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/raid1/www/Hosts/bankrupt/TCRLA_Public/080806.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, August 6, 2008, Vol. 9, No. 155 Headlines A R G E N T I N A AES CORP: Will Focus on Getting Negev Solar Power Plant Licenses EMPRESA DISTRIBUIDORA: To Issue 2nd Qtr. 2008 Earnings on Aug. 8 FORD MOTOR: Reports Strong Sales for Focus Model FORD MOTOR: Fitch Chips Issuer Default Rating to 'B-' from 'B' B E R M U D A CHANNEL RE: Moody's Cuts Two Rock Trust Rating to Ba1 from A3 DICKSON GROUP: Proofs of Claim Filing Deadline Is Aug. 29 REFCO INC: Ex-CEO Phillip Bennett to Appeal 16-Year Prison Term SEA CONTAINERS: Accused by Asociacion Peruana of Misstatements B R A Z I L AMR CORP: Moody's Cuts Corporate Family Rating to Caa1 from B2 BANCO BRADESCO: Net Income Grows to BRL4.105BB in 1st Half 2008 BUCYRUS INT'L: Moody's Upgrades CF and Debt Ratings to Ba2 COMPANHIA ENERGITICA: Aneel Rejects Consorcio Jirau's Appeal TAM SA: To Initiate Lufthansa Codeshare Agreement on Aug. 18 TELE NORTE: To Raise BRL3 Billion to Close Brasil Telecom Buyout TELE NORTE: Net Income Drops to BRL249 Million in Second Quarter SHARPER IMAGE: Court OKs Termination of Rockefeller Center Lease SHARPER IMAGE: EVP/CFO May Get US$250,000 Under Incentive Plan SHARPER IMAGE: Trade Creditors Sell Two Claims for US$397,594 USINAS SIDERURGICAS: Will Release 2Q 2008 Earnings on Aug. 14 C A Y M A N I S L A N D S ASTPHOENIX FUND: Deadline for Proofs of Claim Filing Is Aug. 8 BARATARIO LTD: Proofs of Claim Filing Deadline Is Until Aug. 8 COPPER ARCH: Deadline for Proofs of Claim Filing Is Aug. 8 COPPER ARCH FUND: Proofs of Claim Filing Is Until Aug. 8 FORT WASHINGTON: Proofs of Claim Filing Deadline Is Aug. 8 FRANJEAN AT SEA: Will Hold Final Shareholders Meeting on Aug. 8 GRANTCHESTER INVESTMENT: Final Shareholders Meeting Is on Aug. 8 HACHI HOLDINGS: Deadline for Proofs of Claim Filing Is Aug. 8 HEPTAGON LIMITED: Proofs of Claim Filing Deadline Is Aug. 8 J-BLUE SKY: Will Hold Final Shareholders Meeting on Aug. 8 KI SPECIALITY: Deadline for Proofs of Claim Filing Is Aug. 8 LOWE ENTERPRISES: Holds Final Shareholders Meeting on Aug. 8 OPUS SPECIAL OPPORTUNITIES: Claims Filing Deadline Is Aug. 8 OSAKI RESIDENTIAL: Proofs of Claim Filing Deadline Is Aug. 8 PARMALAT SPA: NY Court Confirms Settlement Class in Hermes Suit SILVER CREEK: Will Hold Final Shareholders Meeting on Aug. 8 SILVER CREEK LOW: Final Shareholders Meeting Is on Aug. 8 TSF NO. 7: Deadline for Proofs of Claim Filing Is Aug. 8 TREMONT DOUBLE: Sets Final Shareholders Meeting for Aug. 8 WATERFALL VANILLA: To Hold Final Shareholders Meeting on Aug. 8 C H I L E CLOROX COMPANY: Earns US$461 Million for Fiscal Year 2008 C O L O M B I A ECOPETROL: Net Income Up 176% to COP5.6-Bil. in First Half 2008 D O M I N I C A N R E P U B L I C TRICOM SA: Waived Attorney-Client Privilege, Bancredito Says TRICOM SA: Wants Exclusive Solicitation Extended to Dec. 31 * Fitch Says Dominican Electric Biz on a Brink of Financial Woe G U A T E M A L A BRITISH AIRWAYS: Fiscal 2008 First Quarter Profit Down 90.1% H O N D U R A S DIGICEL LTD: Wins WiMAX License in Honduras J A M A I C A CASH PLUS: Court Names Monty Kandekore as Provisional Liquidator M E X I C O ANIXTER INT'L: Acquires QSN Industries and Quality Screw Assets FRONTIER AIR: Gets Alternative Commitment for US$75MM DIP Loan MOVIE GALLERY: India-Based Valuable Group Purchases MovieBeam QUAKER FABRIC: Court Approves 2nd Amended Disclosure Statement REVLON INC: June 30 Balance Sheet Upside-Down by US$1.06 Billion SANLUIS CORP: Unit Launches New Quadratech Suspension System SEMGROUP LP: 18 Parties Balk at US$250,000,000 BofA DIP Loan P A N A M A HUNTSMAN CORP Lead Plaintiff Application Deadline is Sept. 15 P U E R T O R I C O CARIBBEAN RESTAURANTS: S&P Rates US$149 Mil. Senior Notes at B CENTENNIAL COMMUNICATIONS: Zacks Upgrading Shares to Hold T R I N I D A D & T O B A G O HINDU CREDIT: Liquidator Denies Asking Chief to Resume Control HINDU CREDIT: Assets May Be Liquidated Below Market Value HINDU CREDIT: Police Gets Information on Harry Harnarine V E N E Z U E L A HARVEST NATURAL: Moves 2Q 2008 Earnings Release Date Over Storm PETROLEOS DE VENEZUELA: Shuts Down Cardon Unit for Maintenance - - - - - ================= A R G E N T I N A ================= AES CORP: Will Focus on Getting Negev Solar Power Plant Licenses ---------------------------------------------------------------- AES Corporation has opted to focus on obtaining licenses for solar power plants rather than engage in the tender to build a solar energy power plant at Ashelim in the Negev, southern Israel, McClatchy-Tribune News Service reports. According to the report, the company had considered joining forces with a number of companies, including Arava Power Company, which plans to invest hundreds of millions of dollars in developing photovoltaic power plants. 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 more than 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 on May 16, 2008, Moody's Investors Service assigned a B1 rating to The AES Corporation's proposed issuance of US$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 was 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 stated 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. EMPRESA DISTRIBUIDORA: To Issue 2nd Qtr. 2008 Earnings on Aug. 8 ---------------------------------------------------------------- Empresa Distribuidora y Comercializadora Norte, a.k.a. Edenor, disclosed this webcast alert: What: Edenor S.A.'s second quarter 2008 Earnings Conference Call When: Aug. 8, 2008, at 10:00 am Eastern 11:00 AM (Argentina) Where: http://www.videonewswire.com/event.asp?id=50649 How: Log on to the web at the address above. Contact: Ivana Del Rossi Tel. Number: (54-11) 4346-5127 or Veronica Gysin Tel. Number: (54-11) 4346-5231 The conference call will be archived at: http://www.videonewswire.com/event.asp?id=50649 Based in Buenos Aires, Argentina, Empresa Distribuidora y Comercializadora Norte S.A. aka Edenor is the largest electricity distribution company in Argentina in terms of number of customers and volume of energy sold. The company commenced operations in 1992, as a result of the privatization of the previously state-owned SEGBA. At that time, it was granted a 95-year concession to distribute electricity on an exclusive basis in its concession area, the greater Buenos Aires metropolitan area and northern portion of the City of Buenos Aires. EASA, which is controlled by Dolphin Energia S.A., is Edenor's holding company. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 1, 2007, Standard and Poor's Argentina assigned its 'B' Rating on US$220 Million Bond issued by Empresa Distribuidora y Comercializadora Norte S.A with annual fixed interest rate of 10.5% Notes due 2017. S&P said the outlook is positive. FORD MOTOR: Reports Strong Sales for Focus Model ------------------------------------------------ Ford Motor Co.'s redesigned Focus continues to surprise auto industry watchers and customers alike with strong sales, revenue growth, fuel economy and industry-first technology, Ford said. While Ford and industry sales experienced a double-digit sales decline in July, Ford Focus sales climbed 16 percent versus a year ago. Year-to-date, Focus sales were up 26 percent, compared with industry-wide small car growth of approximately 9 percent. Focus has surprised in areas other than sales Transaction prices Year-to-date, Focus transaction prices have increased US$750 per unit compared with a segment-average increase of US$100. Customers are purchasing more equipment, including Ford SYNC, and higher series levels. Fuel Economy In an independent test conducted by Edmunds.com called the Gas- Sipper Smackdown, Focus achieved 37.5 mpg on the highway. Focus has EPA highway fuel economy of 35 mpg – better than the smaller 2008 Honda Fit and 2009 Nissan Versa SL. Cool Technology Focus was named one of Kelley Blue Book's 10 Coolest New Cars Under US$18,000 based on its safety, fuel economy, interior size, comfort, technology, fun-to-drive and the “decidedly subjective coolness factor”. “Focus continues to surprise and delight customers throughout the country, but the bombshell is in Texas, where Focus retail sales have almost doubled,” said Jim Farley, Ford, group vice president, Marketing and Communications. “If we can increase small car sales in Texas, we can increase them anywhere.” Year- to-date, Focus retail sales were up 91 percent in Texas and 46 percent nationwide. Total Ford, Lincoln and Mercury car sales were up 8 percent compared with a year ago. Consistent with industry trends, crossover vehicles -– which include Ford Escape, Edge and Flex –- were down 8 percent. Sport utility vehicles -– such as Ford Explorer and Expedition -– were down 54 percent, and trucks and vans -– including Ford F-Series and Econoline –- were down 18 percent. Overall, Ford, Lincoln and Mercury vehicle sales totaled 156,406 in July, down 13 percent versus a year ago; year-to-date sales totaled 1.265 million, also down 14 percent. Ford estimates industry-wide sales were down 11 percent year-to-date. “We expect the second half of 2008 will be more challenging than the first half as economic and credit conditions weaken,” said Mr. Farley. Ford's full-year industry sales forecast is a range from 14.0 – 14.5 million vehicles (including medium and heavy trucks). The first half sales rate was approximately 15 million. About Ford Motor Co Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. FORD MOTOR: Fitch Chips Issuer Default Rating to 'B-' from 'B' -------------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The rating outlook remains negative. The downgrade reflects these: -- The further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; -- Portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and --Escalating commodity costs that will remain a significant offset to cost reduction efforts. Negative cash flows and declining liquidity at Ford's automotive operations will accelerate in the second half of 2008, but liquidity is expected to be sufficient through 2009 to finance operating losses, working capital drains and restructuring efforts even in the event that 2009 industry sales remain flat with deeply depressed 2008 levels. Liquidity has declined sharply from US$36 billion at year-end 2007 to US$26 billion at the end of the second quarter, in part due to the US$4.5 billion funding of the UAW healthcare VEBA. Maturities are moderate over the next three years, and Ford maintains access to an US$11.5 billion revolving credit facility (maturing in 2011). Although the size of the facility could shrink modestly over the next several years commensurate with a declining borrowing base, unused capacity provides a liquidity cushion in the event the North American market downturn is longer or deeper than projected. Ford has moderated its growth in debt through a cash contribution to fund its initial VEBA agreement, and several cooperative equity-for debt swaps. Recent actions regarding equity dilution improve the likelihood and amount of potential equity-linked, capital-raising efforts. Fitch's IDR for Ford Credit is the same as that of Ford, given the close business relationship between the two companies. Fitch notes that while Ford and Ford Credit have a profit maintenance agreement in place, Ford Credit did not enforce the agreement in the second quarter and Fitch does not attach any importance to this agreement since it lacks third party creditor rights. Fitch is maintaining its two notch differential between the Ford Credit's IDR and senior debt due to Fitch's continued view of ultimate recovery between 71%-90%, although Fitch believes potential recoveries are at the lower end of this range. Fitch remains concerned with increasing default rates and higher severity of losses on retail and lease contracts. The company's second-quarter loss was primarily the result of a US$2.1 billion residual value impairment. While this reflects the rapid deterioration in residual values to date, particularly for truck and SUVs, FMCC may incur incremental impairments if residual values continue to decline. As a result of these factors, Fitch does not anticipate that Ford Credit will pay dividends to Ford. Further deterioration in loan and lease portfolios, or in performance of auto loan securitizations, could further limit Ford's ability to provide competitive financing. Lack of economic access to the securitization market, resulting from weaker loan performance and nervous capital markets, could result in a review of the rating. The most recent spike in gas prices has resulted in plummeting U.S. industry sales and sharply declining residual values of SUV's and pickups. Ford has been actively cutting production in an attempt to manage inventories and incentive levels, but cost reductions have not been able to keep pace. A pull back from leasing, although potentially prudent in the long-term, will result in a further step-down in sales volumes and production as higher incentives or third-party financing are unlikely to fill the gap in the short term. Second-quarter deliveries fell 17% in North America, leading to a 25% sales decline. At the smaller end of its product lineup, sales volumes of the Focus, Fusion and Escape have held up relatively well. Ford's European operations continue to perform well, with healthy growth in profitability driven by well- received product introductions and cost improvements, although weakening economic conditions are expected to moderate near term results. Ford has also benefited from strong growth in its Latin American markets. Improving quality has also been a positive. The rise in commodity costs has been a well-known contributor to margin deterioration for the past several years, limiting the impact of Ford's extensive cost-cutting efforts. Fitch had expected commodity cost increases to moderate in 2008, allowing more of the restructuring benefits to be realized, but this has not been the case. Due to surcharges being implemented across a number of products, the flow-through of price increases in oil- based products and the timing of contract renewals, the impact of commodity price increase is expected to sharply accelerate over the next 18 months. Factors that could result in a downgrade include: -- an expectation by Fitch that Ford's cash level would fall below US$12 billion; -- lack of economic access to the securitization market; and -- lack of execution on near-term cost, margin and product plans. In 2010, Ford is expected to realize the benefits from the UAW healthcare agreement, as well as an eventual upturn in U.S. industry sales. Ford remains highly exposed to the pickup truck market, and is unlikely to reverse negative cash flows until the U.S. pickup truck market reverses -- at which point Ford will have its updated F-Series product on the market. Ford also provided details on its longer-term product plans for the U.S., with an aggressive push into smaller vehicles through plant retoolings and the introduction of six European products into the United States. Risks remain that these products will not be well received, but early reviews of the Fiesta (coming to the U.S. market in 2010) and product commonality/manufacturing experience should reduce production risks. These rating actions have been taken: Ford Motor Co. -- Long-term IDR to 'B-' from 'B'; -- Senior secured credit facility to 'BB-/RR1' from 'BB/RR1'; -- Senior secured term loan to 'BB-/RR1' from 'BB/RR1'; -- Senior unsecured to 'CCC+/RR5' from 'B-/RR5'. Ford Motor Co. Capital Trust II -- Trust preferred stock to 'CCC/RR5' from 'CCC+/RR6'. Ford Holdings, Inc. -- Long-term IDR to 'B-' from 'B'; -- Senior unsecured to 'CCC+/RR5' from 'B-/RR5'. Ford Motor Co. of Australia -- Long-term IDR to 'B-' from 'B'; -- Senior unsecured to 'CCC+/RR5' from 'B-/RR5'. Ford Motor Credit Company LLC -- Long-term IDR to 'B-' from 'B'; -- Short-term IDR at 'B'; -- Senior unsecured to 'B+/RR2' from 'BB-/RR2'; -- Commercial paper at 'B'. FCE Bank Plc -- Long-term IDR to 'B-' from 'B'; -- Senior unsecured to 'B+'/RR2' from 'BB-/RR2'; -- Short-term IDR at 'B'; -- Commercial paper at 'B'; -- Short-term deposits at 'B'. Ford Capital B.V. -- Long-term IDR to 'B-' from 'B'; -- Senior unsecured to 'B+/RR2' from 'BB-/RR2'. Ford Credit Canada Ltd. -- Long-term IDR to 'B-' from 'B'; -- Short-term IDR at 'B'; -- Commercial paper at 'B'; -- Senior unsecured to 'B+/RR2' from 'BB-/RR2'. Ford Credit Australia Ltd. -- Long-term IDR to 'B-' from 'B'; -- Short-term IDR at 'B'; -- Commercial paper at 'B'. Ford Credit de Mexico, S.A. de C.V. -- Long-term IDR to 'B-' from 'B'. Ford Credit Co S.A. de CV -- Long-term IDR to 'B-' from 'B'; -- Senior unsecured to 'B+/RR2' from 'BB-/RR2'. Ford Motor Credit Co. of New Zealand -- Long-term IDR to 'B-' from 'B'; -- Senior unsecured to 'B+/RR2' from 'BB-/RR2'; -- Short-term IDR at 'B'; -- Commercial paper at 'B'. Ford Motor Credit Co. of Puerto Rico, Inc. -- Short-term IDR at 'B'. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin-American regions, including Argentina and Brazil. ============= B E R M U D A ============= CHANNEL RE: Moody's Cuts Two Rock Trust Rating to Ba1 from A3 ------------------------------------------------------------- Moody's Investors Service has downgraded to Baa1, from Aa3, the insurance financial strength rating of Channel Reinsurance Ltd. In the same rating action, Moody's also downgraded the rating of Two Rock Pass Through Trust, a related contingent capital facility to Ba1 from A3. The rating action reflects Moody's views on Channel Re's overall credit profile in the current environment, including increased expected and stress loss projections among its mortgage-related risk exposures relative to previous estimates, and significantly constrained new business prospects. The outlook for the ratings is negative, reflecting uncertainty regarding ultimate performance of mortgage-related CDO exposures, and Channel Re's strategic options that could be pursued by the company if the weak new business environment persists. Moody's said that its assessment of Channel Re's franchise value and financial flexibility have weakened significantly in the current environment. Channel Re has written little new business in the last few months as market perceptions about its only primary client, MBIA, have been adversely affected due to concerns about the ultimate performance of MBIA's mortgage related exposures. If business volumes continue to remain weak, Channel Re's investors could decide to reconsider their long term commitment to the financial guaranty reinsurance business, potentially resulting in a change in strategy or a downsizing of the firm's capital base going forward. In this context, however, Moody's notes that Channel Re provides collateral protection to MBIA through its New York regulatory 114 trust and supplemental trust accounts. Together, these two trust accounts hold a large portion of the company's assets, and any alternate capital plan pursued by the company would be, to a great extent, affected by the structural features provided through these agreements. Moody's has re-estimated expected and stress loss projections on Channel Re's insured portfolio, focusing on the company's mortgage-related ABS CDO exposures as well as other sectors of the portfolio potentially vulnerable to deterioration in the current environment. Based on Moody's revised assessment of the risks in Channel Re's portfolio, estimated stress-case losses would approximate US$780 million at the Aa3 threshold and US$630 million at the Baa1 threshold. This compares to Moody's estimate of Channel Re's claims paying resources of approximately US$959 million. Moody's noted that its stress case estimates for Channel Re's ABS CDO exposures increased by roughly US$150 million to US$377 million. Relative to Moody's 1.3 “target” level for capital adequacy, Channel Re is currently US$55 million below the Aa3 target level and is US$140 million above the Baa1 target level. Moody's notes that, beyond Channel Re's affected mortgage related exposures, portfolio risks appear to be well contained as reflected in its low risk municipal portfolio and structured risks with high underlying ratings. Most structured finance sectors outside of residential mortgage products are performing well, although certain exposures, such as some commercial real estate CDOs, because of their leveraged structure and sector concentration, may be more sensitive to severe economic or sector deterioration. Moody's