/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/080829.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, August 29, 2008, Vol. 9, No. 172 Headlines A R G E N T I N A DELTA AIR: Obtains US$1 Billion Loan Prior to Northwest Merger DELTA AIR: NWA Cancels Worldwide Pact, Uses Delta Global Services DELTA AIR: Resolves US$9MM Hillsborough Aviation Authority Claim DELTA AIR: Abett & Co. Discloses 10.10% Stake DIDONAZ SA: Trustee Verifies Proofs of Claim Until November 20 EMPRESA DISTRIBUIDORA: S&P Affirms Corporate Credit Rating at B FIORITI AUTOMOTORES: Trustee Verifies Claims Until Oct. 10 KEIRIN SA: Proofs of Claim Verification Deadline Is October 29 NUESTRA SENORA: Proofs of Claim Verification Deadline Is Oct. 22 RIOMAQ SA: Proofs of Claim Verification Deadline Is October 13 SALOJA SA: Trustee Verifies Proofs of Claim Until September 19 SOCIEDAD DEL OESTE: Trustee Verifies Claims Until September 26 STIGMA SRL: Trustee Verifies Proofs of Claim Until September 24 B E R M U D A MAN EBISU: Deadline for Proofs of Claim Filing Is Sept. 10 MAN EBISU: Will Hold Final Shareholders Meeting on Sept. 30 MAN MAC BREITHORN: Proofs of Claim Filing Is Until Sept. 10 MAN MAC BREITHORN: Sets Final Shareholders Meeting on Sept. 30 ESTRELLA FUND: Proofs of Claim Filing Deadline Is Sept. 10 ESTRELLA FUND: Holding Final Shareholders Meeting on Sept. 30 B R A Z I L DELPHI CORP: Appaloosa Wants Fraud Claims Dismissed DELTA AIR: To Add Non-Stop Flights in Brazil Effective Dec. 19 LEXICON UNITED: June 30 Balance Sheet Upside-Down by US$623,504 UAL CORP: Wants Prelim Injunction Declared Against ALPA, et al. UAL CORP: High Fuel Prices Prompt Closure of Airport Lounges C A Y M A N I S L A N D S CORYTON GENERATING: Holds Final Shareholders Meeting on Oct. 2 HEPTAGON LTD: To Hold Final Shareholders Meeting on Oct. 2 MORTGAGED ASSET: Holding Final Shareholders Meeting on Oct. 2 OFSI FUND: Will Hold Final Shareholders Meeting on Oct. 2 PARMALAT SPA: NY Court Certifies Domestic Plaintiff Class PARMALAT SPA: Thorp Reed Wins Dismissal for Pavia in Class Suit RPL HOLDINGS: Holding Final Shareholders Meeting on Oct. 2 SPALDING GENERATING: Sets Final Shareholders Meeting on Oct. 2 C O L O M B I A SOLUTIA INC: Sells Shares to Repay US$400,000,000 Bridge Credit SOLUTIA INC: Hearing on DuPont Settlement Deal Set for Sept. 11 SOLUTIA INC: Resolving Last Few Bankruptcy Claims, Counsel Says J A M A I C A AIR JAMAICA: Says Flights Into US Won't be Canceled AIR JAMAICA: Sales & Marketing Senior VP, Paul Pennicook Resigns CABLE & WIRELESS: Union Workers Give Ultimatum for Jamaican Unit DIGICEL LTD: MiPhone Blames Unit for Cell Tower Deal Breakdown M E X I C O BHM TECHNOLOGIES: Committee Wants Letter Included Among Plan Docs BHM TECHNOLOGIES: Court Approves Chanin as Committee Advisor SEMGROUP LP: Bominflot Insists Ownership of Fuel Oil SEMGROUP LP: Reserves US$1,100,000 for 230 Laid-Off Employees SEMGROUP LP: Samson Asserts US$39,740,100 in Unpaid Oil and Gas SEMGROUP: US$2MM Eaglwing Funds Not Part of Estate, Vess Oil Says VITRO SAB: Sets New Closing Date for Shares Purchase on Jan. 10 P E R U BUNGE LTD: CEO to Address Lehman Brothers Conference On Sept. 3 P U E R T O R I C O HECTOR JIMENEZ: Case Summary & 6 Largest Unsecured Creditors RELIABLE MEDICAL: Case Summary & 20 Largest Unsecured Creditors T R I N I D A D & T O B A G O HINDU CREDIT: Harry Harnarine Says He is Prepared to Go to Jail V E N E Z U E L A NORTHWEST AIRLINES: To Utilize Delta Global Services PETROLEOS DE VENEZUELA: Increases Supply Capacity for El Tablazo PETROLEOS DE VENEZUELA: To Meet With Conoco on Assets Acquisition - - - - - ================= A R G E N T I N A ================= DELTA AIR: Obtains US$1 Billion Loan Prior to Northwest Merger -------------------------------------------------------------- Delta Air Lines Inc., disclosed that it obtained a US$1,000,000,000 loan to give it greater financial flexibility as completion of its merger with Northwest Airlines nears. Delta's merger with Northwest is expected to close by the end of the year. BusinessWeek says Delta expects to spend US$600,000,000 to integrate the two companies. Ed Bastian, Delta's president and chief financial officer, said in an interview that the draw is part of a credit line that was made available to the airline upon its exit from bankruptcy court protection last year, The Wall Street Journal reports. "It's not being done out of any financial duress or any operating needs for cash," The Atlanta Journal-Constitution quotes Mr. Bastian as saying. According to Mr. Bastian, with the company's US$3.7 billion in cash at the end of July, including the US$1 billion option exercised, Delta will have sufficient liquidity through the end of the year. "We believe we will have more than sufficient cash on hand at the closing to manage the integration process and run the day-to-day business," Mr. Bastian said in the memo to employees, reports BusinessWeek. Reports further note that Delta renegotiated its Visa/MasterCard credit card processing agreement to extend the contract period through Dec. 31, 2011. Mr. Bastian said there will continue to be no cash holdback requirement. The agreement also provides for all Visa/MasterCard processing for Northwest following the close of the consolidation. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE: DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 106; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELTA AIR: NWA Cancels Worldwide Pact, Uses Delta Global Services ----------------------------------------------------------------- In light of its proposed merger with Delta Air Lines, Inc., Northwest Airlines Corp. ended its contract with French-owned Worldwide Flight Services for ground services at Bradley International Airport, and decided to use Delta Global Services, a Delta subsidiary, Courant.com reports. Delta spokeswoman Susan Elliott has stated that Delta Global won the Contract in competitive bidding. With Northwest's reduced schedule at Bradley Airport, Worldwide's services are no longer necessary, Northwest's Vice President for Communications Tammy Lee told Courant.com. As a result of the canceled Agreement, Worldwide told the Department of Labor that it plans to shut down operations at the Bradley Airport effective October 2, 2008, and contemplates 74 job cuts, says the report. Delta Global plans to employ 30 additional employees at Bradley Airport, and are considering Worldwide's workers who are represented by the Transport Workers Union of America, Ms. Elliott said. Worldwide employees have "hard-to-obtain" security clearances; hence the Union is "cautiously optimistic" that they would find work with Delta, Courant.com says, quoting Union spokesperson Jamie Horwitz. About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Scott L. Hazan, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007, the Debtors filed with the Court their chapter 11 plan. On Feb. 15, 2007, the Debtors filed an amended plan and disclosure statement. The Court approved the adequacy of the Debtors' amended disclosure statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' amended plan. That amended plan took effect May 31, 2007. (Northwest Airlines Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE: DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 106; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELTA AIR: Resolves US$9MM Hillsborough Aviation Authority Claim ---------------------------------------------------------------- Hillsborough County Aviation Authority issued bonds, in December 1982, to Delta Air Lines, Inc., with The Bank of New York Mellon, formerly the Bank of New York, as Indenture Trustee. Pursuant to the 1982 Indenture, Delta used the proceeds to construct a hanger, a maintenance facility and other improvements to a Tampa International Airport property in Florida. The bonds were refinanced in 1988 and 1993. HCAA and BNY filed a claim for US$8,110,311 against Delta, asserting debt service payments when Delta discontinued its periodic rent payments upon rejection of the Lease. HCCA also has a separate US$4,181,735 claim for periodic payments, which the Debtors also refuse to pay. In September 2007, Delta filed its counterclaim, seeking declaratory judgment that the Lease is a "true lease" and recovery of postpetition payments made to HCAA and BNY. To avoid the complexities, expenses and risks associated with litigating the obligations under the Lease, the Parties have reached a settlement, under which they essentially agree that: (a) BNY's Claim will be allowed for US$8,000,000; (b) HCAA's Claim will be allowed for US$846,584; and (c) BNY will pay Delta US$202,000 to settle its Counterclaim. Delta has agreed to allow BNY and HCAA unsecured Class 4 Claims under the Reorganized Debtors' Plan. Additionally, HCCA will receive a distribution of new Delta common stock with respect to Delta's payment to HCAA. The Agreement also provides that BNY and the former, present and future holders of record and of beneficial interests in the Bonds will not have any other claim in Delta's cases or otherwise with regard to the Lease and the Indenture or the Bonds. Similarly, HCAA will not have any other claim against Delta or otherwise with regard to the Lease and the Indenture or the Bonds. Under the Agreement, BNY and HCAA fully and finally will discharge the Reorganized Debtors from the BNY and HCAA Claims. In the same manner, Delta will release the BNY and HCAA from any and all claims. The Agreement is deemed to settle and resolve all disputes with respect to any causes of action and claims resulting from, related to, or arising out of Delta's obligations under the Lease, the Indenture or the Bonds. The Parties asked Judge Adlai S. Hardin of the U.S. Bankruptcy Court for the Southern District of New York to approve their Settlement Agreement. A copy of the deal is available for free at: http://bankrupt.com/misc/Delta,BNY&HCAA_SettlementAgreement.pdf About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE: DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 106; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DELTA AIR: Abett & Co. Discloses 10.10% Stake --------------------------------------------- In a Form 13G filed with the Securities and Exchange Commission, Lord, Abbett & Co. LLC disclosed that it beneficially owns 30,698,022 shares of Delta Air Lines, Inc., common stock. The Company has a sole voting power of 27,750,818, and has the option to dispose 30,598,273 shares. The shares constitute 10.10% of the 303,892,307 shares of Delta common stock that are outstanding as of June 30, 2008. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE: DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 106; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) DIDONAZ SA: Trustee Verifies Proofs of Claim Until November 20 -------------------------------------------------------------- Jessica Minc, the court-appointed trustee for Didonaz SA's reorganization proceeding will be verifying creditors' proofs of claim until November 20, 2008. Ms. Minc will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 46, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Didonaz SA and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Didonaz SA's accounting and banking records will be submitted in court on. La Nacion didn't state the submission dates for the reports. Creditors will vote to ratify the completed settlement plan during the assembly on September 11, 2009. The debtor can be reached at: Didonaz SA Constitucion 2834 Buenos Aires, Argentina The trustee can be reached at: Jessica Minc Avda. Santa Fe 2534 Buenos Aires, Argentina EMPRESA DISTRIBUIDORA: S&P Affirms Corporate Credit Rating at B --------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'B' corporate credit rating on Distribuidora y Comercializadora Norte S.A. (Edenor) and changed the outlook to stable from positive mainly due to the deterioration of the business environment in Argentina during 2008, which is reflected in the high political and regulatory risk. The 'B' ratings reflect the high political and regulatory risk in Argentina, the company's relatively high capital expenditures requirement to meet growing demand for power within its service area and relatively high foreign exchange risk. The ratings also incorporate the company's solid competitive position resulting from its exclusive concession to distribute electricity in the north and northwest of greater Buenos Aires, its good cash flow generation and debt service coverage ratios, and its favorable debt maturity profile. The stable outlook incorporates the company's good cash flow generation, which should allow it to finance its relatively high capital expenditures and to face its debt maturities in the 2008-2009 period. In addition, the outlook reflects the high political and regulatory risk, which is reflected in the recent postponement for 2009 of the global renegotiation of the company's concession. An upgrade would depend on an improved business environment in Argentina, which should derive in significant reduction of political and regulatory risk. In addition, the ratings could deteriorate if Edenor's financial risk profile is affected by increasing operating costs and by a significant deterioration of its liquidity and financial flexibility. 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. Edenor is 51% owned by Electricidad Argentina S.A., an Argentine holding company which is 100% owned by Pampa Holding S.A., another Argentine holding company with investments in power generation, transmission, and distribution in Argentina. EASA, which is controlled by Dolphin Energia S.A., is Edenor's holding company. FIORITI AUTOMOTORES: Trustee Verifies Claims Until Oct. 10 ---------------------------------------------------------- The court-appointed trustee for Fioriti Automotores S.A.C.I.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until October 10, 2008. The trustee will present the validated claims in court as individual reports on November 21, 2008. A court in Argentina will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Fioriti Automotores and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Fioriti Automotores' accounting and banking records will be submitted in court on February 9, 2009. The trustee is also in charge of administering Fioriti Automotores' assets under court supervision and will take part in their disposal to the extent established by law. KEIRIN SA: Proofs of Claim Verification Deadline Is October 29 -------------------------------------------------------------- Martha Comba, the court-appointed trustee for Keirin SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until October 29, 2008. Ms. Comba will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 7 in Buenos Aires, with the assistance of Clerk No. 14, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Keirin SA and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Keirin SA's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Comba is also in charge of administering Keirin SA's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Keirin SA Viamonte 1526 Buenos Aires, Argentina The trustee can be reached at: Martha Comba Hipolito Yrigoyen 1349 Buenos Aires, Argentina NUESTRA SENORA: Proofs of Claim Verification Deadline Is Oct. 22 ---------------------------------------------------------------- Miguel Angel Troisi, the court-appointed trustee for Nuestra Senora de Pompeya S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until October 22, 2008. Mr. Troisi will present the validated claims in court as individual reports on December 3, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Nuestra Senora and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Nuestra Senora's accounting and banking records will be submitted in court on February 19, 2009. Mr. Troisi is also in charge of administering Nuestra Senora's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Nuestra Senora de Pompeya S.A. Avenida Escalada 2831 Buenos Aires, Argentina The trustee can be reached at: Miguel Angel Troisi Cerrito 146 Buenos Aires, Argentina RIOMAQ SA: Proofs of Claim Verification Deadline Is October 13 -------------------------------------------------------------- Ines Clos, the court-appointed trustee for Riomaq S.A.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until October 13, 2008. Ms. Clos will present the validated claims in court as individual reports on December 3, 2008. The National Commercial Court of First Instance No. 19 in Buenos Aires, with the assistance of Clerk No. 37, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Riomaq S.A. and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Riomaq S.A.'s accounting and banking records will be submitted in court on February 9, 2009. Ms. Clos is also in charge of administering Riomaq S.A.'s assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Riomaq S.A. Avenida Juramento 2017 Buenos Aires, Argentina The trustee can be reached at: Ines Clos Sarmiento 944 Buenos Aires, Argentina SALOJA SA: Trustee Verifies Proofs of Claim Until September 19 -------------------------------------------------------------- Donato Sacurno, the court-appointed trustee for Saloja SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until September 19, 2008. Mr. Sacurno will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 17 in Buenos Aires, with the assistance of No. 34, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Saloja SA and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Saloja SA's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Sacurno is also in charge of administering Saloja SA's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Saloja SA Pena 2346 Buenos Aires, Argentina The trustee can be reached at: Donato Sacurno Bernardo de Irigoyen 330 Buenos Aires, Argentina SOCIEDAD DEL OESTE: Trustee Verifies Claims Until September 26 -------------------------------------------------------------- Ana Bravo, the court-appointed trustee for Sociedad del Oeste SA's reorganization proceeding will be verifying creditors' proofs of claim until September 26, 2008. Ms. Bravo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 4, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Sociedad del Oeste and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Sociedad del Oeste's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Creditors will vote to ratify the completed settlement plan during the assembly on June 4, 2009. The debtor can be reached at: Sociedad del Oeste SA Avda. de los Incas 3295 Buenos Aires, Argentina The trustee can be reached at: Ana Bravo 25 de Mayo 596 Buenos Aires, Argentina STIGMA SRL: Trustee Verifies Proofs of Claim Until September 24 --------------------------------------------------------------- Clorinda Paula Donato, the court-appointed trustee for Stigma SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until September 24, 2008. Ms. Donato will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 4 in Buenos Aires, with the assistance of No. 7, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Stigma SRL and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Stigma SRL's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Donato is also in charge of administering Stigma SRL's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Stigma SRL Maipu 359 Buenos Aires, Argentina The trustee can be reached at: Clorinda Paula Donato Maipu 42 Buenos Aires, Argentina ============= B E R M U D A ============= MAN EBISU: Deadline for Proofs of Claim Filing Is Sept. 10 ---------------------------------------------------------- Man Ebisu Ltd.'s creditors are given until Sept. 10, 2008, to prove their claims to Beverly Mathias, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Man Ebisu's shareholders agreed on Aug. 22, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton, Bermuda MAN EBISU: Will Hold Final Shareholders Meeting on Sept. 30 ----------------------------------------------------------- Man Ebisu Ltd. will hold its final shareholders meeting on Sept. 30, 2008, at 9:30 a.m., at the offices of Argonaut Limited, Argonaut House, 5 Park Road, Hamilton, Bermuda. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. Man Ebisu's shareholders agreed on Aug. 22, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton, Bermuda MAN MAC BREITHORN: Proofs of Claim Filing Is Until Sept. 10 ----------------------------------------------------------- Man MAC Breithorn 12B Ltd.'s creditors are given until Sept. 10, 2008, to prove their claims to Beverly Mathias, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Man MAC Breithorn's shareholders agreed on Aug. 22, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton, Bermuda MAN MAC BREITHORN: Sets Final Shareholders Meeting on Sept. 30 -------------------------------------------------------------- Man MAC Breithorn 12B Ltd. will hold its final shareholders meeting on Sept. 30, 2008, at 9:30 a.m., at the offices of Argonaut Limited, Argonaut House, 5 Park Road, Hamilton, Bermuda. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. Man MAC Breithorn's shareholders agreed on Aug. 22, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton, Bermuda ESTRELLA FUND: Proofs of Claim Filing Deadline Is Sept. 10 ---------------------------------------------------------- Estrella Fund Ltd.'s creditors are given until Sept. 10, 2008, to prove their claims to Beverly Mathias, the company's liquidator, or be excluded from receiving any distribution or payment. In their proofs of claim, creditors must indicate their full names, addresses, the full particulars of their debts or claims, and the names and addresses of their lawyers, if any. Estrella Fund's shareholders agreed on Aug. 22, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton, Bermuda ESTRELLA FUND: Holding Final Shareholders Meeting on Sept. 30 ------------------------------------------------------------- Estrella Fund Ltd. will hold its final shareholders meeting on Sept. 30, 2008, at 9:30 a.m., at the offices of Argonaut Limited, Argonaut House, 5 Park Road, Hamilton, Bermuda. These matters will be taken up during the meeting: -- receiving an account showing the manner in which the winding-up of the company has been conducted and its property disposed of and hearing any explanation that may be given by the liquidator; -- determination by resolution the manner in which the books, accounts and documents of the company and of the liquidator shall be disposed; and -- passing of a resolution dissolving the company. Estrella Fund's shareholders agreed on Aug. 22, 2008, to place the company into voluntary liquidation under Bermuda's Companies Act 1981. The liquidator can be reached at: Beverly Mathias c/o Argonaut Limited Argonaut House, 5 Park Road Hamilton, Bermuda =========== B R A Z I L =========== DELPHI CORP: Appaloosa Wants Fraud Claims Dismissed --------------------------------------------------- BankruptcyLaw 360 reports that Appaloosa Management LP has asked a court to throw out claims and strike allegations brought by Delphi Corp. in relation to a US$2.55 billion planned investment that didn't push through. As reported by the Troubled Company Reporter on August 15, 2008, the Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York issued a ruling granting in part and denying in part, each of the motions of Appaloosa, Harbinger Del- Auto Investment Company Ltd., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Goldman Sachs & Co. and UBS Securities LLC for the dismissal of the complaints filed against them by the Debtors, pursuant to Rules 9(b), 12(b)(6) and (12)(f) of the Federal Rules of Civil Procedure, as incorporated by Rules 7009 and 7012(b) of the Federal Rules of Bankruptcy Procedure. As disclosed in the TCR on Aug. 7, 2008, Delphi accused Appaloosa and other investors of defrauding the Court by stating that they had every intention of performing under the Equity Purchase and Commitment Agreement. Appaloosa, however, argued that Delphi cannot seek specific performance because it is currently unable to perform under the conditions-precedent of the EPCA, including obtaining commitment to its US$6,100,000,000 debt financing and the completion of the rights offering. Delphi's exit from Chapter 11 has been derailed as a result. Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represent the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court confirmed the Debtors' First Amended Plan on Jan. 25, 2008. The Plan has not been consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. DELTA AIR: To Add Non-Stop Flights in Brazil Effective Dec. 19 -------------------------------------------------------------- Delta Air Lines Inc. will offer two new direct flights between the United States and Brazil, providing convenient access for customers traveling to the Amazon region and to two of the most popular beach destinations in the Brazilian Northeast. Beginning Dec. 19, 2008, Delta will offer nonstop service between Hartsfield-Jackson Atlanta International Airport and the Eduardo Gomez International Airport in Manaus. On Dec. 22, Delta will start service between Atlanta and the Fortaleza International Airport via the Guararapes International Airport in Recife. This new service increases to 32 the number of weekly flights Delta offers between the United States and five Brazilian destinations. Delta currently offers daily nonstop service between Atlanta and New York-JFK and Sao Paulo's Guarulhos International Airport, and between Atlanta and Rio de Janeiro's Galeao-Antonio Carlos Jobim International Airport. Delta recently also announced the addition of a seasonal frequency between Atlanta and Sao Paulo, effective Dec. 20, 2008. Manaus is the capital of Amazonas, Brazil's largest state and home to the region's main port. It is the starting point for travelers who want to discover the wonders of the tropical rainforest and ecological tourism options along the Rio Negro and Amazon Rivers, the largest in the world. Recife, the capital of the Brazilian state of Pernambuco, is a gateway to famous tropical beaches and world-renowned resorts, and hosts one of the main Carnival festivals of the country. Fortaleza, the capital of the state of Ceara, lies on the shore of the Atlantic Ocean, in the northeast of Brazil, offering 16 miles of urban beaches and an array of tourism, cultural and gastronomic options. To kick off the new service, Delta is offering a special one-way introductory fare of US$659 on the Atlanta-Manaus route, and US$599 on the Atlanta-Recife-Fortaleza route for travel between Jan. 6 and March 27, 2009. Round-trip ticket purchase required. Tickets must be purchased by Sept. 8, 2008. Additional taxes/fees/restrictions/baggage charges may apply. "These new flights are the result of the recent limited expansion of the bilateral agreement between the governments of the United States and Brazil, which opens the door to new opportunities for tourists as well as new business ventures between the two countries," said Christophe Didier, Delta's vice president of Sales and Government Affairs for Latin America and the Caribbean. "We look forward to continued expansion of this agreement in the future." About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE: DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. LEXICON UNITED: June 30 Balance Sheet Upside-Down by US$623,504 --------------------------------------------------------------- Lexicon United Incorporated Inc.'s balance sheet at June 30, 2008, showed total assets of 4,185,307 and total liabilities of US$4,808,811, resulting in a stockholders' deficit of US$623,504. As of June 30, 2008, the company has total current assets of US$1,157,273, as compared to US$1,002,727 as of June 30, 2007. The company has total current liabilities of US$4,425,608 as of June 30, 2008, as compared to US$3,649,194 as of June 30, 2007. Lexicon United reported financial results for the second quarter and six months ended June 30, 2008. For three months ended June 30, 2008, the company incurred net loss of US$120,815 compared to net loss of US$295,650 for the same period in the previous year. For six months, the company's net loss decreased to US$414,046 compared to net loss of US$470,816 for the same period in the previous year. Net revenues for the quarter ended June 30, 2008 increased 92% to US$1,211,244 as compared to US$629,493 for the comparable period last year. Net loss for the quarter was US$120,815, or US$0.01 per share, as compared to a net loss of US$295,650 for the second quarter of the prior year. Sequentially, revenues in the second quarter increased by 37% or US$326,379. For the six months ended June 30, 2008, revenues increased 65% to US$2,096,109 from US$1,268,685 in the comparable period last year. Net loss for the first six months of fiscal 2008 was US$414,046, compared to net loss of US$470,816 or US$0.06 per share for the comparable period last year. Liquidity and Capital Resources The company has cash and cash equivalents of approximately US$449,825 as of June 30, 2008, and it has short-term liabilities in the amount of US$4,425,608, well as long-term liabilities in the amount of US$383,203 as of June 30, 2008. The company intends to use its cash to retire current debt as it comes due well as to pay operating expenses as necessary. During 2007, the company negotiated with Brazilian authorities to favorably settle recorded municipal service taxes of US$730,000. In addition, the company further evaluated related payroll tax provisions and reduced same by approximately US$200,000. "We are very pleased with our operating results during the second quarter, primarily the increased revenue from servicing collections on behalf of third party clients," Elie Saltoun, CEO & president, stated. "In our ongoing focus to improve operations, we have successfully lowered our operating expenses as a percentage of sales from the prior year. We have invested and built an infrastructure to handle additional projects and portfolios, all of which we believe will result in shareholder value. "In late June we acquired from Ativos S/A Securitizadora, a portfolio of distressed debt assets of Banco do Brasil SA with a face value of R$498,685,303.94 or approximately US$305 million; this said, we did not expect to begin establishing a revenue stream from this portfolio until this current quarter," Mr. Saltoun added. "With the anticipated benefits associated with generating revenues from our own portfolio, we expect the remainder of this year to improve our top and bottom line results." About Lexicon United Inc. Lexicon United Inc. was incorporated on July 17, 2001, in the state of Delaware. The company, through its subsidiary, ATN Capital E Participacoes Ltda, is engaged in the business of managing and servicing accounts receivables for large financial institutions in Brazil. ATN derives its revenues primarily from collection of distressed debt by entering into non binding agreements with financial institutions to collect their debt. Going Concern Doubt Meyler & Company, LLC, in Middletown, New Jersey, expressed substantial doubt about Lexicon United Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm said that the company incurred net losses of US$135,182 and US$1,264,576 for the years ended Dec. 31, 2007, and 2006, and has an accumulated deficit of US$2,025,245 and negative working capital of US$2,579,733 at Dec. 31, 2007. UAL CORP: Wants Prelim Injunction Declared Against ALPA, et al. --------------------------------------------------------------- United Air Lines, Inc., asked Judge Eugene R. Wedoff of the U.S. District Court for the Northern District of Illinois to issue declaratory judgment and preliminary injunction -- for an alleged violation of Section 2 of the First Railway Labor Act -- against: * the United Airlines Master Executive Council of the Air Line Pilots Association, International; * Steven M. Tamkin; * Robert J. Domaleski Jr.; * Xavier F. Fernandez; and * Anthony R. Freeman. Section 2 of the RLA obligates carriers, unions and employees "to exert every reasonable effort to make and maintain [collective bargaining] agreements . . . and resolve all disputes . . . in order to avoid any interruption to commerce or to the operation of any carrier." ALPA, as representative of the pilots at United, entered into a collective bargaining agreement with United during the company's bankruptcy, which became effective on August 24, 2005. The parties agreed that the duration of the United-ALPA CBA would extend until December 31, 2009. Neither party is to submit intended changes to the CBA, until 270 days prior to December 31, 2009. ALPA's Master Executive Council is a representative body that makes all decisions for ALPA on matters affecting United pilots. Mr. Tamkin is the chairman, and Messrs. Domaleski and Fernandez, are the members of the MEC's Industrial Relations Committee. According to a MEC policy manual, the IRC's duties include the formulation and implementation of labor actions which will accomplish the goals of the United pilots and the directives of the UAL-MEC. Gary S. Kaplan, Esq., at O'Melveny & Myers LLP, in Washington, D.C., contended that similar to what ALPA is doing, Mr. Freeman -- a United pilot first officer, who administers a Web site, http://www.ual2172.com/to communicate with other pilots --is engaged in activities directed at harming United in violation of the Railway Labor Act. According to Mr. Kaplan, ALPA has been engaged in a campaign for more than a year in which it has encouraged its members to adhere strictly to the CBA, and to refuse voluntary flight assignments allowed under the current contract, for the explicit purpose of exerting economic pressure on United to open the CBA for renegotiation. ALPA's campaign has forced United to cancel 329 flights from July 19 to 27, 2008, Mr. Kaplan informs Judge Wedoff. The campaign has (i) cost United millions of dollars in lost profit, (ii) damaged its reputation and customer good will, (iii) disrupted the travel plans of 36,000 customers, and (iv) adversely impacted United's other employees, Mr. Kaplan pointed out. Every MEC Update issued by ALPA on its Web site, http://crewroom.alpa.org/ualunity/is prefaced with ALPA's demand to re-open the contract, Mr. Kaplan notes. ALPA has issued recent communications to the pilots both explicitly and implicitly encouraging the sick-out, showing that even if ALPA did not directly plan the sick-out, ALPA ratified it, Mr. Kaplan said. United Seeks Injunction United asserted that an injunction is the appropriate remedy to compel the performance of its pilots' legal duty. Without a preliminary injunction, Mr. Kaplan contended, United will suffer immediate and irreparable damage in the form of increased costs for measures designed to avoid flight delays and cancellations, loss of revenue, and damage to its business reputation. However, the Defendants will suffer, if any, minimal injury, from an injunction against unlawful job actions and the injury will be adequately indemnified by bond. Specifically, United asked the Court to order the Defendants to: * instruct the ALPA-represented pilots at United to resume their normal working schedule and practices, and provide United a copy of the instructions; * notify all ALPA-represented pilots at United, of the issuance, contents and meaning of the preliminary injunction, and produce a copy of all messages to United; and * attach in the notice a directive from ALPA to those pilots who are engaging in the Slowdown Campaign to conduct pilot operations in the normal manner to cease and desist all the activity and exhortations or communications encouraging upon pain of fine, suspension, or other sanction by ALPA. Moreover, United asks the Court to prohibit the Defendants from including in the Notices any statements that pilots should continue to engage in the unlawful job actions, including: (a) any assertion that the Preliminary Injunction does not prohibit individual pilots from making voluntary decisions to engage in the actions; and (b) any explanation of circumstances in which it would be appropriate for pilots to decline to waive a contractual requirement that the pilot may waive or decline a request to undertake a voluntary flight assignment, refuse a flight assignment or refuse to fly an aircraft that meets legal requirements for flight. United asked the Court to compel the attendance of the Defendants immediately after the issuance of a preliminary injunction order. Moreover, United asks the Court to issue an injunction on the condition that a bond, in an amount to be determined by the Court, be filed by United. The Defendants will recover from United under the Bond all costs and damages, if any, suffered by them, in the event that United does not succeed in the Complaint. United has sought discovery from the Defendants, on an expedited basis. Accordingly, the parties stipulated that the Defendants will respond to United's discovery requests and appear for deposition on August 15, 2008. United and ALPA Reach Standstill Agreement At District Judge Joan H. Lefkow's directive, United and ALPA agreed to a temporary pact in order to prevent further flight disruptions, Bloomberg News reports. In a telephone interview with Bloomberg, Megan McCarthy, United spokesperson said, "We have an agreement." However, both camps would neither disclose the details, Reuters notes. The report has quoted James Linsey, Esq., ALPA's counsel, telling the Court that ALPA was trying to "tamp down" pilot unrest. United disputed Mr. Linsey's statement, according to Reuters. Flight Attendants Condemn UAL for Filing Complaint Greg Davidowitch, Association of Flight Attendants-CWA (AFA-CWA) United Airlines Master Executive Council president, issued a statement after United management filed a law suit against individual pilots and their union, the Air Line Pilots Association "[]United management launched a very serious attack on employees by issuing an inaccurate and misleading media statement concerning the pilots at United Airlines. "This latest union-busting tactic is condemned for what it is: a corrupt attempt to distract workers and travelers of United Airlines from the failures of current executives. Their actions add nothing to the debate over the future of our airline, but instead serve to further inflame an already poisonous labor relations atmosphere. "The notion that any frontline employee of United Airlines is responsible for the failures of United executives is laughable. Not content to destroy labor relations, and to destroy the passenger experience, the geniuses that run this airline have also destroyed shareholder value in the past year. With all the major metrics of corporate performance at an all- time low, current management has lost its reason to continue in charge of the airline. "An attack on one employee is an attack on all of us. We stand in solidarity with the Air Line Pilots Association and condemn United management for this new low in labor relations." More than 55,000 Flight Attendants, including the 17,000 Flight Attendants at United, join together to form AFA, the world's largest Flight Attendant union. AFA is part of the 700,000 member strong Communications Workers of America, AFL-CIO -- http://www.unitedafa.org/ * * * At the recommendation of Judge Lefkow, Chief Judge James F. Holderman of the Executive Committee of the United States District Court for the Northern District of Illinois, referred United's Complaint to Magistrate Judge Morton Denlow for discovery supervision. However, in a joint status report filed to the Court on Aug. 12, 2008, United and the Defendants stated that they do not consent to trial before a magistrate judge. Moreover, the Defendants reserve the right to file one or more counterclaims while United reiterates that it is not seeking damages. The parties have not engaged in any settlement negotiations. About UAL Corporation Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. * * * As reported in the Troubled Company Reporter-Latin America on July 30, 2008, Standard & Poor's Ratings Services lowered its ratings on UAL Corp. and subsidiary United Air Lines Inc. (both rated B- /Negative/--), including lowering the long-term corporate credit ratings on both entities to 'B-' from 'B', and removed the ratings from CreditWatch, where they had been placed with negative implications May 22, 2008, as part of an industrywide review. The outlook is negative. UAL CORP: High Fuel Prices Prompt Closure of Airport Lounges ------------------------------------------------------------ United Airlines Inc. intends to shut down its airport lounges as skyrocketing fuel costs continue to plague the airline industry, Jane L. Levere of the New York Times report. United plans to enforce the closing of lounges in Hartsfield- Jackson Atlanta International Airport, the Baltimore airport, Dallas Fort Worth International Airport, and Minneapolis St. Paul International Airport, by October 10, Ms. Levere discloses. United has already closed lounges at airports in Cleveland, Sydney, and London's Heathrow for the last two years, according to Ms. Levere. Nevertheless, United members can avail of lounges run by its alliance, the Star Alliance, Ms. Levere notes. According to the report, airlines have to pay for rent, salaries and other expenses for the maintenance of the lounges, which may yield little income. As carriers are incrementally cutting capacity costs, the lounge shutdowns is just one of the drastic measures to keep up with high production expenses, Ms. Levere relates. The combined lounge closings are expected to affect lounge members who pay as much as US$400 as membership fees per annum, Ms. Levere says. About UAL Corporation Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. * * * As reported in the Troubled Company Reporter-Latin America on July 30, 2008, Standard & Poor's Ratings Services lowered its ratings on UAL Corp. and subsidiary United Air Lines Inc. (both rated B- /Negative/--), including lowering the long-term corporate credit ratings on both entities to 'B-' from 'B', and removed the ratings from CreditWatch, where they had been placed with negative implications May 22, 2008, as part of an industrywide review. The outlook is negative. ========================== C A Y M A N I S L A N D S ========================== CORYTON GENERATING: Holds Final Shareholders Meeting on Oct. 2 -------------------------------------------------------------- Coryton Generating Company Ltd. will hold its final shareholders meeting on Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. The accounting of the wind-up process will be taken up during the meeting. Coryton Generating' shareholders agreed on June 25, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Giles Kerley c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands HEPTAGON LTD: To Hold Final Shareholders Meeting on Oct. 2 ---------------------------------------------------------- Heptagon Ltd. will hold its final shareholders meeting on Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. The accounting of the wind-up process will be taken up during the meeting. Heptagon's shareholders agreed 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 MORTGAGED ASSET: Holding Final Shareholders Meeting on Oct. 2 -------------------------------------------------------------- Mortgaged Asset Return Investment Opportunities Corp. will hold its final shareholders meeting on Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. The accounting of the wind-up process will be taken up during the meeting. Mortgaged Asset's shareholders agreed on June 24, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Guy Major c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands OFSI FUND: Will Hold Final Shareholders Meeting on Oct. 2 --------------------------------------------------------- OFSI Fund IV Ltd. will hold its final shareholders meeting on Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. The accounting of the wind-up process will be taken up during the meeting. OFSI Fund's shareholders agreed 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: Andrew Dean and Emile Small c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands PARMALAT SPA: NY Court Certifies Domestic Plaintiff Class --------------------------------------------------------- Parmalat S.p.A. communicates that U.S. District Court for the Southern District of New York, where the class action "Parmalat Securities Litigation" is pending, has certified the class with respect to domestic plaintiffs who have purchased shares of (old) Parmalat in the period Jan. 5, 1999-Dec. 18, 2003. The court has excluded foreign purchasers considering the substantial likelihood that motions to dismiss their claims would be granted. The court also noted that the class representatives who have moved for certification have bought only Parmalat ordinary shares, not debt. Accordingly, the court further modified the class to include only domestic investors who purchased or otherwise acquired Parmalat ordinary shares during the class period. The ruling is without prejudice to the pending application to approve a settlement with (new) Parmalat on behalf of a broader class, and a renewed motion to expand the class to include foreign purchasers. 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. PARMALAT SPA: Thorp Reed Wins Dismissal for Pavia in Class Suit --------------------------------------------------------------- Thorp Reed & Armstrong, LLP, has successfully secured a dismissal for independent Italian law firm Pavia e Ansaldo (Pavia) in a major class action suit brought by the shareholders of Parmalat S.p.A. The suit was brought against a number of independent institutions, including Bank of America, Citigroup and Pavia, following the Italian dairy firm's entering into bankruptcy, the largest in Europe's history. Bank of America and Citigroup were dismissed along with Pavia. The dismissal, handed down by U.S. District Court Judge Lewis A. Kaplan, was issued on August 7 and made available to the public on August 11. The class action suit sought billions of dollars in damages and was brought on behalf of buyers of shares in Parmalat. Investors accused accounting firms, the banks, and Pavia, of willfully misleading them about the value of shares they purchased in Parmalat prior to the company's collapse in 2003. The collapse of Parmalat has been referred to as the "Enron of Europe." The recent United States Supreme Court decision in Stoneridge vs. Scientific Atlanta provided the basis for the ruling and clarified that Pavia, and the banks involved in the suit, had no liability for the fraud alleged in the Parmalat case. Joe Donley, Esq., the Thorp Reed & Armstrong partner who was lead counsel for Pavia in the case, commented, "The dismissal is extremely satisfying for all of us who worked on the case, but perhaps most importantly, it is an important moral, ethical and legal victory for Pavia e Ansaldo, a highly respected Italian law firm. The firm always maintained that it had no involvement in the Parmalat collapse and that it did not engage in any fraudulent or deceptive conduct, and the evidence showed that. We applaud the decision by Judge Kaplan and his recognition that the plaintiffs' arguments were unfounded in this matter." 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. RPL HOLDINGS: Holding Final Shareholders Meeting on Oct. 2 ---------------------------------------------------------- RPL Holdings Ltd. will hold its final shareholders meeting on Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. The accounting of the wind-up process will be taken up during the meeting. RPL Holdings' shareholders agreed on June 25, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Giles Kerley c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands SPALDING GENERATING: Sets Final Shareholders Meeting on Oct. 2 -------------------------------------------------------------- Spalding Generating Company Ltd. will hold its final shareholders meeting on Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands. The accounting of the wind-up process will be taken up during the meeting. Spalding Generating' shareholders agreed on June 25, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jan Neveril and Giles Kerley c/o Maples Finance Limited P.O. Box 1093GT Grand Cayman, Cayman Islands =============== C O L O M B I A =============== SOLUTIA INC: Sells Shares to Repay US$400,000,000 Bridge Credit --------------------------------------------------------------- Solutia, Inc. launched an underwritten public offering of 22,307,692 shares of its common stock at a price of US$13 per share for gross proceeds of approximately US$290,000,000. All of the approximately US$277,000,000 of net proceeds from the offering will be used to partially repay Solutia's US$400,000,000 15.50% bridge credit facility. Solutia, on the effective date of its Plan of Reorganization on Feb. 28, 2008, entered into credit facilities aggregating up to US$2,050,000,000 with a syndicate of banks to finance its emergence from Chapter 11. The loans include a bridge loan facility in an aggregate principal amount of US$400,000,000, with an initial maturity date of Feb. 28, 2009, and which may be extended by six years subject to conditions. Citibank, N.A., served as administrative agent; Goldman Sachs Credit Partners L.P., as syndication agent; Deutsche Bank AG New York Branch, as documentation agent; and Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P. and Deutsche Bank Securities Inc., as joint lead arrangers and bookrunners under the Bridge Facility. Solutia, in its news release, says it intends to fully repay the bridge credit facility prior to the end of February 2009 at which time the loans could be converted by the lenders into notes that mature in February 2015. Deutsche Bank Securities Inc. and Jefferies & Company, Inc., are the joint underwriters for the offering. A shelf registration on Form S-3 relating to these securities was filed with the Securities and Exchange Commission and became effective on July 25, 2008. A copy of the prospectus supplement and base prospectus relating to the offering may be obtained, when available, from Deutsche Bank Securities Inc., 100 Plaza One, Floor 2, Jersey City, New Jersey 07311-3901, by telephone at 1-800-503-4611, or by email at prospectusrequest@list.db.com Stockholders Are Not Receiving Dividends Solutia, in a document submitted to the Securities and Exchange Commission on August 11, said that the 22,307,692 shares of its common stock that it will be selling has a public offering price of US$13 per share, 15.80% cheaper than the last reported sale price of US$15.44 per share at the New York Stock Exchange as of Aug. 8, 2008. Solutia noted that it has not paid any cash dividends on its common stock in its last two fiscal years or subsequent interim periods and does not expect to pay dividends for the foreseeable future. Solutia's senior secured facilities restrict the payment of dividends. Solutia said it expects to obtain proceeds, net of underwriting discounts, of US$277,574,996. A full-text copy of Solutia's supplement to its July 25 can be accessed at http://ResearchArchives.com/t/s?3141 Solutia Mulls Options to Pay Remainder Solutia spokesperson Dan Jenkins said the company "is looking at different options" to repay unpaid portion of the US$400,000,000 bridge facility, Bloomberg News reports. Bloomberg said that Solutia raised US$277 million from the public offering to pay for a portion of the bridge loan. Solutia will repay the more than US$120,000,000 due under the loan in February 2009. Sale Price 53% Below the US$20 Under Ch. 11 Plan; Shares Return to US$15-Level After Shares Sale After Solutia announced its proposed conversion of a portion of its US$400,000,000 debt to equity at US$13 per share, closing prices of its stock tumbled to 9% to US$14.14 apiece on August 11, but has since recovered to US$15.48 a share as of August 19: Date Closing Price ---- ------------- 19-Aug US$15.48 per share 18-Aug 15.03 15-Aug 14.74 14-Aug 14.53 13-Aug 14.17 12-Aug 14.02 11-Aug 15.44 8-Aug 15.42 The August 19 closing price of Solutia shares is valued 8.63% higher than the US$14.25 closing price of Solutia shares on March 25 when it first officially began trading at the NYSE since its emergence from Chapter 11. Pursuant to its Plan of Reorganization, Solutia distributed rights to subscribe for 28,906,562 shares of its new common stock to certain prepetition general unsecured creditors, noteholders and holders of pre-emergence common stock. Eligible creditors to participate in the creditor rights offering were offered new common stock at US$13.33 per share under the rights offering. Eligible stockholders were offered new common stock at US$17.23 per share. The US$13.33 offering price to unsecured creditors represented a 33.33% discount to the implied US$20 per share value of the new common stock, based on a reorganization equity value of Solutia of approximately US$1,200,000,000. Solutia's total stock to be outstanding after the offering has increased to 83,677,688 shares, up 36% from the 61,369,996 shares of common stock outstanding as of June 30, 2008. This excludes: -- 2,906,167 shares of common stock issuable upon the exercise of outstanding stock options; and -- 4,481,250 shares of common stock issuable upon the exercise of outstanding warrants. Standard & Poor's Solutia Ratings Remain Unchanged Standard and Poor's Ratings Services announced that it will not change Solutia's B+/Stable/-- ratings as a result of the company's public offering announcement. According to S&P, it will review Solutia's ratings once its Nylon business results in a sell-off. "If that happens we will weigh the loss in earnings and cash flow as a result of a potential sale against a potential decline in debt. In addition, we will also consider management's commitment to maintaining or improving credit quality," S&P said. S&P, a division of McGraw-Hill, publishes financial research and analysis on stocks and bonds. According to Wikipedia, S&P is among the top three companies in that business, along with Moody's and Fitch Ratings. Wikipedia said that S&P is "well-known for its US-based S&P 500, the Australian S&P/ASX 200 stock market index, the Canadian S&P/TSX, the Italian S&P/MIB and India's S&P CNX Nifty." About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE: SOA-WI) -- http://www.solutia.com/-- and its subsidiaries, manufactures and sells chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03- 17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. Solutia emerged from chapter 11 protection Feb. 28, 2008. Solutia's US$2.05 billion exit financing facility was funded by Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc. The exit financing is being used to pay certain creditors, and for ongoing operations. (Solutia Bankruptcy News, Issue No. 130; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Standard & Poor's Ratings Services said its ratings on Solutia Inc. (B+/Stable/--) will not change as a result of the company's recent announcement of a public offering of common shares. SOLUTIA INC: Hearing on DuPont Settlement Deal Set for Sept. 11 --------------------------------------------------------------- Judge Prudence C. Beatty of the U.S. Bankruptcy for the Southern District of New York will convene a hearing September 11, 2008, to consider approval of a settlement between E.I. DuPont de Nemours and Company, Inc., and Solutia. DuPont had asked the Court to compel the Debtors to pay a US$1,394,718 administrative claim, pursuant a contract dated January 1, 2002 and related agreements, under which DuPont sold products on an exclusive basis to Solutia. The parties' contract contained provisions that if Solutia received an offer for the same products from a third party at a lower price, Solutia could demand that DuPont either match the price of the new offer or release Solutia from further obligations to purchase products. By letter agreement dated March 31, 2006, Solutia and DuPont agreed to the terms under which a third party auditor would make the determination of whether Solutia properly invoked the "Meet or Release" provision. In August 2007, BDO Seidman, LLP, the third- party auditor, reported that Solutia did not meet the terms of the meet or release clause, resulting to DuPont's filings of US$1,394,718 for payment of goods at prices provided for in their original contract. Solutia disputed the claim and argued that BDO's report was not final and binding, and was still subject to Court review. Representing DuPont, Alan L. Hill, Esq., at Phillips Lytle, LLP, in New York, told Judge Beatty at a July 2008 hearing that DuPont and Solutia, Inc., have reached an agreement. Mr. Hill said, and Solutia's counsel confirmed, at the hearing that the parties are in the process of executing certain documents setting forth an informal discovery process with BDO. "By this process, BDO is going to provide the parties with all the documents that were provided to it in contemplation of the arbitration, and it's going to provide a representative to discuss the rationale behind the arbitration decision with the two parties," Mr. Hill added. Those documents are subject to certain confidentiality provisions that have been agreed between DuPont and Solutia and BDO. The process was said to have been completed by the week of August 18th to 22nd. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE: SOA-WI) -- http://www.solutia.com/-- and its subsidiaries, manufactures and sells chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03- 17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. Solutia emerged from chapter 11 protection Feb. 28, 2008. Solutia's US$2.05 billion exit financing facility was funded by Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc. The exit financing is being used to pay certain creditors, and for ongoing operations. (Solutia Bankruptcy News, Issue No. 130; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Standard & Poor's Ratings Services said its ratings on Solutia Inc. (B+/Stable/--) will not change as a result of the company's recent announcement of a public offering of common shares. SOLUTIA INC: Resolving Last Few Bankruptcy Claims, Counsel Says --------------------------------------------------------------- On behalf of Solutia, Inc., Michael A. Cohen, Esq., at Kirkland & Ellis LLP, told Judge Prudence C. Beatty of the U.S. Bankruptcy Court for the Southern District of New York at a July 2008 hearing that Solutia is working towards getting the "last few claims resolved" in order to seek a final decree closing its Chapter 11 cases. Mr. Cohen told the Court that aside from their agreement with E.I. DuPont de Nemours and Company, the Debtors have reached a settlement agreement with the Dickerson claim, and will present the settlement to Judge Beatty upon the district court's approval of the settlement. "And we do have a few claims that are left out there, but we are working to get those resolved in as efficient a manner as possible with regard to the estate, and we're working with our claim's monitor in that regard," Mr. Cohen stated. "And it really is a very small number of claims, especially for a case of Solutia's size." Judge Beatty said that she'd be extremely gratified if the entire case could be closed by December 31, 2008, about 13 months since the confirmation of Solutia's Reorganization Plan on November 29, 2008. Judge Beatty noted that NRG Energy, Inc., which were represented by Kirkland & Ellis, and Mr. Cohen in their bankruptcy cases, was able to quickly close its Chapter 11 cases. Mr. Cohen agreed to a Dec. 31 target for closing of Solutia's Chapter 11 case. Judge Beatty noted that Solutia won't continue paying fees to the U.S. Trustee once it closes its Chapter 11 cases. In a discussion with Mr. Cohen about how Solutia is doing post- emergence, Judge Beatty said at the hearing that she'd expect Solutia to continue to do well, notwithstanding the difficult economic times in the United States., noting that some of its products are not U.S. dependent, and the company could increase prices because its products are not easily produced by other firms. About Solutia Inc. Based in St. Louis, Missouri, Solutia Inc. (OTCBB: SOLUQ) (NYSE: SOA-WI) -- http://www.solutia.com/-- and its subsidiaries, manufactures and sells chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Lead Case No. 03- 17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. On Oct. 22, 2007, the Debtor re-filed a Consensual Plan & Disclosure Statement and on Nov. 29, 2007, the Court confirmed the Debtors' Consensual Plan. Solutia emerged from chapter 11 protection Feb. 28, 2008. Solutia's US$2.05 billion exit financing facility was funded by Citigroup Global Markets Inc., Goldman Sachs Credit Partners L.P., and Deutsche Bank Securities Inc. The exit financing is being used to pay certain creditors, and for ongoing operations. (Solutia Bankruptcy News, Issue No. 130; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * Standard & Poor's Ratings Services said its ratings on Solutia Inc. (B+/Stable/--) will not change as a result of the company's recent announcement of a public offering of common shares. ============= J A M A I C A ============= AIR JAMAICA: Says Flights Into US Won't be Canceled --------------------------------------------------- Radio Jamaica reports that Air Jamaica said problems affecting the Federal Aviation Authority's computers have not affected the airline's flights into eastern U.S. The report says over 5,000 planes in the U.S. were affected by a computer glitch. This forced many planes to stay on the air, the same report says. According to Radio Jamaica, Air Jamaica's Chairperson Shirley Lewis said the airline is ?planning contingencies?. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Moody's Investors Service assigned a B1 rating to Air Jamaica Limited's guaranteed senior unsecured notes. On July 21, 2006, Standard & Poor's Rating Services assigned a "B" long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, based on the government's unconditional guarantee of both principal and interest payments. AIR JAMAICA: Sales & Marketing Senior VP, Paul Pennicook Resigns ---------------------------------------------------------------- Air Jamaica Senior Vice President of Sales and Marketing, Paul Pennicook has resigned, Jamaica Gleaner reports. Mr. Pennicook, who joined Air Jamaica in mid-2006, has served as the airline's Director of Tourism, The Gleaner relates. According to Professional Travel guide, Mr. Penicook succeeded Basil Smith as Director of Tourism in 2006. The Gleaner states that prior to joining the company, he was president and chief executive officer in Couples Resorts International for six years. Mr. Pennicook has also served as vice-president of the Jamaica Hotel and Tourist Association and chairman of marketing committee. He was also recently appointed as chairman of the Emerging Markets Committee of the Jamaica Tourist Board. Mr. Pennicook graduated from Cornell University and has 35 years experience in the hotel and travel industry, the report said. Mr. Pennicook did not disclose reason for his resignation, The Gleaner said. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com/-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * As reported in the Troubled Company Reporter-Latin America on June 12, 2007, Moody's Investors Service assigned a B1 rating to Air Jamaica Limited's guaranteed senior unsecured notes. On July 21, 2006, Standard & Poor's Rating Services assigned a "B" long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, based on the government's unconditional guarantee of both principal and interest payments. CABLE & WIRELESS: Union Workers Give Ultimatum for Jamaican Unit ---------------------------------------------------------------- The University and Allied Workers Union at Cable & Wireless Jamaica Ltd. has served an ultimatum to the management of the company, giving it three days to pay its former employees, Radio Jamaica reports. According to the report, the union sent a letter to the company's management saying it will provide a three-day deadline for Cable & Wireless to pay the redundancy of the workers, and that failure to do so would prove that the management is not intested in making the payments. Radio Jamaica relates the union is claiming the company has withheld the workers' salaries since March and cites that there were redundancy payments in April during its negotiation with the company on May 15. The union argues that workers whose redundancies became effective on April are entitled to the retroactive payments and severance payments included in their new salary rates, Radio Jamaica says. Headquartered in London, Cable & Wireless Plc -- http://www.cw.com/new/-- operates through two standalone business units -- International and Europe, Asia & US. The International business unit operates integrated telecommunications companies in 33 countries, with principal operations in the Caribbean, Panama, Macau, Monaco and the Channel Islands. The Europe, Asia & U.S. business unit provides enterprise and carrier solutions to the largest users of telecoms services across the U.K., U.S., continental Europe and Asia -- and wholesale broadband services in the U.K. The company also has operations in India, China, the Cayman Islands and the Middle East. * * * As reported in the Troubled Company Reporter-Europe on May 26, 2008, Standard & Poor's Ratings Services revised its outlook on Cable & Wireless PLC to developing from stable. The developing outlook means ratings can be raised, lowered, or affirmed. The 'BB-' long-term and 'B' short-term corporate credit ratings remain unchanged. DIGICEL LTD: MiPhone Blames Unit for Cell Tower Deal Breakdown -------------------------------------------------------------- Digitel Limited unit Digicel Jamaica and rival MiPhone are blaming each other for the breakdown of a reciprocal agreement brokered by government that allows telecommunication companies to share cell towers, The Jamaica Gleaner reports. The report says MiPhone claims that Digicel Jamaica was denying it access. According to the report, the rivaly is starting to heat up as Digicel denies the claim saying that MiPhone is not conforming to rules. Digicel owns more than 1,000 cell towers while MiPhone aims to put up 600 towers in Jamaica. The Gleaner quoted MiPhone chief operating officer Colin Webster as saying that the agreement between has been in place since 2007 when America Movil acquired MiPhone from Oceanic Digital. However, Rohan Pottinger, a Technology Director of Digicel, is negating the claim saying there was a deal since 2003 between the two companies ang that the deal broke down due to Miphone's failure in meeting requirements made by the Ministry of Energy, Mining & Telecommunications, The Gleaner relates. Sources disclosed to Wednesday Business that there is also an agreemade made by Digicel and Cable & Wireless Jamaica and that there were no problems between Miphone and C&WJ with sharing 90 cell towers, The Gleaner states, citing Mr. Pottinger. Digicel Ltd. is a wireless services provider in the Caribbean region founded in 2000, and controlled by Denis O'Brien. The company started operations in Jamaica in April 2001 and now offers GSM mobile services in Caribbean countries including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados, Bermuda, Cayman, and Curacao. Digicel finished FY2005 with 1.722 million total subscribers -- 97% pre-paid -- estimated market share of 67% and revenues and EBITDA of US$478 million and US$155 million, respectively. * * * In February 2007, Moody's Investors Service affirmed its Caa2 senior unsecured rating to Digicel Group Limited's US$1.4 billion senior unsecured notes offering. =========== M E X I C O =========== BHM TECHNOLOGIES: Committee Wants Letter Included Among Plan Docs ----------------------------------------------------------------- The Official Committee of Unsecured Creditors in the bankruptcy cases of BHM Technologies Holdings, Inc., and its debtor- affiliates asks the United States of Western District of Michigan to approve a letter that detailed its position with respect to the Joint Plan of Reorganization of the BHM Technologies Debtors as containing adequate information under Section 1125 of the Bankruptcy Code. The Committee also asks the Court to direct the Debtors to include the Letter with the Solicitation Packages or, alternatively, authorize the Committee itself to send out the Letter to the general unsecured creditors. The Debtors have refused to include the Committee's letter in the solicitation package that they will send to voting creditors, because it contains qualifications and does not fully and unconditionally supports the Plan, as amended. Judith Greenstone Miller, Esq., at Jaffe Raitt Heuer & Weiss, P.C., in Southfield, Michigan, relates that because of the cost involved with sending out the Letter, as well as potential confusion that might arise in connection with the Committee sending out the Letter, the Committee prefers that the Letter be included with the Solicitation Package. Ms. Miller avers that the Committee Letter (i) contains accurate and adequate information, (ii) will assist creditors in determining how to vote on the Amended Plan, and (iii) facilitates the Committee's compliance with its fiduciary duties delineated in Section 1103(b) of the Bankruptcy Code. In light of the Debtors' objection to the Letter, the Committee is concerned that, absent seeking and obtaining the Court's approval, it and its members will risk the imposition of claims or liability from the Debtors. Ms. Miller states it is important that the Committee be authorized to send out the Letter because: (a) sending the Letter to the creditors is consistent with and complies with the fiduciary duty of a committee to "advise those represented by the committee of the committee's determinations as to any plan formulated" under Section 1103(c)(3). (b) in a complex, large case of this type, creditors look to the committee regarding the plan, information about the plan, and the committee's assessment of the plan in determining and assisting them on how to vote on the plan. (c) it is unusual that a committee would not send a letter to creditors regarding its advice on a plan and failure to send a letter could negatively impact creditors with respect to how to vote on the plan. (d) sending a letter where the Amended Plan is complex, detailed, and confusing to a creditor, assists a creditor in determining how to vote on the Amended Plan. The Committee Letter Dear Creditors: The Debtors filed voluntarily Chapter 11 petitions on May 19, 2008. The U.S. Trustee appointed an Official Committee of Unsecured Creditors on June 5, 2008. In accord with its prescribed duties, the Committee and its professionals have been consulting with the Debtors and their professionals regarding administration of the estates, the assets, liabilities and financial condition of the Debtors, the formulation of a plan, and other pertinent matters. The Debtors recently filed a Disclosure Statement and Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code. The Court held a hearing on the adequacy of the information contained in the Disclosure Statement on August 7, 2008, at which time, the Court approved the Disclosure Statement, the Plan, and the exhibits thereto to be sent to creditors entitled to vote on the Plan. Therefore, you will be receiving a copy of the Plan and Disclosure Statement, along with a ballot, seeking your vote with respect to the Plan. The Plan is unusual in that it creates two separate classes of unsecured creditors. One, class (Class U-2 under the Plan), unsecured trade creditors that are continuing to do business with the Debtors, will be entitled to receive 100% cash payment on their Allowed Claims by means of six equal monthly payments once their claims are allowed. Unsecured creditors who do not fall into the definition of Class U-2 are separately classified into Class U-4, along with a group of other unsecured creditors. This class is to receive shares of stock in the reorganized Debtors. Class U-4 is dominated by the deficiency claims of the first and second lien holders who have voluntarily agreed to reduce their secured claims by tens of millions of dollars and who opted to have their unsecured claims treated as Class U-4 claims. Class U-4 also contains claims of those subject to rejection of their contracts, a noteholder, claimants in litigation and others. There is meaningful legal authority supporting the Debtor's creation of the two classes of unsecured creditors. Thus, even if the Committee elected to challenge that treatment, the outcome of that legal challenge is uncertain. Specific reference and attention should be given to the Class U-2 and Class U-4 definitions in the Plan and the treatment afforded to members of those classes. The Plan is also unusual in that the Debtors had already negotiated its terms with the first and second lien lenders and the stockholders before the bankruptcy was filed, based on term sheets and plan support agreements. Moreover, the Plan proposes two types of plans: a "New Money" Plan and a "No New Money" Plan. As part of the "New Money" Plan, Atlantic Equity Partners, the stockholder of the Debtors, placed US$12,500,000 in escrow to be used to fund the Plan as part of its plan support agreement. Absent a "material adverse change" or failure to confirm the "New Money" Plan, the funds placed in escrow cannot be released and returned to AEP. The Debtors presented the Plan as a foregone conclusion, in contrast to a more typical situation where the Plan is developed jointly with the Committee and other parties-in-interest. Therefore, the Committee had an uphill battle in negotiating changes to the Plan against the already unified front of these significant parties. According to the Debtors, the "primary purpose of the Plan is to substantially de-leverage the Debtors' balance sheet and put into place a sustainable long-term capital structure under what is commonly referred to as a "leveraged buy-out." The Plan provides for releases of claims against the participants in the leveraged buy-out transactions, in exchange for the concessions made by the first and second lien lenders, as well as the equity holders under the Plan. The Committee has reviewed the general structure of the leveraged buy-out transactions and the realistic alternatives available to the unsecured creditors. While there is some possibility that the Committee could through litigation attack and unwind the leveraged buy-out transactions, that battle could threaten the profitability or size of the Debtors' business, or even its continued viability. In addition, success in this effort would not necessarily translate into a greater return to unsecured creditors than that offered in the Plan. The success of the Debtors' business so that it would have the ability to make any payments to unsecured creditors, and the relative return to unsecured creditors, as well as the likelihood of success in objecting to the Plan, were important factors in the Committee's deliberations. Despite the referenced difficulty in negotiating any changes to the Plan, the Committee was successful in extracting important concessions from the Debtors regarding the Plan. Specifically, the Committee was able to: (a) ensure a specific date for the commencement of payment and issuance of shares to Class U-2 and Class U-4 creditors, respectively; (b) clarify (and in the Committee's opinion significantly expand) the number and types of creditors falling into Class U-2; (c) obtain a waiver of the Debtors' ability to bring in excess of US$60,000,000 of potential preference claims against unsecured creditors; and (d) limit certain setoff rights of the Debtors and preserve certain statutory lien rights. With these modifications of the Plan, the Committee believes: (a) that the Plan provides a far greater benefit to unsecured creditors generally than a liquidation of the Debtors; (b) that the Plan provides a significant return for the vast majority in number of the unsecured creditors, those in Class U-2); and (c) if the Plan structure dividing the unsecured creditors into two classes is found to be unconfirmable, the dividend to Class U-2 unsecured creditors would be significantly less, the stock issuance to Class U-4 may not occur and there would be a very substantial risk that the reorganization would fail, based on the Plan support agreements unwinding and the "New Money" provided by AEP would be lost. That would leave unsecured creditors with the prospect of having to pursue the leveraged buy-out claims and seek a litigated resolution of their unsecured claims. Considering all of the foregoing facts and circumstances, the Committee supports approval of the Plan. The Committee urges each unsecured creditor to carefully review and analyze the Plan and its terms. The Committee would be pleased to respond to any questions that you have regarding the Disclosure Statement, the Plan or this letter. If you have any questions, please contact Jay L. Welford or Judith Greenstone Miller, the Committee's counsel at (248) 351-3000 or email them at jwelford@jaffeelaw.com or jmiller@jaffelaw.com or via facsimile at (248) 351-3082. Very truly yours, The Official Committee of Unsecured Creditors of BHM Technologies Holdings, Inc., et al. cc: Jay L. Welford Judith Greenstone Miller The Members of the Committee Chanin Capital Partners Headquartered in Ionia, Michigan, BHM Technologies Holdings Inc. -- http://www.browncorp.com/-- manufactures and sells automobile parts including air bags and electrical systems. It has manufacturing facilites in Mexico and operates under Brown Corp. BHM Technologies Holdings, Inc. and 14 affiliates filed separate voluntary petitions under Chapter 11 on May 19, 2008 (Bankr. W.D. Mich. Lead Case No. 08-04413). Hannah Mufson McCollum, Esq., Kay Standridge Kress, Esq., Robert S. Hertzberg, Esq., and Leon R. Barson, Esq. of Pepper Hamilton LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for bankruptcy, it listed estimated assets and debts to be both between US$100 million and US$500 million. The Debtors have until Sept. 16, 2008, to exclusively file their bankruptcy plan. (BHM Technologies Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) BHM TECHNOLOGIES: Court Approves Chanin as Committee Advisor ------------------------------------------------------------ The United States Bankruptcy Court for the Western District of Michigan approved the retention of Chanin Capital Partners as the financial advisor of the Official Committee of Unsecured Creditors of BHM Technologies Holdings, Inc., and its debtor-subsidiaries. The Court says that based upon the testimony and other evidence it received on August 7, 2008, it will not deny Chanin Capital Partners' financial expertise and independent advice on matters crucial to the Official Committee of Unsecured Creditors' statutory and fiduciary role. The Court adds that he understands and shares the concerns of the Debtors' First Lien Lenders, including the multiplier effect and need to minimize professional expenses but disagrees with the suggestion that the Committee can rely on information transmitted to it by the Debtors' financial advisors, without the independent advice to assist the Committee in digesting the information, is doubtful. The argument that the Committee can rely on AlixPartners, LLP, and Rothschild Inc., the Debtor's court- appointed advisors, confuses financial information with professional advice, the Court says. The Court says that: (a) Chanin's retention is necessary to permit the Committee to fulfill its statutory and fiduciary role; (b) Chanin is a fitting choice; and (c) the proposed compensation arrangement is reasonable, subject to the procedures and requirements of Section 330 of the Bankruptcy Code and related authorities. Headquartered in Ionia, Michigan, BHM Technologies Holdings Inc. -- http://www.browncorp.com/-- manufactures and sells automobile parts including air bags and electrical systems. It has manufacturing facilites in Mexico and operates under Brown Corp. BHM Technologies Holdings, Inc. and 14 affiliates filed separate voluntary petitions under Chapter 11 on May 19, 2008 (Bankr. W.D. Mich. Lead Case No. 08-04413). Hannah Mufson McCollum, Esq., Kay Standridge Kress, Esq., Robert S. Hertzberg, Esq., and Leon R. Barson, Esq. of Pepper Hamilton LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for bankruptcy, it listed estimated assets and debts to be both between US$100 million and US$500 million. The Debtors have until Sept. 16, 2008, to exclusively file their bankruptcy plan. (BHM Technologies Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEMGROUP LP: Bominflot Insists Ownership of Fuel Oil ---------------------------------------------------- Debtor SemMaterials, L.P., ordered on July 8, 2008, 7,500 barrels of No. 6 Fuel Oil from Bominflot Atlantic, L.L.C., which markets bunker fuel to marine vessels. SemMaterials requested the transfer of the Fuel from Bominflot's tank to SemMaterials' tank on July 10. Bominflot asked Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware to determine that Bominflot is the equitable owner of the Fuel, and require SemMaterials to return the Fuel. Representing Bominflot, Daniel K. Astin, Esq., at Ciardi Ciardi & Astin, P.C., in Wilmington, Delaware, told the Court that following the Transfer, SemMaterials may have removed a certain amount of Fuel, leaving a residuary amount in the SemMaterials tank. On July 16, 2008, Bominflot invoiced SemMaterials for the total amount of US$837,015, consistent with the ordinary practice in transactions between the parties. Upon learning of the Debtors' liquidity troubles, Eugene Owen, Bominflot's vice-president, called SemMaterials to for assurance of payment of the Invoice. Kevin Clement, SemMaterials' vice- president of supply and marketing, informed Mr. Owen that the Invoice will be paid in full on July 18, in accordance with the contractual terms on the Invoice. Bominflot complained that on July 18, 2008, the Invoice remained unpaid. Bominflot demanded the return of the Fuel, but SemMaterials refused. SemMaterials falsely assured Bominflot of payment and misrepresented its solvency, Bominflot asserts. Bominflot commenced a proceeding in the Circuit Court for the City of Chesapeake, Virginia, seeking to enforce its reclamation rights and right to payment of US$350,000 in punitive damages. A. Bominflot Wants Stay Lifted The Troubled Company Reporter said on July 31, 2008, that Bominflot entered into a sale contract with Debtor SemMaterials, L.P., on July 8, 2008, for the sale of 7,507 barrels of fuel oil, totaling US$837,015. At SemMaterials' direction, the Fuel Oil was transferred from Bominflot's Shore Tank 603 to Shore Tank 701, located at a tank storage facility in Chesapeake, Virginia. The transfer took place from July 9 to July 10. B. SemMaterials, BofA Respond SemMaterials, L.P., argued that Bominflot Atlantic, L.L.C.'s motion to pursue its reclamation claim in a state court action violates Section 546(c) of the Bankruptcy Code, which provides for the exclusive remedy for a seller to reclaim goods from a debtor in bankruptcy. SemMaterials insisted that Bominflot has not alleged any fact that makes its situation different from any other creditor in the Debtors' Chapter 11 cases. SemMaterials further stated that the Debtor's estates will suffer substantial harm if the automatic stay is modified, since they will have to expend funds in defending against Bominflot's claim. Bank of America, N.A., as administrative agent for the Debtors' prepetition lenders, opposed Bominflot's request, stating that Bominflot's liens as a secured party are superior to Bominflot's reclamation claim. Since Bominflot's reclamation rights are subordinate, Bominflot cannot demonstrate a cause for relief from the automatic stay, BofA asserted. Moreover, BofA asserted that lifting the automatic stay to allow "piecemeal litigation" will severely prejudice the Debtors' estate and its creditors. SemMaterials and BofA asked the Court to deny Bominflot's motion for relief from the automatic stay. 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. SemGroup L.P. and its debtor-affiliates filed for Chapter 11 protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-11525). 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, represent the Debtors in their restructuring efforts. 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; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEMGROUP LP: Reserves US$1,100,000 for 230 Laid-Off Employees ------------------------------------------------------------- SemGroup, L.P., and its debtor-affiliates had sought the permission of Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware to pay US$1,100,000 in severance packages, averaging to two weeks' salary, to about 276 of their employees. On Aug. 11, 2008, SemGroup laid off more than 100 employees from its office in Tulsa, Oklahoma, and 120 employees from its other offices in the United States. According to The Tulsa World, the US$1,100,000 severance packages, if approved, will be used to pay the laid off employees. In SemGroup's Chapter 11 Petition, Terrence Ronan, the company's senior vice president of finance, told Judge Shannon that the company anticipates to lay off 276 employees who do not have employment contracts with SemGroup or any of its affiliates. Officials have also indicated that all SemGroup LP employees likely will be laid off eventually, or will join asset purchasers, The Tulsa World said. Prior to August 11, SemGroup employed 400 people in Tulsa, and 2,000 nationwide. Mr. Ronan said in his affidavit supporting SemGroup's Chapter 11 Petition that the workforce reduction is part of the company's cost-saving measures to manage its liquidity crisis. SemGroup spokeswoman Brenda Adrian told The Tulsa Work that the layoffs were handled individually, and were "across the board" of the company's subsidiaries. It's a difficult decision every time you have to lay anybody off, Ms. Adrian told The Tulsa World. "This is a very challenging environment that SemGroup is dealing with." Dan Safranek, a Tulsa financial investment adviser, told The Tulsa World that the layoffs may give a hint into the short-term future. The US$250,000,000 DIP loan sought by the company was intended to keep the company afloat, but the layoffs may mean that there are potential buyers of the company, the newspaper stated. 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. SemGroup L.P. and its debtor-affiliates filed for Chapter 11 protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-11525). 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, represent the Debtors in their restructuring efforts. 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; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEMGROUP LP: Samson Asserts US$39,740,100 in Unpaid Oil and Gas --------------------------------------------------------------- Samson Resources Company, together with Samson Lone Star, LLC, and Samson Contour Energy E&P, LLC, operates numerous wells in Colorado, Kansas, Louisiana, New Mexico, North Dakota, Oklahoma, Texas, and Wyoming. Samson sold oil and gas to SemGroup, L.P. and its debtor-affiliates, pursuant to six purchase agreements: Agreement Debtor Counterparty --------- ------------------- Domestic crude oil Seminole Transportation and Gathering Domestic crude oil SemCrude, L.P. Domestic crude oil Eaglwing Trading, Inc. Domestic crude oil Eaglwing, L.P. Purchase Agreement Samson Contour Gas purchase contract Warren NGL, Inc./Dynegy Midstream Services, L.P. Under the agreements, Samson agreed to sell oil and gas to the Debtors as first purchaser on a monthly basis, and the Debtors agreed to remit payment on the 20th day of the month following the purchase. Samson sold oil and gas to the Debtors until July 18, 2008, when Samson asserted its contractual rights for adequate assurance of payment and suspended the sales. Samson complained that the Debtors have not paid for the oil and gas sold from June 1 to July 18, 2008, which totals US$39,740,100. Samson asserted that the Debtors had acquired limited amounts of the oil and gas, even after it notified the Debtors of the suspension. Samson asked the U.S. Bankruptcy Court for the District of Delaware to enter an injunction, requiring the Debtors, Bank of America, N.A., to segregate the proceeds in their possession from any sale of the oil and gas acquired from Samson. 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. SemGroup L.P. and its debtor-affiliates filed for Chapter 11 protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-11525). 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, represent the Debtors in their restructuring efforts. 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; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEMGROUP: US$2MM Eaglwing Funds Not Part of Estate, Vess Oil Says ----------------------------------------------------------------- Vess Oil Corporation and Debtor Eaglwing, L.P., agreed on an arrangement, under which Eaglwing, along with IMS, its independent contractor, provided the payor services related to the sale of Kurten Field Products. Vess Oil Corporation operates oil and gas wells in Texas, including producing properties in Kurten Field in Brazos County, Texas. Vess operates the Kurten Field and has an affiliated ownership under the name VOC Brazos Energy partners, L.P. As part of the Eaglwing Arrangement, SemGroup, L.P. and Eaglwing directed IMS to provide the division of interest calculations and the check preparation services, related to the sale of the Kurten Field Products. Payments from the gas and liquids purchaser were made directly to Vess. Vess paid the gas revenue to Eaglwing on a monthly basis, for disbursement to the royalty and working interest owners. In March 2005, Vess entered an agreement with Teppco Crude Oil LLC for the purchase of Kurten Field Products. Under the Eaglwing Arrangement, Teppco was directed to pay directly to Eaglwing, which will remit the net amount directly to the Vess Group. According to Karen Bifferato, Esq., at Connoly Bove Lodge & Hutz LLP in Wilmington, Delaware, during the 30-day hold period, Eaglwing collected interest on the funds received from Teppco and Vess. Michael Vess, president of Vess, had contacted the Debtors and asked to discontinue the monthly service fees, stating that as Eaglwing received payments from Teppco and Vess, it benefited from holding the cash funds for approximately 30 days. The Debtors had agreed to stop invoicing Vess for the monthly fee in lieu of returning the Eaglwing' interest on holding the Funds. Ms. Bifferato told the U.S. Bankruptcy Court for the District of Delaware that the Vess Group has not received the US$2,860,583 distribution payment from Eaglwing for May 2008, which was due to be paid on July 20, 2008. She Bifferato maintained that Eaglwing held the Funds in trust for the benefit of the Vess Group, and was required to transfer the Funds on 20th day of each month. Ms. Bifferato emphasized that the Funds did not constitute a property of the Debtors. Eaglwing has refused to respond to Vess' demands to turn over the Funds. Accordingly, Vess asked the Court to: -- declare that the Funds are not part of the Debtors' estate; -- require an accounting from the Debtors; -- require the Debtors to turn over the Funds to Vess; and -- award the attorneys' fees and costs of Vess. About SemGroup L.P. SemGroup L.P. -- http://www.semgrouplp.com/-- is a midstream service company providing the energy industry means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end users and consumers of crude oil, natural gas, natural gas liquids, refined products and asphalt. Services include purchasing, selling, processing, transporting, terminaling and storing energy. SemGroup serves customers in the United States, Canada, Mexico, Wales, Switzerland and Vietnam. SemGroup L.P. and its debtor-affiliates filed for Chapter 11 protection on July 22, 2008 (Bankr. D. Del. Lead Case No. 08-11525). John H. Knight, Esq., L. Katherine Good, Esq. and Mark D. Collins, Esq. at Richards Layton & Finger; Harvey R. Miller, Esq., Michael P. Kessler, Esq. and Sherri L. Toub, Esq. at Weil, Gotshal & Manges LLP; and Martin A. Sosland, Esq. and Sylvia A. Mayer, Esq. at Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. Kurtzman Carson Consultants L.L.C. is the Debtors' claims agent. RUS$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; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) VITRO SAB: Sets New Closing Date for Shares Purchase on Jan. 10 --------------------------------------------------------------- Vitro S.A.B. de C.V.'s subsidiary Vimexico, S.A. de C.V. (Vimexico), in conjunction with the Prado Family members and Invergar Participaciones Inmobiliarias, S.L., its joint venture partners in its Spanish subsidiary Vitro Cristalglass, S.L., agreed to establish January 10, 2009, as the new closing date for the purchase by Vimexico of its joint venture partners' 40 percent stake in Vitro Cristalglass. The transaction is estimated at EUR$31 million. Vitro Cristalglass, part of Vitro's Flat Glass business unit, is the industry leader in the manufacturing, distribution and marketing of specialty glass for the construction industry in Spain and Portugal. It also participates in the French construction industry through its subsidiary Vitro Cristaglass France. Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a leading global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 27, 2008, Standard & Poor's Ratings Services revised its outlook on Vitro S.A.B. de C.V. to negative from stable. At the same time S&P affirmed its 'B' long-term corporate credit and senior unsecured ratings on Vitro. As reported in the Troubled Company Reporter-Latin America on April 30, 2008, Fitch affirmed Vitro, S.A.B. de C.V.'s Foreign currency issuer default rating at 'B'; Local currency issuer default rating at 'B'; and Senior unsecured notes due in 2012, 2013 and 2017 at 'B+/RR3'. ======= P E R U ======= BUNGE LTD: CEO to Address Lehman Brothers Conference On Sept. 3 --------------------------------------------------------------- Bunge Limited Chairperson and Chief Executive Officer, Alberto Weisser and Chief Financial Officer, Jacqualyn Fouse will address the Lehman Brothers Back-to-School Conference in Boston on Sept. 3, 2008, at 9:00 a.m. The presentation will be webcast live at: http://www.Bunge.com. To access the webcast, click on the "News and Information" link on the Bunge homepage then select "Webcasts and Upcoming Events". Click on the link for the "Lehman Brothers Back-to-School Conference". A replay of the webcast, available later in the day, will be archived on the Bunge Web site. To access the replay, go to "News and Information", select the "Audio Archive" link and follow the prompts to access the presentation. Headquartered in White Plains, New York, Bunge Ltd. (NYSE: BG) is a global agribusiness company which supplies fertilizer to farmers, originates, transports and processes oilseeds, grains and other agricultural commodities worldwide, produces food products for commercial customers and consumers, and supplies raw materials and services to the biofuels industry in South America and Asia. The company has operations in Brazil, Peru and Argentina. * * * As reported in the Troubled Company Reporter-Latine America on July 31, 2008, Moody's Investors Service changed the outlook for Bunge Ltd.'s long-term debt to stable from negative, including the guaranteed debt of subsidiaries rated Baa2; and the preferred stock of Bunge Ltd., rated Ba1. The rating outlook for the senior long-term debt of Corn Products International, Inc., rated Baa2, also was changed to stable from negative. ==================== P U E R T O R I C O ==================== HECTOR JIMENEZ: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Hector Jimenez Ramos Calle 6 Numero 17 Extension Quintas De Monserrate Ponce, PR 00731 Bankruptcy Case No.: 08-05383-11 Chapter 11 Petition Date: August 20, 2008 Court: District of Puerto Rico (Old San Juan) Debtor's Counsel: Modesto Bigas Mendez, Esq. (modesto@coqui.net) Bigas & Bigas P.O. BOX 7462 Ponce, PR 00732 Tel: (787) 844-1444 Total Assets: US$5,661,512 Total Debts: US$888,593 A copy of the Debtor's petition is available for free at: http://bankrupt.com/misc/prb08-05383-11.pdf RELIABLE MEDICAL: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Reliable Medical Equipment Corp P.O. Box 195317 San Juan, PR 00919 Bankruptcy Case No.: 08-05353-11 Chapter 11 Petition Date: August 19, 2008 Court: District of Puerto Rico (Old San Juan) Debtor's Counsel: Juan A. Santos Berrios, Esq. (jsantosb@prtc.net) Law Offices of Juan A. Santos Berrios PSC P.O. Box 9102 Humacao, PR 00792-9102 Tel: 787-285-1001 Fax: 787-285-8358 Total Assets: US$1,439,825 Total Debts: US$1,694,910 A copy of the Debtor's petition is available for free at: http://bankrupt.com/misc/prb08-05353-11.pdf =============================== T R I N I D A D & T O B A G O =============================== HINDU CREDIT: Harry Harnarine Says He is Prepared to Go to Jail --------------------------------------------------------------- Hindu Credit Union Co-Operative Society Ltd. president, Harry Harnarine, said at a press conference that he is prepared to go to jail for contempt of court, Trinidad and Tobago Guardian reports. The report says Mr. Harnarine called the conference after Commissioner Charles Mitchell served him an affidavit on Aug. 26. Mr. Harnarine said he is prepared to disclose financial details despite Judge Nolan Bereaux's order not to publish them. The Guardian relates, citing Mr. Mitchell, that a document from Ernst and Young, titled "Status report?discussion paper not for distribution?draft", was given to Justice Bereaux on July 23 during an ex-parte injunction granting the commissioner to turnover HCU to receiver, Ramdath Dave Rampersad. According to the report, the irate HCU president denied the written report, with his attorney Odai Ramischand, saying Mr. Mitchell and the auditors insisted the report was oral. Mr. Harnarine, further said he was "entitled to a copy of that report because it affects a lot of shareholders". "If I have to pay the price in prison for contempt to bring out the truth, I will do it. The judge said don?t disclose details of the finances of the HCU to the public, but I will release it. I hope the Government is not involved, along with other religious groups," The Guardian quoted Mr. Harnarine as saying. Mr. Mitchell stated that the 15-page report, presented by Maria Daniel of Ernest and Young and lodged in the court with Senior Counsel, Reginald Armour on July 23, 2008, was consistent with his duty as an an ex-parte applicant to fully disclose the report. The affidavit was lodged but not filed due to the sensitive and confidential information contained therein which could compromise section 4 (of the Cooperatives Societies Act) inquiry, The Guardian notes. Headquartered in Borough, Chaguanas, Hindu Credit Union Co- Operative Society Limited -- www.ourhcu.com -- reportedly has between US$115.2 million and US$131.6 million in assets and a total of US$32.9 million in liabilities. It has 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. ================= V E N E Z U E L A ================= NORTHWEST AIRLINES: To Utilize Delta Global Services ---------------------------------------------------- In light of its proposed merger with Delta Air Lines, Inc., Northwest Airlines Corp. ended its contract with French-owned Worldwide Flight Services for ground services at Bradley International Airport, and decided to use Delta Global Services, a Delta subsidiary, Courant.com reports. Delta spokeswoman Susan Elliott has stated that Delta Global won the Contract in competitive bidding. With Northwest's reduced schedule at Bradley Airport, Worldwide's services are no longer necessary, Northwest's Vice President for Communications Tammy Lee told Courant.com. As a result of the canceled Agreement, Worldwide told the Department of Labor that it plans to shut down operations at the Bradley Airport effective October 2, 2008, and contemplates 74 job cuts, says the report. Delta Global plans to employ 30 additional employees at Bradley Airport, and are considering Worldwide's workers who are represented by the Transport Workers Union of America, Ms. Elliott said. Worldwide employees have "hard-to-obtain" security clearances; hence the Union is "cautiously optimistic" that they would find work with Delta, Courant.com says, quoting Union spokesperson Jamie Horwitz. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE: DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 25, 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. (Delta Air Lines Bankruptcy News, Issue No. 106; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Scott L. Hazan, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C. as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and US$17.9 billion in total debts. On Jan. 12, 2007, the Debtors filed with the Court their chapter 11 plan. On Feb. 15, 2007, the Debtors filed an amended plan and disclosure statement. The Court approved the adequacy of the Debtors' amended disclosure statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' amended plan. That amended plan took effect May 31, 2007. (Northwest Airlines Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on July 29, 2008, Standard & Poor's Ratings Services lowered its ratings on Northwest Airlines Corp. and subsidiary Northwest Airlines Inc. (both rated B/Negative/--), including lowering the long-term corporate credit ratings on both entities to 'B' from 'B+', and removed the ratings from CreditWatch, where they had been placed with negative implications April 15, 2008. The outlook is negative. The downgrade reflects expected losses and reduced or negative operating cash flow caused by high fuel prices. S&P also lowered our ratings on enhanced equipment trust certificates, in some cases by more than one notch. PETROLEOS DE VENEZUELA: Increases Supply Capacity for El Tablazo ---------------------------------------------------------------- The Management of Transoceanic Gas Pipeline, Antonio Ricaurte Run, worked on relocation of a pipeline stretching from Ramon Laguna station to Ana Maria Campos Petrochemical Complex, located on the Eastern coast of Lake Maracaibo, western Zulia state. The works undertaken by the Petroleos de Venezuela S.A. subsidiary to increase transportation capabilities from the transoceanic system through the fertilizers plant at Ana Mar�a Campos Petrochemical Complex aimed at securing the supply of 50 million cubic meter of gas per day, needed to produce 90 metric tons per day of urea. This component is used as raw material for the fertilizers manufactured by Pequiven, which are indispensable for crops and food production. The works on cut and connection of the gas pipeline were executed by 65 professionals, who were responsible for the laying, welding, coating and quality control to ensure a safe system. Petrochemical Revolution At the beginning, this system encompassed 26 kilometers of 12?-diameter pipes. The actions of the gas business helped to enlarge the corridor with cutting-edge technology by means of a sub-lake network of 2 kilometers long made up of such pipes. This will increase the gas volume in order to meet the consumption needs of the domestic agricultural and livestock sector. The action taken by the industry contributes to the development of the agricultural and livestock sector and food independence by introducing Venezuela as the largest supplier of fertilizers in Latin America. Based on the commissioning of ambitious projects on energy development, the new PDVSA Gas keeps on boosting scientific and technological growth and industrialization of hydrocarbons and byproducts. About Petroleos de Venezuela 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. PETROLEOS DE VENEZUELA: To Meet With Conoco on Assets Acquisition ----------------------------------------------------------------- Petroleos de Venezuela SA's Director Eulogio del Pino said that the firm will meet with ConocoPhillips to discuss the 2007 nationalization of heavy oil projects in the Orinoco Belt, which included ConocoPhillips' assets, Reuters reports. Reuters relates that ConocoPhillips filed arbitration proceedings against the Venezuelan government, Petroleos de Venezuela's owner, for last year's nationalization of heavy oil projects in the Orinoco Belt. The two firms have been in talks to reach an out- of-court compensation settlement, the same report says. ?We are advancing ... next week we have a meeting,? Reuters quoted Mr. del Pino as saying. 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 V. Profetana, Sheryl Joy P. Olano, Rizande de los Santos, and Pamella Ritah K. Jala, Editors. Copyright 2008. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$625 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *