/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/080530.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 Friday, May 30, 2008, Vol. 9, No. 107 Headlines A R G E N T I N A AVALON INVESTMENTS: Files for Reorganization in Court EDICOM CONSTRUCCIONES: Court Names Adriana E. Zerki as Trustee FIAT SPA: Moody's Ups All Ratings to Investment Grade Level LIDER COMBUSTIBLES: Trustee Verifies Claims Until June 10 SOLARES DE TIGRE: Files for Reorganization in Buenos Aires Court B E R M U D A FOCUS INSURANCE: Liquidator Released, Company Dissolved SEA CONTAINERS: Court OKs Revision of Non-Insider Retention Plan SEA CONTAINERS: SCSL Panel Can Hire Punter as Pension Advisor SEA CONTAINERS: Committee Blocks Plan to Depose Panel Advisor STARR NIB: Proofs of Claim Filing Deadline Is June 10 STARR NIB: Sets Final Shareholders Meeting for July 1 B O L I V I A COEUR D'ALENE: Will Launch San Bartolome Silver Mine GOLDEN EAGLE: Posts US$311,146 Net Loss in 2008 First Quarter B R A Z I L AMERICAN AIRLINES: To Discontinue New York-London Flight Service BANCO NOSSA: Sale May Pave Way for Cia. Energetica Sale BANCO NACIONAL: Approves BRL150.3 Million Financing for Geracao CA INC: S&P Upgrade Corporate Credit Rating to 'BB+' from 'BB' CHC HELICOPTER: Solicits Consents to Amend Term of 7 3/8% Notes CIA. ENERGETICA: Sale May be Possible if Banco Nossa is Sold CABLE & WIRELESS: Close to Offloading GBP12 Bln. Pension Risk HEXCEL CORP: S&P Affirms BB Long-Term Corporate Credit Rating TRANSAX INT'L: March 31 Balance Sheet Upside-Down by US$3.1 Mil. UAL CORPORATION: To Meet With USAir CEO to Iron Out Deal UAL CORPORATION: To Meet with USAir CEO to Iron Out Deal C A Y M A N I S L A N D S BEAR STEARNS: Can't Protect U.S. Assets From Lawsuits BCSP II HOLDINGS: Proofs of Claim Filing Deadline Today CLSA SUNRISE ONE: Proofs of Claim Filing Deadline Is May 30 CLSA SUNRISE ONE: Holds Final Shareholders Meeting Today CLSA SUNRISE TWO: Claims Filing Deadline Is Until Today CLSA SUNRISE TWO: To Hold Final Shareholders Meeting Today DINVEST TRADING: Proofs of Claim Filing Deadline Is May 30 DINVEST TRADING: To Hold Final Shareholders Meeting Today DISCOVERY VENTURE: Holds Final Shareholders Meeting Today EMPIRE SQUARE: Holds Final Shareholders Meeting Today FORGINGS INTERNATIONAL: Sets Final Shareholders Meeting Today IDA INVESTMENT: Sets Final Shareholders Meeting Today MELLON YIELD: To Hold Final Shareholders Meeting Today MTC HOLDING: Will Hold Final Shareholders Meeting Today ORBANI FUND: Will Hold Final Shareholders Meeting Today PARMALAT SPA: NJ Court Denies Mistrial Request vs Citigroup POSEIDON INVESTMENTS: Sets Final Shareholders Meeting Today PFW LTD: Will Hold Final Shareholders Meeting Today REX FUNDING: Will Hold Final Shareholders Meeting Today SATELLITE SP: To Hold Final Shareholders Meeting Today SEINE AIRCRAFT: Sets Final Shareholders Meeting Today SOUTHERN HEMISPHERE: Holds Final Shareholders Meeting Today C H I L E TYCO INT'L: To Present at JP Morgan Annual Conference on June 4 C O S T A R I C A US AIRWAYS: To Meet With United CEO to Iron Out Deal US AIRWAYS: Weakening Performance Cues Moody's Negative Outlook J A M A I C A CABLE & WIRELESS: Jamaican Unit Discards J$5.4B in Mobile Assets CASH PLUS: Former Manager Gets Threats, Asks for Security NATIONAL COMMERCIAL: AIC (Barbados) Sells 48.7MM Shares in Firm M E X I C O AMERICAN AXLE: Non-US Units Generate 85% of US$1.4BB New Backlog ASARCO LLC: Unidentified Firm Outbids Grupo Mexico in Auction CEMEX SAB: Stock Drops After Morgan Stanley Downgrade CORDIA CORP: March 31 Balance Sheet Upside-Down by US$4,784,160 DURA AUTOMOTIVE: Blackstone to Lead Exit Financing Facility DURA AUTOMOTIVE: Posts Q1 Loss Despite Rise in Sales KANSAS CITY: S&P Rates Unit's US$275MM Sr. Unsecured Notes BB- QUEBECOR WORLD: Seeks Approval on Lease Agreement With Headlands QUEBECOR WORLD: Blamed for Quebecor Inc.'s Huge Loss QUEBECOR WORLD: Wants to Provide Severance Pay to Some Workers WEST CORPORATION: Closes Genesys SA Acquisition P U E R T O R I C O AMERICAN AIRLINES: Unit to Suspend Puerto Rican Flights HORIZON LINES: Puts Six Personnel on Administrative Leave V E N E Z U E L A ALCATEL-LUCENT SA: Wants to Tie CEO's Pay to Performance Targets * Fitch Says Emerging Market Sovereigns at Risk from Inflation - - - - - ================= A R G E N T I N A ================= AVALON INVESTMENTS: Files for Reorganization in Court ----------------------------------------------------- Avalon Investments S.R.L. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Avalon Investments to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: L.S. Automotos SRL Cesar Diaz 5549 Buenos Aires, Argentina EDICOM CONSTRUCCIONES: Court Names Adriana E. Zerki as Trustee -------------------------------------------------------------- The National Commercial Court of First Instance in Rosario, Santa Fe, has appointed Adriana E. Zerki as trustee for Edicom Construcciones y Servicios S.R.L.'s bankruptcy proceeding. Ms. Zerki will verify creditors' proofs of claim and present the validated claims in court as individual reports. The court will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Edicom Construcciones and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Ms. Zerki will submit to court a general report containing an audit of Edicom Construcciones' accounting and banking records. Ms. Zerki will also be in charge of administering Edicom Construcciones' assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Adriana E. Zerki Zeballos 323 de Rosario Santa Fe, Argentina FIAT SPA: Moody's Ups All Ratings to Investment Grade Level ----------------------------------------------------------- Moody's Investors Service upgraded all Fiat SpA's long-term senior unsecured ratings to Baa3 from Ba1 as well as the short term ratings to Prime-3 from Not Prime. Concurrently, Moody's has assigned a Baa3 unsecured issuer rating to the entity, Fiat SpA, to replace the Corporate Family Rating, which has been withdrawn. The outlook is stable. With the return to the investment grade status, Fiat's Loss Given Default assessment has also been withdrawn. Falk Frey, Senior Vice President and the lead analyst at Moody's for the European automotive sector, said: "In 2008 year to date Fiat continued on its successful path towards a sustainable recovery of its financial profile despite a more challenging competitive landscape and the economic weakening in some markets. Fiat's ability to sustain such external pressures with a continued strong financial performance on a Group level was the key drivers of the upgrade and return to an investment grade rating." Frey went on to say, "The stable outlook reflects Moody's expectation that the operating improvements at Fiat Group Automobiles are sustainable and will be accompanied by higher contributions from all other industrial businesses in particular Iveco and CNH as well as a balanced approach between shareholders' and bondholders' interests in particular regarding future share buy backs ." Upgrades: Issuer: Fiat Finance & Trade Ltd. -- Commercial Paper, Upgraded to P-3 from NP -- Senior Unsecured Medium-Term Note Program, Upgraded to Baa3, P-3 from Ba1,NP -- Senior Unsecured Regular Bond/Debenture, Upgraded to Baa3 from Ba1 Issuer: Fiat Finance Canada Ltd. -- Senior Unsecured Medium-Term Note Program, Upgraded to Baa3 from Ba1 Issuer: Fiat Finance North America Inc. -- Senior Unsecured Medium-Term Note Program, Upgraded to Baa3, P-3 from Ba1,NP -- Senior Unsecured Regular Bond/Debenture, Upgraded to Baa3 from Ba1 Issuer: Fiat France S.A. -- Commercial Paper, Upgraded to P-3 from NP Assignments: Issuer: Fiat S.p.A. -- Issuer Rating, Assigned Baa3 Outlook Actions: Issuer: Fiat Finance & Trade Ltd. -- Outlook, Changed To Stable From Positive Issuer: Fiat Finance Canada Ltd. -- Outlook, Changed To Stable From Positive Issuer: Fiat Finance North America Inc. -- Outlook, Changed To Stable From Positive Issuer: Fiat France S.A. -- Outlook, Changed To Stable From Positive Issuer: Fiat S.p.A. -- Outlook, Changed To Stable From Positive Withdrawals: Issuer: Fiat Finance & Trade Ltd. -- Senior Unsecured Medium-Term Note Program, Withdrawn, previously rated LGD4,57% -- Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated LGD4,57% Issuer: Fiat Finance Canada Ltd. -- Senior Unsecured Medium-Term Note Program, Withdrawn, previously rated LGD4,57% Issuer: Fiat Finance North America Inc. -- Senior Unsecured Medium-Term Note Program, Withdrawn, previously rated LGD4,57% -- Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated LGD4,57% Issuer: Fiat S.p.A. -- Probability of Default Rating, Withdrawn, previously rated Ba1 -- Corporate Family Rating, Withdrawn, previously rated Ba1 Over the past two years Fiat has demonstrated a sound track record of operating performance improvements, cash generation and debt reduction and achieved a level of financial strengths that warrant an investment grade rating. Over the first months 2008, Fiat verified the robustness of its well diversified business profile and reported a group trading profit margin of 5.1% in Q1 2008 compared to 4.4% in the previous year's quarter despite the weakness of the Italian car market, a production shut down of one plant and industrial inefficiencies at CNH and has surpassed reported operating profit margins of higher rated peers Peugeot and Renault. Although Industrial net cash as reported at year-end 2007 (EUR0.4billion) has turned into a net debt position of EUR1.1billion due to seasonal working capital impact, Moody's expect Fiat to return to a reported net cash position by year-end 2008 (all number are reported data). Fiat's liquidity profile is also supportive of an investment grade rating given the company's solid cash balance and ample headroom under its committed credit facilities which are sufficient to cover cash needs arising over the next 12 months in form of debt maturities, capital expenditures, working capital needs and dividend payments. Going forward Fiat will continue to be challenged (i) to maintain positive market share trend in Western Europe and Latin America, Fiat's principal markets and (ii) to further solidify the profitability and cash flows which will be necessary to fund rising capital expenditure needs in order to keep a robust and steady renewal rate. This sustained development is a key factor - in Moody's view - to sustain the regained strength in the company's competitive position and a factor where Fiat has to close the gap compared to its direct peers. Moody's says that the stable outlook is based on the expectation that Fiat is well positioned to sustain the current momentum, benefiting from (i) the strong demand of the Fiat 500 launched in Q3 2007, (ii) a gradual overhaul of its Alfa Romeo and Lancia models, (iii) an ongoing improvement of Fiat Group Automobiles' dealer network as well as (iv) ongoing efficiency gains and (iv) the heavy restructuring engaged by the company in the past years that should continue to mitigate headwinds from an overall weakening economic environment. The ratings might be further upgraded should Fiat be able to (i) maintain positive market share trend in Western Europe and Latin America, (ii) keep a constant product renewal rate with an attractive and profitable range of vehicles across an increased spread of segments and further geographies while at the same time (iii) keep average EBITA margin above 4% (as adjusted by Moody's) through the cycle as well as (iv) FCF/Debt (as adjusted by Moody's) around 5% and (v) leverage ratio (Debt/EBITDA as adjusted by Moody's) at the level of last year (2.1x) in line with (vi) an interest coverage (as adjusted by Moody's) between 4.0-5.0x. The Baa3 ratings would come under pressure in case of a declining trend in profitability notable EBITA margin falling below 3% (as adjusted by Moody's) and negative free cash flow generation (as adjusted by Moody's) leading to a rising leverage above and interest cover below the level of the last two years (i.e. Debt/EBITDA not exceeding 3.0x and EBIT/Interest expense below 3.0x). Moody's last rating action on Fiat was an upgrade of the Corporate Family Rating to Ba1 with a positive outlook from Ba2 on August 22, 2007. 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. LIDER COMBUSTIBLES: Trustee Verifies Claims Until June 10 --------------------------------------------------------- Nestor Eduardo Amut, the court-appointed trustee for Lider Combustibles S.A.'s reorganization proceeding will be verifying creditors' proofs of claim until June 10, 2008. Mr. Amut will present the validated claims in court as individual reports. The National Commercial Court of First Instance in San Jorge, Santa Fe, 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 Lider Combustibles 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 Lider Combustibles' accounting and banking records will be submitted in court. Infobae didn't state the submission dates for the reports. The trustee can be reached at: Nestor Eduardo Amut Corrientes 1419, San Jorge Santa Fe, Argentina SOLARES DE TIGRE: Files for Reorganization in Buenos Aires Court ---------------------------------------------------------------- Solares de Tigre S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Solares de Tigre to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance in Buenos Aires. The debtor can be reached at: L.S. Automotos SRL Cesar Diaz 5549 Buenos Aires, Argentina ============= B E R M U D A ============= FOCUS INSURANCE: Liquidator Released, Company Dissolved ------------------------------------------------------- PricewaterhouseCoopers has been released as the liquidator for Focus Insurance Company Ltd., as ordered by the Supreme Court of Bermuda. Focus Insurance has been dissolved. SEA CONTAINERS: Court OKs Revision of Non-Insider Retention Plan ---------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates obtained permission from the U.S. Bankruptcy Court for the District of Delaware to amend their existing non-insider retention plan with respect to certain employees. As reported in the Troubled Company Reporter on May 13, 2008, the Debtors related that they and Towers Perrin -- their compensation consultants -- structured a retention plan that identified certain non-insider, critical employees without whom the Debtors believed they may suffer breakdowns in operating and reporting functions, which will destroy value for the bankruptcy estates. The Debtors informed the Court that retention payments were paid in three separate installments. The first installment was paid on Oct. 15, 2007. An additional one-third installment was paid on Jan. 15, 2008. The final one third will be paid at the end of April 2008. While the last payment pursuant to the Retention Plan will be made shortly, due to the unanticipated length of the Debtors' bankruptcy cases, the Debtors related that they have determined they still need to employ seven of the eligible employees. Under the Amended Retention Plan, the Debtors will make two additional payments, on July 15, 2008, and Oct. 15, 2008, to the seven eligible employees. The total cost of the Amended Retention Plan will not exceed GBP184,000 or US$364,320. The Court ordered the Debtors to place the Amended Retention Plan under seal, and not be available to anyone other than the Court, the U.S. Trustee, and the counsel to the Committees. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: SCSL Panel Can Hire Punter as Pension Advisor ------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sea Containers Services Limited obtained authority from the U.S. Bankruptcy Court for the District of Delaware to retain Punter Southall Limited as its pension advisory expert, nunc pro tunc to May 9, 2008. David Stratton, Esq., at Pepper Hamilton LLP, in Wilmington, Delaware, tells the Court that the SCSL Committee seeks to retain Punter because of the firm's experience and knowledge in the fields of pensions consultancy and advisement, especially with respect to the pension schemes of the United Kingdom. As the SCSL Committee's pension advisory expert, Punter is expected to: a. provide expert deposition and trial witness testimony with respect to pension advisory matters; b. draft an expert report with respect to pension advisory matters; c. analyze data, reports, and other information, including reports submitted by other expert witnesses, with respect to pension advisory matters; d. attend meetings of the SCSL Committee and their advisors, as necessary; e. attend meetings with other parties-in-interest in the bankruptcy cases, as necessary; and f. perform any other services as is usual or customary for an expert witness. Punter will be paid based on its hourly rates: Professional Hourly Rate ------------ ----------- David Cule US$575 Chris Parlour US$375 Punter will also be reimbursed for reasonable expenses incurred in connection with the services provided to the SCSL Committee. Punter has not received any compensation or retainer from the Debtors or the SCSL Committee. David Cule, principal and director of Punter Southall Limited and Fellow of the Institute of Actuaries, assured the Court that his company is a "disinterested person," as that term is defined in Section 101(14) of the U.S. Bankruptcy Code, as modified by Section 1107(b) of the Bankruptcy Code. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Committee Blocks Plan to Depose Panel Advisor ------------------------------------------------------------- Pursuant to Rule 7026 of the Federal Rules of Bankruptcy Procedure, the Official Committee of Unsecured Creditors in Sea Containers Ltd. and its debtor-affiliates' Chapter 11 cases asks the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to issue a protective order barring the Debtors, the Official Committee of Creditors of Sea Containers Services Ltd., and other parties-in-interest from deposing Peter Marshall. Mr. Marshall, who lives and works in London, United Kingdom, heads the team of the SCL Committee's financial advisors, Houlihan Lokey Howard & Zukin Capital, Inc., which will not be called as a witness at trial. The deposition is in connection with Mr. Marshall's pending request to compromise and allow the claims of the Trustees of the Sea Containers 1983 Pension Scheme and the Sea Containers 1990 Pension Scheme. William H. Sudell, Jr., Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware, relates that the Court has broad discretion to limit and fashion discovery to avoid waste and distraction. By this motion, he says, the SCL Committee invites the exercise of that discretion. Mr. Sudell contends that the witness did not negotiate the compromise at issue, has not valued the Schemes' claims, and will not testify at trial. While theoretically the witness may have some knowledge that is nonprivileged, that knowledge is remote from the disputes, and procuring testimony will burden the parties and bankruptcy estates with considerable waste of time and money, he continues. "The obvious purpose of the Debtors' belated effort to depose Mr. Marshall is to use the discovery process to understand the SCL Committee's current settlement views, by exploring discussions between Mr. Marshall . . . and significant constituents of the committee," Mr. Sudell tells the Court. He explains that the SCSL Committee and other parties to the Pension Settlement would, then, obtain information on how the ongoing settlement process might best be turned to advantage, which is an inappropriate use of discovery. "The request for deposition is so belated, the evident purpose so inappropriate, and the schedule already so challenging, that a protective order is an appropriate exercise of the Court's discretion," Mr. Sudell declares. He argues that the trial to consider the Pension Settlement, which commences on May 28, 2008, should proceed on schedule, and expense should not be unduly increased. Granting the request will avoid waste of the estate's resources, and a futile effort by the Debtors to discover irrelevant, privileged and inadmissible information, Mr. Sudell says. Hence, the SCL Committee says, good cause exists for the issuance of the proposed protective order. Debtors' Response The Debtors inform Judge Carey that they have accommodated the SCL Committee's broad discovery requests, including scheduling numerous fact depositions in connection with the Pension Settlement. However, the SCL Committee has refused the single fact deposition sought by the Debtors, says Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware. The Debtors have consistently suggested that they would be willing to establish convenient logistics and a limited scope for the deposition to avoid many of the hardships referenced in the SCL Committee's request. Hence, Mr. Brady asserts that the complete refusal of the SCL Committee to provide Mr. Marshall's deposition is "somewhat puzzling." "[I]n light of the SCL Committee's position . . . the Debtors will agree to dispense with the need for a deposition of Mr. Marshall at this time. However, the Debtors strongly disagree with the statements contained in the Motion regarding the potential relevance of Mr. Marshall's testimony," Mr. Sudell informs the Court. He notes that the decision to conserve estate resources and forego Mr. Marshall's deposition should not be deemed in any way as an admission on matters at issue. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) STARR NIB: Proofs of Claim Filing Deadline Is June 10 ----------------------------------------------------- Starr NIB Ltd.'s creditors are given until June 10, 2008, to prove their claims to Jennifer Y. Fraser, 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. Starr NIB's shareholder decided on May 20, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Andrew Martin c/o Thistle House 4 Burnaby Street Hamilton HM11, Bermuda STARR NIB: Sets Final Shareholders Meeting for July 1 ----------------------------------------------------- Starr NIB Ltd. will hold its final shareholders meeting on July 1, 2008, at 9:00 a.m., at Mello Jones & Martin, Thistle House 4 Burnaby Street Hamilton HM 11 Bermuda. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. Starr NIB's shareholder decided on May 20, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Andrew Martin c/o Thistle House 4 Burnaby Street Hamilton HM11, Bermuda ============= B O L I V I A ============= COEUR D'ALENE: Will Launch San Bartolome Silver Mine ---------------------------------------------------- Coeur d'Alene Mines Corp.'s Bolivian unit Manquiri told Eduardo Garcia at Reuters that it will launch the San Bartolome silver mine. As reported in the Troubled Company Reporter-Latin America on April 3, 2008, Coeur d'Alene began commissioning its San Bartolome silver mine in Bolivia and expects the first dore pour by the end of April. Coeur d'Alene started crushing and stockpiling ore. It has become connected to the Bolivian national power grid, allowing the firm to complete the final commissioning of the grinding, leaching, and silver recovery circuits. Reuters relates that San Bartolome will produce six million ounces of the metal this year. According to Manquiri's Communications Manager Edmundo Zogbi, San Bartolome will produce six million ounces of silver for the remainder of 2008, and a similar amount in 2009. It will ramp up metal production to nine million ounces per year from 2010. Mr. Zogbi commented to Reuters, "Investment to date amounts to some US$220 million ... We are going to produce 98.8 to 99 percent pure silver (in ingots)." Reuters notes that San Bartolome includes a mining crusher, a lixiviation unit to separate the silver ore from other minerals, and a smelter. It will mainly extract silver from the Cerro Rico mountain. According to Mr. Zogbi, San Bartolome will have an estimated mine life of 14.5 years. Bolivia's Comibol and organizations of independent miners will have a share of the project's revenues, Reuters says, citing Mr. Zogbi. 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. GOLDEN EAGLE: Posts US$311,146 Net Loss in 2008 First Quarter ------------------------------------------------------------- Golden Eagle International Inc. reported a net loss of US$311,146, on zero revenues, for the first quarter ended March 31, 2008, compared with a net loss of US$1,537,799, on zero revenues, in the same period last year. At March 31, 2008, the company's consolidated balance sheet showed US$5,927,674 in total assets, US$909,193 in total liabilities, and US$5,018,481 in total stockholders' equity. The company's consolidated balance sheet at March 31, 2008, also showed strained liquidity with US$46,258 in total current assets available to pay US$819,056 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2cca Going Concern Disclaimer Chisholm, Bierwolf & Nilson, LLC, in Bountiful, Utah, expressed substantial doubt about Golden Eagle International Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm reported that the company has negative working capital and has incurred substantial losses since its inception. The company currently has no mineral production and requires significant additional financing to satisfy its outstanding obligations and resume and expand mining production. The auditing firm added that the company's ability to conduct operations remains subject to other risks, including operating in isolated regions of Bolivia and the concentration of operations in a single undeveloped area. About Golden Eagle Headquartered in Salt Lake City, Golden Eagle International Inc. (OTC BB: MYNG) -- http://www.geii.com/-- is a gold and copper exploration and mining company with offices also in Santa Cruz, Bolivia. The company is engaged in the development of existing gold and copper deposits in the Guarayos Greenstone Belt within Bolivia's Precambrian shield. Exploration is ongoing in this highly prospective area. =========== B R A Z I L =========== AMERICAN AIRLINES: To Discontinue New York-London Flight Service ---------------------------------------------------------------- American Airlines Inc. will discontinue service between New York's John F. Kennedy International Airport and London's Stansted Airport, effective July 2. The service was launched in October 2007. American Airlines will continue to offer its full schedule of flights between JFK airport and London's Heathrow Airport. This decision is among a number of first-round reductions to American's flight schedule as part of the airline's previously announced plans to reduce capacity in an effort to significantly reduce costs and create a more sustainable supply-and-demand balance in the marketplace. These actions come in the face of skyrocketing fuel prices and a softening economy. Customers impacted by the schedule changes will be contacted starting next week and re-accommodated on alternative flights. In the coming weeks, the parent company, AMR Corp. will continue to make additional schedule reductions in other markets and will assess the location- and route-specific impacts of those changes. This will be done to achieve plans to reduce AMR Corp.'s fourth quarter mainline domestic capacity by 11% to 12% compared to 2007 levels and its fourth quarter regional affiliate capacity by 10 percent to 11 percent compared to 2007. Fourth quarter consolidated system capacity is expected to decline 7% to 8% year over year, including capacity reductions that were announced earlier this year. To effect these changes, AMR Corp. plans to retire 40-45 mainline aircraft -- mostly MD-80s and some Airbus A300s -- and 35-40 regional jets. In an effort to significantly reduce costs, American Eagle also will retire its Saab fleet by the end of the year. Based in Fort Worth, Texas, American Airlines Inc., a wholly owned subsidiary of AMR Corp., operates the largest scheduled passenger airline in the world with service throughout North America, the Caribbean, Latin America, Europe and Asia. The airline flies to Belgium, Brazil, and Japan. * * * As reported in the Troubled Company Reporter-Latin America on April 17, 2008, Fitch Ratings has affirmed AMR Corp.'s Issuer default rating at 'B-' and Senior unsecured debt at 'CCC/RR6' as well as its principal operating subsidiary, American Airlines, Inc.'s Issuer default rating at 'B-' and Secured bank credit facility at 'BB-/RR1'. Fitch's rating outlook for both AMR Corp. and American Airlines has been revised to stable from positive. As reported in the Troubled Company Reporter-Latin America on March 26, 2008, Standard & Poor's Ratings Services revised its outlook on the long-term ratings on AMR Corp. (B/Negative/B-3) and subsidiary American Airlines Inc. (B/Negative/--) to negative from positive. S&P also lowered its short-term rating on AMR to 'B- 3' from 'B-2' and affirmed all other ratings on AMR and American. BANCO NOSSA: Sale May Pave Way for Cia. Energetica Sale ------------------------------------------------------- O Estado de S. Paulo reports that Banco Nossa Caixa SA's probable sale to Banco do Brasil SA may help pave the way for the sale of Companhia Energetica de Sao Paulo. According to O Estado, the negotiation is part of efforts by Sao Paulo to secure federal support to renew licenses for Companhia Energetica's hydroelectric dams. Bloomberg News relates that the state failed three times to sell a stake in Companhia Energetica due to doubts over the renewal of the licenses. Sao Paulo State Governor Jose Serra wants to take advantage of the federal government's desire to sell Banco Nossa. He wants to find a solution for his own plan to sell a Companhia Energetica stake, O Estado states. Headquartered in Sao Paulo, Brazil, Banco Nossa Caixa SA -- http://www.nossacaixa.com.br/-- operates as a multiple bank offering banking and financial services through commercial and loan portfolios, including real estate and foreign exchange, as well as administering credit cards. Through its subsidiary, it operates with private pensions. Nossa Caixa uses demand, saving and time deposits, which include judicial deposits, to fund its operations. The main focus of Nossa Caixa is to attend individuals, especially public employees and small and medium- sized companies in Sao Paulo, as well as state and municipal government agencies. As the official bank for the government of the State of Sao Paulo, it administers the state's resources and state lotteries and takes care of the payroll of the indirect state administration and part of the direct administration. As of Dec. 31, 2005, the Bank's network consisted of 2,579 attendance points in its distribution network. * * * In April 2008, Moody's Investors Service assigned a Ba2 foreign currency deposit rating on Banco Nossa Caixa SA, which is constrained by the country's foreign currency deposit ceiling. BANCO NACIONAL: Approves BRL150.3 Million Financing for Geracao --------------------------------------------------------------- Banco Nacional de Desenvolvimento Economico e Social has approved BRL150.3 million financing for Geracao CIII S.A., under the Growth Acceleration Program - PAC. The funds are intended to the implementation of the Power Plant Corumba III, located in Corumba River, in the city of Luiziania, state of Goias. During the implementation phase, around one thousand direct jobs will be offered in civil construction works and equipment assembly. Total investments expected amount to BRL222.7 million. At the end of the construction, the plant will require about 30 employees involved in its operation and maintenance. Corumba River is the affluent of Paranaiba River, in the basin of Parana river, which crosses the city of Luiziania (GO), and the plant startup is expected for December 2008. Outputs will be delivered through two generating units, totaling an installed capacity of 93.6 MW and assured energy of 50.9 MW, and a 100 km long transmission system. The power plant reservoir will only occupy the areas of the city of Luiziania, in the state of Goias. The power plant Corumba III will a reservoir with an area of 77.42 km2, and total volume of 972,100,000 m3, which will be designed upon the construction of a dam, with maximum height of 54 m and 800 m of length. The power plant will be connected to the distributor through a 138 KV transmission line, simple circuit, around 100 km long up to Sao Sebastiao substation, of CEB Distribuicao S.A. According to Neoenergia, the current progress status of the works is at 78%. The energy of the power plant Corumba III (50.9 MW) will be traded through an Energy Purchase Agreement (CCVE) signed between Energetica Corumba III and CEB Distribuicao on Nov. 12, 2002, at BRL95,69/MWh, (BRL146,49/MWh at January 2008), restated by IGPM (General Index of Market Prices) until the plant�s startup. This price will be restated at an annual basis by IGPM after the plant�s startup. 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. CA INC: S&P Upgrade Corporate Credit Rating to 'BB+' from 'BB' -------------------------------------------------------------- Standard & Poor's Ratings Services has raised its corporate credit and senior unsecured debt ratings on Islandia, N.Y.-based CA Inc. to 'BB+' from 'BB'. At the same time, S&P removed the ratings from CreditWatch, where they had been placed with positive implications on March 19, 2008. The outlook is positive. "The upgrade reflects the company's prospects for sustaining good profitability and cash flow, coupled with our expectation that CA will maintain a moderate capital structure," said Standard & Poor's credit analyst Molly Toll-Reed. CA is a leading information technology management software provider. The rating on CA is supported by the company's stable revenue base, favorable business prospects, and strong cash flow. These factors are tempered by a historically aggressive financial policy, which included large debt-financed acquisitions and share buybacks. Based in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in Brazil, Indonesia, Luxembourg, Philippines and Thailand. CHC HELICOPTER: Solicits Consents to Amend Term of 7 3/8% Notes --------------------------------------------------------------- CHC Helicopter Corporation commenced a cash tender offer for all of its outstanding 7 3/8% Senior Subordinated Notes due 2014 (CUSIP No. 12541CAF1). In connection with the Offer, CHC is soliciting consents to amend the terms of the Notes and the indenture pursuant to which the Notes were issued. The Offer and the Consent Solicitation are being made in connection with a previously announced arrangement agreement that provides for the acquisition of all of CHC's outstanding Class A Subordinate Voting Shares and Class B Multiple Voting Shares by 6922767 Canada Inc., an affiliate of a fund managed by First Reserve Corporation. The completion of the Offer and the receipt of the requisite Consents are not conditions to completion of the Arrangement or the financing thereof. The Offer will expire at midnight, New York City time, on June 23, 2008, unless extended or earlier terminated by CHC. Holders who wish to receive the Total Consideration for the Notes must validly tender and not validly withdraw their Notes on or prior to 5:00 p.m., New York City time, on June 9, 2008, unless extended or earlier terminated. Amendments to Eliminate Events of Default Holders tendering their Notes will be required to consent to proposed amendments to the Indenture and the Notes, which would eliminate substantially all of the restrictive covenants contained in the Indenture and the Notes (except the covenants relating to change of control and asset sale offers), eliminate certain events of default, modify the covenant regarding mergers and consolidations, and modify or eliminate certain other provisions, including certain provisions relating to defeasance, contained in the Indenture and the Notes. Holders may not tender their Notes without also delivering Consents and may not deliver Consents without also tendering their Notes. The total consideration for each US$1,000 principal amount of Notes validly tendered and not validly withdrawn pursuant to the Offer is US$1,015. The Total Consideration includes a consent payment of US$5.00 per US$1,000 principal amount of Notes. Subject to the terms and conditions of the Offer and the Consent Solicitation, the Consent Payment will be made in respect of Notes validly tendered and not validly withdrawn and as to which Consents to the proposed amendments are delivered on or prior to the Consent Payment Deadline. Holders must validly tender and not validly withdraw Notes on or prior to the Consent Payment Deadline in order to be eligible to receive the Total Consideration. Holders who validly tender their Notes after the Consent Payment Deadline and on or prior to the Expiration Date will be eligible to receive only the tender offer consideration of US$1,010.00 per US$1,000 principal amount of Notes, representing an amount equal to the Total Consideration less the Consent Payment. Holders whose Notes are validly tendered and not validly withdrawn and are accepted for payment in the Offer will also receive accrued and unpaid interest in respect of such purchased Notes from the last interest payment date preceding the date on which payment for purchased Notes is made to, but not including, the Payment Date. The Payment Date is expected to occur promptly after the Expiration Date, assuming all conditions to the Offer have been satisfied or waived. The Offer and the Consent Solicitation are made upon the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated [May 27, 2008] and the related Consent and Letter of Transmittal. The Offer and the Consent Solicitation are subject to the satisfaction or waiver of certain conditions, including receipt of Consents sufficient to approve the proposed amendments and the closing of the Arrangement having occurred, or such Arrangement occurring substantially concurrent with the Expiration Date. The Offer to Purchase contains important information which should be read carefully before any decision is made with respect to the Offer. CHC has retained Morgan Stanley & Co. Incorporated to act as Dealer Manager and Solicitation Agent in connection with the Offer and the Consent Solicitation. Morgan Stanley & Co. Incorporated may perform the services contemplated by the Offer and the Solicitation in conjunction with its affiliates (including, without limitation, its affiliates incorporated under the federal laws of Canada). Persons with questions regarding the Offer or the Consent Solicitation should contact Morgan Stanley & Co. Incorporated at (800) 624-1808 (toll-free) or (212) 761-1941 (collect). Persons residing or incorporated in Canada should contact Morgan Stanley Canada Limited at (416) 943-8417. The Offer to Purchase and other documents relating to the Offer and the Consent Solicitation are expected to be distributed to holders of the Notes beginning [May 27, 2008]. Requests for documentation may be directed to D.F. King & Co., Inc., the Information Agent, which can be contacted at (212) 269-5550 (banks and brokers, call collect) or (888) 869-7406 (all others, call toll-free). About CHC Helicopter Corporation Headquartered in Richmond, British Columbia, in Canada, CHC Helicopter Corporation (TSE:FLY.A)V7B - http://www.chc.ca/-- is a commercial helicopter operator. The company, through its subsidiaries, operates in over 30 countries, on all seven continents and in most of the offshore oil and gas producing regions of the world. The company's operating units are based in the United Kingdom, Norway, the Netherlands, South Africa, Australia, Barbados, Brazil and Canada. It provides helicopter transportation services to the oil and gas industry for production and exploration activities through its European and global operations segments. It also provides helicopter transportation services for emergency medical services and search and rescue activities and ancillary services, such as flight training. The company's Heli-One segment is a non- original equipment manufacturer helicopter support company, providing repair and overhaul services, aircraft leasing, integrated logistics support, helicopter parts sales and distribution and other related services. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 26, 2008, Moody's Investors Service placed under review for possible downgrade the Ba3 corporate family rating and probability of default rating for CHC Helicopter Corporation. The review also covered the B1 (LGD 5, 72%) rating on CHC's $400 million senior subordinated notes. These actions followed the statement that a fund managed by First Reserve Corporation has entered into an agreement to acquire CHC. CIA. ENERGETICA: Sale May be Possible if Banco Nossa is Sold ------------------------------------------------------------ O Estado de S. Paulo reports that Banco Nossa Caixa SA's probable sale to Banco do Brasil SA may help pave the way for the sale of Companhia Energetica de Sao Paulo. According to O Estado, the negotiation is part of efforts by Sao Paulo to secure federal support to renew licenses for Companhia Energetica's hydroelectric dams. Bloomberg News relates that the state failed three times to sell a stake in Companhia Energetica due to doubts over the renewal of the licenses. Sao Paulo State Governor Jose Serra wants to take advantage of the federal government's desire to sell Banco Nossa. He wants to find a solution for his own plan to sell a Companhia Energetica stake, O Estado states. Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third largest power generator, majority owned by the State of Sao Paulo. CESP operates 6 hydroelectric plants with total installed capacity of 7,456 MW and reported net revenues of BRL1,983 million in the last twelve months through Sept. 30, 2006. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 10, 2007, Standard & Poor's Ratings Services raised its ratings on electricity generator Companhia Energetica de Sao Paulo, including its corporate credit rating to 'B' from 'B-'. At the same time, S&P raised its Brazil national scale ratings on CESP to 'brBBB-' from 'brBB'. S&P said the outlook remains positive on both scales. CABLE & WIRELESS: Close to Offloading GBP12 Bln. Pension Risk ------------------------------------------------------------- Cable & Wireless Plc is close to completing a deal that will enable it to "offload" risks in connection with its GBP12 billion pension fund, the Telegraph reports. The company is currently looking for parties interested to bid on the fund. Legal & General and Paternoster and Rothesay Life of Goldman Sachs are said to be in talks with the company on a likely bid, the Telegraph adds citing industry sources. Cable & Wireless, in its statement, said, "We are in active discussions regarding options to further 'de-risk' the pension scheme, although these options, including an insurance buyout, are not a precondition for value realization." Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- operates through two standalone business units -- International and Europe, Asia & US. The International business unit operates integrated telecommunications companies in 33 countries offering mobile, broadband, domestic and international fixed line services to residential and business customers, with principal operations in the Caribbean, Panama, Macau, Monaco and the Channel Islands. The Europe, Asia & U.S. business unit provides enterprise and carrier solutions to the largest users of telecoms services across the U.K., U.S., continental Europe and Asia -- and wholesale broadband services in the U.K. The company also has operations in India, China, the Cayman Islands and the Middle East. * * * As reported in The Troubled Company Reporter-Latin America on May 27, 2008, Standard & Poor's Ratings Services revised its outlook on U.K.-based telecommunications provider Cable & Wireless PLC to developing from stable. The 'BB-' long-term and 'B' short-term corporate credit ratings remain unchanged. As of Feb. 12, 2008, Cable & Wireless Plc carries a Ba3 long- term corporate family rating, a B1 senior unsecured debt rating and a Ba3 probability of default rating from Moody's Investors Service, which said the outlook is stable. HEXCEL CORP: S&P Affirms BB Long-Term Corporate Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its ratings, including the 'BB' long-term corporate credit rating, on aerospace supplier Hexcel Corp. S&P also affirmed the 'BB+' issue-level rating (one notch above the corporate credit rating) on the company's recently amended and increased (by an incremental US$80 million term loan) secured credit facilities. The recovery rating remains unchanged at '2', indicating an expectation for substantial (70%- 90%) recovery of principal and prepetition interest in the event of a payment default. The outlook is positive. About US$370 million of debt is outstanding. "The ratings on Hexcel reflect participation in the cyclical and competitive commercial aerospace industry and significant investment in carbon fiber capacity needed to support increasing jetliner production rates," said Standard & Poor's credit analyst Roman Szuper. "Those factors are partly offset by the company's position as the world's largest manufacturer of advanced composite materials, generally favorable market conditions, and a financial profile that is somewhat better than average for the rating." Hexcel has used cash from operations, proceeds from asset sales, and a preferred equity offering to reduce debt significantly in recent years. This, coupled with increasing earnings, resulted in debt to EBITDA of about 2.0x, a relatively low level for the rating. Standard & Poor's Ratings Services expects this ratio to remain at about this level in 2008. The company's book equity has also improved considerably because of the conversion of the preferred stock to common and a reversal of a US$118 million deferred tax valuation allowance. As a consequence, debt to capital is now much lower, at about 45%. Other credit protection measures, such as funds from operations (FFO) to debt and EBITDA interest coverage, are somewhat better than average for the rating, at about 30% and 7x, respectively. S&P expects most credit protection measures to remain satisfactory in 2008, mainly because of likely better earnings. However, high capital expenditures (about US$150 million annually) over the next two to three years to fund carbon capacity expansion in response to an expected increase in commercial airplane deliveries will limit free cash flow, which has been about breakeven in recent years and is likely to be moderately negative in 2008. Stamford, Conn.-based Hexcel is a leader in the composites industry, producing lightweight, high-performance carbon fibers, industrial fabrics, specialty reinforcements, carbon prepregs, structural adhesives, honeycomb, and composite structures for the commercial aerospace, defense and space, and industrial sectors. The company concentrates on serving growing markets in which it has a competitive advantage. Continued favorable conditions in core markets, ongoing gains in operating efficiency, and further strengthening in credit protection measures could lead to a ratings upgrade over the next 12 to 18 months. S&P could revise the outlook to stable if the slowing global economy has a greater-than-expected effect on the company's sales and profits. The recent failure of OSS Capital, an activist hedge fund that owns about 5% of Hexcel's common stock, to have any of its nominees elected to the board of directors lessens our concerns about changes in Hexcel's moderate financial policy. Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced composites company. The company develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications such as wind turbine blades. The company has subsidiaries in Austria, the United Kingdom, Spain, Hong Kong, Japan and Brazil. TRANSAX INT'L: March 31 Balance Sheet Upside-Down by US$3.1 Mil. ---------------------------------------------------------------- Transax International Limited's consolidated balance sheet at March 31, 2008, showed US$2.2 million in total assets and US$5.3 million in total liabilities, resulting in a US$3.1 million total stockholders' deficit. At March 31, 2008, the company's consolidated balance sheet also showed strained liquidity with US$1.1 million in total current assets available to pay US$5.0 million in total current liabilities. The company reported net income of US$739,863, on revenues of US$1.5 million, for the first quarter ended March 31, 2008, compared with net income of US$402,005, on revenues of US$1.2 million, in the same period last year. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c92 Going Concern Disclaimer Moore Stephens, P.C., in New York, expressed substantial doubt about Transax International Limited's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's accumulated losses from operations of approximately US$13.3 million, working capital deficiency of approximately US$4.6 million and net capital deficiency of approximately US$3.9 million at Dec. 31, 2007. About Transax International Based in Miami, Florida, Transax International Limited (OTC BB: TNSX.OB) -- http://www.transax.com/-- primarily through its wholly-owned subsidiary, Medlink Conectividade em Saude Ltda., is an international provider of information network solutions specifically designed for healthcare providers and health insurance companies. The company has offices located in Miami, Florida and Rio de Janeiro, Brazil. UAL CORPORATION: To Meet With USAir CEO to Iron Out Deal -------------------------------------------------------- UAL Corp. and US Airways Group Inc. chief executive officers will meet Thursday to continue merger talks and exchange information on potential stumbling blocks raised by UAL directors, The Wall Street Journal reports, citing people familiar with the situation. The issues raised by UAL directors include how both carriers would raise capital to fund the consolidation; how to resolve labor contract issues; and how much flexibility they would have to take airplane seats out of their combined system. At the meeting, if the CEOs find a way to resolve the outstanding issues, both could approach their boards in mid-June for approval to pursue the deal, unnamed sources told WSJ. The carriers have yet to agree on an exchange ratio for a share swap or on who might run a combined company, according to reports. The New York Times, however, said there has been little to no contact between United and USAir in recent days and the internal teams of senior executives at both companies have put the talks on "permanent hold." USAir officials were growing impatient, NYT added. To win federal approval for the carriers' planned merger transaction, an agreement from both parties should have occurred by about Memorial Day to allow time for regulatory scrutiny, said NYT. "We don't comment on rumors or speculation," United spokeswoman Jean Medina said, reports NYT. USAir Spokesman Philip Gee also declined to comment. The United-US Air talks picked up speed in April after Continental Airlines decided not to consolidate with United. United and USAir reportedly hoped to reach an agreement within a month, so it could be considered by the Justice Department before a new president takes office. NYT said although United's board met two weeks ago for an update on the discussions, the board took no formal vote on the situation since there was no agreement to consider. About US Airways Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News, Issue No. 158; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About UAL Corporation Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on May 20, 2008, Moody's Investors Service affirmed all debt ratings of UAL Corp. and its primary subsidiary United Air Lines, Inc. -- corporate family rating of B2 as well as all tranches of the Enhanced Equipment Trust Certificates supported by payments from United. The Speculative Grade Liquidity Rating has been changed to SGL-3 from SGL-2, and the outlook has been changed to negative from stable. The TCR reported on May 3, 2007, tha Fitch Ratings has affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. UAL CORPORATION: To Meet with USAir CEO to Iron Out Deal -------------------------------------------------------- UAL Corp. and US Airways Group Inc. chief executive officers will meet Thursday to continue merger talks and exchange information on potential stumbling blocks raised by UAL directors, The Wall Street Journal reports, citing people familiar with the situation. The issues raised by UAL directors include how both carriers would raise capital to fund the consolidation; how to resolve labor contract issues; and how much flexibility they would have to take airplane seats out of their combined system. At the meeting, if the CEOs find a way to resolve the outstanding issues, both could approach their boards in mid-June for approval to pursue the deal, unnamed sources told WSJ. The carriers have yet to agree on an exchange ratio for a share swap or on who might run a combined company, according to reports. The New York Times, however, said there has been little to no contact between United and USAir in recent days and the internal teams of senior executives at both companies have put the talks on "permanent hold." USAir officials were growing impatient, NYT added. To win federal approval for the carriers' planned merger transaction, an agreement from both parties should have occurred by about Memorial Day to allow time for regulatory scrutiny, said NYT. "We don't comment on rumors or speculation," United spokeswoman Jean Medina said, reports NYT. USAir Spokesman Philip Gee also declined to comment. The United-US Air talks picked up speed in April after Continental Airlines decided not to consolidate with United. United and USAir reportedly hoped to reach an agreement within a month, so it could be considered by the Justice Department before a new president takes office. NYT said although United's board met two weeks ago for an update on the discussions, the board took no formal vote on the situation since there was no agreement to consider. About US Airways Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News, Issue No. 158; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About UAL Corporation Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on May 20, 2008, Moody's Investors Service affirmed all debt ratings of UAL Corp. and its primary subsidiary United Air Lines, Inc. -- corporate family rating of B2 as well as all tranches of the Enhanced Equipment Trust Certificates supported by payments from United. The Speculative Grade Liquidity Rating has been changed to SGL-3 from SGL-2, and the outlook has been changed to negative from stable. The TCR reported on May 3, 2007, tha Fitch Ratings has affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. ========================== C A Y M A N I S L A N D S ========================== BEAR STEARNS: Can't Protect U.S. Assets From Lawsuits ----------------------------------------------------- Judge Robert Sweet of the U.S. District Court in Manhattan has ruled that The Bear Stearns Cos.' bankrupt hedge funds can't shield their U.S. assets from lawsuits while they liquidate in the Cayman Islands, Tiffany Kary at Bloomberg News reports. According to Bloomberg, Judge Sweet upheld a lower court's decision to deny Bear Stearn's hedge funds protection from creditors under Chapter 15 of the U.S. Bankruptcy Code as the Cayman Islands weren't their "center of main interest". Under Chapter 15, a firm must have a "center of main interest" outside the U.S. to qualify for protection. It can have a "nonmain" center of interest or one that has substantial, though not primary, operations. Bloomberg relates that Bear Stearns' lawyers claimed that the funds had assets and two directors in the Cayman Islands. The lawyers said the funds were registered in the Cayman Islands, so they should automatically be considered to have their center of main interest there. According to the lawyers, the denial of Chapter 15 protection is "a breach of comity, the principle of cooperation with foreign courts". Bear Stearns Asset Management -- the funds' investment manager -- and its administrator, which runs back-office operations and manages its books and records, are in New York, Bloomberg says, citing Judge Sweet. The funds' assets were in New York before a transfer made after its bankruptcy filing. The directors who were in the Cayman Islands have had no substantial involvement in the business, Judge Sweet added. The funds had no true operations in the Cayman Islands, Bloomberg says, citing University of Texas professor Jay Westbrook and other authors of Chapter 15. The funds' bankruptcies should be handled in the U.S. as they "invested in securities related to subprime mortgages," Mr. Westbrook and the other Chapter 15 authors added. The district court's ruling would stop firms in "haven countries" for tax or secrecy reasons from seeking protection under Chapter 15, Mr. Westbrook told Bloomberg. New York City-based The Bear Stearns Companies Inc. (NYSE: BSC) -- http://www.bearstearns.com/-- is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. The company has approximately 14,000 employees worldwide. The firm has offices in Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, San Francisco and San Juan. In addition to London, the firm maintains an international presence with offices in Beijing, Dublin, Hong Kong, Lugano, Milan, Sao Paulo, Shanghai, Singapore, and Tokyo. * * * In December 2007, Fitch Ratings' affirmed its Negative Outlook for The Bear Stearns Companies Inc. following the announcement of the company's fiscal year earnings for 2007. On Nov. 14, 2007, Fitch affirmed Bear Stearns' long-term credit ratings, along with its subsidiaries. Fitch also downgraded the short-term rating to 'F1' from 'F1+', and Individual rating to 'B/C' from 'B'. BCSP II HOLDINGS: Proofs of Claim Filing Deadline Today ------------------------------------------------------- BCSP II Holdings Ltd.'s creditors have until May 30, 2008, to prove their claims to John Cullinane and Derrie Boggess, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. BCSP II Holdings' shareholder decided on April 30, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess Walker House, 87 Mary Street George Town, Grand Cayman, Cayman Islands Contact for inquiries: Anthony Johnson Telephone: (345) 914-6314 CLSA SUNRISE ONE: Proofs of Claim Filing Deadline Is May 30 ----------------------------------------------------------- CLSA Sunrise One Ltd.'s creditors have until May 30, 2008, to prove their claims to Richard L. Finlay, 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. CLSA Sunrise One's shareholders decided on April 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay c/o Conyers Dill & Pearman Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, Cayman Islands Contact for inquiries: Krysten Lumsden Telephone: (345) 945 3901 Fax: (345) 945 3902 CLSA SUNRISE ONE: Holds Final Shareholders Meeting Today -------------------------------------------------------- CLSA Sunrise One Ltd. will hold its final shareholders meeting on May 30, 2008, at 9:00 a.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. CLSA Sunrise One's shareholders agreed on April 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay c/o Conyers Dill & Pearman Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, Cayman Islands Contact for inquiries: Krysten Lumsden Telephone: (345) 945 3901 Fax: (345) 945 3902 CLSA SUNRISE TWO: Claims Filing Deadline Is Until Today ------------------------------------------------------- CLSA Sunrise Two Ltd.'s creditors have until May 30, 2008, to prove their claims to Richard L. Finlay, 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. CLSA Sunrise Two's shareholders decided on April 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay c/o Conyers Dill & Pearman Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, Cayman Islands Contact for inquiries: Krysten Lumsden Telephone: (345) 945 3901 Fax: (345) 945 3902 CLSA SUNRISE TWO: To Hold Final Shareholders Meeting Today ---------------------------------------------------------- CLSA Sunrise Two Ltd. will hold its final shareholders meeting on May 30, 2008, at 9:00 a.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. CLSA Sunrise Two's shareholders agreed on April 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay c/o Conyers Dill & Pearman Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, Cayman Islands Contact for inquiries: Krysten Lumsden Telephone: (345) 945 3901 Fax: (345) 945 3902 DINVEST TRADING: Proofs of Claim Filing Deadline Is May 30 ---------------------------------------------------------- Dinvest Trading Ltd.'s creditors have until May 30, 2008, to prove their claims to Richard L. Finlay, 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. Dinvest Trading's shareholder decided on April 2, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay c/o Conyers Dill & Pearman Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, Cayman Islands Contact for inquiries: Krysten Lumsden Telephone: (345) 945 3901 Fax: (345) 945 3902 DINVEST TRADING: To Hold Final Shareholders Meeting Today --------------------------------------------------------- Dinvest Trading Ltd. will hold its final shareholders meeting on May 30, 2008, at 11:30 a.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Dinvest Trading's shareholder agreed on April 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Richard L. Finlay c/o Conyers Dill & Pearman Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, Cayman Islands Contact for inquiries: Krysten Lumsden Telephone: (345) 945 3901 Fax: (345) 945 3902 DISCOVERY VENTURE: Holds Final Shareholders Meeting Today --------------------------------------------------------- Discovery Venture Ltd. will hold its final shareholders meeting on May 30, 2008, at 11:30 a.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Discovery Venture's shareholder agreed on April 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands EMPIRE SQUARE: Holds Final Shareholders Meeting Today ----------------------------------------------------- Empire Square CDO Ltd. will hold its final shareholders meeting on May 30, 2008, at 1:00 p.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Empire Square's shareholder agreed on April 17, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands FORGINGS INTERNATIONAL: Sets Final Shareholders Meeting Today ------------------------------------------------------------- Forgings International Holdings (Cayman) Ltd. will hold its final shareholders meeting on May 30, 2008, at 11:00 a.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Forgings International's shareholder agreed on April 11, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands IDA INVESTMENT: Sets Final Shareholders Meeting Today ----------------------------------------------------- Ida Investment Fund will hold its final shareholders meeting on May 30, 2008, at 1:30 p.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Ida Investment's shareholder agreed on April 17, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands MELLON YIELD: To Hold Final Shareholders Meeting Today ------------------------------------------------------ Mellon Yield Curve Arbitrage Fund Ltd. will hold its final shareholders meeting on May 30, 2008, at 10:00 a.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Mellon Yield's shareholder agreed on April 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman, Cayman Islands MTC HOLDING: Will Hold Final Shareholders Meeting Today ------------------------------------------------------- MTC Holding (Cayman) Corp. will hold its final shareholders meeting on May 30, 2008, at 10:00 a.m., at the representative office, C1, 7/F, 7-10 Homantin Hill Road, Kowloon, Hong Kong. These matters will be taken up during the meeting: 1) accounting of the wind-up process; 2) hearing of any explanation that may be given by the Liquidator in respect of the winding up of the company, and 3) determining the manner in which the books, accounts and documentation of the company, and of the liquidator should be disposed of. MTC Holding's shareholder agreed on Feb. 21, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: William Wong Attn: Rhonda Laws P.O. Box 268, George Town Grand Cayman, Cayman Islands Telephone: (345) 949 2648 Fax: (345) 949 8613 ORBANI FUND: Will Hold Final Shareholders Meeting Today ------------------------------------------------------- Orbani Fund will hold its final shareholders meeting on May 30, 2008, at 10:30 am, at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Orbani Fund's shareholder agreed on April 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman, Cayman Islands PARMALAT SPA: NJ Court Denies Mistrial Request vs Citigroup ----------------------------------------------------------- The Hon. Jonathan Harris of the New Jersey Superior Court has denied Parmalat S.p.A.'s request for a mistrial in its lawsuit against Citigroup Inc., David Voreacos writes for Bloomberg News. Parmalat chief executive Enrico Bondi had sought a mistrial on grounds that Citigroup violated the judge's order to produce around 4,300 pages of documents in a timely manner. "A mistrial should be a last resort," Judge Harris was quoted by Bloomberg News as saying. "It should only be employed if a manifest injustice under the law would be worked upon the plaintiffs." Judge Harris also ordered Citigroup to pay legal fees tied to the mistrial request to Mr. Bondi's lawyers. Trial Suspension Judge Harris, meanwhile, granted Parmalat's request to delay the case to allow Mr. Bondi's to interview 12 witnesses about the documents, Bloomberg News relates. The judge suspended the trial between June 4, 2008, and June 9, 2008. The judge also granted request to allow Mr. Bondi's lawyers to question some Citigroup witnesses about Italian criminal investigations of the Parmalat bankruptcy. The trial -- in which Citigroup faces charges of aiding and abetting breach of fiduciary duty relating to the corrupt insiders' larceny from Parmalat -- is expected to last through the end of July. Citigroup is facing a US$2.2 billion in damages in New Jersey and has counter-sued Parmalat for US$699 million The case is Bondi v. Citigroup, BER-L-10902-04, New Jersey Superior Court (Hackensack). About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. POSEIDON INVESTMENTS: Sets Final Shareholders Meeting Today ----------------------------------------------------------- Poseidon Investments A Ltd. will hold its final shareholders meeting on May 30, 2008, at 9:00 am, at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Poseidon Investments' shareholder agreed on April 4, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman, Cayman Islands PFW LTD: Will Hold Final Shareholders Meeting Today --------------------------------------------------- PFW Ltd. will hold its final shareholders meeting on May 30, 2008, at 12.00 p.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. PFW Ltd.'s shareholder agreed on April 15, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands REX FUNDING: Will Hold Final Shareholders Meeting Today ------------------------------------------------------- Rex Funding Ltd. will hold its final shareholders meeting on May 30, 2008, at 12:30 p.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Rex Funding's shareholders agreed on April 16, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands SATELLITE SP: To Hold Final Shareholders Meeting Today ------------------------------------------------------ Satellite SP Investments Ltd. will hold its final shareholders meeting on May 30, 2008, at 9:30 am, at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Satellite SP's shareholder agreed on April 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Cullinane and Derrie Boggess c/o Walkers SPV Limited Walker House, 87 Mary Street George Town, Grand Cayman, Cayman Islands SEINE AIRCRAFT: Sets Final Shareholders Meeting Today ----------------------------------------------------- Seine Aircraft Leasing Ltd. will hold its final shareholders meeting on May 30, 2008, at 2:00 p.m., at the registered 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 five years from the dissolution of the company, after which they may be destroyed. Seine Aircraft's shareholder agreed on April 17, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands SOUTHERN HEMISPHERE: Holds Final Shareholders Meeting Today ----------------------------------------------------------- Southern Hemisphere Investments Ltd. will hold its final shareholders meeting on May 30, 2008, at 10:00 am, at the offices of Rawlinson & Hunter, One Capital Place, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process; 2) hearing of any explanation that may be given by the Liquidator in respect of the winding up of the company, and Southern Hemisphere's shareholders agreed on April 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Peter D. Anderson and Alan Milgate P.O Box 897 George Town, Grand Cayman, Cayman Islands Telephone: (345) 949-7576 Fax: (345) 949-8295 ========= C H I L E ========= TYCO INT'L: To Present at JP Morgan Annual Conference on June 4 --------------------------------------------------------------- Tyco International Ltd. will present at the JP Morgan 3rd Annual Basics & Industrials Conference in New York City on June 4, 2008 at 10:45 a.m. EDT. The company's presentation will be given by Edward Arditte and Patrick Decker. Mr. Arditte is the Senior Vice President for Strategy & Investor Relations while, Mr. Decker is the President of Tyco Flow Control. A live webcast of the presentation and the supporting materials will be available on the company's website at: http://investors.tyco.com 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. ================== C O S T A R I C A ================== US AIRWAYS: To Meet With United CEO to Iron Out Deal ---------------------------------------------------- UAL Corp. and US Airways Group Inc. chief executive officers will meet Thursday to continue merger talks and exchange information on potential stumbling blocks raised by UAL directors, The Wall Street Journal reports, citing people familiar with the situation. The issues raised by UAL directors include how both carriers would raise capital to fund the consolidation; how to resolve labor contract issues; and how much flexibility they would have to take airplane seats out of their combined system. At the meeting, if the CEOs find a way to resolve the outstanding issues, both could approach their boards in mid-June for approval to pursue the deal, unnamed sources told WSJ. The carriers have yet to agree on an exchange ratio for a share swap or on who might run a combined company, according to reports. The New York Times, however, said there has been little to no contact between United and USAir in recent days and the internal teams of senior executives at both companies have put the talks on "permanent hold." USAir officials were growing impatient, NYT added. To win federal approval for the carriers' planned merger transaction, an agreement from both parties should have occurred by about Memorial Day to allow time for regulatory scrutiny, said NYT. "We don't comment on rumors or speculation," United spokeswoman Jean Medina said, reports NYT. USAir Spokesman Philip Gee also declined to comment. The United-US Air talks picked up speed in April after Continental Airlines decided not to consolidate with United. United and USAir reportedly hoped to reach an agreement within a month, so it could be considered by the Justice Department before a new president takes office. NYT said although United's board met two weeks ago for an update on the discussions, the board took no formal vote on the situation since there was no agreement to consider. About UAL Corporation Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on May 3, 2007, Fitch Ratings has affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. About US Airways Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. US Airways has operations in Japan, Australia, China, Costa Rica, Philippines, and Spain. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News, Issue No. 158; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * The TCR-LA reported on April 17, 2008, that Fitch Ratings affirmed the debt ratings of US Airways Group, Inc. as: Issuer Default Rating at 'B-'; Secured term loan rating at 'BB-/RR1'; and Senior unsecured rating at 'CCC/RR6'. Fitch's ratings apply to approximately US$1.7 billion in outstanding debt. Fitch said the rating outlook has been revised to stable from positive. As reported in the Troubled Company Reporter-Latin America on March 27, 2008, Standard & Poor's Ratings Services revised its outlook on US Airways Group Inc. to stable from positive. S&P has affirmed all ratings, including the 'B-' long-term corporate credit rating. US AIRWAYS: Weakening Performance Cues Moody's Negative Outlook --------------------------------------------------------------- Moody's Investors Service changed the outlook of US Airways Group, Inc., to negative from positive. The Speculative Grade Liquidity rating was lowered to SGL-3 from SGL-2. The Corporate Family Rating of B3, as well as the ratings of its outstanding corporate debt instruments and selected classes of US Airways' Enhanced Equipment Trust Certificates ("EETC"), was affirmed. Although the company is taking steps to mitigate the impact of record high fuel costs by implementing programs to increase ancillary revenue, reduce capacity and reduce capital expenditures for the remainder of 2008, profitability has declined and US Airways is likely to report further operating losses after posting an operating loss for the first quarter of 2008. Moody's notes that US Airways' non-fuel unit costs continue to represent an opportunity for savings, as the benefits anticipated from the merger between US Airways and America West Airlines have yet to be fully achieved. The company's pilots groups have not ratified a common labor contract due to ongoing seniority issues, and the America West pilots continue to work under the terms of a collective bargaining agreement that became amendable in December 2006. While US Airways has also implemented various initiatives to improve revenue, they have not been sufficient to absorb the increases in its cost base. Absent a meaningful improvement in passenger yields across the industry, current high fuel costs will challenge the company's ability to improve and sustain profitability and cash flow generation at adequate levels. Debt to EBITDA of 6.8x and EBIT to interest expense of 1.3x for the 12 months to March 31, 2008 (both using Moody's standard adjustments), were reflective of credits at the low end of the B rating range but do not incorporate the full effect of current difficult operating conditions. Sustained high fuel costs would further erode the company's credit metrics and put further pressure on debt ratings. The change to the outlook of US Airways reflects the weakening financial performance of the company, which is driven largely by the continued high level of fuel costs. Despite enjoying a lower cost structure than some other mainline carriers and higher unit revenues than other Low Cost Carriers ("LCC"), US Airways has reported successive quarterly net losses, negative free cash flow and deteriorating financial metrics. Although the company's near term calls on cash are manageable due to modest debt maturities and scheduled aircraft deliveries, Moody's expects continuing cash operating losses will absorb a meaningful portion of the company's liquidity during 2008. The rating actions on the EETCs of US Airways consider the underlying Corporate Family rating of US Airways, the continuing availability of liquidity facilities to meet interest payments for 18 months in the event of a US Airways default, and the asset values of specific aircraft which secure the various EETCs. The junior classes of any EETC are generally more vulnerable to uncertainty in recovery as they hold a first loss position. Yet in the current trading market for aircraft valuation trends for the company's aircraft have continued to be favorable, and Moody's has not changed its view of relative recovery for US Airways' EETCs. The ratings on the senior tranches of the Series 2000-1, 2000-2, 2000-3 and 2001-1 Pass Through Certificates reflect that they are supported by policies issued by Aaa rated monoline insurance companies. The negative outlook reflects the continued business pressures facing US Airways, primarily due to the impact of higher fuel costs and a weak domestic demand environment. Although load factors remain strong, US Airways' ability to continue to implement fare increases and fuel surcharges is unlikely to fully offset the impact of rising fuel costs. The company's plan to reduce capacity in 2008 should allow it to increase fares but unless fuel costs decline operating profits and net income are likely to continue to be negative, and US Airways is likely to continue to sustain negative cash flow from operations. Moody's notes that US Airways should maintain an adequate liquidity profile during the next 12 months despite the expectation that cash losses from operations will represent an increasing use of funds. Although the company has financed 2008 aircraft deliveries and debt maturities are modest, US Airways does not have a revolving credit facility that could add flexibility in meeting its funding needs in the coming months. At March 31, 2008 US Airways reported approximately US$2.1 billion of unrestricted cash and short term investments. However, the company has a portion of its funds (approximately US$295 million net of impairment charges at March 31, 2008) invested in auction rate securities which are classified as non- current assets on the balance sheet. Although they have impaired to levels that US Airways believes represent fair value, the company may not be able to readily monetize the securities even at these values in the current credit market environment. US Airways is not subject to compliance with any specific financial covenants in its financing agreements other than a minimum cash balance test. The company retains a fixed charge covenant in its credit card processing agreement. However, at its current level, the holdback is at the maximum level allowable under this covenant. US Airways' rating could be lowered if the company is unable to reverse operating losses and restore cash flow and financial metrics, if unrestricted cash and short term investments fall below US$1 billion, or if the risk of credit card processors meaningfully increasing holdback requirements increases. US Airways' outlook could be stabilized with sustained increases to revenues or reduced fuel and non-fuel costs that increases cash flow from operations and mitigates the need for the company to consume existing liquidity to satisfy operating needs. Downgrades: Issuer: Hillsborough County Aviation Authority, FL * Senior Secured Revenue Bonds, Downgraded to LGD6, 92% from LGD5, 89% Issuer: Indianapolis Airport Authority, IN * Revenue Bonds, Downgraded to LGD6, 92% from LGD5, 89% Issuer: Phoenix Industrial Development Authority, AZ * Senior Unsecured Revenue Bonds, Downgraded to LGD6, 92% from LGD5, 89% Issuer: US Airways Group, Inc. * Senior Secured Bank Credit Facility, Downgraded to LGD3, \ 43% from LGD3, 42% Outlook Actions: Issuer: America West Airlines, Inc. * Outlook, Changed To Negative From Positive Issuer: US Airways Group, Inc. * Outlook, Changed To Negative From Positive Issuer: US Airways, Inc. * Outlook, Changed To Negative From Positive Withdrawals: Issuer: US Airways Group, Inc. * Senior Secured Bank Credit Facility, Withdrawn, previously rated 39 - LGD3 Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. US Airways has operations in Japan, Australia, China, Costa Rica, Philippines, and Spain. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for US$240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists US$8,805,972,000 in total assets and US$8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. ============= J A M A I C A ============= CABLE & WIRELESS: Jamaican Unit Discards J$5.4B in Mobile Assets ---------------------------------------------------------------- The Jamaica Gleaner reports that Cable & Wireless PLC's Jamaican unit has discarded J$5.4 billion in mobile assets. Cable & Wireless Jamaica's Chief Executive Officer Phil Green told The Gleaner that "the write-down of mobile assets was the principal component of a J$5.14 billion impairment of the accounts" for the financial year that ended on March 31, 2008. "The write-off relates principally to all of our mobile infrastructure assets, and let me say that it now allows us to invest in a new mobile infrastructure, details of which will be announced shortly," Mr. Green added. The Gleaner notes that Cable & Wireless Jamaica is expected to disclose investments for replacement technology within months. "We will be looking for expansion opportunities on a case-by- case basis that truly complement the vision of a pan-Caribbean enterprise. That will be the preview of this new board [of governors being created for Cable & Wireless Jamaica]," Mr. Green added. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- operates through two standalone business units -- International and Europe, Asia & US. The International business unit operates integrated telecommunications companies in 33 countries offering mobile, broadband, domestic and international fixed line services to residential and business customers, with principal operations in the Caribbean, Panama, Macau, Monaco and the Channel Islands. The Europe, Asia & U.S. business unit provides enterprise and carrier solutions to the largest users of telecoms services across the U.K., U.S., continental Europe and Asia -- and wholesale broadband services in the U.K. Specifically, the company's operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * As of Feb. 12, 2008, Cable & Wireless Plc carries a Ba3 long- term corporate family rating, a B1 senior unsecured debt rating and a Ba3 probability of default rating from Moody's Investors Service, which said the outlook is stable. As reported in the Troubled Company Reporter-Latin America on May 27, 2008, Standard & Poor's Ratings Services revised its outlook on Cable & Wireless PLC to developing from stable. The developing outlook means ratings can be raised, lowered, or affirmed. The 'BB-' long-term and 'B' short-term corporate credit ratings remain unchanged. CASH PLUS: Former Manager Gets Threats, Asks for Security --------------------------------------------------------- The Jamaica Gleaner reports that former Cash Plus Limited manager Marsha Stephens has put in a claim for the firm to provide her with bodyguards. The Jamaica Observer relates that in March 2008 Ms. Stephens, Cash Plus' manager at that time, filed an application under Section 213A of the Companies Act (2004), to put the firm into receivership. Ms. Marsha told The Gleaner that her life has been threatened since she brought the application. She said that she has had to relocate and quit her job. According to The Gleaner, Ms. Marsha made the claim against Cash Plus and the receiver/manager Kevin Bandoian. She is represented by attorney-at-law Melrose Reid. The Gleaner notes that Mr. Bandoian presented an audited financial report for Cash Plus to the Supreme Court of Jamaica. The report couldn't be approved until the court hears an application on June 23 that challenges the legality of the receivership. Cash Plus' legal representative Paul Beswick had alleged that Ms. Stephens had no legal authority to file for the firm to be placed into receivership as she is an employee. M. Beswick is relying on the Companies Act to support his claim. Cash Plus Limited is an investment club in Jamaica. It collapsed in 2007 after the Financial Services Commission moved to regulate its operations. The company is a financial arm of the Cash Plus Group of Companies, a business conglomerate established in 2002 by mortgage banker Carlos Hill. The company offers its participants the opportunity to participate in the group's ventures which include mergers and numerous acquisitions. In April this year, the Supreme Court of Jamaica placed Cash Plus into receivership. Cash Plus admitted that it wouldn't be able to pay its lenders until April 14. The firm has 40,000 lenders with loans totaling J$4 billion. Cash Plus was unable to repay its investors. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. NATIONAL COMMERCIAL: AIC (Barbados) Sells 48.7MM Shares in Firm --------------------------------------------------------------- Radio Jamaica reports that AIC (Barbados) Limited has sold 48.7 million National Commercial Bank Jamaica Limited shares to AIC Global Holdings Limited. According to Radio Jamaica, the transaction was valued at over J$1 billion. Headquartered in Kingston, Jamaica, the National Commercial Bank Jamaica Limited -- http://www.jncb.com/-- provides commercial and retail banking, wealth management services. The company's services include personal banking, business banking, mortgage loans, wealth management and insurance services. Founded in 1977, the bank primarily operates in West Indies and the U.K. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2006, Standard & Poor's Rating Services affirmed its 'B/B' counterparty credit and CD ratings on National Commercial Bank Jamaica Ltd. S&P said the outlook is stable. As reported in the Troubled Company Reporter-Latin America on May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica- based National Commercial Bank Jamaica Limited: long-term foreign and local currency Issuer Default at 'B+'; short-term foreign and local currency rating at 'B'; individual at 'D'; and support at 4. The rating outlook on the bank's ratings is stable, in line with Fitch's view of the sovereign's creditworthiness. =========== M E X I C O =========== AMERICAN AXLE: Non-US Units Generate 85% of US$1.4BB New Backlog ---------------------------------------------------------------- American Axle & Manufacturing Holdings, Inc. reported that its backlog of new and incremental business launching from 2009 through 2013 has increased to approximately US$1.4 billion in future annual sales. American Axle currently expects to launch approximately two-thirds of the US$1.4 billion new business backlog in the 2009, 2010 and 2011 calendar years. The balance of the new business backlog will launch in 2012 and 2013. The company's new business backlog reflects the company's continued success in expanding its product portfolio, customer base, served markets and global manufacturing footprint. Almost half of American Axle's new business backlog relates to rear-wheel-drive and all-wheel-drive applications for passenger cars and crossover vehicles. American Axle's new business backlog benefits from the company's continued focus on electronics product integration. This is particularly evident in the expansion of its drivetrain product offerings, such as transmission differentials and transfer cases. Approximately 85% of American Axle's new business backlog has been sourced to the company's non-U.S. facilities. This will accelerate the expansion of its high quality, cost-competitive and operationally flexible global manufacturing footprint in Brazil, China, India, Mexico, Poland and Thailand. The growth in American Axle's new business backlog also reflects its successful efforts to diversify its customer base. Recent awards in the company's new business backlog include: -- Nissan Motor Co., Ltd. has selected the company to produce rear axles and driveshafts for a 2010 model-year light vehicle program. These components will be manufactured at American Axle's Guanajuato, Mexico manufacturing facility for the North American market. -- Renault S.A. has chosen the company to manufacture rear dual-wheel axles for a 2011 model-year light commercial vehicle program. These components will be manufactured at American Axle's Changshu, China manufacturing facility for consumption in the emerging markets of Brazil, Russia, India, and China. -- Audi AG has awarded the company new and incremental transmission differential business. These components will be manufactured at American Axle's Olawa, Poland manufacturing facility. -- Brilliance China Automotive Holdings, Ltd. has selected the company to produce independent rear drive assemblies for a 2010 model-year crossover utility vehicle program. These components will be manufactured at American Axle's Changshu, China manufacturing facility for the domestic market in China. -- Chery Automobile Co., Ltd. has chosen American Axle to supply driveshafts for a 2009 model year crossover vehicle. As previously announced, this vehicle will also feature the company's rear-drive modules. These components will also be produced at its Changshu, China manufacturing facility for the domestic market in China. "Record high fuel prices, rapidly shifting consumer preferences and fast growth in the emerging markets are quickly changing the product development requirements of the global automotive industry," American Axle's Co-Founder, Chairperson of the Board & Chief Executive Officer, Richard E. Dauch said. "AAM's success in growing its new business backlog demonstrates that our long-term strategic goals of expanding and diversifying AAM's product portfolio, customer base, served markets and global manufacturing footprint are on track and in balance with the needs of our customers." American Axle values its new business backlog based on production volume estimates and program design direction provided by its customers. The sales value of these awards will depend on product volumes, program launch timing and foreign currency exchange. Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on April 7, 2008, Moody's Investors Service placed American Axle & Manufacturing Holdings, Inc.'s Ba3 Corporate Family Rating under review for downgrade. ASARCO LLC: Unidentified Firm Outbids Grupo Mexico in Auction ------------------------------------------------------------- Grupo Mexico SAB has failed to be the lead bidder in an auction that will decide the fate of its Asarco LLC unit after a bidder, whose name was not disclosed pursuant to a confidentiality deal among bidders, offered more than US$2.6 billion, Steven Church of Bloomberg News reports. Grupo Mexico will keep the fight to regain control of the copper producer and has filed a plan to pay all of its debts, Bloomberg cites company attorney Luc Despins as saying. Bloomberg relates that four companies were vying to reorganize Asarco and buy its remaining assets. The winner will be the lead, or "stalking horse," bidder for an auction to become the financial sponsor of Asarco's Chapter 11 reorganization plan. Grupo Mexico's bankrupt unit may sign a contract with the stalking horse on May 30. According to the Bloomberg report, the bankruptcy court will hold a hearing on June 12 and 13 to decide whether to grant the stalking-horse offer and rules for the final auction. A breakup fee of about US$50 million would be paid to the stalking horse should it lose to a rival, the report adds. About ASARCO Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/ -- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services And investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed US$600 million in total assets and US$1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05- 20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since April 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for Chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). ASARCO and its debtor affiliates are scheduled to file a plan of reorganization on June 10, 2008. CEMEX SAB: Stock Drops After Morgan Stanley Downgrade ----------------------------------------------------- CEMEX S.A.B. de C.V.'s stocks dropped 3.5% to MXN30.73 in Mexico City trading following the downgrade of shares by Morgan Stanley and after rival Holcim Ltd. grabbed an exclusive deal to supply materials for London's Olympic Park, William Freebairn of Bloomberg News reports. Morgan Stanley analysts Nicolai Sebrell and Tatiana Feldman lowered their rating on Cemex shares to "underweight" from "equal-weight", and noted that U.S. cement prices may sink as demand falls, Bloomberg relates. In 2008, the company's shares increased 13% compared with a 6.4% gain for the Bolsa index, Bloomberg adds. According to Bloomberg, Cemex lost the contract to Holcim to provide sand, gravel, crushed stone and recycled concrete for construction of the site for the 2012 Olympic Games. Financial details of the contracts were not disclosed. Headquartered in Mexico, CEMEX S.A.B. de C.V. -- http://www.CEMEX.com/-- is a growing global building solutions company that provides high quality products and reliable service to customers and communities in more than 50 countries throughout the world, including Argentina, Colombia and Venezuela. Commemorating its 100th anniversary in 2006, CEMEX has a rich history of improving the well-being of those it serves through its efforts to pursue innovative industry solutions and efficiency advancements and to promote a sustainable future. * * * On May 30, 2005, Moody's Investors Service revised the ratings outlook on Cemex S.A. de C.V.'s Ba1 ratings to positive from stable. Ratings affected include the company's Ba1 ratings on approximately US$110 million in senior unsecured Euro notes and its senior implied rating. CORDIA CORP: March 31 Balance Sheet Upside-Down by US$4,784,160 --------------------------------------------------------------- Cordia Corp.'s consolidated balance sheet at March 31, 2008, showed US$11,967,242 in total assets and US$16,751,402 in total liabilities, resulting in a US$4,784,160 total stockholders' deficit. At March 31, 2008, the company's consolidated balance sheet also showed strained liquidity with US$4,842,948 in total current assets available to pay US$15,734,758 in total current liabilities. The company reported a net loss of US$838,273, on revenues of US$12,016,441, for the first quarter ended March 31, 2008, compared with a net loss of US$640,904, on revenues of US$10,236,735, in the same period last year. For the three month period ended March 31, 2008, the company's wireline services revenue increased 14.1% to US$11,356,943 from US$9,952,700 reported in the same period last year. This increase is attributable to a 22.0% increase in lines, which is primarily due to the acquisition of NST in August 2007. For the three month period ended March 31, 2008, VoIP services revenue increased to US$654,998 as compared to approximately US$166,994 reported in the same period in 2007. Approximately US$328,000 of the increase in VoIP revenue was related to the company's international services and approximately US$160,000 was related to the company's domestic services. Included in the increase in international services were equipment sales of US$161,000. Business Process Outsourced Services revenue, which is income earned through outsourcing of billing services, data, and website technology to wholesale telecommunications providers, decreased 97.0% to US$4,500 for the three month period ended March 31, 2008, as compared to US$117,041 during the same period in 2007. This change occurred as a result of the company's wholesale customers' decreased line counts. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2cc7 Going Concern Disclaimer Lazar Levine & Felix LLP, in New York, expressed substantial doubt about Cordia Corp.'s ability to continue as a going concern after auditing the company's consolidted financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's negative working capital, stockholders' deficit and losses from operations. About Cordia Corp. Based in Winter Garden, Fla., Cordia Corporation (OTC BB: CORG) -- http://www.cordiacorp.com/-- through its operating subsidiaries, Cordia Communications Corp., CordiaIP Corp., My Tel Co Inc., Northstar Telecom Inc., and Cordia International Corp. offers business, residential, and wholesale customers local and long distance telecommunications services in more than sixty (60) countries utilizing traditional wireline and Voice over Internet Protocol (VoIP) technologies. In addition, Cordia develops and provides a suite of proprietary web-based billing software and outsourced services to local, long distance and VoIP telecommunications providers. The company has Latin America operations in Mexico, Brazil, Argentina, Chile and Peru. DURA AUTOMOTIVE: Blackstone to Lead Exit Financing Facility ----------------------------------------------------------- The Blackstone Group will lead DURA Automotive Systems, Inc.'s exit financing package, Credit Investment News says. The report, however, says it is unsure whether Blackstone will put up the entire financing or syndicate it to other investors. The exit financing facility will be comprised of a US$150 million first lien term loan and a US$110 million revolving credit facility, which includes a US$25 million letter of credit sub-facility. The Plan conditions its effectivity on the consummation of the Exit Facility. DURA's US$90 million Revolving Credit Facility and US$170 million Replacement Financing Facility require DURA to procure commitment to provide equity exit financing by April 15, 2008, and debt equity financing by May 8. The Revolving Credit Facility and the Replacement Financing Facility will expire on the earlier of June 30, 2008, or the substantial consummation of the Plan. Aside from the Exit Financing, the Plan also contemplates for a New Money Second Lien Loan with certain existing creditors that will provide a second lien secured term loan with a new capital infusion of US$80 million, and a face amount of US$100 million. Conditions precedent to the effective date of the Plan include the consummation of the New Money Second Lien Loan and the Exit Credit Facility. DURA expects the Effective Date to occur in the second quarter of 2008. Rochester Hills, Michigan-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006, (Bankr. D. Del. Case No. 06-11202). Marc Kieselstein, P.C., Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., at Kirkland & Ellis LLP are lead counsels for the Debtors' bankruptcy proceedings. Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., at Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsels. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of Jan. 31, 2008, the Debtor had US$1,503,682,000 in total assets and US$1,623,632,000 in total liabilities. On April 3, 2008, the Court approved the Debtors' revised Disclosure Statement explaining their revised Chapter 11 plan of reorganization. (Dura Automotive Bankruptcy News, Issue No. 57; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Posts Q1 Loss Despite Rise in Sales ---------------------------------------------------- DURA Automotive Systems, Inc., tells the U.S. Securities and Exchange Commission that it is unable to file its quarterly report on Form 10-Q for the quarter ended March 30, 2008, by the deadline without unreasonable effort and expense. C. Timothy Trenary, DURA's vice president and chief financial officer, relates that the company is currently addressing several material weaknesses, which has delayed the completion of the financial report and other information to be included in its Annual Report on Form 10-K for the year ended Dec. 31, 2007, and the 2007 quarterly Forms 10-Q reports. He says DURA is working diligently to finalize its financial statements for the year ended Dec. 31, 2007, and the 2007 quarterly 10-Q reports, and is providing Deloitte & Touche LLP, its financial advisor, with the information necessary to complete the audit of DURA's consolidated financial statements. As a result of DURA's efforts to complete the 2007 Form 10-K and the 2007 quarterly 10-Q reports, it is unable to finalize the First Quarter 2008 Form 10-Q, Mr. Trenary says. Mr. Trenary relates that the SEC requires DURA to explain whether the results of operations expected to be reported for the quarterly period ended March 30, 2008, will reflect significant changes from the results of operations for the quarterly period ended April 1, 2007. However, DURA has not filed its quarterly report on Form 10-Q for the quarterly period ended April 1, 2007, because it has not finalized those results of operations. As a result, DURA is unable to determine whether its results of operations for the first quarter of 2008 will reflect significant changes from those in the first quarter of 2007, Mr. Trenary says. DURA, however, discloses a brief summary of its results of operations for the first quarter of 2008: -- DURA expects to report a net loss for the first quarter ended March 30, 2008. The net loss for first quarter ended March 30, 2008, will include charges for facilities consolidation, asset impairments, restructuring and reorganization. In 2008, the company has incurred a significant amount of professional fees and debt extension and renewal charges associated with our reorganization. Furthermore, during the third quarter of 2007, DURA completed the sale of its Atwood Mobile Products division, which sale will impact the company's financial results in 2008, as compared to 2007. -- Sales increased due to volume and price increases, favorable product mix, favorable foreign currency fluctuations due to the strengthening of the Euro compared to the U.S. dollar. Europe accounted for the total increased sales in 2008. In 2007, there are slowdowns in the North American automotive market, which negatively impacted net sales and gross margin during the first half of 2007. -- Operating margins improved due to increased sales, improvement or reduction in excess capacity resulted from collecting on the ongoing restructuring and manufacturing operations alignments, and relocations efforts to lower cost countries. The improvement in operating losses resulted from lower employee-related expenses due to reduced headcount, which was partially off set by higher professional fees and employee related compensation in 2008. DURA continues to focus on these costs to ensure they are aligned with the business. DURA also discloses several information that will be included its first quarter of 2008 results: -- Facility consolidation charges represent facility closure and exit costs associated with DURA's ongoing restructuring plans. Charges include severance, asset impairment, and costs related to moving people and businesses. DURA continues to incur expenses as it implement the restructuring plans. -- Reorganization items represent primarily professional fees directly related to Chapter 11, which include fees for advisors to the Debtors, unsecured creditors and secured creditors, as the company comes closer to its emergence date, and fees related to extension and renewal of the DIP financing. -- During the second quarter ended July 2, 2006, DURA provided a full valuation allowance against all applicable U.S. deferred tax assets. In 2007 and 2008, it has continued to provide a full valuation allowance against all applicable U.S. deferred tax assets. -- In Aug. 27, 2007, DURA completed the sale of its Atwood segment for consideration of US$160,200,000, adjusted with certain purchase price adjustments pursuant to a settlement approved by the Court in late April 2008. Prior year amounts have been reclassified to reflect the sale of Atwood in 2007 that is required to be reported as a discontinued operation under SFAS No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets." Further, in 2008, DURA recognized a one-time favorable adjustment from the settlement of a lease obligation related to the 2002 divestiture of its Mechanical Assemblies Europe business, a discontinued operation. Rochester Hills, Michigan-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006, (Bankr. D. Del. Case No. 06-11202). Marc Kieselstein, P.C., Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., at Kirkland & Ellis LLP are lead counsels for the Debtors' bankruptcy proceedings. Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., at Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsels. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of Jan. 31, 2008, the Debtor had US$1,503,682,000 in total assets and US$1,623,632,000 in total liabilities. On April 3, 2008, the Court approved the Debtors' revised Disclosure Statement explaining their revised Chapter 11 plan of reorganization. (Dura Automotive Bankruptcy News, Issue No. 57; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) KANSAS CITY: S&P Rates Unit's US$275MM Sr. Unsecured Notes BB- -------------------------------------------------------------- Standard & Poor's Ratings Services has assigned its 'BB-' rating to Kansas City Southern Railway Co.'s US$275 million senior unsecured debt due 2015, one notch higher than the corporate credit rating on parent company Kansas City Southern. S&P also assigned a recovery rating of '2' to the notes, indicating that lenders can expect substantial (70%-90%) recovery in the event of a payment default. The notes are guaranteed by Kansas City Southern. S&P affirmed its 'B+' long- term corporate credit on Kansas City Southern. Proceeds from the new debt issuance will be used to repurchase US$200 million aggregate principal amount of 9.5% notes due 2008 and related fees, to reduce drawings under Kansas City Southern Railway Co.'s revolving credit facility, and for general corporate purposes. The ratings on Kansas City Southern reflect its highly leveraged capital structure, substantial capital spending requirements, and challenges associated with its integration of Kansas City Southern de Mexico S. de R.L. de C.V., the Mexican railroad company it acquired in April 2005. Offsetting these risks to some extent are the favorable characteristics of the United States freight railroad industry and the company's strategically located rail network. Kansas City Southern has strengthened its financial profile and liquidity somewhat over the past year as a result of generally favorable industry conditions and improved operating efficiency. The proposed refinancing will further enhance liquidity as will the expected redemption of the 4.25% series C preferred stock which the company has stated is likely to occur around June 1, 2008. Funds from operations (FFO) to debt is now in the upper- teens percentage area (versus 8% in 2005), and adjusted debt to capital is in the mid-50% area (compared with the low-60% area in 2005). Although debt levels are likely to remain relatively unchanged because of ongoing investments in infrastructure and equipment, S&P expects further improvement in operating metrics over time as the company benefits from some new revenue opportunities, a continuing favorable pricing environment, and further efficiency gains, although the slowing U.S. economy could temper volume gains over the short term. If Kansas City Southern continues to bolster its liquidity position and improve its operating performance, S&P is likely to raise ratings within the next 12 months. If liquidity deteriorates -- either as a result of operating pressures, investment requirements, or early termination of the credit facility, which could happen if upcoming debt maturities are not refinanced at least 90 days before their maturity -- S&P would likely lower ratings. Headquartered in Kansas City, Missouri, Kansas City Southern -- http://www.kcsouthern.com/en-us-- is an international transportation holding company comprised of three primary railroads: The Kansas City Southern Railway Company, Kansas City Southern de Mexico, and Panama Canal Railway Company. QUEBECOR WORLD: Seeks Approval on Lease Agreement With Headlands ---------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates, through the operations of Debtor Quebecor World Logistics Inc., provide freight and logistics services to their customers. QW Logistics is currently in the process of relocating a consolidation facility in New Jersey. Michael J. Canning., Esq., at Arnold & Porter LLP, in New York, told the U.S. Bankruptcy Court for the Southern District of New York that as response to the increased demand for co-mailing services, the Debtors must be able to provide state-of-the-art co-mailing services to their customers. The Debtors are presently in the process of acquiring six state-of-the-art 30- Pocket SF505 Co-Mailer Systems. The Debtors intend to locate certain of the Co-Mailers to the Northeast United States. The Debtors currently do not own or lease any facilities in that area to support the installation of multiple Co-Mailers. Moreover, the Debtors have determined that they can realize certain efficiencies and cost savings, and consolidate and streamline their operations by locating certain of the Co-Mailers at the same facility as QW Logistics' Northeastern United States consolidation facility, Mr. Canning related. Accordingly, the Debtors are in need of additional real property that can serve as both a consolidation facility for QW Logistics and for the Co-Mailers. Mr. Canning related that the Debtors have determined that the facility best suited for the needs of both QW Logistics and the Debtors' co-mailing business is the site owned by Headlands Realty Corp., located at 13 Jensen Drive, in Franklin Township, Somerset County, New Jersey. The Debtors asked permission from the U.S. Bankruptcy Court for the Southern District of New York to enter into a lease agreement with Headlands. Mr. Canning said that Quebecor World (USA) Inc. agreed to execute to Headlands a guaranty of lease dated April 8, 2008, pursuant to which QW USA agreed to unconditionally and guarantee the prompt payment of all rents and sums payable by QW Logistics and the performance by QW Logistics of each of the terms of the Lease. The initial term of the Lease commences on April 8, 2008, and ends on Oct. 31, 2020. QW Logistics will have the right to renew the Lease for four additional five-year terms at rates yet to be determined. The pre-based rent commencement date period is from April 8, 2008 to Sept. 30, 2008. QW Logistics' estimated monthly rental payment under the Lease during the initial rental period from May 1, 2009, to Sept. 30, 2013, will be US$138,354. In addition, QW Logistics is required to make an advance payment of rent of US$138,354 in connection with QW Logistics' entry into the Lease. QW Logistics is required to provide Headlands with a security deposit of US$1,700,000 through a letter of credit, which will be reduced to US$141,666 on each anniversary of the base rent commencement date for each year of the Lease's term. QW Logistics will have the right to construct or install certain tenant improvements. Headland will pay QW Logistics a tenant improvement allowance of US$1,143,249. Mr. Canning said that the operational capacity that the Debtors will have based at the new facility will provide it with a competitive edge in the Northeast United States and with leverage in obtaining new customers. Mr. Canning added that the absence of a co-mailing and freight and logistics businesses in the Northeast United States will jeopardize the Debtors' ability to meet customer needs and will impair its strategic growth plans in the co-mailing business. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW) -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. The company has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. 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 July 25, 2008. (Quebecor World Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in- Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Blamed for Quebecor Inc.'s Huge Loss ---------------------------------------------------- Quebecor Inc. recognized a consolidated net loss of US$969.2 million in 2007, compared with a net loss of US$93.9 million in 2006. Quebecor Inc. said the net loss in 2007 was essentially due to Quebecor's share of the US$2.29 billion net loss reported by Quebecor World -- US$1.30 billion after non-controlling interest, with no impact on Quebecor's liquidity -- which was partially offset by net income of US$327.1 million recorded by Quebecor Media. Quebecor Inc. notes that a portion of its share of Quebecor World Inc.'s net loss was reversed upon deconsolidation on Jan. 21, 2008, generating a US$724.5 million gain (after non- controlling interest) in the first quarter of 2008. This amount represents Quebecor World's net asset deficiency, i.e., the excess of the liabilities and non-controlling interest related to Quebecor World over Quebecor World's assets included in Quebecor's consolidated balance sheet as of Dec. 31, 2007. Quebecor Inc. said it will delay the release of its consolidated financial statements for the first quarter ended March 31, 2008. The release of Quebecor's consolidated financial results is dependent on the production by Quebecor World of its own financial results. Quebecor Inc. released its annual consolidated financial statements on May 8, 2008. It is now planning the production of its quarterly financial results, which it expects to report in early June 2008. Quebecor Inc. Severing Ties with QWorld On May 1, 2008, the Troubled Company Reporter said that following the release of the financial results of Quebecor World for the 2007 financial year, Quebecor Inc. had specified that Quebecor World is a legal entity distinct from Quebecor and Quebecor World's announced net losses have no impact on Quebecor's liquidity. As reported in the TCR on Jan. 28, 2008, Quebecor Inc., Quebecor Media Inc. and its subsidiaries are not affected in any way by the decision of Quebecor World to seek court protection from creditors under the Companies' Creditors Arrangement Act (CCAA). Quebecor Inc. said that Quebecor World is an independent company, distinct from the two other entities, and its current situation will have no effect on the normal, continuing operations of Quebecor Inc. and Quebecor Media Inc. Quebecor Inc. formally advised Quebecor World a week ago that it must remove "Quebecor" from its corporate name. This measure is intended to eliminate any confusion in the public. About Quebecor Inc. Quebecor Inc. (TSX: QBR.A, QBR.B) is a communications company with operations in North America, Europe, Latin America and Asia. It has two operating subsidiaries, Quebecor World Inc. and Quebecor Media Inc. Quebecor World is one of the largest commercial print media services companies in the world. Quebecor Media owns operating companies in numerous media related businesses: Videotron Ltd., the largest cable operator in Quebec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, Canada's largest national chain of tabloids and community newspapers; TVA Group Inc., operator of the largest French language over the air television network in Quebec, a number of specialty channels, and the English language over the air station Sun TV; Canoe Inc., operator of a network of English and French language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; companies engaged in book publishing and magazine publishing; and companies engaged in the production, distribution and retailing of cultural products, namely Archambault Group Inc., the largest chain of music stores in eastern Canada, TVA Films, and Le SuperClub Videotron Ltd., a chain of video and video game rental and retail stores. Quebecor Inc. has operations in 18 countries. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. The company has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. 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 July 25, 2008. (Quebecor World Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in- Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. QUEBECOR WORLD: Wants to Provide Severance Pay to Some Workers -------------------------------------------------------------- Quebecor World Inc. and its debtor-affiliates sought the U.S. Bankruptcy Court for the Southern District of New York's permission to modify their severance program to: (a) a limited number of employees whom the Debtors have determined to be critical to an effective shutdown of the Northeast Graphics facility; (b) make certain critical employees, who are not eligible to receive 26 weeks of severance, be eligible for 26 weeks of severance; and (c) make certain critical employees already entitled to 26 weeks severance be eligible for an additional severance enhancement ranging from US$2,000 or US$10,000 per employee. Michael J. Canning, Esq., at Arnold & Porter LLP, in New York, related that the Debtors' severance program provides severance payments to certain employees in the event of involuntary termination under the Debtors' Reduction in Force policy. The severance benefits available to employees is dependent on the length of their tenure with the Company. Employees are eligible for a maximum of 26 weeks of severance pay under the Severance Program. On May 1, 2008, the Debtors announced their intention to close their Northeast Graphics printing facility, which employs 330 individuals. According to Mr. Canning, the Debtors have determined that it is critical to the ultimate success and the ongoing operations of the Debtors' business that they retain certain critical employees at the NEG facility during the shutdown process. Mr. Canning told the Court that in order to give these employees sufficient incentive to remain with the company, the Debtors propose to modify their severance program. Mr. Canning said that the Modified Severance Program is being offered by the Debtors in order to insure that the needs of their customers continue to be met in an uninterrupted and orderly manner. Mr. Canning added that an orderly shutdown will only be possible by providing the financial security and incentives to select employees to ensure that they remain with the company during the shutdown and continue to perform at a high level. According to Mr. Canning, these employees are technical personnel and customer service employees. Mr. Canning noted that the local market is highly competitive for these types of employees and, without the ability to provide enhanced severance pay to these employees, the Debtors are concerned that it will be impossible to implement a non-disruptive closing of the NEG facility. The total cost of the proposed enhanced severance for the NEG facility is US$222,000. If certain of the eligible employees remain with Quebecor World at other locations after the shutdown has been completed, the costs involved will be reduced. In anticipation of other possible plant closures during the Debtors' Chapter 11 cases, the Debtors also sought the Court's authority to implement the Modified Severance Program upon their determination to close other facilities. The Debtors proposed that the requested Modified Severance Program be implemented at other facilities be subject to a cost limitation of US$500,000 per facility, and US$1,000,000 in aggregate. Mr. Canning noted that the severance payment will be made to a particular employee only if the employee is ultimately not relocated to another job within Quebecor World after the closure of the NEG facility. About Quebecor World Based in Montreal, Quebec, Quebecor World Inc. (TSX: IQW) (NYSE: IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. The company has operations in Mexico, Brazil, Colombia, Chile, Peru, Argentina and the British Virgin Islands. 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 July 25, 2008. (Quebecor World Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter-Latin America on Feb. 13, 2008, Moody's Investors Service assigned a Ba2 rating to the US$400 million super priority senior secured revolving term loan facility of Quebecor World Inc. as a Debtor-in- Possession. The related US$600 million super priority senior secured term loan was rated Ba3 (together, the DIP facilities). The RTL's better asset value coverage relative to the TL accounts for the ratings' differential. WEST CORPORATION: Closes Genesys SA Acquisition ----------------------------------------------- West Corporation has completed the acquisition of Genesys SA, a leading global multimedia collaboration service provider. The tender offer for Genesys shares was first announced on Feb. 19, 2008 at a price of EUR2.50 (approximately US$3.88) per share of common stock of Genesys. As previously announced, in aggregate, 64,224,366 Genesys shares had been tendered into the offer, including the Genesys shares represented by ADSs tendered into the offer, representing 91.9% of the share capital and the voting rights of Genesys on an issued and outstanding basis. Subsequent Offering Period Having obtained greater than 66.66% of the total share capital and voting rights of Genesys on a fully diluted basis, West International Holdings Limited (WIH), the Company's wholly-owned subsidiary, has commenced a subsequent offering period that began on May 19, 2008 and will expire on June 6, 2008. The terms and amount of the consideration offered in this subsequent offering period are identical to those offered during WIH's initial tender offer for Genesys. Holders of Genesys ADSs may tender their ADSs in the subsequent offer until 5:00 p.m. Eastern time on June 6, 2008. West currently expects that the French Autorit� des march�s financiers (AMF) will publish the results of the subsequent offering period on or about June 19, 2008. West expects that the settlement date of the subsequent offering period will occur on or about June 25, 2008 and in respect of Genesys ADSs tendered in the subsequent offer, on or about June 30, 2008 (to allow for the necessary foreign exchange conversions). Open Market Purchases WIH intends to purchase Genesys shares in open market transactions on the Eurolist market of Euronext Paris during the subsequent offering period. Such open market purchases will be made at a price of EUR2.50. Through May 21, 2008, WIH has purchased 884,502 shares through open market purchases. Squeeze Out In accordance with the regulations of the AMF, in the event that WIH acquires 95% or more of the outstanding shares of the total share capital and voting rights of Genesys, WIH intends, promptly following completion of the subsequent offering period, to request from the AMF the implementation of a mandatory acquisition (squeeze-out) of the remaining shares (including the shares represented by ADSs) not held by it. Financing Total acquisition costs, including transaction expenses, is approximately US$345 million. To finance this transaction, West expects to use cash of approximately US$80 million and to borrow approximately US$265 million. The currencies used to fund the acquisition are: In Millions Funded In: Total US US Euros Sterling -------- -- ----- -------- Cash $80 $40 EUR25.8 -- Debt $265 $190 EUR24.2 GBP19.0 Total $345 $230 EUR50.0 GBP19.0 ------- -------- Exchange Rate 1.55 1.97 The effective interest rate on the US dollar-based debt is 8.3% and the foreign-based debt is 8.2%. The terms of both financing instruments can be found in the Company's most recent Form 10-Q. About West Corporation Headquartered in Omaha, Nebraska, West Corporation -- http://www.west.com/-- is a provider of outsourced communication solutions to many companies, organizations and government agencies. West has a team of 42,000 employees based in North America, Europe, and Asia. West helps its clients communicate effectively, maximize the value of their customer relationships and drive greater profitability from every interaction. The company also has operations in Australia, Canada, China, Hong Kong, India, Jamaica, Mexico, Philippines, Singapore, Switzerland and the United Kingdom. * * * As reported in the Troubled Company Reporter-Latin America on May 27, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' loan rating on the senior secured first-lien bank facility of West Corp. (B+/Stable/--), following the announcement that the company will add US$134 million to its first-lien term loan. ==================== P U E R T O R I C O ==================== AMERICAN AIRLINES: Unit to Suspend Puerto Rican Flights ------------------------------------------------------- Diario Libre reports that American Airlines Inc.'s subsidiary, American Eagle Airlines Inc., will suspend flights between San Juan, Puerto Rico, and Samana. American Eagle told Diario Libre that it will decrease flights from San Juan to other cities. The suspensions of flights are due to a "reconstruction process", American Eagle added. Terry Maxon at The Dallas Morning News relates that American Eagle will decrease the San Juan flights to 33 from 55. American Eagle will "move some Super ATR-72 turboprop airplanes to Dallas/Fort Worth and will ground its fleet of 26 Saab turboprop airplanes". DR1 Newsletter notes that American Eagle will also suspend flights from Aruba. The San Juan and Aruba destinations will continue to be served from Miami. According to The Dallas Morning, American Eagle's President Peter Bowler told the airline's staff, "Fuel prices have risen so quickly and show no signs of falling, the economy is far from strong and airline industry losses are mounting." American Eagle will continue to serve Santo Domingo, Punta Cana, Santiago, and La Romana, DR1 states. Based in Fort Worth, Texas, American Airlines Inc., a wholly owned subsidiary of AMR Corp., operates the largest scheduled passenger airline in the world with service throughout North America, the Caribbean, Latin America, Europe and Asia. The airline flies to Belgium, Brazil, and Japan. * * * As reported in the Troubled Company Reporter-Latin America on April 17, 2008, Fitch Ratings has affirmed AMR Corp.'s Issuer default rating at 'B-' and Senior unsecured debt at 'CCC/RR6' as well as its principal operating subsidiary, American Airlines, Inc.'s Issuer default rating at 'B-' and Secured bank credit facility at 'BB-/RR1'. Fitch's rating outlook for both AMR Corp. and American Airlines has been revised to stable from positive. HORIZON LINES: Puts Six Personnel on Administrative Leave --------------------------------------------------------- Horizon Lines, Inc. has placed six employees involved in the Puerto Rico trade lane on administrative leave as a result of management's review of issues raised by the Department of Justice investigation of pricing practices of certain domestic ocean carriers. Two of the six employees have subsequently submitted their resignation to the Company. The company continues to fully cooperate with the Department of Justice in its investigation. Headquartered in Charlotte, North Carolina, Horizon Lines Inc. (NYSE: HRZ) -- http://www.horizon-lines.com/-- is a domestic ocean shipping and integrated logistics company comprised of two primary operating subsidiaries. Horizon Lines LLC operates a fleet of 21 U.S.-flag containerships and 5 port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia, Asia and Puerto Rico. Horizon Logistics LLC offers customized logistics solutions to shippers from a suite of transportation and distribution management services designed by Aero Logistics, information technology developed by Horizon Services Group and intermodal trucking and warehousing services provided by Sea-Logix. * * * As reported in the Troubled Company Reporter-Latin America on May 27, 2008, Standard & Poor's Ratings Services has revised its outlook on Horizon Lines Inc. to negative from stable. S&P affirmed the 'BB-' long-term corporate credit rating. At the same time, S&P affirmed the 'BB+' rating on the senior secured debt while leaving the recovery rating on this debt unchanged at '1', indicating expectations of a substantial (90%-100%) recovery in the event of a payment default. In addition, S&P affirmed the 'B' rating on the senior unsecured notes while leaving the recovery rating unchanged at '6', indicating expectations of a negligible (0%-10%) recovery in the event of a payment default. ================= V E N E Z U E L A ================= ALCATEL-LUCENT SA: Wants to Tie CEO's Pay to Performance Targets ---------------------------------------------------------------- Alcatel-Lucent S.A. has proposed to tie CEO Patricia Russo's EUR6-million golden parachute to performance targets, Reuters relates citing the Times. According to the Times, shareholders will convene tomorrow, May 30, 2008, to vote whether to award Ms. Russo her two years' pay. The resolution was proposed amid rumors that Ms. Russo would be fired from her post. The resolution states that, to avail of the maximum salary, Ms. Russo has to meet at least 90% of the performance target for sales, or 75% of the performance target for operating profit. An Alcatel-Lucent spokeswoman confirmed the EUR6-million figure to Reuters, detailing that the amount corresponds to two full years of salary plus variable income. The spokeswoman added to Reuters that given Ms. Russo's performance in 2007, her salary for the year was EUR1.8 million out of EUR3 million maximum possible amount. 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. * Fitch Says Emerging Market Sovereigns at Risk from Inflation -------------------------------------------------------------- Fitch Ratings, in a special report published on May 27, 2008, warned of the risks to emerging market sovereign creditworthiness from rising inflation and has developed a ranking of Fitch-rated EMs according to their vulnerability to inflation shocks. "Rising inflation rather than slowing economies is the principle challenge facing policymakers in emerging economies. Low and stable inflation has underpinned macroeconomic stability and allowed governments to borrow locally rather than incur foreign currency debt in international capital markets. Failure to contain inflationary pressures risks undermining macroeconomic stability and medium-term growth prospects. In the worst case scenario, investors will lose confidence in local currency assets leading to volatile financial and currency markets," says David Riley, Head of Sovereign Ratings at Fitch. " Fitch has constructed an index of relative EM vulnerability to inflation shocks based on inflation dynamics, the degree of domestic overheating, monetary conditions and the importance of the domestic government debt market to the sovereign. The top ten most vulnerable EMs according to this index are currently: Jamaica (1), Ukraine (2), Kazakhstan (3), Bulgaria (4), Suriname (5), Latvia (6), Lithuania (7), Ghana (8), Vietnam (9) and Sri Lanka (10). Out of 73 Fitch-rated EMs, Jamaica, Ukraine and Kazakhstan appear the most vulnerable. Emerging Europe heavily populates the upper echelons of the vulnerability rankings in light of the significant economic imbalances in the region that have been fuelled by rapid private credit growth. Russia is also the most vulnerable of the BRICs (Brazil, Russia, India and China) by a wide margin. A key conclusion of the report is that, though the current inflation shock has a large international component, the inflation challenges facing EMs are far from a "pure" supply shock. Significant chunks of the EM universe are facing underlying inflationary pressures, including in emerging Europe, parts of Asia, the Gulf Co-operation Council (GCC) countries and other commodity exporters. With fixed or heavily managed exchange rates back in vogue, the reluctance to allow nominal appreciation is ensuring that real exchange rate appreciation warranted by fundamentals occurs through higher inflation. Many youthful EM monetary policy regimes are facing their first real tests. Inflation targets are being exceeded by a wide margin in many countries and core inflation has been rising since August of last year. There is an elevated risk of rising inflation expectations and second-round effects from higher headline inflation. This is much more severe than in the advanced economies, where slower growth will provide a dis- inflationary counter-balance to high food and energy prices and where central bank credibility is deeper. This makes swift policy responses crucial to prevent inflation becoming entrenched. The full report, entitled, "Inflation and Emerging Market Sovereign Risk" is available on the agency's public website http://www.fitchratings.com/ *********** 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 240/629-3300. * * * End of Transmission * * *