/raid1/www/Hosts/bankrupt/TCRLA_Public/080505.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, May 5, 2008, Vol. 9, No. 88
Headlines
A R G E N T I N A
ARGLUS SA: Trustee to File General Report in Court Today
CAIDES SA: Trustee to File Individual Reports in Court Today
CHRYSLER LLC: April Sales Drop 23% Due to Slowing SUV Demand
FIAT SPA: Signs MoU to Acquire Zastava's Kragujevac Plant
FORD MOTOR: April 2008 Sales Drops 12%, Focus Sales Ups 88%
HOTELES LAR: Trustee to Submit General Report to Court Today
LIWIN SA: Trustee to Verify Proofs of Claim Until July 25
QUEBECOR WORLD: Final Recovery is 41.1%, Global DiSCS Says
SIDECSA SA: Trustee to Submit General Report to Court Today
SUCESSION DE AURELIO: Trustee to Verify Claims Until July 7
SUN MICRO: Posts US$34 Million Net Loss in Fiscal 3rd Quarter
TRANS ROGAL: Trustee to File Individual Reports in Court Today
B E R M U D A
ANNUITY & LIFE: Incurs US$79,213 Net Loss in 2008 First Quarter
SECURITY CAPITAL: To Release First Quarter 2008 Results on May 8
SECURITY CAPITAL: Unit Names Adam Bergonzi Chief Credit Officer
SCOTTISH RE: Falling Capitalization Cues S&P to Retain WatchNeg
TYCO INT'L: Reports US$222 Million Operating Income in 2Q 2008
XL CAPITAL: Goldman's Conviction Buy List Position Boosts Shares
B R A Z I L
BANCO NACIONAL: Mulling Approval of Jirau Hydro Plant Financing
BANCO NACIONAL: To Approve Santo Antonio Plant Funding in August
CNH GLOBAL: S&P Upgrades Corporate Credit Rating From 'BB+'
DELPHI CORP: Court Approves DIP Facility Extension & Refinancing
DELPHI CORP: Court Okays Up to US$650MM in GM Credit Extensions
DUERR AG: Earns EUR4.4 Million for First Quarter Ended March 31
GENERAL MOTORS: Posts US$3.3 Bil. Net Loss in 2008 First Quarter
PRIDE INTERNATIONAL: Bags Five-Year Deal for Further Expansion
SADIA SA: Consolidated Net Income Doubles to BRL216MM in 1Q 2008
SANYO ELECTRIC: Matsushita Tie-Up Seen, Yomiuri Shimbun Says
THERMADYNE HOLDINGS: To Hold Annual Meeting on Tuesday
THERMADYNE HOLDINGS: S&P Lifts Corporate Credit Rating to 'B-'
C A Y M A N I S L A N D S
ABC CAYMAN: Sets Final Shareholders Meeting for May 7
APPLEGARTH & CO: Proofs of Claim Filing Deadline Is May 8
BASIS YIELD: US Court Dismisses Firm' Bankruptcy Protection
CRESCENT ARENA: Sets Final Shareholders Meeting for May 7
FRESH DEL MONTE: Richard Contreras Replaces John Inserra as CFO
HERBALIFE LTD: Reports US$62.4 Mil. Net Income in First Quarter
NORANDA HIGHLANDS: Will Hold Final Shareholders Meeting on May 7
SENIOR FUNDING: Sets Final Shareholders Meeting for May 7
TEQUESTA CORE: Proofs of Claim Filing Deadline Is May 6
TEQUESTA ENHANCED: Proofs of Claim Filing Is Until May 6
TEQUESTA ENHANCED CONVEXITY: Claims Filing Deadline Is May 6
TEQUESTA MORTGAGE: Proofs of Claim Filing Is Until May 6
XINEX CO: Proofs of Claim Filing Deadline Is May 6
C H I L E
CHEMTURA CORP: Posts US$21 Mil. Net Loss in 2008 First Quarter
CHEMTURA CORP: Annual Stockholders Meeting Scheduled for May 14
CHEMTURA CORP: Inks Pact with Baerlocher on Heat Stabilizers
COEUR D'ALENE: Matrix Research Upgrades Rating on Firm to Sell
C O S T A R I C A
DENNY'S CORP: March 26 Balance Sheet Upside-Down by US$172.2 Mln
SIRVA INC: Files First Amended Prepackaged Joint Plan
D O M I N I C A N R E P U B L I C
AES DOMINICANA: Fitch Affirms Foreign Currency ID Rating at 'B-'
EMPRESA GENERADORA: Fitch Holds B- Foreign and Local ID Ratings
EMPRESA GENERADORA: Fitch Affirms B- International Currency IDRs
E C U A D O R
PETROECUADOR: To Repair Esmeraldas' Distillation Unit in 2 Weeks
E L S A L V A D O R
ALCATEL-LUCENT SA: Posts EUR181 Million Loss for 1st Qtr 2008
G U A T E M A L A
BRITISH AIRWAYS: Eyes Transatlantic Tie-Up With Two US Carriers
J A M A I C A
NATIONAL WATER: Must Develop Sewage Treatment Master Plan
M E X I C O
DANA CORP: Intends to Transfer Kentucky Operations to Mexico
HERCULES OFFSHORE: S&P Affirms Credit & Bank Loan Ratings at BB
RADIOSHACK CORP: Earns US$38.8 Million in Quarter Ended March 31
RESIDENTIAL CAPITAL: Seeks Alternatives to Arrest Liquidity Woes
TLALNEPANTLA MUNICIPALITY: Moody's Places Ba3 Local Curr. Rating
* MEXICO: S&P Predicts Challenges for Banking System in 2008
P U E R T O R I C O
MANUEL GONZALEZ: Case Summary & 10 Largest Unsecured Creditors
V E N E Z U E L A
CLOROX CO: March 31 Balance Sheet Upside-Down by US$472 Million
HARVEST NATURAL: Enters AMI to Explore Oil in Upper Gulf Coast
HARVEST NATURAL: Reports US$204,000 Net Income in 1st Qtr. 2008
HARVEST NATURAL: Names S. Haynes & J. Yearwood, CFO & Controller
CITGO REFINING: Court Hears Testimonies in Environmental Case
X X X X X X
* LatAm 2007 Issuance Up 25% to US$19.1 Billion, Moody's Reports
* BOND PRICING: For the Week April 28 - May 2, 2008
- - - - -
=================
A R G E N T I N A
=================
ARGLUS SA: Trustee to File General Report in Court Today
--------------------------------------------------------
Silvia Beatriz Jaime, the court-appointed trustee for Arglus
S.A.'s bankruptcy proceeding, will submit a general report
containing an audit of the firm's accounting and banking records
to the National Commercial Court of First Instance in Buenos
Aires on May 5, 2008.
Ms. Jaime verified creditors' proofs of claim until
Feb. 15, 2008. She presented the validated claims in court as
individual reports on April 15, 2008.
Ms. Jaime is also in charge of administering Arglus' assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Arglus S.A.
Romulo S. Naon 1970
Buenos Aires, Argentina
The trustee can be reached at:
Silvia Beatriz Jaime
Sarmiento 1469
Buenos Aires, Argentina
CAIDES SA: Trustee to File Individual Reports in Court Today
------------------------------------------------------------
Luis Maria Escobar, the court-appointed trustee for Caides
S.A.'s bankruptcy proceeding, will present in the National
Commercial Court of First Instance in Buenos Aires the validated
claims as individual reports on May 5, 2008.
Mr. Escobar verified creditors' proofs of claim until
March 12, 2008. He will submit to court a general report
containing an audit of Caides' accounting and banking records on
June 16, 2008.
Mr. Escobar is also in charge of administering Caides' assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Luis Maria Escobar
Viamonte 1646
Buenos Aires, Argentina
CHRYSLER LLC: April Sales Drop 23% Due to Slowing SUV Demand
------------------------------------------------------------
Chrysler LLC reported total April 2008 sales of 147,751 units,
which is 23% below the same period last year. Overall sales
were most affected by slowing truck and SUV demand and a
dramatic cut in daily rental-fleet sales.
"The overall decrease in April sales, particularly of pickup
trucks, demonstrates that the auto industry continues to be
under pressure from the national economy," Vice Chairman and
President Jim Press said. "Despite the economic challenges, and
concern about rising fuel prices, we continue to hear from
consumers that there is growing interest in vehicles that meet
specific needs, such as the Dodge Journey seven-passenger
crossover for families and the Dodge and Jeep fuel-efficient
compact vehicles for young professionals. Our plan is to
continue to focus on meeting
customers' needs, and managing our overall inventory to best
weather this slowdown."
Chrysler's lineup of compact vehicles continued to connect well
with consumers this month. Total compact vehicle sales of the
fuel-efficient Dodge Caliber, Jeep Compass and Jeep Patriot,
which each achieve 28 miles per gallon or better in highway
driving, reached an April record 17,977 units last month, up 16
percent from April 2007.
As the spring "top-down" driving season begins, the Chrysler
Sebring Convertible finished the month with 2,827 units compared
with April 2007 sales of 1,447 units, a 95% sales increase.
Also enjoying a positive month was the Dodge Charger with sales
of 13,021 units in April, a 29% increase over 2007 April sales.
In April, the company launched its largest digital-advertising
campaign in Chrysler history for the all-new Dodge Journey, 'If
you can dream it, do it.' The Journey, with best-in-class fuel
economy (25-mpg hwy, 4-cylinder), delivers a unique combination
of versatility and flexibility at less than US$20,000. The
Journey increased sales to 6,667 units in only its third month
on the market.
As a result of the success of its "New Day" packages, Chrysler
will continue to offer the popular packages in May. The
packages have struck a chord with buyers by combining the
company's most sought-after features on a wide range of vehicles
at reduced prices.
The company finished the month with 422,353 units of inventory,
or a 74-day supply. As part of a planned reduction in
manufacturing and capacity, inventory is down 13% compared with
April 2007 when it totaled 482,786 units.
Headquartered in Auburn Hills, Michigan, Chrysler LLC --
http://www.chrysler.com/-- a unit of Cerberus Capital
Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R)
brand vehicles and products. The company has dealers worldwide,
including Canada, Mexico, U.S., Germany, France, U.K.,
Argentina, Brazil, Venezuela, China, Japan and Australia.
* * *
In December 2007, Standard & Poor's Ratings Services revised its
recovery rating on Chrysler's US$2 billion senior secured
second-lien term loan due 2014. The issue-level rating on this
debt remains unchanged at 'B', and the recovery rating was
revised to '3', indicating an expectation for 50% to 70%
recovery in the event of a payment default, from '4'.
Both the issue-level and recovery ratings on Chrysler's
US$7 billion first-lien term loan due 2013 remain unchanged.
The issue-level rating on this debt is 'BB-' with a recovery
rating of '1', indicating an expectation for 90% to 100%
recovery in the event of a payment default.
FIAT SPA: Signs MoU to Acquire Zastava's Kragujevac Plant
---------------------------------------------------------
Fiat S.p.A. and Serbia’s Ministry of Economy and Regional
Development has signed a Memorandum of Understanding as the
basis for the acquisition by Fiat Group Automobiles of the
assets of the Zastava plant at Kragujevac, Serbia.
Under the MoU, joint teams are to be set up by FGA and Zastava
with the support of the Serbian Ministry of Economy, which will
examine the various aspect of the initiative in greater detail.
If deemed feasible, the two companies will enter into a
definitive agreement in the course of the coming months.
"This initiative represents a further step in Fiat Group
Automobiles’ strategy aimed at supporting its growth and volume
aspirations," Sergio Marchionne, Fiat CEO, said. "It follows a
number of targeted alliances and partnerships signed with
leading carmakers and automotive suppliers over the last four
years. Moreover, it demonstrates our confidence and trust in
Serbia, its industry, management competence and the skill of its
workers, not to forget the Serbian automotive market itself,
which we consider an integral extension of our domestic market.
"[Fifty-four] years ago, Fiat and Zastava signed an accord for
the construction of the factory at Kragujevac where the Fiat
Punto is manufactured today," Mr. Marchionne added. "We believe
that, together with Zastava, we have played an important role in
enhancing the Serbian automotive industry from both the
manufacturing as well as the technological point of view. We
are proud that many Serbian engineers and technicians have been
trained at Fiat in Italy and in Serbia."
About Fiat S.p.A.
Based in Turin, Italy, Fiat SpA -- http://www.fiatgroup.com/--
designs, manufactures, and sells automobiles, trucks, wheel
loaders, excavators, telehandlers, tractors and combine
harvesters. Outside Europe, the company has subsidiaries in the
United States, Japan, India, China, Mexico, Brazil and
Argentina, among others.
* * *
As of March 13, 2008, Fiat S.p.A. and its subsidiaries carries
Ba3 Corporate Family and Senior Unsecured ratings from Moody's
Investors Service, which said the outlook is positive.
The company carries Standard & Poor's Ratings Services' BB long-
term corporate credit rating. The company also carries B short-
term rating. S&P said the outlook is stable.
FORD MOTOR: April 2008 Sales Drops 12%, Focus Sales Ups 88%
-----------------------------------------------------------
Total Ford Motor Company sales in April 2008, including Jaguar,
Land Rover, and Volvo sales, totaled 200,727, down 12%.
Ford's new Focus continues to defy gravity -- and the U.S.
economy -- with a 88% jump in retail sales versus last April and
the highest total Focus April sales since 2000.
"Focus is the right car at the right time," Jim Farley, Ford
group vice president, Marketing and Communications, said. "This
is the little car that delivers in a big way for customers, with
outstanding fuel economy, cool features including SYNC, a fun
drive and the right price, right along with the rest of our
newest cars and crossovers."
Ford, Lincoln and Mercury cars achieved a 21% increase in retail
sales. While Focus was the standout, the company's mid-size
cars also posted higher retail sales. Ford Fusion retail sales
were up 31%, Mercury Milan retail sales were up 19% and Lincoln
MKZ retail sales were up 20%. The Fusion and Milan set April
sales records with total sales of 15,059 for the Fusion and
3,809 for the Milan.
Retail sales for the company's crossovers were 11% higher than a
year ago, paced by the Ford Edge (up 24%) and Ford Escape (up
13%). Retail sales for the Mercury Mariner were up 6 percent
and Lincoln MKX retail sales were up 4%.
Higher gas prices are accelerating the industry-wide shift from
trucks and traditional sport utility vehicles to cars and
crossovers. At Ford, April sales for sport utility vehicles
were 36% lower than a year ago and trucks were 19% lower.
Lower sales to daily rental companies (down 32%) also
contributed to the company's sales decline. Overall, Ford,
Lincoln and Mercury sales totaled 189,247, down 12% compared
with a year ago. Retail sales to individual customers were down
7%.
Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles
in 200 markets across six continents. With about 260,000
employees and about 100 plants worldwide, the company's core and
affiliated automotive brands include Ford, Jaguar, Land Rover,
Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company
provides financial services through Ford Motor Credit Company.
The company has operations in Japan in the Asia Pacific region.
In Europe, the company maintains a presence in Sweden, and the
United Kingdom. The company also distributes its brands in
various Latin American regions, including Argentina and Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 31, 2008, Standard & Poor's Ratings Services said that the
ratings and outlook on Ford Motor Co. and Ford Motor Credit Co.
(both rated B/Stable/B-3) were not affected by Ford's
announcement of an agreement to sell its Jaguar and Land Rover
units to Tata Motors Ltd. (BB+/Watch Neg/--) for US$2.3 billion
(before US$600 million of pension contributions by Ford for
Jaguar-Land Rover).
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2008, Fitch Ratings affirmed the Issuer Default Ratings
of Ford Motor Company and Ford Motor Credit Company at 'B', and
maintained the Rating Outlook at Negative.
In November 2007, Moody's Investors Service affirmed the long-
term ratings of Ford Motor Company (B3 Corporate Family Rating,
Ba3 senior secured, Caa1 senior unsecured, and B3 probability of
default), but changed the rating outlook to Stable from Negative
and raised the company's Speculative Grade Liquidity rating to
SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit
Company's B1 senior unsecured rating, and changed the outlook to
Stable from Negative. These rating actions follow Ford's
announcement of the details of the newly ratified four-year
labor agreement with the United Auto Workers.
HOTELES LAR: Trustee to Submit General Report to Court Today
------------------------------------------------------------
Walter Calleja, the court-appointed trustee for Hoteles Lar
S.A.I.C.F. e I.'s bankruptcy proceeding, will submit a general
report containing an audit of the firm's accounting and banking
records in the National Commercial Court of First Instance in
Buenos Aires on May 5, 2008.
Mr. Calleja verified creditors' proofs of claim until
Feb. 7, 2008. presented in court the validated claims as
individual reports on March 20, 2008.
Mr. Calleja is also in charge of administering Hoteles Lar's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Walter Calleja
Lambare 1140
Buenos Aires, Argentina
LIWIN SA: Trustee to Verify Proofs of Claim Until July 25
---------------------------------------------------------
Amalia Beckerman, the court-appointed trustee for Liwin SA's
reorganization proceeding, will be verifying creditors' proofs
of claim until July 25, 2008.
Ms. Beckerman will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 14 in Buenos Aires, with the assistance of Clerk
No. 27, 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 Liwin 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 Liwin'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 5, 2009.
The debtor can be reached at:
Liwin SA
Alicia Moreau de Justo 1848
Buenos Aires, Argentina
The trustee can be reached at:
Amalia Beckerman
Tucuman 1367
Buenos Aires, Argentina
QUEBECOR WORLD: Final Recovery is 41.1%, Global DiSCS Says
----------------------------------------------------------
Global DiSCS Trust 2004-1 (TSX: DST.UN) said that the final
recovery amount among the Trust's unitholders related to
Quebecor World Inc. is 41.1% and that a bankruptcy credit event
will not result in any reduction in collateral or an investor's
capital amount.
Credit Event
On Jan. 23, 2008, the Trust was notified that Quebecor filed a
petition for creditor protection under the Companies' Creditors
Arrangement Act (CCAA) in Canada. The exposure of the Trust's
unitholders to Quebecor was 0.50% of the Reference Portfolio.
Following the Quebecor Bankruptcy Credit Event, the Trust's
remaining synthetic first loss tranche protection is 3.606% of
the Reference Portfolio. The initial 4.10% first loss tranche
was reduced to 3.88% as a result the 2006 Delphi Corporation
Credit Event.
Unitholders' entitlement to receive US$25 per unit on Dec. 20,
2009, and quarterly distributions of US$0.325 per unit will not
be affected by this Credit Event. However, if future Cumulative
Net Loss Amount resulting from credit events exceeds 3.606%, the
Trust's unitholders will not receive the original subscription
price of US$25 per unit upon the maturity date.
Trading Information and NAV
The Units of Global DiSCS Trust 2004-1 are listed for trading on
the Toronto Stock Exchange under the symbol DST.UN. As of
April 23, 2008, the net asset value of the Trust was US$20.78
per unit.
About Sentry Select Capital Corp.
Sentry Select Capital Corp. is a Canadian wealth management
company that manages over US$6.5 billion in gross assets as of
March 31, 2008. The company offers a diverse range of
investment products including closed-end trusts, mutual funds,
principal-protected notes and flow-through limited partnerships,
covering a variety of domestic and global mandates. Sentry
Select is the manager and advisor to 29 TSX-listed reporting
issuers. In addition, Sentry Select manages and provides
advisory services to four reporting issuers listed on the TSX
Venture Exchange.
About Quebecor World
Based in Montreal, Quebec, Quebecor World Inc. (TSX:IQW)
(NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides
market solutions, including marketing and advertising
activities, well as print solutions to retailers, branded goods
companies, catalogers and to publishers of magazines, books and
other printed media. Quebecor World has approximately 27,500
employees working in more than 120 printing and related
facilities in the United States, Canada, Argentina, Austria,
Belgium, Brazil, Chile, Colombia, Finland, France, India,
Mexico, Peru, Spain, Sweden, Switzerland and the United Kingdom.
Quebecor World and 53 of its subsidiaries, including those in
Canada, filed a petition under the Companies' Creditors
Arrangement Act before the Superior Court of Quebec, Commercial
Division, in Montreal, Canada, on Jan. 20, 2008. The Honorable
Justice Robert Mongeon oversees the CCAA case. Francois-David
Pare, Esq., at Ogilvy Renault, LLP, represents the Company in
the CCAA case. Ernst & Young Inc. was appointed as Monitor.
On Jan. 21, 2008, Quebecor World (USA) Inc., its U.S.
subsidiary, along with other U.S. affiliates, filed for chapter
11 bankruptcy on Jan. 21, 2008 (Bankr. S.D.N.Y Lead Case No. 08-
10152). Anthony D. Boccanfuso, Esq., at Arnold & Porter LLP
represents the Debtors in their restructuring efforts. The
Official Committee of Unsecured Creditors is represented by Akin
Gump Strauss Hauer & Feld LLP.
Based in Corby, Northamptonshire, Quebecor World PLC --
http://www.quebecorworldplc.com/-- is the U.K. subsidiary of
Quebecor World Inc. that specializes in web offset magazines,
catalogues and specialty print products for marketing and
advertising campaigns. The company employs around 290 people.
Quebecor PLC was placed into administration with Ian Best and
David Duggins of Ernst & Young LLP appointed as joint
administrators effective Jan. 28, 2008.
As of Sept. 30, 2007, Quebecor World's unaudited consolidated
balance sheet showed total assets of US$5,554,900,000, total
liabilities of US$3,964,800,000, preferred shares of
US$175,900,000, and total shareholders' equity of
US$1,414,200,000.
The company has until May 20, 2008, to file a plan of
reorganization in the Chapter 11 case. The Debtors' CCAA stay
has been extended to May 12, 2008. (Quebecor World Bankruptcy
News, Issue No. 12; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Feb. 13, 2008,
Moody's Investors Service assigned a Ba2 rating to the
US$400 million super priority senior secured revolving term loan
facility of Quebecor World Inc. as a Debtor-in-Possession. The
related US$600 million super priority senior secured term loan
was rated Ba3 (together, the DIP facilities). The RTL's better
asset value coverage relative to the TL accounts for the
ratings' differential.
SIDECSA SA: Trustee to Submit General Report to Court Today
-----------------------------------------------------------
Sergio Leonardo Novick, the court-appointed trustee for Sidecsa
S.A.'s bankruptcy proceeding, will submit a general report
containing an audit of the firm's accounting and banking records
to the National Commercial Court of First Instance in Buenos
Aires on May 5, 2008.
Mr. Novick verified creditors' proofs of claim and presented
them as individual reports in court.
Mr. Novick is also in charge of administering Sidecsa's assets
under court supervision and will take part in their disposal to
the extent established by law.
The trustee can be reached at:
Sergio Leonardo Novick
Libertad 359
Buenos Aires, Argentina
SUCESSION DE AURELIO: Trustee to Verify Claims Until July 7
-----------------------------------------------------------
Ricardo Felix Fernandez, the court-appointed trustee for
Sucesion de Aurelio Delfino's reorganization proceeding, will be
verifying creditors' proofs of claim until July 7, 2008.
Mr. Fernandez will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 2 in Buenos Aires, with the assistance of Clerk
No. 3, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Sucesion de Aurelio 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 Sucesion de Aurelio'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 April 27, 2009.
The debtor can be reached at:
Sucesion de Aurelio Delfino
Roca 6421
Buenos Aires, Argentina
The trustee can be reached at:
Ricardo Felix Fernandez
Tucuman 1567
Buenos Aires, Argentina
SUN MICRO: Posts US$34 Million Net Loss in Fiscal 3rd Quarter
-------------------------------------------------------------
Sun Microsystems, Inc. reported results for its fiscal third
quarter, which ended March 30, 2008.
Revenues for the third quarter of fiscal 2008 were US$3.266
billion, a decrease of 0.5% as compared with US$3.283 billion
for the third quarter of fiscal 2007. Total gross margin as a
percent of revenues was 44.9, an increase of 0.4 percentage
points, as compared with the third quarter of fiscal 2007.
Net loss for the third quarter of fiscal 2008 on a GAAP basis
was US$34 million, or US$(0.04) per share, as compared with net
income of US$67 million, or US$0.07 per share, for the third
quarter of fiscal 2007. In the third quarter of fiscal 2008,
the company recorded a US$52 million dollar tax provision, as
compared to a tax benefit of US$3 million in the third quarter
of fiscal 2007. Net loss for the third quarter included charges
related to the acquisition of MySQL, which reduced earnings per
share by approximately US$0.04.
Cash generated from operations for the third quarter of fiscal
2008 was US$329 million, and the cash and marketable debt
securities balance at the end of the quarter was US$3.801
billion. During the third quarter, Sun continued to leverage its
cash position, spending US$300 million to repurchase 17.5
million shares of its common stock. There is currently US$500
million remaining of the US$3 billion share repurchase program
announced in the company's fiscal fourth quarter of 2007.
"The U.S. economy presented Sun with significant challenges in
the third quarter, masking our progress in developing nations
and economies across the world," said Jonathan Schwartz, CEO of
Sun Microsystems. "With double digit year-over-year growth in
India and Brazil, and triple digit year-over-year billings
growth in our energy-efficient, SolarisTM-based Chip Multi-
Threading (CMT) systems, Sun made considerable progress during
the quarter. We continue to invest in the future created by
open alternatives to proprietary technologies, best exemplified
by the acquisition of MySQL. The world is moving to open source
innovation, and Sun continues to lead that revolution."
Third Quarter Highlights
Sun reported year-over-year revenue growth in 12 out of its 16
sales geographies during the third quarter, with double-digit
revenue growth in key international markets across EMEA, Asia
Pacific and the International Americas.
From a product perspective, SolarisTM-based Chip Multi-Threading
systems billings more than doubled year-over-year, with the
company's blade systems also delivering impressive billings
growth fueled by Sun's comprehensive portfolio spanning AMD
OpteronTM, Intel Xeon(R) and Sun UltraSPARC(R) offerings.
Furthering its presence in the open source software marketplace,
Sun announced the close of two significant acquisitions: MySQL,
the world's most popular open source database provider, and
innotek, whose VirtualBoxTM products provide free desktop
virtualization.
Sun signed a landmark collaboration agreement with The People's
Republic of China Ministry of Education to cultivate integrated
circuit engineering talent and industry development based upon
Sun's OpenSPARCTM open source silicon platform.
Sun was awarded significant contracts including funding from the
Defense Advanced Research Projects Agency for a five and a half
year research project focused on microchip interconnectivity via
on-chip optical networks enabled by silicon photonics and
proximity communication.
About Sun Microsystems
Headquartered in Santa Clara, California, Sun Microsystems Inc.
(NASDAQ: JAVA) -- http://www.sun.com/-- provides network
computing infrastructure solutions that include computer
systems, data management, support services and client solutions
and educational services. It sells networking solutions,
including products and services, in most major markets worldwide
through a combination of direct and indirect channels.
Sun Microsystems has subsidiaries in, among other, the United
Kingdom, Netherlands, Singapore, Taiwan, Mexico, Argentina,
Chile, India and Bermuda.
* * *
Sun Microsystems Inc. carries Moody's "Ba1" probability of
default and long-term corporate family ratings with a stable
outlook. The ratings were placed on Sept. 22, 2006, and
Sept. 22, 2005, respectively.
Sun Microsystems also carries Standard & Poor's "BB+" long-term
foreign and local issuer credit ratings, which were placed on
March 5, 2004, with a stable outlook.
TRANS ROGAL: Trustee to File Individual Reports in Court Today
--------------------------------------------------------------
Carlos Enrique Wulff, the court-appointed trustee for Trans
Rogal S.R.L.'s bankruptcy proceeding, will present the validated
claims as individual reports in the National Commercial Court of
First Instance in Buenos Aires on May 5, 2008.
Mr. Wulff verified creditors' proofs of claim until
March 21, 2008. He will submit to court a general report
containing an audit of Trans Rogal's accounting and banking
records on June 16, 2008.
Mr. Wulff is also in charge of administering Trans Rogal's
assets under court supervision and will take part in their
disposal to the extent established by law.
The trustee can be reached at:
Carlos Enrique Wulff
Virrey del Pino 2354
Buenos Aires, Argentina
=============
B E R M U D A
=============
ANNUITY & LIFE: Incurs US$79,213 Net Loss in 2008 First Quarter
---------------------------------------------------------------
Annuity and Life Re (Holdings) Ltd. posted a net loss of
US$79,213 for the three months ended March 31, 2008, compared to
a net income of US$58,948 for the same period in 2007.
Net realized investment gain for the three months ended
March 31, 2008 were US$0, as compared with net realized
investment gains of US$91,456 for the three months ended
March 31, 2007.
Gross unrealized gains on the Company's investments were
US$181,149 as of March 31, 2008, as compared to gross unrealized
gains of US$67,931 as of Dec. 31, 2007. The company's
investment portfolio currently maintains an average credit
quality of AA. Cash used by operations for the three months
ended March 31, 2008 was $US16,847,599, compared to cash
provided by operations of US$112,440 for the three months ended
March 31, 2007.
As previously announced, the company settled the arbitration
case with Transamerica on Feb. 27, 2008 and closed on the sale
of its U.S. insurance company, Annuity and Life Reassurance
America, Inc. on Feb. 29, 2008.
The company continues to explore strategic alternatives to
maximize its economic value for shareholders. A cash
distribution of US$0.50 per share will be made on May 15, 2008
to shareholders of record as of April 30, 2008.
About Annuity Life Re (Holdings) Ltd.
Bermuda-based Annuity & Life Re (Holdings), Ltd. --
http://www.alre.bm/or -- http://www.annuityandlifere.com/--
provides annuity and life reinsurance to insurers through its
wholly owned subsidiaries, Annuity & Life Reassurance, Ltd. and
Annuity & Life Reassurance America, Inc.
Going Concern Doubt
Chartered Accountants of Hamilton, Bermuda, raised substantial
doubt about Annuity and Life Re (Holdings), Ltd.'s ability to
continue as a going concern after it audited the company's
annual report for 2004. The auditor pointed to the company's
significant losses from operations and experience of liquidity
demands.
Annuity and Life Re incurred losses for two consecutive
quarters. The company posted a net loss of US$92,056 for the
three months ended June 30, 2007, compared to a net loss of
US$649,949 for the same period in 2006. The company incurred a
net loss from continuing operations of US$88 million for the
three months ended Sept. 30, 2007, as compared to a net loss
from continuing operations of US$212.2 million for the same
period in 2006.
SECURITY CAPITAL: To Release First Quarter 2008 Results on May 8
----------------------------------------------------------------
Security Capital Assurance Ltd. will release its first quarter
2008 results after the close of regular stock market hours on
May 8, 2008. President and Chief Executive Officer Paul S.
Giordano, Executive Vice President and Chief Financial Officer
David P. Shea, and Security Capital's financial guarantee
subsidiary, XL Capital Assurance Inc. Executive Vice President
and President Ed Hubbard, will host an earnings conference call
to discuss Security Capital's first quarter 2008 results on May
9, 2008 at 8:30 am Eastern Daylight Time (EDT).
The conference call will include prepared remarks by the
Security Capital management team and a listen-only question and
answer format. The company will accept questions via email at
the following email address up to 8:00 pm EDT, May 8, 2008:
InvestorRelations@scafg.com.
To access the conference call:
Tel. Numbers: +1 888-694-4702 (U.S.)
+1 973-582-2741 (International).
Passcode: 45689498
Company's Web site: http://www.scafg.com.
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.
SECURITY CAPITAL: Unit Names Adam Bergonzi Chief Credit Officer
---------------------------------------------------------------
Security Capital Assurance Ltd.'s wholly owned financial
guarantee insurance subsidiary, XL Capital Assurance Inc. has
named Adam T. Bergonzi, as Chief Credit Officer effective May 2,
2008. Mr. Bergonzi will replace Managing Director and Chief
Credit Officer, Richard P. Heberton. The company also announced
that XL Capital Assurance Inc. Senior Vice President and Head
of Origination, T. Wynne Morriss, Jr. will leave the company
effective May 2, 2008.
"We look forward to benefiting from Adam's strong background and
experience in his expanded role. We thank both Dick and Wynne
for their many years of dedicated service. They were
instrumental in helping to build the company, and we wish them
well in their future endeavors," stated Security Capital's
President and Chief Executive Officer, Paul S. Giordano.
Mr. Bergonzi joined XL Capital Assurance Inc. in 2006 as a
Managing Director in the credit group, where he had primary
responsibility for reviewing credits including global
infrastructure and project financings, as well as United States
public finance. Prior to joining XL Capital Assurance, Mr.
Bergonzi spent 15 years at MBIA Inc., where he held positions of
increasing responsibility in MBIA's insured portfolio
management, new business, finance and corporate strategy areas.
He received his B.A. from Colgate University (cum laude) and
received his J.D. from the New York Law School.
Mr. Heberton joined XL Capital Assurance Inc. at its inception
in 2000. Mr. Morriss joined XL Capital's predecessor company,
Global Credit Analytics, Inc., in 1999. Both executives were
members of the company's founding leadership team. Until March
2005, Mr. Heberton served as head of XL Capital's surveillance
and research group. Prior to assuming his role as Head of
Origination in 2006, Mr. Morriss served as head of the
structured single risk group, which encompassed XL Capital's
public finance, global infrastructure, power & utilities and
specialized risk businesses.
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.
SCOTTISH RE: Falling Capitalization Cues S&P to Retain WatchNeg
---------------------------------------------------------------
Standard & Poor's Ratings Services said that its counterparty
credit rating on Scottish Re Group Ltd. (B/Watch Neg) and its
counterparty credit and financial strength ratings on Scottish
Re's operating companies and the ratings on these companies'
dependent unwrapped securitized deals remain on CreditWatch with
negative implications.
"Standard & Poor's placed these ratings on CreditWatch on Jan.
31, 2008, because of the erosion of Scottish Re's capitalization
due to the declining market value of its subprime and Alt-A
investments, our increased estimate of expected losses on these
assets, and the meaningful risk of losing some reserve credits
secured through Ballantyne Re plc," said S&P's credit analyst
Robert Hafner.
"Our increasing estimates of cumulative subprime and Alt-A
expected losses based on the composition of such investments, by
vintage and other characteristics negatively affects our view of
Scottish Re's capitalization," said Mr. Hafner. "Scottish Re's
announcement of a letter of intent signed with ING, the only
cedent for the Ballantyne trust, moderates our concern about its
ability to avert loss of significant reserve credits pending
execution of the arrangement."
"We continue to monitor developments and awaits the release of
Scottish Re's delayed financial data, which are needed to better
refine our view of expected cumulative losses and the impact on
the firm's capitalization. The ratings will be lowered if a
substantial risk of losing reserve credits lingers or if our
investment loss estimate were to increase materially. The
ratings will be affirmed if our refined investment loss estimate
is in line with our current expectations and the risk of losing
reserve credits is ameliorated," Mr. Hafner added.
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities. On Sept. 30, 2007,
Scottish Re reported total assets of US$13.4 billion and
shareholder's equity of US$869 million.
TYCO INT'L: Reports US$222 Million Operating Income in 2Q 2008
--------------------------------------------------------------
Tyco International Ltd. reported its financial results for the
fiscal second quarter of 2008.
The company expects full year fiscal 2008 diluted earnings per
share from continuing operations before special items to be in
the range of US$2.65 to US$2.75 per share.
"Our second quarter operating performance was well ahead of last
year with improved operating margins in each of our businesses.
Based on our first half performance and our outlook for the
remainder of the year, we have increased our full year earnings
guidance," said Tyco Chairperson and Chief Executive Officer, Ed
Breen. "We continue to make progress on our portfolio
refinement efforts, announcing an acquisition in our security
business and the divestiture of businesses that no longer meet
our strategic direction."
As part of its portfolio refinement efforts, the company has
announced several transactions including an agreement to acquire
FirstService Security for approximately US$187 million to
strengthen ADT's systems integration capabilities. The company
also announced agreements to divest the following non-core
businesses: its Infrastructure Services businesses for
approximately US$805 million; its Nippon Dry-Chemical unit for
US$56 million, a transaction that closed on Feb. 29, 2008; and
its Ancon Building Products business for approximately US$174
million, a transaction that closed on April 30, 2008.
Segment Results
Revenue increased 4% with organic revenue growth of 1%.
Recurring revenue grew 5% organically and improved across all
regions. Systems installation and service revenue declined 3%
organically due to weakness in North America and Europe, mostly
as a result of lower sales to the retailer end market. This was
partially offset by strong double-digit organic growth in Asia
and Latin America.
Operating income was US$222 million. Special items consisted of
US$11 million of restructuring charges, primarily in Europe.
Operating income before special items increased 6% to US$233
million and included expenses of US$27 million primarily
associated with the analog-to-digital transition.
Revenue increased 17% with organic revenue growth of 7% driven
by continued strong growth in the Valves business (+11%
organically) and the Thermal Controls business (+18%
organically). This growth was partially offset by a 5%
organic revenue decline in the Water business, primarily due to
reduced water pipeline project activity in Australia compared to
the year ago quarter.
Operating income before special items increased 28% to US$143
million and the operating margin was 14%. The increase in the
operating income and the operating margin before special items
was due to higher revenue and improved productivity.
Revenue in Fire Protection Services increased 5% with organic
revenue growth of 1%. The North American SimplexGrinnell
business grew 4% organically while the international fire
businesses declined 5%. The decline was primarily due to the
planned exit of certain non-core fire activities as well as a
decision to reduce lower-margin project work.
Operating income was US$77 million and the operating margin was
8.9%. The operating income before special items increased 22%
to US$78 million and the operating margin before special items
improved 130 basis points to 9.1% primarily because of improved
operating efficiencies.
Revenue increased 13% with better volume in steel products and
higher pricing for both steel and copper products. Organic
revenue growth was 11%.
Operating income was US$72 million and included US$3 million of
restructuring charges. Operating income before special items of
US$75 million improved significantly, primarily as a result of
better steel and copper spreads versus the prior year as well as
improved productivity.
Revenue increased 11% with organic revenue growth of 5%,
resulting from growth across the fire suppression, electronic
security and life safety businesses.
Operating income was US$54 million and the operating margin was
11.5%. Special items in the quarter consisted of US$26 million
of restructuring charges. Operating income before special items
increased 13% to US$80 million and the operating margin before
special items was 17.1%. The improvement in operating income
before special items was primarily due to higher volume and
improved produc tivity offset by higher R&D and sales and
marketing expenses.
Other Items
-- Net Cash used in Operating Activities of US$2.468 billion
reflects the release of US$2.960 billion of previously-
funded escrow for the settlement of legacy securities
class action litigation.
-- The company had a free cash outflow of US$2.736 billion
for the fiscal second quarter, primarily reflecting the
release of the US$2.960 billion mentioned above. In
addition, free cash flow included US$82 million of
payments, primarily for restructuring activities.
-- Corporate and Other operating expense was US$125 million
and included a net charge of US$8 million for special
items.
-- In connection with the sale of the Ancon Building Products
business, the results of this business are reported as a
discontinued operation for this quarter and all prior
periods. The business had revenue of US$107 million in
2007 and operating profit of US$23 million.
Based in Pembroke, Bermuda, Tyco International Ltd. (NYSE: TYC)
-- http://www.tyco.com/-- provides security, fire protection
and detection, valves and controls, and other industrial
products and services to customers in four business segments:
Electronics, Fire & Security, Healthcare, and Engineered
Products & Services. With 2007 revenue of US$18 billion, Tyco
employs approximately 118,000 people worldwide. In Latin
America, Tyco has presence in Argentina, Brazil, Chile, Costa
Rica, Ecuador, Honduras, and the Bahamas.
Effective June 29, 2007, Tyco International Ltd. completed the
spin-offs of Covidien and Tyco Electronics, formerly its
Healthcare and Electronics businesses, respectively, into
separate, publicly traded companies in the form of a
distribution to Tyco shareholders.
* * *
As reported in the Troubled Company Reporter on Dec. 21, 2007,
in its annual report for the year ended Sept. 28, 2007, Tyco
said that on Nov. 8, 2007, The Bank of New York delivered to the
company a notice of events of default. The notice claims that
the actions taken by the company in connection with its
separation into three public entities constitute events of
default under certain indentures.
XL CAPITAL: Goldman's Conviction Buy List Position Boosts Shares
----------------------------------------------------------------
XL Capital Ltd's shares has advanced in New York trading
following Goldman Sachs Group Inc's placing the company on its
"conviction buy list", Bloomberg News reports.
Bloomberg cites Goldman analysts as saying that the current
value of the company's shares assumes a "worst case scenario" in
which the company's partly-owned bond insurer Security Capital
Assurance Ltd.'s business went out.
The report relates that New Chief Executive Officer Michael
McGavick has been convincing investors that risks from subprime
mortgages are in the past after a US$1.2 billion loss in the
fourth quarter when XL wrote down the value of investments
including a stake of more than 40 percent in Security Capital.
Mr. McGavick will concentrate more on property and casualty
coverage sales outside the U.S., Bloomberg adds.
The company, whose stock has lost more than half its value in
the past year, upped US$1.45, or 4.3%, to US$34.88 last Tuesday
in New York Stock Exchange composite trading the report points
out, adding that Goldman analyst Thomas Cholnoky estimates the
company to further increase for about 20% to US$40 in 12 months.
Headquartered in Bermuda, XL Capital Ltd. --
http://www.xlcapital.com/-- writes liability insurance and
reinsurance worldwide, specializing in low-frequency, high-
severity risks from riots to natural disasters. The company
writes policies through numerous subsidiaries, many of them
offshore, and also manages a Lloyd's of London syndicate. XL's
coverage includes general and executive liability, property, and
political risk insurance. Its reinsurance covers property,
aviation, energy, nuclear accident, and professional indemnity.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 3, 2008, Fitch Ratings downgraded XL Capital Ltd.'s Class
A1 to 'BB' from 'A' and Class A2 to 'BB' from 'A' and removed it
from Rating Watch Negative. Fitch also downgraded XLCA's
Insurer Financial strength rating to 'BB' and removed the IFS
from Rating Watch Negative.
===========
B R A Z I L
===========
BANCO NACIONAL: Mulling Approval of Jirau Hydro Plant Financing
---------------------------------------------------------------
Business News Americas says that Banco Nacional de
Desenvolvimento Economico e Social aka BNDES is thinking over
the approval to finance the construction of the 3.3-gigawatt
Jirau hydro plant on the Madeira river.
BNDES' Infrastructure Director Wagner Bittencourt told
BNamericas, "If everything goes okay, we expect to approve the
loan for the construction of Jirau in the last months of 2008.
However, disbursements for the project will only start in 2009."
As reported in the Troubled Company Reporter-Latin America on
May 1, 2008, BNDES set up its support and a potential
shareholding interest for the Jirau plant construction. Located
on Madeira River, in Rondonia, the plant will deliver an
installed capacity of 3,300 megawatts. It is one of the largest
energy projects of the Growth Acceleration Project. A bidding
process will start on May 12.
Brazilian power regulator Aneel has pushed back the auction for
the Jirau project to May 19. The price cap for Jirau is BRL91
per megawatt-hour, International Water Power Magazine states.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services. The ratings were assigned in August and May
2007.
BANCO NACIONAL: To Approve Santo Antonio Plant Funding in August
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
will authorize in August the financing for the construction of
the 3.15-gigawatt Santo Antonio plant on the Madeira river,
Business News Americas reports.
Banco Nacional de Desenvolvimento Economico e Social's
Infrastructure Director Wagner Bittencourt told BNamericas that
the bank would start disbursement one month after the approval
of the financing.
Mr. Bittencourt commented to BNamericas, "Disbursements in 2008
will be small because construction starts in September."
Most of the money for the project will be granted in 2009 and
2010 to the Madeira Energia consortium, which won the Santo
Antonio auction in 2007, in 2009 and 2010, BNamericas states,
citing Mr. Bittencourt.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services. The ratings were assigned in August and May
2007.
CNH GLOBAL: S&P Upgrades Corporate Credit Rating From 'BB+'
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on CNH Global N.V. to 'BBB-' from 'BB+' after taking the
same rating action on CNH's parent company, Italy-based auto and
truck manufacturer Fiat SpA (BBB-/Stable/A-3). The outlook is
stable.
Owing to the investment-grade rating, recovery methodology is no
longer applicable and Standard & Poor's has thus withdrawn its
'4' recovery rating on Case Corp.'s and Case New Holland Inc.'s
senior unsecured debt.
The corporate credit rating and outlook on publicly traded CNH
are the same as those on Fiat because of the close ties between
the two. Fiat views CNH as a core business and continues to
provide strong liquidity support to CNH by way of intercompany
loans and bank loan guarantees. Fiat has a roughly 90% equity
ownership stake in CNH. As of March 31, 2008, CNH had $1
billion of cash deposited with Fiat affiliates' cash management
pools (repayable to CNH on one day's notice).
