/raid1/www/Hosts/bankrupt/TCRLA_Public/080616.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, June 16, 2008, Vol. 9, No. 118
Headlines
A R G E N T I N A
ALITALIA SPA: European Commission Launches Probe vs Funding
ALITALIA SPA: Italy Preparing Reply to Commission Loan Probe
CREACIONES AMERICANAS: Files for Reorganization in Court
MEGAVISION PRODUCCIONES: Claims Verification Is Until Aug. 11
NEGOCIOS TECNOLOGICOS: Claims Verification Deadline Is Sept. 15
PANABAIRES SA: Proofs of Claim Verification Deadline Is Sept. 3
TARJETAS CUYANAS: Fitch Keeps B/RR4 Rating on US$65 Mil. Notes
TARJETA NARANJA: Fitch Affirms Local Currency ID Ratings at B
TELEFONICA DE ARGENTINA: Selling iPhone in 12 LatAm Countries
B E L I Z E
CONTINENTAL AIRLINES: Provides Details of Capacity Reductions
B E R M U D A
INTELSAT LTD: Bags Multi-Transponder Deal for Euro Broadcasting
INTELSAT LTD: Renews Deal With CCTV to Distribute DTH Services
MING WAH: Proofs of Claim Filing Deadline Is June 10
MING WAH: Sets Final Shareholders Meeting for July 16
REFCO INC: Ch. 7 Trustee Wants GE Capital Claims Cut by US$700K
SCOTTISH RE: A.M. Best Cuts Issuer Credit Ratings to b- From bb-
TICOR (BERMUDA): Proofs of Claim Filing Deadline Is July 11
TICOR (BERMUDA): Sets Final Shareholders Meeting for July 14
XL CAPITAL: Denies Involvement in Merrill Lynch Lawsuit Ruling
XL CAPITAL: Reinsurance Unit Gets Approval to Operate in Brazil
B R A Z I L
BANCO ITAU: Reports Trading of Own shares for Treasury Rules
BANCO MERCANTIL: Low Profitability Cues S&P to Hold B Rating
BANCO NACIONAL: Inks BRL15 Million Deal for Tax Modernization
DELPHI CORP: Trial on US$2.55 Bln Lawsuit to Begin in April 2009
DELPHI CORP: Gets New Bid for Power Biz; 54 Pacts Part of Sale
DELPHI CORP: Amends US$4.1BB Facility to Raise Available Amount
GENERAL MOTORS: Appointments Build GM Brand Channel Alignment
ENERGIAS DO BRASIL: Forms Joint Venture With EDP Renovaveis
MRS LOGISTICA: Deploys Tellabs to Upgrade and Manage Systems
TAM SA: Signs MoU for Codeshare Agreement With Air Canada
C A Y M A N I S L A N D S
BALBOA FUND: Proofs of Claim Filing Deadline Is Until June 23
GREENFORD LTD: To Hold Final Shareholders Meeting on June 20
POWERASE TECHNOLOGY: Claims Filing Deadline Is Until June 23
SANWA CAPITAL: Deadline for Proofs of Claim Filing Is June 20
SIAM INVESTMENT: Sets Final Shareholders Meeting on June 23
C O S T A R I C A
US AIRWAYS: To Cut Fourth Quarter Domestic Capacity by 8%
D O M I N I C A N R E P U B L I C
AES CORP: To Review Standards on Worker & Contractor Protection
J A M A I C A
CASH PLUS: Court Moves Receivership Case Hearing to July 21
SUGAR COMPANY: Divestment of Factories to Conclude by September
M E X I C O
ASARCO LLC: Grupo Mexico Asks Court to Examine Uncertain Actions
AXTEL SAB: Commences Operations in Nuevo Laredo, Tamaulipas
CARDTRONICS INC: Leverage Reduction Cues S&P's Positive Outlook
EMPRESAS ICA: Bags Contract to Build Mexico Line 12 for MXN15BB
FREESCALE SEMICONDUCTOR: Board OKs Executive Employment Deal
SHARPER IMAGE: Seeks to Extend Plan Filing Date to Sept. 16
SHARPER IMAGE: Proposes to Set Aug. 18 as Claims Bar Date
P A N A M A
BANCO INTERNACIONAL: Moody's Puts Ba1 Rating on Foreign Deposits
P U E R T O R I C O
LIN TV: Signs Retransmission Pact With Comcast Corporation
V E N E Z U E L A
COCA-COLA FEMSA: Protest Cripples Venezuela Operations
* BOND PRICING: For the Week June 9 - June 13, 2008
- - - - -
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A R G E N T I N A
=================
ALITALIA SPA: European Commission Launches Probe vs Funding
-----------------------------------------------------------
The European Commission commenced June 11, 2008, an in-depth
probe into the Italian government's EUR300-million emergency
financing to Alitalia S.p.A., various reports say.
During the probe, which may last up to 18 months, the Italian
government must prove that the loan was offered to Alitalia on
commercial terms and does not constitute illegal state aid,
Peppi Kiviniemi writes for the Wall Street Journal.
Commission spokesman Mark English noted to Agenzia Giornalistica
Italia that the probe is not "an infraction procedure, but a
normal investigation into a potential state assistance."
Mr. English, AGI relates, said the probe may found out:
* the loan does not constitute state aid;
* the financing constitutes state aid but complies with
European Union regulations; or
* the funding constitutes illegal state aid.
Under EU's "one time, last time" principle, a company
beneficiary of a state aid cannot receive additional rescue or
restructuring funding within 10 years since its accepted
financial assistance. Alitalia cannot receive further aid until
2011, since it took fiscal assistance in 2001.
If the Commission rules the funding violates state aid rule, it
may ask Italy to recover the amount from Alitalia. The
Commission said Alitalia's weak coffers have raised doubts on
the legality of the loan.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes, including United States, Canada,
Japan and Argentina. The Italian government owns 49.9% of
Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.
ALITALIA SPA: Italy Preparing Reply to Commission Loan Probe
------------------------------------------------------------
The Italian government is preparing replies to queries raised by
the European Commission over its EUR300-million funding provided
to Alitalia S.p.A., Thomson Financial News reports, citing
Infrastructure Minister Altero Matteoli.
According to Mr. Matteoli, Thomson Financial News relates, the
Commission gave one month to provide reasons for the decree
granting the loan.
Italy, in its technical report, said the cash grant will
temporarily help Alitalia avoid liquidation or administration.
Italy converted the loan into Alitalia's capital, a move that
may allow auditors to approve its 2007 results.
Italy detailed the loan as:
* EUR205 million from the fund for competitiveness and
development;
* EUR85 million from the fund for enterprise financing;
and
* EUR10 million from the special fund of the ministry of
economy and finances.
Meanwhile, Alitalia chairman Aristide Police defended the
funding, saying it is compatible with the European Union rules
on state aid.
EU Transport Commissioner Antonio Tajani said Alitalia can
continue to use the funds.
About Alitalia
Headquartered in Rome, Italy, Alitalia S.p.A. --
http://www.alitalia.it/-- provides air travel services for
passengers and air transport of cargo on national, international
and inter-continental routes, including United States, Canada,
Japan and Argentina. The Italian government owns 49.9% of
Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.
CREACIONES AMERICANAS: Files for Reorganization in Court
--------------------------------------------------------
Creaciones Americanas SRL has requested for reorganization
approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Creaciones Americanas 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 No. 8 in Buenos Aires. Clerk No. 16 assists the court
in this case.
The debtor can be reached at:
Creaciones Americanas SRL
Paraguay 523
Buenos Aires, Argentina
MEGAVISION PRODUCCIONES: Claims Verification Is Until Aug. 11
-------------------------------------------------------------
Edith Regazzoni, the court-appointed trustee for Megavision
Producciones SA's bankruptcy proceeding, will be verifying
creditors' proofs of claim until Aug. 11, 2008.
Ms. Regazzoni will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of Clerk
No. 38, 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 Megavision Producciones
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 Megavision
Producciones' accounting and banking records will be submitted
in court.
La Nacion didn't state the submission dates for the reports.
Ms. Regazzoni is also in charge of administering Megavision
Producciones' assets under court supervision and will take part
in their disposal to the extent established by law.
The debtor can be reached at:
Megavision Producciones SA
Santa Fe 951
Buenos Aires, Argentina
The trustee can be reached at:
Edith Regazzoni
Carlos Pellegrini 465
Buenos Aires, Argentina
NEGOCIOS TECNOLOGICOS: Claims Verification Deadline Is Sept. 15
---------------------------------------------------------------
Antonio Canada, the court-appointed trustee for Negocios
Tecnologicos SRL's bankruptcy proceeding, will be verifying
creditors' proofs of claim until Sept. 15, 2008.
Mr. Canada will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 12 in Buenos Aires, with the assistance of Clerk
No. 23, 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 Negocios Tecnologicos 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 Negocios
Tecnologicos' accounting and banking records will be submitted
in court.
La Nacion didn't state the submission dates for the reports.
Mr. Canada is also in charge of administering Negocios
Tecnologicos' assets under court supervision and will take part
in their disposal to the extent established by law.
The debtor can be reached at:
Negocios Tecnologicos SRL
Manuel Ricardo Trelles 2749
Buenos Aires, Argentina
The trustee can be reached at:
Antonio Canada
Dr. Luis Belaustegui 4531
Buenos Aires, Argentina
PANABAIRES SA: Proofs of Claim Verification Deadline Is Sept. 3
---------------------------------------------------------------
Laura Garcia, the court-appointed trustee for Panabaires SA's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until Sept. 3, 2008.
Ms. Garcia will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 8 in Buenos Aires, with the assistance of Clerk
No. 16, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections
and challenges that will be raised by Panabaires 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 Panabaires'
accounting and banking records will be submitted in court.
La Nacion didn't state the submission dates for the reports.
Ms. Garcia is also in charge of administering Panabaires'
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Panabaires SA
Paraguay 754
Buenos Aires, Argentina
The trustee can be reached at:
Laura Garcia
Simbron 3537
Buenos Aires, Argentina
TARJETAS CUYANAS: Fitch Keeps B/RR4 Rating on US$65 Mil. Notes
---------------------------------------------------------------
Fitch Ratings has affirmed Tarjetas Cuyanas S.A.'s long-term
local currency Issuer Default Rating at 'B', with a Stable
Outlook.
Fitch also affirmed:
-- Long-term local currency rating of US$65 million Series
XVIII unsubordinated fixed-rate notes at 'B/RR4'.
-- National scale long-term rating at 'A(arg)'; Stable
Outlook.
Tarjetas Cuyanas' ratings reflect its sound profitability,
liquidity, and asset quality, as well as its satisfactory
capital base. They also take into account the still relatively
volatile operating environment and the small size of the
company. The ratings of the company's notes reflect the
International ratings. While the notes are denominated in U.S.
dollars, the issue carries a local currency IDR as the issue is
effectively converted to a peso amount at issue date, and the
dollar amount to be paid at each of the amortization dates is
determined by the peso/dollar exchange rate then in effect,
transferring the potential exchange risk to the holder of the
notes.
In addition, should the issuer not be able to obtain the dollars
needed due to external reasons at any payment date, it is
allowed to pay the correspondent amount in pesos converted at
the above mentioned exchange rate.
Tarjetas Cuyanas' profitability remains sound and is based on
strong revenue generation, adequate cost efficiency and healthy
asset quality. Fitch expects the company's profitability to
remain robust as long as the environment stays favorable.
The company's lending has grown significantly in recent years.
In 2007, total loans net of loan loss reserves grew 70.5%. Its
asset quality ratios have historically been very good based on
conservative credit limits and good scoring systems. At end-
2007, its non-performing loans ratio was a low 5% with loan loss
reserve coverage of over 100%. Fitch expects the company's
asset quality ratios to remain healthy, although there could be
some deterioration due to loan securitization, the seasoning of
the portfolio, and because NPLs are at a historical low.
Tarjetas Cuyanas has no exposure to the public sector.
Tarjetas Cuyanas' liquidity is strong, supported by the short-
term nature of its lending. Its liquid assets represented 37.1%
of short-term liabilities at end-2007. In addition, it has had
access to funds from the capital markets through bonds issuance
and loans securitizations, which have also helped to extend the
maturity of its funding. The company has no exposure to foreign
currency risk as all of its debt is in Argentine pesos. Its
capital base is ample with an equity/asset ratio of 18.5% at
end-2007. Leverage is at a comfortable level of 4.4 times,
which Fitch expects the company can maintain during 2008.
Tarjetas Cuyanas SA was created in 1996 in the region of Cuyo
and has expanded geographically afterwards to the provinces of
the Northwest and South of Argentina. The company is 60%
indirectly owned by Banco de Galicia y Buenos Aires, the second
largest private bank in Argentina by assets.
TARJETA NARANJA: Fitch Affirms Local Currency ID Ratings at B
-------------------------------------------------------------
Fitch Ratings has affirmed Argentina's Tarjeta Naranja S.A. as:
-- International long-term local currency issuer default
rating at 'B';
-- International short-term local currency issuer default
rating at 'B'.
The rating outlook is stable.
At the same time, Fitch has affirmed the long-term local
currency and Recovery Rating on Tarjeta Naranja's unsubordinated
fixed-rate notes totaling US$226 million at 'B/RR4' and the
National long-term rating at 'AA-(arg)'.
Tarjeta Naranja's National long-term Rating of 'AA-(arg)' was
affirmed on May 22. 2008.
The company's ratings reflect its sound historical
profitability, liquidity and asset quality, and satisfactory
capital base. They also take into account the fact that the
operating environment in Argentina has significantly improved,
allowing strong growth by the company, but that it remains
potentially volatile. Its sound profitability is based on
strong revenue generation and growth, its adequate cost
efficiency, and healthy asset quality. Fitch expects the
company's profitability to remain robust as long as the
environment remains favorable.
Tarjeta Naranja's lending has grown significantly in recent
years. Total loans, net of loan loss reserves and ARP393 million
of securitized loans, grew by 39.4% at end-March 2008 year over
year. The company's asset quality ratios have historically been
very good, based on conservative credit limits and good scoring
systems. At the end of first-quarter 2008, its non-performing
loans accounted for a low 4.2% of total loans and were fully
reserved. Fitch expects the company's asset quality ratios to
remain healthy, although there could be some deterioration due
to the seasoning of the portfolio and loan securitizations. In
addition, the company has no exposure to the public sector.
The company's liquidity is strong, supported by the short-term
nature of its lending. In addition, it is extending the
maturity of its funding by issuing debt and securitizing loans.
Exposure to foreign currency risk is low as most of its debt is
in Argentine pesos. Its capital base is ample, with an
equity/assets ratio of 21% at end-March 2008. Despite the
significant growth of its assets, the company's strong internal
capital generation has allowed it to maintain satisfactory
capital.
Tarjeta Naranja SA was established in 1985 in the Province of
Cordoba in Argentina. At end of first quarter 2008, the company
had about 3.8 million credit cards, with a 50% national market
share. The company is 80% owned by Banco de Galicia y Buenos
Aires, the third largest private sector bank in Argentina by
deposits.
TELEFONICA DE ARGENTINA: Selling iPhone in 12 LatAm Countries
-------------------------------------------------------------
Telefonica de Argentina SA will distribute the Apple iPhone
in 12 Latin American countries and the Czech Republic. This
builds on earlier exclusive, multi-year agreements signed
between the two companies in the UK and Ireland, and follows a
similar deal for Spain unveiled last week - bringing the total
number of territories in which Telefonica will sell the iconic
device to 16.
The new Latin American agreement covers Argentina, Brazil,
Colombia, Chile, Ecuador, El Salvador, Guatemala, Nicaragua,
Panama, Peru, Uruguay and Venezuela.
Cesar Alierta, chairman and CEO of Telefonica S.A., said: "The
iPhone has changed the way people communicate and access content
on the move. It has already proved hugely popular in the UK and
Ireland and we're delighted that we can now offer the same
benefits to our customers in Spain, Latin America and the Czech
Republic. The 16 countries in which we are the carrier of
iPhone have a combined addressable market of more than 500
million people ? making Telefonica one of the leading global
distributors of this revolutionary device."
More than 23 million Telef¢nica mobile customers in Spain, as
well as customers of other Spanish mobile operators who switch
to movistar, along with 95 million subscribers in Latin America
and the Czech Republic, will be able to benefit from the
unparalleled user experience of one of the world's most
technologically-advanced terminals.
Telefonica already has a successful track record of marketing
the iPhone in Europe, following the terminal's introduction in
the UK (November 2007) and later in Ireland (March 2008). Since
the iPhone was launched by O2 in the UK, sales have exceeded all
expectations and have greatly fuelled net customer additions,
particularly high-end contract customers. Furthermore, the
average monthly revenue of an iPhone customer is 30% higher than
that of a regular contract customer, while the iPhone has
generated the highest level of customer satisfaction of any
terminal on the market.
Headquartered in Buenos Aires, Argentina, Telefonica de
Argentina SA -- http://www.telefonica.com.ar/-- provides
telecommunication services, which include telephony business
both in Spain and Latin America, mobile communications
businesses, directories and guides businesses, Internet, data
and corporate services, audiovisual production and broadcasting,
broadband and Business-to-Business e-commerce activities.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Fitch Ratings upgraded its local currency issuer
default rating on Telefonica de Argentina to 'BB' from 'BB-'.
The ratings agency also affirmed its 'B+' foreign currency
issuer default rating on the telecom firm.
Telefonica de Argentina's foreign currency rating is rated B2 by
Moody's Latin America with a positive outlook.
===========
B E L I Z E
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CONTINENTAL AIRLINES: Provides Details of Capacity Reductions
-------------------------------------------------------------
Continental Airlines Inc. released to its more than 45,000
employees bulletin no. 10, detailing reductions in flying
capacity that were announced last week. These actions are among
the many difficult steps Continental Airlines is taking to
respond to record-high fuel prices that are creating
unprecedented challenges for the airline industry, according to
the company.
Starting in September, at the conclusion of the peak summer
season, the company will reduce capacity from its hubs,
resulting in an 11% decline of domestic mainline capacity
(available seat miles, or ASMs) in the fourth quarter, compared
to the same period last year. The changes will result in a 6.4%
decline in consolidated (mainline plus regional) capacity in the
fourth quarter, compared to the same period last year.
The table shows the estimated capacity reductions by hub,
including certain capacity changes effective prior to Sept. 3:
4th Quarter Total and Year-Over-Year ASM Comparison by Hub
(millions)
4Q - 08 ASM
Hub Est. ASMs Decrease % Decrease
--- --------- -------- ----------
Houston 11,208 (960) (7.9%)
Newark Liberty 13,251 (433) (3.2%)
Cleveland 1,462 (220) (13.1%)
Guam 799 (219) (21.5%)
Total 26,720 (1,832) (6.4%)
As of Sept. 3, 2008, the company will be reducing frequencies in
certain markets and will also discontinue service between its
hubs and this cities or airports:
* Houston George Bush Intercontinental: Cali, Colombia,
Chatanooga, Tennessee, Guayaquil, Ecuador, Hartford,
Connecticut, Monclova, Mexico, Montgomery, Alabama,
Oakland, California, Palm Springs, California, Reno,
Nevada, Sarasota, Florida, Tallahassee, Florida, and
Washington - Dulles.
* Newark Liberty: Albuquerque, New Mexico, Cologne, Germany,
Santiago, Dominican Republic, Sarasota, Florida, Salt Lake
City, Utah, San Jose, California, and Tucson, Arizona.
* Cleveland Hopkins: Austin, Texas, Birmingham, Alabama,
Charleston, South Carolina, Charleston, West Virginia,
Cincinnati, Ohio, Des Moines, Iowa, Detroit, Michigan,
Green Bay, Wisconsin, Greensboro, North Carolina,
Lexington, Kentucky, Little Rock, Arkansas, Memphis,
Tennessee, Nashville, Tennessee, Norfolk, Virginia;
Oklahoma City, Oklahoma, Omaha, Nebraska, Ottawa, Canada,
San Antonio, Texas, San Diego, California, Sarasota,
Florida, Savannah, Georgia, Toledo, Ohio, Tulsa, Oklahoma,
Washington - Dulles.
* Guam A.B. Won Pat: Denpasar, Bali, Indonesia.
As a result of the discontinued service, this stations will
close:
Denpasar, Bali, Indonesia Oakland, California
Cali, Colombia Palm Springs, California
Chattanooga, Tennessee Reno, Nevada
Cologne, Germany Santiago, Dominican Republic
Green Bay, Wisconsin Sarasota, Florida
Guayaquil, Ecuador Tallahassee, Florida
Monclova, Mexico Toledo, Ohio
Montgomery, Alabama
As disclosed in the Troubled Company Reporter on June 6, 2008,
the company will eliminate 3,000 positions across all work
groups, including management positions, through voluntary and
involuntary separations, with the majority of them expected to
be through voluntary programs. The specific number of
involuntary furloughs will not be determined until August, after
the company knows how many co-workers elect to take advantage of
voluntary programs.
The company will work with furloughed/terminated co-workers to
provide information on benefits and other employment
opportunities available to them. In the case where suppliers
and vendors are affected by capacity reductions, the company
will work with them to determine if there are other job
opportunities for their affected employees.
Customers who are currently booked on flights previously
scheduled to operate on or after September 3 that are affected
by the capacity reductions, will be contacted by Continental
Airlines to make alternate arrangements.
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more
than 2,900 daily departures throughout the Americas, including
Belize and Mexico, Europe and Asia, serving 144 domestic and 139
international destinations. More than 500 additional points are
served via SkyTeam alliance airlines. With more than 45,000
employees, Continental has hubs serving New York, Houston,
Cleveland and Guam, and together with Continental Express,
carries approximately 69 million passengers per year.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 22, 2008, that Moody's Investors Service affirmed the B2
Corporate Family Rating of Continental Airlines, Inc. as well as
the ratings of its outstanding corporate debt instruments and
selected classes of Continental's Enhanced Equipment Trust
Certificates. The Speculative Grade Liquidity rating was
lowered to SGL-3 from SGL-2. The outlook has been changed to
negative from stable.
As reported by the Troubled Company Reporter-Latin America on
April 23, 2008, Standard & Poor's Ratings Services revised its
rating outlook on Continental Airlines Inc. (B/Negative/B-3) to
negative from stable. S&P also placed its ratings on selected
enhanced equipment trust certificates that are secured by
regional jets on CreditWatch with negative implications.
In December 2007, Fitch Ratings affirmed Continental Airlines
'B-' issuer default rating with a stable outlook.
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B E R M U D A
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INTELSAT LTD: Bags Multi-Transponder Deal for Euro Broadcasting
---------------------------------------------------------------
Intelsat, Ltd., disclosed that the European Broadcasting Union
(EBU) has signed a multi-transponder deal for the video carriage
of the 2008 Summer Games to Europe.
The EBU will use C-/Ku-band cross-strap capacity on the Intelsat
706 satellite, located at 50.2 degrees East, to distribute the
all high-definition event to its members. The EBU, of which a
large proportion of the major European broadcasters are members,
provides a full range of network services, including but not
limited to HD transmissions to broadband video carriage.
"By using Intelsat to deliver the Summer Games, we are confident
that our members will benefit from the reliable service Intelsat
offers when it comes to large scale events," said Stefan Kurten,
Director of the Eurovision Operations Department.
"We are the only satellite operator able to offer cross-strapped
C-band uplink and Ku-band downlink capacity from Beijing,
enabling direct Ku-band reception into Europe for the EBU," said
Jean-Philippe Gillet, Intelsat's Regional Vice President, Europe
& Middle East. "The 2008 Summer Games provides another
milestone in Intelsat's unsurpassed track record in successfully
supporting live, global HD transmissions."
Intelsat's Industry-leading Services
Intelsat will be on site in Beijing providing managed services
to both the rights holding and non-rights holding broadcasters.
Services will include:
* Managed platforms for encoding and multiplexing,
* Transmission services via the Intelsat global network to
virtually any destination in the world,
* Managed fiber services,
* Turn-around services on the Intelsat network to include
standards conversion, re-mux and data/IP,
* Live shot position, with backdrop of the Olympic Stadium
and Olympic Green,
* Multi-format tape play-out services and
* Feed point connected to a fixed uplink in Beijing.
About Intelsat Ltd.
Headquartered in Pembroke, Bermuda, Intelsat, Ltd. --
http://www.intelsat.com/-- is the largest fixed satellite
service operator in the world and is owned by Apollo Management,
Apax Partners, Madison Dearborn, and Permira. The company has a
sales office in Brazil.
Intelsat Ltd.'s balance sheet showed total assets of
US$12.05 billion, total debts of US$12.77 billion and
stockholders' deficit of US$722.3 million as of March 31, 2008.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2008, Standard & Poor's Ratings Services lowered its
corporate credit rating on Bermuda-based Intelsat Ltd. to 'B'
from 'B+' and removed the ratings from CreditWatch. S&P said
the outlook is stable.
INTELSAT LTD: Renews Deal With CCTV to Distribute DTH Services
--------------------------------------------------------------
Intelsat Ltd.'s Galaxy 3C satellite has renewed a multi-year
contract with China Central Television (CCTV), the national
broadcaster of the People's Republic of China, for Ku-band
capacity to distribute its regional direct-to-home (DTH)
services in the United States.
China Central Television became the world's first global
Mandarin Chinese television provider when it expanded its
services internationally via the Intelsat 3R satellite located
at 43 degrees West in 1995. Since then, this long-standing
relationship spanning nearly 14 years has delivered CCTV's
programming to every region of the world. Intelsat continues to
provide CCTV with full time program distribution services via
the Intelsat 1R satellite located at 45 degrees West, the
Intelsat 9 satellite located at 58 degrees West and the Intelsat
10 satellite, located at 68.5 degrees East.
"We have witnessed an increased demand for Chinese content among
U.S. viewership," said Zongjiu He, Vice President of CCTV.
"Intelsat's industry-leading Galaxy 3C satellite is the ideal
platform for CCTV, enabling us to seamlessly reach that targeted
DTH customer base."
David Ball, Intelsat's Regional Vice President Asia-Pacific,
said, "Whether it's international distribution of regional
programming, special events such as the Asian Games or the
upcoming 2008 Summer Games, Intelsat's industry-leading
satellite network and teleport facilities are strategically
situated to provide greater power and coverage for China's
preeminent national broadcaster and all Asian programmers
seeking to disseminate content around the world."
About Intelsat Ltd.
Headquartered in Pembroke, Bermuda, Intelsat, Ltd. --
http://www.intelsat.com/-- is the largest fixed satellite
service operator in the world and is owned by Apollo Management,
Apax Partners, Madison Dearborn, and Permira. The company has a
sales office in Brazil.
Intelsat Ltd.'s balance sheet showed total assets of US$12.05
billion, total debts of US$12.77 billion and stockholders'
deficit of US$722.3 million as of March 31, 2008.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2008, Standard & Poor's Ratings Services lowered its
corporate credit rating on Bermuda-based Intelsat Ltd. to 'B'
from 'B+' and removed the ratings from CreditWatch. S&P said
the outlook is stable.
MING WAH: Proofs of Claim Filing Deadline Is June 10
----------------------------------------------------
Ming Wah Universal (Bermuda) Co. 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.
Ming Wah's shareholders agreed on June 10, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
MING WAH: Sets Final Shareholders Meeting for July 16
-----------------------------------------------------
Ming Wah Universal (Bermuda) Co. Ltd. will hold its final
general meeting on July 16, 2008, at 9:00 a.m. at Canon's Court,
22 Victoria Street, Hamilton, 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.
Ming Wah's shareholders agreed on June 10, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
REFCO INC: Ch. 7 Trustee Wants GE Capital Claims Cut by US$700K
---------------------------------------------------------------
Pursuant to Section 502 of the Bankruptcy Code and Rule 3007 of
the Federal Rules of Bankruptcy Procedure, Albert Togut, the
Chapter 7 Trustee for Refco, LLC, asks the U.S. Bankruptcy Court
for the Southern District of New York to reduce and allow, in a
reduced amount, the claims of GE Capital in connection with
certain leased equipment.
On July 31, 2006, GE filed 17 proofs of claim, Claim Nos. 431
through 447, asserting an aggregate of US$767,413, comprising:
* arrears of US$57,089;
* late charges of US$2,736;
* sales tax of US$6,921;
* discounted stream of payments of US$604,342; and
* asserted residual value of equipment of US$96,325.
The Chapter 7 Trustee tells the Court that GE Capital included a
"residual" value claim for the return of the leased equipment,
despite the fact that the Equipment was returned, as well as a
sales tax charge for periods after the Refco LLC rejected the
leases and returned the Equipment. Moreover, GE Capital did not
deduct postpetition payments, and has not satisfied its burden
of mitigating its damages following the return of the Equipment.
The Chapter 7 Trustee states that the GE Claims should be
reduced, since GE Capital improperly included additional
charges, and did not reduce its claim to reflect a US$15,868
postpetition payment. The Chapter 7 Trustee submits that the GE
Claims should be allowed for US$41,221. The proposed amount
reflects the asserted arrears of US$57,089 less US$15,868 of
postpetition payments.
Headquartered in New York, Refco Inc. -- http://www.refco.com/
-- is a diversified financial services organization with
operations in 14 countries and an extensive global institutional
and retail client base. Refco's worldwide subsidiaries are
members of principal U.S. and international exchanges, and are
among the most active members of futures exchanges in Chicago,
New York, London and Singapore. In addition to its futures
brokerage activities, Refco is a major broker of cash market
products, including foreign exchange, foreign exchange options,
government securities, domestic and international equities,
emerging market debt, and OTC financial and commodity products.
Refco is one of the largest global clearing firms for
derivatives. The company has operations in Bermuda.
The company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its Direct and Indirect Subsidiaries,
including Refco Capital Markets, Ltd., and Refco F/X Associates,
LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26,
2006. (Refco Bankruptcy News; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)
SCOTTISH RE: A.M. Best Cuts Issuer Credit Ratings to b- From bb-
----------------------------------------------------------------
A.M. Best Co. has downgraded the financial strength rating to C+
(Marginal) from B- (Fair) and issuer credit ratings to "b-" from
"bb-" of the primary operating insurance subsidiaries of
Scottish Re Group Limited. Concurrently, A.M. Best has
downgraded the issuer credit ratings to "cc" from "ccc+" and the
various debt ratings of Scottish Re. The ratings remain under
review with negative implications.
Scottish Re Limited's (London, England) ratings are unchanged;
however, the ratings remain under review and the implications
have been revised to developing from negative.
Subsequent to the April 11, 2008 rating downgrades, A.M. Best is
still concerned with a continued lack of clarity with respect to
Scottish Re's financial strength position, underpinned by its
ongoing inability to publicly disclose reliable market values of
certain assets within various special purpose vehicles.
Moreover, Scottish Re's third quarter 2007 10Q has been deemed
unreliable as noted in its May 2008 8-K, and has postponed the
filing of its 2007 Form 10-K, which A.M. Best believes primarily
is due to Scottish Re's inability to complete the evaluation of
mark-to-market valuations and other than temporary impairments
in the carrying value of its available for sale securities. The
continued volatility associated with the mortgage-backed
securities market is expected to result in additional
delinquencies and losses, increasing uncertainty surrounding the
ultimate impact of investment write-downs on Scottish Re, its
subsidiaries and special purpose vehicles such as Ballantyne Re
plc, which could result in an additional negative impact on
Scottish Re's consolidated balance sheet, triggering possible
default on its debt and/or possible insurance department
regulatory intervention.
The downgrades also reflect the continued uncertainty as to the
effectiveness of the remediation actions put in place to
mitigate the company's disclosed material weakness in its
internal control over financial reporting as of Sept. 30, 2007.
A.M. Best favorably views the recent announcement that Pacific
LifeCorp, the parent company of Pacific Life Insurance Company,
will purchase Scottish Re Limited. Scottish Re had previously
announced plans to pursue the disposition of non-core business
lines such as its international operations. While a definitive
price for the acquisition will be determined based upon various
valuation concerns and contractual obligations, the added
liquidity to Scottish Re may offer it some additional, albeit
limited, financial flexibility.
A.M. Best notes that Scottish Re remains heavily dependent upon
off-shore securitizations to provide collateral support for its
Regulation XXX reserves. Scottish Re previously announced a
binding letter of intent with ING America Insurance Holdings
Inc. and its affiliates, in which a pro-rata portion of business
ceded to Ballantyne would be recaptured. The transaction would
allow Scottish Re (U.S.) Inc. to continue to receive full NAIC
reserve credit for insurance business ceded to Ballantyne.
Erosion in the value of the large position in subprime and Alt-A
loans held by Ballantyne would further deplete the capital held
within this structure. As further deficiency develops, Scottish
Re's operating subsidiaries may be required to pledge additional
assets to secure reserve credit outside of the securitization
structure. A.M. Best believes Scottish Re would face
significant challenges in raising additional capital or securing
letters of credit at this time.
The ratings will remain under review while A.M. Best gets
further clarity on the performance of the company's subprime and
Alt-A mortgage-backed portfolios and assesses the impact of the
ING transaction and the revised strategy on Scottish Re's
balance sheet. In addition, A.M. Best will monitor the
disposition of Scottish Re Limited and its overall impact to the
financial strength of Scottish Re.
The FSR has been downgraded to C+ (Marginal) from B- (Fair) and
issuer credit ratings to "b-" from "bb-" for these primary
operating subsidiaries of Scottish Re Group Limited:
-- Scottish Annuity & Life Insurance Company (Cayman) Ltd.
-- Scottish Re (U.S.), Inc.
-- Scottish Re Life Corporation
-- Orkney Re, Inc.
The issuer credit rating has been downgraded to "cc" from "ccc+"
for Scottish Re Group Limited.
These debt ratings have been downgraded:
Scottish Re Group Limited:
-- to "d" from "ccc-" on US$125 million non-cumulative
preferred shares
Stingray Pass-Though Trust:
-- to "b-" from "bb-" on US$325 million 5.902% senior secured
pass-through certificates, due 2012
These indicative ratings have been downgraded:
Scottish Re Group Limited:
-- to "cc" from "ccc+" on senior unsecured debt
-- to "cc" from "ccc" on subordinated debt
-- to "c" from "ccc-" on preferred stock
Scottish Holdings Statutory Trust II and III:
-- to "c" from "ccc" on preferred securities
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish
Re Capital Markets, Inc., a member of Scottish Re Group Ltd.,
is a registered broker dealer that specializes in securitization
of life insurance assets and liabilities. On Sept. 30, 2007,
Scottish Re reported total assets of US$13.4 billion and
shareholder's equity of US$869 million.
TICOR (BERMUDA): Proofs of Claim Filing Deadline Is July 11
-----------------------------------------------------------
Ticor (Bermuda) Holdings Ltd.'s creditors are given until
July 11, 2008, to prove their claims to Lynda Milligan-Whyte,
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.
Ticor (Bermuda)'s shareholders agreed on June 10, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Lynda Milligan-Whyte
Lynda Milligan-Whyte & Associates
Emporium Building, Third Floor
69 Front Street, Hamilton HM 12
Bermuda
TICOR (BERMUDA): Sets Final Shareholders Meeting for July 14
------------------------------------------------------------
Ticor (Bermuda) Holdings Ltd. will hold its final general
meeting on July 14, 2008, at 4:00 p.m. at Lynda Milligan-Whyte &
Associates, Emporium Building, Third Floor, 69 Front Street,
Hamilton HM 12, 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.
Ticor (Bermuda)'s shareholders agreed on June 10, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Lynda Milligan-Whyte
Lynda Milligan-Whyte & Associates
Emporium Building, Third Floor
69 Front Street, Hamilton HM 12
Bermuda
XL CAPITAL: Denies Involvement in Merrill Lynch Lawsuit Ruling
--------------------------------------------------------------
XL Capital Ltd. said it is not involved in a summary judgment
handed down by the United States District Court for the Southern
District of New York in favor of Merrill Lynch International.
Merrill Lynch International filed a complaint against Security
Capital Assurance Ltd.'s subsidiary, XL Capital Assurance Inc.,
relating to certain credit default swap transactions entered
into by trusts and insured by XL Capital Assurance following
Security Capital's IPO in August 2006. XL Capital Assurance
Inc. is not a subsidiary of XL Capital Ltd.
The swaps at issue in the lawsuit were entered into by XL
Capital Assurance after Security Capital's IPO. XL Insurance
(Bermuda) Ltd's reinsurance guarantee to a subsidiary of
Security Capital Assurance Ltd. applies only to pre-IPO
exposures.
Pursuant to a transition agreement entered into at the time of
Security Capital's IPO, the company is permitted to use the "XL"
name until August 2008. XL Capital Ltd. owns approximately 46%
of the common equity interest of Security Capital. As the above
dispute is between Merrill Lynch International and XL Capital
Assurance Inc., any queries regarding the lawsuit should be
referred directly to the parties involved in the lawsuit.
Further information regarding XL Capital's relationship with
Security Capital Assurance Ltd. may be found in the company's
filings with the Securities and Exchange Commission.
Headquartered in Bermuda, XL Capital Ltd. --
http://www.xlcapital.com/-- writes liability insurance and
reinsurance worldwide, specializing in low-frequency, high-
severity risks from riots to natural disasters. The company
writes policies through numerous subsidiaries, many of them
offshore, and also manages a Lloyd's of London syndicate. XL's
coverage includes general and executive liability, property, and
political risk insurance. Its reinsurance covers property,
aviation, energy, nuclear accident, and professional indemnity.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 3, 2008, Fitch Ratings downgraded XL Capital Ltd.'s Class
A1 to 'BB' from 'A' and Class A2 to 'BB' from 'A' and removed it
from Rating Watch Negative. Fitch also downgraded XLCA's
Insurer Financial strength rating to 'BB' and removed the IFS
from Rating Watch Negative.
XL CAPITAL: Reinsurance Unit Gets Approval to Operate in Brazil
---------------------------------------------------------------
XL Re, the global reinsurance operations of XL Capital Ltd., has
received regulatory approval to serve the Brazilian reinsurance
market as an admitted reinsurer.
The newly admitted reinsurer, XL Re Latin America, will operate
full offices in both Rio de Janeiro and Sao Paulo, according to
Regional Operating Officer Carlos Caputo, who will manage the
reinsurance operations.
James H. Veghte, Chief Executive of XL Re, said: "We are
extremely gratified that our application has been approved by
Brazil's regulators. We look forward to serving the Brazilian
market by offering primary insurers an array of options for
services and business specialties that have not existed under
the prior monopolistic reinsurance structure. We have had a
representative office in Brazil for many years led by an
outstanding management team. I believe we are ideally
positioned to be a market leader in Brazil's newly opened and
competitive reinsurance environment."
Mr. Veghte added that XL Re is also eagerly awaiting regulatory
approval to operate a local reinsurer. XL Re seeks to operate
both local and admitted reinsurance entities to serve the full
Brazilian market. Local reinsurers have rights of first refusal
up to 60% of coverage sought by primary insurers until 2010, and
rights of first refusal for up to 40% of business thereafter.
About XL Re
XL Re -- http://www.xlre.com/ -- is the global brand used by XL
Capital Ltd's reinsurance operations. The XL Re companies have
more than 350 employees in 11 countries. Through its operating
subsidiaries, XL Capital is a leading provider of global
insurance and reinsurance coverages to industrial, commercial
and professional service firms, insurance companies, and other
enterprises on a worldwide basis.
About XL Capital
Headquartered in Bermuda, XL Capital Ltd. --
http://www.xlcapital.com/-- writes liability insurance and
reinsurance worldwide, specializing in low-frequency, high-
severity risks from riots to natural disasters. The company
writes policies through numerous subsidiaries, many of them
offshore, and also manages a Lloyd's of London syndicate. XL's
coverage includes general and executive liability, property, and
political risk insurance. Its reinsurance covers property,
aviation, energy, nuclear accident, and professional indemnity.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 3, 2008, Fitch Ratings downgraded XL Capital Ltd.'s Class
A1 to 'BB' from 'A' and Class A2 to 'BB' from 'A' and removed it
from Rating Watch Negative. Fitch also downgraded XLCA's
Insurer Financial strength rating to 'BB' and removed the IFS
from Rating Watch Negative.
===========
B R A Z I L
===========
BANCO ITAU: Reports Trading of Own shares for Treasury Rules
------------------------------------------------------------
Banco Itau Holding Financeira S.A., in keeping with the best
Corporate Governance practice, has voluntarily disclosed its
"Operating Rules for the Trading of Own shares for Treasury".
The "Rules" established the obligation to make monthly
disclosure of the volumes of own shares traded on stock
exchanges by Itau Holding, and minimum, average and maximum
prices.
Itau Holding inform the capital market entities that during the
month of May 2008, the bank did not trade any of its own shares
for treasury.
Banco Itau Holding Financeira SA -- http://www.itau.com.br/--
is a private bank in Brazil. The company has four principal
operations: banking -- including retail banking through its
wholly owned subsidiary, Banco Itau SA(Itau), corporate banking
through its wholly owned subsidiary, Banco Itau BBA SA (Itau
BBA) and consumer credit to non-account hold customers through
Itaucred -- credit cards, asset management and insurance,
private retirement plans and capitalization plans, a type of
savings plan. Itau Holding provides a variety of credit and
non-credit products and services directed towards individuals,
small and middle market companies and large corporations. The
bank has offices in Miami, New York, Hongkong, Lisbon,
Luxembourg, Bahamas, the Cayman Islands, Chile and Uruguay.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 12, 2007, Fitch changed the outlook of Banco Itau Holding
Financiera S.A.'s 'BB+' foreign currency IDR rating to positive
from stable.
BANCO MERCANTIL: Low Profitability Cues S&P to Hold B Rating
------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'B'
counterparty credit rating on Banco Mercantil Do Brasil SA. The
outlook is stable.
"The ratings on BMB reflect the bank's low profitability
compared with the industry, reflecting a costly retail structure
that so far has not translated into greater cross-selling or
scale," said S&P's credit analyst Marcelo Peixoto.
The bank also faces a very competitive environment for retail
banks in Brazil.
These risks factors are partially offset by Banco Mercantil's
good liquidity and funding profile, with good access to deposits
in its retail network; a good track record in its regional
market; improvements in its credit approval process; and recent
success in sales of new products such as payroll discount
lending and auto loans.
Headquartered in Belo Horizonte, Brazil, Banco Mercantil do
Brasil SA had BRL5.6 billion (US$2.6 billion) in total assets
and BRL567 million (US$269 million) in shareholders' equity as
of December 2006.
BANCO NACIONAL: Inks BRL15 Million Deal for Tax Modernization
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA
President, Luciano Coutinho, and the governor of Rio de Janeiro,
Sergio Cabral, signed on June 11, a BRL15 million financing
contract to improve tax management in the state. The project
includes investments in information technology, equipment
purchase, development of systems and staff qualification.
The funds, disbursed under the facility Modernizacao da
Administracao das Receitas e da Gestao Fiscal, Financeira e
Patrimonial das Administracoes Estaduais (Modernization of
Revenue, Tax, Financial and Property Management of State
Administrations - PMAE), will be used to expand the state's
economic efficiency, by increasing the capacity to check for tax
payment and reduce tax management costs.
The facility, developed in March 2007, will deliver BNDES
financial support to projects related to tax administration
modernization, reducing costs and red tapes and preventing tax
evasion by improving planning, control and inspection.
Rio de Janeiro's government project includes the development and
the implementation of the Public System of Digital Tax Receipts,
which deploys the information technology into the relationship
between the national treasury and the taxpayer, and the
Synchronized Database, which connects the federal, state and
local tax entities. This will allow that the setup, change and
closing of companies, contributing to reduce the so-called Custo
Brasil (Brazil Cost). Total investments expected amount to
BRL16.7 million.
PMAE' portfolio in BNDES amounts to BRL171.5 million, covering
investment projects of 15 Brazilian states. Out of these, the
Bank's management has approved loans for eight, and seven other
are currently under assessment.
Banco Nacional de Desenvolvimento Economico e Social SA 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.
DELPHI CORP: Trial on US$2.55 Bln Lawsuit to Begin in April 2009
----------------------------------------------------------------
The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York approved on June 10, 2008, the
trial and discovery schedule for Delphi Corporation's
US$2,550,000,000 lawsuit against Appaloosa Management, LP, et
al.
After negotiations, a mutually acceptable schedule was reached
by the parties, which include Delphi Corp., and other
defendants, the Official Committee of Equity Security Holders,
and the Official Committee of Unsecured Creditors. The parties
met on June 3, 2008, and thereafter, to discuss an appropriate
schedule for the progress of the adversary proceedings.
Edward Friedman, Esq., at Friedman, Kaplan, Seiler and Adelman,
in New York, informed the Court the Plan Investors rejected
Delphi's contention of its right to seek specific performance of
all or portions of the contractual obligations under the Equity
Purchase and Commitment Agreement, and Delphi insisted that the
actions should proceed in an expedited manner to preserve its
claimed right to obtain that remedy.
The parties have acknowledged that in setting an expedited
schedule, each will be seeking a significant volume of pre-trial
documentary and testimonial discovery necessary for the
adjudication of the claims, counterclaims, if any, and defenses
in the Actions.
As a result of the agreed schedule, Delphi is withdrawing its
prior request for an expedited discovery and trial. The parties
have agreed and stipulated:
(1) Each party to the Actions may take discovery on all
relevant matters. The Official Committees may participate
in the discovery;
(2) Discovery and related matters will be governed by this
schedule:
(i) Each party will serve its initial disclosures
required by Rule 26(a)(1) of the Federal Rules of
Civil Procedure not later than June 11, 2008;
(ii) The Plan Investors will each either answer or file
a motion in response to the complaints in the
Actions by June 20, 2008, and will coordinate with
respect to any motions they file to avoid
duplicative papers;
(iii) The parties will serve initial sets of document
requests not later than June 13, 2008. Each party
will serve written document responses and
objections on all parties within 21 days of the
service of the document requests;
(iv) Document production will begin on July 1, 2008, and
must be complete by August 12, 2008. The parties
are not prohibited from making further request for
additional documents beyond the Initial Requests,
provided that responses to the requests will not be
due before August 12, 2008;
(v) Notices of deposition may be served at any time.
A party or third-party deposition may commence on
or after September 3, 2008. If any party fails to
complete its document production by August 12,
2008, the other parties reserve the right to move
to modify the commencement date for depositions and
subsequent deadlines set forth, and for other
appropriate relief;
(a) Delphi may take up to 30 depositions of
fact witnesses;
(b) The Plan Investors may take up to 50
depositions of fact witnesses; and
(c) The parties agree to attempt in good faith
to schedule all depositions as expeditiously
as possible, at the rate of three days of
depositions a week;
(vi) Delphi and the Plan Investors may as a group, each
take the deposition of up to two natural persons on
dates to be agreed upon between August 12, 2008,
and August 22, 2008;
(vii) Each party may serve interrogatories not earlier
than June 13, 2008, and not later than 30 days
before the fact discovery deadline;
(vi) Each party may serve any requests to admit not
earlier than June 13, 2008, and not later than 30
days before the fact discovery deadline;
(viii) With respect to the Court's order authorizing the
Debtors to issue subpoenas directing expedited oral
examinations of and production of documents by
certain investors dated March 17, 2008, the parties
agree that any further discovery taken pursuant to
the order under Rule 2004 of the Federal Rules of
Bankruptcy Procedure will be subject to the limits,
procedures and schedules;
(ix) All discovery will be completed by Dec. 31, 2008;
(x) Any expert report will be served within 30 days of
the fact discovery deadline, and rebuttal expert
reports will be filed within 30 days after service
of initial reports. Depositions of expert
witnesses will be completed within 30 days
following the service of the last rebuttal expert
report;
(xi) Any party may move subject to Local Bankruptcy Rule
7056-1, for summary judgment or partial summary
judgment at any time;
(xii) Each party reserves the right to move for
injunctive relief and each party reserves its
rights to oppose or object to any motion; and
(xiii) Except as otherwise ordered by the Court, the
Actions will be trial ready by 90 days following
the fact discovery deadline.
Trial to Begin April 2009
As previously reported, Delphi targeted an August 9 trial to its
lawsuit seeking specific performance by the Plan Investors on
the EPCA, which is needed for the consummation of Delphi's
Court-confirmed reorganization plan. Counsel pointed out that
Delphi has proposed a longer schedule than was the case in other
recent litigations also involving multibillion dollar disputes
such as the Solutia Inc. case in this district and the Clear
Channel Communications case in the New York State Court.
Judge Drain, however, affirmed the Plan Investors' contentions
and ruled that the schedule was "too ambitious," despite Delphi
counsel's claims that two years of tremendous efforts to achieve
a confirmed plan will be wasted if the the adversary proceedings
against the Plan Investors are not immediately resolved.
Mr. Friedman, special litigation counsel to Delphi, noted that
by virtue of waivers previously granted by the Pension Benefit
Guaranty Corp. and the Internal Revenue Service, Delphi has a
window of opportunity to emerge from Chapter 11 between June 15
and Sept. 30, 2008, without the need to go back to those
agencies and obtain new waivers. In that light, Delphi is
pursuing an August 1 trial to be able to emerge on September 30
at the very very latest.
At the May 29 conference, attorneys already debated on the
merits of the lawsuit, as to whether Delphi is currently
entitled to specific performance by Plan Investors.
Mr. Friedman noted that on April 4, when the EPCA was scheduled
for closing, Delphi satisfied the prerequisites for funding by
Appaloosa, et al. -- General Motors Corp., the exit lenders, all
other parties necessary for the consummation of the plan were
ready and able to close, and Delphi was able to raise funds from
the rights offering.
The Plan Investors, however, argued that Delphi is not entitled
to specific performance because they no longer satisfy the terms
of the EPCA -- funds received from investors in the rights
offering have been returned, the US$6,000,000,000 exit debt
financing agreements have been terminated, and it has lost its
debt ratings.
Mr. Friedman, however, explained that Delphi is currently not in
full compliance because of the Plan Investors' wrongful conduct
and contractual breaches. He cited, among other things, Delphi
made the decision to return funds received from the rights
offering in accordance with its fiduciary duties when the Plan
Investors' conduct made the closing impossible.
He avers that Delphi will be in compliance with all conditions
if the Court agrees that the remedy of specific performance is
warranted. He said Delphi, among other things, would re-
initiate the rights offering, and would redevelop the
commitments for the exit financing, which it expects to be
completed within 30 to 40 days after judgment.
Delphi's theory -- after an order on specific performance, it
could restart its rights offering, raise public debt, and try to
put the whole plan back together -- is fundamentally flawed and
violates New York law, argued counsel for Appaloosa, Christopher
Shore, Esq., at White & Case LLP, in New York.
Counsel for UBS Securities, LLC, Jeffrey Rosenthal, Esq., at
Cleary Gottlieb Steen & Hamilton LLP, in New York, added,
"[Delphi] hasn't cited a single case that says that being ready,
willing, and able in the past allows them to get specific
performance in the future."
"Granted the debtors have not cited cases on this point, but it
seems to me that if a contract party's breach is preventing the
debtors from being ready, willing, and able they don't
necessarily have to do more than show that they could be able to
perform if that impediment, that breach were resolved," Judge
Drain said. But he admitted the Debtors have not provided any
evidence showing that the exit loan lenders would be able to
advance in the future.
Mr. Friedman acknowledged at the conference that in an effort to
mitigate damages, Delphi is pursuing alternative steps to try to
develop a modified plan, which will require re-solicitation and
will be materially adverse to the stakeholders.
"The goal is to emerge from Chapter 11 by the end of the third
quarter if that's humanly possible either by means of
consummation of the plan that has already been confirmed, or if
the Court rejects Delphi's claims, then Delphi and the
stakeholders will be in the unfortunate position of pursuing a
modified plan," Mr. Friedman said.
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.
(Delphi Bankruptcy News, Issue No. 133; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
DELPHI CORP: Gets New Bid for Power Biz; 54 Pacts Part of Sale
--------------------------------------------------------------
Delphi Corp. has obtained a competing bid for their power
products business. Delphi, however, did not identify the bidder
in documents submitted to the U.S. Bankruptcy Court for the
Southern District of New York.
In connection with their continuous evaluation of their product
portfolio, the Debtors have determined that the power products
business no longer fit within their future product portfolio.
Following extensive marketing efforts, on May 27, 2008, Delphi
and certain non-debtor affiliates entered into a master sale and
purchase agreement with Strattec Security Corporation, Witte-
Velbert GmbH & Co. Kg, Vehicle Access Systems Technology LLC,
and certain of their affiliates for the sale of certain assets
related to the Power Products Business.
Under the Agreement, the Strattec Buyers would purchase the
Power Products Business for US$7,800,000, subject to certain
adjustments.
Because the Purchase Price does not exceed US$10,000,000, the
Debtors did not file with the Court a motion for approval of the
asset sale, and were allowed, pursuant to the Court-approved
procedures for selling de minimis assets, to sell those types of
assets, after notice with the Court and parties interested in
those assets, among other parties.
The Debtors served notice of the Power Products Sale on May 27,
which notice provides that the sale of would be consummated with
the Strattec Buyers unless written objections, bids, or requests
for additional time were received by the Debtors by June 3,
2008.
The Debtors received the competing bid from the unidentified
bidder on June 3. The Debtors are currently in the process of
evaluating the bid, says John Wm. Butler, Jr., Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois. He adds
that if the Debtors, in their sole discretion, determine that
this bid, or subsequent bid, constitutes the highest value bid,
then Delphi will seek relief from the Court to assume and assign
contracts related to the Power Products Business to the
competing bidder, instead of the Strattec Buyers.
Assumption and Assignment of U.S. Contracts
Under Section 6.3 of the Strattec Agreement, as soon as
practicable after the Agreement was signed, Delphi was obligated
to seek the Court's authority to assume and assign to the
Strattec Buyers certain contracts identified by the parties.
Accordingly, by this motion, the Debtors ask the Court to enter
an order authorizing and approving the assumption and assignment
of 54 executory contracts in connection with the sale of their
Power Products Business to the Strattec Buyers, or the competing
bidder.
Mr. Butler notes the Assumed U.S. Contracts are important to the
operation of the Power Products Business, and the Strattec
Buyers would not purchase the Power Products Business unless the
Assumed U.S. Contracts are transferred to them. Thus, the
Debtors' assumption of the Assumed U.S. Contracts and assignment
of the contracts to the Strattec Buyers is necessary to enable
the Sellers to consummate the sale of the Power Products
Business to the Strattec Buyers.
The approximate cost to cure the Assumed U.S. Contracts related
to the Power Products Business is US$347,010. Pursuant to the
order establishing procedures for solicitation of votes and
support on Delphi's Joint Plan of Reorganization, each non-
Debtor party to the 54 Assumed U.S. Contracts that are material
supply agreements already has received a cure notice.
The Plan Cure Notice stated, with respect to each Assumed U.S.
Contract, the cure amount that the Debtors believe is necessary
to assume the contract pursuant to Section 365 of the Bankruptcy
Code. The Plan Cure Notice provided parties to these Assumed
U.S. Contracts with an opportunity to object to the Cure Amount,
and notified each party that such party's contract was to be
assumed under the Plan.
Of the 54 parties to the Assumed U.S. Contracts for which the
Debtors served a Plan Cure Notice, only four parties objected to
the Debtors' proposed Cure Amount. Unless the Selling Debtor
Entities and the non-Debtor party to an Assumed U.S. Contract
agree otherwise to the Cure Amount or the Cure Amount is
otherwise resolved in accordance with Solicitation Procedures
Order or other order of the Court, the Cure listed on the Plan
Cure Notices control the amounts required to cure all defaults
under the Assumed U.S. Contracts that are material supply
contracts.
The Assumed U.S. Contracts would be assumed at the earlier of
the closing of the sale of the Power Products Business or the
Debtors' emergence date from the Chapter 11 cases.
Nonetheless, prior to the Closing Date or the Emergence Date,
the Selling Debtor Entities may revise their decision with
respect to the assumption and assignment of any Assumed U.S.
Contract and provide notice amending the information provided,
Mr. Butler notes.
The Assumed U.S. Contracts are:
Contract To Be
Assumed & Assigned Non-Debtor Contract Party
------------------ -------------------------
D0550076639 AMTECH INDUSTRIES LLC
(JV Amtech & Intec)
D0550064001 AMTEK MEXICO SA DE CV EFT
D0550022116 AUTOLIV ASP INC
D0550022243 AUTOLIV ASP INC EFT
D0550076293 AVON AUTOMOTIVE INC
D0550022971 CAMCAR DIV OF TEXTRON INC
D0550037665 CAPSTAN ATLANTIC
D0550059940 CAPSTAN ATLANTIC
D0550022122 CASCADE DIE CASTING
D0550022830 CHERRY ELECTRICAL
PRODUCTS
D0550052192 COLLINS & AIKMAN PRODS CO
D0550074455 FOAMEX
D0550074456 FOAMEX
D0550074457 FOAMEX
D0550074563 FOAMEX
D0550074564 FOAMEX
D0550079225 FOAMEX
D0550080330 FUJIKURA AMERICA INC
PO#OR3V0002 between General GENERAL MOTORS CORP.
Motors Corporation and Delphi S&I -
Mount Sterling; Dated 8/25/2005;
Amendment #002; Valid 3/28/2004 -
8/1/2008; Part #10376548.
D0550052145 GKN SINTER METALS EFT
D0550076310 HANGZHOU TRANSAILING EFT
D0550022536 HYLAND MACHINE CO EFT
D0550022842 IN2CONNECT INC
D0550023223 IN2CONNECT INC
D0550024506 INTASCO USA INC
D0550087191 INT'L RESISTIVE CO
D0550022592 INTIER AUTOMOTIVE
INTERIORS
Grant of Security Int. in Patent JP MORGAN CHASE BANK
Rights between Delphi Technologies,
Inc and JPMorgan Chase Bank, N.A.
dated 06-14-05
D0550035472 KOSTAL MEXICANA SA DE CV
D0550026051 L & W ENGINEERING CO INC
D0550061252 L & W ENGINEERING CO INC
D0550024156 LDI INCORPORATED
D0550025201 LDI INCORPORATED
D0550022596 MAC ARTHUR CORP
D0550079811 MAC ARTHUR CORP
D0550023568 MULTEX FLEXIBLE CIRCUITS
D0550056439 MULTIBASE INC
D0550076391 PRECISION RESOURCE
CONNECTICUT
D0550057079 RED SPOT PAINT &
VARNISH EFT CO INC
D0550057092 RED SPOT PAINT & VARNISH
D0550078829 ROBIN INDUSTRIES INC
D0550056677 SOLVAY ENGINEERED
POLYMERS EFT
D0550077738 SPARTECH POLYCOM
D0550056314 TEKNOR APEX CO
D0550056383 TEKNOR APEX CO
D0550056423 TEKNOR APEX CO EFT
D0550074858 TESSY PLASTICS CORP
D0550074860 TESSY PLASTICS CORP
Letter of Intent bet. Tjing Ling TJING LING RESEARCH AND
Research & Development Center Co., DEVELOPMENT CENTER CO.
Ltd. and Delphi Thermal & Interior LTD
Division of Delphi Autom. Systems
LLC dated 5/18/2005.
D0550053417 TRW VEHICLE SAFETY SYSTS
D0550070364 TRW VEHICLE SAFETY SYSTS
D0550023217 TYCO ELECTRONICS CORP
D0550074552 WOORY INDUSTRIAL CO LTD
D0550074553 WOORY INDUSTRIAL CO LTD
D0550074554 WOORY INDUSTRIAL CO LTD
D0550080042 WOORY INDUSTRIAL CO LTD
D0550074776 ZOHAR JACOBS ACQUISITION
LLC
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.
(Delphi Bankruptcy News, Issue No. 132; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
DELPHI CORP: Amends US$4.1BB Facility to Raise Available Amount
---------------------------------------------------------------
The Honorable Robert Drain of the U.S. Bankruptcy Court for the
Southern District of New York has entered a written order
approving Delphi Corp.'s US$4,350,000,000 DIP facility. Due to
the oversubscription during the syndication of the loans, Delphi
sought to amend its US$4,100,000,000 loan package by:
(i) increasing the amount of availability under the Tranche A
revolving credit facility to US$1,100,000,000 and
decreasing the amount of the Tranche B term loan to
US$500,000,000; and
(ii) increasing the principal amount of the Tranche C Loan by
approximately US$254,000,000.
The DIP Facility matures Dec. 31, 2008.
According to the Amended and Restated Revolving Credit, Term
Loan and Guaranty Agreement dated May 9, 2008, these financial
institutions took part in arranging the loan:
-- JPMORGAN CHASE BANK, N.A., as Administrative Agent,
-- CITICORP USA, INC., as Syndication Agent,
-- BANK OF AMERICA, N.A., GENERAL ELECTRIC CAPITAL
CORPORATION and WACHOVIA CAPITAL FINANCE CORPORATION as
Co-Documentation Agents for Tranche A and Tranche B,
-- J.P. MORGAN SECURITIES INC., CITIGROUP GLOBAL MARKETS INC.
and GE CAPITAL MARKETS, INC. as Joint Lead Arrangers for
Tranche A and Tranche B,
-- JPMORGAN SECURITIES INC., CITIGROUP GLOBAL MARKETS INC.,
GE CAPITAL MARKETS, INC. and BANK OF AMERICA, N.A., as
Joint Bookrunners for Tranche A and Tranche B,
-- DEUTSCHE BANK SECURITIES INC., as Documentation Agent for
Tranche C,
-- J.P. MORGAN SECURITIES INC., CITIGROUP GLOBAL MARKETS INC.
and DEUTSCHE BANK SECURITIES INC. as Joint Lead Arrangers
for Tranche C, and
-- J.P. MORGAN SECURITIES INC., CITIGROUP GLOBAL MARKETS INC.
and DEUTSCHE BANK SECURITIES INC. as Joint Bookrunners for
Tranche C.
The Amended Credit Agreement also provides for these changes:
-- Lenders will fund the US$254,179,760 addition Tranche C
Loan on June 9.
-- The Debtors will pay for the additional Tranche C loan a
commitment fee computed (on the basis of the actual number
of days elapsed over a year of 360 days) at the rate of
2.625% per annum on the additional loan.
-- Conditions precedent to the additional Tranche C Loan,
include, JPMorgan, as administrative agent, will have
received an amendment fee for the account of each Tranche
C Lender in an amount equal to 200 basis points of the
additional Tranche C commitments of each lender.
-- Any Lender may assign to one or more special purpose
funding vehicles all or any portion of its funded Tranche
A Loans and may grant any SPV the option to fund all or
any part of any Tranche A Loans that the Lender would
otherwise be obligated to fund pursuant to the Credit
Agreement.
A full-text copy of the Amended Credit Agreement is available
for free at:
http://bankrupt.com/misc/Delphi_May2008_DIP_Accord.pdf
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors. As of
March 31, 2007, the Debtors' balance sheet showed
US$11,446,000,000 in total assets and US$23,851,000,000 in total
debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008.
(Delphi Bankruptcy News, Issue No. 132; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL MOTORS: Appointments Build GM Brand Channel Alignment
-------------------------------------------------------------
General Motors Corp. disclosed personnel moves in support of its
four retail channels: Chevrolet; Premium (Cadillac, Hummer,
Saab); Buick-Pontiac-GMC; and Saturn. The moves streamline the
organization by combining or eliminating job functions. This
will help the brands better deliver world-class products to
customers, and build value for GM and its dealers.
These appointments are effective July 1, 2008; however, these
individuals will begin to transition into their new roles
immediately.
Reporting to Ed Peper, North America vice president, Chevrolet
Channel will be:
* Kim Kosak, general director, advertising and promotions.
This is essentially a continuation of Kosak's current
responsibilities.
* Rick Scheidt, executive director, product marketing. Mr.
Scheidt was previously executive director, Chevrolet
product development.
* Kurt McNeil, general sales manager. Mr. McNeil was
previously regional general manager - South Central Region.
Reporting to Mark McNabb, North American vice president, Premium
Channel will be:
* Steve Hill, general sales manager. Mr. Hill was previously
regional general manager - North Central Region.
* Steve Shannon, Jim Taylor, and Martin Walsh will continue
to report to Mr. McNabb as general managers of Saab,
Cadillac and Hummer respectively.
Reporting to Susan Docherty, North America vice president, BPG
Channel will be:
* Cheryl Catton, general director, advertising and
promotions. Ms. Catton was previously general director,
Chevrolet car marketing.
* Russ Clark, executive director, product marketing. Mr.
Clark was previously executive director, BPG product
development.
* Brian Sweeney, general sales manager. Mr. Sweeney was
previously general director, BPG retail development.
Reporting to Jill Lajdziak, Saturn General Manager will be:
* Sterling Wesley, general sales manager. Mr. Wesley was
previously executive director, Motors Holding Division.
* Dan Keller, director of advertising and promotions. Mr.
Keller was previously director of marketing, Saturn.
* Stuart Pierce, director of product marketing. Mr. Pierce
was previously director of brand and product development,
Saturn.
"This is a natural follow-up to our recent announcement to more
strongly align marketing and field operations into four retail
channels," Mark LaNeve, GM North American vice president, said.
"These new assignments will help each channel meet targeted
customer needs, align closely with our dealer partners, and make
each of our brands stronger with more focused models."
About GM
Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908. GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India. In 2007, nearly 9.37 million
GM cars and trucks were sold globally under the following
brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden,
HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's
OnStar subsidiary is the industry leader in vehicle safety,
security and information services.
At March 31, 2008, GM's balance sheet showed total assets of
US$145,741,000,000 and total debts of US$186,784,000,000,
resulting in a stockholders' deficit of US$41,043,000,000.
Deficit, at Dec. 31, 2007, and March 31, 2007, was
US$37,094,000,000 and US$4,558,000,000, respectively.
* * *
The TCR-LA reported on June 6, 2008, that Standard & Poor's
Ratings Services said that its ratings on General Motors Corp.
(B/Negative/B-3) are not immediately affected by the company's
announcement that it will cease production at four North
American truck plants over the next two years. These closures
are in response to the re-energized shift in consumer demand
away from light trucks. GM previously said only one shift was
being eliminated at each of the four truck plants. Production
is being increased at plants producing small and midsize cars,
but the cash contribution margin from these smaller vehicles is
far less than that of light trucks.
As reported in the Troubled Company Reporter-Latin America on
May 26, 2008, Standard & Poor's Ratings Services affirmed its
'B' corporate credit rating and other ratings on General Motors
Corp. and removed them from CreditWatch with negative
implications, where they were placed March 17, 2008, as a result
of the strike at American Axle & Manufacturing Holdings Inc.
The outlook on GM is negative.
At the same time, S&P raised our issue-level rating on GM's
senior unsecured notes to 'B' (the same as the corporate credit
rating on the company) from 'B-', and assigned recovery ratings
of '4', indicating the expectation for average (30% to 50%)
recovery in the event of a payment default. The rating actions
reflect the extension of our recovery ratings to all
speculative-grade unsecured debt issues.
ENERGIAS DO BRASIL: Forms Joint Venture With EDP Renovaveis
-----------------------------------------------------------
NoticiasFinancieras reports that Energias do Brasil S.A. has
formed EDP Renovaveis Brasil with EDP Renovaveis.
According to NoticiasFinancieras, EDP Renovaveis Brasil will be
used to invest in wind energy. Energias do Brasil will own a
45% stake in the joint venture and EDP Renovaveis will have 55%.
Energias do Brasil and EDP Renovaveis also purchased wind energy
firm Central Nacional de Energia Eolica (Cenaeel) for
BRL51.3 million. Cenaeel has two wind parks in Santa Catarina,
NoticiasFinancieras states.
Energias do Brasil S.A. is an integrated utility group
controlled by Energias de Portugal, with activities in
generation, distribution and commercialization of electricity.
Its power distribution subsdiaries Bandeirante, Escelsa and
Enersul represent altogether some 64% of consolidated total
assets, while the power generation assets represent some 31%.
* * *
In May 2007, Moody's Investors Service placed a Ba2 long-term
corporate family rating on Energias do Brasil.
MRS LOGISTICA: Deploys Tellabs to Upgrade and Manage Systems
------------------------------------------------------------
MRS Logistica has chosen Tellabs as the telecom technology
partner to engineer its communications upgrade. Tellabs also
will manage the migration to a centralized communications system
that supports applications such as VOIP and video-conferencing.
MRS Logistica is deploying the Tellabs(R) 8600 managed edge
system and the Tellabs(R) 8100 managed access system. These
products enable the company to combine current and new traffic
on a single converged network. MRS Logistica will also use the
Tellabs(R) 8800 multiservice router for its unique virtual
private LAN service capabilities. The network is the first of
its kind in Brazil.
"This is a big project, and information technology will make the
difference," MRS Logistica chief information officer, Decio
Tomaz said. "It's well known that the Tellabs 8600 system is
the best you can get for its management and usage capabilities.
With IP technology, we can do a lot of things that TDM (time
division multiplexing) does not support."
MRS Logistica's core business is railroads, not telecom. It has
a large number of trains, depots and offices spread all over the
country. The project involved a deep analysis of the types of
hardware and services the company needed. So the company turned
to Tellabs for its high level of service and support, as well
as network infrastructure.
Tellabs has operated in Brazil for over 10 years with network
deployments that extend across the whole Brazilian geography.
This presence in Brazil enables the company to be a full partner
to MRS Logistica, with a deep knowledge of their business and
market.
"Our environmental-hardened equipment can withstand the
conditions of Brazil, and the management system puts MRS in
control of the network," said vice president of sales for
Tellabs' Latin America and Caribbean region, Tarcisio Ribeiro.
"The flexibility of offering various interfaces for legacy and
new services has been a key for MRS."
The upgraded MRS network provides reliable communications
between operations centers and trains themselves. This
centralized network management enables additional trains on the
tracks, raises productivity and reduces fuel usage. So the
people of Brazil, the environment and MRS all benefit from the
new network.
About Tellabs
Tellabs (Nasdaq: TLAB) -- http://www.tellabs.com-- enables
service providers to deliver high-quality voice, video and data
services over wireline and wireless networks around the world.
Tellabs is part of the NASDAQ Global Select Market, Ocean Tomo
300(TM) Patent Index and the S&P 500.
About MRS Logistica
The MRS consortium is a railway freight transport company
established in 1996 to operate approximately 1,700 kilometers of
track in the states of Minas Gerais, Rio de Janeiro e Sao Paulo.
MRS's rail network is also linked to the Central Atlantic,
Vitoria-Minas and Sao Paulo Railroads, offering intramodal
transportation options to the other parts of the country. The
company mainly transports cargo for its principle shareholders.
* * *
As reported in the Troubled Company Reporter-Latin America on
May 24, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based railroad
company MRS Logistica S.A. S&P revised the outlook to positive
from stable.
TAM SA: Signs MoU for Codeshare Agreement With Air Canada
---------------------------------------------------------
TAM S.A. and Air Canada have signed a Memorandum of
Understanding in Sao Paulo providing for the implementation of a
codeshare agreement and reciprocal frequent flyer mileage
accumulation for members of the carriers' loyalty programs, TAM
Fidelidade and Aeroplan. The intent of the proposed agreement
is to offer increased services for customers traveling between
Brazil and Canada, including seamless transfers and convenient
connections to a variety of destinations served by the two
airlines.
"We will be increasing availability of international
destinations through this agreement between TAM and Air Canada,
consistent with our strategy of establishing partnerships with
the world's main airlines," TAM's Vice-President for Planning
and Alliances, Paulo Castello Branco said.
"Brazil is a very important market for Air Canada," commented
Air Canada's Vice President of Network Planning, Daniel Shurz.
"We look forward to working with TAM to develop a strong
commercial partnership that will benefit the customers of both
our airlines."
The proposed agreement will allow TAM passengers to travel on
Air Canada from Sao Paulo to Toronto, with connections to many
destinations in Canada. Air Canada customers, in turn, will
enjoy increased options for traveling to points throughout
Brazil with convenient connections with its daily non-stop
flights to Sao Paulo from Toronto. In addition, members of TAM
Fidelidade and Air Canada's Aeroplan frequent flyer programs
will benefit from reciprocal mileage accumulation on eligible
codeshare flights.
TAM is a pioneer in launching a loyalty program in Brazil. The
company has 4.7 million members and has issued more than 5.5
million tickets redeemed with frequent flyer points.
Air Canada's new in-flight product features lie-flat beds in its
international business class cabin called "Executive First."
All customers in Economy and business class enjoy digital
quality personal seatback entertainment systems with 80 hours of
video and 50 hours of audio on demand, a USB port and a standard
110 volt electrical outlet at arms reach.
Starting Dec. 1, 2008, Air Canada will upgrade its aircraft on
the Sao Paulo-Toronto route to a Boeing 777-300ER from a Boeing
767-300, providing an additional 138 seats a day. AC091 will
depart Sao Paulo at 10:30 p.m. and arrive in Toronto the
following morning at 5:35 a.m. AC090 will depart Toronto daily
at 10:10 p.m. and arrive in Sao Paulo at 10:50 a.m. Flights are
timed to connect at the carrier's main hub in Toronto with
onward Air Canada flights to Europe and Asia, providing
convenient travel times between those continents and South
America.
About TAM
TAM S.A. currently -- http://www.tam.com.br/-- has business
agreements with the regional airlines Pantanal, Passaredo, Total
and Trip. As of Jan. 14, the daily flight on the Corumba --
Campo Grande route in Mato Grosso do Sul began to be operated by
a partnership with Trip. With the expansion of the agreement
with NHT, TAM will now be serving 82 destinations in Brazil, 45
of which with its own flights. In addition, the company is
strengthening its presence in Rio Grande do Sul and Santa
Catarina.
The company's international operations include direct flights to
17 destinations: New York and Miami (USA), Paris (France),
London (England), Milan (Italy), Frankfurt (Germany), Madrid
(Spain), Buenos Aires and Cordoba (Argentina), Santiago (Chile),
Caracas (Venezuela), Montevideo and Punta del Este (Uruguay),
AsunciOn and Ciudad del Este (Paraguay), and Santa Cruz de la
Sierra and Cochabamba (Bolivia)
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 27, 2007, Standard & Poor's Ratings Services affirmed its
'BB' long-term corporate credit rating on Brazil-based airline
TAM S.A. S&P said the outlook is stable.
On July 23, 2007, Fitch Ratings affirmed the 'BB' foreign
currency and local currency Issuer Default Ratings of TAM S.A.
Fitch has also affirmed the 'BB' rating of its US$300 million of
senior unsecured notes due 2017 as well as the company's
'A+(bra)' national scale rating and for its first debentures
issuance (BRL500 million). Fitch's rating outlook is stable.
==========================
C A Y M A N I S L A N D S
==========================
BALBOA FUND: Proofs of Claim Filing Deadline Is Until June 23
-------------------------------------------------------------
Balboa Fund Ltd.'s creditors have until June 23, 2008, to prove
their claims to Reid Services Limited, the company's liquidator,
or be excluded from receiving any distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Balboa Fund's shareholders decided on May 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:
Reid Services Limited
Clifton House, 75 Fort Street,
P.O. Box 1350, Grand Cayman,
Cayman Islands
GREENFORD LTD: To Hold Final Shareholders Meeting on June 20
------------------------------------------------------------
Greenford Ltd. will hold its final shareholders meeting on
June 20, 2008, at the offices of Leman Management Limited,
Wessex House, 2nd floor, 45 Reid Street, Hamilton HM 12,
Bermuda.
These matters will be taken up during the meeting:
1) accounting of the wind-up process and giving
explanation thereof.
Greenford Ltd.'s shareholder agreed on April 29, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Edward Allanby
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309GT, Ugland House
South Church Street, George Town
Grand Cayman, Cayman Islands
POWERASE TECHNOLOGY: Claims Filing Deadline Is Until June 23
------------------------------------------------------------
Powerase Technology Holding Ltd.'s creditors have until June 23,
2008, to prove their claims to Tung Hung-Szu, 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.
Powerase Technology's shareholder decided on May 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:
Tung Hung-Szu
c/o Walkers SPV Limited
Walkers House, 87 Mary Street
P.O. Box 265, George Town,
Grand Cayman, Cayman Islands
Contact for inquiries:
Michael Makridakis
Telephone: 914 4205
SANWA CAPITAL: Deadline for Proofs of Claim Filing Is June 20
-------------------------------------------------------------
Sanwa Capital Nexus TMK Holdings Inc.'s creditors have until
June 20, 2008, to prove their claims to Walkers SPV Limited, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Sanwa Capital's shareholder decided on May 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:
Walkers SPV Limited
Walkers House, 87 Mary Street
P.O. Box 265, George Town,
Grand Cayman, Cayman Islands
Contact for inquiries:
Anthony Johnson
Telephone: (345) 914-6314
SIAM INVESTMENT: Sets Final Shareholders Meeting on June 23
-----------------------------------------------------------
Siam Investment Fund will hold its final shareholders meeting on
June 23, 2008, at the office of Finansa Public Company Limited.
These matters will be taken up during the meeting:
1) accounting of the wind-up process and giving
explanation thereof.
Siam Investment's shareholder(s) 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:
James Marshall
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309GT, Ugland House
South Church Street, George Town
Grand Cayman, Cayman Islands
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C O S T A R I C A
==================
US AIRWAYS: To Cut Fourth Quarter Domestic Capacity by 8%
---------------------------------------------------------
US Airways Group Inc. said it is making additional domestic
capacity reductions, reducing headcount and implementing several
new revenue and cost-cutting initiatives in response to rising
fuel costs. At current fuel prices, the company estimates that
it will spend an average of US$299 in fuel costs alone to carry
one mainline passenger on a round trip journey, which is an
increase from an average of US$151 in 2007 and US$70 in 2000.
Capacity Reduction
The company announced it will reduce its fourth quarter domestic
mainline capacity by 6% to 8% on a year-over-year basis as
opposed to the previously announced 2% to 4% decrease. The
company also announced that domestic mainline capacity for 2009
is planned to be reduced seven to 9% from 2008 levels.
The company intends to reduce the size of the fleet by returning
six Boeing 737-300 aircraft by the end of 2008, four Airbus A320
aircraft in the first half of 2009, and the cancellation of
leases of two A330-200 wide-body aircraft that had been
scheduled for delivery in the second quarter of 2009. The
airline is also planning to reduce additional aircraft in 2009
and 2010.
The company also announced that effective Sept. 3, 2008, it will
close most of its Las Vegas night operation, which will reduce
daily departures from Las Vegas to 81 flights as of the
September 3 schedule change with additional reductions by the
end of 2008.
The company also announced that in connection with its reduction
in the number of flights and the size of the fleet, it would
require about 1,700 fewer positions across the system including
about 300 pilots, 400 flight attendants, 800 airport employees
and 200 staff and management.
Additional Savings
The company announced plans to close (i) the US Airways Clubs in
the Baltimore/Washington International Airport and the Raleigh-
Durham International Airport, (ii) arrivals lounges in Munich,
Rome, and Zurich, and (iii) cargo stations in Burbank, Colorado
Springs and Reno. The company also intends to revise its
wholesale programs for cruise lines, tour operators and
consolidators, including reducing the number of agency partners,
decreasing discounts, adding tighter restrictions on travel
rules, and reducing commissions.
Revenue and Fee Initiatives
The company also announced these revenue and fee initiatives:
* First-Checked-Bag Fee: The company plans to implement a
first-checked-bag service fee of US$15. The new fee goes
into effect for tickets booked on or after July 9, 2008,
and will apply to most customers on flights within the
U.S. and to or from Canada, Latin America, and the
Caribbean.
* In-Flight Beverage Purchase Program: Effective Aug. 1,
2008, the company plans to begin selling all non-alcoholic
beverages (including sodas, juices, bottled water and
coffee) in its domestic coach cabins and increasing the
cost of alcoholic beverages. Complimentary beverages will
continue to be served to domestic First Class, US Airways
Shuttle, trans-Atlantic Envoy and trans-Atlantic economy
class passengers and to unaccompanied minors.
* Call Center Ticket Fees: US Airways has instituted a US$25
service fee for domestic tickets and a US$35 service fee
for international tickets purchased through its call
center reservations line, and tickets purchased at
airport/city ticket offices will be assessed a US$35
(domestic) or US$45 (international) service fee.
* Dividend Miles Changes: The company intends to increase
the award redemption processing fee on all Dividend Miles
award tickets issued on or after Aug. 6, 2008, and
eliminate its special bonus miles program for Preferred
status Dividend Miles members.
* Employee Guest Pass Price Increase: While the company's
employees and their eligible dependents will continue to
enjoy free travel throughout the airline's domestic and
international network, the company intends to increase
fees paid by employees' guests and parents, who travel on
a standby basis.
The company believes that the preceding revenue and fee
initiatives combined with the previously announced Choice Seats
and second-checked-bag carry programs will generate between
US$300 million and US$400 million annually.
Results of Annual Meeting of Stockholders
US Airways diclosed the results of its annual meeting of
stockholders held on June 12, 2008, at its corporate
headquarters in Tempe, Ariz. Stockholders voted to re-elect W.
Douglas Parker and Bruce R. Lakefield to three-year terms on the
Board of Directors, expiring at the annual meeting of
stockholders in 2011. In addition, stockholders voted to ratify
the appointment of KPMG LLP as the company's independent
registered accounting firm. Stockholders also voted in favor of
the US Airways Group, Inc. 2008 Equity Incentive Plan, and
against two shareholder proposals, one relating to disclosure of
political contributions and one relating to the preparation of a
corporate sustainability report.
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)
* * *
As reported in the Troubled Company Reporter on June 2, 2008,
Fitch Ratings has downgraded the debt ratings of US Airways
Group, Inc. as: Issuer Default Rating to 'CCC' from 'B-';
Secured term loan rating to 'B/RR1' From 'BB-/RR1'; and Senior
unsecured rating to 'CC/RR6' from 'CCC/RR6'. Fitch's ratings
apply to approximately US$1.7 billion in outstanding debt. The
Rating Outlook is Negative.
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.
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D O M I N I C A N R E P U B L I C
===================================
AES CORP: To Review Standards on Worker & Contractor Protection
---------------------------------------------------------------
The AES Corp. will hold its yearly Latin America security
meeting to review standards and identify best practices for the
protection of workers and contractors from injuries and risky
situations, Dominican Today reports.
Dominican Today relates that the meeting will be attended by AES
representatives from:
-- Argentina,
-- Brazil,
-- Colombia,
-- Chile,
-- El Salvador,
-- Panama, and
-- Dominican Republic.
AES' Latin American President Andrew Vesey told Dominican Today
that security is the firm's "first corporative value at the
world level" and is very important in the firm's operations.
Administrative and plant staff spend one week each year on the
topic "in the understanding that we all must carry out our work
under strict security norms, even when for AES every day is
Security Day," Mr. Vesey added.
According to Dominican Today, the meeting will give AES workers
an opportunity to obtain knowledge transference on security
between the firms in Latin America.
The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is a
power company with operations in South America, Europe, Africa,
Asia and the Caribbean. The Company generates 44,000 megawatts
of electricity through 124 power facilities, and delivers
electricity through 15 distribution companies.
AES has been in Eastern Europe for over ten years, since it
acquired three power plants in Hungary in 1996. Currently, AES
has two distribution companies in Ukraine, which serve
1.2 million customers and generation plants in the Czech
Republic and Hungary. AES is also the leading company in
biomass conversion in Hungary, generating 37% of the nation's
total renewable generation in 2004. The company has Latin
America operations in Argentina, Brazil, Chile, Dominican
Republic, El Salvador and Panama.
AES's business group in Asia & Middle East is comprised of
electric utilities and generation plants in China, India,
Kazakhstan, Oman, Qatar, Pakistan and Sri Lanka. Fuels include
coal, diesel, hydro, gas and oil. AES has been in the region
since 1994, when it acquired the Cili generation plant in China.
* * *
As reported in the Troubled Company Reporter-Latin America
May 16, 2008, Moody's Investors Service assigned a B1 rating to
The AES Corporation's proposed issuance ofUS$600 million senior
unsecured notes due 2020. In addition, Moody's has affirmed the
ratings of AES, including the company's Corporate Family Rating
at B1, its Probability of Default Rating at B1, its senior
secured credit facilities at Ba1, its second priority senior
secured notes at Ba3, its senior unsecured notes at B1 and its
trust preferred securities at B3. Moody's said the rating
outlook for AES is stable.
The company also carries Fitch Ratings' 'BB/RR1' rating
on US$500 million issue of senior unsecured notes due 2017.
As reported in the Troubled Company Reporter-Latin America on
March 7, 2008, AES Corporation is in default under its senior
secured credit facility and its senior unsecured credit facility
due to a breach of representation related to its financial
statements as set forth in the credit agreements. As a result,
US$200 million of the debt under the company's senior secured
credit facility will be classified as current on the balance
sheet as of Dec. 31, 2007. There are no outstanding borrowings
under the senior unsecured facility.
=============
J A M A I C A
=============
CASH PLUS: Court Moves Receivership Case Hearing to July 21
-----------------------------------------------------------
Radio Jamaica reports that the Supreme Court of Jamaica has
postponed the hearing of the case on Cash Plus Ltd.'s
receivership to July 21 from June 12.
As reported in the Troubled Company Reporter-Latin America on
June 11, 2008, Cash Plus' legal representative Paul Beswick, in
May 2008, challenged co-receiver/manager Kevin Bandoian's
takeover of the firm. Mr. Beswick claimed that the takeover was
illegal and should be returned to the firm's president Carlos
Hill. This made some Cash Plus investors seek advice from their
attorneys.
Radio Jamaica relates that Cash Plus' lawyers argued their case
in front of High Court Judge Marva McIntosh at the Supreme Court
in Downtown Kingston last Thursday. Mr. Hill attended the
hearing. The lawyers are seeking an injunction to prevent the
sale or transfer of Cash Plus' assets without the court's
approval. Cash Plus lawyers were given until June 12 to file
affidavits stating their objections.
Radio Jamaica relates that Mr. Hill's attorneys submitted the
affidavits that challenged the decision of the the court to
place Cash Plus into receivership. According to the lawyers,
the decision to place Cash Plus into receivership is based on a
lawsuit filed by a worker in the firm. Only shareholders,
directors or creditors can file for liquidation of a company,
the lawyers added.
The report says that Mr. Bandoian's legal representatives
countered that the employee who applied for the receivership is
an officer of Cash Plus.
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.
SUGAR COMPANY: Divestment of Factories to Conclude by September
---------------------------------------------------------------
The divestment of the Sugar Company of Jamaica Limited's sugar
factories would be completed by September 2008, Radio Jamaica
reports, citing the All-Island Jamaica Cane Farmers
Association's Chairperson Allan Rickards.
Mr. Rickards told Radio Jamaica that the transfer of ownership
should start as scheduled at the end of June. The sole bidder
for the sugar factories is Infinity Bio Energy of Brazil, Mr.
Rickards added.
Jamaica's Agriculture Minister Christopher Tufton will meet with
the Sugar Company employees at the Long Pond Factory to update
them on the sale, Radio Jamaica states.
The Sugar Company of Jamaica Limited, a.k.a. SCJ, was formed in
November 1993 by a consortium made up of J. Wray & Nephew
Limited, Manufacturers Investments Limited and Booker Tate
Limited. The three companies each held 17% equity in SCJ, with
the remaining 49% being held by the government of Jamaica. In
1998, the government became the sole shareholder of SCJ by
acquiring the interests of the members of the consortium. Its
stated goal was to maximize efficiency, productivity and
profitability of the three sugar factories, within three years.
The principal activities of the company are the cultivation of
cane and the manufacture and sale of sugar and molasses.
The Sugar Company of Jamaica Limited registered a net loss of
almost US$1.1 billion for the financial year ended Sept. 30,
2005, 80% higher than the US$600 million reported in the
previous financial year. Sugar Company blamed its financial
deterioration to the reduction in sugar cane production.
According to published reports, the Jamaican government has
taken responsibility for the payment of the firm's debts. Radio
Jamaica has said that to date, the five sugar factories have
incurred J$3 billion in debts. The government is now selling
the factories.
===========
M E X I C O
===========
ASARCO LLC: Grupo Mexico Asks Court to Examine Uncertain Actions
----------------------------------------------------------------
Grupo Mexico, S.A.B. de C.V., has issued the following statement
to address several misperceptions promoted by ASARCO LLC as part
of its fraudulent conveyance lawsuit against Americas Mining
Corporation (AMC), a GMexico subsidiary. The case is currently
heard in the U.S. District Court of the Southern District of
Texas in Brownsville. GMexico also called on the judge
overseeing ASARCO's bankruptcy proceedings to carefully examine
the questionable actions taken by ASARCO's Board and legal
counsel, Baker Botts, which it believes are costing the
company's creditors and shareholders millions in unnecessary
expenses.
Among the misperceptions are:
-- ASARCO has alleged GMexico stripped ASARCO of a valuable
asset and left it to "die on the vine." In truth, the
sale of ASARCO's majority stake in Southern Peru Copper
Corporation (SPCC) to AMC in 2003 was part of a very
successful restructuring undertaken by GMexico during a
difficult operating period and low copper prices. The
restructuring allowed ASARCO to eliminate all of its
existing short-term debt obligations through 2013,
significantly reducing its current and future financing
costs, boost its credit ratings and reach a standstill
agreement with the U.S. Department of Justice (DOJ) to
help resolve its environmental liabilities. GMexico has
always intended to maintain ASARCO's assets as part of its
long-term productive facilities. That was GMexico's
intention at the time and the company continues to
demonstrate that commitment through its submission of a
full payment plan to ASARCO and its creditors.
-- Despite ASARCO's continuous effort to blame its financial
troubles on the SPCC sale, ASARCO did not file for
bankruptcy protection until two-and-a-half years after
the restructuring, and only then after a debilitating
four-month labor strike and the constant pressure from
the DOJ and Environmental Protection Agency over
unresolved environmental claims. GMexico firmly believes
ASARCO's troubles derive largely from poor legal advice
from ASARCO's law firm, Baker Botts, which incorrectly
convinced the company's board members that the Chapter 11
process would solve all of ASARCO's problems by quickly
resolving its environmental and unknown asbestos
liabilities at a very low cost. Instead, just the
opposite has occurred. Three years and millions of
dollars in legal fees later, the company still faces
numerous unresolved liabilities, has reached
unnecessarily high settlements on others and has been
largely unable to take advantage from the dramatic
turnaround in commodity prices.
-- Baker Botts' hefty legal expenses are being padded even
further through ASARCO's fraudulent conveyance lawsuit
against AMC. ASARCO, which is a 100% owned subsidiary of
GMexico and is responsible for the lawsuit's legal costs
and expenses, is using the case to try and obtain funds
for the remediation of environmental claims against the
company. Yet conveniently lost in ASARCO's arguments is
that fact that the DOJ itself approved the SPCC sale in
2003 and has never objected to the transaction since. In
fact, all the other parties involved approved the
transaction, showing it generated fair market value for
the benefit of all parties.
GMexico believes the behavior of the ASARCO Board members who
approved the AMC lawsuit is reprehensible and they should be
held accountable for all these unnecessary expenses, which
otherwise could be used to pay environmental claims and
creditors. The company also believes the U.S. Bankruptcy Court
should review carefully the Board's behavior and the outrageous
expenses incurred at the considerable cost and detriment of the
creditors and shareholders.
GMexico continues to believe that the allegations made by ASARCO
are without merit and it looks forward to successfully defeating
the lawsuit.
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 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.
AXTEL SAB: Commences Operations in Nuevo Laredo, Tamaulipas
-----------------------------------------------------------
Axtel, S.A.B. de C.V., has commenced its operations in Nuevo
Laredo, Tamaulipas, the company's second new city in 2008.
The company now provides telephony, Internet, data and advanced
telecommunications solutions in 29 cities throughout the
country. Within the state of Tamaulipas, Axtel already provides
services in Ciudad Victoria, Matamoros, Reynosa and Tampico --
including neighboring Ciudad Madero and Altamira.
During the inaugural ceremony, Mayor Ramon Garza Barrios of
Nuevo Laredo, made the initial Axtel call. After the call,
Axtel's Mass and Business Markets Executive Director, Andres
Velazquez Romero announced that the company will invest
approximately US$20 million in Nuevo Laredo over the next 5
years.
Axtel's initial network deployment covers 95% of Nuevo Laredo's
population, offering integrated telecommunications services to
residential and business customers, as well as financial
institutions and government entities. In Nuevo Laredo, the
Company will furnish carrier-class telecommunications services
using a comprehensive portfolio of technological solutions
including WiMAX, a new IP-based voice and data wireless
technology designed to deliver voice and data solutions, under
fixed, portable, nomadic and mobile environments.
"Axtel's 2008 geographic expansion plan, which includes the
addition of Nuevo Laredo, demonstrates Axtel's solid financial
and operating conditions. The company's commitment towards
high-quality and customer-oriented services positions AXTEL as
the best alternative for voice and data telecommunications
services in Mexico," Axtel's Northern Region Director, Antonio
de Nigris Sada stated.
About Axtel
Axtel S.A.B de C.V., formerly known as Axtel S.A. de C.V., is a
fixed-line integrated telecommunications company in Mexico. The
company provides local and long distance hat provides local and
long distance telephony, broadband Internet, data and built-to-
suit communications solutions.
* * *
As reported by the Troubled Company Reporter-Latin America on
Aug. 16, 2007, Standard & Poor's affirmed the 'BB-' corporate
credit and senior unsecured debt ratings on Axtel and its notes
due 2013 and 2017.
In November 2007, Moody's Investors Service gave Axtel S.A.B Ba2
Long-Term Corporate Family Rating and Senior Unsecured Debt
Rating.
CARDTRONICS INC: Leverage Reduction Cues S&P's Positive Outlook
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Houston-based Cardtronics Inc. to positive from stable. At the
same time, S&P affirmed the ratings on the company, including
the 'B+' corporate credit rating.
"The outlook revision reflects Cardtronics' further leverage
reduction and the completion of its acquisition of 7-Eleven's
ATMs business," said Standard & Poor's credit analyst David
Tsui.
The rating reflects the company's high leverage and aggressive
capital spending in a mature and consolidating industry. These
factors are offset partially by Cardtronics' leading position in
the U.S. as an independent ATM provider, as well as its
recurring revenue streams.
Cardtronics owns more than 65% of its network of about 32,600
ATMs and provides services for the balance. The company's ATMs
are located in nonbanking sites such as convenience stores,
grocery stores, drugstores, and retailers.
Headquartered in Houston, Texas, Cardtronics Inc. --
http://www.cardtronics.com/-- is a non-bank owner/operator of
ATMs with more than 25,750 locations. The company operates in
every major U.S. market, at approximately 1,700 locations
throughout the U.K., and at over 700 locations in Mexico.
EMPRESAS ICA: Bags Contract to Build Mexico Line 12 for MXN15BB
---------------------------------------------------------------
Empresas ICA, S.A.B de C.V.'s ICA-led consortium has been
awarded a contract to build the new line 12 of the Mexico City
Metro by the Directorate General of Transportation Works of the
Government of the Ciudad de Mexico, through an international
public bidding process. The consortium is headed by ICA
subsidiary Ingenieros Civiles Asociados, S.A. de C.V., with
Carso Infraestructura y Construcci¢n, S.A.B. de C.V. (CICSA) as
the construction partner and Alstom Mexicana, S.A. de C.V. as
the integrator for the electro-mechanical systems. The contract
in the amount of MXN15,290 million is expected to be signed in
the coming days.
The project will be constructed under a traditional public works
mechanism. Construction is expected to begin immediately and to
be completed in December 2011. The project includes the
construction of a new 24.4km Metro line that will link the
eastern and western parts of the city, from Tlahuac to Mixcoac.
Construction will take place in two phases. The first, running
from Tlahuac to Axomulco is expected to be put into service by
Dec. 31, 2010; the second, running from Axomulco to Mixcoac is
expected to be put into service by Dec. 31, 2011
Line 12 will have 21 stations: two terminals, four transfer
stations, and 15 other stations. The new line is expected to
connect to the existing 7, 3, 2 and 8 Metro lines. Once
completed, Line 12 would have a capacity to serve up to 412,000
passengers per day.
The Mexico City Metro is the fifth largest urban transport
system in the world, extending more than 200km on the current 11
lines.
Empresas ICA, S.A.B de C.V. -- http://www.ica.com.mx/-- the
largest engineering, construction, and procurement company in
Mexico, was founded in 1947. ICA has completed construction and
engineering projects in 21 countries. ICA's principal business
units include civil construction and industrial construction.
Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 20, 2007, Standard & Poor's Ratings Services affirmed its
'BB-' long-term corporate credit rating on Empresas ICA S.A.B.
de C.V. S&P said the outlook is stable.
FREESCALE SEMICONDUCTOR: Board OKs Executive Employment Deal
------------------------------------------------------------
The Compensation and Leadership Committee of the Board of
Directors of the Freescale Semiconductor Inc. authorized and
approved a form of Employment Agreement to be entered into with
certain senior executives, including certain named executive
officers. The Form Employment Agreement provides for the annual
base salary and initial target bonus for the executive on the
date the Employment Agreement is executed.
The Form Employment Agreement also provides that the executive
will be eligible to participate in any long-term incentive plans
or programs and welfare and other benefit plans established by
the Company for its senior officers generally.
The executive is also entitled to severance upon a qualifying
termination of employment. The severance prior to a change in
control is equal to the executive's pro-rated bonus plus two
times the executive's annual base salary if the executive is
terminated on or prior to Dec. 31, 2009; and one and a half
times the executive's annual base salary if the executive is
terminated on or after Jan. 1, 2010. Upon a qualifying
termination in connection with a change in control, the
executive is entitled to severance equal to the executive's pro-
rated bonus plus two times the executive's annual base salary
and target bonus.
In addition, the company will provide a gross-up payment to the
executive under certain circumstances with respect to excise
taxes resulting from parachute payments received by the
executive upon a qualifying termination following a change in
control.
The Form Employment Agreement also includes a release of claims
and non-competition and non-solicitation covenants by the
executive for a two-year period following termination of
employment with the company.
A full-text copy of the Form Employment Agreement is available
for free at http://ResearchArchives.com/t/s?2dc8
Headquartered in Austin, Texas, Freescale Semiconductor Inc.
(NYSE:FSL) -- http://www.freescale.com/-- designs and
manufactures embedded semiconductors for the automotive,
consumer, industrial, networking and wireless markets. It has
three business groups: transportation and standard products
group, networking and computing systems group, and wireless and
mobile solutions group. In December 2006, the company completed
its merger with an entity controlled by a consortium of private
equity funds led by The Blackstone Group, including The Carlyle
Group, funds advised by Permira Advisers LLC and Texas Pacific
Group.
In Latin America, the company has operations in Argentina,
Brazil and Mexico. In Europe, the company has operations in
Czech Republic, France, Germany, Ireland, Italy, Romania, Turkey
and the United Kingdom. Freescale is one of the world's largest
semiconductor companies with 2007 sales of US$5.7 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2008, Fitch Ratings revised the rating outlook on
Freescale Semiconductor Inc. to negative from stable and
affirmed these ratings: (i) issuer default rating at 'B+'; (ii)
senior secured bank revolving credit facility at 'BB+/RR1';
(iii) senior secured term loan at 'BB+/RR1'; (iv) senior
unsecured notes at 'B/RR5'; and (v) senior subordinated notes at
'CCC+/RR6'.
SHARPER IMAGE: Seeks to Extend Plan Filing Date to Sept. 16
-----------------------------------------------------------
Since the Petition Date, The Sharper Image Corp. has worked
diligently on a number of time-consuming tasks necessary to the
administration of its Chapter 11 case, including:
* obtaining debtor-in-possession financing;
* commencing and continuing going-out-of-business or
store closing sales at nearly all of its 184 store
locations;
* rejecting burdensome leases;
* preparing schedules of assets and liabilities and
statements of financial affairs;
* implementing an amended severance program for the benefit
of the Debtor's non-management employees;
* addressing demands from employees, vendors, taxing
authorities, utility companies, gift card holders and
other customers, landlords, and other parties-in-interest;
* working with the office of the United States Trustee to
provide requested financial information and comply with
reporting requirements under the Bankruptcy Code;
* marketing the business and negotiating with various
parties-in-interest through an arduous auction and sale
process; and
* consummating a sale of substantially all of its assets.
Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice,
PLLC, in Wilmington, Delaware, relates that although the Debtor
has made substantial progress advancing the Chapter 11 case and
maximizing value for the benefit of its estate and creditors, it
needs additional time to, among other things, liquidate its
remaining assets in a manner that will maximize value of the
assets for the benefit of the estate and creditors.
Mr. Kortanek notes that since the Petition Date, the Debtor has
attempted to quantify the amount of existing administrative,
priority, and unsecured claims against the estate, and the
Debtor will require additional time to review and analyze the
validity, amount, and priority of those claims.
In light of these ongoing efforts, Mr. Kortanek continues,
additional time is needed to develop and negotiate a plan of
liquidation and a disclosure statement that contains adequate
information under Section 1125 of the Bankruptcy Code.
"The Debtor only recently obtained approval of the Sale [of its
Assets] and has worked expeditiously towards closing," Mr.
Kortanek maintains. "The extension [of the exclusive plan
filing period] . . . will provide Sharper Image and its
advisors with the opportunity to analyze Sharper Image's post-
Sale financial circumstances and develop a plan that provides
for the expeditious conclusion of the chapter 11 case."
Section 1121(b) of the Bankruptcy Code provides for an initial
period of 120 days after the commencement of a chapter 11 case
during which a debtor has the exclusive right to propose and
file a chapter 11 plan. Section 1121(c)(3) provides that, if a
debtor files a plan within the 120-day Plan Period, it has a
period of 180 days after the commencement of the case to obtain
acceptance of that plan, during which time competing plans may
not be filed.
Mr. Kortanek reminds the Court that pursuant to Section 1121(d),
the Court may extend a debtor's Exclusive Periods for cause, if
the initial 120-day and 180-day Exclusive Periods provided for
prove to be an unrealistic time frame for proposal and
solicitation of a plan.
By this motion, the Debtor asks the Court to extend the
exclusive period during which it may file a Plan through and
including Sept. 16, 2008, and the period during which it may
solicit acceptances of the plan through and including November
15.
"Sharper Image is not seeking an extension of the Exclusive
Periods to delay creditors or force them to accede to its
demands," Mr. Kortanek explains. "Sharper Image and its
professionals have consistently conferred with and involved the
Statutory Creditors' Committee, the DIP Lender, the United
States Trustee and other parties in interest in all major
substantive and administrative matters in this case."
Extension of the Exclusive Periods will also increase the
likelihood of a greater distribution to the Debtor's
stakeholders by facilitating an orderly, efficient and cost-
effective plan process for the benefit of all creditors, Mr.
Kortanek contends. Termination of the Exclusive Periods, on the
other hand, could give rise to the threat of multiple plans and
a contentious confirmation process resulting in increased
administrative expenses and consequently diminishing returns to
creditors, he says.
About Sharper Image
Based in San Francisco, California, Sharper Image Corp. --
http://www.sharperimage.com/-- is a multi-channel specialty
retailer. It operates in three principal selling channels: the
Sharper Image specialty stores throughout the U.S., the Sharper
Image catalog and the Internet. The company has operations in
Australia, Brazil and Mexico. In addition, through its Brand
Licensing Division, it is also licensing the Sharper Image brand
to select third parties to allow them to sell Sharper Image
branded products in other channels of distribution.
The company filed for Chapter 11 protection on Feb. 19, 2008
(Bankr. D.D., Case No. 08-10322). Steven K. Kortanek, Esq. at
Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the
Debtor in its restructuring efforts. An Official Committee of
UnsecuredCreditors has been appointed in the case. Whiteford
Taylor Preston LLC is the Committee's Delaware counsel
When the Debtor filed for bankruptcy, it listed total assets of
US$251,500,000 and total debts of US$199,000,000. The Debtors'
exclusive period to file a plan expires on June 18, 2008.
(Sharper Image Bankruptcy News, Issue No. 14; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
SHARPER IMAGE: Proposes to Set Aug. 18 as Claims Bar Date
---------------------------------------------------------
Pursuant to Rule 3003(c)(3) of the Federal Rules of Bankruptcy
Procedure and Section 502(b)(9) of the Bankruptcy Code, The
Sharper Image Corp. asks the U.S. Bankruptcy Court for the
District of Delaware to establish August 18, 2008, 5:00 p.m.,
prevailing Pacific Time, as:
(i) the deadline for each person or entity to file proofs of
claim against the Debtor based on prepetition claims,
including claims asserted by holders of gift cards, gift
certificates, merchandise certificates, and reward cards
issued by Sharper Image Corporation; and
(ii) the last date and time for governmental units to file
proofs of claim against the Debtor.
Moreover, the Debtor asks the Court to approve its (a) proposed
Gift Certificate Proof of Claim Form, a specialized form of
proof of claim for claimants asserting Certificate Claims, (b)
proposed Bar Date notice, and (c) proposed notice and
publication procedure.
The Debtor asserts that each person or entity that asserts a
claim that arose prior to the Petition Date must file an
original, written proof of claim that substantially conforms to
Official Bankruptcy Form B10 or to the Gift Certificate Proof of
Claim Form, so as to be received on or before the Bar Date by
the Debtor's court-approved claims agent, Kurtzman Carson
Consultants LLC. KCC will not accept proofs of claim sent by
facsimile, telecopy, or electronic mail transmission.
The Debtor proposes that these individuals or entities will not
be required to file a claim on or before the Claims Bar Date:
* any person or entity whose claim is listed on the Debtor's
schedules of assets and liabilities and (i) whose claim is
not described as disputed, contingent, or unliquidated, and
(ii) who does not dispute the amount or nature of the claim
as set forth in the Schedules;
* any person or entity having a claim under Sections 503(b)
or 507(a) of the Bankruptcy Code as an administrative
expense;
* any person or entity whose claim has been paid in full;
* any person or entity that holds an interest in the Debtor,
provided, however, that interest holders who wish to assert
claims that arise out of or relate to the ownership or
purchase of an interest, must file proofs of claim on or
before the applicable Bar Date, unless another exception
applies;
* any person or entity that holds a claim that has been
allowed by an order of the Court entered on or before the
applicable Bar Date;
* any holder of a claim for which a separate deadline is
fixed by the Court; and
* any holder of a claim that has properly filed, with the
Clerk of the Court or with KCC, a proof of claim utilizing
a claim form which substantially conforms to the General
Proof of Claim Form.
Any person or entity that holds a claim that arises from the
rejection of an executory contract or unexpired lease must file
a proof of claim based on the rejection by the later of (i) the
applicable Bar Date, and (ii) the date that is 30 days after the
effective date of the rejection, to have any right to
participate in the Debtor's estate.
Any holder of a claim who is required, but fails, to file a
proof of claim in accordance with the Bar Date Order on or
before the applicable Bar Date will be forever barred, estopped
and enjoined from asserting the claim, and the Debtor and its
property will be forever discharged from any and all
indebtedness or liability with respect to the claim.
Moreover, the holder will not be permitted to vote to accept or
reject any plan of liquidation filed in the Chapter 11 case,
participate in any distribution in the Chapter 11 case on
account of the claim, or receive further notices regarding the
claim.
The Debtor proposes to mail a bar date notice, and a General
Proof of Claim Form to:
(a) the U.S. Trustee;
(b) attorneys for the Creditors' Committee;
(c) all known holders of claims listed on the Schedules at
their stated addresses;
(d) all parties known to the Debtor as having potential
claims against its estate;
(e) all counterparties to the Debtor's executory contracts
and unexpired leases listed on the Schedules;
(f) all parties to litigation with the Debtor; and
(g) all parties who have requested notice.
The Debtor will mail a Bar Date Notice and a Gift Certificate
Proof of Claim Form to each person or entity asserting
Certificate Claims and for which KCC has been provided an
address. However, KCC will not mail a Bar Date Notice and Gift
Certificate Proof of Claim Form to those persons or entities
asserting Certificate Claims who have already properly filed a
proof of claim substantially in the form of Official Bankruptcy
Form B1O. Those persons or entities are not required to re-file
a proof of claim.
To the extent the Gift Certificate Proof of Claim Form is
approved by the Court, KCC will prominently display the Gift
Certificate Proof of Claim Form on KCC's Web site. Those
asserting Certificate Claims may also obtain Gift Certificate
Proof of Claim Forms from the Debtor.
Additionally, the Debtor proposes to publish the Bar Date Notice
once in The New York Times, and The Wall Street Journal at least
25 days prior to the Bar Date.
A full-text copy of the proposed Gift Certificate Proof of Claim
is available for free at:
http://bankrupt.com/misc/SI_GiftCertificateClaim.pdf
A full-text copy of the proposed Bar Date notice is available
for free at:
http://bankrupt.com/misc/SI_BarDateNotice.pdf
About Sharper Image
Based in San Francisco, California, Sharper Image Corp. --
http://www.sharperimage.com/-- is a multi-channel specialty
retailer. It operates in three principal selling channels: the
Sharper Image specialty stores throughout the U.S., the Sharper
Image catalog and the Internet. The company has operations in
Australia, Brazil and Mexico. In addition, through its Brand
Licensing Division, it is also licensing the Sharper Image brand
to select third parties to allow them to sell Sharper Image
branded products in other channels of distribution.
The company filed for Chapter 11 protection on Feb. 19, 2008
(Bankr. D.D., Case No. 08-10322). Steven K. Kortanek, Esq. at
Womble, Carlyle, Sandridge & Rice, P.L.L.C. represents the
Debtor in its restructuring efforts. An Official Committee of
UnsecuredCreditors has been appointed in the case. Whiteford
Taylor Preston LLC is the Committee's Delaware counsel
When the Debtor filed for bankruptcy, it listed total assets of
US$251,500,000 and total debts of US$199,000,000. The Debtors'
exclusive period to file a plan expires on June 18, 2008.
(Sharper Image Bankruptcy News, Issue No. 14; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
===========
P A N A M A
===========
BANCO INTERNACIONAL: Moody's Puts Ba1 Rating on Foreign Deposits
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating on its
global scale to the foreign currency deposits of Banco
Internacional de Costa Rica, SA. Moody's also assigned a D bank
financial strength rating. All ratings have a stable outlook.
The D BFSR for Banco Internacional is based on the bank's
established brand name within the niche markets in which it
operates, namely international banking and trade finance within
Panama, Costa Rica, and other Central American countries. The
BFSR also reflects the bank's modest profitability, which is
indicative of a franchise in transition, following the
relatively recent restructuring of the bank and the
reinforcement of its management team.
The bank's earnings capacity is at present limited given its
relatively small size and operating footprint of Central
America. Improving macroeconomic conditions in the context of
dynamic regional integration, however, support Banco
Internacional's growth and diversification potential, said
Moody's.
Moody's views as positive the changes to the bank's risk
management structure, including the centralization of credit
policies, procedures and oversight. However, the agency noted
that the risk infrastructure is yet to be tested in light of the
bank's new mandate to expand within the region. The analysts
also noted that as a sovereign-owned entity, and because of its
strong ties to its shareholder banks, Banco Internacional could
be subject to political influence in its asset allocation and
profitability targets.
Other challenges for Banco Internacional include the maintenance
of its good asset quality while further expanding its credit
business in high growth regional economies. Management plans to
increase its export-related lending in order to further mitigate
country risk. The bank is also planning to broaden and deepen
its funding access via debt issuances in order to reinforce its
long term funding profile and support its growth plans.
Banco Internacional's Ba1 deposit rating incorporates the
management and capital support of its two government-owned
shareholders, Banco de Costa Rica, with a 51% stake, and Banco
Nacional de Costa Rica, with 49%, as well as the endorsement of
the bank's strategic purpose of developing international
business on their behalf with Costa Rican and other Central
American companies.
The bank reported total assets of US$747.7 million, equity of
US$94.8 million, and net income of US$8.3 million as of Dec. 31,
2007.
These ratings were assigned to Banco Internacional de Costa
Rica, SA:
-- Long Term Foreign Currency Deposits: Ba1, with stable
outlook
-- Short Term Foreign Currency Deposits: Not Prime
-- Bank Financial Strength: D
Based in Panama City, Banco Internacional de Costa Rica SA (aka
BICSA) -- http://www.bicsapan.com/-- was established in 1976 to
serve as a financing vehicle for global trade of Central
American corporations. The bank's shareholders are Banco de
Costa Rica with 51% and Banco Nacional de Costa Rica with 49% of
the shares. Banco Internacional has an office with an
international banking license in Miami (BICSA Miami) that
accounts for 30% of total loans and half of the correspondent
banking business. It also has representative offices in
Guatemala, Nicaragua, El Salvador, and Costa Rica.
====================
P U E R T O R I C O
====================
LIN TV: Signs Retransmission Pact With Comcast Corporation
----------------------------------------------------------
LIN TV Corp. have entered into an agreement with Comcast
Corporation for the retransmission of LIN TV's broadcast
television stations' analog and digital signals. The agreement
covers broadcast television stations owned or operated by LIN TV
in 15 markets served by Comcast.
The retransmission agreement includes:
-- KRQE-TV, KASA-TV, KBIM-TV and KREZ-TV (Albuquerque);
-- WIVB-TV and WNLO-TV (Buffalo);
-- WDTN-TV (Dayton);
-- WANE-TV (Ft. Wayne);
-- WOOD-TV, WOTV-TV, WXSP-CA (Grand Rapids);
-- WLUK-TV (Green Bay);
-- WTNH-TV and WCTX-TV (Hartford-New Haven);
-- WISH-TV, WNDY-TV, WIIH-CA (Indianapolis);
-- WLFI-TV (Lafayette);
-- WALA-TV and WBPG-TV (Mobile);
-- WAVY-TV and WVBT-TV (Norfolk);
-- WPRI-TV and WNAC-TV (Providence);
-- WWLP-TV (Springfield);
-- WTHI-TV (Terre Haute) and WUPW-TV (Toledo).
"We are delighted to have reached this mutually beneficial
agreement with Comcast. Now that we have a solid long-term
carriage agreement in place, we can work on broadening and
deepening our relationship to meet the new complexities of the
digital world we cohabit," said Vincent L. Sadusky, president
and chief executive officer of LIN TV Corp. "The consumer
deserves and will demand nothing less."
In addition, LIN TV and Comcast will work together to build
awareness of the February 17, 2009 digital broadcast transition
in the Indianapolis, Hartford, Springfield, Albuquerque and
Grand Rapids DMAs.
About Comcast
Comcast Corporation (Nasdaq: CMCSA, CMCSK) --
http://www.comcast.com/-- is the nation's leading provider of
entertainment, information and communications products and
services. With 24.7 million cable customers, 14.1 million high-
speed Internet customers, and 5.2 million voice customers,
Comcast is principally involved in the development, management
and operation of broadband cable systems and in the delivery of
programming content.
Comcast's content networks and investments include E!
Entertainment Television, Style Network, The Golf Channel,
VERSUS, G4, PBS KIDS Sprout, TV One, ten Comcast SportsNet
networks and Comcast Interactive Media, which develops and
operates Comcast's Internet business. Comcast also has a
majority ownership in Comcast-Spectacor, whose major holdings
include the Philadelphia Flyers NHL hockey team, the
Philadelphia 76ers NBA basketball team and two large
multipurpose arenas in Philadelphia.
About LIN TV
Headquartered in Providence, Rhode Island, LIN Television Corp.
(NYSE: TVL) -- http://www.lintv.com/-- owns and operates 31
television stations in 18 mid-sized markets in the United States
and Puerto Rico. The company had US$866.4 million of debt as of
Sept. 30, 2007.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services affirmed its
ratings on LIN TV Corp., including the 'B+' corporate credit
rating, and revised the outlook to stable from negative.
=================
V E N E Z U E L A
=================
COCA-COLA FEMSA: Protest Cripples Venezuela Operations
------------------------------------------------------
Former transportation workers of Coca-Cola Femsa S.A.B. de C.V.
have blocked access to the Mexican bottler's four bottling
plants and 26 distribution centers in Venezuela, crippling its
operations there, James Sugett of Venezuelanalysis.com reports
According to the report, the ex-employees are asking Venezuela
President Hugo Chavez to intervene in a six-year dispute over
severance pay after the Supreme Court of Justice ruled favoring
the bottler.
The protesting workers allege that the company owes them a total
of VEF520 million (around US$242 million) in severance pay.
FEMSA, however, asserts that they are not obligated since the
ex-workers were never their employees but of Panamco, the prior
Coca-Cola concession holder.
The Supreme Court declared that the complaining workers' claims
do not have a legal basis and urged the workers to, among
others, dialogue with the company about the possibility of
moving forward on the construction of a socially satisfactory
solution.
According to Venezuelanalysis.com, the country's Labor Ministry,
on June 11, offered to assume mediation of the dispute and
called on the ex-workers to heed the Supreme Court's call to
dialogue.
Despite the Supreme Court's ruling, the former workers ask
President Chavez to decide either for or against them, the
report relates. The report quoted Oscar Ovalles, leader of the
National Coca-Cola Ex-Workers Front, as saying, "We ask [the
president] that by way of the media he tells us that we are
wrong and this way we will remain calm."
Headquartered in Santa Fe, Mexico, Coca-Cola Femsa S.A.B. de
C.V. -- http://www.coca-colafemsa.com/-- is a bottler of Coca-
Cola trademark beverages in Latin America. The company
produces, markets, and distributes Coca-Cola trademark
beverages, its own brands and brands licensed from third
parties. It has 30 bottling facilities in Latin America and
serves over 1,500,000 retailers in the region. In October 2007,
the company acquired 100% of shares of non-carbonated drinks
producer, Jugos del Valle S.A. de C.V.
* BOND PRICING: For the Week June 9 - June 13, 2008
---------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Alto Palermo SA 7.875 5/11/17 USD 72.67
Argnt-Bocon PR11 2.000 12/3/10 ARS 52.23
Argnt-Bocon PR13 2.000 3/15/24 ARS 50.74
Arg Boden 2.000 9/30/08 ARS 14.97
Bonar Arg $ V 10.500 6/12/12 ARS 69.27
Arg Boden 7.000 10/3/15 USD 72.27
Bonar X 7.000 4/17/17 USD 73.63
Argent-EURDIS 7.820 12/31/33 EUR 68.07
Argent-Par 0.630 12/31/38 ARS 30.48
Banco Macro SA 9.750 12/18/36 USD 70.08
Buenos Aire Prov 9.375 9/14/18 USD 72.50
Buenos Aire Prov 9.625 4/18/28 USD 69.75
BERMUDA
-------
XL Capital Ltd 6.500 12/31/49 USD 67.00
BRAZIL
------
CESP 9.750 1/15/15 BRL 66.04
CAYMAN ISLANDS
--------------
Shinsei Fin Caym 6.418 1/29/49 USD 69.14
Shinsei Fin Caym 6.418 1/29/49 USD 70.38
Shinsei Finance 7.160 7/29/49 USD 70.10
Vontobel Cayman 9.900 7/25/08 CHF 52.60
JAMAICA
-------
Jamaica Govt LRS 7.500 10/6/12 JMD 73.30
Jamaica Govt LRS 12.750 6/29/22 JMD 74.87
PUERTO RICO
-----------
Puerto Rico Cons. 5.900 4/15/34 USD 45.00
Puerto Rico Cons. 6.000 12/15/34 USD 34.25
Puerto Rico Cons. 6.300 11/1/33 USD 47.00
VENEZUELA
---------
Petroleos de Ven 5.250 4/12/17 USD 69.45
Petroleos de Ven 5.375 4/12/27 USD 58.32
Petroleos de Ven 5.500 4/12/37 USD 57.57
Venezuela 6.000 12/9/20 USD 68.90
Venezuela 7.000 3/31/38 USD 70.12
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Tara Eliza E. Tecarro, Sheryl Joy P. Olano,
Rizande de los Santos, and Pamella Ritah K. Jala, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are US$25 each. For
subscription information, contact Christopher Beard at
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* * * End of Transmission * * *