also commented that risk concentrations due to large transaction sizes is a meaningful issue for Channel Re in some segments such as commercial real estate CDOs. Moody's will continue to evaluate Channel Re's ratings in the context of the future performance of the company's mortgage related exposures relative to expectations and resulting capital adequacy levels. Moody's will also monitor other developments at the company including any strategic options pursued by management in response to the weak demand conditions. These ratings have been downgraded: Channel Reinsurance Ltd. -- insurance financial strength to Baa1, from Aa3; and Two Rock Pass Through Trust -- contingent capital securities to Ba1, from A3. Channel Reinsurance Ltd. is a Bermuda-based financial guaranty reinsurance company that was established in 2004 to provide reinsurance capacity to MBIA Insurance Corporation (MBIA). The company's investors include MBIA, Koch Financial, Partner Reinsurance Company Ltd. and Renaissance Re Holding Ltd. DICKSON GROUP: Proofs of Claim Filing Deadline Is Aug. 29 --------------------------------------------------------- Creditors of Dickson Group Holdings Limited, which is now under a Scheme of Arrangement pursuant to Section 99 of the Companies Act 1981, must send their names, addresses, and proofs of debts or claims as of Dec. 18, 2006, and the names and addresses of their solicitors, if any, to the Joint and Several Scheme Administrators of the Scheme of Arrangement by 5:00 p.m. on Aug. 29, 2008. Creditors who fail to do so will be excluded from the benefit of any distribution. The Joint and Several Scheme Administrators can be reached at: Stephen Liu Yiu Keung Chan Wai Hing 18/F, Two International Finance Centre 8 Finance Street Central Hong Kong REFCO INC: Ex-CEO Phillip Bennett to Appeal 16-Year Prison Term --------------------------------------------------------------- Phillip R. Bennett, former CEO, chairman, and controlling shareholder of Refco Inc., will appeal his 16-year prison term at the U.S. District Court for the Southern District of New York in Manhattan. As reported in the TCR-Europe on July 9, 2008, Judge Naomi R. Buchwald sentenced Mr. Bennett after he pleaded guilty of defrauding Refco investors out of US$2.4 billion. Mr. Bennett was accused of hiding Refco's true financial position from investors by moving more than US$1,000,000,000 in debt off the company's books to Refco Group Holdings Inc, a privately held entity owned by Mr. Bennett. Mr. Bennett admitted that he conspired with other unnamed Refco executives to conceal the size of Refco's liabilities, and said he deceived his auditors, investors and lenders. Mr. Bennett remains at his home in Somerset County, New Jersey under electronic monitoring. Mr. Bennett has been out on a US$50,000,000 bail after his arrest in 2005, and is expected to report to prison on Sept. 4, 2008. About Refco 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, Issue No. 85; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Accused by Asociacion Peruana of Misstatements -------------------------------------------------------------- An interested non-profit party in Sea Containers Ltd. and its debtor-affiliates' Chapter 11 cases accused the Debtors of misstatements regarding to certain prepetition transfers. Ferrocarril Transandino S.A. was incorporated in 1999 by Sea Containers Ltd. and Peruval Corp. S.A., with both companies owning 50% of Transandino. In March 2006, SCL transferred a 20% interest in Transandino to its former subsidiary, Orient-Express Hotels Ltd. Subsequently, before its bankruptcy filing on Oct. 15, 2006, SCL transferred its remaining 30% in Transandino to Orient-Express. In a notice filed with the U.S. Bankruptcy Court for the District of Delaware, the Asociacion Peruana de Operadores Ferrocarriles de Peru, also known as Asociacion Peruana de Operadores Ferroviarios, notified creditors in the bankruptcy cases that it has become aware of a potential avoidance action relating to certain prepetition transfers by SCL of its interest in Transandino to Orient-Express. The Asociacion Peruana is a non-profit association formed by Peruvian railroad companies to promote fair competition in Peru's railroad business. “Because the Asociacion has reason to believe that (i) [SCL] did not receive reasonably equivalent value in connection with the Transfers and (ii) [SCL] has misstated certain facts relating to the Transfers, it feels duty-bound to notify the Debtor's creditors of the facts upon which its belief is based,” James M. Sullivan, Esq., at McDermott Will & Emery LLP, in New York, told Judge Carey. In its statement of financial affairs filed with the Court, SCL asserted that its ownership interest in Transandino ended in November 2005, which appears to be incorrect, Mr. Sullivan said. He noted that the SOFA did not disclose what, if any, consideration SCL received in connection with the Transfers. Mr. Sullivan related that the Asociacion was unable to find any disclosure of the consideration paid in Orient-Express' public filings with the Securities Exchange Commission. However, based on a report issued by Supervisory Board for Investment in Public Transport Infrastructure in June 2007, the Asociacion believes that the first 20% interest in Transandino transferred to Orient-Express could have been sold for more than the face value of the shares. The face value of those shares equaled approximately US$532,859. The OSITRAN Report disclosed that Transandino's total net worth was 10,322,000 Nuevos Soles, or US$3,664,832 in 2005, and 16,049,000 Nuevos Soles, or US$5,698,206 in 2006. According to the SOFA, the Debtor sold its remaining interest in Orient-Express to a group of financial institutions in two separate transactions on March 15 and Nov. 17, 2005, Mr. Sullivan noted. Although it appears that the Debtor sold its shares in Orient-Express before the Transfers occurred, he argued that evidence exists that SCL and Orient-Express were insiders at the time of the Transfers. In a letter sent by Transandino to OSITRAN on May 3, 2006, seeking OSITRAN's approval of the first Transfer, Transandino stated that the transfer of SCL's interest gradually began in 2002, at a time when Orient-Express was SCL's subsidiary, Mr. Sullivan said. He pointed out that the May 3 Letter cited an example of the gradual assignment of personnel that SCL had originally assigned to Transandino to Orient-Express. He added that letter also disclosed that SCL and Orient-Express shared common managers and personnel, including: (a) John D. Campbell, a director of Orient-Express since 1994, and has served as SCL's director; (b) James Sherwood, president of Orient-Express and a director since 1994, served as SCL's director from 1974 through March 20, 2006, when the first Transfer occurred, and served as SCL's president until Jan. 5, 2006; and (c) Edwin S. Hetherington, secretary of Orient-Express since 1994, and has served as SCL's vice president, general counsel, and secretary. Because the Asociacion felt duty-bound to report the facts surrounding the Transfers to SCL's creditors and the Bankruptcy Court, it sent a letter to Judge Carey and the Office of the U.S. Trustee on Feb. 7, 2008, Mr. Sullivan disclosed. The letter, however, was not filed on the Court's docket or distributed to creditors. Hence, the Asociacion filed the notice. “Given the significant value of the Transandino shares, the failure by [SCL] and Orient-Express to disclose the consideration paid for such shares, and the close relationship between [SCL] and Orient-Express, creditors may wish to investigate the matter to obtain detailed information about the Transfers and determine whether reasonably equivalent value was paid for the shares,” Mr. Sullivan stated. About Sea Containers Based in Hamilton, Bermuda, Sea Containers Ltd. -- http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda, the company has regional operating offices in London, Genoa, New York, Rio de Janeiro, Sydney, and Singapore. The company is owned almost entirely by United States shareholders and its primary listing is on the New York Stock Exchange (SCRA and SCRB) since 1974. On Oct. 3, the company's common shares and senior notes were suspended from trading on the NYSE and NYSE Arca after the company's failure to file its 2005 annual report on Form 10-K and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities and Exchange Commission. Through its GNER subsidiary, Sea Containers Passenger Transport operates Britain's fastest railway, the Great North Eastern Railway, linking England and Scotland. It also conducts ferry operations, serving Finland and Estonia as well as a commuter service between New York and New Jersey in the U.S. Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers disclosed total assets of US$62,400,718 and total liabilities of US$1,545,384,083. The Debtors filed their joint Chapter 11 plan of reorganization and disclosure statement on July 31, 2008. (Sea Containers Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) =========== B R A Z I L =========== AMR CORP: Moody's Cuts Corporate Family Rating to Caa1 from B2 -------------------------------------------------------------- Moody's Investors Service has downgraded the Corporate Family and Probability of Default Ratings of AMR Corp. and its subsidiaries to Caa1 from B2, and lowered the ratings of its outstanding corporate debt instruments and certain equipment trust certificates and Enhanced Equipment Trust Certificates of American Airlines Inc. The company's Speculative Grade Liquidity Rating of SGL-3 was affirmed. The rating outlook is negative. The rating actions reflect Moody's view of increased credit risk as large operating losses combined with particularly sizeable calls on cash for debt maturities and other requirements could erode the company's financial strength over the coming year. Despite some recent moderation in fuel costs and the benefit of capacity reductions and other management initiatives, Moody's believes that AMR could experience further losses during the near term. With US$5.1 billion of unrestricted cash and marketable securities, an undrawn US$255 million revolving credit facility, and considerable amounts of unencumbered assets AMR has flexibility to address the current challenging business environment. Yet, continued losses combined with material debt maturities between now and 12/31/09, large scheduled aircraft deliveries (some portion of which could be financed externally) and the potential for a significant increase in cash holdbacks by credit card processors, AMR's liquidity could be considerably reduced over the coming year. The rating action reflects Moody's view that the likelihood of continuing losses and eroding balance sheet strength at AMR are suggestive of an elevated risk profile that is consistent with a Caa1 rating at this time. As the largest U.S. airline, AMR possesses important competitive advantages including its strong brand recognition, a large domestic and international route network, well established hub markets, and good alliance partners, including its participation in the one world alliance. AMR was one of only two major U.S. carriers that did not resort to a bankruptcy restructuring during the 2000 -- 2004 industry downturn. While it did achieve significant cost reductions during that time period, it continues to have a higher level of indebtedness than many of its peers and its non-fuel costs are above those of many domestic airlines partly due to fleet age and the full consolidation of its regional airline subsidiary, American Eagle. With a large portion of its narrow body fleet composed of less fuel efficient MD80 aircraft, AMR's earnings are particularly susceptible to the current environment of elevated fuel costs. Like many airlines, AMR has announced aggressive actions to reduce mainline domestic capacity by approximately 5.7% in 2008 compared to 2007. This capacity reduction will involve the idling of over 30 MD80 aircraft which should help to reduce operating costs. The capacity reductions, in conjunction with similar cuts by other airlines should contribute to improved ticket pricing. AMR is also taking other actions to reduce costs, enhance productivity and improve passenger yields, and the company maintains a fuel hedging program that provides some short term benefit from fuel costs. Yet with a weakening economic outlook, Moody's is not certain that these actions will be sufficient to stem cash losses. With the potential for further losses, and meaningful calls on cash for debt maturities and other needs, AMR's sizeable cash balance could begin to erode over the coming year. The company faces meaningful debt maturities for the balance of 2008 and an additional US$1.2 billion during 2009. Capital spending requirements for new aircraft deliveries alone will likely exceed US$1 billion over this time period, and because of the significant improved fuel efficiency offered by modern aircraft Moody's anticipates that AMR will continue to purchase new aircraft. Aircraft financing markets remain reasonably strong and should allow AMR to finance at least some portion of these deliveries. Nonetheless, capital spending could pose a call on cash over the coming year. The company could also face cash calls associated with planned workforce reductions and seasonal working capital requirements as the air traffic liability reverses, and becomes a cash use during the seasonally weaker winter months. AMR's credit card processing banks require the company to comply with a matrix of financial metrics that includes minimum unrestricted cash and a fixed charge coverage ratio. Although there is no holdback currently imposed by AMR's credit card processing banks, the credit card processors could impose holdbacks soon as late this year. The holdback could increase further during 2009, which would pose a significant additional call on cash. The SGL-3 Speculative Grade Liquidity Rating considers that with US$5.1 billion of unrestricted cash and an undrawn US$255 million revolving credit facility, AMR has meaningful financial flexibility to address the current challenging industry conditions. However, the prospects for this liquidity to erode over the course of the coming year, limit the rating at the SGL- 3 level. AMR also has a sizeable amount of unencumbered assets and continues to pursue initiatives to enhance its liquidity through additional financings, sale leaseback transactions and asset sales. Yet, Moody's notes that AMR, which in the first quarter of 2008 announced plans to divest its American Eagle regional airline subsidiary, has placed this effort on hold until market conditions stabilize. The rating actions on AMR's EETCs consider the underlying Caa1 Corporate Family rating, the continuing availability of liquidity facilities to meet interest payments for 18 months in the event of a default by AMR, and the asset values of specific aircraft which comprise the collateral pool for the EETCs. The ratings on the senior certificates of the 2001-2 and 2003-1 EETCs reflect that they are supported by policies issued by monoline insurance companies. With respect to ETC transactions, Moody's notes that in many cases these instruments are secured by MD80 aircraft whose values have deteriorated considerably as this aircraft type is likely to become a smaller part of airline fleets due to its relative cost inefficiencies. The negative outlook considers the potential for continued deterioration in AMR's key credit metrics, such as interest coverage and leverage, due primarily to high fuel costs and a weak domestic demand environment. Although load factors remain strong and Moody's believes AMR may have the ability to obtain premium revenues due to its strong brand, fare increases are unlikely to fully offset the impact of elevated fuel costs. AMR's plan to reduce capacity in the fall should allow the company to raise fares in the near term but unless fuel costs decline the company is likely to continue to sustain further losses. AMR's rating could be lowered if the company is unable to reverse operating losses and restore cash flow and financial metrics, or if weak operating conditions or increased holdback requirements from credit card processors further constrain available liquidity. AMR's rating outlook could be stabilized with sustained increases to revenues or reduced non-fuel costs, or a sustained decline in fuel costs that increases cash flow from operations and enables the company to satisfy maturing debt and capital spending requirements from existing cash reserves and cash from operations. Downgrades: Issuer: AMR Corporation -- Probability of Default Rating, Downgraded to Caa1 from B2 -- Corporate Family Rating, Downgraded to Caa1 from B2 -- Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to Caa2 from Caa1 -- Senior Unsecured Medium-Term Note Program, Downgraded to Caa2 from Caa1 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 from Caa1 -- Senior Unsecured Public Income Notes, Downgraded to Caa2 from Caa1 -- Senior Unsecured Shelf, Downgraded to (P)Caa2 from (P)Caa1 Issuer: Alliance Airport Authority Inc. -- Revenue Bonds, Downgraded to Caa2 from Caa1 Issuer: American Airlines 1988-A Grantor Trust -- Senior Secured Equipment Trust, Downgraded to Caa1 from B2 Issuer: American Airlines Inc. -- Senior Secured Bank Credit Facility, Downgraded to B2 from Ba3 -- Pass Through Certificates, Series 1999-1 -- Class A1 Certificates, Downgraded to Ba2 from Baa2 -- Class A2 Certificates, Downgraded to Ba2 from Baa2 -- Class B Certificates, Downgraded to B2 from Ba3 -- Pass Through Certificates, Series 2001-1 -- Class A1 Certificates, Downgraded to B1 from Ba1 -- Class A2 Certificates, Downgraded to B1 from Ba1 -- Class B Certificates, Downgraded to Caa1 from B1 -- Class C Certificates, Downgraded to Caa2 from B3 -- Pass Through Certificates, Series 2001-2 -- Class A1 Certificates, Downgraded to Ba1 from Baa2 -- Class A2 Certificates, Downgraded to Ba1 from Baa2 -- Class B Certificates, Downgraded to Ba3 from Baa3 -- Secured Global Notes, spare parts transaction -- Class A Certificates, Downgraded to Ba3 from Ba1 -- Secured Notes, spare parts transaction -- Class B Certificates, Downgraded to B3 from B1 -- Series 2005-1 Pass Through Certificates -- Class G, Downgraded to Baa3 from Baa1 -- Class B, Downgraded to B1 from Ba2 -- Senior Secured Equipment Trust, Downgraded to range of Caa2 to Caa1 from range of Caa1 to B1 -- Senior Secured Shelf, Downgraded to (P)B2 from (P)Ba3 Issuer: Chicago O'Hare International Airport, IL -- Revenue Bonds, Downgraded to Caa2 from Caa1 -- Senior Unsecured Revenue Bonds, Downgraded to Caa2 from Caa1 Issuer: Dallas-Fort Worth Intl. Airp. Fac. Imp. Corp. -- Revenue Bonds, Downgraded to Caa2 from Caa1 -- Senior Secured Revenue Bonds, Downgraded to Caa2 from Caa1 -- Senior Unsecured Revenue Bonds, Downgraded to Caa2 from Caa1 Issuer: Dallas-Fort Worth TX, Regional Airport -- Revenue Bonds, Downgraded to Caa2 from Caa1 Issuer: New Jersey Economic Development Authority -- Revenue Bonds, Downgraded to Caa2 from Caa1 Issuer: New York City Industrial Development Agcy, NY -- Revenue Bonds, Downgraded to Caa2 from Caa1 -- Senior Unsecured Revenue Bonds, Downgraded to Caa2 from Caa1 Issuer: Puerto Rico Ind Med&Env Poll Ctl Fac Fin Auth -- Revenue Bonds, Downgraded to Caa2 from Caa1 Issuer: Puerto Rico Ports Authority -- Senior Unsecured Revenue Bonds, Downgraded to Caa2 from Caa1 Issuer: Raleigh-Durham Airport Authority, NC -- Revenue Bonds, Downgraded to Caa2 from Caa1 Issuer: Regional Airports Improvement Corporation, CA -- Senior Unsecured Revenue Bonds, Downgraded to Caa2 from Caa1 Issuer: Tulsa OK, Municipal Airport Trust -- Revenue Bonds, Downgraded to Caa2 from Caa1 -- Senior Secured Revenue Bonds, Downgraded to Caa2 from Caa1 -- Senior Unsecured Revenue Bonds, Downgraded to Caa2 from Caa1 Other Changes: Issuer: AMR Corporation -- Senior Unsecured Conv./Exch. Bond/Debenture, to LGD5, 81% from LGD5, 83% -- Senior Unsecured Medium-Term Note Program, to LGD5, 81% from LGD5, 83% -- Senior Unsecured Regular Bond/Debenture, to LGD5, 81% from LGD5, 83% -- Senior Unsecured Public Income Notes, to LGD5, 81% from LGD5, 83% -- Senior Unsecured Shelf, to LGD5, 81% from LGD5, 83% Issuer: Alliance Airport Authority, Inc. -- Revenue Bonds, to LGD5, 81% from LGD5, 83% Issuer: American Airlines Inc. -- Senior Secured Bank Credit Facility, to LGD2, 27% from LGD3, 30% Issuer: Chicago O'Hare International Airport, IL -- Revenue Bonds, to LGD5, 81% from LGD5, 83% -- Senior Unsecured Revenue Bonds, to LGD5, 81% from a range of 83 - LGD5 to 82 - LGD5 Issuer: Dallas-Fort Worth Intl. Airp. Fac. Imp. Corp. -- Revenue Bonds, to LGD5, 81% from LGD5, 83% -- Senior Secured Revenue Bonds, to LGD5, 81% from LGD5, 83% -- Senior Unsecured Revenue Bonds, to LGD5, 81% from LGD5, 83% Issuer: Dallas-Fort Worth TX, Regional Airport -- Revenue Bonds, to LGD5, 81% from LGD5, 83% Issuer: New Jersey Economic Development Authority -- Revenue Bonds, to LGD5, 81% from LGD5, 83% Issuer: New York City Industrial Development Agcy, NY -- Revenue Bonds, to LGD5, 81% from LGD5, 83% -- Senior Unsecured Revenue Bonds, to LGD5, 81% from LGD5, 83% Issuer: Puerto Rico Ind Med&Env Poll Ctl Fac Fin Auth -- Revenue Bonds, to LGD5, 81% from LGD5, 83% Issuer: Puerto Rico Ports Authority -- Senior Unsecured Revenue Bonds, to LGD5, 81% from LGD5, 83% Issuer: Raleigh-Durham Airport Authority, NC -- Revenue Bonds, to LGD5, 81% from LGD5, 83% Issuer: Regional Airports Improvement Corporation, CA -- Senior Unsecured Revenue Bonds, to LGD5, 81% from LGD5, 83% Issuer: Tulsa OK, Municipal Airport Trust -- Revenue Bonds, to LGD5, 81% from LGD5, 83% -- Senior Secured Revenue Bonds, to LGD5, 81% from LGD5, 83% -- Senior Unsecured Revenue Bonds, to LGD5, 81% from LGD5, 83% Outlook Actions: Issuer: AMR Corporation -- Outlook, Changed To Negative From Rating Under Review Issuer: American Airlines 1988-A Grantor Trust -- Outlook, Changed To Negative From Rating Under Review Issuer: American Airlines Inc. -- Outlook, Changed To Negative From Rating Under Review Headquartered in Forth Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. At the end of 2006, American provided scheduled jet service to about 150 destinations throughout North America, the Caribbean, Latin America, including Brazil, Europe and Asia. American is also a scheduled airfreight carrier, providing freight and mail services to shippers throughout its system. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as “American Eagle”. American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. BANCO BRADESCO: Net Income Grows to BRL4.105BB in 1st Half 2008 --------------------------------------------------------------- Banco Bradesco has released its main figures for the first half of 2008. The Report on Economic and Financial Analysis containing the complete Financial Statements is available on the investor relations web site at: http://www.bradesco.com.br/ir. -- Net Income in the first half of 2008 stood at BRL4.105 billion (up 2.4% in relation to the net income of BRL4.007 billion in the same quarter of 2007), corresponding to earnings per share of BRL1.34 and return of 28.6% on Average Shareholders' Equity. -- Net Income comprised BRL2.636 billion from financial activities, which accounted for 64% of the total, and BRL1.469 billion from Insurance and Private Pension Plan Group activities, which accounted for 36% of Net Income. -- Market Capitalization remained stable compared to first half 2007, reaching BRL95.608 billion in June 2008 (BRL94.120 billion on Aug. 1, 2008). -- Total Assets stood in June 2008 at BRL403.271 billion, an increase of 38.8% in relation to June 2007. Annualized return on average Assets reached 2.3%, versus 2.9% in the same period of 2007. -- The Loan Portfolio, on an Expanded concept, stood at BRL181.602 billion, 38.8% higher than a year ago. Loans to individuals totaled BRL65.872 billion (up 32.2%), while loans to corporate clients totaled BRL115.730 billion (up 42.9%). -- Total Funds Raised and Managed reached BRL552.082 billion, an increase of 30.9% versus BRL421.602 billion in June 2007. -- Shareholders' Equity stood at BRL33.711 billion in the first half of 2008, a 22.5% growth versus first half 2007. The Capital Adequacy Ratio stood at 12.9%. According to BIS 2 simulations, this ratio would be increased to 13.9% and, adopting the prerogative of article 9 of Circular Letter 3,367, this ratio would be increased to 16.7%. -- Remuneration to shareholders in the form of Interest on Shareholders' Capital and Dividends paid and provisioned in the period totaled BRL1.459 billion, equivalent to 35.5% of Net Income. -- The Efficiency Ratio calculated over the 12-month period stood at 41.3%, an improvement compared to the 42% in June 2007. -- In first half 2008, investments in infrastructure, information technology and telecommunications amounted to BRL1.127 billion, up 13% compared to first half of 2007. -- Taxes and contributions, including social security, paid or provisioned in the period, stemming from the main activities developed by the Bradesco Organization, totaled BRL3.653 billion, equivalent to 89% of Net Income. -- Bradesco's distribution is Brazil's largest private customer service network, with 3,193 branches, 27,362 ATMs in the Bradesco Dia&Noite (Day&Night) Network, 4,631 ATMs in the Banco24Horas (24HourBank) Network, 13,413 Bradesco Expresso outlets, 5,882 Banco Postal branches, 3,310 mini-branches and 268 branches of Finasa Promotora de Vendas. -- Awards and Acknowledgments: * Best Bank in Brazil: Euromoney; * Bank Leader among the Melhores e Maiores (the Best and Largest Companies): Exame ranking; * Most valuable brand in Brazil: BrandAnalytics/Millward Brown/Isto E Dinheiro magazine; * Best ranked Brazilian Bank by Fortune 500 magazine list; * Highest market capitalization among Banks in Latin America: Economatica; * Best Bank in the market and leader in Bovespa ISE: Economatica/Agencia Estado; * Most valuable brand in Latin America's banking sector: Brand Finance/The Banker; * Bank with the highest level I capital adequacy level and Total Assets in Latin America: The Banker; * Best Bank in retail, life insurance, private pension plan and leasing segments: Austin Rating/Gazeta Mercantil; and * Shareholders' Value creation: Banking Sector - Abrasca. -- As of June 4, 2008, Bradesco was granted the ISO14064 certification by Fundacao Carlos Alberto Vanzolini, which establishes rules for quantifying, monitoring, verifying and validating Greenhouse Gas emissions. -- Regarding Social Responsibility, for more than 51 years, Fundacao Bradesco has been dedicated to educating low-income children, adolescents and adults. Since its creation, the foundation has provided free and high-quality education to approximately 2,000,000 students; with this figure rising to 2.5 million once the distance-learning programs are included. With an estimated budget of BRL220.069 million, this year Fundacao Bradesco will be able to provide assistance on more than 411,000 occasions in many segments in which it operates. Among the people assisted, 110,415 students will receive education in Fundacao Bradesco's schools, in Basic Education level. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * In February 2008, Moody's Investors Service assigned a Ba2 foreign currency deposit rating to Banco Bradesco S.A. BUCYRUS INT'L: Moody's Upgrades CF and Debt Ratings to Ba2 ---------------------------------------------------------- Moody's Investors Service has raised the corporate family rating and the secured debt ratings of Bucyrus International Inc. to Ba2 from Ba3. The rating outlook is positive. The upgrades reflect Bucyrus' smooth integration of DBT GmbH, which it acquired in May 2007, reduced leverage since the acquisition, progress in improving operating margins, and the near-completion of its expansion projects at its South Milwaukee manufacturing operations. The positive outlook acknowledges the strong fundamentals within the global mining industry as evidenced by an approximate 95% increase in Bucyrus' new orders in the first half of 2008 versus 2007 and a growing backlog of business that ensures the company's sales and cash flow will be sustained at high levels for the foreseeable future. In the absence of a meaningful leveraging event, Bucyrus' debt protection metrics should continue to improve and a further upgrade is possible. Bucyrus' ratings are supported by its commanding market share for surface and underground mining equipment, its large installed equipment base, a high proportion of aftermarket parts and services sales, which are more stable than original equipment sales, and strong demand for Bucyrus' equipment due to high commodity prices and growing metals consumption in the world's developing economies. The ratings also reflect Bucyrus' potential operating volatility due to its dependence on the highly cyclical mining industry and commodity markets, the capital expenditures associated with its growth projects, its US$131 million underfunded pension plans, and the potential for the company to make acquisitions or large shareholder distributions. These ratings were raised: -- Corporate family rating -- to Ba2 from Ba3 -- Probability of default rating -- to Ba2 from Ba3 -- US$375 million secured revolving credit facility maturing May 4, 2012 -- to Ba2 (LGD3, 48%) from Ba3 (LGD3, 43%) -- Euro65 million five-year unsecured revolving credit facility maturing May 4, 2012 -- to Ba2 (LGD3, 48%) from Ba3 (LGD3, 43%) -- US$515 million secured term loan due 2014 -- to Ba2 (LGD3, 48%) from Ba3 (LGD3, 43%) Moody's last rating action for Bucyrus was on April 23, 2007, around the time the US$731 million DBT acquisition closed, when the company's Ba3 corporate family rating was confirmed and Ba3 ratings were assigned to the company's new senior secured debt facilities. Headquartered in South Milwaukee, Wisconsin, Bucyrus International Inc. (Nasdaq: BUCY) -- http://www.bucyrus.com/-- is a global manufacturer of electric mining shovels, walking draglines and rotary blasthole drills and provides aftermarket replacement parts and services for these machines. In 2006, it had sales of US$738 million. The company has operations in Brazil, Chile, China, Poland, the United Kingdom, Australia, India, Germany and Peru, among others. COMPANHIA ENERGITICA: Aneel Rejects Consorcio Jirau's Appeal ------------------------------------------------------------ Aneel, the Electricity Regulatory Agency of Brazil, has rejected the appeal brought by Consorcio Jirau Energia (CJE), which includes Companhia Energetica de Minas Gerais, against the award of the 3,300 megawatts Jirau project by auction to Consorcio Energi Sustentavel do Brasil (Cesb), Water Power Magazine reports. As reported in the Troubled Company Reporter-Latin America on May 21, 2008, the Cesb consortium, which includes Camargo Correa SA, won the auction for the construction and operation of the 3.3-gigawatt Jirau hydro plant on the Madeira river. According to Water Power Magazine, CJE questioned the validity of the documentation presented in the qualification phase of the procurement process following the naming of the auction winner. The report relates that Aneel rejected the appeal and approved the decision after a review of the complaint and defence; Aneel also ratified the auction result. About Companhia Energetica Companhia Energetica de Minas Gerais a.k.a. Cemig -- http://www.cemig.com.br/-- is one of the largest electric energy utilities in Brazil. Cemig's concession area extends throughout nearly 96.7% of Minas Gerais. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). * * * In March 2007, Moody's Investors Service assigned corporate family ratings of Ba2 on its global scale and Aa3.br on its Brazilian national scale to Companhia Energetica de Minas Gerais aka CEMIG. The rating action triggered the upgrade of CEMIG's outstanding debentures due in 2009 and 2011, and of the BRL250 million 2014 senior unsecured guaranteed debentures of its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from B1 on the global scale and to Aa3.br from Baa2.br on the Brazilian national scale, concluding the review process initiated on Aug. 8, 2006. TAM SA: To Initiate Lufthansa Codeshare Agreement on Aug. 18 ------------------------------------------------------------ TAM S.A. and Lufthansa will initiate their codeshare agreement on domestic and international routes on Aug. 18. This partnership will allow the two companies to offer more choices of flights to passengers flying between Brazil and Germany, as well as for connections in the two countries. Flights to destinations included in this agreement are already available on the ticket sales systems of both companies. With this codeshare agreement, TAM clients can purchase their tickets for flights operated by Lufthansa departing from Sao Paulo to Frankfurt and Munich (Germany). Connections are available leaving from Frankfurt to other destinations in Germany such as Berlin, Dusseldorf, Hamburg and Munich. Lufthansa passengers, for their part, can take the daily TAM flight between Frankfurt and Sao Paulo and, in Brazil, make connections to Rio de Janeiro, Brasilia, Curitiba and Porto Alegre. “The synergy of services between TAM and Lufthansa will make it possible for the two companies to expand the advantages offered to customers, stimulating the traffic of passengers between Brazil and Germany,” states TAM's Vice President for Planning and Alliances, Paulo Castello Branco. “The codeshare agreement with TAM as our strong partner allows our passengers to avail themselves of immediate connections in Brazil. The passenger can make the reservation to the final destination, and there are more flights to choose from,” says Vice President for Alliances, Strategies and Participations at Lufthansa Passage, Gotz Ahmelmann. Since February, TAM and Lufthansa passengers have been able to accumulate and redeem points in TAM's Programa Fidelidade frequent flyer program, as well as miles from Miles & More on flights offered by both companies. The integration of the frequent flyer programs and the codeshare agreement comprise part of the partnership agreement signed between TAM and Lufthansa last year, with the aim of expanding services offered to customers. 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 July 14, 2008, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Brazil-based airline TAM S.A. to 'BB-' from 'BB'. S&P's outlook is revised to stable from negative. As reported in the TCR-Latin America on June 23, 2008, Fitch Ratings affirmed the 'BB' Foreign and Local Currency Issuer Default Ratings of TAM S.A. Fitch also affirmed the 'BB' rating of its US$300 million senior unsecured notes due in 2017 as well as the company's 'A+(bra)' national scale rating and its first debentures issuance of BRL500 million. Fitch revised its rating outlook to negative from stable. TELE NORTE: To Raise BRL3 Billion to Close Brasil Telecom Buyout ---------------------------------------------------------------- Oi Participacoes aka Tele Norte Leste Participacoes S.A. will raise at least BRL3 billion (US$1.92 billion) by the end of October to complete its financing plan of acquiring Brasil Telecom, Reuters reports. Tele Norte Chief Financial Officer Jose Luis Salazar disclosed that the company has already secured about 65% of the BRL11-12 billion it needs for the takeover, Reuters adds. As reported in the Troubled Company Reporter-Latin America on July 18, 2008, Telemar Norte Leste S.A, a company controlled by Oi, entered into a credit facility with Banco do Brasil for BRL4.3 billion in connection with its future acquisition of indirect control of Brasil Telecom Participacoes S.A and Brasil Telecom S.A. Citing Mr. Salazar, Reuters relates that the company's financial situation is very comfortable and the (debt) amortization program is spread out well. Tele Norte agreed to acquire Brasil Telecom in April to form a multinational telecommunications company to compete with rivals -- Telefonica of Spain and Mexico's America Movil, Reuters relates. Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes S.A. -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As reported on April 27, 2007, Standard & Poor's Ratings Services placed on CreditWatch with negative implications the 'BB+' corporate credit rating on Tele Norte Leste Participacoes S.A. The creditwatch resulted from TmarPart's decision to buy out its holding company's preferred shares. TELE NORTE: Net Income Drops to BRL249 Million in Second Quarter ---------------------------------------------------------------- Tele Norte Leste Participacoes SA reported net income of BRL249 million (US$159 million) for the second quarter of 2008, compared with net income of BRL468 million for the same quarter of 2007, various reports say. The company's profit is less than the BRL480 million average of five estimates compiled by Bloomberg. Reuters relates that the recent quarter's results are well below expectations for a net income of BRL446.5 million. Finance and Investor Relations Director Jose Luis Salazar disclosed that the company had raised its 2008 investment projections to BRL4.5 billion from BRL4 billion, Reuters adds. Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes S.A. -- http://www.telemar.com.br-- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As reported on April 27, 2007, Standard & Poor's Ratings Services placed on CreditWatch with negative implications the 'BB+' corporate credit rating on Tele Norte Leste Participacoes S.A. The creditwatch resulted from TmarPart's decision to buy out its holding company's preferred shares. SHARPER IMAGE: Court OKs Termination of Rockefeller Center Lease ---------------------------------------------------------------- At the behest of The Sharper Image Corp., now known as TSCI, Inc., the U.S. Bankruptcy Court for the District of Delaware approved the termination of a lease for premises located in Rockefeller Center, New York City. Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice, PLLC, in Wilmington, Delaware, told the Court that the Debtor engaged in good-faith, arm's-length negotiations with RCPI Landmark Properties, L.L.C., the landlord of the Rockefeller Center Lease, in an effort to assist the estate in realizing maximum value on its interest in the Lease. The Debtor and RCPI reached an agreement as to the disposition of the Rockefeller Center Lease. The Debtor determined, in its sound business judgment, that the terms of the agreement will provide a substantial benefit to its estate. According to Mr. Kortanek, the Debtor is in critical need of funding from the sale of its remaining leases in order to wind- down operations, and the agreement provides that funding on an expedited basis. The salient terms of the Termination Stipulation are: (a) The Rockefeller Center Lease is deemed terminated effective as of July 16, 2008; (b) In exchange for the termination of the Rockefeller Center Lease and vacatur of the premises, RCPI will: * pay the Debtor US$1,203,000, and * refund the Debtor the pro-rata share of the July 2008 rent, attributable to the period from the Termination Date through and including July 31, 2008; (c) The Debtor will release RCPI from all claims with respect to the Rockefeller Center Lease; (d) RCPI will release the Debtor from all obligations under the Rockefeller Center Lease; (e) Following the Termination Date, the Rockefeller Center Lease, and all rights and obligations of the parties in connection with the Lease, will be deemed expired and terminated; and (f) RCPI consents to the expungement of any claim relating to the Rockefeller Center Lease. 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 Court extended the exclusive period during which the Debtor may file a Plan through and including Sept. 16, 2008. Sharper Image sought and obtained the Court's approval to change its name to “TSIC, Inc.” in relation to an an Asset Purchase Agreement by the Debtor with Gordon Brothers Retail Partners, LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco Consumer Capital, LLC. (Sharper Image Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SHARPER IMAGE: EVP/CFO May Get US$250,000 Under Incentive Plan -------------------------------------------------------------- In a regulatory filing with the U.S. Securities and Exchange Commission on June 30, 2008, Sharper Image Corp., now known as TSIC Inc., disclosed that the U.S. Bankruptcy Court for the District of Delaware has approved the implementation of the Incentive Plan, which will provide an effective means of motivating certain key employees, by providing them with incentive pay in addition to their base salaries, to assist with the administration of the Chapter 11 case. Rebecca Roedell, Sharper's executive vice-president and chief financial officer, informs SEC that the maximum aggregate amount payable under the Incentive Plan is US$1,052,000. Ms. Roedell is the only named executive officer participating in the Incentive Plan, and is eligible to receive incentive pay of up to US$250,000. Payments under the Incentive Plan are conditioned upon, among other things, the attainment of specified goals, which vary in accordance with the functions performed by the participants in the Incentive Plan. Ms. Roedell will receive incentive pay of US$150,000 for managing Sharper's transition process, and is eligible to receive an additional US$100,000 for performing specified functions during the Wind-Down. The Additional Incentive to Ms. Roedell is conditioned upon the Court's confirmation of a plan of liquidation, and subject to reduction on a pro rata basis, if certain actual operating expenses exceed the projected expenses in the Wind-Down budget. In addition, Ms. Roedell discloses, in order to receive any payments under the Incentive Plan, all participants are required to execute a full release and waiver of claims in favor of Sharper, including a waiver for any severance pay to which they may otherwise be entitled. 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 Court extended the exclusive period during which the Debtor may file a Plan through and including Sept. 16, 2008. Sharper Image sought and obtained the Court's approval to change its name to “TSIC, Inc.” in relation to an an Asset Purchase Agreement by the Debtor with Gordon Brothers Retail Partners, LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco Consumer Capital, LLC. (Sharper Image Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SHARPER IMAGE: Trade Creditors Sell Two Claims for US$397,594 ------------------------------------------------------------ On June 30, 2008, the Clerk of the Bankruptcy Court recorded the transfer of Claim No. 68 for US$129,680, filed by Logistics Group Inc., to Debt Acquisition Company of America V, LLC. Hain Capital Holdings, Ltd., also transferred its claim for US$267,914 to Aroa Marketing Inc. 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 Court extended the exclusive period during which the Debtor may file a Plan through and including Sept. 16, 2008. Sharper Image sought and obtained the Court's approval to change its name to “TSIC, Inc.” in relation to an an Asset Purchase Agreement by the Debtor with Gordon Brothers Retail Partners, LLC, GB Brands, LLC, Hilco Merchant Resources, LLC, and Hilco Consumer Capital, LLC. (Sharper Image Bankruptcy News, Issue No. 17; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) USINAS SIDERURGICAS: Will Release 2Q 2008 Earnings on Aug. 14 ------------------------------------------------------------- Usinas Siderurgicas de Minas Gerais S.A., a.k.a. Usiminas, has reported this webcast alert: What: Second Quarter 2008 Results Conference Call, which will be released on Aug. 14, 2008, before the opening of Bovespa's trading session. When: Aug. 14, 2008 at 10:00 AM EDT in Portuguese and 11:30 AM EDT in English Where: http://prnewswire.isat.com.br/?palestra_id=366 How: Log on to the web at the address above. Contact: Usiminas Investor Relations Tel. Number: +55 31-3499-8710 Email: investidores@usiminas.com.br The conference call will be archived at: http://www.usiminas.com.br To take part in the Conference Call, dial: Tel. Numbers: (1-800) 860-2442 (USA Toll-free) (11) 4688-6301 (Brazil) (1-412) 858-4600 (Others) Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de Minas Gerais S.A. -- http://www.usiminas.com.br-- is among the world's 20 largest steel manufacturing complexes, with a production capacity of approximately 10 million tons of steel. Usiminas System companies produces galvanized and non-coated flat steel products for the automotive, small and large diameter pipe, civil construction, hydro-electronic, rerolling, agriculture, and road machinery industries. Brazil consumes 80% of its products and the company's largest export markets are the US and Latin America. The company also sells in China and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local currency rating and an Aa1.br rating on its Brazilian national scale to the BRL500 million non-guaranteed subordinated debentures due 2013 to be issued by Usinas Siderurgicas de Minas Gerais S.A. (aka Usiminas). Net proceeds from the debentures issuance will be used to partially fund the company's capex program. Moody's said the rating outlook is stable. ========================== C A Y M A N I S L A N D S ========================== ASTPHOENIX FUND: Deadline for Proofs of Claim Filing Is Aug. 8 -------------------------------------------------------------- Astphoenix Fund Ltd.'s creditors have until Aug. 8, 2008, to prove their claims to Jagjit (Bobby) Toor and Giles Kerley, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Astphoenix Fund's shareholders decided on June 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jagjit (Bobby) Toor and Giles Kerley c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands BARATARIO LTD: Proofs of Claim Filing Deadline Is Until Aug. 8 -------------------------------------------------------------- Baratario Ltd.'s creditors have until Aug. 8, 2008, to prove their claims to Mark Hill and Giles Le Sueur, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Baratario's shareholders decided on June 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Mark Hill and Giles Le Sueur c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands COPPER ARCH: Deadline for Proofs of Claim Filing Is Aug. 8 ---------------------------------------------------------- Copper Arch Fund Offshore Ltd.'s creditors have until Aug. 8, 2008, to prove their claims to John Sutlic and Warren Keens, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Copper Arch's shareholder decided on June 27, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Sutlic and Warren Keens c/o Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034 Grand Cayman, Cayman Islands Contact for inquiries: Kim Charaman Telephone: (345) 949-8455 Fax: (345) 949-8499 COPPER ARCH FUND: Proofs of Claim Filing Is Until Aug. 8 -------------------------------------------------------- Copper Arch Fund Offshore Portfolio Ltd.'s creditors have until Aug. 8, 2008, to prove their claims to John Sutlic and Warren Keens, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Copper Arch's shareholder decided on June 27, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: John Sutlic and Warren Keens c/o Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034 Grand Cayman, Cayman Islands Contact for inquiries: Kim Charaman Telephone: (345) 949-8455 Fax: (345) 949-8499 FORT WASHINGTON: Proofs of Claim Filing Deadline Is Aug. 8 ---------------------------------------------------------- Fort Washington CBO I's creditors have until Aug. 8, 2008, to prove their claims to Bobby Toor and Andrew Millar, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Fort Washington's shareholders decided on June 20, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Bobby Toor and Andrew Millar c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands FRANJEAN AT SEA: Will Hold Final Shareholders Meeting on Aug. 8 --------------------------------------------------------------- Franjean At Sea Ltd. will hold its final shareholders meeting on Aug. 8, 2008, at 11:00 a.m., at the registered office of the company. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Franjean At Sea's shareholder agreed on June 20, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street George Town Grand Cayman Cayman Islands GRANTCHESTER INVESTMENT: Final Shareholders Meeting Is on Aug. 8 ---------------------------------------------------------------- Grantchester Investment Fund I Ltd. will hold its final shareholders meeting on Aug. 8, 2008, at 10:00 a.m., at the offices of dms Corporate Services Ltd., dms House, 20 Genesis Close, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of six years from the dissolution of the company, after which they may be destroyed. Grantchester Investment's shareholders agreed on July 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: dms Corporate Services Ltd. 2nd Floor, dms House P.O. Box 1344 Grand Cayman, Cayman Islands Contact for inquiries: Neil Ross Telephone: (345) 946-7665 Fax: (345) 946 7666 HACHI HOLDINGS: Deadline for Proofs of Claim Filing Is Aug. 8 ------------------------------------------------------------- Hachi Holdings Ltd.'s creditors have until Aug. 8, 2008, to prove their claims to Mark Hill and Giles Le Sueur, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Hachi Holdings' shareholders decided on June 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Mark Hill and Giles Le Sueur c/o Maples Finance Jersey Limited 2nd Floor Le Masurier House La Rue Le Masurier St. Helier, Jersey JE2 4YE HEPTAGON LIMITED: Proofs of Claim Filing Deadline Is Aug. 8 ----------------------------------------------------------- Heptagon Ltd.'s creditors have until Aug. 8, 2008, to prove their claims to George Bashforth and Emile Small, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Heptagon's shareholders decided on June 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: George Bashforth and Emile Small c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands J-BLUE SKY: Will Hold Final Shareholders Meeting on Aug. 8 ---------------------------------------------------------- J-Blue Sky One Ltd. will hold its final shareholders meeting on Aug. 8, 2008, at 10:30 a.m., at the offices of HSBC Bank (Cayman) Limited, Strathvale House, North Church Street, P.O. Box 1109, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. J-Blue Sky's shareholder agreed on Aug. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Cereita Lawrence and Bronwynne R. Arch P.O. Box 1109 Grand Cayman, Cayman Islands Telephone: (345) 914-7570 Fax: (345) 949-7634 KI SPECIALITY: Deadline for Proofs of Claim Filing Is Aug. 8 ------------------------------------------------------------ KI Specialty Financial Master Fund Ltd.'s creditors have until Aug. 8, 2008, to prove their claims to Giles Kerley and Sarah Kennedy, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. KI Specialty's shareholders decided on June 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Giles Kerley and Sarah Kennedy c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands LOWE ENTERPRISES: Holds Final Shareholders Meeting on Aug. 8 ------------------------------------------------------------ Lowe Enterprises(Cayman) Ltd. will hold its final shareholders meeting on Aug. 8, 2008, at 10:30 a.m., at the registered office of the Company. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Lowe Enterprises' shareholder agreed on June 20, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street George Town Grand Cayman Cayman Islands OPUS SPECIAL OPPORTUNITIES: Claims Filing Deadline Is Aug. 8 ------------------------------------------------------------ Opus Special Opportunities Fund Ltd.'s creditors have until Aug. 8, 2008, to prove their claims to Jagjit (Bobby) Toor and Giles Kerley, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Opus Special Opportunities' shareholders decided on June 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jagjit (Bobby) Toor and Giles Kerley c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands OSAKI RESIDENTIAL: Proofs of Claim Filing Deadline Is Aug. 8 ------------------------------------------------------------ Osaki Residential Development Ltd.'s creditors have until Aug. 8, 2008, to prove their claims to Mark Hill and Giles Le Sueur, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Osaki Residential's shareholders decided on June 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Mark Hill and Giles Le Sueur c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands PARMALAT SPA: NY Court Confirms Settlement Class in Hermes Suit --------------------------------------------------------------- The U.S. District Court for the Southern District of New York granted the request of Lead Plaintiffs Hermes Focus Asset Management Europe Limited, Cattolica Partecipazioni, S.p.A., Capital & Finance Asset Management, Societe Moderne des Terrassements Parisiens and Solotrat for preliminary certification to the Settlement Class, for the purpose of partially settling the securities class action litigation, according to a report by the PARMALAT Bankruptcy News, Issue No. 104. The Settlement Class will include all persons and entities that purchased or acquired securities of Parmalat Finanziaria S.p.A. and its subsidiaries and affiliates between Jan. 5, 1999 and Dec. 18, 2003. The Settlement Class excludes Parmalat, the Defendants, officers and directors of Parmalat or the Defendants, entities in which the Defendants have a controlling interest, Parmalat's insurers, banks and other financial institutions that transacted with Parmalat, the relatives and legal representatives of the foregoing. The Court also approved, as to form and content, the Notice and Publication Notice to putative class members. Further, Judge Kaplan has appointed Epiq Systems Class Actions and Claims Solutions as the notice and claims administrator supervising and administering the notice procedure as well as the processing of claims. Judge Kaplan will convene a hearing on Sept. 24, 2008, at 9:30 a.m., to determine whether the Settlement is fair, reasonable and accurate. The Court will also consider the approval of the related plan of allocation, as well as the reimbursement of attorneys' fees and other costs. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. On June 21, 2007, the U.S. Court granted Parmalat permanent injunction. SILVER CREEK: Will Hold Final Shareholders Meeting on Aug. 8 ------------------------------------------------------------ Silver Creek Low Vol Institutional Ltd. will hold its final shareholders meeting on Aug. 8, 2008, at 10:00 a.m., at the registered office of the Company. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Silver Creek's shareholder agreed on June 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street George Town Grand Cayman Cayman Islands SILVER CREEK LOW: Final Shareholders Meeting Is on Aug. 8 --------------------------------------------------------- Silver Creek Low Vol Strategies Erisa Ltd. will hold its final shareholders meeting on Aug. 8, 2008, at 9:30 a.m., at the registered office of the Company. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Silver Creek's shareholder agreed on June 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street George Town Grand Cayman Cayman Islands TSF NO. 7: Deadline for Proofs of Claim Filing Is Aug. 8 -------------------------------------------------------- TSF No. 7's creditors have until Aug. 8, 2008, to prove their claims to Mark Hill and Giles Le Sueur, the company's liquidators, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. TSF No. 7's shareholders decided on June 26, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Mark Hill and Giles Le Sueur c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands TREMONT DOUBLE: Sets Final Shareholders Meeting for Aug. 8 ---------------------------------------------------------- Tremont Double Alpha Market Neutral Portfolio Ltd. will hold its final shareholders meeting on Aug. 8, 2008, at 9:00 a.m., at the registered office of the Company. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Tremont Double's shareholder agreed on June 18, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street George Town Grand Cayman Cayman Islands WATERFALL VANILLA: To Hold Final Shareholders Meeting on Aug. 8 --------------------------------------------------------------- Waterfall Vanilla Strategies Ltd. will hold its final shareholders meeting on Aug. 8, 2008, at 12:30 p.m., at the registered office of the Company. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Waterfall Vanilla's shareholder agreed on June 25, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Walkers SPV Limited Walker House, 87 Mary Street George Town Grand Cayman Cayman Islands ========= C H I L E ========= CLOROX COMPANY: Earns US$461 Million for Fiscal Year 2008 --------------------------------------------------------- The Clorox Company reported results for its fourth quarter and fiscal year 2008, which ended June 30. For these periods, Clorox reported solid earnings results driven by strong top-line growth and cost savings. “I'm pleased with our performance for the quarter,” said Chairperson and CEO Don Knauss. “We delivered strong total company and base business top-line growth. Our market shares held steady overall, despite continued economic pressure on consumers. Cost savings and the benefit of recent price increases helped lessen the impact of intense pressure from commodity and energy cost increases.” Commenting on the company's fiscal year 2008 results, Mr. Knauss said, “I feel very good about our overall performance for the year, particularly given unprecedented cost pressures. Importantly, we made very good progress against our Centennial Strategy. We drove growth on core businesses, including the new Green Works(TM) line of natural cleaners and the Brita(R)brand. We also continued to position our portfolio for faster growth through the Burt's Bees(R) acquisition, which has done extremely well to date. I'm very proud of the hard work and dedication of Clorox employees around the world.” Clorox reported fourth-quarter net earnings of US$158 million, or US$1.13 diluted earnings per share (EPS), based on weighted average diluted shares outstanding of about 140 million. Current quarter earnings were reduced by US$10 million in pretax charges, or 4 cents diluted EPS, associated with the previously announced restructuring-related charges, including consolidation of the company's manufacturing network and other charges, and US$3 million, or 1 cent diluted EPS, associated with the Burt's Bees acquisition. Excluding these factors, the company delivered fourth-quarter diluted earnings per share of US$1.18. In the year-ago quarter, Clorox reported net earnings of US$164 million, or US$1.07 diluted EPS, based on weighted average diluted shares outstanding of about 154 million. For fiscal year 2008, Clorox reported net earnings of US$461 million, or US$3.24 diluted EPS, based on weighted average diluted shares outstanding of about 142 million. Earnings for the fiscal year were reduced by US$59 million in pretax charges, or 26 cents diluted EPS, associated with the previously announced restructuring-related charges, including consolidation of the company's manufacturing network and other charges; and US$20 million, or 9 cents diluted EPS, associated with the Burt's Bees acquisition. Excluding these factors, the company delivered fiscal year diluted earnings per share of US$3.59. This includes a benefit of 5 cents diluted earnings per share associated with the repurchase of stock pursuant to the accelerated stock repurchase (ASR), completed in January 2008. In fiscal year 2007, the company reported net earnings of US$501 million, or US$3.26 diluted EPS, based on weighted average diluted shares outstanding of about 154 million. These year-ago results included 10 cents diluted earnings per share of incremental costs associated with the IT services agreement and asset impairments, and 3 cents diluted earnings per share benefit from discontinued operations. Excluding these factors, the company delivered US$3.33 diluted earnings per share. For the fourth quarter, other income results reflected US$9 million in net foreign exchange transaction gains in the current quarter versus a US$3 million net loss in the year ago period. For fiscal year 2008, net foreign exchange transaction losses reflected in other income were US$2 million versus a net loss of US$4 million in fiscal 2007. Following is a summary of key fourth-quarter results. All comparisons are with the fourth quarter of fiscal year 2007, unless otherwise stated. Fourth-quarter highlights Fourth-quarter sales grew 11 percent to US$1.50 billion, compared with US$1.34 billion in the year-ago quarter. Excluding the Burt's Bees acquisition, sales in the current quarter grew 8 percent. Fourth quarter total volume increased 6 percent. Excluding Burt's Bees(R) products, volume was up 4 percent. Sales growth outpaced volume growth primarily due to price increases and favorable foreign exchange rates. Gross margin in the fourth quarter decreased 210 basis points to 42.1 percent from 44.2 percent. Excluding the impact of US$8 million of the restructuring-related charges reflected in cost of goods sold, gross margin was 42.7 percent. The year- over-year decrease was primarily due to the impact of higher costs for commodities, manufacturing and logistics, including diesel fuel. These factors were partially offset by the benefits of cost savings and price increases. During the quarter, Clorox generated cost savings of US$29 million, of which US$25 million was included in gross profit and the remaining US$4 million in other lines of the income statement. Net cash provided by operations was US$254 million, compared to US$282 million in the year-ago quarter. The year-over-year decrease was primarily due to the timing of tax payments, partially offset by improvements in working capital. North America The segment reported 10 percent sales growth, 6 percent volume growth and 4 percent growth in pretax earnings. Volume growth was primarily driven by Burt's Bees(R) products, the launch of Green Works(TM) natural cleaners, Clorox(R) disinfecting wipes, Kingsford(R) charcoal products, Hidden Valley(R) bottled salad dressings, Fresh Step(R) scoopable cat litter, all-time-record shipments of Pine-Sol(R) dilutable cleaners and Brita(R) water- filtration products. Higher shipments of Glad(R) ForceFlex trash bags also contributed to volume growth in the segment. These results were partially offset by lower shipments of Glad(R) regular trash bags and Clorox(R) liquid bleach. Sales growth outpaced volume growth primarily due to the benefit of price increases and a favorable Canadian exchange rate. Pretax earnings reflected the benefit of sales growth and cost savings, partially offset by the impact of unfavorable commodity costs and restructuring-related charges. International The segment reported 16 percent sales growth, 7 percent volume growth and 11 percent growth in pretax earnings. Volume growth was driven by shipments of laundry and homecare products in Latin America. Sales growth outpaced volume growth primarily due to the benefit of price increases and 5 percentage points of favorability from foreign exchange rates. Pretax earnings primarily reflected the benefit of sales growth, favorable foreign exchange rates and cost savings. Fiscal year 2008 results Fiscal year 2008 sales grew 9 percent to US$5.27 billion. Excluding the Burt's Bees and bleach business acquisitions, sales grew 6 percent. Volume for the fiscal year increased 6 percent compared with the prior year. Excluding Burt's Bees(R) products and the bleach acquisition, shipments were up 3 percent due to growth in core brands including Fresh Step(R) scoopable cat litter, Green Works(TM) natural cleaners, Brita(R) products, Hidden Valley(R) salad dressings and Clorox(R) disinfecting wipes. Sales growth outpaced volume growth primarily due to the benefit of favorable foreign exchange rates and price increases. Gross margin for the fiscal year decreased 190 basis points to 41.2 percent from 43.1 percent. Excluding the impact of the previously announced restructuring-related charges and Burt's Bees purchase accounting step-up in inventory values, gross margin was 42.1 percent. The decrease was primarily due to the impact of unfavorable commodity and energy-related costs, partially offset by cost savings and price increases. For the fiscal year, Clorox generated cost savings of US$93 million, of which US$81 million was included in gross profit and the remaining US$12 million in other lines of the income statement. Net cash provided by operations in fiscal year 2008 was US$730 million, compared to US$709 million in the prior fiscal year. The increase was primarily due to improvements in working capital, primarily offset by the timing of tax payments. During the year, Clorox repurchased 2 million shares of the company's common stock at a cost of US$118 million under its ongoing program to offset stock option dilution. In addition, under the ASR agreement, the company repurchased 12 million of its shares at a cost of US$750 million. Updated financial outlook for fiscal year 2009 For fiscal year 2009, Clorox continues to anticipate total sales growth in the range of 6-8 percent. Excluding the impact of the Burt's Bees acquisition, Clorox anticipates sales growth in the range of 4-6 percent. This range includes about 2 percentage points of growth from innovation, including Green Works(TM) natural cleaners. The company now anticipates gross margin to be about flat for the fiscal year. The benefits of cost savings, price increases and favorable product mix are expected to be offset by the impact of commodity cost pressure. Clorox now expects commodity and energy cost increases for the fiscal year to be in the range of US$180 million to US$200 million, which is significantly higher than originally projected. The company continues to anticipate cost savings in the range of US$90 million to US$100 million; restructuring- related charges in the range of US$20 million to US$25 million, primarily related to the previously announced consolidation of the company's manufacturing network; and a tax rate in the range of 34-35 percent. The company anticipates weighted average diluted shares outstanding of about 141 million. Including these factors, Clorox's outlook for fiscal year 2009 diluted earnings per share is now in the range of US$3.60 to US$3.75. The Clorox Company The Clorox Company -- http://www.TheCloroxCompany.com/-- (NYSE:CLX) manufactures and markets of consumer products with fiscal year 2007 revenues of US$4.8 billion. Clorox brands include its namesake bleach and cleaning products, Green Works(TM) natural cleaners, Armor All(R) and STP(R) auto-care products, Fresh Step(R) and Scoop Away(R) cat litter, dressings and sauces, Brita(R) water-filtration systems, Glad(R) bags, wraps and containers, and Burt’s Bees(R) natural personal care products. With 8,300 employees worldwide, the company manufactures products in more than two dozen countries and markets them in more than 100 countries. The company has subsidiaries in Switzerland, Luxembourg, Mexico, Venezuela, Chile, Hong Kong, Korea and Australia, among others. =============== C O L O M B I A =============== ECOPETROL: Net Income Up 176% to COP5.6-Bil. in First Half 2008 --------------------------------------------------------------- The Associated Press reports that Ecopetrol S.A. has released its financial results for the fist half of 2008. The company says profits grew almost three times in January to June of this year, the AP notes. The company reported net income of COP5.65 billion (US$3.2 million), an increase of 176% in the first six months of 2008, from COP2.04 billion (US$1.2 million) of last year, the AP relates. According to the AP, sales increased 69% to COP16.6 billion (US$9.4 million) in the first half and exports rose more than 200% to COP5.82 billion(US$3.3 million) as the price of crude soared in the global market. About Ecopetrol Ecopetrol S.A. is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. Ecopetrol produced 385,000 barrels a day of oil and gas in 2006 and has 330,000 barrels a day of refining capacity. In 2005, it produced about 60 percent of Colombia 's daily output. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Fitch Ratings affirmed Ecopetrol S.A.'s foreign and currency issuer default rating at 'BB+'. =================================== D O M I N I C A N R E P U B L I C =================================== TRICOM SA: Waived Attorney-Client Privilege, Bancredito Says ------------------------------------------------------------ Bancredito (Panama), S.A., says Tricom S.A., waived its attorney-client privilege when it disclosed the findings of the special committee report to its independent auditor. “As Tricom admits that the entire special committee report was received and read by [Sotomayor & Associates LLP], it therefore doesn't matter whether an attorney-client privilege once attached to the report as the disclosure to Sotomayor affected a waiver,” says Richard Smolev, Esq., at Kaye Scholer LLP, in New York, on behalf of Bancredito. Tricom previously urged the U.S. Bankruptcy Court for the Southern District of New York to deny the bank's proposed production of the special committee report because it is protected from disclosure by attorney-client and work product privileges. The report contains findings of the Special Committee appointed by Tricom's Board of Directors to investigate into a private placement of shares of the company's common stock in December 2002, wherein Bancredito allegedly loaned off US$70,000,000 to investors to purchase the stock. Mr. Smolev further asserts that the report is not protected by work product privilege since nothing in Tricom's public filings shows that the Special Committee was tasked to investigate possible claims against Tricom other than those that could have some effect on the accounting treatment of the transaction. “If the Court has doubts on this point, review of the report in camera would be appropriate to determine whether any portion of the report could qualify for protection under the doctrine of work product,” Mr. Smolev says. He adds, however, that the Court does not have to go that far. According to Mr. Smolev, the fact that Sotomayor was retained to assure the propriety of the public reporting of the transaction shows that the sharing of the report with Sotomayor was for a purpose other than litigation. “Considering an independent auditor's public watchdog function, Tricom effectively waived the work product by inviting the auditor to scrutinize its proposed treatment of the transaction,” Mr. Smolev asserts. As reported in the Troubled Company Reporter on July 8, 2008, Bancredito (Panama) S.A., asked the Court to compel the Tricom S.A. and its U.S. debtor-affiliates to produce the report prepared by the special committee appointed by Tricom S.A.'s Board of Directors. About Tricom S.A. Tricom, S.A., was incorporated in the Dominican Republic on January 25, 1988, as a Sociedad Anonima. Tricom is one of the pre-eminent full service communications services providers in the Dominican Republic. Headquartered in Santo Domingo, Tricom offers local, long distance, and mobile telephone services, cable television and broadband data transmission and Internet services, which are provided to more than 729,000 customers. Tricom's wireless network covers about 90% of the Dominican Republic's population. Tricom's local service network is 100% digital. The Company also owns interests in undersea fiber- optic cable networks that connect and transmit telecommunications signals between Central America, the Caribbean, the United States and Europe. Tricom USA, Inc., a wholly owned subsidiary of Tricom, was incorporated in Delaware in 1992, and at that time was known as Domtel Communications. A name change was effected in 1997 and Domtel Communications formally became Tricom USA, Inc. Tricom USA originates, transports and terminates international long-distance traffic using switching stations and other telecommunications equipment located in New York and Florida. Tricom S.A. and its U.S. affiliates filed for Chapter 11 protection on Feb. 29, 2008 (Bankr. S.D. N.Y. Case No. 08- 10720). Larren M. Nashelsky, Esq., at Morrison & Foerster LLP, in New York City, represent the Debtors. When the Debtors' filed for protection from their creditors, they listed total assets of US$327,600,000 and total debts of US$764,600,000. (Tricom Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000) TRICOM SA: Wants Exclusive Solicitation Extended to Dec. 31 ----------------------------------------------------------- Tricom S.A. and its U.S. affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to give them until Dec. 31, 2008, to solicit votes for their Joint Prepackaged Chapter 11 Plan of Reorganization. The Debtors' exclusive solicitation period will expire on Aug. 27, 2008. Section 1121(b) of the Bankruptcy Code provides for an initial period of 120 days after the Petition Date during which a debtor has the exclusive right to file a plan of reorganization. Section 1121(c) provides that if the debtor files a plan within the 120-day exclusive period, it has the balance of 180 days after the Petition Date to solicit and obtain acceptances of that plan. Section 1121(d) permits the court to extend a debtor's exclusive periods in which to filed a plan of reorganization and solicit acceptances of the plan upon a demonstration of cause. Larren Nashelsky, Esq., at Morrison & Foerster LLP, in New York, asserts that the proposed extension is justified by the Debtors' progress in resolving issues concerning their creditors and estates. Mr. Nashelsky relates that concurrent with the Debtors' efforts in resolving the disputes relating to the claims filed by Bancredit Cayman Limited and Bancredito (Panama), S.A., the Debtors have successfully transitioned to a Chapter 11 environment without serious disruption to their businesses or customer base, although the Debtors unfortunately remain a target for their competitors seeking to exploit the Debtors' current situation. At the same time, he adds that the Debtors have responded to the concerns of certain of their secured creditors occasioned by the unanticipated delay in confirming the Chapter 11 cases, and obtained appropriate relief from the Court, thereby assuring their continued support of the Plan. Mr. Nashelsky further relates that the Debtors promptly completed and filed their Schedules of Assets and Liabilities and Statements of Financial Affairs within the deadlines prescribed by the Court. A Claims Bar Date of July 8, 2008, was set, and the Debtors are now in the process of reconciling the proofs of claims filed against their estates. “In the face of extremely motivated and well financed opposition, over the course of the past four months, the Debtors have made good faith progress in advancing these Chapter 11 cases towards a successful reorganization,” Mr. Nashelsky says. “The Debtors have done all they can to address Plan feasibility issues while keeping these cases on track for confirmation.” According to Mr. Nashelsky, the outcome of the summary judgment motion to resolve the proposed estimation of claims of Bancredit Cayman and Bancredito may affect the Plan's feasibility and influence the course of the Debtors' reorganization. “If need be, the Debtors may elect to amend or modify the Plan, which could possibly entail a re-solicitation of acceptances,” he says. Results of the Debtors' solicitation, which concluded on February 28, 2008, showed that 100% of the holders of Class 3 Credit Suisse Existing Secured Claims and 97% of the holders of Class 6 Unsecured Financial Claims voted to accept the Plan. Allowing the Debtors' exclusive solicitation period to expire would serve only to impede their effort to confirm the Plan or any of its modification or amendment, Mr. Nashelsky contends. Expiration of the exclusive period would invite unwarranted speculation in the market and press, and embolden the Debtors' competitors to launch additional efforts to enhance their customer base at the Debtors' expense. Given the current competitive framework in which the Debtors operate, the Debtors can ill afford those consequences, he tells the Court. About Tricom S.A. Tricom, S.A., was incorporated in the Dominican Republic on Jan. 25, 1988, as a Sociedad Anonima. Tricom is one of the pre-eminent full service communications services providers in the Dominican Republic. Headquartered in Santo Domingo, Tricom offers local, long distance, and mobile telephone services, cable television and broadband data transmission and Internet services, which are provided to more than 729,000 customers. Tricom's wireless network covers about 90% of the Dominican Republic's population. Tricom's local service network is 100% digital. The company also owns interests in undersea fiber- optic cable networks that connect and transmit telecommunications signals between Central America, the Caribbean, the United States and Europe. Tricom USA, Inc., a wholly owned subsidiary of Tricom, was incorporated in Delaware in 1992, and at that time was known as Domtel Communications. A name change was effected in 1997 and Domtel Communications formally became Tricom USA, Inc. Tricom USA originates, transports and terminates international long-distance traffic using switching stations and other telecommunications equipment located in New York and Florida. Tricom S.A. and its U.S. affiliates filed for Chapter 11 protection on Feb. 29, 2008 (Bankr. S.D. N.Y. Case No. 08- 10720). Larren M. Nashelsky, Esq., at Morrison & Foerster LLP, in New York City, represent the Debtors. When the Debtors' filed for protection from their creditors, they listed total assets of US$327,600,000 and total debts of US$764,600,000. (Tricom Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * Fitch Says Dominican Electric Biz on a Brink of Financial Woe --------------------------------------------------------------- With the sector teetering on the brink of financial distress, investors are again asking if the recently re-elected Fernandez administration now has the political will and conviction to fix the system. The stand-by agreement with the International Monetary Fund, which provided a framework for the sector to reach financial self-sustainability while providing a more efficient, reliable and cost conscious electric service, expired January 2008 and has yet to be renewed. Unfortunately, little was achieved during the period the agreement was in place. So far, the re-elected government seems to be taking an approach that is likely to perpetuate the sector's instability, rather than to eliminate market distortions and enforce the new electricity law. Rolling blackouts and electricity shortages have become a way of life for people in the Dominican Republic. Extremely high electricity losses, the vast majority from theft, and low collections from end users have plagued the sector and resulted in perpetual electricity shortages. Although the country has more than sufficient generation capacity to meet total demand, the government's decision to cap electricity prices, tolerate theft by end users and give free electricity has resulted in insufficient funds for state-owned electric distribution companies to cover their operating costs and pay private sector generators for contracted capacity. Furthermore, soaring oil prices have translated into extremely high electricity prices, as the Dominican Republic is heavily reliant on oil to generate electricity. While subsidies have allowed state-owned distribution companies to honor their contracts with private sector generators, the situation is not sustainable over the longer term, as the government will continue to face pressure to prioritize investment in health and education at the expense of the electric sector. A reduction or elimination of subsidies would only lead to increasing electricity shortages, unless the government also raises prices and enforces the new electricity law. ================= G U A T E M A L A ================= BRITISH AIRWAYS: Fiscal 2008 First Quarter Profit Down 90.1% ------------------------------------------------------------ British Airways Plc's net profit for the three months ended June 30, 2008, declined 90.1% to net profit GBP27 million from GBP274 million in the same quarter last year. Operating profit for the current period dropped 86.8% to GBP35 million from GBP266 million in the comparable 2007 period. Meanwhile, revenue for the current quarter increased 2.8 % to GBP2,259 million from GBP2,197 million in the three months ended June 30, 2007. Passenger revenue was up 2.9% on capacity up 0.7%. Weaker consumer confidence, particularly in the UK and US, has resulted in reduced traffic volumes, and seat factor was down 3.4 points to 73.4%. Yields were up 6.9% on the back of price increases as a result of increasing fuel surcharge levels, the stronger Euro and good long haul premium traffic. Operating costs were up 15.2% with unit costs up 16.5%. Most costs were up but the biggest increase was fuel. After hedging, fuel costs were up almost 50% on last year. Employee costs rose by 2.4% mainly due to pay awards, partially offset by lower pension service costs. Engineering costs were up 7.3% because of higher freighter costs and changes in inventory provisions. Landing fees and en-route charges were up 6.7% mainly because of the stronger Euro. Handling charges and other operating costs were up 8.5% due to costs associated with the delayed moves to Terminal 5, cargo handling and trucking charges, and the stronger Euro. Accommodation, ground equipment and IT costs were up 5.4%, predominantly due to property costs, including rent and rate increases. Cash position at the end of the quarter was under GBP2 billion, up GBP91 million since March. Net debt was GBP1.1 billion, GBP206 million lower than at year end. The tax rate for the quarter was 27%. Commenting on the results, British Airways' chief executive Willie Walsh, said, “We are in the worst trading environment the industry has ever faced. The combination of unprecedented oil prices, economic slowdown and weaker consumer confidence has led to substantially lower first quarter profits.” Mr. Walsh noted, “Fuel prices have doubled in the past year. A successful hedging program mitigated the impact but nevertheless fuel costs at GBP706 million were up GBP233 million in the quarter. We expect our fuel bill to top GBP3 billion this year -- the equivalent of more than GBP8 million every day.” “We are well prepared. Since year end we have adapted our plans to reflect the fast moving and challenging conditions. We have reduced capacity in the winter schedule without compromising our network and at the same time we have the flexibility in the business to capitalize when conditions improve. We have revised our capital expenditure plans and are focusing on cost control,” Mr. Walsh said. Capacity British Airways ordered six Boeing 777-300ER aircraft, and placed options for four more. The B777-300ER is 23% more fuel efficient than the Boeing 747. The aircraft is expected to provide the carrier greater flexibility in the longhaul fleet following delays to its Boeing 787 deliveries. The company also ordered 24 B787s and 12 Airbus A380s, for delivery between 2010 and 2014, to replace some of its oldest aircraft and expand its fleet. Trading Outlook Due to very difficult trading conditions on the back of high oil prices and a weak economic environment, British Airways expects revenue to grow by around 3%, down from the previous guidance of 4% increase. Non-fuel costs are targeted to rise 3% and fuel is expected to rise around GBP1 billion against last year, at current fuel prices and exchange rates, an increase of some 50%. As a result of further hedging, fuel cost guidance of a GBP16 million profit impact for every US$1 change in the crude oil price has reduced to GBP8 million. Iberia Merger Talks British Airways and Iberia commenced talks last month with a view to an all-share merger between the two companies. The negotiations are supported unanimously by the boards of both companies. The British Airways and Iberia brands would be retained as part of a combined group. British Airways acquired a nine per cent shareholding in Iberia in 1999 and has recently increased its shareholding to 13.15 per cent. Meanwhile, Iberia recently acquired a 2.99 per cent direct shareholding in British Airways and financial exposure to a further 6.99 per cent through contracts for difference linked to British Airways' share price. It is expected that it will take several months to reach agreement on the terms of the merger and to finalize a joint business and integration plan for the combined group. Both parties are confident of securing regulatory approval. The European Union has already granted British Airways and Iberia approval to co-operate widely. About Iberia SA Headquartered in Madrid, Iberia Lineas Aereas de Espana SA -- http://www.iberia.com/-- engages in the transport of passengers and cargo, aircraft maintenance and handling services in airports. The Transport of Passengers and Cargo division operates 150 aircrafts. It provides transport services to the countries in Europe and Latin America. Iberia Lineas Aereas de Espana SA is a member of the Oneworld alliance. About British Airways Headquartered in Harmondsworth, England, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * British Airways Plc continues to carry Moody's “Ba1” senior unsecured debt rating with a stable outlook. =============== H O N D U R A S =============== DIGICEL LTD: Wins WiMAX License in Honduras ------------------------------------------- Cosan SA Industria & Comercio and Sao Martinho SA, Brazil's sugar and ethanol industry association, known as Unica, is in talks to tap a law firm to challenge a U.S. tariff on Brazilian ethanol imports, Bloomberg News reports, citing Marcos Jank, president of the association. According to Bloomberg, Cosan's stocks slided 1.4% to BRL30.79. Headquartered in Piracicaba, Brazil, Cosan S.A. Industria e Comercio produces sugar and ethanol. The company cultivates harvests and processes sugarcane, the main raw material for sugar and ethanol manufacturing. With 17 manufacturing units and two port terminals in the city of Santos, Cosan says it is currently the largest individual group in the world in terms of sugarcane byproducts manufacturing. With capacity to grind more than 40 million tonnes of sugarcane, the group represents 12% of overall production in the mid-southern region of the country. * * * As reported in the Troubled Company Reporter-Latin America on April 29, 2008, Moody's Investors Service placed the Ba2 local currency corporate family rating and foreign currency senior unsecured rating, as well as the A1.br Brazilian national scale corporate family rating of Cosan S.A. Industria e Comercio on review for possible downgrade. TCR-LA related on April 28, 2008, that Standard & Poor's Ratings Services placed its 'BB' long-term corporate credit rating on Cosan S.A. Industria e Comercio, as well as its 'BB' rating on the company's outstanding debt issues, which amount to US$950 million, on CreditWatch with negative implications. At the same time, S&P placed its 'BB' long-term corporate credit rating on Bermudas-based sugar-cane processor Cosan Ltd. on CreditWatch with negative implications. ============= J A M A I C A ============= CASH PLUS: Court Names Monty Kandekore as Provisional Liquidator ---------------------------------------------------------------- The Jamaica Observer reports that the Supreme Court of Judicature in Jamaica has appointed L. Monty Kandekore, the Trustee in Bankruptcy, as Cash Plus Limited's Provisional Liquidator, effective July 18. According to The Observer, the court had appointed Mr. Kandekore as Cash Plus Group Limited's Provisional Liquidator on June 27, after the Premier League Clubs Association filed an application for the wind up of Cash Plus Group when the firm failed to honor commitments made with regard to the sponsorship of the National Premier League Football Competition. The Observer relates that Mr. Kandekore will be responsible for disposing the assets of Cash Plus Group and Cash Plus Limited to realize financing to pay relevant claims that may be made against the two firms. The report says that Court-Appointed Co-Receiver-Manager, Kevin Bandoian, will determine the existence and value of assets that Cash Plus Limited and its affiliates own. He will also determine what is owed to creditors and lenders. He has jurisdiction over the assets of Cash Plus Limited's affiliates, except Cash Plus Group, until the court decides otherwise. Mr. Bandoian will present before the court a final report on Cash Plus Limited by Aug. 8, 2008. The Observer relates that Mr. Kandekore has the authority to dispose of Cash Plus Group's and Cash Plus Limited's assets. Mr. Kandekore will announce payments, if any, in due course. About Cash Plus Group Cash Plus Group Limited holds 50% of the estimated real assets of Cash Plus Limited, which collected the bulk of lenders funds. Cash Plus Limited was the major source of financing for Cash Plus Group's acquisitions and investments. About Cash Plus Limited 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 2008, the Supreme Court of Jamaica placed Cash Plus in receivership. Cash Plus admitted that it wouldn't be able to pay its lenders until April 14. The firm has 40,000 lenders with loans totaling J$4 billion. Cash Plus was unable to repay its investors. The Financial Services Commission said it was informed by the attorney acting on behalf of Cash Plus that the investment club lacked the funds to start the repayment of the principal and interest owing to its investors. PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as joint receiver-manager for Cash Plus. =========== M E X I C O =========== ANIXTER INT'L: Acquires QSN Industries and Quality Screw Assets --------------------------------------------------------------- Anixter International Inc. has acquired the assets and operations of QSN Industries, Inc., and all of the outstanding shares of Quality Screw de Mexico SA. The QSN Industries and Quality Screw de Mexico operations will complement Anixter's product offering with a broad array of value-added services and supply chain management programs to Original Equipment Manufacturers (OEMs) in a number of vertical markets. As a part of this transaction, Anixter will pay approximately US$80 million in cash and assume trade liabilities, for all of the assets and operations of the two companies. Combined annualized sales for these businesses are expected to be over US$100 million in 2008. Commenting on the acquisition, Anixter's President and Chief Executive Officer, Bob Eck said, “We are pleased to have acquired the QSN and QSM operations as well as the excellent team that has successfully led these businesses. These acquisitions leverage our existing infrastructure and bring an important new critical mass to our North American OEM Supply business by adding locations in Mexico as well as manufacturing capacity. The manufacturing capabilities acquired with the QSN operations will provide Anixter with enhanced flexibility to meet supply chain commitments where quick turnaround times are important to rapidly changing customer requirements. This strong and robust operational model will better position us to drive future organic growth.” “We anticipate that this acquisition will be immediately accretive to earnings and add 7 to 9 cents to diluted earnings per share during our first full year of ownership,” Mr. Eck added. “When combined with our existing business in North America, we anticipate annual OEM Supply revenues of over US$600 million in this region over the next year.” Based near Chicago, Illinois, QSN Industries Inc. is a distributor and manufacturer of fasteners for the OEM marketplace. The company operates 13 facilities in Alabama, Arizona, Georgia, Illinois, Michigan, Ohio, South Carolina, Tennessee and Texas. Its sole manufacturing facility is located in Wood Dale, Illinois. Headquartered in Aguascalientes, Mexico, Quality Screw de Mexico SA is a distributor of fasteners with a total of five operational sites in Mexico. About Anixter Anixter International Inc. -- http://www.anixter.com/-- is the world's largest distributor of communication products and electrical and electronic wire and cable, and a leading distributor of fasteners and other small parts ("C" class inventory components) to original equipment manufacturers. The company has nearly US$725 million in inventory of more than 325,000 products, logistics network of 197 warehouses with more than 5 million square feet of space. It has operations in Latin American countries including Mexico, Costa Rica, Brazil and Chile. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 2, 2007, Fitch Ratings affirmed these ratings for Anixter International Inc. and its wholly owned operating subsidiary, Anixter Inc.: Anixter International Inc. -- Issuer Default Rating 'BB+'; -- Senior unsecured debt 'BB-'. Anixter Inc. -- Issuer Default Rating 'BB+'; -- Senior unsecured notes 'BB+'; -- Senior unsecured bank credit facility at 'BB+'. FRONTIER AIR: Gets Alternative Commitment for US$75MM DIP Loan -------------------------------------------------------------- Frontier Airlines Holdings, Inc., is moving forward with an alternate transaction for postpetition debtor-in-possession financing, the company said in a statement. Republic Airways Holdings, Inc., Credit Suisse Securities, through its affiliates, and AQR Capital, each a member of the Unsecured Creditors Committee in Frontier's Chapter 11 Bankruptcy cases, are offering Frontier up to US$75,000,000 in DIP financing, with an immediate firm commitment and funding of US$30,000,000. According to the statement, the new DIP facility, provides Frontier with lower financing costs, less restrictive covenants and greater flexibility to pursue strategic opportunities without being constrained by more restrictive DIP provisions. The alternate DIP facility is subject to bankruptcy court approval and to various conditions. The Lenders provided the Company with this improved DIP facility following Frontier's successful efforts to significantly improve its liquidity. Over the past two weeks, Frontier announced the Perseus US$75,000,000 DIP financing, up to US$80,000,000 in additional liquidity through aircraft sales to VTB Leasing for onward lease to Rossiya Airlines and other aircraft sale leaseback transactions. “The agreement by members of our Unsecured Creditors Committee to extend this financing commitment is a tremendous vote of confidence in our Company and its business plan,” said Sean Menke, Frontier president and chief executive officer. “After a careful examination of this offer against the offer Perseus provided last week, we believe this new agreement offers immediate access to greater liquidity under more favorable terms.” Upon court approval, the Lenders will provide immediate funding of US$30,000,000 to support Frontier's working capital needs. The Lenders will consider funding an additional US$45,000,000 subject to the terms and conditions of the DIP Credit Agreement. The proposed DIP funding, coupled with Frontier's recent announcements of aircraft sales and sale leasebacks, is expected to substantially increase Frontier's cash position and provide sufficient working capital for the company's operations, as well as significant staying power in the market. These announced liquidity initiatives allow the company to continue to execute upon its business improvements, focusing on fleet deployment, cost savings and revenue enhancements. Frontier will continue to evaluate strategic opportunities in light of this new DIP facility and the anticipated significant improvement to Frontier's balance sheet. About Frontier Airlines Inc. Headquartered in Denver, Colorado, Frontier Airlines Inc. -- http://www.frontierairlines.com/-- provide air transportation for passengers and freight. They operate jet service carriers linking their Denver, Colorado hub to 46 cities coast-to-coast, 8 cities in Mexico, and 1 city in Canada, well as provide service from other non-hub cities, including service from 10 non-hub cities to Mexico. As of May 18, 2007, they operated 59 jets, including 49 Airbus A319s and 10 Airbus A318s. The Debtor and its debtor-affiliates filed for Chapter 11 protection on April 10, 2008, (Bankr. S.D. N.Y. Case No.: 08- 11297 thru 08-11299.) Hugh R. McCullough, Esq. at Davis Polk & Wardwell represent the Debtors in their restructuring efforts. Togul, Segal & Segal LLP is Debtors' Conflicts Counsel, Faegre & Benson LLP is the Debtors' Special Counsel, and Kekst and Company is the Debtors' Communications Advisors. At Dec. 31, 2007, Frontier Airlines Holdings Inc. and its subsidiaries' total assets was US$1,126,748,000 and total debts was US$933,176,000. MOVIE GALLERY: India-Based Valuable Group Purchases MovieBeam ------------------------------------------------------------- Movie Gallery Inc. and its debtor-affiliates' MovieBeam streaming service has been purchased for an undisclosed price by Valuable Group, a company based in India, through Dar Capital -- a private equity investment advisory firm, Video Business reports. Movie Gallery sold in May 2008, tangible assets and all of M.G. Digital LLC's ownership rights to, and interest in, the intellectual property used solely in connection with the MovieBeam service, to Dar Capital for US$2,250,000, pursuant to the terms of a purchase agreement. Valuable Group is affiliated with satellite-based digital cinema network UFO Moviez. Valuable Group has recently expanded its office in Los Angeles, California, and launched a state-of-the- art development facility in Seattle, Washington, according to the report. “Through this acquisition, Valuable will further establish itself as a leader in the media and entertainment space, allowing us to deliver ethnic and Hollywood content to homes and the hospitality industry worldwide,” Valuable Group head Sanjay Gaikwad told Video Business. Mr. Gaikwad disclosed that Valuable Group has earmarked an investment of more than US$100,000,000 over the next two years to relaunch an “improved version” of MovieBeam in North America, the United Kingdom and other markets. Valuable Group plans to introduce the service in other three unnamed markets by the end of 2008, the report says. About Movie Gallery Based in Dothan, Alabama, Movie Gallery Inc. -- http://www.moviegallery.com/-- is a home entertainment specialty retailer. The company owns and operates 4,600 retail stores that rent and sell DVDs, videocassettes and video games. The company has operations in Mexico. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to 07-33853). Anup Sathy, Esq., Marc J. Carmel, Esq., and Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq., at Kutak Rock LLP, is the Debtors' local counsel. The Debtors' claims & balloting agent is Kurtzman Carson Consultants LLC. When the Debtors' filed for protection from their creditors, they listed total assets of US$891,993,000 and total liabilities of US$1,419,215,000. The Official Committee of Unsecured Creditors has selected Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B. Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl & Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at Miles & Stockbridge PC, as its local counsel. The U.S. Bankruptcy Court for the Eastern District of Virginia confirmed the Debtors' Second Amended Chapter 11 Plan of Reorganization on April 9, 2008. (Movie Gallery Bankruptcy News Issue No. 32; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) QUAKER FABRIC: Court Approves 2nd Amended Disclosure Statement -------------------------------------------------------------- The Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware approved a second amended disclosure statement explaining a second amended joint Chapter 11 plan of liquidation filed by Quaker Fabric Corporation and its debtor- affiliates on July 15, 2008. He held that the Debtors' amended plan contains adequate information within the meaning of Section 1125 of the Bankruptcy Code. A hearing is set for Aug. 27, 2008, at 11:30 a.m. (Eastern Time) to consider confirmation of the Debtors' amended plan. Objections, if any, are due Aug. 22, 2008. Judge Gross also approved procedures proposed by the Debtors for the solicitation and tabulation of plan votes. Deadline for voting on the amended plan is on Aug. 20, 2008. As reported in the Troubled Company Reporter July 18, 2008, the amended Plan contemplates the liquidation of assets of the Debtors for the benefit of their creditors and the appointment of a liquidating agent. The Debtors remind the Court that they have sold some or all assets to certain purchasers including: -- Gordon Brother Group LLC acquired substantially all of the Debtors' assets for US$27 million; -- Atlantis Charter School bought 66 acres of undeveloped land (Bleachery Pond Property) located in Fall River, Massachusetts for US$2.6 million; and -- E & E Co. Ltd. got the Tupelo Lee Industrial Park in Verona, Mississippi for at US$175,000. The proceeds of the sale will be used to pay indebtedness owed to lenders headed by Bank of America N.A. under a revolving credit agreement entered into by the Debtors and bank in 2006. Liquidation of Assets The Debtors estimate they will have at least US$400,000 in cash and a book value of US$4.3 million in uncollected accounts receivable by the plan's effective date. A liquidating agent will reduce non-cash assets of the Debtors to cash to make distributions and consummate the plan. The liquidating trustee is expected to sell, assign, transfer and, to the possible extent, dispose of the Debtors' respective assets at public auction after the plan's effective date. RAS Management Advisors LLC will serve as liquidating agent for the Debtors. Equity of Non-Debtor Subsidiaries The Debtors conducted certain foreign operations through their non-debtor subsidiaries comprised of (i) Quaker Fabric Mexico S.A. de C.V., (ii) Quaker Textil do Brasil Ltda., and Quaker Textile Corporation. As of the Debtors' bankruptcy filing, the operations and affairs of each of the non-debtor subsidiaries have been liquidated. The Debtors have received at least US$1.1 million as dividend from one of their non-debtor subsidiaries. Initial Distribution On the plan's effective date, the liquidating agent, on behalf of the Debtors, will pay in cash in full all (i) administrative expense claims, (ii) priority tax claims, and (iii) secured claims. Holders of unsecured claims will receive their pro rata share of available cash, if any. The amended plan classifies interests against and liens in the Debtors in five classes. The classification of interests and claims are: Treatment of Claims and Interests Types of Estimated Estimated Class Claims Treatment Amount Recovery ----- -------- --------- ---------- --------- unclassified administrative US$1,600,000 100% claims unclassified priority tax US$200,000 100% claims 1 priority unimpaired US$155,386 100% claims 2 secured unimpaired US$0 N/A claims 3 WARN Act impaired US$6,000,000 5%-15% claims 4 unsecured impaired US$25,000,000 16% claims 5 equity impaired Not Estimated 0% interest Holders of Class 1 allowed priority claims will receive in full satisfaction of and exchange for their claim (i) the amount of the allowed priority claim, without interest, in cash after the Plan's effective date, or (ii) other treatment as may be agreed upon in writing by the holder, the Debtors and the Committee. After the Plan's effective date, each holder of Class 2 allowed secured claims will also receive in full satisfaction of and in exchange for the claims, either (i) cash equal to the amount of the allowed secured claims, or (ii) a return of the collateral that secures the allowed secured claims. Holders of Class 3 WARN Act claims will receive (i) an allowed administrative expense claim of US$100,000, (ii) an additional distribution of US$200,000 to be paid from available cash, and (iii) 33% share of all distributions to Class 3. Holders of Class 4 allowed unsecured claims will get their pro rata share of nay cash distribution from the estate assets to Class 4. Class 4 was expected to recover 10% under the earlier version of the proponent's plans. All equity interest of the Debtors will be canceled, and holder will not receive any distribution under the Plan. A full-text copy of the amended disclosure statement is available for free at: http://ResearchArchives.com/t/s?2f93 A full-text copy of the second amended joint Chapter 11 plan of liquidation is available for free at: http://ResearchArchives.com/t/s?2f94 About Quaker Fabric Based in Fall River, Mass., Quaker Fabric Corp. (NASDAQ: QFAB) -- http://www.quakerfabric.com/-- designs, manufactures, and markets woven upholstery fabrics primarily for residential furniture manufacturers and jobbers. It also develops and manufactures specialty yarns, including chenille, taslan, and spun products for use in the production of its fabrics, as well as for sale to distributors of craft yarns, and manufacturers of homefurnishings and other products. The company is one of the largest producers of Jacquard upholstery fabrics. Quaker Fabric sells its products through sales representatives andindependent commissioned sales agents in the United States, Canada, Mexico, and internationally. The company and its affiliate, Quaker Fabric Corporation of Fall River, filed for chapter 11 protection on Aug. 16, 2007 (Bankr. D. Del. Case No. 07-11146). John D. Sigel, Esq. at Wilmer Cutler Pickering Hale and Dorr LLP and Joel A. Waite, Esq. at Young Conaway Stargatt & Taylor LLP are co-counsels to the Debtors. Epiq Bankruptcy Solutions is the Debtors' claims agent. The Official Committee of Unsecured Creditors has selected Shumaker, Loop & Kendrick, LLP, as its bankruptcy counsel and Benesch, Friedlander, Coplan & Aronoff, LLP, as co- counsel. The Debtors' schedules reflect total assets of US$41,375,191 and total liabilities of US$54,435,354. REVLON INC: June 30 Balance Sheet Upside-Down by US$1.06 Billion ---------------------------------------------------------------- Revlon Inc. reported Thursday final results for the second quarter ending June 30, 2008. At June 30, 2008, the company's consolidated balance sheet showed US$883.7 million in total assets and US$1.94 billion in total liabilities, resulting in a US$1.06 billion stockholders' deficit. The company reported net income of US$19.9 million for the second quarter ended June 30, 2008, compared with a net loss of US$11.3 million in the same period last year. Net sales in the second quarter of 2008 increased by 7.8% to US$376.4 million, compared to net sales of US$349.2 million in the second quarter of 2007. Excluding the favorable impact of foreign currency fluctuations, net sales in the second quarter increased 5.5%. Revlon president and chief executive officer, David Kennedy, said, “Our strong results in the second quarter continue to validate our strategy. We continue to focus on the key drivers, including: innovative, high-quality, consumer-preferred new products; effective, integrated brand communication; competitive levels of advertising and promotion; and superb execution with our retail partners, which build our brands, particularly the Revlon brand, and generate sustainable, profitable sales growth. We also remain focused on controlling our costs and driving efficiencies throughout our organization, which continue to positively impact our margins and cash flows.” Operating income was US$59.4 million in the second quarter of 2008, versus US$16.9 million in the second quarter of 2007. Adjusted EBITDA was US$81.7 million in the second quarter of 2008, compared to US$42.0 million in the same period last year. Operating income, Adjusted EBITDA and net income in the second quarter of 2008 include a net gain of US$5.9 million, US$6.0 million and US$4.9 million, respectively, related to the sale of a facility in Mexico. The expected full year impact of the sale of the facility in Mexico on operating income, Adjusted EBITDA and net income will be a net gain of US$4.3 million, US$4.9 million and US$3.5 million, respectively, after recording restructuring and other related charges in the second half of the year. Six Months Results Net sales in the first six months of 2008 increased 2.8% to US$696.8 million, compared to net sales of US$677.8 million in the first six months of 2007. Excluding the favorable impact of foreign currency fluctuations, net sales in the first six months were essentially unchanged versus year-ago. Operating income was US$91.9 million in the first six months of 2008, versus US$19.9 million in the first six months of 2007. Net income in the first six months of 2008 was US$17.4 million, compared with a net loss of US$46.5 million in the first six months of 2007. Adjusted EBITDA was US$139.8 million in the first six months of 2008, compared to US$74.3 million in the same period last year. Operating income, Adjusted EBITDA and net income in the first six months of 2008 include a net gain of US$5.7 million, US$5.9 million and US$4.9 million, respectively, related to the sale of a facility in Mexico. Operating income, Adjusted EBITDA and net income in the first six months of 2008 also include a net gain of US$5.9 million related to the sale of a non-core trademark. Sale of Non-Core Brazilian Brands On July 28, 2008, Revlon completed the sale of its non-core Bozzano brand, a leading men's hair care and shaving line of products, and certain other non-core brands, which are sold only in the Brazilian market. The transaction was effected through the sale of the company's Brazilian subsidiary, Ceil Comercio E Distribuidora Ltda. to Hypermarcas S.A., a Brazilian diversified consumer products corporation. The purchase price was approximately US$104.0 million in cash, plus approximately US$3.0 million in cash on Ceil's balance sheet. The company expects net proceeds, after payment of taxes and transaction costs, to be approximately US$94.0 million. The company is currently evaluating the most appropriate use of net proceeds from this transaction. In the results for the third quarter of 2008, the company expects to record a one-time gain from this transaction of approximately US$50.0 million. The company expects that Ceil's net sales, operating income and Adjusted EBITDA would not be material to the ongoing financial results of Revlon, Inc. Revlon brand color cosmetics will continue to be marketed in Brazil through its current third party distributor. At June 30, 2008, the company had a liquidity position of US$161.3 million, consisting of cash and cash equivalents (net of any outstanding checks) of US$22.5 million, as well as US$138.8 million in available borrowings under the 2006 Revolving Credit Facility. At June 30, 2008, the company had long-term debt outstanding of US$1.40, compared with US$1.44 billion at Dec. 31, 2007. Reverse Stock Split As previously disclosed, Revlon intends to effect the 1-for-10 reverse stock split of its Class A and Class B common stock sometime in the third quarter of 2008. In accordance with NYSE standards, Revlon has six months from April 11, 2008, to bring the share price of its Class A common stock and its 30-trading day average closing price to at least US$1.00. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2008, are available for free at http://researcharchives.com/t/s?305d About Revlon Inc. Headquartered in New York City, Revlon Inc. (NYSE: REV) -- http://www.revlon.com/-- is a worldwide cosmetics, hair color, beauty tools, fragrances, skincare, anti-perspirants/deodorants and personal care products company. The company's brands, which are sold worldwide, include Revlon(R), Almay(R), Mitchum(R), Charlie(R), Bozzano(R), Gatineau(R) and Ultima II(R). The company's Latin American operations are located in Argentina, Brazil, Chile, Mexico, and Venezuela. SANLUIS CORP: Unit Launches New Quadratech Suspension System ------------------------------------------------------------ Sanluis Corporacion S.A.B. de C.V. subsidiary, Sanluis Rassini, has launched its suspension system for light vehicles based on its new Quadratech techonology. The Quadratech system is an important technological innovation developed by the company's engineering team and its main objective is to reduce the total weight of the vehicle by means of a suspension system 20% lighter than the existing systems, thus achieving a greater efficiency in fuel consumption. Additionally, it provides greater comfort and safety for the driver. Rassini Suspensions Chief Executive Officer, Enrique Villasenor said, “Once again, SANLUIS Rassini proves its permanent value creation focus towards its customers and final users by developing an innovative technology for the automotive industry capable of enhancing fuel consumption in light vehicles.” The Quadratech technology has been patented worldwide by Sanluis Rassini, and for its first commercial application, an alliance was made with Firestone Industrial Products, LLC, a worldwide leader in the design and manufacturing of pneumatic components. This company will share its experience in air suspension components. Sanluis Rassini is a producer of high-tech brake components for OEMs, designer and manufacturer of leaf springs for light vehicles. It has seven production sites strategically distributed in the U.S.A., Mexico, and Brazil; a technical center in Michigan, U.S.A.; headquarters in Mexico City, and liaison offices in Stuttgart, Germany and Shanghai, China. Headquartered in Mexico, Sanluis Corporacion, S.A.B De C.V., is formerly known as Sanluis Corporacion S.A. de C.V. The group's principal activities are manufacturing and selling automobile suspension parts and brake components. The Suspensions business segment includes selling multi-leaf springs and parabolic leaf springs, coil springs, torsion bars and stabilizing bars. The Brakes business segment includes selling rotors, disks, drums and hubs for brake systems. Clients include DaimlerChrysler, Ford, General Motors, Agrale, Honda, Mitsubishi, Nissan, Scania, Toyota, Volkswagen, Dana, Delphi, PBR, and TRW. It operates mainly in the United States, Mexico, Brazil and Canada. * * * As reported in the Troubled Company Reporter-Latin America on June 19, 2008, Fitch Ratings placed on rating watch negative on SANLUIS Corporacion, S.A. de C.V.'s 'B-' foreign and local currency issuer default rating, 'B-' senior secured restructured credit facility rating, its 'RR4' recovering rating, 'CCC+' mandatory convertible notes rating, 'CCC+' debenture notes rating, and its 'RR5' recovery rating. SEMGROUP LP: 18 Parties Balk at US$250,000,000 BofA DIP Loan ------------------------------------------------------------ A total of 18 parties-in-interest object to the request of SemGroup L.P. and its debtor-affiliates to obtain US$250,000,000 of senior secured superpriority postpetition financing from Bank of America. The parties-in-interest are: * Ad Hoc Committee of Unsecured Creditors w/ Senior Notes; * Alon USA, LP; * Cardinal Engineering, Inc.; * Central Crude Corporation and Redwing Gas Systems Inc.; * CHS, Inc.; * General Electric Capital Corporation; * JMA Energy Company, L.L.C.; * LCS Production Company, and the Texas operators; * Merrill Lynch Capital Corporation and ML Commodities, Inc.; * Murfin Drilling Company, Inc.; * New Dominion, L.L.C.; * Prima Exploration, Inc.; * RZB Finance LLC; * Samson Resources Company, and affiliates; * Sunoco, Inc.; * The SemCrude US Term Lender Group; * Veenker Resources, Inc.; and * Williams NGL Marketing, LLC, and affiliates. According to Kimberly E. C. Lawson, Esq., at Reed Smith LLP, in Wilmington, Delaware, GECC, the administrative agent for the Debtors' prepetition lenders, does not question the necessity for the Debtors to obtain DIP Facility, the financing terms set forth in the DIP Term Sheet. However, GECC identifies two problems that precludes the Court's approval of the DIP Facility: (1) the proposed final DIP Agreement contains negative covenants that the Debtors are in position to honor; and (2) the proposed Interim Order makes no provision for the adequate protection of the interest that GECC may have in a portion of the Cash Collateral, based on the Debtors' 11th hour upstreaming of funds borrowed by SemCrude Pipeline, LLC, under the prepetition GECC Credit Agreement. Ms. Lawson contended that the ultimate decision-making authority over White Cliffs Pipeline, LLC, a non-debtor subsidiary exercised by PE Pipeline LLC, is unclear why the Debtors sought to prevent White Cliffs from selling its assets, enter into particular contracts, or incur more than a designated amount of indebtedness. Accordingly, GECC asked the Court to deny the DIP Financing Motion to the extent that the Interim Order and the Final DIP Agreement are not modified to resolve its objections. RZB Finance stated that the DIP Financing Motion will improperly force it and other working capital lenders to subsidize dubious operations without adequate protection for the benefit of third parties. RZB Finance asserts that the Debtors must demonstrate adequate protection of RZB Finance's interest. Alon, Central Crude, CHS, JMA, LCS Production, Murfin, New Dominion, Prima, Samson, Sunoco, Veenker, and Williams related that the Debtors possess certain reclaimed goods valued at more than US$80,000,000 in the aggregate. The Vendors complained that it is not clear whether the proposed liens in the reclamation goods are subject to any of the vendors' rights to reclaim the Reclaimed Goods. The Term Lenders do not consent to the priming of their liens. They argued that there is no authority that allows other parties to consent to release US$250,000,000 on the Term Lenders' behalf. Merrill Lynch objected to the DIP Financing Motion to the extent the Motion contains inadequate disclosure of the relevant information. Merrill Lynch insisted that the Debtors have failed to satisfy their burden of establishing that the terms of the proposed emergency financing are necessary and reasonable, under Section 364 of the Bankruptcy Code. In addition, Merrill Lynch complained that the Motion fails to provide key information, such as budgets setting forth the proposed uses for the funding, the events of default, as well as the value of collateral securing the proposed adequate protection replacement liens. Cardinal, which provides environmental engineering, civil engineering and surveying services to the Debtors, objected to the DIP Financing motion, asserting that the Motion prejudices its ability to file and perfect any materialman's and mechanic's lien. Further, Cardinal said granting the Motion will abrogate its rights under applicable state law, by not allowing it to perfect the liens. The Ad Hoc Committee of Unsecured Creditors Holding Senior Notes sought to preserve the status quo pending the formation of a statutory fiduciary for all unsecured creditors, including vendors and bondholders alike. The Ad Hoc Committee stated that the Debtors' have not carried their burden of demonstrating “emergency” for incurring US$150,000,000 of additional loans on short notice. The Ad Hoc Committee requested a brief continuance of the Emergency DIP Motion until Aug. 8, 2008, for a statutory creditors' committee for unsecured creditors to be heard. * * * Judge Shannon postponed his ruling on the Debtors' DIP Financing request until Aug. 5, 2008, to give additional time for parties- in-interest to present further legal documentation in support of their objection to the request. Briefs in connection with the DIP Financing motion was due Aug. 4, 2008. The Debtors filed with the Court a draft of the DIP Credit Agreement, a copy of which is available for free at: http://bankrupt.com/misc/semgroupfinaldippact.pdf Motion to Access BofA's US$250,000,000 DIP Fund The Troubled Company Reporter said on Aug. 1, 2008, that pending final approval of the request, the Debtors sought authority, on an interim basis, to borrow up to US$150,000,000 under the DIP facility to allow them to (i) meet all of their administrative obligations during the early stages of their chapter 11 cases, and (ii) purchase inventory critical to the operation of their businesses. About SemGroup L.P. SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream service company providing the energy industry means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminaling and storing energy. SemGroup serves customers in the United States, Canada, Mexico, Wales, Switzerland and Vietnam. SemMaterials Mexico, S. de R.L. de C.V., is a major subsidiary of the company. SemGroup L.P. and its debtor-affiliates filed for Chapter 11 protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08- 11525). These represent the Debtors' restructuring efforts: John H. Knight, Esq., L. Katherine Good, Esq. and Mark D. Collins, Esq. at Richards Layton & Finger; Harvey R. Miller, Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil, Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A. Mayer, Esq. at Weil Gotshal & Manges LLP. Kurtzman Carson Consultants L.L.C. is the Debtors' claims agent. The Debtors' financial advisors are The Blackstone Group L.P. and A.P. Services LLC. Margot B. Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye Scholer LLP; and Laurie Selber Silverstein, Esq., at Potter Anderson & Corroon LLP, represent the Debtors' prepetition lenders. SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude Company, sought protection under the Companies' Creditors Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc. The CCAA stay expires on Aug. 20, 2008. SemGroup L.P.'s consolidated, unaudited financial conditions as of June 30, 2007, showed US$5,429,038,000 in total assets and US$5,033,214,000 in total debts. In their petition, they showed more than US$1,000,000,000 in estimated total assets and more than US$1,000,000,000 in total debts. (SemGoup Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) =========== P A N A M A =========== HUNTSMAN CORP Lead Plaintiff Application Deadline is Sept. 15 -------------------------------------------------------------- On July 17, 2008, the Law Offices Bernard M. Gross, P.C., commenced a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of Huntsman Corporation common stock between May 14, 2008, and June 18, 2008, inclusive, seeking to pursue remedies under the Securities Exchange Act of 1934 against defendants Hexion Specialty Chemicals, Inc., Craig Morrison and Joshua Harris (Class Action Reporter, July 21, 2008). Interested parties may move the court no later than Sept. 15, 2008, for lead plaintiff appointment and not Sept. 17, 2008, as previously stated by the law firm. The complaint alleges that on July 12, 2007, Hexion announced an agreement to acquire all Huntsman common stock in a merger transaction for US$28/share. The transaction was to close during the second quarter 2008 pending receipt of regulatory approvals and satisfaction of other closing conditions. Huntsman shareholders approved the transaction on October 16, 2007. On May 14, 2008, Hexion disclosed that it agreed to allow additional time to obtain the regulatory approvals. Unknown to the public, defendants had determined to abort the merger and took steps to abrogate the Merger Agreement. The defendants retained the services of Duff & Phelps to render an opinion that the combined entity lacked financial viability. On June 18, 2008, Duff sent a letter to the Board of Directors of Hexion opining that the combined company's assets would not exceed its liabilities, that it would not have the ability to pay its total debts and liabilities as they become due and that it would have an unreasonably small amount of capital. On that same date, defendants filed a complaint in the Delaware Court of Chancery, seeking abrogation of the Merger Agreement. The reaction in the marketplace was devastating to the price of Huntsman's common stock. On June 19, 2008, the first day of trading after the June 18, 2008 actions by Hexion, the market price of Huntsman common stock fell approximately US$8, or 40%, from US$20.86 to close at US$12.84, on enormous volume of approximately 43 million shares. The plaintiff seeks to recover damages on behalf of all those who purchased the common stock of Huntsman between May 14, 2008, and June 18, 2008. For more information, contact: Susan R. Gross, Esq. (susang@bernardmgross.com) Deborah R. Gross, Esq. (debbie@bernardmgross.com) Law Offices Bernard M. Gross, P.C. John Wanamaker Building, Suite 450 Philadelphia, PA 19107 Phone: 866-561-3600 215-561-3600 Web site: http://www.bernardmgross.com/ About Huntsman Corp. Headquartered in Salt Lake City, Utah, Huntsman Corporation (NYSE: HUN) -- http://www.huntsman.com/ -- is a manufacturer of differentiated chemical products and inorganic chemical products. The company operates in four segments: Polyurethanes, Materials and Effects, Performance Products and Pigments. Its products are used in a range of applications, including those in the adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining, synthetic fiber, textile chemicals and dye industries. Its Latin American operations are in Argentina, Brazil, Chile, Colombia, Guatemala, Panama and Mexico. At March 31, 2008, the company's consolidated balance sheet showed US$8.68 billion in total assets, US$6.71 billion in total liabilities, US$32.1 million in minority interests, and US$1.94 billion in total stockholders' equity. * * * As reported in the Troubled Company Reporter-Latin America on June 25, 2008, Standard & Poor's Ratings Services said that its ratings on Salt Lake City, Utah-based Huntsman Corp. (BB-/Watch Neg/--) remain on CreditWatch with negative implications, where they were placed on July 5, 2007. Moody's Investor Service placed Huntsman Corporation's corporate family rating at Ba3 in June 2007. The rating still holds to date. ==================== P U E R T O R I C O ==================== CARIBBEAN RESTAURANTS: S&P Rates US$149 Mil. Senior Notes at B -------------------------------------------------------------- Standard & Poor's Ratings Services has revised its outlook on Caribbean Restaurants LLC to stable from negative. At the same time, S&P affirmed the 'B-' corporate credit rating on the company and assigned a 'B' rating to the company's US$149 million senior secured notes due 2012 (US$146 million gross proceeds). S&P expects the issue to be sold as 144A private placement without registration rights. S&P assigned a recovery rating of '2' to the debt, indicating the expectation for substantial (70%-90%) recovery in the event of payment default. “The outlook revision reflects CRI's increased financial flexibility,” said S&P's credit analyst Jackie E. Oberoi, “as the company is refinancing its existing US$30 million revolver and is likely to have far less restrictive financial covenants as a result.” Based in San Juan, Puerto Rico, Caribbean Restaurants, LLC, through an exclusive territorial development agreement with Burger King Corporation, is the sole franchisee of Burger King restaurants in Puerto Rico with approximately 172 units as of fiscal year-end April 30, 2008. CENTENNIAL COMMUNICATIONS: Zacks Upgrading Shares to Hold --------------------------------------------------------- Zacks Investment Research is upgrading its recommendation on Centennial Communications Corp.'s shares to 'Hold' from 'Sell', based on the company's recent operational performance, along with sustainable subscriber growth across all of its operational areas. Centennial Communications delivered better-than-expected operating results in the most recent quarter, beating Zacks Investment's expectations with revenues and customer growth across all its business areas. Importantly, the annual consolidated revenues of approximately US$1 billion and US$400 million in adjusted operating income for fiscal year 2008 represents a first time operational achievement for the company. Centennial Communications continues to grow its U.S. wireless business with total revenues of US$550.7 million for fiscal year 2008. The management's outlook for fiscal 2009 supports Zacks Investment's recommendation change. New initiatives in fiscal 2009, including network infrastructure upgrades in the U.S. and new unlimited tariff plans in Puerto Rico, are expected to boost the overall business performance. However, Zacks Investment remains concerned with competitive factors in Centennial Communications' coverage markets that may challenge customer retention and pricing structure. Moreover, the company's high net debt level of approximately US$2 billion and limited cash on its balance sheet remain issues to consider. Zacks Investment sets a six-month price target of US$8.50, based on approximately 6.8x EV/EBITDA for fiscal 2009. Centennial Communications is trading at an EV/Sales multiple of 2.9x, which represents a premium to the telecom-wireless industry group. On the basis of enterprise value (defined as market cap plus debt minus cash) to EBITDA, the stock is also trading at a premium to the peer group average. Headquartered in Wall, New Jersey, Centennial Communications Corp. (NASDAQ: CYCL) -- http://www.centennialwireless.com/-- provides regional wireless and integrated communications services in the United States and the Puerto Rico with approximately 1.1 million wireless subscribers and 387,500 access lines and equivalents. The US business owns and operates wireless networks in the Midwest and Southeast covering parts of six states. Centennial's Puerto Rico business owns and operates wireless networks in Puerto Rico and the U.S. Virgin Islands and provides facilities-based integrated voice, data and Internet solutions. Welsh, Carson, Anderson & Stowe and an affiliate of the Blackstone Group are controlling shareholders of Centennial. * * * In July 2007, Standard & Poor's Ratings Services raised its ratings on Wall, New Jersey-based Centennial Communications Corp., including the corporate credit rating, which was raised to 'B' from 'B-'. At Nov. 30, 2007, the company's balance sheet showed US$1.3 billion in total assets, US$2.4 billion in total liabilities, and US$4.6 million in minority interest in subsidiaries, resulting in a US$1.0 million total stockholders' deficit. =============================== T R I N I D A D & T O B A G O =============================== HINDU CREDIT: Liquidator Denies Asking Chief to Resume Control -------------------------------------------------------------- Adrian Boodan at The Trinidad Guardian reports that Hindu Credit Union Co-Operative Society Ltd.'s Provisional Liquidator Ramdath Dave Rampersad has denied news that he asked the firm's chief, Harry Harnarine, to resume control of the Hindu Credit Group of Companies, a separate entity from Hindu Credit. According to The Guardian, Mr. Harnarine said during the Hindu Credit Depositors and Shareholders Group's meeting on Friday that Mr. Rampersad's representatives asked him to resume management of the Hindu Credit Group. Mr. Rampersad advised Hindu Credit depositors and the public that they shouldn't believe right away any statement or press release on Hindu Credit, unless it comes from or made with the authority of the provisional liquidator. Publication of the news that Mr. Harnarine had been asked to resume control of the Hindu Credit Group “may result in the undesirable and inaccurate public perception that certain persons have or continue to have a role in the management of the HCU [Hindu Credit] together with the provisional liquidator,” The Guardian relates, citing Mr. Rampersad. The liquidator said that he is managing Hindu Credit with the assistance of those “expressly authorized by him,” The Guardian states. According to Mr. Rampersad, he is required to take over and manage Hindu Credit's affairs to the extent necessary to keep the value of its assets, as stated under the terms of the High Court order dated July 23, 2008, the report adds. Hindu Credits assets haven't been liquidated, contrary to concerns being expressed by some depositors, The Guardian notes, citing Mr. Rampersad. The Guardian relates that the liquidator said the court order doesn't allow him to liquidate any of Hindu Credit's assets. Headquartered in Borough, Chaguanas, Hindu Credit Union Co- Operative Society Limited -- www.ourhcu.com -- has an asset base of more than US$1.7 billion and a membership totaling more than 200,000. * * * As reported in the Troubled Company Reporter-Latin America on July 28, 2008, the High Court of Trinidad and Tobago granted the government full control of Hindu Credit as the company faces financial difficulties, leaving depositors in limbo despite requests from lawyers. In June 2008, chartered accountants Ernst and Young inspected Hindu Credit's books, accounts, and records after a public outcry and calls for an internal audit. Charles Mitchell, the Commissioner for Co-Operative Development, represents Hindu Credit's depositors. HINDU CREDIT: Assets May Be Liquidated Below Market Value --------------------------------------------------------- The Trinidad and Tobago Express reports that Hindu Credit Union Co-Operative Society Limited's assets could be liquidated below market value. According to The Express, the HCU Depositors and Shareholders Group wrote to provisional liquidator Ramdath Dave Rampersad expressing concern about the firm's possible liquidation below market value. The group also submitted copies of this letter to Prime Minister Patrick Manning, Finance Minister Karen Nunez- Tesheira, Small and Micro Enterprise Development Minister Rennie Dumas, and Commissioner of Cooperatives Charles Mitchell. As reported in the Troubled Company Reporter-Latin America on July 30, 2008, Hindu Credit's depositors, shareholders, and workers formed the HCUDSG to protect assets in Hindu Credit. The Express relates that Mr. Rampersad was named Hindu Credit's provisional liquidator on July 23, pending the completion of Ernst and Young's inquiry. According to the report, HCUDSG's Public Relations Officer Deosaran Bisnath addressed these issues in the letter to Mr. Rampersad: -- liquidation of members' assets, possibly below market value and in a hasty manner, based on information from the Ernst and Young preliminary valuation and without input from members; -- closure of Hindu Credit and its subsidiaries that will lead to further deterioration of the asset value; and -- lack of information, rumors, and misinformation that caused further additional anxiety and stress on members. Ernst and Young's preliminary report on Hindu Credit that was completed in June indicates that the firm's assets were estimated at US$545 million, instead of US$817 million, The Express notes, citing HCUDSG. Ernst and Young put Hindu Credit's liabilities at US$716 million. According Ernst and Young, a depositor can expect recovery of 72 cents on the dollar, including interest. The Express notes that Mr. Bisnath said on behalf of HCUDSG, “We believe that the assets are worth more than US$545 million, we could be wrong but we are entitled to our estimate based on the information we have.” The group wanted a second opinion from a valuator it would hire, The Express says, citing Mr. Bisnath. “Now, we accept that there are differences in valuation but some of the asset value reductions are just too much, in our opinion. The value of properties in Freeport has been reduced from US$53.3 million to US$25 million, by over US$35 million! All we are saying is let us have a second opinion by someone in whom we have full trust and confidence, and who is selected by us, the HCUDSG,” Mr. Bisnath added, the report relates. The Express relates that HCUDSG wants the customer section at Hindu Credit's main building and a few selected branches reopened so that loans can be serviced and other business can be carried out. The report says that Mr. Rampersad made arrangements with Republic Bank Limited to facilitate the receipt of installments, payable to Hindu Credit in respect of loans it granted, at any Republic Bank branch. The arrangements were implemented last week and will continue until further notice. HCUDSG wants to have Hindu Credit staff hired to collect the payments and dispense funds at its main office building and a few selected offices all over Trinidad and Tobago. According to The Express, Mr. Bisnath has assured that “none of these requests challenges the action by the Commissioner of Cooperatives or the Provisional Liquidator. We are simply trying to have normal business resumed at HCU [Hindu Credit], especially to collect payments on the loan portfolio, and generate income from the subsidiary companies. HCUDSG warns all those who have loans to the HCU that you should not be lured into thinking that these loans will be written-off because of the current situation; every effort will be made to recover every dollar of our members' assets, thus ensuring maximum return of our members' investments. That's one of the reasons why we expect more than 72 cents on the dollar.” Headquartered in Borough, Chaguanas, Hindu Credit Union Co- Operative Society Limited -- www.ourhcu.com -- has an asset base of over US$1.7 billion and a membership totaling over 200,000. * * * As reported in the Troubled Company Reporter-Latin America on July 28, 2008, the High Court of Trinidad and Tobago granted the government full control of Hindu Credit as the company faces financial difficulties, leaving depositors in limbo despite requests from lawyers. In June 2008, chartered accountants Ernst and Young inspected Hindu Credit's books, accounts, and records after a public outcry and calls for an internal audit. Charles Mitchell, the Commissioner for Co-Operative Development, represents Hindu Credit's depositors. HINDU CREDIT: Police Gets Information on Harry Harnarine -------------------------------------------------------- Shaliza Hassanali at The Trinidad Guardian reports that Public Prosecutions Director Geoffrey Henderson has sent a file containing information on Hindu Credit Union Co-Operative Society Limited's President Harry Harnarine to the police investigating the firm's alleged fraud. The Guardian relates that the documents that belong to Hindu Credit indicates Mr. Harnarine's alleged misconduct. Mr. Henderson received the documents at his Port-of-Spain office last week from Attorney Robin Montano on July 25. According to The Guardian, the documents Mr. Montano sent included: -- a list of properties totaling US$10 million; -- a letter showing exorbitant legal fees charged for work done for Hindu Credit, which surpassed the amount owed to members by 50% or more in some instances; and -- a letter from an attorney to Hindu Credit's Chief Executive Officer Ravindra Bachan, asking him to put US$1.2 million for legal fees on a fixed deposit under someone else's name. Mr. Montano sent copies of this letter to Finance Minister Karen Nunez-Tesheria, Attorney General Bridgid Annisette-George, and acting Commissioner of Police James Philbert. Headquartered in Borough, Chaguanas, Hindu Credit Union Co- Operative Society Limited -- www.ourhcu.com -- has an asset base of over US$1.7 billion and a membership totaling over 200,000. * * * As reported in the Troubled Company Reporter-Latin America on July 28, 2008, the High Court of Trinidad and Tobago granted the government full control of Hindu Credit as the company faces financial difficulties, leaving depositors in limbo despite requests from lawyers. In June 2008, chartered accountants Ernst and Young inspected Hindu Credit's books, accounts, and records after a public outcry and calls for an internal audit. Charles Mitchell, the Commissioner for Co-Operative Development, represents Hindu Credit's depositors. ================= V E N E Z U E L A ================= HARVEST NATURAL: Moves 2Q 2008 Earnings Release Date Over Storm --------------------------------------------------------------- Harvest Natural Resources, Inc., has rescheduled its 2008 second quarter earnings and operations update to Aug. 7, 2008. Due to the uncertainty of Tropical Storm Edouard that is expected to come ashore on the Texas-Louisiana coast, Harvest has rescheduled the earnings release and conference call. The company will now hold the conference call at 10:00 a.m. CDT on Aug. 7, 2008, during which management will discuss Harvest's 2008 second quarter results. The conference leader will be President and Chief Executive Officer, James A. Edmiston. To access the conference call: Tel. Number: 785-424-1052, Conference ID: Harvest Please dial five to ten minutes prior to the start time. A recording of the conference call will also be available for replay at 402-220-2661 until Aug. 15, 2008. The conference call will also be transmitted over the internet through the company's website at: http://www.harvestnr.com. To listen to the live webcast, enter the web site fifteen minutes before the call to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay of the webcast will be available beginning shortly after the call, and will remain on the web site for approximately 90 days. Harvest Natural Resources, Inc. (NYSE: HNR) -- http://www.harvestnr.com/-- is an independent energy company engaged in the acquisition, exploration, development, production and disposition of oil and natural gas properties. The company has acquired and developed significant interests in the Venezuela, Russia and has also undeveloped acreage offshore of China. The company's only producing assets are in Venezuela. Its subsidiary, Harvest Vinccler S.C.A. has been providing operating services to Petroleos de Venezuela SA (PDVSA). * * * As reported in December 2007, Harvest Natural Resources said in a statement that it incurred a US$6.5 million loss in the first quarter 2007, and a net loss of US$62.5 million as of Dec. 31, 2006. Moody's Investors Service Upgraded the company's senior implied rating to Caa1 from Caa2 in September 2004. The rating still hold to date. PETROLEOS DE VENEZUELA: Shuts Down Cardon Unit for Maintenance -------------------------------------------------------------- Reuters reports that Petroleos de Venezuela SA has closed down Distillation Unit No. 2 at its Cardon oil plant for planned maintenance, Reuters reports, citing a source. According to Reuters, its source said the unit will be offline until the middle of this month. “It's part of the planned maintenance that they do every four or five years,” Reuters quoted the source as saying. An electrician of Petroleos de Venezuela was hospitalized for electric shock due to an accident while carrying out maintenance at the unit, Reuters says, citing sources. Petroleos de Venezuela S.A. -- http://www.pdvsa.com/-- is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. The company has a commercial office in China. * * * As reported in the Troubled Company Reporter-Latin America on April 28, 2008, Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Petroleos de Venezuela S.A. S&P said the outlook is stable. In March 2007, Fitch Ratings gave a BB- rating to PdVSA's Senior Unsecured debt. On Feb. 7, 2007, Moody's Investors Service affirmed the company's B1 global local currency rating. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marie Therese Profetana, Sheryl Joy P. Olano, Rizande de los Santos, and Pamella Ritah K. Jala, Editors. Copyright 2008. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. 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