"Because S&P views CNH as core to the Fiat Group, a positive or
negative rating action on Fiat would result in the same action
on CNH," said Standard & Poor's credit analyst Dan Picciotto.
"If S&P ceases to view CNH as core to the Fiat Group, and if
CNH's stand-alone financial profile fails to support the
ratings, S&P could take a negative rating action."
CNH Global N.V. -- http://www.cnh.com/-- (NYSE: CNH)
manufactures agricultural and construction equipment businesses.
CNH Global is a majority-owned subsidiary of Fiat S.p.A. (MILAN:
FIA) (NYSE: FIA). Aside from the U.S. and Canada, the company
also has manufacturing facilities in Austria, Belgium, France,
Italy, Poland, United Kingdom, China, India, Brazil, and Mexico,
among others.
DELPHI CORP: Court Approves DIP Facility Extension & Refinancing
----------------------------------------------------------------
The Hon. Robert Drain of the U.S. Bankruptcy Court for the
Southern District of New York authorized Delphi Corp. and its
debtor-affiliates to effectuate an extension to Dec. 31, 2008,
and
obtain a refinancing of its US$4,095,820,240 DIP facility,
pursuant to an amendment and restatement of the First Amended
and Restated DIP Credit Agreement dated Nov. 20, 2007.
Under the Existing Credit Agreement, JPMorgan Chase Bank, N.A.,
as lender and administrative agent, provided loan facilities of
US$4,095,820,240 to Delphi, as borrower. JPMorgan has agreed to
arrange refinancing of the DIP Facility, which consists of:
* Tranche A. A US$1,000,000,000 first priority revolving
credit facility,
* Tranche B. An up to US$600,000,000 first priority term
loan, and
* Tranche C. A US$2,495,820,240 second priority term loan.
"We expect to close shortly," John Wm. Butler, Jr., Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois,
said of the loan syndication, according to a Bloomberg News
report. "Sometime within the next 10 days."
The proposed Second Amended and Restated DIP Credit Agreement
provides for these terms:
Borrower: Delphi Corp.
Guarantors: Delphi's subsidiaries
Lenders: [_______]
Admin. Agent: JPMorgan Chase
Joint Book
Runners &
Lead
Arrangers: JPMorgan Securities Inc., [*] and [*]
Syndication
Agent for
Tranche A and
Tranche B
Lenders: Citicorp USA, Inc.
Commitments: Tranche A initially at US$1,000,000,000.
Tranche B initially at US$600,000,000, and
Tranche C initially at US$2,495,820,240.
Use of
Proceeds: The proceeds of the Tranche A, Tranche B and
Tranche C borrowings made on the effective date
of the Amendment will be used to pay in part all
the respective Existing DIP Loans outstanding on
the Effective Date.
The remaining proceeds of the Tranche A Loans
made and the Letters of Credit issued after the
Effective Date will be used for working capital
and for other general corporate purposes of the
Debtors, including the making of pension
contributions, the payment of transaction costs,
fees and expenses in respect of transactions in
connection with the Amendment and Transactions
and the Chapter 11 cases and the payment of
Restructuring Costs.
Letters of
Credit: Delphi may request the issuance of letters of
credit for its own account or the account of any
subsidiary, each of which will expire on the
earlier of (i) one year after the date of the
issuance of the L/C and (ii) 365 days after the
Maturity Date.
Maturity Date: December 31, 2008.
Conditions to
Effectiveness: Conditions include JPMorgan will have received
(i) an amendment fee equal to (A) 150 basis
points of the Commitments of each Tranche A
Lenders or Tranche B Lenders and (B) 200 basis
points of the Commitments of each Tranche C
Lender; and (ii) fees provided under a Fourth
Amendment Fee Letter dated as of April 25, 2008.
Interest
on Loans: Each ABR Loan will bear interest at a rate per
annum equal to the Alternate Base Rate plus (A)
if a Tranche A Loan, 3.00%, (B) if a Tranche B
Loan, 3.00% and (C) if a Tranche C Loan, 4.25%;
provided that if the applicable Alternate Base
Rate at the time of determination of the
interest rate for a Tranche B Loan or a Tranche
C Loan is below 4.25%, the Alternate Base Rate
for the Tranche B Loan or Tranche C Loan for the
Interest Period will be deemed to be 4.25%.
Each Eurodollar Loan will bear interest at a
rate per annum equal, during each Interest
Period applicable thereto, to the Adjusted LIBO
Rate for the Interest Period in effect for such
Borrowing plus (A) if a Tranche A Loan, 4.00%,
(B) if a Tranche B Loan, 4.00% and (C) if a
Tranche C Loan, 5.25%; provided that if the
applicable Adjusted LIBO Rate at the time of
determination of the interest rate for a Tranche
B Loan or a Tranche C Loan is below 3.25%, the
Adjusted LIBO Rate for the Tranche.
"Alternate Base Rate" will mean, for any day, a
rate per annum equal to the greater of (a) the
Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on the
day plus 1/2 of 1%, subject to certain
conditions.
EBITDAR
Covenant: EBITDAR for Delphi and its subsidiaries for each
rolling 12 fiscal month period ending on the
last day of each fiscal month to be less than
the amounts set forth:
Period Ending Global EBITDAR
------------- --------------
April 30, 2008 US$475,000,000
May 31, 2008 US$575,000,000
June 30, 2008 US$600,000,000
July 31, 2008 US$575,000,000
August 31, 2008 US$550,000,000
September 30, 2008 US$625,000,000
October 31, 2008 US$600,000,000
November 30, 2008 US$675,000,000
Default
Interest: If the Borrower or any Guarantor, as the case
may be, will default in the payment of the
principal of or interest on any Loan or in the
payment of any other amount becoming due
hereunder, whether at stated maturity, by
acceleration or otherwise, it will pay interest,
to the extent permitted by law, on all Loans and
overdue amounts up to the date of actual
payment at a rate per annum equal to
(x) the rate then applicable for the
Borrowings plus 2.0% and (y) in the case of all
other amounts, the rate applicable for Alternate
Base Rate plus 2.0%.
Commitment
Fees: Delphi will pay to the Tranche A Lenders a
commitment fee for the period commencing on the
Effective Date to the Termination Date or the
earlier date of termination of the Tranche A
Commitment, computed at the rate of 1.0% per
annum on the average daily Unused Total Tranche
A Commitment.
L/C Fees: Delphi will pay with respect to each Letter of
Credit (i) to JPMorgan on behalf of the Tranche
A Lenders a fee calculated at the rate of 4.00%
per annum, on the daily average L/C Exposure and
(ii) to the issuing lender its customary fees
for issuance, amendments and processing. In
addition, Delphi agrees to pay each issuing
lender for its account a fronting fee of 0.25%
per annum in respect of each Letter of Credit
issued by the issuing lender, for the period
from and including the date of issuance of the
L/C to and including the date of termination of
the L/C.
Priority
and Liens: Subject to the carve-out for fees to the
Bankruptcy Court, the U.S. Trustee and retained
professionals, pursuant to Section 364(c)(1) of
the Bankruptcy Code, obligations under the DIP
Facility will at all times constitute allowed
claims having priority over any and all
administrative expenses, diminution claims and
all other claims, including all administrative
expenses of the kind specified in Sections
503(b) or 507(b) of the Bankruptcy Code. Claims
in respect of obligations under the Tranche A
Facility and the Tranche B Loan will be senior
in priority to the claims granted under the in
respect of the Tranche C Loan. The DIP
obligations will also be secured by other liens
and interests pursuant to Sections 364(c)(2),
364(c)(3) and 364(d)(1).
A full-text copy of the April 29 draft of the Second Amended and
Restated DIP Credit Agreement is available for free at:
http://bankrupt.com/misc/Delphi_Draft_RefinancedDIP.pdf
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.
(Delphi Bankruptcy News, Issue No. 127; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
DELPHI CORP: Court Okays Up to US$650MM in GM Credit Extensions
---------------------------------------------------------------
The Hon. Robert Drain of the U.S. Bankruptcy Court for the
Southern District of New York authorized Delphi Corp. and its
debtor-affiliates to:
(i) obtain extensions of credit of up to US$650 million from
General Motors Corp. and
(ii) pay undisclosed fees in connection with the loan.
GM, through an affiliate, will provide US$650 million in
advances to Delphi in anticipation of the effectiveness of their
Master Restructuring Agreement and Global Settlement Agreement,
both dated Sept. 6, 2007, and amended Dec. 7, 2007.
As reported in the Troubled Company Reporter on April 29, 2008,
the parties' agreement provides for these terms:
Borrower: Delphi Corp.
Guarantors: Other Debtors
Lender: General Motors Corp.
Commitment: GM will provide loans to Delphi beginning
May 7, 2008:
(a) prior to June 1, 2008, in an
aggregate outstanding principal
amount not to exceed US$200,000,000,
(b) from and after June 1, 2008, and
prior to July 1, 2008, in an
aggregate outstanding principal
amount not to exceed US$300,000,000
and
(c) from and after July 1, 2008, in an
aggregate outstanding principal
amount not to exceed US$650,000,000.
Scheduled
Termination Date: The earliest of (a) Dec. 31, 2008, (b)
the date on or after the effectiveness of
the amendments to each of the Master
Restructuring Agreement and the Global
Settlement Agreement, on which GM or its
affiliates has paid to or for the credit
or the account of the Debtors from and
after the Effective Date an amount equal
to or greater than US$650,000,000 in the
aggregate under the agreements and (c)
the date on which a Reorganization Plan
becomes effective.
Covenants: The parties agree to, among other things,
use their good-faith, commercially
reasonable efforts to (a) negotiate and
enter into amendments to each of the
Global Settlement Agreement and Master
Restructuring Agreement as soon as
practicable (the parties desire to enter
into amendments on or prior to July 1,
2008), and (b) obtain the consent of
Delphi's statutory committees with
respect to the amendments.
Interest Rates: Adjusted LIBO Rate plus [__]%
Interest Payments: Interest payment date will mean the last
day of each March, June, September and
December, commencing Sept. 30, 2008.
Default Interest: Rate for Advances plus 2.0%.
Priority: The Debtors' obligations to GM will
constitute allowed claims having priority
pursuant to Section 503(b)(1) of the
Bankruptcy Code. GM's set-off rights
will rank ahead of general unsecured
claims at all times.
Conditions to
Effectiveness: The GM Agreement will be effective, when,
among other things, the Court approves
an amendment to the Amended and Restated
Revolving Credit, Term Loan and Guaranty
Agreement, dated as of Nov. 20, 2007,
originally signed by JPMorgan Chase Bank,
N.A., as administrative agent, and
Citicorp USA, Inc., which amendment will
extend the termination date thereunder to
a date no earlier than Dec. 31, 2008.
A copy of the April 29 draft of the Agreement is available for
free at http://bankrupt.com/misc/Delphi_GM_Agreement2.pdf
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.
(Delphi Bankruptcy News, Issue No. 127; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
DUERR AG: Earns EUR4.4 Million for First Quarter Ended March 31
---------------------------------------------------------------
The Duerr Group AG posted EUR4.5 million in net profit on
EUR356.2 million in net revenues for the first quarter ended
March 31, 2008, compared with EUR2.1 million in net losses on
EUR304.1 billion in net revenues for the same period in 2007.
"We have taken a first important step towards raising the EBIT
margin to 5% in 2008 as announced," CEO Ralf Dieter said.
"Duerr aims to increase sales revenues by up to 10%."
Net financial debt was reduced to EUR57.2 million from
EUR60.7 million. Orders on hand were up 20% to EUR1.2 billion.
The Group’s gross margin rose by 0.4 percentage points to 17.0%.
Besides higher capacity utilization, this also reflects the
continuous improvement of internal processes. At 3.5%, the
increase in administrative and selling expenses was held well
below the growth in sales revenues.
Positive Outlook Unchanged
For 2008, Duerr expects incoming orders on a level with last
year provided the general economic conditions and currency
situation do not take a decisive turn for the worse. Sales
revenues will probably increase by up to 10%.
Duerr forecasts a further strong improvement in earnings, to
which a higher gross margin and the earnings improvement
targeted in final assembly conveyor systems are expected to
contribute. As a result of the tax reform the effective tax
rate should not be more than 30% (2007: 39%) which will
additionally boost earnings. Duerr aims to hold cash flow at
least at the 2007 level. The company therefore expects further
improvements in net financial debt and liquidity.
About Duerr
Headquartered in Stuttgard, Germany, The Duerr Group
-- http://www.durr.com/en/-- supplies products, systems, and
services for automobile manufacturing. Duerr designs and builds
paint shops and final assembly plants.
The Duerr Group also operates in Czech Republic, France, U.K.,
Italy, Netherlands, Poland, Russia, Slovakia, Spain, Turkey,
Australia, Brazil, China, India, Japan, Mexico, South Africa,
South Korea and the U.S.A.
* * *
As reported in the TCR-Europe on March 3, 2008, Standard &
Poor's Ratings Services revised its outlook to positive from
stable on Duerr AG. S&P also affirmed its 'B' long-term
corporate credit rating on the group.
Duerr AG also carries B2 Corporate Family, B2 Probability of
Default and Caa1 Senior Subordinate ratings from Moody's
Investor Service. Moody's said the outlook is stable.
GENERAL MOTORS: Posts US$3.3 Bil. Net Loss in 2008 First Quarter
----------------------------------------------------------------
General Motors Corp. disclosed financial results for the first
quarter of 2008, marked by improved adjusted automotive
operating performance, rapid growth in emerging markets,
continued cost performance in GM North America (GMNA) operations
and liquidity of nearly US$24 billion, despite the impact of the
American Axle & Manufacturing Holdings Inc. strike on North
American operations and weakness in the U.S. auto industry.
GM reported a net loss of US$3.3 billion in the first quarter of
2008, compared with a net loss from continuing operations of
US$42 million in the year-ago quarter.
"We continue to leverage our global product portfolio to take
advantage of tremendous growth in key emerging markets, while at
the same time taking the appropriate actions to deal with the
challenging economic conditions in the U.S.," GM Chairman and
Chief Executive Officer, Rick Wagoner said.
Adjusted automotive earnings before taxes were US$392 million,
up US$161 million despite the significant impact of the American
Axle strike and weak U.S. auto industry (reported earnings
declined US$118 million). These positive results were driven by
strong combined earnings before taxes of US$1 billion in GM
Latin America, Africa and Middle East (GMLAAM), GM Asia Pacific
(GMAP) and GM Europe (GME), which more than offset a loss at
GMNA.
Excluding special items, GM posted an adjusted net loss of
US$350 million in the first quarter of 2008, reflecting losses
at GMAC and tax expenses. These results compare to an adjusted
net loss from continuing operations of US$10 million in the
first quarter of 2007.
The reported results for the first quarter of 2008 include
unfavorable special items totaling US$2.9 billion. The charges
include US$1.45 billion to record a non-cash partial impairment
of our equity investment in GMAC. Based on current market
pricing, GM concluded that the estimated fair value of the
common and preferred equity interests it holds in GMAC were
approximately US$1.45 billion less than GM's carrying value.
GM also took a non-cash charge of US$731 million to increase
GM's liability for estimated net costs associated with GM's
support of Delphi's bankruptcy and restructuring efforts. This
charge primarily results from updated estimates reflecting
uncertainty around the nature, value and timing of GM's
recoveries. In addition, GM recorded US$394 million in non-cash
tax-related valuation allowances related to deferred tax assets
in Europe, and US$324 million in charges related to
restructuring actions in North America and Europe.
Total revenue for the first quarter of 2008 was US$42.7 billion,
down slightly from US$43.4 billion in the year-ago quarter
primarily due to lower North America automotive and financial
services and insurance revenues. Automotive revenues outside of
North America were up over 20%, with strong growth in China,
Brazil, Russia and India.
GM Automotive Operations
Adjusted profits from GM's global automotive operations
improved, with first quarter 2008 earnings before tax of US$392
million on an adjusted basis (reported earnings before tax of
US$68 million), compared to US$231 million in the year-ago
period (reported earnings before tax of US$186 million).
As reported in the Troubled Company Reporter on April 25, 2008,
GM sold 2.25 million vehicles in the first quarter of 2008, down
less than 1% from 2.27 million units in the first quarter 2007,
with a record 64% of sales outside of the United States. Unit
sales outside GMNA were up 8% compared with the same quarter
last year. Robust sales in the first quarter in GM's GMLAAM and
GMAP regions, and improved sales in the GME region helped offset
a 10% unit decline in GMNA.
GMNA revenue for the first quarter 2008 was US$24.5 billion,
compared to US$28.1 billion in the year-ago period. The decline
in GMNA first quarter revenue was significantly impacted by the
lost production due to the American Axle strike. Other factors
include a softer U.S. market and planned actions to maintain
lean inventories. With the industry shift toward more fuel-
efficient vehicles, GM's most recently launched passenger cars
and crossovers, including the Cadillac CTS, GMC Acadia, Buick
Enclave and the all-new Chevrolet Malibu continue to perform
well in the marketplace.
The decline in GMNA first quarter earnings was more than
accounted for by the loss of 100,000 production units resulting
from the American Axle strike, which had an estimated impact to
earnings of US$0.8 billion. Other factors included lower
volumes resulting from a softer U.S. market and lower market
share, as well as shifts in product mix. Partially offsetting
the declines were favorable material and structural cost
performance and commodity hedging gains and foreign exchange.
GME Revenue was up 17% and adjusted earnings before tax improved
by US$137 million. GME's improved earnings for the first
quarter were driven by improved material cost performance,
commodity hedging gains and reduced warranty costs, which were
partially offset by negative foreign exchange and unfavorable
country mix. GME had record first-quarter sales volumes of
572,000 units.
Adjusted earnings before tax in the GMLAAM region more than
doubled in the first quarter of 2008, driven by continued strong
market growth and gains in GM market share in the region.
GMLAAM revenue was up over 33 percent and volumes were up 20%,
setting new first-quarter records for both unit sales and
revenue. In addition, Argentina, Egypt and North Africa each
set new quarterly sales records.
GMAP adjusted earnings before tax increased by 49%, driven by
strong volume and improvements in material cost performance,
which were partially offset by mix and pricing deterioration and
increased structural costs incurred to support growth. Revenue
and earnings before tax improved significantly due to the
overall volume gains, although market share was down slightly
primarily due to declines in China, Australia and Korea.
Cash and Liquidity
Cash, marketable securities, and readily-available assets of the
Voluntary Employees' Beneficiary Association trust totaled
US$23.9 billion on March 31, 2008, down from US$24.7 billion on
March 31, 2007. The change in liquidity reflects adjusted
negative operating cash flow of US$3.6 billion in the first
quarter 2008. The decrease was driven largely by lower
production in GMNA, including the impact of the American Axle
strike. Including undrawn, committed U.S. credit facilities of
approximately US$7 billion, GM has access to more than US$30
billion in liquidity.
Looking Forward
In light of the current state of the U.S. economy and automotive
industry, GM has revised its 2008 U.S. total industry seasonally
adjusted annual rate outlook to the mid to high 15 million unit
range, down from the low 16 million unit range. As a result of
the anticipated softer automotive industry, GM disclosed earlier
this week that it will eliminate a shift of production at four
assembly plants: Janesville, Wisconsin; Pontiac and Flint,
Michigan, and Oshawa, Ontario.
"We remain focused on taking the actions necessary to assure
GM's long-term success -- product excellence, leadership in
advanced propulsion technology, growth in emerging markets, and
accelerating the restructuring of our U.S. business to achieve
sustainable profitability," Mr. Wagoner said.
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2007, nearly 9.37 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's
OnStar subsidiary is the industry leader in vehicle safety,
security and information services.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 29, 2008, Moody's Investors Service changed the rating
outlook for General Motors Corporation to negative from stable,
but affirmed the company's B3 corporate family rating and its
SGL-1 speculative grade liquidity rating.
As reported on March 26, 2008, Standard & Poor's Ratings
Services placed the ratings on General Motors Corp., American
Axle & Manufacturing Holdings Inc., Lear Corp., and Tenneco Inc.
on CreditWatch with negative implications. The CreditWatch
placement reflects S&P's decision to review the ratings in light
of the extended American Axle (BB/Watch Neg/--) strike.
The work stoppage that began Feb. 25 at American Axle's U.S.
United Auto Workers plants has forced closure of many GM
(B/Watch Neg/B-3) plants, as well as plants of certain GM
suppliers. The strike began after the expiration of the four-
year master labor agreement with American Axle. Although S&P
still expects American Axle and the UAW to reach an agreement
that will reflect more competitive labor costs, the timing is
unknown.
To resolve the CreditWatch listings, S&P's will assess the
strike's impact on the companies' credit profiles, particularly
liquidity, once production resumes. S&P could lower the ratings
any time prior to a resolution of the Axle strike if the
liquidity of the companies becomes compromised, although
downgrades are not likely for another several weeks.
As reported in the Troubled Company Reporter-Latin America on
Feb. 29, 2008, Fitch Ratings has affirmed the Issuer Default
Rating of General Motors at 'B', with a Rating Outlook Negative.
PRIDE INTERNATIONAL: Bags Five-Year Deal for Further Expansion
--------------------------------------------------------------
Pride International Inc. has been awarded a five-year contract
from a subsidiary of BP for Pride's advanced-capability, ultra-
deepwater drillship that is scheduled for delivery in mid-2010.
The unit is being constructed at the Samsung Heavy Industries,
Co. Ltd. (SHI) shipyard in Geoje, South Korea on a fixed-price
basis and is expected to be initially utilized in the U.S. Gulf
of Mexico, with further operations possible on BP's other global
deepwater interests. The drillship is one of three Pride ultra-
deepwater units under construction at the SHI shipyard. All
three units have now been awarded contracts with durations of at
least five years.
The five-year contract is expected to commence during the fourth
quarter of 2010, following the completion of shipyard
construction, mobilization of the rig to an initial operating
location and customer acceptance testing. Revenues that could
be generated over the five-year contract term, excluding
revenues for the reimbursement of costs associated with the
mobilization of the rig, are approximately US$984 million. The
contract also provides for a cost escalation provision effective
from April 30, 2008 through the five-year contract term.
The rig will be one of the most advanced ultra-deepwater
drilling and completions units in the offshore industry, capable
of drilling in water depths of up to 12,000 feet (equipped for
10,000 feet) and drilling to a total vertical depth of up to
40,000 feet. The rig will offer a variable deck load of 20,000
metric tons, dynamic positioning in compliance with DPS-3
certification, expanded drilling fluids capacity, a 1,000 ton
capacity top drive and living quarters for up to 200 personnel.
The rig will be modified from the original design to improve on
its already extensive off-line operational capabilities. Design
modifications include the addition of a 160-metric ton active-
heave compensated construction crane that allows the rig to
perform subsea construction activities, such as the placement of
production trees and manifolds in up to 10,000 feet of water
without obstructing the critical path of drilling deepwater
wells, and an additional 2,000 feet of marine riser. The unit
will not initially be functional as a dual-activity rig, but can
be modified to add this functionality in the future. Pride has
previously purchased the license for the use of dual-activity
from the patent holder. Including the modifications requested
by our customer to the rig's technical features, commissioning
and system-integrated testing, the company has revised the
estimated cost to construct the rig to approximately US$725
million, excluding capitalized interest, and expects to fund the
construction of the unit with available cash and borrowings.
Louis A. Raspino, President and Chief Executive Officer of Pride
International, Inc., stated, "With this five-year contract
award, Pride has further expanded its service to BP to now
include two advanced-capability, ultra-deepwater drillships
currently under construction and expected to begin operations in
the U.S. Gulf of Mexico during 2010, the management of drilling
activities on three deepwater production facilities in the U.S.
Gulf of Mexico and deepwater drilling operations in the Eastern
Mediterranean. This contract award allows us to further build a
greater presence in the ultra-deepwater U.S. Gulf of Mexico, a
strategically important and technically challenging region."
Pride International, Inc., headquartered in Houston, Texas, is
one of the world's largest offshore drilling contractors,
operating a fleet of 64 rigs, including two deepwater
drillships, 12 semisubmersible rigs, 28 jackups, 10 platform
rigs, five managed deepwater rigs and seven Eastern Hemisphere-
based land rigs. The company also has three ultra-deepwater
drillships under construction with expected deliveries in 2010
and 2011.
Headquartered in Houston, Texas, Pride International Inc.
(NYSE: PDE) -- http://www.prideinternational.com/-- provides
onshore and offshore contract drilling and related services in
more than 25 countries, operating a diverse fleet of 277 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 28 jackups, 16 tender-assisted, barge and platform rigs,
and 214 land rigs. The company maintains worldwide operations
in France, Mexico, Kazakhstan, India, and Brazil, among others.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 29, 2007, Fitch Ratings currently maintained these ratings
for Pride International Inc.: Issuer Default Rating at 'BB';
Senior unsecured at 'BB'; Senior secured bank facility at
'BBB-'; and Senior convertible notes at 'BB'. Fitch said the
Rating Outlook is Stable.
SADIA SA: Consolidated Net Income Doubles to BRL216MM in 1Q 2008
----------------------------------------------------------------
Sadia S.A. reported consolidated net income of BRL216.14 million
in the three months ended March. 31, 2008, more than twice the
BRL96.15 million earned in the same quarter in 2007.
Net of sales deductions, Sadia's consolidated operating revenues
for the Jan.-Mar. 2008 period aggregated BRL2.29 billion, up 21%
compared to that earned in the corresponding three-month period
last year.
With cost of goods sold of BRL1.74 billion, the company booked a
gross profit of BRL554.07 million in the latest quarter under
review. The bulk of the operating expenses was from selling
expenses, which totaled BRL355.45 million.
Consolidated balance sheet as of March 31, 2008, shows total
assets of BRL8.79 billion, total liabilities of BRL5.68 billion,
minority interest in subsidiaries of BRL29.06 million,
resulting in a shareholders' equity of BRL3.07 billion.
A copy of the company's interim results for the quarter ended
March 31, 2008, is available for free at:
http://ResearchArchives.com/t/s?2b68
Headquartered in Sao Paulo, Brazil, Sadia S.A. --
http://www.sadia.com-- operates in the agro industrial and food
processing sectors in Brazil and primarily produces a range of
processed products, poultry, and pork. The company distributes
around 1,000 different products through distribution and sales
centers located in Brazil, China, Japan, and Italy, among
others.
* * *
As reported by the Troubled Company Reporter-Latin America on
Feb. 26, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Sadia S.A. The
outlook is stable.
SANYO ELECTRIC: Matsushita Tie-Up Seen, Yomiuri Shimbun Says
------------------------------------------------------------
Sanyo Electric Co. is considering a business and capital tie-up
with Matsushita Electric Industrial Co. in an effort to emerge
from a long business slump, The Yomiuri Shimbun reports.
According to the report, the plan would involve three finance
companies with a sizable number of shares in Sanyo--including
Sumitomo Mitsui Banking Corp.--divesting those shares to
Matsushita.
In a media release dated April 28, 2008, Sanyo stated that media
reports about a possible merger of operations between Matsushita
and Sanyo were not announced by either company and are untrue.
For the three-month period ended December 31, 2007, Sanyo
reported JPY12,778 million in net income on net sales of
JPY597,165 million, compared to a net loss of JPY7,295 million
on net sales of JPY588,862 million for the comparable quarter
in 2006.
Sanyo's balance sheet as of December 31, 2007, showed
total assets of JPY1,866,682 million, total liabilities of
JPY1,502,725 million, and total shareholders' equity of
JPY337,732 million.
About Sanyo Electric
Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products. The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.
* * *
In March 2, 2007, Fitch Ratings placed Sanyo Electric Co. Ltd.'s
BB+ long-term foreign and local currency issuer default and
senior unsecured ratings on rating watch negative.
The company also carries Standard & Poor's 'BB-' long-term
corporate credit rating.
THERMADYNE HOLDINGS: To Hold Annual Meeting on Tuesday
------------------------------------------------------
Thermadyne Holdings Corp. will hold its Annual Meeting of
Stockholders at 10 a.m., Central Daylight Savings Time, on
Tuesday, May 6, 2008, Chairman and Chief Executive Officer Paul
D. Melnuk disclosed in a regulatory filing.
The meeting will be held at the company's corporate headquarters
at 16052 Swingley Ridge Road, Suite 300 in St. Louis, Missouri.
At the meeting, the stockholders will be asked to:
(1) elect a board of directors;
(2) approve the Amended and Restated 2004 Stock Incentive
Plan;
(3) ratify the appointment of KPMG LLP as our independent
registered public accountants for the year ending
Dec. 31, 2008; and
(4) transact any other business properly presented at the
meeting.
Mark A. McColl, Interim General Counsel and Corporate Secretary,
added that only stockholders of record at the close of business
on March 10, 2008, will be allowed to vote at the meeting.
About Thermadyne
Headquartered in St. Louis, Missouri, Thermadyne Holdings Corp.
(NASDAQ: THMD) -- http://www.Thermadyne.com/-- manufactures and
markets metal cutting and welding products and accessories under
a variety of leading premium brand names including Victor(R),
Tweco(R) / Arcair(R), Thermal Dynamics(R), Thermal Arc(R),
Stoody(R), TurboTorch(R), Firepower(R) and Cigweld(R).
Thermadyne has subsidiaries outside the United States which
inlucdes, among others, Australia, Philippines, Malaysia,
Indonesia, England, Italy, Japan, Mexico and Brazil.
THERMADYNE HOLDINGS: S&P Lifts Corporate Credit Rating to 'B-'
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Thermadyne Holdings Corp. to 'B-' from 'CCC+'. At the
same time, S&P raised the ratings on the subordinated notes to
'CCC' from 'CCC-'.
"This action results from the improved performance at the
company and from adequate cash and availability on its credit
facility," said Standard & Poor's credit analyst John Sico.
S&P's previous concerns regarding material weaknesses that had
caused delays in Thermadyne's financial reporting have moderated
as the company has taken steps to alleviate this issue. The
company is current on its filings with the SEC. The outlook is
positive.
The ratings on Thermadyne reflect the company's aggressive
financial profile, weak but improving cash flow protection, and
still somewhat limited financial flexibility. Thermadyne's
business risk profile is weak because of its participation in
the large, fragmented, intensely competitive, and cyclical
global welding-equipment industry. Thermadyne's current
operating and financial performance reflect improving cost
controls and inventory levels, and somewhat better product-
pricing. The company has invested heavily in working capital to
fund seasonal business needs. It has exposure to raw-material
prices -- namely for copper, brass, and steel -- which has hurt
its operating performance. Thermadyne has been addressing these
issues and is working to alleviate concerns regarding the
effectiveness of internal control over financial reporting.
S&P could raise the ratings one notch in the near term if the
company continues to generate free cash flow to reduce debt.
The ratings do not incorporate any acquisitions or share
repurchases. Conversely, S&P could revise the outlook to
negative or lower the ratings if market conditions deteriorate
and Thermadyne's performance deteriorates. As of Dec. 31, 2007,
Thermadyne still had a material weakness in its financial
disclosure controls and procedures. However, the company is
making progress toward resolving this weakness.
Headquartered in St. Louis, Missouri, Thermadyne Holdings Corp.
(NASDAQ: THMD) -- http://www.Thermadyne.com/-- manufactures and
markets metal cutting and welding products and accessories under
a variety of leading premium brand names including Victor(R),
Tweco(R) / Arcair(R), Thermal Dynamics(R), Thermal Arc(R),
Stoody(R), TurboTorch(R), Firepower(R) and Cigweld(R).
Thermadyne has subsidiaries outside the United States which
inlucdes, among others, Australia, Philippines, Malaysia,
Indonesia, England, Italy, Japan, Mexico and Brazil.
==========================
C A Y M A N I S L A N D S
==========================
ABC CAYMAN: Sets Final Shareholders Meeting for May 7
-----------------------------------------------------
ABC Cayman Banking Ltd. will hold its final general meeting on
May 7, 2008, at 10:00 a.m. at Banco ABC Brasil S.A., Avenida
Presidente Juscelion Kubitschek, 1400 – 4th Floor, Sao Paulo,
Brazil.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the liquidator of the company
to retain the records of the company for a
period of six years from the dissolution
of the company, after which they may be
destroyed.
ABC Cayman's shareholders agreed on March 14, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Anis Chacur Neto
Attn: Kim Charaman
Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034, Grand Cayman KYI-1102
Cayman Islands
Telephone: (345) 949 8455
Fax: (345) 949 8499
APPLEGARTH & CO: Proofs of Claim Filing Deadline Is May 8
---------------------------------------------------------
Applegarth & Co Limited's creditors have until May 8, 2008, to
prove their claims to RTB 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.
Applegarth & Co's shareholder decided 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:
RTB Secretaries Limited
c/o Rothschild Trust Cayman Limited
P.O. Box 10129, 5th Floor Citrus Grove
George Town, Grand Cayman KY1-1002
Cayman Islands
Telephone: (345) 946 7033
Fax: (345) 946 7043
BASIS YIELD: US Court Dismisses Firm' Bankruptcy Protection
-----------------------------------------------------------
Bloomberg News reports that U.S. Bankruptcy Judge Robert Gerber
has approved Basis Yield Alpha Fund's plea for the dismissal of
its request for protection of its U.S.-based assets under
Chapter 15 of the U.S. Bankruptcy Code.
Bloomberg relates that Australia-based parent Basis Capital
Funds Management Ltd had sought the protection against U.S.
lawsuits as it liquidated its funds in the Cayman Islands.
As reported in the Troubled Company Reporter-Latin America on
April 22, 2008, Hugh Dickson, Stephen John Akers, and Paul
Andrew Billingham, foreign representatives of Basis Yield Alpha
Fund (Master), sought the U.S. Bankruptcy Court for the Southern
District of New York to dismiss their request for protection of
Basis Yield's U.S.-based assets under Chapter 15. The Foreign
Representatives also sought dismissal of their request for
recognition of Basis Yield's insolvency proceeding pending in
the Grand Court of the Cayman Islands.
Bloomberg notes that Justice Gerber said in that he authorized
Basis Yield's request to withdraw its case as no objection was
made to the motion and no new evidence was presented. According
to the report, Basis Yield had to prove that it has enough
business in the Cayman Islands to qualify for a creditor
protection under Chapter 15.
Basis Capital Funds Management Ltd. manages and advises multi
strategy, relative value and arbitrage funds for Australian
domestic and international investors.
The Troubled Company Reporter-Asia Pacific reported on July 30,
2007, that the Basis Field Fund and Basis Aust-Rim Fund ran
into trouble by investing in the unrated, riskiest portions of
collaterized debt obligations. These portions also known by
bankers as "toxic waste" are first in line for any losses when
borrowers fall short on mortgage payments and have hired
Blackstone Group LP as an adviser to help avoid a fire of sale
of assets. Blackstone will advise the hedge fund firm "to
prevent adverse pricing and selling of assets."
CRESCENT ARENA: Sets Final Shareholders Meeting for May 7
---------------------------------------------------------
Crescent Arena Limited will hold its final general meeting on
May 7, 2008, at 10:00 a.m. at Close Brothers (Cayman) Limited,
4th Floor Harbour Place, George Town, Grand Cayman.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the liquidator of the company
to retain the records of the company for a
period of six years from the dissolution
of the company, after which they may be
destroyed.
Crescent Arena's shareholder decided on March 20, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Linburgh Martin
Attn: Neil Gray
Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034, Grand Cayman
Telephone: (345) 949 8455
Fax: (345) 949 8499
FRESH DEL MONTE: Richard Contreras Replaces John Inserra as CFO
---------------------------------------------------------------
Fresh Del Monte Produce Inc. has appointed Richard Contreras,
Senior Vice President, Finance, to succeed John F. Inserra who
is retiring as the company’s Executive Vice President, Chief
Financial Officer. Mr. Contreras will assume the role of Senior
Vice President, Chief Financial Officer on May 2, 2008.
Mr. Inserra’s retirement was previously announced by the Company
on Jan. 14, 2008 and will be effective May 1, 2008.
“We are excited to introduce Richard as the new Senior Vice
President, Chief Financial Officer for Fresh Del Monte Produce,”
said Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief
Executive Officer. “Richard brings to his new position
extensive knowledge in financial management and business
leadership, along with a nine-year history with Fresh Del Monte
Produce. We are confident that with his finance experience and
proven track record, he will be a great addition to our highly
experienced management team.”
Mr. Contreras joined the company as Controller, North America in
1999, and has held various regional and corporate accounting and
finance roles of increasing responsibility over the past nine
years, including Vice President, Budgeting and Forecasting and
Vice President, Finance and Administration for North America.
Prior to joining the Company, Mr. Contreras started his career
with Ernst & Young, LLP in 1989, and spent 10 years there in
various audit and accounting positions. Mr. Contreras is a
Certified Public Accountant and obtained his Bachelor's degree
in Accounting from Florida International University.
Based in the Cayman Islands, Fresh Del Monte Produce Inc. --
http://www.freshdelmonte.com/-- is one of the world's leading
vertically integrated producers, marketers and distributors of
high-quality fresh and fresh-cut fruit and vegetables, as well
as a leading producer and distributor of prepared fruit and
vegetables, juices, beverages, snacks and desserts in Europe,
the Middle East and Africa. Fresh Del Monte markets its
products worldwide under the Del Monte(R) brand, a symbol of
product quality, freshness and reliability since 1892.
Del Monte Fresh Produce Company has operations in Chile, Brazil,
France, Philippines, and Korea.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 22, 2007, Standard & Poor's Ratings Services affirmed its
'BB-' corporate credit rating on Fresh Del Monte Produce Inc.,
and removed the rating from CreditWatch, where it was placed
with positive implications on Nov. 1, 2007. S&P said the
outlook is stable.
HERBALIFE LTD: Reports US$62.4 Mil. Net Income in First Quarter
---------------------------------------------------------------
Herbalife Ltd. reported first quarter net sales of
US$604.4 million, an increase of 19.0 percent compared to the
same period of 2007. This record performance was attributable
to double-digit growth in several of the company’s top
countries; the U.S. up 14.3 percent, Taiwan up 14.8 percent,
Italy up 29.7 percent, China up 111.5 percent, Japan up 10.4
percent, and Spain up 30.2 percent in each case as compared to
the same period in 2007, including a 710 basis point favorable
impact from currency fluctuations. The company’s Chairman and
Chief Executive Officer Michael O. Johnson, said, “We are
pleased to report our 17th consecutive quarter of double-digit
growth and record net sales, as all five of our regions reported
positive sales growth, reflecting the strong performance of our
independent distributor organization. Herbalife’s continued
success reflects geographic balance among our portfolio of 65
markets coupled with our distributor’s transition to a daily
consumption retail model.”
For the quarter ended March 31, 2008, the company reported net
income of US$62.4 million compared to US$41.2 million in the
first quarter of 2007. The increase in net income was primarily
attributable to double-digit net sales growth, expansion in
operating profit margins, and a lower effective tax rate.
During the first quarter 2008, total Sales Leaders increased
11.9 percent to 351,448 and new Sales Leaders increased 10.4
percent to 48,805 versus the first quarter of 2007. The
company’s President’s Team membership increased 12.9 percent to
1,132 members and the company’s prestigious Chairman’s Club
increased 16.7 percent to 35 members. “Double-digit growth of
our Sales Leaders at all recognition levels of our marketing
plan demonstrates the vitality we have throughout the
distributor organization. Close collaboration between our
independent distributors and our management team, coupled with
strong distributor leadership, provides the foundation for our
continued strong topline sales performance,” added Mr. Johnson.
During the first quarter, the company repurchased 0.4 million of
its common shares through open market transactions at an average
price of $39.28 for an aggregate cost of US$17.7 million. Since
this share repurchase program was authorized in April 2007
through first quarter 2008, the company has repurchased 9.5
million shares at an aggregate cost of US$383.5 million, which
is 85 percent of the US$450 million authorization, or
approximately 13 percent of its common stock, outstanding at the
end of March 2008.
During the first quarter, the company invested approximately
US$25 million in capital expenditures, primarily related to
enhancements to its management information systems, including
the roll out of its Oracle ERP system, and additional
infrastructure investments to improve distributor service levels
in high growth markets.
First Quarter 2008 Business Highlights
The company supported the development and training of its
distributors during the first quarter by hosting multiple
events, including over 20,000 distributors at the South America
Extravaganzas, as well as training events in the North America,
EMEA, Mexico and Central America and Asia Pacific regions.
In March, Herbalife hosted its annual global Herbalife Honors
event in Singapore where 1,100 President’s Team members from
around the world met and shared best practices and Herbalife
distributors received approximately US$34 million in Mark Hughes
Bonus awards related to 2007.
Herbalife Ltd. (NYSE: HLF) -- http://www.herbalife.com/-- is a
global network marketing company that sells weight management,
nutritional supplement, energy & fitness products and personal
care products through a network of over 1.7 million independent
distributors where the company currently sells the products
through retail stores and an employed sales force. The company
reports in the U.S., Canada, Jamaica, Mexico, Costa Rica, El
Salvador, Panama, the Dominican Republic, Brazil, Europe,
Africa, New Zealand and Australia, among others. Herbalife was
founded in 1980 and is based in Grand Cayman, Cayman Islands.
* * *
In April 2007, Standard & Poor's Ratings Services said that its
'BB+' corporate credit rating on Herbalife Ltd. remains on
CreditWatch with negative implications following the company's
announcement that the company's board of directors has rejected
a bid to be acquired by Whitney V L.P. The board indicated that
although it views Whitney's bid as too low, it would consider an
improved offer.
NORANDA HIGHLANDS: Will Hold Final Shareholders Meeting on May 7
----------------------------------------------------------------
Noranda Highlands, Inc., will hold its final general meeting on
May 7, 2008, at 10:00 a.m. at Close Brothers (Cayman) Limited,
4th Floor Harbour Place, George Town, Grand Cayman.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the liquidator of the company
to retain the records of the company for a
period of six years from the dissolution
of the company, after which they may be
destroyed.
Noranda Highlands' shareholder decided on March 20, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Linburgh Martin
Attn: Neil Gray
Close Brothers (Cayman) Limited
Fourth Floor, Harbour Place
P.O. Box 1034, Grand Cayman
Telephone: (345) 949 8455
Fax: (345) 949 8499
SENIOR FUNDING: Sets Final Shareholders Meeting for May 7
---------------------------------------------------------
Senior Funding Limited will hold its final general meeting on
May 7, 2008, at 10:00 a.m. at the office of the company.
These matters will be taken up during the meeting:
1) accounting of the wind-up process, and
2) authorizing the liquidator of the company
to retain the records of the company for a
period of six years from the dissolution
of the company, after which they may be
destroyed.
Senior Funding's shareholders agreed on March 18, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Westport Services Ltd.
Attn: Evania Ebanks
Paget-Brown Trust Company Ltd.
Boundary Hall, Cricket Square
P.O. Box 1111, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345)-949-5122
Fax: (345)-949-7920
TEQUESTA CORE: Proofs of Claim Filing Deadline Is May 6
-------------------------------------------------------
Tequesta Core Mortgage Fund Ltd.'s creditors have until
May 6, 2008, to prove their claims to Lawrence Edwards and David
Walker, 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.
Tequesta Core's shareholder decided on April 1, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Lawrence Edwards and David Walker
Attn: Skye Quinn
PwC Corporate Finance & Recovery (Cayman) Limited
P.O. Box 258, 5th Floor Strathvale House
90 North Church Street, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 914 8678
Fax: (345) 949 4237
TEQUESTA ENHANCED: Proofs of Claim Filing Is Until May 6
--------------------------------------------------------
Tequesta Enhanced Convexity Fund Ltd.'s creditors have until
May 6, 2008, to prove their claims to Lawrence Edwards and David
Walker, 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.
Tequesta Enhanced's shareholder decided on March 20, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Lawrence Edwards and David Walker
Attn: Skye Quinn
PwC Corporate Finance & Recovery (Cayman) Limited
P.O. Box 258, 5th Floor Strathvale House
90 North Church Street, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 914 8678
Fax: (345) 949 4237
TEQUESTA ENHANCED CONVEXITY: Claims Filing Deadline Is May 6
------------------------------------------------------------
Tequesta Enhanced Convexity Master Fund Ltd.'s creditors have
until May 6, 2008, to prove their claims to Lawrence Edwards
and David Walker, 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.
Tequesta Enhanced's shareholder decided on April 1, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Lawrence Edwards and David Walker
Attn: Skye Quinn
PwC Corporate Finance & Recovery (Cayman) Limited
P.O. Box 258, 5th Floor Strathvale House
90 North Church Street, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 914 8678
Fax: (345) 949 4237
TEQUESTA MORTGAGE: Proofs of Claim Filing Is Until May 6
--------------------------------------------------------
Tequesta Mortgage Fund Ltd.'s creditors have until May 6, 2008,
to prove their claims to Lawrence Edwards and David Walker, 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.
Tequesta Mortgage's shareholder decided on March 25, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Lawrence Edwards and David Walker
Attn: Skye Quinn
PwC Corporate Finance & Recovery (Cayman) Limited
P.O. Box 258, 5th Floor Strathvale House
90 North Church Street, George Town
Grand Cayman, Cayman Islands
Telephone: (345) 914 8678
Fax: (345) 949 4237
XINEX CO: Proofs of Claim Filing Deadline Is May 6
--------------------------------------------------
Xinex Co., Ltd.'s creditors have until May 6, 2008, to prove
their claims to Dong Jun Chung, 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.
Xinex Co.'s shareholder decided on March 31, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Dong Jun Chung
Attn: Alan G. de Saram
Charles Adams, Ritchie & Duckworth
P.O. Box 709, Zephyr House
Mary Street, George Town
Grand Cayman KY1-1107, Cayman Islands
Telephone: 949-4544
Fax: 949-8460
=========
C H I L E
=========
CHEMTURA CORP: Posts US$21 Mil. Net Loss in 2008 First Quarter
--------------------------------------------------------------
Chemtura Corporation reports a net loss of US$21 million, or
US$0.09 per share, for the first quarter of 2008 and net
earnings on a managed basis of US$23 million, or US$0.10 per
share.
“Our focus in the first quarter has been on execution.
Performance was in line with our expectations and we delivered
on cost reduction. We did a better job in managing the
continuing inflation in raw material costs and we completed a
number of our portfolio realignment projects,” said Robert L.
Wood, chairman and CEO.
“We saw the benefit of the diversity in our portfolio this
quarter. Our Crop Protection business delivered a very strong
quarter with operating income up 50% on 10% growth in sales
revenues. This offset a flat year-on-year performance from our
Performance Specialties business due to the timing of the
recovery of raw material cost increases and higher manufacturing
costs. Consumer Products was able to increase profitability
despite sales 8% lower than last year. Operating profit for
Polymer Additives was slightly down from last year but up 20%
from the fourth quarter of 2007.
“With our cost reduction actions taking hold, SGA&R was US$15
million or 13% lower than in the first quarter of 2007 at 11% of
sales compared to 13% a year ago. Gross profit margins at 20%,
down from 23% a year ago, reflect dramatic impact of raw
material increases over the last year. While we have not yet
recovered the ground lost last year, our businesses did a great
job in recovering the raw material cost increases in the last
quarter.
“The first quarter saw a flurry of activity related to our
portfolio realignment. We completed the divestiture of our
oleochemicals business, reducing our exposure to the volatility
in the cost of natural oils and fats, and closed the sale of our
fluorine business. We acquired our partners’ interests in our
Baxenden urethanes chemicals joint venture and our antimony
joint venture. Yesterday, we announced an agreement with
Baerlocher for the manufacture of certain heat stabilizer
products used in PVC applications. The oleochemicals, antimony
and heat stabilizer actions all form part of our continuing
efforts to improve the positioning and performance of our
Polymer Additives business segment. The Baxenden purchase will
permit us to integrate our global urethane chemicals activities
and leverage our opportunities for growth.
“The second quarter is historically our strongest quarter of the
year and a quarter in which we expect to demonstrate earnings
growth despite the uncertainties of the global economy. Our
businesses remain focused on tightly managing the impacts of raw
material cost increases and improving manufacturing operations.”
First Quarter 2008 Business Segment Highlights
Polymer Additives revenues decreased US$2 million compared with
the first quarter of 2007. The divestiture of the oleochemicals
and organic peroxides businesses reduced revenues by US$9
million and US$5 million, respectively. Additionally, sales
volume decreased by US$12 million, primarily related to reduced
sales of plastic antioxidants. These reductions were partially
offset by favorable foreign currency translation of US$12
million and higher selling prices of US$12 million. Operating
profit on a managed basis declined 4% or US$1 million compared
with the first quarter of 2007, primarily due to the net impact
of raw material and energy cost increases, which were partially
offset by the benefit of higher selling prices and improved
product mix. On a GAAP basis, operating profit declined 68% or
US$17 million and included the impact of US$14 million of
accelerated depreciation of property, plant and equipment and
US$2 million of accelerated recognition of asset retirement
obligations.
Performance Specialties revenues increased 21% or US$44 million
compared with the first quarter of 2007 but operating profit on
a managed basis was unchanged from the first quarter of 2007.
The revenue increase was primarily due to the acquisition of
Kaufman of US$20 million, increased sales volumes of US$16
million, higher selling prices of US$4 million and favorable
foreign currency translation of US$4 million. Operating profit
benefited from the Kaufman acquisition, higher selling prices
and improved product mix. However, these benefits were offset
by increased raw material and energy costs, manufacturing and
freight cost variances and the impact of the stronger Canadian
dollar. On a GAAP basis, operating profit decreased 4% or US$1
million and included a US$1 million impact from the accelerated
depreciation of property, plant and equipment.
Consumer Products revenues declined 8% or US$9 million compared
with the first quarter of 2007. The decline in sales is due to
lower seasonal demand from the U.S. mass market channel for
recreational and household products, and lower international
demand than the first quarter of 2007. These impacts were
partially offset by higher selling prices and the benefit of
favorable foreign exchange translation. Operating profit rose
150% or US$3 million primarily due to the net benefit of
favorable manufacturing efficiencies.
Crop Protection revenues increased 10% or US$8 million compared
with the first quarter of 2007. The increase in sales was
primarily from European markets. Operating income rose 50% or
US$7 million in the first quarter as compared with the same
quarter of 2007 largely from improvements in product mix,
volume, reductions in selling, general and administrative, and
research and development expenses and favorable foreign currency
translation.
Corporate expense for the quarter was US$32 million, which
included US$10 million of amortization expense related to
intangibles and US$7 million relating to the correction of
accounting treatment for an assumed lease that was not
identified at the time of the merger. Corporate expense in the
first quarter of 2007 was US$23 million, which included US$9
million of amortization expense related to intangibles.
First Quarter 2008 Significant Transactions and Events
On Jan. 31, 2008, the company completed the sale of its fluorine
chemical business located at the Company's El Dorado, Arkansas
facility. The fluorine chemical business had revenue of
approximately US$49 million in 2007. The fluorine chemical
business is reported as a discontinued operation in the
accompanying consolidated financial statements.
On Feb. 29, 2008, the Company completed the sale of its
oleochemicals business. The oleochemicals business had revenue
of approximately US$175 million in 2007. Proceeds from the
transaction were used to reduce debt.
On Feb. 29, 2008, Chemtura acquired the remaining stock of
Baxenden Chemicals Limited Plc. Increasing our ownership to
100%. Chemtura previously held 53.5% of Baxenden’s stock.
On March 12, 2008, the company purchased the remaining 50%
interest in GLCC Laurel, LLC.
On April 30, 2008, the company announced it had entered into an
agreement with Baerlocher for the manufacture of certain heat
stabilizers used in PVC.
As of March 31, 2008 the company employed 5,049 people compared
to 5,144 as of Dec. 31, 2007. The reduction reflects the net
effect of the divestitures of the oleochemicals and fluorine
businesses and the benefit of restructuring actions offset by
the addition of 284 employees as a result of the acquisitions of
Baxenden and GLCC Laurel.
First Quarter Results - GAAP
Revenue for the quarter was US$909 million, or 2% above first
quarter 2007 revenue of US$889 million. The increase in revenue
was attributable to US$24 million from favorable foreign
exchange translation, US$19 million from higher selling prices
and US$20 million from the Kaufman acquisition. The increase
was partially offset by US$36 million from the impact of the
divestitures of the oleochemicals business, organic peroxides
business and Celogen(R) foaming agents product line and US$7
million impact from product mix.
Gross profit decreased US$18 million compared with the same
period of 2007. The decrease in gross profit resulted from
US$31 million in higher raw material and energy costs, US$7
million relating to the correction of accounting treatment for
an assumed lease that was not addressed at the time of the
merger and other cost increases of US$4 million, offset by US$19
million from higher selling prices, US$4 million contribution
from the Kaufman acquisition and US$1 million benefit from
favorable manufacturing efficiencies.
Operating profit decreased US$17 million in the first quarter of
2008 as compared with the same quarter last year. The decrease
in operating profit resulted from a US$18 million decrease in
gross profit discussed above, US$23 million from the loss on
sale of the oleochemicals business and US$6 million increase in
depreciation and amortization primarily due to accelerated
depreciation of property, plant and equipment, offset by a US$15
million decrease in SGA&R, US$12 million decrease in antitrust
costs and a US$3 million decrease in facility closures,
severance and related costs.
Other income, net, of US$14 million for the quarter primarily
reflects non-recurring foreign exchange gains resulting from the
over-hedging of two inter-company loans.
The loss from continuing operations for the first quarter of
2008 was US$21 million, or US$0.09 per share, compared with a
loss of US$20 million, or US$0.08 per share, for the first
quarter of 2007. The increase in the loss primarily reflects
the US$17 million decrease in operating profit discussed above,
partially offset by a US$12 million increase in other income,
net, US$3 million decrease in interest expense and US$1 million
decrease in income tax expense.
Earnings from discontinued operations were not material for the
first quarter of 2008 and reflect that the fluorine business was
sold on January 31, 2008 and only provided one month of
contribution in the quarter. Earnings from discontinued
operations for the first quarter of 2007 were US$5 million (net
of US$2 million of tax) and reflecting the contribution from the
EPDM, fluorine and optical monomers businesses that have been
subsequently sold.
In the first quarter of 2007, the gain on sale of discontinued
operations of US$2 million (net of US$1 million of tax)
represents the final contingent earn-out proceeds related to the
sale of the OrganoSilicones business in 2003.
First Quarter Managed Basis Results
On a managed basis, first quarter 2008 gross profit was US$186
million, or 20% of net sales, as compared with first quarter
2007 managed basis gross profit of US$205 million, or 23% of net
sales.
On a managed basis, first quarter 2008 operating profit was
US$41 million, or 5% of net sales, as compared with first
quarter 2007 managed basis operating profit of US$43 million, or
5% of net sales.
Earnings from continuing operations before income taxes on a
managed basis in 2008 and 2007 exclude pre-tax charges of US$47
million and US$32 million, respectively, primarily related to
accelerated depreciation of property, plant and equipment, loss
on sale of businesses, antitrust costs, facility closures,
severance and related costs and accelerated recognition of asset
retirement obligations.
Chemtura’s managed basis tax rate of 35% represents the expected
effective tax rate for the Company’s core operations. The
company has chosen to apply this rate to pre-tax income on a
managed basis to better reflect underlying operating
performance.
Earnings from discontinued operations on a managed basis
principally reflect the contribution of the EPDM, optical
monomers and fluorine businesses of US$5 million for the quarter
ended March 31, 2007.
Cash Flows - GAAP
Net cash provided by operations in the first quarter of 2008 was
US$16 million as compared with net cash used in operations of
US$31 million in 2007. The change is primarily due to an
increase in securitized receivables during the three months
ended March 31, 2008 as compared to the three months ended
March 31, 2007.
The company’s accounts receivable securitization programs
totaled US$337 million as of March 31, 2008, US$239 million as
of Dec. 31, 2007 and US$328 million as of March 31, 2007.
At March 31, 2008, the company’s inventory balance of US$707
million was increased by the foreign currency translation impact
of the weakening in the U.S. dollar. At the same exchange rates
that applied as of December 31, 2007, the value of inventories
as of March 31, 2008 would have been US$695 million.
Capital expenditures for the first quarter of 2008 were US$23
million compared with US$20 million in 2007. The company
currently anticipates capital expenditures to be US$165 million
in 2008, which includes US$25 million related to the
consolidation of its legacy ERP systems onto a single instance
of SAP.
The company’s total debt as of March 31, 2008 was US$1,092
million as compared with US$1,063 million as of December 31,
2007. Cash and cash equivalents were US$115 million as of
March 31, 2008 compared to US$77 million as of December 31,
2007.
About Chemtura Corporation
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- manufactures and
markets specialty chemicals, crop protection products, and pool,
spa and home care products. The company has subsidiaries in the
United Kingdom, Netherlands, Australia, China, Japan, Chile and
Mexico, among others.
* * *
In December 2007, Moody's Investors Service placed Chemtura
Corporation's corporate family rating of Ba2 under review for
possible downgrade after reports that its "board of directors
has authorized management to consider a wide range of strategic
alternatives available to the company to enhance shareholder
value."
Standard & Poor's Ratings Services similarly placed its 'BB+'
corporate credit and senior unsecured debt ratings of Chemtura
Corp. on CreditWatch with developing implications.
CHEMTURA CORP: Annual Stockholders Meeting Scheduled for May 14
---------------------------------------------------------------
Chemtura Corp. will hold its Annual Meeting of Stockholders at
11:15 a.m. on Wednesday, May 14, 2008, Chief Executive Officer
Robert L. Wood said in a regulatory filing.
The meeting will be held at the company’s headquarters located
at 199 Benson Road in Middlebury, Connecticut.
At the meeting, stockholders will be asked to:
-- elect six directors for a term of one-year expiring at
the 2009 Annual Meeting of Stockholders; and
-- ratify the company’s selection for 2008 of its
independent registered public accounting firm.
Only stockholders of record at the close of business on
March 18, 2008, will be allowed to vote at the meeting.
About Chemtura Corporation
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- manufactures and
markets specialty chemicals, crop protection products, and pool,
spa and home care products. The company has subsidiaries in the
United Kingdom, Netherlands, Australia, China, Japan, Chile and
Mexico, among others.
* * *
In December 2007, Moody's Investors Service placed Chemtura
Corporation's corporate family rating of Ba2 under review for
possible downgrade after reports that its "board of directors
has authorized management to consider a wide range of strategic
alternatives available to the company to enhance shareholder
value."
Standard & Poor's Ratings Services similarly placed its 'BB+'
corporate credit and senior unsecured debt ratings of Chemtura
Corp. on CreditWatch with developing implications.
CHEMTURA CORP: Inks Pact with Baerlocher on Heat Stabilizers
------------------------------------------------------------
Chemtura Corporation on Wednesday entered into an agreement with
Baerlocher for the manufacture of certain heat stabilizers used
in PVC.
In addition, Chemtura is selling its organic-based stabilizers
product line for rigid PVC applications to Baerlocher.
“Chemtura has developed a valuable intellectual property estate
in OBS but has been unable to fully leverage the technology in
rigid PVC,” said Anne Noonan, group president for Chemtura
Polymer Additives. “Chemtura will, however, continue its
efforts in further development of OBS technology, particularly
for flexible PVC applications where we have greater
capabilities.
“This represents another step in the strategic restructuring of
our non-flame-retardant Polymer Additives businesses,” Noonan
said. “In the last year, we have restructured our antioxidants
business by moving manufacturing from high-cost facilities in
Europe to lower-cost facilities in Asia and the Middle East. We
also have divested our organic peroxides and oleo chemicals
businesses in order to focus on businesses we are better
positioned to grow. The agreement with Baerlocher continues
this trend and establishes a sustainable platform for Chemtura
to develop its PVC business.”
About Chemtura Corporation
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- manufactures and
markets specialty chemicals, crop protection products, and pool,
spa and home care products. The company has subsidiaries in the
United Kingdom, Netherlands, Australia, China, Japan, Chile and
Mexico, among others.
* * *
In December 2007, Moody's Investors Service placed Chemtura
Corporation's corporate family rating of Ba2 under review for
possible downgrade after reports that its "board of directors
has authorized management to consider a wide range of strategic
alternatives available to the company to enhance shareholder
value."
Standard & Poor's Ratings Services similarly placed its 'BB+'
corporate credit and senior unsecured debt ratings of Chemtura
Corp. on CreditWatch with developing implications.
COEUR D'ALENE: Matrix Research Upgrades Rating on Firm to Sell
--------------------------------------------------------------
Matrix Research Ltd said in research notes that it has upgraded
its ratings on Coeur d'Alene Mines Corp.'s shares to "sell" from
"strong sell," Newratings.com reports.
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poor's Ratings Services B-
rating.
==================
C O S T A R I C A
==================
DENNY'S CORP: March 26 Balance Sheet Upside-Down by US$172.2 Mln
----------------------------------------------------------------
Denny's Corporation reported Tuesday results for its first
quarter ended March 26, 2008.
At March 26, 2008, the company's consolidated balance sheet
showed US$384.8 million in total assets and US$557.0 million in
total liabilities, resulting in a US$172.2 total stockholders'
deficit.
The company's consolidated balance sheet at March 26, 2008, also
showed strained liquidity with US$63.3 million in total current
assets available to pay US$127.1 million in total current
liabilities.
Net income for the first quarter was US$5.0 million, an increase
of US$3.8 million compared with net income of US$1.2 million in
the first quarter ended March 28, 2007.
Adjusted income before taxes for the first quarter was
US$2.0 million, an increase of US$2.1 million compared with the
prior year loss of US$100,000. This measure, which is used as
an internal profitability metric, excludes restructuring
charges, exit costs, impairment charges, asset sale gains,
share-based compensation, other nonoperating expenses and income
taxes.
For the first quarter of 2008, Denny's reported total operating
revenue, including company restaurant sales and franchise
revenue, of US$196.0 million compared with US$236.8 million in
the prior year quarter.
Company restaurant sales decreased US$46.2 million due to the
sale of company restaurants to franchisees under the company's
Franchise Growth Initiative. A 0.7% increase in same-store
sales at company restaurants partially offset the impact of 128
fewer equivalent company restaurants compared with the prior
year quarter. During the first quarter, Denny's opened one new
company restaurant, closed one and sold 21 to franchisee
operators.
Franchise revenue in the first quarter increased US$5.5 million,
or 26%, to US$26.4 million due primarily to an increase of 136
equivalent franchise restaurants compared with the prior year
period. The growth in franchise revenue included a US$2.7
million increase in rental income, a US$2.0 million increase in
royalties and a US$700,000 increase in franchise fees. During
the first quarter, Denny's franchisees opened nine new
restaurants, closed five and purchased 21 company restaurants.
Operating income for the first quarter increased US$7.5 million
to US$20.2 million due primarily to the increase in gains on the
sale of restaurants. Excluding gains, losses, and other charges
in both periods, operating income increased US$500,000 despite a
US$40.8 million decrease in total operating revenue.
Interest expense for the first quarter decreased US$2.1 million,
or approximately 19%, to US$9.2 million as a result of a
US$94.4 million reduction in debt from the prior year period.
Other nonoperating expense increased US$5.6 million in the first
quarter due primarily to the discontinuance of hedge accounting
related to a US$150.0 million interest rate swap on Denny's
credit facility term loans. Under the current accounting
treatment, changes in the fair value of the swap are reflected
as nonoperating expense or income.
Nelson Marchioli, president and chief executive officer, stated,
"We are pleased with the progress we are making to optimize our
business model and strengthen our balance sheet, despite the
difficult operating and economic environment impacting our
industry. "We are confronting the challenges of reduced
consumer spending and rising commodity costs with promotional
items that have strong customer appeal and offer a compelling
value but are also designed to benefit our food cost margins."
Mr. Marchioli concluded, "While we do not foresee near-term
improvement in the macroeconomic pressures on our business, we
believe our strategic actions will strengthen our long-term
financial performance and enhance shareholder value."
Accounting Methodology Review
The company disclosed that it is currently in the process of
reviewing, in consultation with its external auditors, its
current and historical methodology for writing off a portion of
goodwill as restaurants are sold to franchisees. The unaudited
financial statements presented herein have not been adjusted for
any change to its methodology that may result from its review.
The company currently expects that a change to its methodology
could cause goodwill; operating gains, losses and other charges,
net; and net income before taxes to decrease:
Qtr. ended March 28, 2007 approximately US$0.0 to US$0.5 million
Year ended Dec. 26, 2007 approximately US$3.0 to US$4.5 million
Qtr. ended March 26, 2008 approximately US$0.5 to US$1.5 million
The company said these potential adjustments would be noncash in
nature and are preliminary and could change. The company
expects to complete this review by the time it files its Form
10-Q on May 5, 2008, for the quarter ended March 26, 2008.
Franchise Growth Initiative (FGI)
Denny's continues its strategic initiative to increase franchise
restaurant development through the sale of certain company
restaurants. During the first quarter, the company sold 21
restaurants to four franchisee operators. This brings the total
number of company restaurants sold to-date under FGI to 151.
The first quarter transactions generated net cash proceeds of
US$14.4 million; however, approximately US$12.7 million of the
proceeds are included in receivables on the quarter-end balance
sheet as the funds were received after the first quarter closed.
During the first quarter, franchisees signed FGI-related
development agreements committing to build 9 franchise
restaurants. Also during the quarter, franchisees signed
traditional development agreements (MGIP) committing to build an
additional 6 restaurants. Over the last 15 months, Denny's has
signed development agreements for 135 new restaurants, 12 of
which have opened, yielding a current development pipeline of
123 restaurant commitments.
Headquartered in Spartanburg, South Carolina, Denny's
Corporation (Nasdaq: DENN) -- http://www.dennys.com/-- is a
full-service family restaurant chain, consisting of 394 company-
owned units and 1,152 franchised and licensed units, with
operations in the United States, Canada, Costa Rica, Guam,
Mexico, New Zealand and Puerto Rico.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 28, 2008, Standard & Poor's Ratings Services revised its
outlook on Denny's Corp. to negative from stable. S&P also
revised the ratings, including the 'B+' corporate credit rating,
on the Spartanburg, South Carolina-based company.
SIRVA INC: Files First Amended Prepackaged Joint Plan
-----------------------------------------------------
SIRVA, Inc., and its debtor-affiliates delivered to the U.S.
Bankruptcy Court for the Southern District of New York a
First Amended Prepackaged Joint Plan of Reorganization on
April 30, 2008.
The Amended Plan incorporates the agreement SIRVA reached with
its Official Committee of Unsecured Creditors, resolving the
Committee's objections to the Company's proposed Plan of
Reorganization. The agreement is supported by representatives
for all major creditor groups and includes all individual
members
of the Committee.
Under the agreement, all allowed claims of Class 5 creditors
will receive a distribution of 25%. A separate class for
certain putative antitrust class action claims will be
established. Members of that class would receive a pro rata
share of US$5 million, consisting of US$3 million in cash and
US$2 million in a second lien note. The settlement will be
funded by the company's secured lenders.
Specifically, under the Debtors' Amended Plan:
* Class 5 is split into two classes:
-- Class 5-A General Unsecured Claims, and
-- Class 5-B Beach Class Action Claims;
* Beach Class Action Claims include any claim related to
proceedings entitled:
-- Beach v. Atlas Van Lines, Inc., Case No. 07-0764,
-- Moad v. Atlas Van Lines, Inc., Case No. 07-2506, and
-- Boone v. Atlas Van Lines, Inc., Case No. 07-2269,
or related causes of action against the Debtors on account
of the allegations asserted in the proceedings;
* Each Holder of a General Unsecured Claim will receive a
cash distribution equal to 25% of its Allowed General
Unsecured Claim;
* Holders of Beach Class Action Claims will receive their pro
rata share in US$3,000,000 in cash and a US$2,000,000 note
containing the same terms as, and pari passu with, the
Second Lien Facility, in satisfaction, settlement, release,
and discharge of each allowed Beach Class Action Claim
provided that the Beach Class Action is settled in a manner
reasonably satisfactory to the parties;
* In the event that a settlement is not reached, Beach Class
Action Claims will be deemed to be unimpaired by the First
Amended Plan and not subject to discharge under Section
1141 of the Bankruptcy Code or otherwise; and
* The definition of "General Unsecured Claim" has been
clarified by specific reference to the schedule filed with
the Court pursuant to the First Supplemental Declaration of
Adam C. Paul in support of the amended schedule of certain
claims.
Aside from other technical, immaterial, and conforming changes
to the Plan, all other terms remain the same, including
providing payment in full to all members of Class 4, which
includes ongoing business partners.
Debtors To Solicit Votes from Class 1
In connection with the First Amended Plan, the Debtors seek the
Court's expedited approval of a solicitation package and
continued solicitation.
Marc Kieselstein, P.C., at Kirkland and Ellis LLP, in Chicago,
Illinois, tells the Court that the Debtors propose to continue
their solicitation of votes from the holders of Class 1 Claims,
to ensure the acceptance of the First Amended Plan.
The Debtors intend to continue their solicitation of Class 1 in
substantially the same manner and timeframe as the initial
solicitation, Mr. Kieselstein says. Solicitation will occur
over a two business day period, commencing with the distribution
of the Solicitation Package.
The Debtors' continued solicitation of Class 1 does not require
them to solicit holders of Class 5-A or Class 5-B Claims, and
the Debtors have deemed those classes to reject the Plan. Class
5 Claimholders will suffer no prejudice in their deemed
rejection, Mr. Kieselstein maintains.
The Debtors believe that the expedited solicitation period is
appropriate under the circumstances, as a longer solicitation
period will delay their emergence from bankruptcy, increase
customer uncertainty regarding their reorganization, and
jeopardize their ability to emerge as a revitalized enterprise.
The Court will consider the Debtors' request to continue
solicitation on May 2, 2008.
Accounting Expert's Testimony is Reliable
Prior to the Debtors' filing of their First Amended Plan, the
Official Committee of Unsecured Creditors objected to testimony
of Philip E. Kruse, a forensic accountant and managing director
at Alvarez & Marsal in New York. Mr. Kruse's testimony was on
whether the Debtors can present accurate financial statements on
a legal entity basis.
Marc Kieselstein, P.C., at Kirkland and Ellis LLP in Chicago,
Illinois, told the Court that the testimony of Mr. Kruse is
relevant and reliable, and bears directly on whether substantive
consolidation is appropriate in the Debtors' cases. He added
that the testimony on Mr. Kruse's investigation into the
Debtors'
accounting condition will help the Court understand whether the
Debtors will be able to present accurate legal-entity-by-legal-
entity accounting, or if it is "hopelessly entangled."
Mr. Kieselstein asserted that Mr. Kruse is qualified to render
an
opinion on the topic of accounting entanglement.
As previously reported, the Committee asked the Court to exclude
from the record at the Confirmation hearing the Debtors' entity
level liquidation analyses rebuttal report dated April 10, 2008.
Confirmation Hearing is Adjourned
Judge James M. Peck will hold a Confirmation Hearing on the
revised Plan following the solicitation of votes from Class 1
creditors to be completed early next week, the Debtors said in a
statement.
"The confirmation hearing has been adjourned while plan
modifications are put in place," said Brad Godshall, a lawyer
representing the Creditors' Committee, reports the Daily Herald.
A favorable ruling at the Confirmation Hearing will mark the
last major milestone in SIRVA's Chapter 11 case, paving the way
for SIRVA's emergence from Chapter 11.
A full-text copy of the Debtors' First Amended Prepackaged Joint
Plan of Reorganization is available at no charge at:
http://bankrupt.com/misc/SIRVA1stAmendedPlan.pdf
A blacklined copy of the Debtors' First Amended Prepackaged
Joint Plan of Reorganization is available at no charge at:
http://bankrupt.com/misc/SIRVA1stAmendedPlanBlacklined.pdf
About Sirva Inc.
Headquartered in Westmont, Illinois, SIRVA Inc. (Pink Sheets :
SIRV.PK) -- http://www.sirva.com/-- is a provider of relocation
solutions to a well-established and diverse customer base. The
company handles all aspects of relocation, including home
purchase and home sale services, household goods moving,
mortgage services and home closing and settlement services.
SIRVA conducts more than 300,000 relocations per year,
transferring corporate and government employees along with
individual consumers. SIRVA's brands include Allied, Allied
International, Allied Pickfords, Allied Special Products, DJK
Residential, Global, northAmerican, northAmerican International,
Pickfords, SIRVA Mortgage, SIRVA Relocation and SIRVA
Settlement. The company has operations in Costa Rica.
The company and 61 of its affiliates filed separate petitions
for Chapter 11 protection on Feb. 5, 2008 (Bankr. S.D.N.Y. Case
No. 08-10433). Marc Kieselstein, Esq. at Kirkland & Ellis,
L.L.P. is representing the Debtor. An official Committee of
Unsecured Creditors has been appointed in this case.
The Committee's counsel is Pachulski Stang Ziehl & Jones. When
the Debtors filed for bankruptcy, it reported total assets of
US$924,457,299 and total debts of US$1,232,566,813 for the
quarter ended Sept. 30, 2007.
(Sirva Inc. Bankruptcy News, Issue No. 14; Bankruptcy Creditors'
Services Inc. http://bankrupt.com/newsstand/or 215/945-7000)
===================================
D O M I N I C A N R E P U B L I C
===================================
AES DOMINICANA: Fitch Affirms Foreign Currency ID Rating at 'B-'
----------------------------------------------------------------
Fitch has affirmed AES Dominicana Energia Finance, S.A.'s
international foreign currency issuer default ratings at 'B-'.
The rating action applies to US$160 million of notes due 2015
issued by AES Dominicana. The Recovery Rating has also been
affirmed at 'RR4'.
The rating outlook is stable.
The notes are jointly and severally guaranteed by AES
Dominicana's two operating companies, AES Andres B.V. and
Dominican Power Partners. In addition, the notes benefit from a
six-month debt-service reserve account and a US$23.5 million
guarantee from AES Corp., rated 'B+' by Fitch. The 'RR4'
recovery rating reflects the Dominican Republic's recovery
rating cap.
AES Dominicana's ratings incorporate the risks of operating
electric generation assets in the Dominican Republic, where
distribution companies have historically reported poor operating
performance, characterized by very high losses and low
collections. The ratings also consider the electricity sector's
dependence on government subsidies. Over the next few years,
Fitch expects the government to continue to support the sector
via subsidies and the sector to slowly recover. The recent
government initiatives to re-negotiate power purchase agreements
might increase cash flow generation uncertainty for generation
companies.
The company's credit metrics are considered very strong for the
rating category and have recently improved significantly. The
company's ratings are bolstered by the credit quality of the
company's two main electricity generation assets, Andres and
DPP. On a combined basis, the company reported strong financial
performance during 2007.
The company generated approximately US$66.8 million of EBITDA
and reported an interest coverage, measured by EBTIDA to
interest expense of 3.7 times, and a leverage ratio, measured by
total debt-to-EBITDA of 2.6(x). Although the company's cash
flow generation during 2007 was strong, the company's cash
position decrease to US$53.4 million from US$72.5 million as of
year end 2006, due primarily to an intercompany loan interest
payment of US$38 million coupled with a US$10 million dividend
payment.
Andres and DPP enjoy a competitive advantage due to their
favorable power purchase agreements and the use of liquefied
natural gas versus other fuels to generate electricity. AES
Dominicana controls the only LNG import point into the Dominican
Republic. Andres is the newest and most efficient power plant
in the country and ranks among the lowest cost electricity
generators in the country. Andres' combined-cycle plant burns
natural gas and is expected to be fully dispatched as a base
load unit as long as the LNG price is not more than 15% above
the imported price of fuel oil No. 6.
AES Dominicana is an energy group operating in the Dominican
Republic, which manages two of AES Corp.'s wholly owned
generation assets, Andres and DPP. AES Dominicana, through an
AES Corp subsidiary, also has a management agreement to operate
EDE-Este, one of the three distribution companies in the
country. Andres is a power plant with a 304MW combined cycle
generation facility with duel fuel capability (gas and diesel)
but with natural gas supplied through the LNG import facility
serving as the primary fuel while DPP is a 236MW power plant
comprising two simple cycle combustion turbines that can burn
both natural gas and fuel oil Number 2. Both plants together
have PPA contracts with EDE-Este for 260MW that increase over
time, but Andres is currently servicing all contracts given its
greater efficiency. Andres LNG terminal includes a large tanker
berth and jetty, an LNG refueling pier, and a one million barrel
(160,000 cubic meters, m3) LNG storage tank, as well as
regasification and handling facilities for both LNG and diesel.
EMPRESA GENERADORA: Fitch Holds B- Foreign and Local ID Ratings
---------------------------------------------------------------
Fitch has affirmed Empresa Generadora de Electricidad Haina,
S.A. 'B-' international foreign and local currency issuer
default ratings. The rating action applies to US$175 million of
notes due 2017 issued by EGE Haina. The Recovery Rating has
also been affirmed at 'RR4'. The rating outlook is stable.
EGE Haina's ratings incorporate the risks of operating electric
generation assets in the Dominican Republic, where distribution
companies have historically reported poor operating performance,
characterized by very high losses and low collections. The
risks associated with operating an electric generation system in
the DR stem from the sector's systemic problems. Dominican
Republic ranks fourth as the country with the highest
electricity losses worldwide, after Congo, its neighbor Haiti
and Moldavia.
The ratings also consider the electricity sector's dependence on
government subsidies as the current government has subsidized
distribution companies' losses over the past three years. Over
the next few years, Fitch expects the government to continue to
support the sector via subsidies and the sector to slowly
recover. The recent government initiatives to renegotiate power
purchase agreements might increase cash flow generation
uncertainty for generation companies.
EGE Haina benefits from its diversified portfolio of assets
using different fuel sources to generate electricity, its strong
market position and its operating efficiency. EGE Haina's
generation assets are composed of fuel oil, diesel, and coal
power generation plants scattered throughout the country. This
gives EGE Haina different positions on the dispatch merit list.
In addition, EGE Haina is the largest generation company in the
country, with an installed capacity of 667MW and average
generation of 1,758GWhs during 2006. EGE Haina's operating
efficiency compares well with other generation companies in the
country.
Going forward, the company is expected to continue reinvesting
internally generated cash flow to maintain the company's
competitiveness and be able to renew contracts once they expire
in 2016. Recently, the company signed a memorandum of
understanding with Korea Electric Power Corporation (rated with
an IDR of 'A' by Fitch) to study the possibility of building an
approximately 240MW of installed capacity coal-fired generation
plant in DR. The project would have an estimated cost of US$500
million and the parties will have a 50% participation each.
This should have a favorable impact on EGE Haina's generation
portfolio. The company has also stated its intention to convert
its 100MW of installed capacity gas-fired single-cycle unit to a
more efficient combined cycle unit at an investment cost of
approximately US$50 million.
EGE Haina has an average heat rate of 9,526 British thermal
units/kilowatt hour, and its most efficient generation unit has
a heat rate of 7,800 Btu/KWh, burning heavy fuel oil also known
as fuel oil No. 6. EGE Haina's credit metrics are considered
strong for the rating category. Its financial profile is
characterized by low leverage and adequate interest coverage
ratios. As of December 2007, EGE Haina's leverage level, as
measured by total debt-to-EBITDA, was 2.5 times. The company
reported an EBITDA margin of 22% and EBITDA of approximately
US$75.4 million during 2007. This compares favorably with the
approximately US$17 million of annual interest expense.
Empresa Generadora de Electricidad Haina SA is the largest
thermoelectric generator in the Dominican Republic as measured
by installed capacity and electricity generation. EGE Haina has
a total installed thermoelectric capacity of 667MW and generated
a total of 1,758 GWh during 2006. EGE Haina is 50% owned by
Haina Investment Company, Ltd. and 49.97% by the government of
the DR, with the balance owned by former employees of
Corporacion Dominicana de Electricidad.
EMPRESA GENERADORA: Fitch Affirms B- International Currency IDRs
----------------------------------------------------------------
Fitch Ratings has affirmed Empresa Generadora de Electricidad
Itabo, S.A.'s issuer default ratings and outstanding debt
ratings as:
Empresa Generadora de Electricidad Itabo S.A.:
-- International foreign currency issuer default rating 'B-';
-- International local currency issuer default rating 'B-';.
-- National scale 'BBB(dom)'.
Itabo Finance S.A.:
-- US$125 million of senior notes due 2013 'B-/RR4'
The rating outlook is positive.
Empresa Generadora Itabo's ratings incorporate the risks of
operating electric generation assets in the Dominican Republic,
where distribution companies have historically reported poor
operating performance, characterized by very high losses and low
collections. The company's ratings and positive outlook are
supported by its strong competitive position as the lowest cost
thermoelectric generator in the country, as well as its somewhat
solid financial profile and experienced management team. It
operates two low-cost, coal-fueled electric generation units and
sells electricity to three distribution companies through well-
structured, long-term U.S-dollar-denominated purchase power
agreements.
While multiple offtakers diversify its revenue stream, and long-
dated PPAs mitigate price and volume risks, the company could
face collection risks from the electric distribution companies,
which continue in the process of improving their own losses and
collection rates. Its collection rates remain solid mainly due
to government subsidies to distribution companies to meet their
obligations with generators. This committed financial support,
along with distribution companies' initiatives to reduce losses,
is moderately helping to stabilize the system.
Empresa Generadora Itabo's financial performance is considered
to be somewhat strong for the rating category. Interest
coverage, as measured by EBITDA-to-interest, was 2.5 times as of
year-end 2007. Leverage, as measured by Total Debt-to-EBITDA
for the same period was 3.7. During 2007, the company reduced
debt by approximately US$20 million and paid dividends of US$46
million over 2006 gain and paid dividends in advance over 2007
gain for approximately US$12 million, reducing cash on hand from
US$82.6 million as of year end 2006 to US$4.7 million as of Dec.
31, 2007. Even though cash was reduced, the company's financial
profile remains solid within the rating category. During 2007,
operating income was negatively affected by scheduled and
unscheduled outages, mainly caused during Hurricane Dean and
Tropical Storm Noel, coupled with higher cost of electricity
sales, lowering EBITDA margin from approximately 21% during 2006
to 17% during 2007.
The Dominican Repulic electricity sector remains highly
dependent on government support and subsidies. The current
administration continues to strongly support the sector by
committing subsidies for distribution companies and implementing
law reforms aimed to reduce losses. The Dominican congress
approved changes to the electricity law that, among other
things, criminalizes electricity theft. This reform to the
electricity law is expected to slowly reduce theft, increase
paying conscious of the Dominican Republic population and slowly
increase the cash recovery index of the sector.
The positive rating outlook reflects the favorable operating
conditions of the company within the local market, the Dominican
government's continued support of the sector, the different
steps taken by the government and sector participants in an
effort to bolster the sector, and the country's recent economic
recovery. An upgrade of Empresa Generadora Itabo's rating could
be triggered if the sector continues its current path to
recovery and self-sustainability, thereby lowering its
dependency upon government's subsidies.
The company's 'RR4' Recovery Rating is constrained by the
Dominican Repulic's RR cap. Its recovery analysis is based on
the lowest EBITDA reported by the company during the past three
years to estimate a stressed enterprise value.
Empresa Generadora de Electricidad Itabo, S.A. is a
thermoelectric generation company based in the Dominican
Republic. The company consists of 5 thermal power stations,
three of them stationed in Santo Domingo (Santo Domingo,
Timbeque and Los Mina), Itabo 20 km. (the largest) and Higuamo,
with a total nominal capacity of 586MW. It is currently owned
50% by AES Corp.'s subsidiaries and 49.97% by the Dominican
Republic government. The balance is owned by former employees
of Corporacion Dominicana de Electricidad (CDE). As previously
noted, AES Dominicana manages the company under a management
contract, for a fee of 2.95% of Itabo's sales, while AES Corp.
indirectly controls Itabo's management board.
=============
E C U A D O R
=============
PETROECUADOR: To Repair Esmeraldas' Distillation Unit in 2 Weeks
----------------------------------------------------------------
Petroecuador's Esmeraldas Plant Superintendent Nelson Chulde
told Reuters that it will take the firm about two weeks to
repair a damaged distillation unit at the refinery.
The Esmeraldas plant is working at 90% of its normal levels due
to repairs, Reuters states, citing Mr. Chulde.
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
====================
E L S A L V A D O R
====================
ALCATEL-LUCENT SA: Posts EUR181 Million Loss for 1st Qtr 2008
-------------------------------------------------------------
Alcatel-Lucent S.A. posted EUR181 million in net losses on
EUR3.86 billion in net revenues for the first quarter ended
March 31, 2008, compared with EUR8 million in net losses on
EUR3.88 billion in net revenues for the same period in 2007.
The company posted EUR95 million in adjusted net losses for
first quarter 2008, compared with EUR199 million in adjusted net
profit for the same period in 2007.
"Considering the impact of the Euro/USD adverse shift, our
revenue performance was in line with our expectations, with a
year-over-year growth of 6.3%and a sequential decline in the mid
point of our typical seasonal pattern of –20% to –25%," Patricia
Russo, CEO, said. "
"We achieved significant progress in our adjusted gross margin,
up 3.8 points quarter-over-quarter to 36.2%, in spite of
significantly lower volumes," Ms. Russo continued. "This is
attributable in part to one-time gains and a favorable mix, but
also reflects an improved ability to retain the benefits of our
product costs reduction programs. Additionally, we reduced our
operating expenses by 12% year-over-year, excluding the one time
capital gain."
2008 Forecast
With approximately half of its revenue in US dollar or dollar-
linked currencies, Alcatel-Lucent expects its full year 2008
revenue, expressed in current rate, to be down in the low to
mid-single digit range.
This is due primarily to the significant deterioration in the
Euro/US$ exchange rate and, to a much lesser extent, the
potential for lower capital spending by a few customers.
Against this backdrop, Alcatel-Lucent will continue to execute
against its three-year plan, with an aim to improve gross
margin, reduce operating expenses and turn around
underperforming businesses.
* for full year 2008, the company believes it can achieve an
adjusted gross margin in the mid thirties and confirms its
target to achieve a low to mid single-digit adjusted
operating margin in percentage of revenues; and
* for the second quarter 2008, Alcatel-Lucent expects
revenues to increase in the mid single-digit range
sequentially.
Balance Sheet and Pension Status
The net debt position was EUR30 million as of March 31, 2008,
compared with net cash position of EUR271 million as of
Dec. 31, 2007.
It should be noted that the amount of accounts receivable sold
during the quarter was reduced by Euro 217 million sequentially.
The funded status of pensions and other post retirement benefits
(OPEB) amounted to EUR2.609 billion as of March 31, 2008, down
from EUR2.806 billion as of Dec. 31, 2007.
As of March 31, 2008, the global asset allocation of the group’s
funds was 20% in equity securities, 60% in bonds and 20%in
alternatives (i.e., real estate, private equity and hedge
funds), unchanged from year-end 2007.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the TCR-Europe on April 4, 2008, Moody's
Investors Service affirmed the ratings for Alcatel-Lucent, which
include a Ba3 corporate family rating for Alcatel-Lucent and a
Not-Prime for its short term debt, as well as Ba3 ratings for
senior and B2 ratings for subordinated debt that was issued
originally by the predecessor companies Alcatel S.A. and Lucent
Technologies, Inc. Moody's said the outlook for the ratings is
Negative.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Eyes Transatlantic Tie-Up With Two US Carriers
---------------------------------------------------------------
British Airways plc is exploring opportunities for co-operation
with American Airlines and Continental Airlines.
Further details will be announced when appropriate.
However, Sir Richard Branson, founder and president of Virgin
Atlantic, criticized BA's attempt to establish a transatlantic
joint venture with the two US carriers, saying "the regulators
ruled it was against the consumer interest," the Financial Times
relates.
Meanwhile, BA chief executive Willie Walsh urged US and EU
authorities to relax regulatory rules on foreign ownership and
control of airlines, the FT reveals.
Mr. Walsh stated EU investors, which are currently restricted to
owning a maximum voting share of 25% in a US carrier, must be
allowed to take majority stakes, and vice versa, Justin Baer and
Kevin Don writes for the paper.
A TCR-Europe report on Oct. 24, 2007 disclosed BA tried to forge
a transatlantic tie-up with American Airlines twice but failed
after competition regulators insisted it would have to give up
landing slots at London's Heathrow airport to obtain approval.
"A link between a European and a US carrier is
transformational," Mr. Walsh said. "If that were possible it
would definitely be something worth chasing."
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
plc and a number of subsidiary companies including in particular
British Airways Holidays Ltd. and British Airways Travel Shops
Ltd. BA has offices in India and Guatemala.
* * *
As of Jan. 2, 2008, British Airways Plc carries a senior
unsecured debt rating of Ba1 from Moody's Investors' Service
with a stable outlook.
=============
J A M A I C A
=============
NATIONAL WATER: Must Develop Sewage Treatment Master Plan
---------------------------------------------------------
The National Water Commission of Jamaica has been ordered to
develop a master plan for the expansion of sewage treatment
facilities and network along the south east coast, the Jamaica
Information Service reports, citing Water and Housing Minister
Horace Chang.
The Jamaica Information Service relates that Minister Chang said
during a two-day Caribbean Sanitation Workshop at the Knutsford
Court Hotel in Kingston that the sewage plants at Kingston and
St. Andrew, or sections of St. Catherine, haven't been working
properly for the last 20 years. "We have been pouring raw
sewage into the Kingston Harbour and elsewhere in the Corporate
Area," Minister Chang added.
Minister Chang told the Jamaica Information Service that the Old
Harbour and Old Harbour Bay communities in St. Catherine aren't
served by a central sewage treatment system. According to the
minister, the small sewage treatment systems in operation in the
communities aren't working properly.
Phase 1 of the Soapberry sewer plant in St. Catherine was built
for US$50 million and has been completed. It has an 18 million
gallon per day capacity. It will take on much of the sewered
areas of the Corporate Area. It will also serve some of the
areas that aren't being sewered and “bring about an improved
quality to sewer treatment in the Corporate Area,” the Jamaica
Information Service says, citing Minister Chang.
The Jamaica Information Service notes that the government is
negotiating for the development of the second phase of Soapberry
plant, which will incorporate sections of Portmore. The
facility is for the incorporation of “biological ponds, which
are easier to maintain," Minister Chang commented to the Jamaica
Information Service.
Minister Chang told to the Jamaica Information Service, "Based
on where you have the capacity to expand, the actual design will
hopefully take us to 55 million gallons per day in the long run,
and therefore will be able to take on pretty much all of the
Corporate Area and much of south east St. Catherine."
According to the Jamaica Information Service, Minister Chang
said that these projects are being planned:
-- construction of the Port Antonio sewerage and
drainage system in Portland for US$23 million; and
-- rehabilitation of:
* the Harbour treatment plant in Kingston,
* the Horizon Park and Eltham sewage plants in St.
Catherine, and
* the Yallahs plant in St. Thomas.
"We have to find a way to set up the centralized treatment
plants where necessary in these urban centers. It is critical
because Jamaica, at 4000 square miles, is a small island, and
unless we protect our environment, we are going to have serious
problems down the road," Minister Chang told the Jamaica
Information Service.
The National Water Commission is a statutory organization
charged with the responsibility of providing potable water and
wastewater services for the people of Jamaica.
* * *
The National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses. For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion. The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.
Jamaican citizens have been complaining to the commission about
water disruptions in their communities, resulting to
restrictions of water use.
===========
M E X I C O
===========
DANA CORP: Intends to Transfer Kentucky Operations to Mexico
------------------------------------------------------------
Dana Corporation will move its gearing production plant in
Glasgow, Kentucky, to Mexico within the year, Fort Mill Times
reported. The move, which Dana said is aimed to improve the
competitiveness of its vehicle business, will result in the
unemployment of about 100 people, the Fort Mill Times said.
The Fort Mill Times, however, said that the United Steelworkers
and Dana has agreed to conduct a joint study to identify new
work for Glasgow that can sustain the facility in an
economically viable fashion.
Based in Toledo, Ohio, Dana Corporation -- http://www.dana.com/
-- designs and manufactures products for every major vehicle
producer in the world, and supplies drivetrain, chassis,
structural, and engine technologies to those companies. Dana
employs 46,000 people in 28 countries. Dana is focused on being
an essential partner to automotive, commercial, and off-highway
vehicle customers, which collectively produce more than 60
million vehicles annually.
Dana has facilities in China in the Asia-Pacific, Argentina in
the Latin-American regions and Italy in Europe.
The company and its affiliates filed for chapter 11 protection
on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of
Nov. 30, 2007, the Debtors listed US$7,131,000,000 in total
assets and US$7,665,000,000 in total debts resulting in a total
shareholders' deficit of US$534,000,000.
Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day,
in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq.,
Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in
Cleveland, Ohio, represented the Debtors. Henry S. Miller at
Miller Buckfire & Co., LLC, served as the Debtors' financial
advisor and investment banker. Ted Stenger from AlixPartners
served as Dana's Chief Restructuring Officer.
Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel
LLP, represented the Official Committee of Unsecured Creditors.
Fried, Frank, Harris, Shriver & Jacobson, LLP served as counsel
to the Official Committee of Equity Security Holders. Stahl
Cowen Crowley, LLC served as counsel to the Official Committee
of Non-Union Retirees.
The Debtors filed their Joint Plan of Reorganization on
Aug. 31, 2007. On Oct. 23, 2007, the Court approved the
adequacy of the Disclosure Statement explaining their Plan.
Judge Burton Lifland of the U.S. Bankruptcy Court for the
Southern District of New York entered an order confirming the
Third Amended Joint Plan of Reorganization of the Debtors on
Dec. 26, 2007.
The Debtors' Third Amended Joint Plan of Reorganization was
deemed effective as of Jan. 31, 2008. Dana Corp., starting on
the Plan Effective Date, operated as Dana Holding Corporation.
(Dana Corporation Bankruptcy News, Issue No. 74; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2008, Standard & Poor's Ratings Services assigned its
'BB-' corporate credit rating to Dana Holding Corp. following
the company's emergence from Chapter 11 on Feb. 1, 2008. The
outlook is negative.
At the same time, Standard & Poor's assigned Dana's
US$650 million asset-based loan revolving credit facility due
2013 a 'BB+' rating (two notches higher than the corporate
credit rating) with a recovery rating of '1', indicating an
expectation of very high recovery in the event of a payment
default.
In addition, S&P assigned a 'BB' bank loan rating to Dana's
US$1.43 billion senior secured term loan with a recovery rating
of '2', indicating an expectation of average recovery.
HERCULES OFFSHORE: S&P Affirms Credit & Bank Loan Ratings at BB
---------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'BB' bank
loan and recovery rating of '2' on the US$1.15 billion senior
secured credit facilities of Hercules Offshore Inc. (BB-
/Stable/--). The recovery rating of '2' indicates S&P's
expectation of substantial (70% to 90%) recovery in the event of
a payment default.
The action was taken after the company increased its revolving
credit facility by US$100 million. The first-lien facilities
now consist of a US$250 million revolving credit facility and a
US$900 million term loan.
The company will use proceeds from the increase for working
capital, capital expenditures, and general corporate purposes.
Ratings Affirmed:
-- Corporate Credit Rating BB-/Stable/--
-- US$1.15 billion credit facility BB
-- Recovery Rating 2
Headquartered in Houston, Texas, USA, Hercules Offshore, Inc.
(Nasdaq: HERO) provides shallow-water drilling and lift boat
services to the oil and natural gas exploration and production
industry in the United States Gulf of Mexico and
internationally. It operates a fleet of 33 jackup rigs, 27
barge rigs, 65 liftboats, three submersible rigs, one platform
rig and a fleet of marine support vessels. Its services are
organized in four segments, Domestic Contract Drilling Services,
International Contract Drilling Services, Domestic Marine
Services and International Marine Services. The company's
Domestic Contract Drilling Services and Domestic Marine Services
are conducted in the United States Gulf of Mexico, its
International Contract Drilling Services are conducted offshore
Qatar and India, and its International Marine Services are
conducted in West Africa. The company also has operations in
Venezuela, Trinidad and Mexico.
RADIOSHACK CORP: Earns US$38.8 Million in Quarter Ended March 31
----------------------------------------------------------------
RadioShack Corporation reported net income of US$38.8 million
for the quarter ended March 31, 2008. Net income for the
quarter ended March 31, 2007, was US$42.5 million. First
quarter 2007 net income was positively impacted by a US$14
million benefit to gross profit associated with the recapture of
federal telecommunication excise tax and negatively impacted by
an US$8.5 million charge related to employee separations.
Revenue
First quarter 2008 comparable store sales declined 4.0% versus
the first quarter of 2007. The decline in comparable sales was
mainly driven by lower sales in Sprint postpaid wireless
partially offset by strong sales increases in GPS units, prepaid
wireless sales, video gaming, digital cameras and media storage.
But for the Sprint postpaid and related wireless accessory
business, comp store sales in the first quarter would have
increased 0.7%.
"We are pleased with the overall outcome for the first quarter
of 2008, especially in light of the difficult economic
environment. After a very challenging month of January, our
sales and earnings trends improved significantly during February
and March, resulting in an average comp store sales decrease of
1.2% for the two months," said Julian Day, Chairman and Chief
Executive Officer.
Total sales in the first quarter of 2008 were down US$43.3
million to US$949.0 million versus total sales of US$992.3
million for the same period last year, driven by the decline in
comparable store sales.
Operating Income
First quarter 2008 operating income was US$64.2 million as
compared to US$74.6 million in the prior year. Operating income
declined due to the comparable store sales decline and a lower
gross margin rate partially offset by a reduction in SG&A. For
reference, operating income for the quarter ended March 31,
2007, included both the US$14 million gross profit benefit as
well as the US$8.5 million SG&A charge discussed above. The
gross margin rate was impacted by negative mix associated with
the strong sales results in some lower margin categories,
continued price pressure on GPS units and a shift in wireless
towards a higher mix of upgrade versus new subscriber business.
The gross margin rate was also negatively impacted by an
increase in promotional activity as compared to prior year.
Selling, general and administration expenses decreased US$31.2
million to US$362.4 million compared to $393.6 million for the
same period last year. The reductions were predominantly in
headquarters and field payroll expense.
Cash Position
RadioShack's cash balance at the end of the first quarter of
2008 was US$469 million which was a slight increase over
March 31, 2007, despite the company retiring a total of
US$318 million in debt and equity during the intervening year.
RadioShack announced that it has filed with the SEC its Form 10-
Q for the quarter ended March 31, 2008.
About RadioShack
RadioShack Corporation (NYSE: RSH) -- http://radioshack.com/--
retails consumer electronics specialty products through almost
6,000 company-operated stores and dealer outlets in the United
States, over 100 RadioShack locations in Mexico and nearly 800
wireless phone kiosks.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 25, 2007, Fitch Ratings has downgraded these ratings for
RadioShack Corporation:
-- Issuer Default Rating to 'BB' from 'BB+';
-- Bank credit facility to 'BB' from 'BB+';
-- Senior unsecured notes to 'BB' from 'BB+'.
Fitch affirmed the short-term IDR at 'B'.
RESIDENTIAL CAPITAL: Seeks Alternatives to Arrest Liquidity Woes
----------------------------------------------------------------
A news statement issued by GMAC LLC included in its financial
results for the 2008 first quarter said that international
mortgage business experienced a significant decline in the first
quarter 2008 related to illiquidity in the global capital
markets and weakening consumer credit in certain markets. This
environment drove significant realized and unrealized losses in
mortgage loans held for sale and investment securities. As a
result, Residential Capital LLC has reduced the size of its
balance sheet and limited production of mortgages in overseas
markets to only those products with market liquidity. The
business lending operation also experienced continued pressure
in the first quarter related to the decline in home sales and
residential real estate values.
As reported in the Troubled Company Reporter-Latin America on
May 1, 2008, that Residential Capital LLC reported a net loss of
US$859 million for the first quarter of 2008, compared to a net
loss of US$910 million in the year-ago period. The aggressive
actions taken to reduce risk and rationalize the cost structure
have favorably affected results in the U.S. residential finance
business. These improvements, however, were offset by
significant deterioration in international operations. Results
in the quarter are attributable to market- driven valuation
adjustments on mortgage loans held for sale, real estate assets
and mortgage related investment securities. Partially
offsetting these losses was a US$480 million gain recognized
from the retirement of
US$1.2 billion (face value) of debt.
Early April, ResCap announced additional restructuring efforts
in its international business aimed to further reduce the cost
structure and change the business model to reflect current
market conditions. In the U.K., approximately 280 positions
will be eliminated and mortgage origination activity will be
reduced. In Continental Europe, ResCap has suspended all new
mortgage originations and refocused the business on asset
management activities.
As expected, ResCap has significant near-term liquidity
requirements, which include approximately US$4 billion in
unsecured and US$13 billion in secured debt maturities through
the remainder of 2008. To meet these requirements, management
is actively pursuing various alternatives including: potential
secured funding to be provided by GMAC, ongoing and potential
utilization of available committed lines of credit, the
liquidation of certain assets, the extension of maturities and
the refinancing or modification of existing indebtedness. These
efforts are ongoing and have not yet been completed.
As reported on April 25, 2008, Residential Funding Company and
GMAC Mortgage LLC, both subsidiaries of Residential Capital,
LLC, borrowed US$468 million collectively under a Loan and
Security Agreement with ResCap's parent, GMAC LLC, as lender, to
provide ResCap's subsidiaries with a revolving credit facility
with a principal amount of up to US$750 million, providing
incremental liquidity for ResCap's operations until longer-term
financing is arranged.
ResCap and GMAC are investigating various strategic alternatives
related to all aspects of ResCap's business, including
extensions and replacements of existing secured borrowing
facilities, and establishing additional sources of secured
funding for ResCap's operations. One potential source of new
secured funding is credit secured by certain of ResCap's
mortgage servicing rights.
The TCR reported on April 9, 2008 that GMAC LLC purchased
US$1.2 billion of ResCap's notes in open market. The notes have
a fair value of approximately US$607,192,000 to ResCap in
exchange for 607,192 ResCap Preferred units with a liquidation
preference of US$1,000 per unit. ResCap canceled the US$1.2
billion face amount of notes. GMAC may, in its sole discretion,
on or before May 31, 2008, contribute up to an additional
approximately US$340 million of ResCap notes, having a fair
value of approximately US$265,779,000, for additional ResCap
Preferred units. The ResCap Preferred ranks senior in right of
payment to ResCap's common membership interests with respect to
distributions and payments on liquidation, winding-up or
dissolution of ResCap.
About Residential Capital
Headquartered in Minneapolis, Minnesota, Residential Capital LLC
-- http://www.rescapholdings.com/-- is the home mortgage unit
of GMAC Financial Services, which is in turn wholly owned by
GMAC LLC. ReCap has operations in Mexico.
As reported in the Troubled Company Reporter-Latin America on
April 29, 2008, Standard & Poor's Ratings Services lowered its
ratings on Residential Capital LLC to 'CCC+' from 'B' following
the announcement that two independent board members have
resigned. S&P also placed Residential Capital LLC's ratings on
CreditWatch with negative implications. At the same time, S&P
lowered its ratings on GMAC LLC, parent company of Residential
Capital LLC, to 'B' from 'B+'. The outlook on GMAC remains
negative.
TLALNEPANTLA MUNICIPALITY: Moody's Places Ba3 Local Curr. Rating
----------------------------------------------------------------
Moody's Investors Service has assigned issuer ratings of Baa1.mx
(Mexico National Scale) and Ba3 (Global Scale, local currency)
to the municipality of Tlalnepantla. The ratings incorporate
the municipality's strong economy and an increasing own-source
revenue base, tempered by weak financial performance, a tight
liquidity position and relatively high debt ratios. The outlook
is stable.
The municipality of Tlalnepantla de Baz is located in the State
of Mexico and shares borders with the Federal District (Mexico
City). Its economic base is large, mainly based on a
manufacturing sector that includes chemicals, steel, auto parts,
paper products, food and beverages, glass and electrical
equipment. As such, it is the largest contributor to the
state's GDP, with a share of 16.3% of the state's total.
Figures from the 2005 census indicate a population of 684,000,
making it the fifth largest municipality in the State of Mexico.
Tlalnepantla's financial performance in recent years has been
mixed and it has reported financing deficits in the last five
years, ranging from 2% to 14% of revenues. More recently, the
deficits have stemmed from spending on capital projects and on
unbudgeted increases in current expenditures, primarily in the
area of personnel costs. In addition, in two of the last five
years, the municipality registered negative operating margins,
in which current expenditures surpassed total revenues.
Throughout the last five years, revenue composition has been
quite stable, with 35% coming from local tax and fee collections
and 65% from transfers from the federal and state governments.
Even so, Tlalnepantla has broad discretion over the use of its
revenues, as only about 6.7% of the total is earmarked for
specific programs. This margin, combined with the additional
resources expected from the recently approved federal fiscal
reform, should provide it with sufficient capacity to better
manage its resources and balance financial operations.
Municipal liquidity levels deteriorated in the last two years
mainly as a result of the accumulation of accounts payables with
the federal lighting and power company, Luz y Fuerza.
Consequently, net working capital as a portion of expenditures
was negative in 2006 (-6.3%) and 2007 (-3.1%). The municipality
is participating in a federal program which will assist it in
reducing the outstanding balance with this company.
In the event that all the new loans that are approved for 2008
are acquired, debt levels would be approximately 35% of total
revenue and debt service requirements would reach 8.5% of
budgeted revenue. Even though this level could stress the
municipality's financial flexibility, Moody's expects it to
moderate in the following years.
Tlalnepantla has limited exposure to contingent liabilities
given that the municipal water utility (OPDM) is self-sustaining
and municipal workers' pensions are covered by the state's
pension system ISSEMyM.
Reflecting the application of Moody's Joint Default Analysis
rating methodology, the ratings also incorporate a baseline
credit assessment of 13 on a scale of 1 to 21 (1 represents the
lowest credit risk) and a low likelihood that the State of
Mexico (rated Ba3/A3.mx) would act to prevent a default by
Tlalnepantla.
* MEXICO: S&P Predicts Challenges for Banking System in 2008
------------------------------------------------------------
The year 2008 is going to be a challenging one for Mexico's
banking system, following a good 2007 and stellar 2006, because
of a global liquidity squeeze, a slow-down in the United States
economy, and increasing nonperforming loans, mainly consumer
loans, according to a report released by Standard & Poor's
Ratings Services titled, Challenges Ahead For Mexico’s Banking
System In 2008."
That's why S&P expects Mexican banks to perform adequately in
2008, but not as good as in 2006 and 2007. Furthermore, S&P
believes less favorable economic conditions will create a wider
divergence of ratings within the sector, based on the extent of
diversification and risk management. "The good news is that,
given the Mexican banks' business and financial profiles, we
believe the system will maintain its overall good performance
and will remain in a strong position," said S&P's credit analyst
Leonardo Bravo.
====================
P U E R T O R I C O
====================
MANUEL GONZALEZ: Case Summary & 10 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Manuel Benitez-Gonzalez
Calle Taft No. 50
Cond. Taft Center Apt. 4-b
San Juan, PR 00911
Bankruptcy Case No.: 08-01903
Chapter 11 Petition Date: March 30, 2008
Court: District of Puerto Rico (Old San Juan)
U.S. Trustee: Monsita Lecaroz Arribas
Debtor's Counsel: Antonio I. Hernandez Rodriguez, Esq.
Hernandez Law Office
P.O. BOX 8509
San Juan, PR 00910-0509
Tel (787) 250-0575
Email ahernandezlaw@yahoo.com
Estimated Assets: US$1 million - US$100 million
Estimated Debts: US$1 million - US$100 million
Debtor's 10 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Banco Santander PR Bank Loan US$5,084,476
Commercial Credit Dept.
P.O. Box 362589
San Juan, PR 00936-2589
First Bank Bank Loan US$400,000
Commercial Credit Dept.
P.O. Box 089146
San Juan, PR 00908-9146
BBVA Bank Loan US$313,455
P.O. Box 364745
San Juan, PR 00936-4745
Prima Facie Inc. Trade Debt US$300,000
Suite 203, No. 248 Ave.
FD Roosevelt
San Juan, PR 00918-2435
Banco Popular de PR Bank Loan US$271,935
P.O. Box 362708
San Juan, PR 00936-2708
Eurobank Bank Loan US$260,928
5th Floor, Corona Bldg.
Calle Progreso
Santurce, PR
United Surety & Indemnity Trade Debt US$111,000
Comp.
Citi Capital Leasing Bank Loan US$79,379
Asume Child Support US$70,950
Ford Motor Credit Bank Loan US$48,468
=================
V E N E Z U E L A
=================
CLOROX CO: March 31 Balance Sheet Upside-Down by US$472 Million
----------------------------------------------------------------
The Clorox Company reported results for its fiscal third
quarter, which ended March 31, 2008.
“Total company and base business sales growth were strong,
especially considering our very high level of growth in the
year-ago quarter,” said Chairman and CEO Don Knauss. “Our
market shares held steady despite the economic pressures
consumers are facing.
“As expected, we faced intense cost pressures from commodity
cost increases. Aggressive cost savings and the benefit of
recent price increases helped mitigate much of this impact, and
we feel good about our overall performance in this environment.
Importantly, we continue to make progress against our Centennial
strategy and do the things we believe will drive economic profit
growth and shareholder value over the long term.”
Third-quarter highlights
Clorox reported third-quarter net earnings of US$100 million, or
71 cents diluted earnings per share, based on weighted average
diluted shares outstanding of 140 million. Current quarter
earnings were reduced by US$17 million in pretax charges, or 8
cents diluted EPS, associated with the announced consolidation
of the company’s manufacturing networks and other charges, and
US$11 million, or 5 cents diluted EPS, associated with the
Burt’s Bees acquisition. Excluding these factors, the company
delivered 84 cents diluted EPS.
In the year-ago quarter, Clorox reported US$129 million, or 84
cents diluted EPS, based on weighted average diluted shares
outstanding of 154 million. The year-ago quarter’s results
included 6 cents diluted EPS, or US$14 million on a pretax
basis, of incremental costs associated with the IT services
agreement and asset impairments. Excluding these factors, the
company delivered 90 cents diluted EPS in the year-ago quarter.
Third-quarter sales grew 9% to US$1.35 billion, compared with
US$1.24 billion in the year-ago quarter, when the company
delivered 7% sales growth. Excluding the Burt’s Bees and bleach
business acquisitions, sales growth in the current quarter was 5
percent. This includes the benefit of favorable foreign
exchange rates and the unfavorable impact of exiting the
company’s private label food bags business.
Total volume increased 4% compared to the year-ago quarter, when
the company delivered 8% volume growth. Excluding about 3
percentage points of growth from Burt’s Bees(R) products and
less than half a percentage point of growth from the bleach
business acquisition, volume was up slightly due to core volume
growth, offset by the impact of price increases and a higher
year-ago comparison. Sales growth outpaced volume growth
primarily due to the benefit of price increases, favorable
foreign exchange rates and improved product mix.
Gross margin in the third quarter decreased 350 basis points to
39.8% from 43.3% in the year-ago quarter. Excluding the impact
of the Burt’s Bees purchase-accounting step-up in inventory
values and previously announced restructuring-related charges,
gross margin was 41.8 percent. The decrease was primarily due
to the impact of unfavorable commodity costs and higher costs
for manufacturing and logistics, including diesel fuel. These
factors were partially offset by the benefit of cost savings,
price increases and improved product mix.
Net cash provided by operations was US$165 million, compared to
US$172 million in the year-ago quarter. The year-over-year
decrease was primarily due to lower net earnings in the current
quarter.
At March 31, 2008, the company's balance sheet showed total
assets of US$4.750 billion and total debts of US$5.222 billion
resulting in a stockholders' deficit of US$472 million.
North America
The segment reported 8% sales growth, 4% volume growth and a 3%
decline in pretax earnings. Volume benefited from the addition
of Burt’s Bees, the launch of Green Works(TM) cleaners, and
higher shipments of Brita products(R) and Fresh Step(R)
scoopable cat litter. These results were partially offset by
the impact of poor weather on the auto and Kingsford(R) charcoal
businesses, price increases and the company’s exit from the
private-label food bags business. Sales growth outpaced volume
growth primarily due to the benefit of price increases, a
favorable Canadian exchange rate and improved product mix.
Pretax earnings reflected the impact of unfavorable commodity
costs and the charge of US$14 million for a purchase-accounting
step-up of inventory values associated with Burt’s Bees,
partially offset by the benefit of higher sales and cost
savings.
International
The segment reported 14% sales growth, 4% volume growth and a
16% decline in pretax earnings. Sales results included about 6
percentage points from favorable foreign exchange rates and
about 4 percentage points of growth from the bleach business
acquisition. Volume growth was driven by the bleach business
acquisition and category growth in Latin America. Sales growth
outpaced volume growth primarily due to the benefit of favorable
foreign exchange rates and price increases. Pretax earnings
reflected the impact of unfavorable commodity and manufacturing
costs and charges related to restructuring and asset impairment.
Updated fiscal year 2008 financial outlook
For fiscal year 2008, Clorox now anticipates total sales growth
in the range of 8-9%. Excluding the anticipated benefit of the
bleach business and Burt’s Bees acquisitions, Clorox anticipates
sales growth in the range of 5-6%. This includes the benefit of
favorable foreign exchange rates and the unfavorable impact of
exiting the company’s private-label food bags business.
The company’s earnings outlook has been updated to reflect a
greater impact from commodity cost inflation and revised
estimates for dilution from the Burt’s Bees acquisition.
Previously, Clorox anticipated EPS dilution in the range of 13
cents to 15 cents from the Burt’s Bees acquisition. Due to
strong business performance and lower interest rates, the
projected EPS dilution impact from the acquisition is now
anticipated to be in the range of 9 cents to 11 cents. This
range includes pretax costs of about US$2 million for
amortization of intangible assets, US$19 million for the
purchase-accounting step-up in inventory values, and the impact
of financing the transaction. Including the above factors,
Clorox now anticipates diluted EPS in the range of US$3.20 to
US$3.28.
Excluding the impact of the Burt’s Bees acquisition and
announced restructuring-related charges in the range of 25 cents
to 26 cents diluted EPS, the company anticipates fiscal year
2008 diluted EPS in the range of US$3.57 to US$3.62.
Initial fiscal year 2009 financial outlook
For fiscal year 2009, Clorox’s initial outlook is for total
sales growth in the range of 6-8%. Excluding the impact of the
Burt’s Bees acquisition, Clorox anticipates sales growth in the
range of 4-6%. This range includes about 2 percentage points of
growth from innovation, including Green Works(TM) natural
cleaners.
The company anticipates modest gross margin expansion. The
benefits of cost savings and price increases are expected to
more than offset the impact of commodity cost pressure for the
fiscal year.
For the fiscal year, Clorox projects cost savings in the range
of US$90 million to US$100 million; restructuring-related
charges in the range of US$20 million to US$25 million,
primarily related to the previously announced consolidation of
the company’s manufacturing networks; and a tax rate in the
range of 34-35 percent. The company anticipates weighted average
diluted shares outstanding of about 142 million. Including
these factors, the company anticipates fiscal year 2009 diluted
EPS in the range of US$3.75 to US$3.90.
Clorox completes credit agreement
On April 16, Clorox signed a five-year, US$1.2 billion unsecured
revolving credit agreement, with JPMorgan Chase Bank N.A.,
Citicorp USA Inc. and Wachovia Bank N.A. as the administrative
agents. Amounts available under the agreement are for general
corporate purposes and to support the company’s issuance of
commercial paper. Concurrently with the new pact, the company
ended its existing credit agreement, dated Dec. 7, 2004.
The Clorox Company
The Clorox Company -- http://www.TheCloroxCompany.com/--
(NYSE:CLX) manufactures and markets of consumer products with
fiscal year 2007 revenues of US$4.8 billion. Clorox brands
include its namesake bleach and cleaning products, Green
Works(TM) natural cleaners, Armor All(R) and STP(R) auto-care
products, Fresh Step(R) and Scoop Away(R) cat litter,
Kingsford(R) charcoal, Hidden Valley(R) and K C Masterpiece(R)
dressings and sauces, Brita(R) water-filtration systems, Glad(R)
bags, wraps and containers, and Burt’s Bees(R) natural personal
care products. With 8,300 employees worldwide, the company
manufactures products in more than two dozen countries and
markets them in more than 100 countries. The company has
subsidiaries in Switzerland, Luxembourg, Mexico, Venezuela,
Chile, Hong Kong, Korea and Australia, among others.
HARVEST NATURAL: Enters AMI to Explore Oil in Upper Gulf Coast
--------------------------------------------------------------
Harvest Natural Resources, Inc. has entered into an area of
mutual interest (AMI) with a private company to explore and
develop oil and natural gas along the Texas and Louisiana Upper
Gulf Coast. The AMI, including state waters, stretches from
Nueces County, Texas to Cameron Parish, Louisiana and includes
approximately 40 counties. The company will fund the first
US$20 million of new lease acquisitions, G&G studies, seismic
reprocessing and drilling costs. Harvest Natural has a 55
percent operated interest within the AMI and will provide
drilling, engineering and operational expertise. The private
company has contributed two prospects, including the leases and
proprietary 3-D data sets, and numerous leads generated over the
last three decades of regional geological focus.
The AMI was developed to explore for natural gas including the
deeper Frio, Vicksburg and Yegua plays using the private
company's regional knowledge and ongoing prospect generation
capability followed by extensive prospect review by Harvest and
Fusion Geophysical LLC's technical geophysical staff.
Harvest Natural President and Chief executive Officer, James A.
Edmiston, said, "The identified prospects in the AMI provide
Harvest with exposure to near-term exploration drilling and a
chain of follow -- on potential opportunities for the
exploration of natural gas including deeper plays in the U.S.
Gulf Coast. The program exposes Harvest to significant near-
term value potential and diversification due to the strong U.S.
natural gas market and short cycle time from discovery to
production, relative to our international operations. The first
prospect is located in Calcasieu Parish, Louisiana where an
exploration well will be drilled beginning early in the third
quarter of this year. The second prospect area is in a
transition zone where multiple leads with significant resource
potentialhave been identified."
Mr. Edmiston continued, "Our private company partners have a
track record that is second to none in the Texas Gulf Coast and
East Texas area. Their geological team includes John Amoruso,
Denny Bartell and Larry Bartell. This team's most recent
discovery is the giant Amoruso field (Deep Bossier, East Texas),
discovered in 2005, which is viewed by many in the industry as
one of the most significant onshore natural gas discoveries in
the continental United States in the past decade or more. We at
Harvest are extremely pleased to be working alongside such an
accomplished and seasoned team of explorers."
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.
HARVEST NATURAL: Reports US$204,000 Net Income in 1st Qtr. 2008
---------------------------------------------------------------
Harvest Natural Resources, Inc. released its 2008 first quarter
earnings and an operations update. Highlights for the quarter
include:
-- Reported earnings of US$0.2 million, compared to a loss of
US$6.5 million for the same period in 2007.
-- Commenced development drilling operations in Venezuela.
-- Secured final governmental approvals for acquiring
interests in two significant exploratory plays in active,
proven hydrocarbon systems located in Gabon and Indonesia.
-- Established a significant presence in two exploratory
plays located in the United States.
Earnings
Harvest Natural reported earnings of US$204,000 compared with a
loss of US$6.5 million for the 2007 first quarter. The first
quarter results include exploration charges of US$1.3 million.
Petrodelta reported first quarter earnings of US$27.9 million,
or US$8.9 million net to the company's 32% interest, which are
reported using International Financial Accounting Standards
(IFRS). After adjustments to Petrodelta's IFRS earnings,
primarily to conform to U.S. Generally Accepted Accounting
Principles, the company's 32% share of Petrodelta's earnings
were US$6 million.
Management Comment
Harvest Natural President and Chief Executive Officer, James A.
Edmiston said, "I am pleased to report that we have commenced
development drilling in Venezuela and I look forward to
recording increases in both production and reserves. Our long-
term objective is to build a multi-year inventory of exploration
and exploitation drilling prospects with geographic and geologic
diversity to complement our Venezuelan foundation. We expect to
continue to add assets to our exploration portfolio throughout
2008 and beyond."
Venezuela: Production and Development Drilling
Production:
Petrodelta delivered 1.2 million barrels of oil or 13,300
barrels of oil per day, and 3.2 billion cubic feet of natural
gas during the 2008 first quarter. This compares with
Petrodelta oil deliveries in the 2007 first quarter of 1.5
million barrels, or 16,700 barrels per day, and 2007 fourth
quarter deliveries of 1.2 million barrels, or 13,100 barrels of
oil per day. Production decreased from last year as the result
of normal well production declines combined with suspended
investment in development drilling during the process of
converting Harvest Natural's Venezuelan assets into the current
mixed company structure.
The average price received for oil deliveries was US$79.02, or
approximately 81% of West Texas Intermediate crude, which
approximates world market prices for the quality of oil produced
by Petrodelta. The natural gas price is contractually fixed at
US$1.54 per thousand cubic feet.
Petrodelta Drilling Update:
In April, Petrodelta spud its first well in the Uracoa Field.
Petrodelta expects each horizontal well will require an average
of 23 days to drill and complete with an investment of
approximately US$2.2 million to US$2.5 million resulting in
reserves between 500,000 barrels of oil to 1,250,000 barrels of
oil. Petrodelta plans to drill up to 15 wells with this rig in
2008.
Petrodelta has contracted a second drilling rig which is being
mobilized and expected to begin drilling in the last half of
2008. Drilling activity will be focused on the Uracoa Field
initially with a substantial inventory of drilling locations
identified and permitted.
Windfall Profits Tax:
On April 15, 2008 the Venezuelan government published in the
Official Gazette the Law of Special Contribution to
Extraordinary Prices at the Hydrocarbons International Market
(Windfall Profits Tax). The Windfall Profits Tax establishes a
special 50% tax payable to the Venezuelan government when the
average monthly price of Brent crude exceeds US$70 per barrel.
In a similar manner, the percentage of tax is increased from 50%
to 60% when the average monthly price of Brent exceeds US$100
per barrel. At this time, regulations regarding the application
of the Windfall Profits Tax have not yet been issued. As a
result, Harvest Natural is unable at this time to estimate the
impact of the Windfall Profits Tax on Petrodelta's financial
position, results of operations or cash flows.
Exploration Program
Dussafu Marin, Gabon:
In April, Harvest Natural received final government approvals
and closed the purchase of the 50% operated interest in the
offshore production sharing contract for US$4.5 million.
Seismic data acquisition and processing of 500 kilometers of 2-D
seismic for high-grading drilling leads will commence in the
second half of 2008 and an exploratory well will be drilled
pending the seismic results. The company's estimated net cost
for the firm work program is approximately US$2 million.
Budong-Budong, Indonesia:
In April, the Indonesian government approved the company's farm-
in to earn a 47% interest in the Budong-Budong Exploration
Production Sharing Contract. The work program includes the
acquisition and processing of 550 kilometers of 2-D seismic data
as well as drilling two exploration wells. Harvest Natural will
fund 100% of the first US$17.2 million of expenditures to earn
its interest. The 2-D seismic acquisition program commenced in
February and is ongoing.
United States:
Over the last several months, Harvest Natural initiated domestic
exploration programs in two different basins. The company will
operate both exploration programs and has recently added
personnel to the organization accordingly. Each domestic
exploration program is located in highly competitive lease
acquisition areas. In order to maximize the lease position, the
company elected to complete the lease acquisition phase prior to
disclosure of specific locations or the announcement of the
drilling objectives.
One of the exploration programs is located in an area of mutual
interest with a private company covering the Upper Gulf Coast
including state waters from Nueces County, Texas to Cameron
Parish, Louisiana. The partners expect to begin drilling the
first exploratory well early in the 2008 third quarter with
Harvest Natural holding a 55% interest.
About Harvest Natural
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.
HARVEST NATURAL: Names S. Haynes & J. Yearwood, CFO & Controller
----------------------------------------------------------------
Harvest Natural Resources, Inc. has elected Stephen C. Haynes as
Vice President, Chief Financial Officer and Treasurer by the
Board of Directors effective May 19, 2008. Previously, Mr.
Haynes served as Chief Financial Officer for Cygnus Oil and Gas
Corporation. Before joining Cygnus Oil, Mr. Haynes was the
Corporate Controller with Carrizo Oil and Gas. Over a 10 year
period, he served in a series of increasingly responsible
positions with British Gas, culminating in his appointments as
Vice President-Finance of Atlantic LNG, a joint venture of
British Gas and several industry partners in Trinidad and
Tobago.
Mr. Haynes is a Certified Public Accountant, holds a Master of
Business Administration degree with a concentration in Finance
from the University of Houston and a Bachelor of Business
Administration degree in Accounting from Sam Houston State
University. He also attended the Executive Development Program
at Harvard University.
Harvest Natural also appointed Johnnye S. Yearwood as
Controller. Since December 1993, Ms. Yearwood has served in
several capacities at Harvest, most recently as Assistant
Controller. Ms. Yearwood received a Bachelors of Science degree
with emphasis in accounting from California State College in
Bakersfield, California in 1982. Ms. Yearwood is a Certified
Public Accountant.
Mr. Haynes will replace Senior Vice President and Chief
Financial Officer Steven W. Tholen, who will retire effective
May 31, 2008. Ms. Yearwood will replace Vice President and
Controller Kurt A. Nelson, who will also retire effective May
31, 2008. Mr. Haynes and Mr. Tholen will work together to
insure an orderly transition of roles and responsibilities.
Harvest Natural President and Chief Executive Officer, James A.
Edmiston, said, "Both Steve and Kurt have made significant
contributions to Harvest over the past several years. A solid
foundation has been laid for Harvest under their leadership.
Steve Haynes and Johnnye Yearwood will bring the skills and the
experience to build on that foundation as we move into the
future."
Mr. Tholen, said, "I have thoroughly enjoyed my seven years at
Harvest. They have been both challenging and rewarding.
Although it is difficult to leave the Harvest team, my wife and
I are looking forward to a very active retirement."
About Harvest Natural
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.
CITGO REFINING: Court Hears Testimonies in Environmental Case
-------------------------------------------------------------
Fanny S. Chirinos at the Caller-Times reports that the
prosecution will call two more witnesses in the U.S. District
Judge John D. Rainey’s courtroom to testify in the lawsuit Citgo
Petroleum Corp. unit Citgo Refining and Chemicals Co. is facing
for alleged damaging odors and symptoms experienced near the
plant.
The Caller-Times relates that six witnesses already testified
last Thursday in the case.
According to the Caller-Times, the prosecution called Dorothy
Gonzales Daywood and Guadalupe Lopez who are inspectors with the
Texas Commission on Environmental Quality. The inspectors said
they investigated complaints in 1996 and 1997, and traced the
source to two open-top tanks at Citgo Refining.
The Caller-Times notes that Ms. Daywood testified that the odors
she was investigating made her dizzy and nauseous and said she
had never conducted a probe on a complaint to the treatment
facility. The Caller-Times reports that Ms. Lopez had
investigated at least one complaint to the treatment plant.
According to her, refinery emissions were different from what
she smelled in the Hillcrest neighborhood, which was a strong
heavy crude, asphalt odor.
The odors investigated through other complaints might have come
from the Broadway Wastewater Treatment Plant near Concrete
Street Amphitheater, the Caller-Times says, citing Dick
DeGuerin, who leads the defense team. The wastewater plant is
2.5 miles east of Citgo Refining, according to the report.
The other witnesses reportedly include Diane Cantu, a former Oak
Park resident; Jean Salone, a Hillcrest resident; and Kathleen
Fleming, a former assistant principal at Crossley Elementary
School. The three witnesses said they smelled foul odors and
had to shelter in place on occasion, the Caller-Times says.
The Caller-Times notes that Vincent Leopold, a toxicologist with
the Texas Commission on Environmental Quality, also testified in
the case. The long-term concentrations of emission collected
through fixed air monitors near Citgo Refining “suggested they
would not cause adverse health effects,” Caller-Times quotes Mr.
Leopold.
About Citgo Refining
Citgo Refining and Chemicals Company, L.P., oversees Citgo
Petroleum's refining and petrochemical manufacturing operations.
The company operates conversion refineries in Illinois,
Louisiana, and Texas and is able to process about 117 million
barrels of gasoline, 61 million barrels of distillates, and 25
million barrels of jet fuel a year.
About Citgo Petroleum
Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.
Petroleos de Venezuela 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.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, CITGO Petroleum Corporation's Issuer Default
Rating was lowered by Fitch to 'BB-' from 'BB' following the
company's announcement that it has taken out a US$1 billion
bridge loan and used the proceeds to make a US$1 billion loan to
parent Petroleos de Venezuela SA (PDVSA IDR 'BB-', Negative
Outlook).
===========
X X X X X X
===========
* LatAm 2007 Issuance Up 25% to US$19.1 Billion, Moody's Reports
----------------------------------------------------------------
Moody's Investors Service published a special report on
Securitisation in New Markets: Despite new securitisation
markets recording 23% issuance rise in 2007; outlook for 2008
constrained by credit crisis.
Securitisation issuance volumes in new markets globally
increased 23% to US$46.6 billion in 2007 compared to 2006,
although with limited growth in some regions, says Moody's
special report. The rating agency's outlook for 2008 envisages
that issuance volumes will be constrained by the continued
fragile state of global capital markets, although geographic
expansion of securitisation into new jurisdictions may continue,
possibly with further diversification of asset classes.
"Following solid growth in issuance during the first half of
2007, the credit crunch resulting from the US sub-prime
turbulence filtered through to other regions and asset classes,
which significantly slowed down the growth in the second half,"
says Moody's Assistant Vice-President and co-author of the
report, Tycjan Bielecki.
The new markets in the Europe, Middle East and Africa (EMEA)
region recorded a 23% year-on-year decline in issuance to around
US$7.7 billion. The lower volumes reflect investors' reduced
appetite due to the global credit crisis, but the year
nonetheless saw an increasing number of jurisdictions involved
in structured finance. Among new markets in EMEA, the
Commonwealth of Independent States including Russia remained a
major securitisation player, followed by Turkey and growing
activity in the Middle East.
Latin America had total issuance of US$19.1 billion, up 25% from
2006. The growth was mainly driven by Brazil, Mexico and
Argentina, which together accounted for 89% of total domestic
securitisation activity. In cross-border issuance, Brazilian
issuers were the most active in 2007 with 34% of the total
amount issued.
Asian new markets recorded spectacular growth of 68% to US$19.8
billion. The growth was driven by India, which accounted for
almost 75% of the issuance, with over 400 transactions but a
small average deal size. Malaysian issuance ranked second (11%
of the region's total), with one third of this issuance being
Sukuk (Islamic bond) transactions. However, activity decreased
in China and Thailand. Globally, Islamic finance remains small
but shows no sign of slowing its strong growth, with Sukuk
volumes reaching over US$97 billion in 2007.
"The current credit turmoil has proved to be a test for new
securitisation markets from both growth and performance
perspectives," says Moody's Head of Business Development for
Structured Finance, Yaron Ernst. "The historic securitisations
originated in new markets globally performed well in 2007.
However, this good performance may not be fully representative
yet, as many of these deals closed only in the past couple of
years. In addition, the lack of clear definitions and uniform
reporting with respect to delinquencies and defaults presents a
challenge in terms of comparing transactions in new markets,"
says Mr. Ernst.
Moody's believes that, while the good performance may increase
market confidence in securitisations in new markets, investors
are likely to wait for the situation in mature securitisation
markets to stabilise before participating more widely in new
markets. Issuance volumes in 2008 are therefore likely to be
constrained and, in particular, cross-border issuance is likely
to decrease significantly.
Nonetheless, in 2008, Moody's expects to witness the continued
geographic expansion of securitisation into new jurisdictions.
In addition to the performance considerations, several other
factors may at least partially mitigate the negative impact of
the credit crisis: (i) the large pipeline of deals that were
postponed during H2 2007; (ii) the legal improvements regarding
securitisation in many new jurisdictions; (iii) the attractive
high yields on emerging market bonds; and (iv) the relative
isolation of some domestic markets from the effects of the
global credit crunch.
* BOND PRICING: For the Week April 28 - May 2, 2008
---------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Argnt-Bocon PR11 2.000 12/3/10 ARS 55.45
Argnt-Bocon PR13 2.000 3/15/24 ARS 53.64
Arg Boden 2.000 9/30/08 ARS 15.00
Argent-EURDIS 7.820 12/31/33 EUR 67.80
Argent-Par 0.630 12/31/38 ARS 33.07
Buenos Aire Prov 9.375 9/14/18 USD 74.75
Buenos Aire Prov 9.625 4/18/28 USD 72.75
BRAZIL
------
Brazil Rep of 7.875 3/7/15 USD 11.70
Brazil Rep of 8.250 1/20/34 USD 11.75
Brazil-Global BD 10.125 5/15/27 USD 25.39
Brazil Rep of 10.500 7/14/14 USD 25.00
CESP 9.750 1/15/15 BRL 64.48
CAYMAN ISLANDS
--------------
Shinsei Fin Caym 6.418 1/29/49 USD 69.41
Shinsei Finance 7.160 7/29/49 USD 65.86
JAMAICA
-------
Jamaica Govt LRS 7.500 10/6/12 JMD 72.06
Jamaica Govt LRS 12.750 6/29/22 JMD 74.67
PUERTO RICO
-----------
Puerto Rico Cons. 5.900 4/15/34 USD 45.00
Puerto Rico Cons. 6.250 5/1/22 USD 74.00
Puerto Rico Cons. 6.300 11/1/33 USD 47.00
VENEZUELA
---------
Petroleos de Ven 5.250 4/12/17 USD 66.70
Petroleos de Ven 5.375 4/12/27 USD 56.45
Petroleos de Ven 5.500 4/12/37 USD 55.40
Venezuela 7.000 3/31/38 USD 68.40
***********
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. Tara Eliza E. Tecarro, 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
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* * * End of Transmission * * *