of Claim Filing Deadline is April 23 -------------------------------------------------------------- Fluor Continental Limited's creditors have until April 23, 2008, to prove their claims to Christopher C. Morris, 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. Fluor Continental's shareholders agreed on April 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda FLUOR CONTINENTAL: Sets Final Shareholders Meeting for May 12 ------------------------------------------------------------- Fluor Continental Limited will hold its final shareholders' meeting on May 12, 2008, at 9:30 a.m. at Messrs. Conyers Dill & Pearman, Clarendon House, Church Street, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. Fluor Continental's shareholders agreed on April 7, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Robin J. Mayor Messrs. Conyers Dill & Pearman Clarendon House, Church Street Hamilton, HM DX, Bermuda FOSTER WHEELER: UK Unit Bags Construction Deal from INEOS Feluy --------------------------------------------------------------- Foster Wheeler Ltd.'s UK subsidiary, Foster Wheeler Energy Limited, part of its Global Engineering and Construction Group, has been awarded a contract by INEOS Feluy SPRL for the engineering, procurement and construction phase of the expansion of INEOS' existing polyalphaolefins (PAO) plant at Feluy, located south of Brussels, Belgium. The Foster Wheeler contract value, which was not disclosed, was included in the company's fourth-quarter 2007 bookings. This contract will be executed by Foster Wheeler's Glasgow Operation in the UK which has undertaken both the feasibility study and front-end engineering design for the project. “We are pleased that INEOS has demonstrated its continued confidence in Foster Wheeler by selecting us for the EPC phase of this project,” said Michael J. Beaumont, chairman and chief executive officer, Foster Wheeler Energy Limited. “This award reflects our technical expertise and our track record of delivering world-class engineering, procurement and construction performance on chemicals projects around the world.” “This is a significant step in our overall goal to support growth in the PAO market,” said Jeff Seed, Operations Director, INEOS Oligomers. Foster Wheeler Ltd. (Nasdaq: FWLT) -- http://www.fwc.com/-- offers a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. The corporation is based in Hamilton, Bermuda, and its operational headquarters are in Clinton, New Jersey. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Standard & Poor's Ratings Services revised its outlook on Foster Wheeler Ltd. to positive from stable. At the same time, S&P affirmed its 'BB' corporate credit rating on the company. The company reported total debt of approximately US$150 million at Sept. 30, 2007. HATTERAS REINSURANCE: Proofs of Claim Filing Deadline is May 2 -------------------------------------------------------------- Hatteras Reinsurance Limited's creditors have until May 2, 2008, to prove their claims to Michael Morrison and Charles Thresh, 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. Creditors who have already filed proofs of claim may contact: James Bennett E-mail: jamesbennett@kpmg.bm Phone: +1 441 294 2603 Hatteras Reinsurance's shareholders decided to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Michael Morrison and Charles Thresh c/o KPMG Advisory Limited Crown House, 4 Par-la-Ville Road Hamilton HM 08, Bermuda INTELSAT LTD: Galaxy 25 to Expand RRsat Services in NorthAm ----------------------------------------------------------- Intelsat Ltd. reported that RRsat Global Communications Network Ltd., a global provider of comprehensive content management and distribution services to the television and radio broadcasting industries, signed a multi-year contract on Intelsat’s Galaxy 25 satellite to expand RRsat’s services into the North American region. RRsat contracted for capacity on Intelsat’s Galaxy 25 satellite for content broadcasting throughout North America. The Galaxy 25 satellite located at 97 degrees West within Intelsat’s valuable Galaxy neighborhood is the largest ethnic video platform, offering programmers and content distributors access to the U.S. cable community, reaching millions of homes. RRsat will leverage the Galaxy 25 capacity to distribute regional television programming from Europe and Asia into the U.S. cable market. “We are pleased once again to expand our premier RRsat Global Network over Intelsat’s Galaxy 25 satellite. This new multi- year contract will further develop our North American coverage, enabling us to increase our solutions offering, meeting our customers’ growing demands for our comprehensive content management and global distribution services,” said Lior Rival, RRsat’s Vice President Sales & Marketing. “Likewise, the Galaxy 25 will allow us the opportunity to expand our tailored program distribution offering to current and new customers throughout the United States.” “Globalization of content is one of the biggest trends creating demand for satellite capacity. Our long-standing relationship with RRsat exemplifies how Intelsat delivers regional programming to the world,” said Jean-Philippe Gillet, Intelsat’s Regional Vice President, Europe & Middle East Sales. “Throughout the past years, RRsat has been able to seamlessly provide additional content to its established clientele and forge new customers throughout Africa, Asia and North America, utilizing Intelsat’s industry-leading satellite fleet. Our fleet is supporting the top global DTH and cable neighborhoods in regions where ethnic content is most in demand.” About RRsat Global RRsat Global Communications Network Ltd. (NASDAQ:RRST) provides global, comprehensive, content management and distribution services to the rapidly expanding television and radio broadcasting industries. Through its proprietary “RRsat Global Network,” composed of satellite and terrestrial fiber optic transmission capacity and the public Internet, RRsat is able to offer high quality and flexible global distribution services for content providers. RRsat's comprehensive content management services include producing and playing out TV content as well as providing satellite newsgathering services (SNG). RRsat concurrently provide these services to more than 425 television and radio channels, covering more than 150 countries. About Intelsat Ltd. Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. The company has a sales office in Brazil. Intelsat, Ltd.'s December 31 balance sheet showed total assets of US$12,053,332, total liabilities of US$12,775,716 and stockholders' deficit of US$722,384. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. S&P said the outlook is stable. INTELSAT LTD: Inks Multi-Year Contract with Elite Entertainment --------------------------------------------------------------- Intelsat Ltd. has entered a multi-year, multi-transponder contract with Bogota-based Elite Entertainment Television S.A. to distribute DTH content to its customers in Colombia. Elite Entertainment is the 28th DTH platform hosted on the Intelsat global network. Under the terms of the contract, Elite will use Intelsat’s capacity to distribute its programming bouquet of movies, sports, news and entertainment. The National Commission of Television of Colombia (CNTV) awarded the country’s third DTH license to Elite Entertainment Television S.A. “Intelsat offers us a flexible and powerful space segment solution that allows us to enter the DTH market in Colombia with a high quality service,” said Ivan Almeyda, Executive Vice President for Elite Entertainment. “We are confident that Intelsat is the right partner now and in the future as we expand and develop our service in Colombia and the region.” “Intelsat provides the satellite capacity that enables world- class solutions for video distribution throughout the world. Delivering this new DTH content demonstrates our commitment to our customers and our customers’ end users,” said Carmen Gonzalez-Sanfeliu, Intelsat’s Regional Vice President for Latin America & the Caribbean. “South America is an important region for Intelsat and this agreement affirms Intelsat’s position as the leading satellite services company serving Latin America.” About Elite Entertainment Based in Bogota, Colombia, Elite Entertainment Television S.A. was granted the third DTH services license for Colombia by the Colombian authorities. Elite Entertainment will deliver outstanding satellite based television services to Colombian customers beginning in the third quarter of this year. Elite will offer its services with the most advanced technology available in the market. About Intelsat Ltd. Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. The company has a sales office in Brazil. Intelsat, Ltd.'s December 31 balance sheet showed total assets of US$12,053,332, total liabilities of US$12,775,716 and stockholders' deficit of US$722,384. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. S&P said the outlook is stable. INTELSAT LTD: Raymond Svider Joins Firm as Board Chairman --------------------------------------------------------- Intelsat Ltd. has selected Raymond Svider, a Managing Partner of BC Partners, Intelsat’s majority shareholder, to the position of Chairman at a recent meeting of the Intelsat Board of Directors. Mr. Svider will replace Joseph Wright, who recently notified the company of his resignation as Chairman of the Board and Director of Intelsat, Ltd., effective May 1, 2008. David McGlade, Intelsat’s Chief Executive Officer stated, “Joe Wright has been a key figure in the success of the fixed satellite services industry. From his days on the PanAmSat board, through his distinguished service as PanAmSat’s CEO, to the last two years as Intelsat’s Chairman, he has been a major force in the positive changes that have shaped our sector. Joe’s valuable insights as we combined Intelsat and PanAmSat, particularly with respect to our government business, allowed Intelsat to quickly obtain the benefits of our ‘one company’ operating structure. We wish him every success in his future endeavors.” Mr. Svider is expected to assume the Chairman role upon Mr. Wright’s vacating the post on May 1, 2008. Headquartered in Pembroke, Bermuda, Intelsat, Ltd. -- http://www.intelsat.com/-- is the largest fixed satellite service operator in the world and is owned by Apollo Management, Apax Partners, Madison Dearborn, and Permira. The company has a sales office in Brazil. Intelsat, Ltd.'s December 31 balance sheet showed total assets of US$12,053,332, total liabilities of US$12,775,716 and stockholders' deficit of US$722,384. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Intelsat Ltd. to 'B' from 'B+' and removed the ratings from CreditWatch. S&P said the outlook is stable. SCOTTISH RE: Inks LOI to Recapture Business From Ballantyne Re -------------------------------------------------------------- On March 31, 2008, Scottish Re Group Limited, Scottish Re (U.S.) Inc., Scottish Re Life (Bermuda) Limited, Scottish Re (Dublin) Limited and Scottish Annuity & Life Insurance Company (Cayman) Ltd. entered into a binding letter of intent with ING North America Insurance Corporation, ING America Insurance Holdings Inc., Security Life of Denver Insurance Company and Security Life of Denver International Ltd. Under the letter of intent, Security Life of Denver Insurance Company consented to the recapture, in one or more transactions, of a pro-rata portion of the business that had been ceded by Scottish Re (U.S.) Inc. to Ballantyne Re plc, an orphan special purpose vehicle incorporated under the laws of Ireland for the purpose of collateralizing the statutory reserve requirements of the Valuation of Life Insurance Policies Model Regulation XXX for a portion of the business acquired by the company from Security Life of Denver Insurance Company and Security Life of Denver International Ltd. at the end of 2004. The Recaptures would extend to up to US$375,000,000 of excess statutory reserves on the subject business and would involve, among other things, amendments to the coinsurance agreements between Scottish Re (U.S.) Inc. and Security Life of Denver Insurance Company. The consent to the Recaptures is subject to several conditions. The Recaptures are primarily designed to allow Scottish Re (U.S.) Inc. to continue to receive full credit for reinsurance for the business ceded to Ballantyne. Immediately following the consummation of each Recapture, Security Life of Denver Insurance Company will recapture the Recaptured Business from Scottish Re (U.S.) Inc. in exchange for consideration from Scottish Re (U.S.) Inc. to Security Life of Denver Insurance Company. Security Life of Denver Insurance Company will then cede the Recaptured Business to Security Life of Denver International Ltd., which will cede the Recaptured Business to Scottish Re Life (Bermuda) Limited. Scottish Re Life (Bermuda) Limited may cede the Recaptured Business to either of Scottish Annuity & Life Insurance Company (Cayman) Ltd. or Scottish Re (Dublin) Limited. Security Life of Denver International Ltd. has agreed to provide, or cause the provision of, one or more letters of credit in order to provide Security Life of Denver Insurance Company with statutory financial statement credit for the excess of the U.S. statutory reserves associated with the Recaptured Business over the economic reserves held in an account related thereto. The company will bear the costs of the Letters of Credit by paying to Security Life of Denver Insurance Company a facility fee based on the face amount of such Letters of Credit outstanding as of the end of the preceding calendar quarter. If certain conditions are not satisfied by Dec. 31, 2008, or otherwise satisfied on or before April 30, 2009, the facility Fee will be stepped up and the company will pay a commitment fee for use of the facility. Under the letter of intent, the parties also agreed to promptly effect, following the completion of the first Recapture, an assignment from Scottish Re (U.S.) Inc. to Security Life of Denver Insurance Company, and the assumption by Security Life of Denver Insurance Company, of all of Scottish Re (U.S.) Inc.'s rights and obligations solely with respect to the reinsurance agreement and reinsurance trust agreement previously entered into between Scottish Re (U.S.) Inc. and Ballantyne, with the effect that Security Life of Denver Insurance Company would be substituted for Scottish Re (U.S.) Inc. as the ceding company under such reinsurance agreement and as the beneficiary under the related reinsurance trust account. Security Life of Denver Insurance Company would not assume any other rights or obligations of Scottish Re (U.S.) Inc. with regard to Ballantyne. The parties have agreed to use reasonable best efforts to complete such transaction by June 30, 2008. The LOI further provides that Security Life of Denver Insurance Company's consent to any Recapture is subject to the condition that the parties receive the consent (as necessary) of the financial guarantors to the outstanding Ballantyne debt to the assignment and assumption, and also that ING receive certain regulatory approvals and explications. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Ireland, Singapore, the United Kingdom and the United States. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (U.S.) Inc., and Scottish Re Limited. As of Sept. 30, 2007, the company's consolidated balance sheet showed US$13.372 billion in total assets, US$11.939 billion in total liabilities, US$7.4 million in minority interest, US$555.9 million in convertible cumulative participating preferred shares, and US$869.3 million in total shareholders' equity. * * * As reported in the Troubled Company Reporter-Latin America on March 14, 2008, Moody's Investors Service downgraded the preferred stock debt rating of Scottish Re Group Limited to Caa3 from B2, and the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company Ltd. and Scottish Re Inc., were lowered to Ba3 from Baa3. The ratings were left on review for possible further downgrade, continuing a review that had been initiated on Feb. 15. SCOTTISH RE: Explores Sale of North America Life Reinsurance Biz ---------------------------------------------------------------- Scottish Re Group Ltd. disclosed in a regulatory filing with the Securities and Exchange Commission dated April 4, 2008, that the company's Board of Directors, in furtherance of its previously announced strategy to develop opportunities to maximize the value of the company's core competitive capabilities within the Life Reinsurance North America Segment, has instructed management to explore the possible sale of all or part of the business constituting the Life Reinsurance North America Segment. The company has retained Merrill Lynch to act as financial advisor for this purpose. With respect to the sale of the Life Reinsurance International Segment, the company retained Keefe, Bruyette & Woods to act as its financial advisor. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Ireland, Singapore, the United Kingdom and the United States. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (U.S.) Inc., and Scottish Re Limited. As of Sept. 30, 2007, the company's consolidated balance sheet showed US$13.372 billion in total assets, US$11.939 billion in total liabilities, US$7.4 million in minority interest, US$555.9 million in convertible cumulative participating preferred shares, and US$869.3 million in total shareholders' equity. * * * As reported in the Troubled Company Reporter-Latin America on March 14, 2008, Moody's Investors Service downgraded the preferred stock debt rating of Scottish Re Group Limited to Caa3 from B2, and the insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company Ltd. and Scottish Re Inc., were lowered to Ba3 from Baa3. The ratings were left on review for possible further downgrade, continuing a review that had been initiated on Feb. 15. SEA CONTAINER: Court Approves Entry to Charter Termination Pacts ---------------------------------------------------------------- The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware authorized Sea Containers Ltd. and its debtor-affiliates to enter into two Charter Termination Agreements in connection with the sale of SeaStreak America, Inc., and Highlands Landing Corporation by non-debtor affiliate, Sea Containers America, Inc., to New England Fast Ferries for US$3,000,000. Upon consummation of the Agreements, the Charter Guarantees and all other related obligations of SCL will be deemed terminated and otherwise released in accordance with the terms of the Agreements. Judge Carey ruled that for the avoidance of doubt, nothing will be deemed to: (i) alter or elevate the prepetition nature and priority of any claims asserted by CitiCapital Commercial Leasing Corporation and Chase Equipment Leasing, Inc., with respect to any obligations arising under the Charter Guarantees or the Charter Termination Agreements; or (ii) give rise to postpetition administrative claims with respect to those obligations. Judge Carey maintained that with respect to the Debtors, the Official Committee of Unsecured Creditors of Sea Containers Ltd., and the Official Committee of Unsecured Creditors of Sea Containers Services Ltd., the Agreements and the sale of SeaStreak America, Inc., will not prejudice any parties' rights and defenses with respect to: -- the Services Agreement dated August 18, 1989, between SCL and SCSL, to the extent applicable; -- the final determination of the existence, amount and treatment of any related or underlying inter-company claims; and -- the appropriate allocation of any proceeds, costs or obligations. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court gave the Debtors until April 15, 2008 to file a plan of reorganization. (Sea Containers Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Contrarian, et al. Wants Subpoenas Quashed ---------------------------------------------------------- Bondholders Contrarian Capital Advisors, LLC, J.P. Morgan Securities Inc., Credit Trading Group, Post Advisory Group, LLC, Trilogy Capital LLC, and Varde Investment Partners, L.P., ask the U.S. Bankruptcy Court for the District of Delaware to quash certain subpoenas dated March 5, 2008, served by the Official Committee of Unsecured Creditors of Sea Containers Services Ltd. In the alternative, the Bondholders seek a protective order pursuant to Rule 45(c)(3) of the Federal Rules of Civil Procedure, made applicable by Rule 9016 of the Federal Rules of Bankruptcy Procedure. The Debtors had asked the Court to approve their proposed settlement with the SCSL Committee, and the Trustees of the 1983 and 1990 Pension Schemes. Neal J. Levitsky, Esq., at Fox Rothschild LLP, in Wilmington, Delaware, relates that the Official Committee of Unsecured Creditors of Sea Containers Ltd. has indicated that it will object to the Settlement Request, and accordingly, has served document requests and deposition notices on the Settlement Parties. He notes that the SCSL Committee, but not the Pension Schemes, has also served discovery requests on the SCL Committee. Mr. Levitsky discloses that the Bondholders' counsel has attended the Settlement negotiations, but the Bondholders have not formally objected to the Settlement, filed any pleadings or participated in any discovery. Yet, the SCSL Committee served each of the Bondholders with separate Subpoenas, seeking extensive document productions and depositions under Rule 30(b)(6) of the Federal Rule of Civil Procedure on 17 separate topics. The Bondholders assert that the discovery requests "overwhelmingly appear to relate" to communications between them and others concerning the Settlement or the Settlement Request, including: -- communications related to the claims asserted by the Pension Schemes, analyses and valuations of the Pension Claims, and the application of prudent investor discount rate; -- documents, expert reports, and other evidence, on which theBondholders would rely if they file an objection to the Settlement Request; -- documents concerning communications between the Bondholders and The Pensions Regulator; and -- communications between the Bondholders, the Debtors, the SCL Committee, or any of the Debtors' DIP Lenders concerning whether the SCSL Committee violated the automatic stay. In addition, the Subpoenas seek information related to the SCSL Committee's request for compliance under Rule 2019(a) of the Federal Rules of Bankruptcy Procedure, including documents and deposition testimony concerning amounts of the Bondholders' claims or interests and notes, the jurisdiction in which the account holding the notes is located, and the name of the beneficial holders of the notes, among other things. Mr. Levitsky contends that the discovery sought by the SCSL Committee is improper, and the Court should quash the Subpoenas or enter a Protective Order. He argues that it is unclear what litigation value, if any, is gained from the pursuit of extensive and costly discovery from third-party creditors like the Bondholders, regarding a decision that the Debtors have made and must justify. He further notes that the Bondholders are not parties to the Settlement, and cannot provide evidence as to why the Debtors believe the Settlement is a reasonable one. The extensive discovery sought by the Subpoenas is not only irrelevant, it will also impose substantial burden and costs on the Bondholders, Mr. Levitsky tells the Court. He points out that the Subpoenas were served by the SCSL Committee, which is not a party to the Settlement Request, or even a creditor of the SCL bankruptcy estate. Therefore, he says, the SCSL Committee can demonstrate no proper reason or legal basis to seek discovery. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Court gave the Debtors until April 15, 2008 to file a plan of reorganization. (Sea Containers Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SECURITY CAPITAL: Appoints Fred Corrado & Paul Hellmers to Board ---------------------------------------------------------------- Security Capital Assurance Ltd has appointed Fred Corrado and Paul E. Hellmers to the company's board of directors. Following these two appointments, the board will have nine members. "We are pleased to welcome Fred and Paul as new members of the board. Their collective expertise in finance and risk management will be a strong addition to the company's board and we look forward to the counsel and experience that they will bring to SCA," said Security Capital's chairperson, Michael P. Esposito, Jr. Mr. Corrado is being nominated as a Class II Director to fill the vacancy created by the resignation of Brian M. O'Hara from the company's board on Nov. 26, 2007. Mr. Hellmers is being nominated as a Class I Director to fill the vacancy created by the resignation of Alan Z. Senter from the company's board on Dec. 27, 2007. Mr. Corrado has over 40 years experience in finance, general management and corporate governance. Mr. Hellmers has over 25 years of diverse investment banking, real estate, insurance and general management experience. Mr. Corrado served as chief financial officer and vice chairman of the board of directors for Great Atlantic & Pacific Tea Co., Inc. from his appointment in 1992 to his retirement in 2002. He joined Great Atlantic in 1987. Prior to that, he served as president and chief operating officer of Nabisco Brands Ltd. from 1984 to 1986 and was a member of its board of directors. Mr. Corrado joined Nabisco in 1973. Mr. Corrado currently serves as director and audit committee chair of Novell, Inc. (since November 2002). He also is a member of the Approva Corporation advisory board of directors (since 2005); a director of the New Jersey Performing Arts Center (since 1999); and is a business strategy, acquisitions and integration consultant (since 2002). From 1998 to 2006, he served as director, member of the executive committee and chair of the finance committee of Covenant House. Mr. Corrado is a certified public accountant in New York State; a member of AICPA and NYSSCPA; a member of FEI and former chairman of their CFO Financial Advisory Council. He graduated with a B.B.A. from Manhattan College and is a graduate of Harvard Graduate School of Business' Advanced Management Program. Mr. Hellmers served as president and chief executive officer of Centre Solutions (Bermuda) Ltd from 1998 to 2002. From 1995 to 1998, he served as managing director and co-founder of Zurich Structured Finance. Prior to that, he served as a principal for Morgan Stanley & Co., Inc. in the Fixed Income Division, Structured Finance and Real Estate Debt Capital Markets Group and in the Investment Banking Division, Capital Markets Group, where he was a founding member of the Interest Rate and Currency Swap Group. Since 2004, Mr. Hellmers has served as the co-chairperson of the board of directors and Executive Director of Phoenix Four, Inc. He graduated summa cum laude from the University of California at Los Angeles with a B.A. and received his M.B.A. from Stanford University. The company also announced that its annual general meeting of shareholders will be held at the offices of Security Capital Assurance Ltd, A.S. Cooper Building, 26 Reid Street, Hamilton, HM 11, Bermuda on May 20, 2008 at 8:30 a.m. local time. About Security Capital Security Capital Assurance Ltd. (NYSE: SCA) -- http://www.scafg.com-- is a Bermuda-domiciled holding company whose primary operating subsidiaries, XL Capital Assurance Inc. and XL Financial Assurance Ltd, provide credit enhancement and protection products to the public finance and structured finance markets throughout the United States and internationally. * * * As reported in the Troubled Company Reporter-Latin America on April 2, 2008, Standard & Poor's Ratings Services lowered its rating on Security Capital Assurance Ltd.'s series A perpetual noncumulative preference shares to 'D' from 'C'. At the same time, S&P removed the rating from CreditWatch with negative implications. The rating action follows the company's failure to make its March 31, 2008, dividend payment. SUNVELD INVESTMENT: Proofs of Claim Filing is April 30 ------------------------------------------------------ Sunveld Investment Ltd.'s creditors have until April 30, 2008, to prove their claims to Christopher C. Morris, 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. Sunveld Investment's shareholders agreed on April 2, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Christopher C. Morris Arthur Morris, Christensen & Co. Century House, 16 Par-la-Ville Road Hamilton HM 08, Bermuda SUNVELD INVESTMENT: Sets Final Shareholders Meeting for May 15 -------------------------------------------------------------- Sunveld Investment Ltd. will hold its final shareholders' meeting on May 15, 2008, at 10:00 a.m. at Arthur Morris, Christensen & Co., Century House, 16 Par-la-Ville Road, Hamilton, Bermuda. These matters will be taken during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, and 2) authorizing the liquidator to retain the records of the company for a period of three years from the dissolution of the company, after which they may be destroyed. Sunveld Investment's shareholders agreed on April 2, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Christopher C. Morris Arthur Morris, Christensen & Co. Century House, 16 Par-la-Ville Road Hamilton HM 08, Bermuda =========== B R A Z I L =========== AMERICAN AXLE: New UAW Contract is Still Not Market Competitive --------------------------------------------------------------- Negotiations between American Axle & Manufacturing Holdings Inc. and United Auto Workers union representatives will continue despite the rejection of new UAW proposal by Axle, Reuters reports. Axle admits the new contract was better, but the total cost was still roughly 200% above the market rate for Axle's competitors in the U.S. auto parts industry. Reuters says negotiators came back to the bargaining table offering a new contract on Wednesday. As reported in the Troubled Company Reporter on March 31, 2008, Axle's Chief Executive Officer Richard Dauch berated the UAW for the work stoppage that has caused a chain reaction in the U.S. auto industry. The CEO added that the auto parts manufacturer may end up outsourcing its manufacturing division if talks with the UAW negotiations fail. CEO Dauch said that the company has the right to outsource its work since they have facilities all over the globe -- Mexico, South America, Europe, and Asia. Mr. Dauch added that Axle will not be forced into bankruptcy. As previously reported in the TCR, labor talks ceased on March 11 after a bargaining that lasted three days failed to produce results. Union officials weren't happy with the terms proposed by the auto parts company. Axle is demanding wage reductions of up to US$14 an hour as well as elimination of future retiree health care and defined benefit pensions for active workers. Axle, which earned US$37 million on US$3.25 billion sales in 2007, wanted a deal like those UAW gave General Motors Corp., Ford Motor Co., Chrysler LLC, and parts makers Delphi Corp. and Dana Corp., insisting that cutting labor costs is essential to be competitive. The auto parts supplier is asking the union to approve US$20 to US$30 hourly wage cuts from US$73 per hour to US$27 per hour, arguing that its original U.S. Locations incurred losses for three years. The March 11 talks would have resolved a strike, which started Feb. 26, 2008, of the 3,650 employees at master-contract plants in Michigan and New York. Strike Impact on Automakers GM has about 29 facilities affected by the strike at Axle as the supplier attempts to negotiate with the union. GM president and COO Frederick Henderson said GM won't meddle in the labor dispute between AAM and the UAW. As reported in the TCR on March 27, 2008, the month-long work protest of union members at Axle is taking its toll on GM, threatening the automaker's brake part plant in Lordstown, Ohio, which has 2,400 workers. Chrysler LLC is temporarily closing its vehicle assembly facility in Newark, Delaware as the strike among UAW union members at AAM stretches. AAM supplies Chrysler components for the Dodge Durango and Chrysler Aspen sport utility vehicles in Newark and two versions of the Dodge Ram pickup made in Saltillo, Mexico. About Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter on April 4, 2008, Moody's Investors Service placed American Axle & Manufacturing Holdings, Inc.'s Ba3 Corporate Family Rating under review for downgrade. As reported in the Troubled Company Reporter on Nov. 27, 2007, Moody's Investors Service affirmed American Axle & Manufacturing Holdings, Inc.'s Corporate Family rating of Ba3 as well its senior unsecured rating of Ba3 to American Axle & Manufacturing Inc.'s notes and term loan. At the same time, the rating agency revised the rating outlook to stable from negative and renewed the Speculative Grade Liquidity rating of SGL-1. AMERICAN AXLE: Union Workers and Supporters to Rally on April 18 ---------------------------------------------------------------- United Auto Workers union members and supporters will rally at 11:30 a.m. on April 18, 2008, at Detroit's Hart Plaza to support striking workers at American Axle & Manufacturing Holdings Inc. More than 3,500 UAW members from UAW Locals 235, 262 and 2093 in Michigan and UAW Locals 424 and 826 in New York have been on strike since Feb. 26 to protest unfair labor practices. "The support our members have received during this strike is overwhelming," UAW President Ron Gettelfinger said. "We've heard from members of the clergy, from local businesses, from community leaders -- and of course from UAW members and the entire labor movement." "Our rally on April 18th will be a great time to show solidarity with American Axle strikers, and to demonstrate support for keeping manufacturing jobs here in the United States," Mr. Gettelfinger said. "Even business publications like the Automotive News can't understand how American Axle can justify giving pay raises to executives while demanding pay cuts from workers," UAW Vice President James Settles Jr., who directs the union's American Axle Department, said. "In addition to their unjustified economic demands," Mr. Settles said, "AAM has refused to provide us the information we need for bargaining, and has illegally cut off disability payments and health care for injured workers, as well as compensation -- including health care -- for laid off workers. That's why this is an unfair labor practices strike." "Our members at American Axle are standing up for what's right -- and we're inviting our entire community to stand with us on April 18th at Hart Plaza." Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter on April 4, 2008, Moody's Investors Service placed American Axle & Manufacturing Holdings, Inc.'s Ba3 Corporate Family Rating under review for downgrade. As reported in the Troubled Company Reporter on Nov. 27, 2007, Moody's Investors Service affirmed American Axle & Manufacturing Holdings, Inc.'s Corporate Family rating of Ba3 as well its senior unsecured rating of Ba3 to American Axle & Manufacturing Inc.'s notes and term loan. At the same time, the rating agency revised the rating outlook to stable from negative and renewed the Speculative Grade Liquidity rating of SGL-1. AMERICAN AXLE: Strike Could Affect Plastech Operations ------------------------------------------------------ According to the Holland Sentinel, the strike by American Axle and Manufacturing Holdings Inc. workers could affect Plastech Engineered Products, Inc. and its debtor-affiliates. As widely reported, The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, which represents American Axle's employees, has called for a strike and mass picket against Axle at its Detroit, Michigan, headquarters. The strike, which has been ongoing for more than five weeks, has forced General Motors Corp., one of Plastech's key customers, to idle or ramp down production at 30 of its plants that make large trucks and sports utility vehicles. Union officials say the company may soon have to bring down lines in Kansas City, Kan., and Orion Township near Detroit that make the Chevy Malibu, the Holland Sentinel reported. Plastech runs Johnson Controls, Inc.' Southview plant in Holland, Michigan, and has 30 employees who make the floor consoles for the Malibu. If the Malibu production is interrupted, so too would the production of the interior parts for the vehicle, according to the same report. The strike, which involved 3,650 workers, started due to American Axle's withholding of data regarding pensions, health care and profit sharing. The company has also sought to cut wages and benefits by half, according to the Detroit Free Press. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling US$729,000,000 and total liabilities of US$695,000,000. (Plastech Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About American Axle Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on April 4, 2008, Moody's Investors Service placed American Axle & Manufacturing Holdings, Inc.'s Ba3 Corporate Family Rating under review for downgrade. As reported in the Troubled Company Reporter-Latin America on Nov. 27, 2007, Moody's Investors Service affirmed American Axle & Manufacturing Holdings, Inc.'s Corporate Family rating of Ba3 as well its senior unsecured rating of Ba3 to American Axle & Manufacturing Inc.'s notes and term loan. At the same time, the rating agency revised the rating outlook to stable from negative and renewed the Speculative Grade Liquidity rating of SGL-1. AMR CORP: Cancels 570 Flights as Aircraft Inspections Resume ------------------------------------------------------------ AMR Corp. principal subsidiary American Airlines Inc. canceled approximately 570 flights on April 11, 2008, as it works to complete the inspections of its MD-80 fleet. The airline continues efforts to re-accommodate customers affected by this week's activity. As of Thursday afternoon, 132 MD-80 aircraft were returned to service. Inspections will continue overnight, with approximately 170 MD-80s expected to be available for service on Friday morning. As reported in yesterday's Troubled Company Reporter, American Airlines canceled more than 900 flights on Thursday. As of Wednesday afternoon, * 179 MD-80 aircraft were completely inspected; * 60 of the 179 MD-80s were returned to service; * 119 of the 179 MD-80s were still undergoing work; * 121 MD-80s remain to be inspected. On Wednesday, American officially canceled 1,094 flights, in addition to the 460 canceled on Tuesday. "We apologize for the inconvenience this has caused our customers," Gerard Arpey, Chairman and CEO of American Airlines, said. "American will do whatever it takes to assist those affected by these flight changes and our employees are working hard to ensure that we remain their choice for air travel. This includes compensating those inconvenienced customers who stayed overnight in a location away from their final destination." "We continue to inspect every airplane to ensure we are in total agreement with the specifications of the directive," Mr. Arpey said. "We will get back to a full schedule as quickly as possible." These inspections were conducted to ensure compliance with a Federal Aviation Administration directive related to the bundling of wires in the aircraft's wheel well of the MD-80 aircraft. These inspections -- based on FAA audits -- are related to detailed, technical compliance issues and not safety-of-flight issues. American also plans to contract with an independent third party to review American's processes for compliance with all future FAA airworthiness directives. This work will ensure that all procedures strictly adhere to the technical elements of every directive so American can avoid this type of schedule disruption in the future. Customers who were scheduled on a flight that was canceled may request a full refund or apply the value of their ticket toward future travel on American Airlines. Additionally, customers scheduled to travel on any MD-80 flight April 8-13, even if their flight has not been canceled, may rebook without a change fee to any AA flight with availability in the same cabin as long as their travel begins by April 17. Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, including Brazil, Europe and Asia. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. * * * 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. BNP PARIBAS: Inks Deal With Diebold & Banca Nazionale del Lavoro ---------------------------------------------------------------- Diebold, Incorporated has reported a deal with Banca Nazionale del Lavoro -- part of the Banque Nationale de Paris and Paribas Group -- to supply 143 automated teller machines with deposit automation capability at the bank's branches throughout Italy. The new ATMs, which are able to accept bulk check and cash deposits, will help Banca Nazionale del Lavoro improve branch efficiency and provide new services for its customers. The agreement was announced in Paris at Diebold's annual European customer conference. Diebold is supplying Banca Nazionale del Lavoro with Opteva(R) 720 and 760 ATMs that will be deployed by the bank during the second quarter of 2008. The fully automated Opteva terminals represent the next generation of ATMs for the financial sector. The benefit for the customer is that they are able to carry out transactions without entering the branch; at the same time, banks benefit from being able to focus on higher value services, given that less time will now be spent on simple deposit transactions. Diebold vice president and general manager for South Europe, Danilo Rivalta said, "Deposit automation is key to the branch transformation we are seeing in the retail banking industry, and Diebold is well-positioned to play a valuable role in this process." This latest announcement represents the next phase of a long- term strategic relationship between Diebold and Banca Nazionale del Lavoro. Previously, Diebold worked with the bank to introduce the Agilis Power(R) software package, enabling the bank to centrally manage approximately 1,000 Web-based ATMs from three different providers. "This recent success is a very important one for Diebold," Mr. Rivalta said. "BNL's decision to choose our deposit automation ATMs acts as a testament to the quality of both the products and services we provide." About Diebold Inc. Diebold, Incorporated -- http://www.diebold.com-- is a global leader in providing integrated self-service delivery and security systems and services. The company employs more than 17,000 associates with representation in nearly 90 countries worldwide and is headquartered in Canton, Ohio, USA. Diebold reported revenue of US$2.9 billion in 2006 and is publicly traded on the New York Stock Exchange under the symbol 'DBD.' About Banca Nazionale del Lavoro Banca Nazionale del Lavoro SpA is an Italian banking firm. Founded in 1913 as Istituto di Credito per la Cooperazione, it was nationalized in 1929. It was re-privatized and listed on the Milan Stock Exchange in 1998, before being acquired by French banking group BNP Paribas in 2006. It is Italy's sixth largest bank. Banca Nazionale del Lavoro began Argentinian operations in 1960, ultimately opening 91 branches, before selling its operation there to HSBC Bank Argentina in 2006. About BNP Paribas Headquartered in Paris, France, BNP Paribas -- http://www.bnpparibas.com/-- is one of the main banks in Europe and France created through the merger of Banque Nationale de Paris and Paribas. Banco BNP Paribas Brasil SA is a subsidiary of BNP Paribas in Sao Paulo, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2008, Moody's Investors Service has upgraded BNP Paribas'Series 430 notes to Ba2 from B2 by and Series 458 notes to Ba2 from B3. Both notes are credit-linked to Brazil. BR MALLS: Plans Commercial Expansion With CR2 Empreendimentos ------------------------------------------------------------- BR Malls Participacoes S.A. and CR2 Empreendimentos Imobiliarios S.A. have announced their intention to acquire the land bank attached to Shopping Plaza Niteroi with the purpose of expanding the shopping mall and constructing a commercial tower. The expansion should add approximately 10,000 square meters to BR Malls' owned GLA. In accordance with the memorandum of understanding signed on this date, BR Malls will be responsible for 100% of the area allocated for the expansion of Shopping Plaza Niteroi and CR2 for 100% of the commercial building. Headquartered in Rio de Janeiro, Brazil, BR Malls is the largest integrated shopping mall company in Brazil with a portfolio of 30 malls, representing 894.3 thousand m2 in total Gross Leasable Area (GLA) and 372.6 thousand m2 in owned GLA. BR Malls is also Brazil's largest shopping mall service provider, managing and leasing 29 malls. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to BR Malls International Finance Ltd.'s forthcoming perpetual notes. It is a wholly owned subsidiary of Brazil-based shopping mall company BR Malls Participacoes S.A. (BR Malls; BB-/Stable/--). BR Malls and its direct subsidiaries unconditionally guarantee the perpetual notes. DELPHI CORP: Moody's Withdraws Low-B Prospective Debt Ratings ------------------------------------------------------------- Moody's Investors Service withdrawn Delphi Corporation's prospective debt ratings for its emergence financing. Although Delphi was successful in arranging commitments for its first lien term loans of US$1.7 billion, a first lien revolving credit of US$1.6 billion and General Motors Corporation and a GM affiliate agreed to accept up to US$2.825 billion of second lien term debt, equity participants in the financing structure have filed a notice of termination on their earlier undertaking to provide US$2.55 billion of capital. The absence of equity funding terminates Delphi's plans to emerge from bankruptcy by April 4, 2008. Delphi may need to renegotiate multiple agreements with other parties as well as seek new investors to proceed with a fresh emergence plan. Significant agreements with the Internal Revenue Service and the Pension Benefit Guaranty Corporation will have to be extended. In addition, the company may need to revisit the maturity of its current Debtor in Possession financing which is set to expire at the end of June 2008. Material agreements with its domestic workforce are not affected by developments on the emergence financing. Ratings being withdrawn are those listed in Moody's earlier releases which were: Delphi Corporation -- Corporate Family Rating, (P)B2 -- Probability of Default, (P)B2 -- Outlook, Stable -- US$1,500 million first lien term loan, (P)Ba2 (LGD-2, 17%) -- US$2,825 million second lien term loan, (P)B2 (LGD-4, 52%) -- Speculative Grade Liquidity rating, SGL-2 -- Delphi Holdings Luxembourg S.ar.l -- equivalent of US$200 million first lien term loan, guaranteed by Delphi Corporation, (P)Ba2 (LGD-2, 17%) Moody's ratings had been assigned on a prospective basis and assumed a full subscription to Delphi's proposed debt and equity financing as well as receiving bankruptcy court affirmation of an effective date of emergence. As those events have not occurred, the ratings have been withdrawn. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. DRESSER-RAND GROUP: Solid Performance Cues S&P's Rating Upgrades ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit ratings on Houston-based capital equipment provider Dresser-Rand Group Inc. to 'BB' from 'BB-'. The outlook is stable. In addition, S&P raised the issue rating on the senior secured revolving credit facility to 'BBB-' from 'BB+' and left the recovery rating unchanged at '1'. S&P also raised the issue rating on the subordinated notes to 'BB-' from 'B+'. The recovery rating on this debt remains at '5'. "The ratings upgrade is driven by Dresser-Rand's solid operating performance, which meaningfully improved credit measures over the past year," said Standard & Poor's credit analyst Aniki Saha-Yannopoulos. In addition, favorable market conditions demonstrated by the growing margins of the new units, combined with strong aftermarket service margins, aid performance over the near term. Additional factors were the company's ability to generate free cash flow and voluntary debt repayment through 2007. The stable outlook reflects S&P's expectation that Dresser-Rand will maintain its improved operating performance and continue to generate free cash flow. Headquartered in Houston, Texas, Dresser-Rand Group Inc. (NYSE: DRC) -- http://www.dresser-rand.com/-- supplies rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries. The company operates manufacturing facilities in the United States, France, Germany, Norway, India, and Brazil, and maintains a network of 26 service and support centers covering more than 140 countries. GOL LINHAS: VRG Suspends International Routes to Focus on LatAm --------------------------------------------------------------- GOL Linhas Aereas Inteligentes S.A., the parent company of Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas Aereas S.A., disclosed that VRG Linhas is restructuring its international routes, focusing on better adapting to market conditions, increasing its presence in the domestic and South American markets and concentrating efforts on routes where it maintains competitive advantages. Operating costs in the highly competitive international market have increased substantially with persistent increases in oil prices, which recently hit a record high of US$112 per barrel. The cost of fuel has been impacted by the prices of WTI and Gulf Coast Jet, which increased on average 68 and 61 percent, respectively, in the first quarter of 2008 compared to first quarter 2007. Fuel currently represents nearly 40 percent of VRG's operating costs. The company's focus is to expand its route network in Brazil and South America by maintaining a lean cost structure and increasing revenues. An important step in this plan was taken in March, with the introduction VRG's new domestic flight network. After several changes to the international route network to focus on South American destinations, VRG Linhas will continue to offer daily flights to Bogota, Buenos Aires, Caracas and Santiago. To this end, VRG Linhas will suspend flights to several international destinations over the next two months. Flights to Mexico City will be suspended on May 11, flights to Madrid on May 12 and operations to Paris will cease on June 9. This strategic decision was a responsible and calculated response based on careful analysis of external factors and competitive attributes of the services offered by VRG that are affecting consolidation of the company's performance in these markets. VRG Linhas is committed to providing assistance to those customers who have already purchased one-way or return tickets to suspended destinations after the dates announced and will maintain open, transparent communications to address any customer concerns. Alternative flight information will be available on the company's website, http://www.varig.com.br. For customers with questions, they may call telephone number: 0800-728-7787 (toll-free). The service will be available 24 hours a day, seven days a week. Customers who prefer a refund should work directly with their travel agent, while customers who purchased tickets directly from VRG can request a refund by e-mail to: reembolso.central@varig.com. About GOL Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) -- http://www.voegol.com.br-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As reported in the Troubled Company Reporter-Latin America on July 25, 2007, Fitch Ratings affirmed the 'BB+' foreign and local currency issuer default ratings of Gol Linhas Aereas Inteligentes S.A. Fitch also affirmed the outstanding US$200 million perpetual bonds and US$200 million of senior notes due 2017 at 'BB+' as well as the company's 'AA-' (bra) national scale rating. Fitch said the rating outlook is stable. HERCULES INC: S&P Upgrades Ratings to 'BB+' on Improved Profile --------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on Hercules Inc., including the corporate credit rating to 'BB+' from 'BB'. The outlook is stable. The upgrades reflect the company's improved financial profile and the likelihood that cash flow protection measures and other key ratios will be maintained at levels that are in line with S&P's expectations for the revised ratings. "Hercules' strengthened financial metrics have benefited in part from management's commitment to improve credit quality, as evidenced by steady debt reduction," said Standard & Poor's credit analyst Wesley E. Chinn. The ratings reflect Wilmington, Delaware-based Hercules' slightly aggressive, albeit much reduced, debt balance; low- growth, very competitive pulp and paper chemicals markets; and some exposure to asbestos-related liabilities. These negatives are partially offset by Hercules' satisfactory business profile--generating annual revenues of about US$2 billion--in the specialty chemical sector, a long track record of good operating margins, and strengthening cash flow protection measures. Hercules derives roughly 60% of its consolidated operating earnings from the Aqualon group, a leading producer of water- soluble polymers. Diverse end markets include water-based paints and coatings, construction materials, personal care, pharmaceutical, food, and oil and gas drilling. A positive for business fundamentals is a strong global presence, as more than 60% of Aqualon's sales come from outside the U.S. Hercules Inc. (NYSE:HPC) -- http://www.herc.com/-- manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets. The company has its regional headquarters in China and Switzerland, and a production facility in Brazil. ========================== C A Y M A N I S L A N D S ========================== BLACK JAGUAR: Proofs of Claim Filing Deadline is April 17 --------------------------------------------------------- Black Jaguar Holdings Limited's creditors have until April 17, 2008, to prove their claims to Stuart K. Sybersma and Ian A.N. Wight, 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. Black Jaguar'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: Stuart K. Sybersma and Ian A.N. Wight Attn: Jessica Turnbull Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Telephone: (345) 949 7500 Fax: (345) 949 8258 BLUE STREAM: Proofs of Claim Filing is Until April 17 ----------------------------------------------------- Blue Stream Holdings Limited's creditors have until April 17, 2008, to prove their claims to Stuart K. Sybersma and Ian A.N. Wight, 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. Blue Stream'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: Stuart K. Sybersma and Ian A.N. Wight Attn: Jessica Turnbull Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Telephone: (345) 949 7500 Fax: (345) 949 8258 CPS CAYMAN: S&P Assigns BB Rating on Class B Deferrable Interest ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its ratings to CPS Cayman Residual Trust 2008-A's US$34.14 million asset-backed notes series 2008-A. The ratings reflect: -- The credit support consisting of subordination and excess spread, some of which will be used to build overcollateralization to 3.50% of the current receivables balance. The remainder will be used to cover losses and make required distributions. Also, on any payment date after the class A notes have been paid in full, the noteholders may benefit from funds that are released from a reserve account and deposited into the collection account; -- S&P's view as to the likelihood of receiving ultimate, but not timely, payment of interest and principal; -- The credit quality of the underlying pool of subprime automobile loans; and -- The sound legal structure. Ratings Assigned: CPS Cayman Residual Trust 2008-A Class Rating Amount (US$ million) ------------------------------------------------------------ B deferrable interest BBB 19.243 C deferrable interest BB 14.897 D NR 31.810 The rating assigned to the class B and C notes represents S&P's view as to the likelihood of receiving ultimate payment of principal and interest on those notes. Cayman Residual Trust is a trust organized under the laws of the Cayman Islands. CRESCENT BROTHERS: Proofs of Claim Filing Deadline is April 17 -------------------------------------------------------------- Crescent Brothers Investments, Ltd.'s creditors have until April 17, 2008, to prove their claims to Linburgh Martin and Jeff Arkley, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Crescent Brothers' shareholder decided on Jan. 30, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Linburgh Martin and Jeff Arkley Attn: Neil Gray Close Brothers (Cayman) Limited Fourth Floor, Harbor Place P.O. Box 1034, Grand Cayman Cayman Islands Telephone: (345) 949 8455 Fax: (345) 949 8499 DAMSEL FUNDING: Proofs of Claim Filing is Until April 17 -------------------------------------------------------- Damsel Funding Ltd.'s creditors have until April 17, 2008, to prove their claims to Giles Kerley and Chris Watler, 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. Damsel Funding's shareholders agreed on Feb. 29, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Giles Kerley and Chris Watler Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands JOY HOLDINGS: Proofs of Claim Filing is Until April 17 ------------------------------------------------------ Joy Holdings Limited's creditors have until April 17, 2008, to prove their claims to Royhaven Secretaries Limited, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Joy Holdings' 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: Royhaven Secretaries Limited Attn: Sharon Meghoo Coutts House, 1446 West Bay Road P.O. Box 707, Grand Cayman KY1-1107 Cayman Islands Telephone: 945-4777 Fax: 945-4799 KICAP MASTER: Sets Final Shareholders Meeting for April 17 ---------------------------------------------------------- KiCap Master Fund Limited will hold its final shareholders' meeting on April 17, 2008, at 3:00 p.m. at Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. KiCap Master's shareholders agreed on March 6, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093, Boundary Hall Cricket Square, Grand Cayman KY1-1102 Cayman Islands KICAP NETWORK: Will Hold Final Shareholders Meeting on April 17 --------------------------------------------------------------- KiCap Network Fund Limited will hold its final shareholders' meeting on April 17, 2008, at 3:00 p.m. at Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. KiCap Network's shareholders agreed on March 6, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard Gordon Maples Finance Limited P.O. Box 1093, Boundary Hall Cricket Square, Grand Cayman KY1-1102 Cayman Islands OTTIMO FUNDING: Proofs of Claim Filing Deadline is April 17 ----------------------------------------------------------- Ottimo Funding Ltd.'s creditors have until April 17, 2008, to prove their claims to Stuart K. Sybersma and Ian A.N. Wight, 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. Ottimo Funding'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: Stuart K. Sybersma and Ian A.N. Wight Attn: Jessica Turnbull Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Telephone: (345) 949 7500 Fax: (345) 949 8258 POWRS 1997-1: Will Hold Final Shareholders on April 17 ------------------------------------------------------ POWRS 1997-1. will hold its final shareholders' meeting on April 17, 2008, at Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the winding-up process; and 2) giving explanation thereof. POWRS 1997-1.'s shareholders agreed on March 6, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Bobby Toor Maples Finance Limited P.O. Box 1093, George Town Grand Cayman, Cayman Islands THE CONTRA FUND: Sets Final Shareholders Meeting for April 17 ------------------------------------------------------------- The Contra Fund Limited will hold its final shareholders' meeting on April 17, 2008, at 11:00 a.m. at the registered office of the company. These matters will be taken up during the meeting: 1) approval of the conduct of the liquidation by liquidators S.L.C. Whicker and K.D. Blake; 2) approval of the quantum of the liquidators’ remuneration, that being fixed by the time properly spent by the liquidators and their staff; 3) accounting of the wind-up process; and 4) authorizing the liquidators to retain the records of the company and of the liquidators for a period of five years from the dissolution of the company, after which they may be destroyed. The Contra Fund's shareholders agreed on March 17, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: K.D. Blake Attn: Camele Burke P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands Telephone: 345-914-4325 / 345-949-4800 Fax: 345-949-7164 =============== C O L O M B I A =============== ECOPETROL: Closes Propilco Acquisition Deal ------------------------------------------- Ecopetrol has closed the deal to acquire Propilco for US$690 million. Business News Americas relates that Propilco produces some 380,000 tons per year of polypropylene. Ecopetrol told BNamericas that expansion plans would increase its capacity to 500,000 tons per year in 2010. According to BNamericas, Ecopetrol gets 30% of its raw material from its refineries in Cartagena and Barrancabermeja and that supply could increase in the coming years. Ecopetrol told BNamericas that the Propilco acquisition deal is important to its long-term strategy of exporting crude and adding value to its oil with expanded refining and petrochemical operations. About Propilco Propilco is the largest petrochemical company in Colombia and is the biggest resin producer in the Andean region, Central America and the Caribbean. It is the main supplier of polypropylene in Colombia. Propilco was previously owned by the Stanford Group's Andean Chemicals and Valorem Group's PrimeFinanzas and PrimeOther. About Ecopetrol Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America 's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. Ecopetrol produced 385,000 barrels a day of oil and gas in 2006 and has 330,000 barrels a day of refining capacity, according to the company's Web site. In 2005 it produced about 60 percent of Colombia 's daily output. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A. 's foreign and local currency issuer default ratings at 'BB+' and 'BBB-', respectively. GERDAU SA: Regulator Endorses Firm's Plan to Buy Comsisa Shares --------------------------------------------------------------- Colombian industry and trade regulator Superintendencia de Industria y Comercio has endorsed Gerdau SA's plan to acquire shares in Compania Siderurgica de la Sabana or Comsisa. Business News Americas relates that a Comsisa official said last year that the firm was in talks with Gerdau to sell the plant that manufactures rods and bars that makes up half of Comsisa. BNamericas relates that the regulator also authorized Gerdau to buy shares in Aceros Boyaca-Procesos in Sogamoso that produces almost 80,000 tons per year. According to BNamericas, the Aceros Boyaca-Procesos consortium owns a 50% stake in Comsisa. The official commented to BNamericas, "We are also forming a strategic alliance in which Gerdau has promised to supply bars to our sales branch, Codiacero." Gerdau's Diaco will be increasing production in Colombia to almost 780,000 tons of bars produced at Comsisa, BNamericas states. Headquartered in Porto Alegre, Brazil, Gerdau SA -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 26, 2007, Moody's Investors Service affirmed Gerdau S.A.'s Ba1 corporate family rating and stable outlook. =================================== D O M I N I C A N R E P U B L I C =================================== TRAILER BRIDGE: S&P Holds B- Long-Term Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' long-term corporate credit rating on Trailer Bridge Inc. At the same time, S&P affirmed the 'B-' senior secured debt rating, the same as the corporate credit rating, while leaving the recovery rating unchanged at '3', indicating expectations of a meaningful (50%-70%) recovery in the event of a payment default. The rating outlook remains stable. "Ratings on Trailer Bridge reflect the company's highly leveraged financial profile, concentrated end-market demand, and participation in the capital-intensive and competitive shipping industry," said S&P's credit analyst Funmi Afonja. Positive credit factors include a steady demand for ocean cargo shipments of food and other staples by residents of Puerto Rico, and barriers to entry provided by the Jones Act. The company recently announced that the McLean family, beneficial owners of a 47.8% ownership stake in the company, could potentially sell their stake; the timing and structure of the sale remains unknown. For fiscal year ended Dec. 31, 2007, the company's sales were about US$116 million, a modest increase from prior-year sales of US$110 million. EBITDA for 2007 was US$21.7 million, compared with US$12 million the prior year. The difference was due to the company's decision in 2006 to expense about US$12.8 million in dry-docking costs, rather than deferring and amortizing, as is commonly practiced by peers. At Dec. 31, 2007, lease- adjusted debt to capital was 99%, about the same as the prior year, and total debt to EBITDA was 5.6, improved from 10. Credit measures will likely remain weak, and could come under pressure if the slowing United States economy exacerbates already sluggish Puerto Rican economic conditions. Maturing of the new Dominican Republic trade has the potential to benefit revenues and earnings modestly, though performance thus far has been below S&P's expectations. The stable outlook reflects S&P's expectations of modest improvements in operating results and the company's financial profile over the next year. The rating agency could revise the outlook to negative if the improvements fail to materialize because of weak market conditions in Puerto Rico or if rising fuel prices constrain earnings more than anticipated. S&P considers an outlook change to positive less likely over the near to intermediate term. At this time there is no evidence that the potential sale of the McLean family's stake in the company could affect the rating or outlook. However, a transaction that leads to a material change in strategy or financial policy could have outlook or rating implications. Headquartered in Jacksonville, Florida, Trailer Bridge Inc. (NASDAQ: TRBR) -- http://www.trailerbridge.com/-- provides transportation between the continental United States and Puerto Rico, and recently launched service into the Dominican Republic. The company operates a fleet of ocean-going barges, truck tractors, containers, and chassis. It currently utilizes two roll-on/roll-off vessels and three triplestack box carriers to transport freight between Jacksonville, Florida, San Juan, Puerto Rico, and the Dominican Republic. The new Dominican service allows the company to balance its north- and south-bound volumes somewhat and provides limited additional market diversity. ============= J A M A I C A ============= CASH PLUS: Financial Woes May Affect Jamaican Economy ----------------------------------------------------- Cash Plus Limited's financial problems could have critical consequences on Jamaica's economy, Radio Jamaica reports. In April this year, the Supreme Court of Jamaica placed Cash Plus into receivership. Cash Plus admitted that it wouldn't be able to pay its lenders until April 14. The firm has 40,000 lenders with loans totaling J$4 billion. Cash Plus was unable to repay its investors. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. Cash Plus' woes might trigger economic panic, Radio Jamaica says, citing economist Dr. Davidson Daway. Dr. Daway commented to Radio Jamaica, "If people cannot afford to pay their loan or their outstanding debt, they won't be able to spend on other commodities in terms of education and so on. They would have to reach out to get those things which means it is going to create a greater loan dependency or it may even create what we call an economic panic and there are quite a few people who are involved." Radio Jamaica notes that Dr. Daway said Cash Plus' problems have implications for the financial sector. Dr. Daway told Radio Jamaica, "You're going to have a situation where these people will be reluctant to put their money into any financial agency for fear that the same thing will happen to them. So we are going to have what we call the 'mattress protection effect' where they put the money under the mattress rather than into the financial environment so these are the kinds of things that can really affect the economy." Cash Plus Limited is an investment club in Jamaica. It collapsed in 2007 after the Financial Services Commission moved to regulate its operations. The company is a financial arm of the Cash Plus Group of Companies, a business conglomerate established in 2002 by mortgage banker Carlos Hill. The company offers its participants the opportunity to participate in the group's ventures which include mergers and numerous acquisitions. CASH PLUS: Police Raid Carlos Hill's Residence ---------------------------------------------- Radio Jamaica reports that police officers from the Mobile Reserve, Flying Squad, and the Organized Crime Division have raided the house of Cash Plus Limited's President Carlos Hill at 68 Norbrook Drive in St. Andrew in response to complaints from investors who accused the firm of fraud, Radio Jamaica reports. According to the Constabulary Communication Network, Cash Plus investors complained that cheques received from the firm bounced. Radio Jamaica says that the investors are being urged to submit complaints formally using a form available on the Ministry of National Security Web site at http://www.mns.org.jm Claims of fraud must go through the Web site and it won't be accepting any fraud reports by any other means, Radio Jamaica says, citing CCN. According to Radio Jamaica, the police and officials from the Financial Investigation Division searched the premises and several boxes were brought in to carry away documents confiscated at the house. Five vehicles including three high end SUVs from the premises were also removed. The report says that a representative from a security firm showed up at the scene claiming to act on behalf of Mr. Hill and saying that items not belonging to Mr. Hill could be removed from the residence. Radio Jamaica notes that Mr. Hill was taken to the OCID offices where he will be formally interrogated. The police also raided other residential and commercial properties of some of Mr. Hill's associates. Two members of Mr. Hill's management team were also taken to the OCID offices, Radio Jamaica relates. Cash Plus investors showed up at the firm's New Kingston offices as news of the raid circulated, according to Radio Jamaica. An investor told the RJR News Center he heard that Cash Plus wouldn't be able to honor its earlier commitment to pay investors at the end of the month. The investor commented to Radio Jamaica, "We need our money and (that is what) I would like the government and Mr. Hill to know. Blood or sweat or whatever it cost, we need our money. I invested my live savings." Radio Jamaica reports that branches of the Premier and Island Life Plaza were closed, while employees at the 67 Slipe Road Offices of Cash Plus are waiting for word from company officials as to what will happen to them. As reported in the Troubled Company Reporter-Latin America on April 11, 2008, Cash Plus hasn't paid the March salaries of workers at its phone card distribution center. The workers complained that the management hasn't told them when they will be paid. A worker said that Cash Plus should have paid them on March 25, 2008, before it was placed into receivership. Managers at Cash Plus' phone card distribution center told Radio Jamaica that the workers are still on the job. Cash Plus Limited is an investment club in Jamaica. It collapsed in 2007 after the Financial Services Commission moved to regulate its operations. The company is a financial arm of the Cash Plus Group of Companies, a business conglomerate established in 2002 by mortgage banker Carlos Hill. The company offers its participants the opportunity to participate in the group's ventures which include mergers and numerous acquisitions. In April this year, the Supreme Court of Jamaica placed Cash Plus into receivership. Cash Plus admitted that it wouldn't be able to pay its lenders until April 14. The firm has 40,000 lenders with loans totaling J$4 billion. Cash Plus was unable to repay its investors. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. =========== M E X I C O =========== CLEAR CHANNEL: Extends Tender Offers Expiration for Senior Notes ---------------------------------------------------------------- In connection with Clear Channel Communications, Inc.'s tender offer for its outstanding 7.65% Senior Notes due 2010 (CUSIP No. 184502AK8) and Clear Channel's subsidiary AMFM Operating Inc.'s tender offer for its outstanding 8% Senior Notes due 2008 (CUSIP No. 158916AL0), Clear Channel extended the date on which the tender offers are scheduled to expire from 8:00 a.m. New York City time on April 11, 2008 to 8:00 a.m. New York City time on April 18, 2008 and the consent payment deadline for the Notes from 8:00 a.m. New York City time on April 11, 2008 to 8:00 a.m. New York City time on April 18, 2008. The Offer Expiration Date and the Consent Payment Deadline are subject to extension by Clear Channel, with respect to the CCU Notes, and AMFM, with respect to the AMFM Notes, in their sole discretion. The completion of the tender offers and consent solicitations for the Notes is conditioned upon the satisfaction or waiver of all of the conditions precedent to the Agreement and Plan of Merger by and among Clear Channel, CC Media Holdings, Inc., B Triple Crown Finco, LLC, T Triple Crown Finco, LLC and BT Triple Crown Merger Co., Inc., dated Nov. 16, 2006, as amended by Amendment No. 1, dated April 18, 2007, and Amendment No. 2, dated May 17, 2007 and the closing of the merger contemplated by the Merger Agreement. The closing of the Merger has not occurred. On March 26, 2008, Clear Channel, joined by CC Media Holdings, Inc., filed a lawsuit in the Texas State Court in Bexar County, Texas, against Citigroup, Deutsche Bank, Morgan Stanley, Credit Suisse, The Royal Bank of Scotland, and Wachovia, the banks who had committed to provide the debt financing for the Merger. Clear Channel intends to complete the tender offers and consent solicitations for the CCU Notes, and AMFM intends to complete the tender offers and consent solicitations for the AMFM Notes, upon consummation of the Merger. Clear Channel, on Jan. 2, 2008, received, pursuant to its tender offer and consent solicitation for the CCU Notes, the requisite consents to adopt the proposed amendments to the CCU Notes and the indenture governing the CCU Notes applicable to the CCU Notes, and that AMFM had received, pursuant to its previously announced tender offer and consent solicitation for the AMFM Notes, the requisite consents to adopt the proposed amendments to the AMFM Notes and the indenture governing the AMFM Notes. As of April 9, 2008, approximately 87% of the AMFM Notes have been validly tendered and not withdrawn and approximately 98% of the CCU Notes have been validly tendered and not withdrawn. The Clear Channel tender offer and consent solicitation is being made pursuant to the terms and conditions set forth in the Clear Channel Offer to Purchase and Consent Solicitation Statement for the CCU Notes dated Dec. 17, 2007, and the related Letter of Transmittal and Consent. The AMFM tender offer and consent solicitation is being made pursuant to the terms and conditions set forth in the AMFM Offer to Purchase and Consent Solicitation Statement for the AMFM Notes dated Dec. 17, 2007, and the related Letter of Transmittal and Consent. Clear Channel has retained Citi to act as the lead dealer manager for the tender offers and lead solicitation agent for the consent solicitations and Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc. to act as co-dealer managers for the tender offers and co-solicitation agents for the consent solicitations. Global Bondholder Services Corporation is the Information Agent for the tender offers and the consent solicitations. Questions regarding the tender offers should be directed to Citi at (800) 558-3745 (toll-free) or (212) 723-6106 (collect). Requests for documentation should be directed to Global Bondholder Services Corporation at (212) 430-3774 (for banks and brokers only) or (866) 924-2200 (for all others toll- free). Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. As of Dec. 31, 2007, it owned 717 core radio stations, 288 non-core radio stations which are being marketed for sale and a leading national radio network operating in the United States. * * * As reported on March 28, 2008, Standard & Poor's Ratings Services said its ratings on Clear Channel Communications Inc., including the 'B+' corporate credit rating, remain on CreditWatch with negative implications. Fitch Ratings stated that in line with previous guidance, Clear Channel Communications' 'BB-' Issuer Default Rating and Senior Unsecured Ratings would remain in place if the going-private transaction is not completed. Moody's stated that assuming the transaction is completed as currently contemplated, Clear Channel will likely be assigned a Corporate Family Rating of B2 and the rating on the existing senior notes is likely to be notched down to Caa1 based on their expected subordination to the new senior secured debt facilities and the new senior notes. DISTRIBUTED ENERGY: Appoints UHY LLP as New Independent Auditors ---------------------------------------------------------------- On April 2, 2008, the Audit Committee of the Board of Directors of Distributed Energy Systems Corp. dismissed PricewaterhouseCoopers LLP as the company's independent registered public accounting firm. The company informed PwC of this decision on April 3, 2008. On the same day, the company's Audit Committee appointed UHY LLP as its new independent registered public accounting firm, to perform auditing services commencing with the fiscal year ending Dec. 31, 2008. PwC's reports with respect to the company's financial statements for the fiscal years ended Dec. 31, 2006, and 2007, did not contain an adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle, except that such reports included an explanatory paragraph raising substantial doubt about the company's ability to continue as a going concern. During the company's fiscal years ended Dec. 31, 2006, and 2007, and through April 2, 2008, there have been no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure., which disagreements if not resolved to the satisfaction of PwC would have caused them to make reference thereto in their reports on the financial statements for such years. About Distributed Energy Based in Wallingford, Connecticut, Distributed Energy Systems Corp. (NasdaqCM: DESC) -- http://www.distributed-energy.com/-- provides products and services for distributed, or on-site, power generation and storage. The company has operations in Mexico. At Dec. 31, 2007, the company's consolidated balance sheet showed US$41,750,604 in total assets, US$18,827,203 in total liabilities, and US$22,923,401 in total stockholders' equity. Going Concern Doubt As reported in the Troubled Company Reporter on April 1, 2008, Pricewaterhousecoopers LLP expressed substantial doubt about Distributed Energy Systems Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm reported that the company has incurred significant recurring operating losses and cash outflows from operations. FEDERAL-MOGUL: Panel's Special Counsel Seeks US$4.1 Mil. Payment ---------------------------------------------------------------- Ashurst LLP seeks payment of US$4,030,507 for its professional fees covering the period November 2, 2001, through July 31, 2006, and reimbursement of US$81,942 for the firm's actual and necessary expenses incurred during the same period. The Official Committee of Unsecured Creditors retained Ashurst as its special counsel in the Federal Mogul bankruptcy cases. Among other services, Ashurst provided the Creditors Committee with legal advice: (1) with respect to English Administration proceedings and interrelationship between U.K. Administration and the Chapter 11 proceedings; (2) on the manner in which the commercial solution achieved in respect of the Debtors' U.S. Chapter 11 proceedings could be implemented in the U.K. under schemes of arrangement and company voluntary arrangements; (3) on English law issues relating to matters like the ability potential asbestos creditors to claim in English schemes of arrangement and company voluntary arrangements; and (4) on drafts of the Fourth Amended Plan, schemes of arrangement and voluntary arrangements. Federal-Mogul Corporation -- http://www.federal-mogul.com/-- (OTCBB: FDMLQ) is a global supplier, serving the world's foremost original equipment manufacturers of automotive, light commercial, heavy-duty, agricultural, marine, rail, off-road and industrial vehicles, as well as the worldwide aftermarket. Founded in Detroit in 1899, the company is headquartered in Southfield, Michigan, and employs 45,000 people in 35 countries. Aside from the U.S., Federal-Mogul also has operations in other locations which includes, among others, Mexico, Malaysia, Australia, China, India, Japan, Korea, and Thailand. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$10.15 billion in assets and US$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Fourth Amended Plan was confirmed by the Bankruptcy Court on Nov. 8, 2007, and affirmed by the District Court on Nov. 14. Federal-Mogul emerged from Chapter 11 on December 27, 2007. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 10, 2008, Moody's Investors Service confirmed the ratings of the reorganized Federal-Mogul Corporation -- Corporate Family Rating, Ba3; Probability of Default Rating, Ba3; and senior secured bank credit facilities, Ba2. The outlook is stable. The financing for the company's emergence from Chapter 11 bankruptcy protection has been funded in line with the structure originally rated by Moody's in a press release dated Nov. 28, 2007. As reported in the Troubled Company Reporter on Jan. 7, 2008, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to Southfield, Michigan-based Federal-Mogul Corp. following the company's emergence from Chapter 11 on Dec. 27, 2007. S&P said the outlook is stable. KRISPY KREME: Lenders Approve Modifications in Credit Facilities ---------------------------------------------------------------- Krispy Kreme Doughnuts Inc. obtained amendments to the company's secured credit facilities which, among other things, relax certain financial covenants. Those covenants were scheduled to become more stringent during fiscal 2009. The amendments also provide that the interest rate on the loans outstanding under the facilities will increase from LIBOR plus 3.50% to LIBOR plus 5.50%, with a minimum LIBOR rate of 3.25%, and fees on letters of credit outstanding under the facilities will increase from 3.75% to 5.75%. As of Feb. 3, 2008, the outstanding balance of the term loan was US$76.1 million and outstanding letters of credit were US$20.3 million. There were no amounts drawn under the revolving facility, which was reduced from US$50 million to US$30 million. The term loan balance reflects a prepayment of US$10.9 million made on February 1 in connection with the completion of the sale of the company's mix manufacturing and distribution facility in Effingham, Illinois. US$160,000,000 Credit Facility Krispy Kreme Doughnut Corporation, a wholly owned subsidiary of Krispy Kreme Doughnuts, Inc., entered into a US$160 million credit agreement, dated as of February 16, 2007, with Credit Suisse, Cayman Islands Branch, as administrative agent, collateral agent, issuing lender and swingline lender, and the lenders party. The credit facility comprises a US$110 million term loan and a US$50 million revolving loan. The term loan amortizes in quarterly installments of US$275,000 beginning in April 2007 with a final payment of the remaining term loan balance due in February 2014. The revolving facility has a six year term ending in February 2013. The revolving credit facility provides that up to US$30 million of the facility may be used by KKDC to obtain letters of credit. The new facility may be retired without penalty at any time. Proceeds of the term loan were used to repay the approximately US$107 million outstanding balance under KKDC's prior credit facility -- which had been arranged by Credit Suisse, Cayman Island Branch -- and to pay fees and expenses related to the new financing and the retirement of the prior facility. Loans under the new credit agreement bear interest at LIBOR plus 3.00% -- subject to a stepdown based on credit ratings. Upon the occurrence of customary events of default set forth in the credit agreement, including payment defaults, breaches of covenants, a change of control and insolvency/bankruptcy events, the administrative agent may and, upon the request of a majority of the lenders, shall, accelerate repayment of the loans. In connection with the credit agreement, Krispy Kreme and its affiliates and subsidiaries that guaranteed the loan obligations, entered into a security agreement with Credit Suisse, Cayman Islands Branch, dated as of February 16, 2007. Under the credit facility, Krispy Kreme Doughnuts Inc. covenants with its lenders not to permit its Consolidated Leverage Ratio to exceed these ratios for any Test Period: Period Ratio ------ ----- 1st Fiscal Quarter of 2008 Fiscal Year 4.50 to 1.00 2nd and 3rd Fiscal Quarters of 2008 Fiscal Year 4.25 to 1.00 4th Fiscal Quarter of 2008 Fiscal Year 4.00 to 1.00 1st First Fiscal Quarter of 2009 Fiscal Year 3.75 to 1.00 2nd, 3rd and 4th Fiscal Quarters of 2009 Fiscal Year 3.50 to 1.00 2010 Fiscal Year 3.25 to 1.00 2011 and 2012 Fiscal Years 3.00 to 1.00 2013 Fiscal Year and Thereafter 2.75 to 1.00 Krispy Kreme Doughnuts Inc. also covenants with its lenders not to permit its Consolidated Interest Coverage Ratio to be less than these ratios for any Test Period: Period Ratio ------ ----- 1st Fiscal Quarter of 2008 Fiscal Year 2.75 to 1.00 2nd and 3rd Fiscal Quarters of 2008 Fiscal Year 3.00 to 1.00 4th Fiscal Quarter of 2008 Fiscal Year 3.25 to 1.00 1st Fiscal Quarter of 2009 Fiscal Year 3.50 to 1.00 2nd and 3rd Fiscal Quarters of 2009 Fiscal Year 3.75 to 1.00 4th Fiscal Quarter of 2009 Fiscal Year 4.00 to 1.00 2010 Fiscal Year 4.25 to 1.00 2011 Fiscal Year and Thereafter 4.50 to 1.00 Krispy Kreme Doughnuts Inc. also covenants with its lenders not to permit the aggregate amount of Capital Expenditures to exceed specific amounts at these periods: Period Amount ------ ------ 2008 Fiscal Year US$15,000,000 2009 Fiscal Year US$17,500,000 2010 Fiscal Year and each Fiscal Year thereafter US$20,000,000 If the aggregate amount of Capital Expenditures for any Fiscal Year would be less than the amount permitted to be made in that Fiscal Year, then 50% of the shortfall will be added to the amount of Capital Expenditures permitted for the immediately succeeding -- but not any other -- Fiscal Year and the amount of Capital Expenditures made during any Fiscal Year will be deemed to have been made first from the amount permitted to be made in that Fiscal Year and last from carryover from the preceding Fiscal Year. A full-text copy of the US$160,000,000 CREDIT AGREEMENT dated as of February 16, 2007, among KRISPY KREME DOUGHNUT CORPORATION, KRISPY KREME DOUGHNUTS, INC., The SUBSIDIARY GUARANTORS, on the one hand; and CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as Administrative Agent, Collateral Agent, Issuing Lender and Swingline Lender; CREDIT SUISSE SECURITIES (USA) LLC, as Sole Bookrunner and Sole Lead Arranger; WELLS FARGO FOOTHILL, INC. and WACHOVIA BANK, NATIONAL ASSOCIATION as Co-Syndication Agents; and CAROLINA FIRST BANK, as Documentation Agent, is available at no charge at: http://ResearchArchives.com/t/s?29f1 About Krispy Kreme Headquartered in Winston-Salem, North Carolina, Krispy Kreme Doughnuts Inc. (NYSE: KKD) -- http://www.krispykreme.com/-- retails doughnuts. There are about 411 Krispy Kreme stores including satellites operating system-wide in 41 U.S. states, Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, the Philippines, the Republic of South Korea, the United Arab Emirates and the United Kingdom. * * * Standard & Poor's placed Krispy Kreme Doughnuts Inc.'s long term foreign and local issuer credit ratings at 'B-' in September 2007. The ratings still hold to date with a negative outlook. LEVI STRAUSS: Feb. 24 Balance Sheet Upside-Down by US$318.87 Mln ---------------------------------------------------------------- Levi Strauss & Co.'s balance sheet at Feb. 24, 2008, showed total assets of US$2,956,586,000 and total liabilities of US$3,275,460,000, resulting to total stockholders' deficit of roughly US$318,874,000. The company's net income was US$97.107 million in the first quarter ended Feb. 24, 2008, compared to net income of US$86.635 million for the same quarter in 2007. The a 12% increase in the net income reflected lower interest expense and a lower tax rate. "Our performance in the first quarter represents a solid start for the year, despite an increasingly difficult retail environment," John Anderson, president and chief executive officer, said. "Our Levi's(R) brand continues to perform well on a global basis, and benefited from continued growth in our emerging Asia Pacific markets and in Europe." "We are cautious given the economic uncertainty in the United States and key markets around the world," Mr. Anderson added. "Nonetheless, we remain focused on product innovation, retail expansion and optimizing our global footprint." The company reported that its board of directors declared a US$50 million cash dividend to common shareholders. In addition, the company reported that on March 25 it redeemed its remaining 12-1/4 % bonds, further reducing long-term debt by US$19 million. "Our solid operating margins and strong cash flows have allowed us to continue to reduce debt, and to invest in our brands and retail expansion," Hans Ploos van Amstel, chief financial officer, said. "We have made significant progress in managing inventory levels. Our priority continues to be cash generation as we work to further support our brands and strengthen our financial position." Liquidity The company ended the first quarter with cash and cash equivalents of US$222 million, an increase of US$66 million from the year ended Nov. 25, 2007. Cash provided by operating activities was US$107 million for the first quarter, compared with US$17 million used for operating activities for the same period in 2007, reflecting lower interest payments and a reduction of cash used for inventory and accounts payable. The company reduced long-term debt by US$18 million in the quarter. Total debt was US$1.95 billion at the end of the first quarter. About Levi Strauss & Co. Headquartered in San Francisco, California, Levi Strauss & Co. -- http://www.levistrauss.com/-- is a branded apparel company. The company designs and markets jeans and jeans-related pants, casual and dress pants, tops, jackets and related accessories for men, women and children under its Levi's, Dockers and Levi Strauss Signature brands in markets around the world. Levi Strauss & Co. distributes its Levi's and Dockers products primarily through chain retailers and department stores in the United States, and through department stores, specialty retailers and franchised stores abroad. The company employs a staff of approximately 10,000 worldwide, including approximately 1,010 at the company's San Francisco, California headquarters. Levi Strauss Europe is headquartered in Brussels, Belgium, while Levi's Asia Pacific division is based in Singapore. Levi's has operations in Brazil, Mexico, Chile and Peru. * * * Moody's Investors Service placed Levi Strauss & Co.'s long term corporate family and probability of default ratings at 'B1' in March 2007. The ratings still holds to date with a positive outlook. MEGA BRAND: Moody's Chips Ratings After Release of 2007 Results --------------------------------------------------------------- Moody's lowered Mega Brand Inc.'s ratings to B2 from B1 after the company posted its full year results for 2007. The rating remains on review for possible further downgrade. The SGL 3 was affirmed. Moody's said that the financial flexibility of the company had deteriorated significantly in 2007 due both to lower than expected sales of Magnetix products and new special charges related to a new recall and special items. The weak results led to the downgrade of the CFR to B2. Debt to EBITDA jumped to over 5.5 times as of year-end 2007 from 3.9 times in 2006 (per Moody's FM) and cash flow was negative. The SGL 3 was maintained largely because of the provisions under the amended credit facility which provide for greater flexibility both on covenants and for the proposed asset sales. A successful sale of the stationery and activities businesses could significantly improve credit metrics, liquidity and could result in a rating confirmation or even put positive pressure on the rating. Nevertheless, the review for downgrade continues both until such a sale materializes, and pending clearer understanding of post- sale core toy business momentum and management's future financial targets. Failure to sell the businesses combined with ongoing softness in core toy businesses could lead to further downgrade. Although the potential sale of the stationery and activities business will allow Mega to focus on its core toy brands and to reduce existing debt, which Moody's would view positively, Mega would also become a much smaller, less diversified, and more seasonal company with greater retailer concentration. Furthermore, management's plans for its future capital structure would also need to be considered. Other key concerns include: * Questions around consumer acceptance of the new generation of Magnetix products after the damage suffered over the last years due to product safety issues and the resulting recalls and lawsuits. * Ongoing litigation, and issues around the company's self insurance for product liability for Magnetix products manufactured before May 1, 2006 and for incidents occurring after Dec. 1, 2006 * The resolution of and likely timing and payout of the disputed Rose Art earn-out payment. These ratings were downgraded and remain on review for downgrade: MEGA Brands, Inc. -- Corporate Family Rating to B2 from B1; -- Probability of Default to B3 from B2; -- US$120 million 5-year revolving credit facility maturing July 2010 to B1 (LGD 2, 26%) from Ba3 (LGD 2, 26%); -- US$40 million, 5-year term loan A facility to B1 (LGD-2, 26%) from Ba3 (LGD 2, 26%) MEGA Brands Finco -- US$260 million 7-year term loan B facility to B1 (LGD 2, 26%) from Ba3 (LGD 2, 26%) MEGA Brands Inc. (TSE: MB) -- http://www.megabrands.com/-- designs, manufactures and markets high quality toys and stationery products. Headquartered in Montreal, the company has approximately 4,500 employees with offices, manufacturing facilities or distribution centers in 14 countries, including Belgium, United Kingdom, Germany, France, Spain, Mexico, and Australia. The Corporation's products are sold in over 100 countries and had sales of $525 million in 2007. * MEXICO: S&P Publishes Industry Report on Mortgage Companies ------------------------------------------------------------- Market sentiment has changed dramatically and exhibited two of the industry's clearest vulnerabilities: its reliance on volatile funding sources and its limitations to adequately manage market, funding, and liquidity risks. These factors have been reflected in increasing refinancing risk for the industry. For this year, Standard & Poor's Ratings Services expects lower growth rates and pressures on profitability levels. Refinancing risk Given current market conditions, refinancing risk is one of the major concerns for the rating agency. However, refinancing risk is partially mitigated, as S&P expects Sociedad Hipotecaria Federal -- a government-related entity rated 'mxAAA/Stable/mxA- 1+' -- to support the industry to meet its obligations in the case of market disruptions. Rated debt maturities in April 2008 of MXN3.8 billion account for 18% of all existing maturities in the industry between now and March 2009. This figure excludes maturities from Hipotecaria Credito y Casa (not rated) of MXN1.9 billion. Furthermore, the high concentration of upcoming maturities during April 2008 will only continue to be exacerbated in following months given the very short terms in which the roll-overs are being done by some participants. Thus, if market sentiment doesn't change, by July or August S&P could be facing a single month accounting for more than MXN9 billion in maturities, or 45% of scheduled maturities for the industry in the next 12 months, and refinancing risk will remain for the rest of 2008. In addition, short-term market debt issued by this sector represents about one-third of total short-term debt issued in the Mexican market. During first-quarter 2008, S&P has seen major efforts to refinance, but all players have experienced some degree of increasing spreads. Investors are rethinking their risk appetite at a time when maturities are clearly concentrated. In S&P's opinion, this concentration has been a result of weak funding and liquidity risk management practices. For 2008, the agency expects indirect dependence on Sociedad Hipotecaria Federal for funding to increase. Lower growth rates and decreasing profitability levels Increasing funding costs, stringent underwriting policies, and limited capital to support increased nonperforming assets will be reflected in lower growth rates for the mortgage nonbank banks. S&P expects to see a growth rate for mortgage companies the rating agency rate around 7% during 2008, compared with a 16% average growth rate in the past three years. Issuance spreads have increased importantly, and will be reflected in lower interest margins. Mexican mortgage companies benefited from, and in some cases even abused, short-term market issuances until the first half of 2007, when spreads were extremely compressed among tenor and ratings/issuers. However at this point, the market is differentiating among asset classes and companies' characteristics, pressuring interest margins. In addition, increasing nonperforming assets will require higher loan-loss provisioning, also affecting profitability levels. Lesser quality in recent vintages reflects the risk appetite of mortgage companies that attacked riskier segments such as land- financing and land-investing, as well as attempts to grant mortgages to the informal workforce. As seasoning of lesser- quality vintages is yet to be seen, S&P expects growth in nonperforming assets to continue. However, S&P also expects to see an improvement in the new originated loans as a result of more stringent underwriting policies, compared with those of previous years. One of the factors that mitigates the impact of the debt market and of lower profitability levels is the strong fundamentals of Infonavit (FC: BBB/Stable/A-3 NSR: mxAAA/Stable/mxA-1+), the most important cash-out structure for residential construction loans (bridge loans), and one of the fastest-growing products for mortgages (Cofinavit). Market differentiates Mexican mortgage nonbank banks From a credit perspective, it is healthy that the market has factored differences among issuers/ratings and tenor, and from now on, companies have increased incentives to improve their market, funding, and liquidity risk management capabilities. In S&P's view, the better positioned companies are those who rely less on short-term funding and their assets and liabilities are better matched, while they also have either more cash on hand or access to committed facilities that cover an important part of their upcoming maturities. But even for companies who had major concentrated maturities and limited cash on hand, financial flexibility in the form of mechanisms to exchange eligible assets for cash has provided much needed liquidity, while the market has priced an overall risk level for which imbalances can be cleared at higher prices. Sociedad Hipotecaria Federal has been key to effectively increase the size of existing vehicles linked to warehousing lines that can provide liquidity, or even directly fund such vehicles. ======= P E R U ======= DOE RUN: Workers Launch Strike at La Oroya Refining Complex ----------------------------------------------------------- Doe Run Peru's spokesperson Victor Andres Belaunde told Business News Americas that over 30% of the firm's workers at the La Oroya polymetallic refining complex have launched a protest against the firm. The workers claimed that Doe Run failed to pay correct compensation from profits, BNamericas says, citing Mr. Belaunde. Mr. Belaunde told BNamericas that Doe Run compensated the employees adequately and is negotiating with the unions involved to put an end to the strikes. Mr. Belaunde assured BNamericas that activities at the refinery are ongoing. Based in St. Louis, Mo., The Doe Run Company -- http://www.doerun.com/-- is a privately held natural resources company dedicated to environmentally responsible mineral production, metals fabrication, recycling and reclamation. The company and its subsidiaries deliver products and services needed to provide power, protection and convenience through premium products and associated metals including lead, zinc, copper, gold and silver. As the operator of one of the world's only multi-metal facilities and the Americas' largest integrated lead producer, Doe Run employs more than 5,000 people, with U.S. operations in Missouri, Washington and Arizona, and Peruvian operations in Cobriza and La Oroya. Doe Run Peru S.R.L., an indirect Peruvian subsidiary, operates a smelter in La Oroya, Peru, one of the largest polymetallic processing facilities in the world, producing an extensive product mix of non-ferrous and precious metals, including silver, copper, zinc, lead and gold. Doe Run Peru also has a copper mining and milling operation in Cobriza, Peru in the region of Huancavelica, which is approximately 200 miles southeast of La Oroya in Peru. Doe Run Peru Going Concern Doubt As reported in the Troubled Company reporter-Latin America on Aug. 10, 2006, Doe Run Peru has significant capital requirements under environmental commitments and guarantees and substantial contingencies related to taxes and has significant debt service obligations under the revolving credit facility, each of which, if not satisfied, could result in a default under Doe Run Peru's credit agreement and collectively raise substantial doubt about Doe Run Peru's ability to continue as a going concern. Doe Run Peru continues to have substantial cash requirements in the future, including the maturity of the revolving credit facility on Sept. 22, 2006, and significant capital requirements under environmental commitments. In addition, there are substantial contingencies related to taxes. The Doe Run Peru Revolving Credit Facility expires on Sept. 22, 2006, and will require negotiations to extend its terms. There can be no assurance that Doe Run Peru will be successful in extending the existing credit agreement or negotiating a new agreement, or if it is successful, that the extended or new credit agreement would be at terms that are favorable to Doe Run Peru. Any default under the requirements of the Environmental Remediation and Management Program could result in a default under the Doe Run Peru Revolving Credit Facility. A default under the requirements of the Doe Run Peru Revolving Credit Facility results in defaults under the Doe Run Revolving Credit Facility and the indenture governing the bonds. ==================== P U E R T O R I C O ==================== MAXXAM: Court of Appeals Upholds Judge Hughes' Ruling vs. FDIC -------------------------------------------------------------- MAXXAM Inc. disclosed that the United States Court of Appeals for the Fifth Circuit has upheld substantial parts of a ruling by District Judge Lynn Hughes of the United States District Court for the Southern District of Texas. The District Court ruled in 2005 that the Federal Deposit Insurance Corporation engaged in sanctionable misconduct in connection with legal proceedings brought against MAXXAM and others. The Fifth Circuit decision returns the matter to the District Court for a determination of the amount of sanctions. While the final dollar award must be determined, it could be as much as US$15 million, making it one of the largest sanction awards against the federal government ever. "We are pleased by the Court of Appeals' decision to uphold Judge Hughes' finding that the FDIC acted improperly by using litigation tactics of delay and harassment to pressure MAXXAM into a settlement," J. Kent Friedman, general counsel of MAXXAM, said. "We have always believed that the FDIC wasted taxpayer money, and after years of legal battles and several rulings in favor of MAXXAM, it is clear that the litigation was meritless." The case stems from a decision by the FDIC to sue MAXXAM and others in order to force a "debt-for-nature" trade as a financial settlement for the failure of the United Saving Association of Texas. MAXXAM had made a substantial investment in United Financial Group Inc., which in turn owned USAT. Judge Hughes found that the FDIC brought the litigation to help the Interior Department acquire old-growth redwood trees located in the so-called Headwaters Forest of Northern California. Although the FDIC had concluded it had a legally weak case, it faced extraordinary pressure from certain members of Congress and environmental advocacy groups to sue MAXXAM and its CEO, Charles Hurwitz. The FDIC's goal was to create the threat of a debt regarding USAT that could be swapped for the Headwaters Forest, which at the time was owned by The Pacific Lumber Company, an entirely separate entity owned by MAXXAM. The Fifth Circuit upheld Judge Hughes' finding that acquiring the redwood trees was one of the FDIC's purposes in filing the suit, well as his finding that the FDIC used improper litigation tactics to cause delay and harassment in an effort to increase the costs of the litigation and force a settlement. "No government agency is above the law," Charles E. Hurwitz, chairman and CEO of MAXXAM, said. "There should be consequences when a government entity illegitimately uses the tremendous power and resources of the United States government for an improper purpose. This is a fantastic victory for all of us at MAXXAM and innocent Americans across the country who thinks the government is too big to fight." While the Fifth Circuit reversed the District Court's award of US$57 million for costs incurred in an associated administrative proceeding brought, at the direction of the FDIC, by the Office of Thrift Supervision, it did not do so on the ground that the FDIC's use of the OTS to advance its agenda was entirely proper. It simply ruled that the District Court did not have power to sanction for conduct in the administrative proceedings. About MAXXAM Headquartered in Houston, Texas, MAXXAM Inc. (AMEX: MXM) operates businesses ranging from aluminum and timber products to real estate and horse racing. MAXXAM's top revenue source is Kaiser Aluminum, which has been in Chapter 11 bankruptcy since 2002. MAXXAM's timber subsidiary, Pacific Lumber, owns about 205,000 acres of old-growth redwood and Douglas fir timberlands in Humboldt County, California. MAXXAM's real estate interests include commercial and residential properties in Arizona, California, Texas, and Puerto Rico. The company also owns the Sam Houston Race Park, a horseracing track near Houston. Its chairperson and chief executive officer, Charles Hurwitz, controls 77% of MAXXAM. At Sept. 30, 2007, the company's balance sheets showed total assets of US$543.7 million and total liabilities of US$785.3 million resulting to total stockholders' deficit US$241.6 million. R&G FINANCIAL: Gets Regulatory OK for April Dividend Payments ------------------------------------------------------------- R&G Financial Corporation received regulatory permission to make dividend payments for April on its four outstanding series of preferred stock and distributions for April on its trust preferred securities issues. Regulatory approvals are necessary as a result of the company's agreements with the board of governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and Commissioner of Financial Institutions of the Commonwealth of Puerto Rico. The permission granted by the Federal Reserve was conditioned upon the financial support provided by Mr. Victor Galan, a director and former chairman and chief executive officer of the company, through his purchase of a small portfolio of delinquent loans, which will assist the company in the partial funding of the company's April dividend payments. The company relates that it is very uncertain that future dividends and distributions will be approved absent material improvements to the company's liquidity, capital and cash flows. While it is possible that approval may be obtained and the company is taking steps to apply for further approvals, the company expects that the payment of dividends and distributions on its outstanding preferred stock or its trust preferred securities is unlikely in the foreseeable future. About R&G Financial Corp. Headquartered in San Juan, Puerto Rico, R&G Financial Corp. (PNK: RGFC.PK) -- http://www.rgonline.com/-- is a financial holding company with operations in Puerto Rico and the United States, providing banking, mortgage banking, investments, consumer finance and insurance through its wholly owned subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage Corporation, Puerto Rico's second largest mortgage banker, R-G Investments Corporation, the company's Puerto Rico broker- dealer, and R-G Insurance Corporation, its Puerto Rico insurance agency. At June 30, 2006, the company operated 37 bank branches in Puerto Rico, 35 bank branches in the Orlando, Tampa/St. Petersburg and Jacksonville, Florida and Augusta, Georgia markets, and 49 mortgage offices in Puerto Rico, including 37 facilities located within R-G Premier Bank's banking branches. * * * R&G Financial Corporation continues to carry Fitch's 'CCC' long- term issuer default rating which was assigned in September 2007. SUNCOM WIRELESS: Moody's Ups Rating to 'B2' on T-Mobile Merger -------------------------------------------------------------- Moody's Investors Service upgraded the corporate family rating of Suncom Wireless Inc. to B2 with a stable outlook from Caa1 following completion of the acquisition of Suncom by T-Mobile USA, Inc., a subsidiary of Deutsche Telekom AG ("DT", A3 under review for possible downgrade). The ratings upgrade reflects Moody's view that the acquisition of Suncom by T-Mobile materially enhances Suncom's standalone credit profile despite the fact that neither T-Mobile or DT will guarantee any of Suncom's debt obligations. The magnitude of the rating's lift has been capped at two notches based on Moody's published methodology to rating non-guaranteed subsidiaries. Concurrent with this rating action, Moody's upgraded the various instrument ratings of Suncom pursuant to Moody's loss-given- default methodology. Finally, Moody's said it will withdraw all ratings for Suncom as the bank debt has been repaid and no future standalone financial information on Suncom will be available. Moody's believes T-Mobile is likely to redeem Suncom's senior unsecured notes once they are callable in June 2008. This concludes the ratings review commenced when the acquisition agreement between T-Mobile and Suncom was announced in September 2007. Upgrades: Issuer: Suncom Wireless, Inc -- Probability of Default Rating, Upgraded to B2 from Caa1 -- Corporate Family Rating, Upgraded to B2 from Caa1 -- Senior Subordinated Regular Bond/Debenture, Upgraded to Caa1, LGD6 - 96% from Caa3, LGD6 - 96% -- Senior Secured Bank Credit Facility, Upgraded to Ba2, LGD1- 8% from B1, LGD1- 8% -- Senior Unsecured Regular Bond/Debenture, Upgraded to B3, LGD4- 63% from Caa2, LGD4- 63% Outlook Actions: Issuer: Suncom Wireless, Inc -- Outlook, Changed To Stable From Positive Headquartered in Bonn, Deutsche Telekom is the leading provider of wireline and wireless telephony services in Germany. It is also one of the leading international providers of wireless services. DT is currently 31.70% government-owned (14.83% directly and 16.87% through state-owned investment vehicle KfW). Headquartered in Berwyn, Pennsylvania, Suncom Wireless, Inc. is a regional wireless telecommunications service provider operating in the southeastern US and Puerto Rico. Suncom is a wholly-owned subsidiary of Suncom Wireless Holdings, Inc. UNIVISION COMMS: Fitch Affirms CCC+ Rating on Sr. Unsecured Debt ---------------------------------------------------------------- Fitch Ratings affirmed these ratings of Univision Communications, Inc.: -- Issuer Default Rating 'B'; -- Senior secured bank 'B+/RR3'; -- Senior secured notes 'B+/RR3'; -- Second-Lien Loan 'B-/RR5'; -- Senior Unsecured debt 'CCC+/RR6'. In a filing on April 8, 2008, Univision disclosed that it borrowed US$700 million from its seven year revolving credit facility to provide the company with greater financial flexibility in light of current financial market conditions. Fitch does not believe that the borrowing changes the company's financial profile or probability of default at its existing 'B' rating. The Outlook remains Stable. While there may be some uncertainty regarding whether the drawing is related to an undisclosed adverse event, Fitch believes the forward-looking component of the Material Adverse Effect Representation somewhat mitigates this risk. As detailed in a Fitch press release dated March 4, Fitch believes the company has various alternatives to pay down its US$500 million second-lien loan due March 2009, including sale proceeds from its music division, the sale of non-cash flow producing assets and the sale of non-core assets. Fitch views the company's TV stations that are not in top Hispanic markets and/or do not have duopolies (Salt Lake City, Cleveland, Raleigh) and stand-alone radio stations (Las Vegas, San Diego) as non-core. Beyond 2009, the company does not have any debt maturities until US$500 million due 2011. Fitch believes the company will be cash flow positive over the intermediate term. The ratings are still supported by the company's underlying portfolio of assets which include duopoly TV stations and radio stations in most of the top Hispanic markets, with a national overlay of broadcast and cable networks. The ratings are restrained from a highly leveraged capital structure that includes cash interest coverage of under 1.5x. Fitch expects the company to pay cash interest on its PIK Notes for the existing six month period, however any period with revolver availability under US$300 million results in automatic PIK election on these notes. The ratings are also restrained by the ongoing litigation disputes with Televisa. As Fitch have mentioned before, there is limited potential for upward momentum to ratings in the future unless the company is able to agree to a longer term contract with Televisa. These concerns are balanced by Fitch's continued expectations for strong growth over the intermediate term. Headquartered in Los Angeles, Calif., Univision Communications Inc., (NYSE: UVN) -- http://www.univision.net/-- owns and operates more than 60 television stations in the U.S. and Puerto Rico offering a variety of news, sports, and entertainment programming. The company had about US$2.6 billion in debts at Dec. 31, 2006. WESTERN RADIOSONIC: Case Summary, 23 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Western Radiosonic Inc. 105 Mendez Vigo Street Mayaguez, PR 00680 Bankruptcy Case No.: 08-01956 Type of Business: Health Care Business Chapter 11 Petition Date: March 31, 2008 Court: District of Puerto Rico (Old San Juan) Judge: Brian K. Tester Debtor's Counsel: Angelique Doble Bravo, Esq. Gallart Law Firm 420 Ponce De Leon Avenue Midtown Build Suite 304 San Juan, PR 00918 Tel: 787-754-7171 Fax: 787-250-1041 gallartlaw@yahoo.com Estimated Assets: US$2,397,552 Estimated Debts: US$1,437,825 Debtor's list of its 23 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Department of Treasury taxes US$736,150 Bankruptcy Section 424 B P.O. Box 9024140 San Juan, PR 00902 Internal Revenue Services taxes US$281,075 Philadelphia, PA 19255 Crim taxes US$174,606 P.O. Box 195387 San Juan, PR 00919 Department of Labor unemployment US$57,624 Asociacion Condominio La Palma maintainance US$49,013 contract Medintek Corp. trade debt US$47,500 Gallart Law Firm trade debt US$47,783 CPA Israel Dominicci & Co. PSC trade debt US$35,000 Rodriguez Rivera & Toro trade debt US$29,654 Municipio De Mayaguez taxes US$21,450 Autoridad De Energia Electrica utilities US$15,711 Aguadilla Airlines trade debt US$7,316 Samuel Olmeda trade debt US$4,377 Luis Rivera trade debt US$4,620 Sepulveda & Sepulveda trade debt US$4,000 Asociacion Condominio Centro maintainance US$1,500 Servicios Medicos contract Centennial Cellular utilities US$1,319 Puerto Rico Telephone trade debt US$978 Centennial Data utilities US$503 Tischer & Company trade debt US$254 Asociacion Condominio maintainance US$169 Popular Center contract Autoridad De Acueductos utilities unknown y Alcantarillados Old San Juan Station trade debt unknown ================= V E N E Z U E L A ================= HARVEST NATURAL: Says Venezuela's Windfall Tax Bad for Industry --------------------------------------------------------------- Harvest Natural Resources' Chief Executive Officer James Edmiston told Business News Americas that Venezuela's planned windfall tax on oil production would negatively affect the oil industry. The unicameral national assembly has tentatively approved the windfall tax, BNamericas says, citing Mr. Edmiston. BNamericas relates that Mr. Edmiston said during the Independent Petroleum Association of America conference in New York, "The assembly has passed the first reading of the legislation and it will go back for a second reading before it becomes law. At that point, the ministry of oil and energy will be charged with writing up the specific legislation for the tax." Mr. Edmiston told BNamericas that "the assembly most likely will be set two triggers at US$70 per barrel and US$100 barrels per day." Mr. Edmiston commented to BNamericas, "I'm not going to speculate on what the net affect for us will be. But it's like any other tax: it will reduce investment. It will have an impact on investor confidence in Venezuela and I think it will work against Venezuela's desire to increase production in the near term. It's a tax that you've seen implemented in a number of other countries, so we know what the [general] effects are." According to BNamericas, Mr. Edmiston said that the windfall taxes affect different assets in different ways and that the tax would slow the pace of output increases on "untapped reserves." 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: Exxon Still Operates Chalmette Plant ------------------------------------------------------------ Exxon Mobil Corp. told Dow Jones that it continues to operate the Chalmette Refining LLC it jointly owns with Petroleos de Venezuela SA. As reported in the Troubled Company Reporter-Latin America on April 11, 2008, Petroleos de Venezuela will seek to replace Exxon Mobil as operator of the Chalmette plant in Louisiana. The Venezuelan government wants a new operator for the Chalmette oil refinery. Exxon Mobil spokesperson Margaret Ross commented to Dow Jones Americas, "ExxonMobil is aware that PdVSA [Petroleos de Venezuela] is considering its option to exercise its rights under the Chalmette Refining LLC, operating agreement to remove ExxonMobil Oil Corp. as operator of the refinery. It is our policy not to comment in detail on the specifics of our contracts." Exxon Mobil is still open to discussion with Petroleos de Venezuela, Dow Jones states, citing Ms. Ross. 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: Discloses Strategy at London Congress ------------------------------------------------------------- Petroleos de Venezuela SA has disclosed its strategy on oil sovereignty and social responsibility at the World Congress of National Oil Companies in London, Prensa Latina reports. According to Luis Verma, PDVSA vice president for exploration and production, the national laws defended state-run oil prospect and production, while costs and risks can be shared in ventures, the report adds. The report states that Mr. Verma has discussed the regional energy integration and diversification under the rules of the Organization of Petroleum Exporting Countries. The discussion was involved with the definition of the role of national companies in world oil potential, including, reserves, production, human resources and technology. Companies National Iranian Oil Company, Abu Dhabi National Oil Company (United Arab Emirates, Sonangol (Angola), Qatar Petroleum (Qatar), Petrobras (Brazil), PEMEX (Mexico), Statoil, ChevronTexaco and Shell (US) and TOTAL (France) were present during the Congress. 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 =========== * BOND PRICING: For the Week April 7 - April 11, 2008 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- Argnt-Bocon PR11 2.000 12/3/10 ARS 59.84 Argnt-Bocon PR13 2.000 3/15/24 ARS 61.67 Arg Boden 2.000 9/30/08 ARS 15.10 Argent-EURDIS 7.820 12/31/33 EUR 71.44 Argent-Par 0.630 12/31/38 ARS 38.33 BRAZIL ------ CESP 9.750 1/15/15 BRL 63.35 CAYMAN ISLANDS -------------- Shinsei Fin Caym 6.418 1/29/49 USD 69.71 Shinsei Finance 7.160 7/29/49 USD 67.64 Vontobel Cayman 5.000 3/12/10 CHF 71.40 Vontobel Cayman 8.250 4/25/08 CHF 70.80 Vontobel Cayman 8.250 7/28/08 CHF 45.20 Vontobel Cayman 8.000 10/24/08 CHF 53.80 Vontobel Cayman 9.100 10/31/08 CHF 67.60 Vontobel Cayman 10.000 10/24/08 CHF 53.40 Vontobel Cayman 10.400 7/8/08 CHF 55.80 Vontobel Cayman 10.800 9/26/08 CHF 56.75 Vontobel Cayman 10.900 9/26/08 CHF 54.60 Vontobel Cayman 11.000 6/20/08 CHF 43.80 Vontobel Cayman 11.500 6/27/08 EUR 61.55 Vontobel Cayman 11.500 7/22/08 CHF 66.20 Vontobel Cayman 17.500 6/5/09 CHF 70.20 Vontobel Cayman 20.000 1/23/09 EUR 69.20 JAMAICA ------- Jamaica Govt LRS 7.500 10/6/12 JMD 71.84 Jamaica Govt LRS 12.750 6/29/22 JMD 73.60 Jamaica Govt LRS 12.850 5/31/22 JMD 73.00 PUERTO RICO ----------- Puerto Rico Cons. 5.900 4/15/34 USD 45.00 Puerto Rico Cons. 6.000 12/15/34 USD 71.00 Puerto Rico Cons. 6.250 5/1/22 USD 74.00 Puerto Rico Cons. 6.300 11/1/33 USD 47.00 VENEZUELA --------- Petroleos de Ven 5.250 4/12/17 USD 67.35 Petroleos de Ven 5.375 4/12/27 USD 58.57 Petroleos de Ven 5.500 4/12/37 USD 57.64 Venezuela 7.000 3/31/38 USD 69.62 *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marie Therese V. Profetana, Sheryl Joy P. Olano, Rizande de los Santos, and Pamella Ritah K. Jala, Editors. Copyright 2008. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *