/raid1/www/Hosts/bankrupt/TCRLA_Public/080910.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, September 10, 2008, Vol. 9, No. 180
Headlines
A R G E N T I N A
ALITALIA SPA: Newco to Shed Cargo and Maintenance Units
AEROLINEAS ARGENTINAS: Takeover Costs State US$1 Million Daily
BALLY TECHNOLOGIES: S&P Confirms 'BB' Corporate Credit Rating
GRINTEK SA: Files for Reorganization in Buenos Aires Court
IMPERIAL TRADE: Proofs of Claim Verification Deadline Is Oct. 24
INVERSIONES Y REPRESENTACIONES: Earns ARS54,875 in Yr. End June 30
JAVILO ARGENTINA: Proofs of Claim Verification Deadline Is Feb. 19
LANERA EL: Individual Reports Filing Deadline Is on February 11
PAIDO SA: Proofs of Claim Verification Deadline Is November 18
RAYO LASER: Trustee Verifying Proofs of Claim Until October 23
TELECOM ARGENTINA: Partners With Ciena for Network Expansion
* ARGENTINA: Spends US$1 Million Daily in Running Aerolineas
B A H A M A S
JETBLUE AIRWAYS: Waives Fees to Clients Affected by Hurricane Ike
B E R M U D A
EASTBROOK LIMITED: Proof of Claim Filing Deadline Is Sept. 19
EASTBROOK LIMITED: To Hold Final Shareholders Meeting Oct. 7
MAN IP-220: Deadline for Proof of Claim Filing Is Sept. 19
MAN IP-220: Holding Final Shareholders Meeting on Oct. 17
MAN PERFORMANCE: Proof of Claim Filing Deadline Is Sept. 19
MAN PERFORMANCE: Holds Final Shareholders Meeting on Oct. 17
MAN PERFORMANCE TRADING: Claims Filing Deadline Is Sept. 19
MAN PERFORMANCE TRADING: Final Shareholders Meeting Is Oct. 17
MOMOYAMA MANAGEMENT: Proof of Claim Filing Is Until Sept. 19
MOMOYAMA MANAGEMENT: Sets Final Shareholders Meeting on Oct. 10
PANTHER RE: Moody's Removes Debt Ratings After Term Loan Repayment
SAGECREST LTD: Court Names Peter C.B. Mitchell as Liquidator
SCFR LIMITED: Court Appoints Peter C.B. Mitchell as Liquidator
SEA CONTAINERS: To Ink Scheme of Arrangement With Creditors
TRADING-220: Deadline for Proof of Claim Filing Is Sept. 19
TRADING-220: Holding Final Shareholders Meeting on Oct. 17
WHITE MOUNTAIN: Jeff Davis to Become Senior VP and Chief Actuary
XL CAPITAL: Taps J. Rosengarten as Chief Enterprise Risk Officer
B R A Z I L
BANCO DO BRASIL: Assists Gov't in Sovereign Wealth Fund Project
BANCO NACIONAL: July 2008 Loans Reached BRL79.1 Billion
CIA. SIDERURGICA: Moody's Lifts BRL250MM Debentures Rating to Ba1
GERDAU AMERISTEEL: Gets Spherion as Recruitment Outsourcing Firm
GLOBAL CROSSING: Reaches Deal With Brazilian Network Information
PROPEX INC: Creditors Panel Challenges DIP Lenders' Liens
PROPEX INC: Wants Court Nod on US$1.7 Million Pension Plan Payment
PROPEX INC: Wants to Amend Medical Program to Cease Coverage Offer
C A Y M A N I S L A N D S
ALTERNATIVE INVESTMENTS: Claims Filing Deadline Is Sept. 16
ALUMINCO LIMITED: Proof of Claim Filing Deadline Is Sept. 16
CIL EAGLE: Deadline for Proof of Claim Filing Is Sept. 16
NETANYA MARINE: Proof of Claim Filing Deadline Is Sept. 16
PARMALAT SPA: Board Okays EUR128.4 Mln Partial Dividend for 2008
PARMALAT SPA: Exercised Warrants Hike Share Capital by EUR27,000
PARMALAT SPA: Posts EUR426.9 Mln Group Net Profit for H1 2008
PHOENIX QUAKE: Filing for Proof of Claim Deadline Is Sept. 16
PHOENIX QUAKE WIND: Proof of Claim Filing Deadline Is Sept. 16
PHOENIX QUAKE WIND II: Proof of Claim Filing Is Until Sept. 16
D O M I N I C A N R E P U B L I C
BANCO DEL PROGRESO: Ex-Prexy's Appeal on DOP14BB Fraud Case Junked
J A M A I C A
AIR JAMAICA: AA Revenue Guarantee Deal Faces More Hurdles
M E X I C O
AMC ENTERTAINMENT: Earns US$10.8 Mil. in 1st Quarter Ended July 3
CREDITO INMOBILIARIO: Moody's Puts B1 Rating on MXN6 Bil. Program
FEDERAL-MOGUL: Court Defers Claims Objection Deadline to Dec. 27
SEMGROUP LP: Canadian Court Extends CCAA Stay Until November 21
* MEXICO: S&P Says RMBS Index Delinquencies & Defaults Up in July
P A N A M A
DIGICEL GROUP: Mulls US$334 Million Investment in Panama
P U E R T O R I C O
PORTOLA PACKAGING: Plan Confirmation Hearing Slated for October 6
T R I N I D A D & T O B A G O
HINDU CREDIT: HCUDSG Discord Prompts Two Members to Resign
LYONDELLBASELL: To Build Polyolefins Plant in Trinidad and Tobago
U R U G U A Y
NAVIOS MARITIME: Management Team to Present at Two NY Conferences
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Partners w/ PETROSA in Exploration Project
- - - - -
=================
A R G E N T I N A
=================
ALITALIA SPA: Newco to Shed Cargo and Maintenance Units
-------------------------------------------------------
The reorganized Alitalia will focus on providing passenger
transport services and will stop its cargo and heavy maintenance
operations, Agenzia Giornalistica Italia reports, citing Compagnia
Aerea Italiana s.r.l. CEO Rocco Sabelli.
Mr. Sabelli told unions that Alitalia will continue focusing on
its core operations while offloading unrelated units.
"We have to follow logic and not ideology, Mr. Sabelli told
unions. "It is imperative to focus on our core business: an
excellent company for passenger transport."
CAI's chief executive, however, said that "administrative
services, the call center, and IT, and the rest is all in."
As reported in the Troubled Company Reporter-Europe on Sept. 3,
CAI, a consortium of local investors planning to acquire Alitalia,
has submitted a EUR400 million conditional offer to acquire some
assets of the national carrier.
The consortium includes:
* AirOne S.p.A. of Carlo Toto;
* IMMSI S.p.A. of Roberto Colaninno;
* Atlantia S.p.A. of the Benetton family;
* Intesa Sanpaolo S.p.A.;
* Fondiaria SAI S.p.A.; and
* 11-12 other investors.
The offer, valid for a few weeks, is subject to several conditions
including:
* approval from Italian anti-trust agency and from the
European Commission; and
* acceptance by the trade union of 5,000-7,000 job cuts.
Augusto Fantozzi, Alitalia S.p.A.'s extraordinary commissioner,
confirmed receiving the offer.
About Alitalia
Based in Rome, Alitalia S.p.A. -- http://www.alitalia.it/--
provides air travel services for passengers and air transport of
cargo on national, international and inter-continental routes,
including United States, Canada, Japan and Argentina. The
Italian government owns 49.9% of Alitalia.
Despite a EUR1.4 billion state-backed restructuring in 1997,
Alitalia posted net losses of EUR256 million and EUR907 million
in 2000 and 2001 respectively. Alitalia posted EUR93 million in
net profits in 2002 after a EUR1.4 billion capital injection.
The carrier booked annual net losses of EUR520 million in 2003,
EUR813 million in 2004, EUR168 million in 2005, EUR625.6 million
in 2006, and EUR494.64 million in 2007.
Alitalia S.p.A. declared insolvency on Aug. 29, 2008, and filed
for commencement of extraordinary administration procedure at the
Tribunal of Rome. Italian Prime Minister Silvio Berlusconi has
appointed Augusto Fantozzi as extraordinary commissioner.
AEROLINEAS ARGENTINAS: Takeover Costs State US$1 Million Daily
--------------------------------------------------------------
Merco Press reports that the process is far from over and
operational debts keep mounting as the Argentine Congress
authorized last week the takeover of the country’s air flag
carrier Aerolineas Argentinas and subsidiary Austral.
The bill, the report says, was passed in the Senate by 46 positive
votes against 21 negative but does not confirm whether the state
is going to pay the price of the shares or whether the airlines
will be expropriated, as Argentine Transport Secretary Ricardo
Jaime had expected.
However, the bill named the Cassation Court to establish assets
value for which it has a 60 day deadline dating back to July 17,
Merco Press says.
According to the report, it was revealed this week by members of
the opposition that the money loosing and debt strapped airline
have cost the Argentine Treasury US$120 million since the
government took over daily operations last July, almost a million
US dollars per day.
The report relates Argentina’s powerful trade unions umbrella
grouping CGT secretary Juan Belen and APLA pilots’ union boss
Jorge Perez Tamayo have supported the law. Aeronautical unions
have for long supported the re-nationalization, often complaining
against Marsans over salaries, labour conditions, service delays
and irregularities.
Cassation Court head Daniel Martin, as cited by Merco Press, said
Marsans has been providing inaccurate information regarding the
airline's assets, since many differences were spotted in the
Marsans official assets report, adding that Marsans claimed 85
aircraft available in the airlines fleet but only 34 are running
while 55 are not in operation.
Citing Mr. Martin, the report states that help had been requested
from the UTN Technological University, UBA University of Buenos
Aires’ Economics School and DNA Aeronautical Department, in order
to define the value of the companies’ assets.
According to DNA figures cited by Merco Press, the Court
ascertained that Aerolineas has 89 aircraft, and that two planes -
Marsans had previously acknowledged to owning 85 - are operated by
Chilean airline Aerolineas del Sur, another was seized in Mexico
for transporting drugs, and the fourth is about to be sold.
Furthermore, Mr. Martin asserted that Marsans is not willing to
co-operate when it comes to providing information related to these
matters. Therefore, the Court has ordered it to supply all codes
and passwords to the company’s computer system, the report notes.
Inspections will be carried out in Aerolineas’ warehouse, where
the aircraft not serviceable are kept, the report says, citing
Mr. Martin.
Aerolineas Argentinas had financial problems in the past. As
reported in the Troubled Company Reporter on June 15, 2000,
Aerolineas Argentinas needed a US$650 million capital injection
and sweeping cost cuts to save it from bankruptcy. Aerolineas'
biggest shareholder covered a bulk of its losses, which Spanish
sources put at US$300 million in 2000. Aerolineas Argentinas
also defaulted on a US$50 million bonds due on Dec. 23, 2003.
In 2005 the airline admitted the possibility of letting
Argentine partners into the company. Earlier in 2008, Marsans
reached a preliminary accord to reduce its stake in Aerolineas
Argentinas to 35% from 95% including a local private investor
(35%) and greater participation of the Argentine state and
provinces.
BALLY TECHNOLOGIES: S&P Confirms 'BB' Corporate Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its issue-level and
recovery ratings to Bally Technologies Inc.'s proposed US$300
million senior secured credit facilities. The loans are rated
'BBB-' -- two notches higher than the 'BB' corporate credit rating
on the company -- with a recovery rating of '1', indicating that
lenders can expect very high (90% to 100%) recovery in the event
of a payment default.
At the same time, Standard & Poor's affirmed its 'BB' corporate
credit rating on Bally. The rating outlook is stable.
Proceeds from the credit facilities, which will consist of a draw
of approximately US$50 million on a US$75 million revolving credit
facility and a US$225 million term loan, will be used to refinance
the existing credit facilities. The proposed bank facility is due
four years from the close of the transaction.
"The 'BB' rating reflects Bally's exposure to product sales
volatility, the importance of sustained research and development
spending in order to maintain the quality of its products, the
existence of a much larger and well-established competitor
(International Game Technology), and the expectation for a
moderation in the operating environment during the next few
quarters as a result of slower replacement sales and economic
weakness," said Standard & Poor's credit analyst Melissa Long.
"These factors are tempered by the company's No. 2 position in the
North American gaming equipment market, its expanding base of
gaming devices and systems, and strong credit measures
for the rating, which we expect provide ample cushion in a
slowdown."
"For the 12 months ended June 30, 2008, Bally reported EBITDA of
US$272 million--up about 96% year over year," S&P said. "Pro
forma for this transaction, we expect leverage to be in the 1x
area, which represents a significant improvement over fiscal
2007, when leverage was about 2.3x. The credit measures are
currently strong for the rating and afford some flexibility for
share repurchases, acquisitions, or a weakening operating
environment," S&P related.
Headquartered in Las Vegas, Nevada, Bally Technologies, Inc.
(NYSE: BYI) -- http://www.BallyTech.com/-- designs,
manufactures, operates, and distributes advanced gaming devices,
systems, and technology solutions worldwide. Bally's product
line includes reel-spinning slot machines, video slots, wide-
area progressives and Class II lottery and central determination
games and platforms. Bally Technologies also offers an array of
casino management, slot accounting, bonus, cashless, and table
management solutions. The company also owns and operates
Rainbow Casino in Vicksburg, Mississippi. The company's South
American operations are located in Argentina. The company also
has operations in France, Germany, Macau, China, India, and the
United Kingdom.
GRINTEK SA: Files for Reorganization in Buenos Aires Court
----------------------------------------------------------
Grintek S.A. has requested for reorganization approval after
failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Grintek S.A. to negotiate a settlement with its creditors in
order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
IMPERIAL TRADE: Proofs of Claim Verification Deadline Is Oct. 24
----------------------------------------------------------------
The court-appointed trustee for Imperial Trade S.A.'s bankruptcy
proceeding, will be verifying creditors' proofs of claim until
October 24, 2008.
The trustee will present the validated claims in court as
individual reports on December 5, 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 Imperial Trade and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Imperial Trade's
accounting and banking records will be submitted in court on
February 23, 2009.
The trustee is also in charge of administering Imperial Trade's
assets under court supervision and will take part in their
disposal to the extent established by law.
INVERSIONES Y REPRESENTACIONES: Earns ARS54,875 in Yr. End June 30
------------------------------------------------------------------
IRSA Inversiones y Representaciones Sociedad Anonima has reported
a net income of ARS54,875 for the fiscal year ended June 30, 2008,
compared to ARS107,097 of fiscal year ended June 30, 2007.
Consolidated sales rose by 46.8%, up from ARS738.8 million as of
June 30, 2007 to ARS1,084.2 million as of June 30, 2008.
Sales and developments ARS196.8 million, offices and other rental
properties ARS101 million, shopping centers ARS345.4 million,
hotels ARS148.8 million, consumer financing ARS291 million and
financial operations and others ARS1.2 million.
Highlights:
-- Revenues increased 46.8%, from ARS738.8 million in 2007 to
ARS1,084.2 million in 2008. Operating income rose by 28.4%,
to ARS254.8 million, due to the increase in the operating
income posted by IRSA's rental segments: 46% as posted by
Shopping Centers; 166% as posted by the Offices segment and
23% as posted by the Hotels segment.
-- The shopping center segment continues to see its cash flows
grow, showing a solid performance: this segment's operating
income increased by 46% while the growth in revenues was of
28%. Occupancy continues to be high, attaining a 99.3% level
at the end of the fiscal year with the sales of IRSA's
tenants having grown by 31%.
-- The company continues to strengthen its position in the
Shopping Center business through acquisitions, developments,
improvements, optimization in leasable areas and better
tenant mix. IRSA made progress with its main development
through Panamerican Mall S.A. and have closed a deal to
acquire a mall in San Isidro. Both are expected to become
part of the company's operations during the current fiscal
year.
-- The office segment continues to post high occupancy levels
with income from rentals having grown by 81% compared to the
previous fiscal year due to the fact that additional square
meters have been phased into production and that upon
renewing lease agreements, rentals were revised up for IRSA's
income per square meter to match current market values.
-- In fiscal year 2008 IRSA added two premium office buildings:
the Bank Boston tower and the building commonly known as
Edificio Republica, both of them designed by Architect Cesar
Pelli. A significant number of office spaces had been
already vacated at Edificio Republica when IRSA acquired it.
These offices are now being leased at market values ranging
from US$ 37 to 40/sqm. The company also realized the
appreciation of some assets in this segment through the sale
of almost 30% of Edificio La Nacion. As a result of these
three transactions, IRSA's office gross leasable area rose by
18% to 163,725 square meters. As soon as the office building
at Dique IV is completed, the comapny will add 11,000 square
meters to its portfolio, which is expected to occur in the
current fiscal year.
-- IRSA have re-launched the Sales and Development segment
through an association with Cyrela Brazil Realty to develop a
new homebuilding concept in Argentina accompanied by an
innovating sales and financing policy. The launch of the
first project of this association in the Vicente Lopez
neighborhood has proven to be successful. IRSA-Cyrela is now
working on the launch of other projects.
Created in 1943, Inversiones y Representaciones S.A. aka IRSA
(NYSE: IRS) (BCBA: IRSA) is a leading company with activities in
the business of offices, commercial centers and hotels. It is
the only company in the industry whose shares are listed on the
Bolsa de Comercio de Buenos Aires and The New York Stock
Exchange. Through its subsidiaries, IRSA manages an expanding
top portfolio of shopping centers and office buildings,
primarily in Buenos Aires. The company also develops
residential subdivisions and apartments (specializing in high-
rises and loft-style conversions) and owns three luxury hotels.
Additionally, IRSA owns a 11.8% stake in Banco Hipotecario,
Argentina's largest mortgage supplier in the country which
shareholder's equity amounted to ARS2,247.6 million.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2008, Fitch Ratings upgraded Inversiones y
Representaciones S.A.'s ratings including its Foreign currency
Issuer Default Rating to 'B+' from 'B', Local currency IDR to
'B+' from 'B', US$150 million notes due in 2017 to 'B+/RR4' from
'B'. Fitch said all ratings have stable outlooks.
JAVILO ARGENTINA: Proofs of Claim Verification Deadline Is Feb. 19
------------------------------------------------------------------
The court-appointed trustee for Javilo Argentina S.A.'s bankruptcy
proceeding, will be verifying creditors' proofs of claim until
February 19, 2009.
The trustee will present the validated claims in court as
individual reports. 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
Javilo Argentina and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Javilo Argentina's
accounting and banking records will be submitted in court.
Infobae didn't state the submission dates for the reports.
The trustee is also in charge of administering Javilo Argentina's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Javilo Argentina S.A.
Esteban Echeverria - 1839
Buenos Aires, Argentina
LANERA EL: Individual Reports Filing Deadline Is on February 11
---------------------------------------------------------------
Roberto Gaztelu, the court-appointed trustee for Lanera El Mirador
Saici y A's bankruptcy proceeding, will present the validated
claims as individual reports in the National Commercial Court of
First Instance No. 24 in Buenos Aires, with the assistance of
Clerk No. 47, on February 11, 2009.
Mr. Gaztelu is verifying creditors' proofs of claim until
November 24, 2008. She will also submit to court a general report
containing an audit of Lanera El's accounting and banking records
on March 27, 2009.
Mr. Gaztelu is also in charge of administering Lanera El's assets
under court supervision and will take part in their disposal to
the extent established by law.
The debtor can be reached at:
Lanera El Mirador Saici y A
Paraguay 1345
Buenos Aires, Argentina
The trustee can be reached at:
Roberto Gaztelu
Uruguay 660
Buenos Aires, Argentina
PAIDO SA: Proofs of Claim Verification Deadline Is November 18
--------------------------------------------------------------
The court-appointed trustee for Paido S.A.'s bankruptcy
proceeding, will be verifying creditors' proofs of claim until
November 18, 2008.
The trustee will present the validated claims in court as
individual reports on February 3, 2009. 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 Paido S.A. and its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Paido S.A.'s
accounting and banking records will be submitted in court on
March 17, 2009.
The trustee is also in charge of administering Paido S.A.'s assets
under court supervision and will take part in their disposal to
the extent established by law.
RAYO LASER: Trustee Verifying Proofs of Claim Until October 23
--------------------------------------------------------------
The court-appointed trustee for Rayo Laser S.A.'s reorganization
proceeding will be verifying creditors' proofs of claim until
October 23, 2008.
The trustee will present the validated claims in court as
individual reports. 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 Rayo Laser and
its creditors.
Inadmissible claims may be subject to appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Rayo Laser's
accounting and banking records will be submitted in court.
Infobae didn't state the submission dates for the reports.
Creditors will vote to ratify the completed settlement plan
during the assembly.
TELECOM ARGENTINA: Partners With Ciena for Network Expansion
------------------------------------------------------------
Ciena(R) Corporation disclosed that Telecom Argentina S.A. has
deployed the CN 4200(R) FlexSelect(TM) Advanced Services Platform
in an extensive network upgrade and expansion. Ciena partnered
with Sofrecom Argentina, an Argentinean leader in information
technology and services, to deploy the solution in Telecom
Argentina's network.
A carrier with more than 12,000 kilometers of fiber deployed
throughout Argentina, Telecom Argentina provides fixed-line public
telecommunication services, international long-distance services,
data transmission and Internet services to residential and
business customers, and operates one of the largest networks in
the country. In recognition of its customers' evolving service
requirements, the operator deployed Ciena's CN 4200 in an
extensive DWDM upgrade to its optical network to support the
development of advanced broadband and business connectivity
services, including storage, by increasing available bandwidth on
an as-needed basis.
"As a leading service provider in the country, Telecom Argentina
is focused on the advancement of communications services within
the country. In support of that initiative, we needed enhanced
network flexibility and scalability to increase the number of
cities in which our services are available and to transform the
speed and simplicity of our service offering," said MartAn Wessel,
transport engineering manager at Telecom Argentina. "With Ciena's
CN 4200, we've implemented a multiservice aggregation and DWDM
transport solution capable of creating, delivering and managing
scalable support for multiple service types, allowing us to
compete more effectively and economically meet increasing traffic
demand as our network requirements continue to evolve."
Additional network upgrade phases currently underway will extend
Telecom Argentina's CN 4200 deployment to include Ciena's G10 and
G10X Ethernet Service Modules. The modules will deliver Layer 2
Ethernet aggregation, switching and transport capabilities as
simple plug-and-play upgrades to CN 4200. Telecom Argentina will
mainly utilize the modules to migrate its DSLAM infrastructure
from ATM over SDH backhaul connections to Gigabit Ethernet in
support of advanced communication services requirements. By
integrating Layer 2 aggregation functionality into the transport
network, Telecom Argentina will gain significant operational
efficiencies and service creation capabilities by requiring fewer,
more-centralized routers with better port utilization, as well as
eliminate the need for deploying standalone Ethernet switches in
most aggregation sites.
"Once Telecom Argentina deployed CN 4200 as a WDM overlay solution
to increase fiber capacity, it became apparent that they could
gain additional service and operational benefits with more
integrated functionality on the same platform," said Mike Aquino,
senior vice president of worldwide sales at Ciena. "Ciena's
combined packet-optical solution offers the operator an efficient
migration strategy to a dynamic network that delivers high-value
services with the performance requirements its end-users demand,
and to be selected by one of the leading service providers in
South America is a tremendous validation of our approach."
CN 4200 provides Telecom Argentina fully-programmable optical line
cards and highly-efficient wavelength utilization, based on ITU
G.709 OTN technology, by allowing grooming and aggregation of
multiple service types on a single wavelength. In addition, the
operator's new next-generation, service-enabled architecture now
supports legacy and new Ethernet and storage services with full
transparency and optimum service flexibility.
About Sofrecom Argentina
Since 1992, Sofrecom Argentina, a subsidiary of Sofrecom France
and a France Telecom Orange company, has been providing innovating
technological solutions to different industry sectors. Sofrecom
Argentina offers a wide range of professional services for
integration projects, Service Level Agreement and software
factories, on an ever more varied market landscape that features
not only telecommunications, but also bank, insurance, health and
industry.
About Ciena
Ciena Corporation -- http://www.ciena.com/-- specializes in the
transition to service-driven networks. The company provides
flexible platforms, intelligent software and professional services
to help its customers use their networks to fundamentally change
the way they compete. With a growing global presence, Ciena
leverages its heritage of practical innovation to deliver maximum
performance and economic value in communications networks
worldwide.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- provides
telephone-related services, such as international long-distance
service and data transmission and Internet services, and through
its subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Fitch Ratings upgraded Telecom Argentina's
foreign and local currency issuer default ratings to 'B+' from
'B'. Fitch said the outlook is positive.
* ARGENTINA: Spends US$1 Million Daily in Running Aerolineas
------------------------------------------------------------
Merco Press reports that the process is far from over and
operational debts keep mounting as the Argentine Congress
authorized last week the takeover of the country’s air flag
carrier Aerolineas Argentinas and subsidiary Austral.
The bill, the report says, was passed in the Senate by 46 positive
votes against 21 negative but does not confirm whether the state
is going to pay the price of the shares or whether the airlines
will be expropriated, as Argentine Transport Secretary Ricardo
Jaime had expected.
However, the bill named the Cassation Court to establish assets
value for which it has a 60 day deadline dating back to July 17,
Merco Press says.
According to the report, it was revealed this week by members of
the opposition that the money loosing and debt strapped airline
have cost the Argentine Treasury US$120 million since the
government took over daily operations last July, almost a million
US dollars per day.
The report relates Argentina’s powerful trade unions umbrella
grouping CGT secretary Juan Belen and APLA pilots’ union boss
Jorge Perez Tamayo have supported the law. Aeronautical unions
have for long supported the re-nationalization, often complaining
against Marsans over salaries, labour conditions, service delays
and irregularities.
Cassation Court head Daniel Martin, as cited by Merco Press, said
Marsans has been providing inaccurate information regarding the
airline's assets, since many differences were spotted in the
Marsans official assets report, adding that Marsans claimed 85
aircraft available in the airlines fleet but only 34 are running
while 55 are not in operation.
Citing Mr. Martin, the report states that help had been requested
from the UTN Technological University, UBA University of Buenos
Aires’ Economics School and DNA Aeronautical Department, in order
to define the value of the companies’ assets.
According to DNA figures cited by Merco Press, the Court
ascertained that Aerolineas has 89 aircraft, and that two planes -
Marsans had previously acknowledged to owning 85 - are operated by
Chilean airline Aerolineas del Sur, another was seized in Mexico
for transporting drugs, and the fourth is about to be sold.
Furthermore, Mr. Martin asserted that Marsans is not willing to
co-operate when it comes to providing information related to these
matters. Therefore, the Court has ordered it to supply all codes
and passwords to the company’s computer system, the report notes.
Inspections will be carried out in Aerolineas’ warehouse, where
the aircraft not serviceable are kept, the report says, citing Mr.
Martin.
* * *
The Troubled Company Reporter-Latin America reported on Aug. 13,
2008, that Standard & Poor's Ratings Services said that its
lowering of the sovereign ratings on the Republic of Argentina
will not immediately affect ratings on Argentine corporate
entities. S&P lowered the global scale ratings on Argentina to
'B' from 'B+' and the national scale ratings to 'raAA-' from
'raAA'. The outlook on the sovereign is stable, and the 'B'
short-term global scale rating remains unchanged.
=============
B A H A M A S
=============
JETBLUE AIRWAYS: Waives Fees to Clients Affected by Hurricane Ike
-----------------------------------------------------------------
JetBlue Airways Corporation has waived change fees and fare
differences to allow customers booked to or from Nassau, Bahamas
to postpone their travel plans due to the projected path of
Hurricane Ike.
Customers who are booked to travel September 7 - 8 to or from
Nassau may opt to change to new flights -- between the same cities
-- that depart anytime through September 10. All changes are
subject to seat availability and must be made prior to the
customer's originally scheduled departure. Customers may rebook
their travel online at the company's web site.
To check on the status of flights or to check the availability of
alternate flights, customers are encouraged to log on to the
company's web site or call 1-800-JETBLUE (538-2583). Customers
with web-enabled cell phones and PDAs may also check the status of
their flight via mobile.jetblue.com.
About JetBlue Airways
Based in Forest Hills, New York, JetBlue Airways Corporation
(Nasdaq: JBLU) -- http://www.jetblue.com/-- is a passenger
airline that provides customer service primarily on point-to-
point routes. As of Dec. 31, 2007, the company served 53
destinations in 21 states, Puerto Rico, Mexico and the
Caribbean.
JetBlue currently serves 53 cities with 600 daily flights.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 25, 2008, Moody's Investors Service downgraded the
Corporate Family and Probability of Default Ratings of JetBlue
Airways Corp. to Caa2 from Caa1, as well as the ratings of its
outstanding corporate debt instruments and certain Enhanced
Equipment Trust Certificates. Moody's said the outlook is
negative.
=============
B E R M U D A
=============
EASTBROOK LIMITED: Proof of Claim Filing Deadline Is Sept. 19
-------------------------------------------------------------
Eastbrook Ltd.'s creditors have until Sept. 19, 2008, to prove
their claims to Ernest A. Morrison, 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.
Eastbrook's shareholder decided on Sept. 2, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Ernest A. Morrison
c/o Milner House
18 Parliament Street,
Hamilton, Bermuda
EASTBROOK LIMITED: To Hold Final Shareholders Meeting Oct. 7
------------------------------------------------------------
Eastbrook Ltd. will hold its final shareholders meeting on Oct. 7,
2008, at 10:00 a.m., at the offices of Cox Hallett Wilkinson,
Milner House, 18 Parliament Street, Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which
the winding-up of the company has been conducted
and its property disposed of and hearing any
explanation that may be given by the liquidator;
-- determination by resolution the manner in
which the books, accounts and documents of the
company and of the liquidator shall be
disposed; and
-- passing of a resolution dissolving the
company.
Eastbrook's shareholder decided on Sept. 2, 2008, to place the
company into voluntary liquidation under Bermuda's Companies Act
1981.
The liquidator can be reached at:
Ernest A. Morrison
c/o Milner House
18 Parliament Street,
Hamilton, Bermuda
MAN IP-220: Deadline for Proof of Claim Filing Is Sept. 19
----------------------------------------------------------
Man IP-220 (Series A) Ltd.'s creditors have until Sept. 19, 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 IP-220's shareholders agreed on Aug. 29, 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 IP-220: Holding Final Shareholders Meeting on Oct. 17
---------------------------------------------------------
Man IP-220 (Series A) Ltd. will hold its final shareholders
meeting on Oct. 17, 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 IP-220's shareholders agreed on Aug. 29, 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 PERFORMANCE: Proof of Claim Filing Deadline Is Sept. 19
-----------------------------------------------------------
Man Performance Bond Euro Stars Ltd.'s creditors have until
Sept. 19, 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 Performance's shareholders agreed on Aug. 29, 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 PERFORMANCE: Holds Final Shareholders Meeting on Oct. 17
-------------------------------------------------------------
Man Performance Bond Euro Stars Ltd. will hold its final
shareholders meeting on Oct. 17, 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 Performance's shareholders agreed on Aug. 29, 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 PERFORMANCE TRADING: Claims Filing Deadline Is Sept. 19
-----------------------------------------------------------
Man Performance Bond Euro Stars Trading Ltd.'s creditors have
until Sept. 19, 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 Performance's shareholders agreed on Aug. 29, 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 PERFORMANCE TRADING: Final Shareholders Meeting Is Oct. 17
--------------------------------------------------------------
Man Performance Bond Euro Stars Trading Ltd. will hold its final
shareholders meeting on Oct. 17, 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 Performance's shareholders agreed on Aug. 29, 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
MOMOYAMA MANAGEMENT: Proof of Claim Filing Is Until Sept. 19
------------------------------------------------------------
Momoyama Management Service Ltd.'s creditors have until Sept. 19,
2008, to prove their claims to Christopher C. Morris, 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.
Momoyama Management's shareholder decided on Sept. 2, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Christopher C. Morris
c/o Century House
16 Par-la-Ville Road
Hamilton, Bermuda
MOMOYAMA MANAGEMENT: Sets Final Shareholders Meeting on Oct. 10
---------------------------------------------------------------
Momoyama Management Service Ltd. will hold its final shareholders
meeting on Oct. 17, 2008, at 9:30 a.m., at the offices of Arthur
Morris Christensen & Co., Century House, 16 Par-la-Ville 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.
Momoyama Management's shareholder decided on Sept. 2, 2008, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Christopher C. Morris
c/o Arthur Morris Christensen & Co.
Century House, 16 Par-la-Ville Road
Hamilton, Bermuda
PANTHER RE: Moody's Removes Debt Ratings After Term Loan Repayment
------------------------------------------------------------------
Moody's Investors Service has withdrawn the debt ratings of
Panther Re Bermuda Limited following repayment of the term loans
in full. The repayment followed the early termination of the
reinsurance agreement between Panther Re and Hiscox Lloyd's
Syndicate 33, which had provided the latter with protection on its
property catastrophe reinsurance portfolio. In the same action,
Moody's has also withdrawn the insurance financial strength rating
of Panther Re. Panther Re is a special-purpose reinsurer that is
commonly referred to as a 'sidecar'.
The ratings of Panther Re that were withdrawn by Moody's includes:
-- US$72 million Term A loan due November 2010 at Baa3;
-- US$144 million Term B loan due November 2010 at Ba2; and
-- insurance financial strength at A3.
Panther Re Bermuda Limited, based in Bermuda, is a licensed
Class 3 reinsurer that has entered into a collateralized quota
share reinsurance treaty with its sole client, Lloyd's Syndicate
33, as managed and underwritten by Hiscox Syndicates Limited.
SAGECREST LTD: Court Names Peter C.B. Mitchell as Liquidator
------------------------------------------------------------
The Supreme Court of Bermuda has appointed Peter C.B. Mitchell of
PricewaterCoopers Advisory Limited as the provisional liquidator
of SageCrest Ltd.
The court ordered the wind up of SageCrest on Sept. 2, 2008, under
the provisions of the Companies Act 1981 of Bermuda.
The liquidator can be reached at:
Peter C.B. Mitchell
c/o PricewaterCoopers Advisory Limited
Hamilton, Bermuda
The attorneys for the petitioner can be reached at:
Attride-Stirling & Woloniecki
c/o Crawford House
50 Cedar Avenue
Hamilton, Bermuda
SCFR LIMITED: Court Appoints Peter C.B. Mitchell as Liquidator
--------------------------------------------------------------
The Supreme Court of Bermuda has appointed Peter C.B. Mitchell of
PricewaterCoopers Advisory Limited as the provisional liquidator
of SCFR Limited.
The court ordered the wind up of SCFR Limited on Sept. 2, 2008,
under the provisions of the Companies Act 1981 of Bermuda.
The liquidator can be reached at:
Peter C.B. Mitchell
c/o PricewaterCoopers Advisory Limited
Hamilton, Bermuda
The attorneys for the petitioner can be reached at:
Attride-Stirling & Woloniecki
c/o Crawford House
50 Cedar Avenue
Hamilton, Bermuda
SEA CONTAINERS: To Ink Scheme of Arrangement With Creditors
-----------------------------------------------------------
Sea Containers Ltd. said that it will enter into a scheme of
arrangement with certain creditors, pursuant to Section 99 of the
Companies Act 1981 of Bermuda. The Debtor will set up the scheme
for the purposes of implementing its Chapter 11 plan of
reorganization in Bermuda.
SCL said that it is likely that an application to the Supreme
Court of Bermuda will be made during September 2008 to convene one
or more meetings of creditors. The Debtor further proposes that,
if approved, the scheme will become effective in or around mid to
late November 2008, and have a scheme bar date in or around
December 2008.
The scheme bar date is the deadline by which any claims against
SCL that is not currently filed in the Chapter 11 proceedings,
must be submitted by creditors to be taken into account for
distribution purposes.
Creditors who have not yet filed proofs of claim against SCL may
obtain more information from:
BMC Group Inc.
Attn: Sea Containers Ltd. Claims and
Solicitation Agent
31 Southampton Row, 4th Floor
Holborn, WC1B 5HJ
England
Tel: +44 20 7000 1214
-- or --
BMC Group Inc.
Attn: Sea Containers Ltd. Claims and
Solicitation Agent
444 Nash Street
El Segundo, CA 90245
Tel: (888) 909 0100
http://www.bmcgroup.com/scl
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt
and Taylor, represent the Debtors in their restructuring
efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083.
The Debtors filed their joint Chapter 11 plan of reorganization
and disclosure statement on July 31, 2008.
TRADING-220: Deadline for Proof of Claim Filing Is Sept. 19
-----------------------------------------------------------
Trading-220 (Series A) Ltd.'s creditors have until Sept. 19, 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.
Trading-220's shareholders agreed on Aug. 29, 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
TRADING-220: Holding Final Shareholders Meeting on Oct. 17
----------------------------------------------------------
Trading-220 (Series A) Ltd. will hold its final shareholders
meeting on Oct. 17, 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.
Trading-220's shareholders agreed on Aug. 29, 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
WHITE MOUNTAIN: Jeff Davis to Become Senior VP and Chief Actuary
----------------------------------------------------------------
White Mountains Insurance Group, Ltd. disclosed that Jeff Davis
will become Senior Vice President and Chief Actuary for the
insurance company. He will also be Executive Vice President and
Chief Actuary of White Mountains Re Ltd.
Since 2005, Mr. Davis has been Head of Central Reserving for
Munich Re, with responsibility for US$50 billion of worldwide
reserves. Mr. Davis began his actuarial career at Nationwide and
originally joined Munich Re in 1999 at its subsidiary Munich
American Re.
White Mountains Executive Vice President and Chief Financial
Officer, David Foy said, "We are excited to have Jeff join our
group. He will oversee all actuarial functions in the group. He
brings a strong technical background and a solid track record to
our management team."
President and Chief Executive O of White Mountains Re Ltd., Allan
Waters said, "Jeff has a breadth of global reinsurance experience
and has successfully undertaken many challenges in his career. In
his dual role, he will significantly strengthen our reinsurance
team and still benefit all of our operations."
Headquartered in Hamilton, Bermuda, White Mountains Insurance
Group, Ltd. -- http://www.whitemountains.com-- through its
subsidiaries, operates property and casualty insurance, and
reinsurance businesses. Founded in 1980, the company offers its
products and services in the United States, Europe, Canada, the
Caribbean, Latin America, and Asia. The company traded on the
New York Stock Exchange and the Bermuda Stock Exchange under the
symbol WTM.
* * *
As reported in the Troubled Company Reporter on Feb. 25, 2008,
A.M. Best affirmed its 'bb' rating on 250 million non-cumulative
perpetual preference shares of White Mountains. The rating
agency said that the outlook for all ratings is stable.
XL CAPITAL: Taps J. Rosengarten as Chief Enterprise Risk Officer
----------------------------------------------------------------
XL Capital Ltd. has appointed Jacob D. Rosengarten as Executive
Vice President and Chief Enterprise Risk Officer of the XL group
of companies.
Mr. Rosengarten, a Managing Director of Goldman Sachs, will join
XL on Sept. 15, 2008. He will be responsible for ensuring the
efficient identification, assessment, monitoring, and reporting of
key risks across the XL group. He will report directly to XL
Capital's Chief Executive Officer Michael S. McGavick, will chair
XL's Enterprise Risk Committee which is comprised of the company's
top risk management professionals, and will provide information to
the company's Board of Directors and executive management with
respect to enterprise risk management policies and procedures.
During his 30-year career, Mr. Rosengarten has held several
leadership roles in risk management, including Managing Director
of Risk Management and Analytics for Goldman Sachs Asset
Management for the past 10 years. Prior to this, from 1993 to
1997, he was Director of Risk and Quantitative Analysis at
Commodities Corporation, which was acquired by Goldman Sachs in
1997 and is now its Hedge Fund Strategies Unit. From 1983 to
1992, Mr. Rosengarten held progressively senior positions as
Director of Accounting, Assistant Controller, then Controller at
Commodities Corporation. He began his career as an Auditor at
Arthur Young & Company in 1979.
Commenting on Mr. Rosengarten's appointment, Mr. McGavick said:
"This appointment demonstrates XL's commitment to excellence in
enterprise risk management. This has been a core pillar of XL's
business and while much progress has been made at XL, we know we
can do better, and, working with Jacob, this remains one of my top
key areas of focus. We are excited to add Jacob's wealth of
knowledge and experience in Enterprise Risk Management to our
reorganized leadership in risk underwriting and management."
Headquartered in Bermuda, XL Capital Ltd. --
http://www.xlcapital.com/-- writes liability insurance and
reinsurance worldwide, specializing in low-frequency, high-
severity risks from riots to natural disasters. The company
writes policies through numerous subsidiaries, many of them
offshore, and also manages a Lloyd's of London syndicate. XL's
coverage includes general and executive liability, property, and
political risk insurance. Its reinsurance covers property,
aviation, energy, nuclear accident, and professional indemnity.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 8, 2008, A.M. Best Co. has assigned a debt rating of "bb+"
to XL Capital Ltd's US$500 million series C preference shares
issued in connection with the company's exercise of the put
option under its Mangrove Bay Pass Through Trust contingent
capital facility. The rating is under review with negative
implications. Concurrently A.M. Best has withdrawn the debt
rating of "bb+" on Mangrove Bay's US$500 million 6.102% trust
preferred shares.
===========
B R A Z I L
===========
BANCO DO BRASIL: Assists Gov't in Sovereign Wealth Fund Project
---------------------------------------------------------------
Brazil's Banco do Brasil is helping the government plan the
creation of its sovereign wealth fund and is ready to be involved
in its management, Business News Americas reports citing the
federal bank's Government Affairs VP Ricardo Flores.
"Banco do Brasil is studying this matter in permanent contact with
the federal government and will support whatever the government
decides to do," Mr. Flores told
BNAmericas, adding the bank "will be ready to take part in SWF,
both in the way this fund will be created and managed." He also
mentioned that technical experts from the bank are working with
the finance ministry on SWF details.
According to the report, the bill to create the fund is currently
before congress, but the role other banks, especially federally
controlled ones such as Banco do Brasil, will play is yet to be
clarified. Brazil's SWF will be financed with a combination of
oil revenues from recent offshore discoveries, government budget
surpluses and bonds. The fund would not be able to invest in
securities and would have a limit on its financial resources of
0.5% of GDP.
Meanwhile, the report says Finance Minister Guido Mantega said
federal development bank Banco Nacional de Desenvolvimento
Economico e Social SA, aka BNDES, will administer the proposed
fund's strategic investment in projects of national interest.
Banco do Brasil SA is Brazil's federal bank and is the largest
in Latin America with some 20 million clients and more than
7,000 points of sale (3,200 branches) in Brazil, and 34 offices
and partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
On Feb. 29, 2008, Moody's Investors Rating Service assigned a
Ba2 foreign currency deposit rating to Banco do Brasil.
BANCO NACIONAL: July 2008 Loans Reached BRL79.1 Billion
-------------------------------------------------------
Noticias Financieras reports that Banco Nacional de
Desenvolvimento Economico e Social SA loaned BRL79.1 billion and
approved another BRL108 billion in the year ended July 2008.
According to the report, biggest demand came from the
infrastructure and industrial sectors, which took BRL32.6 billion
(41% of total loans in the period) and BRL30.2 billion (38%),
respectively.
Loans for the infrastructure sector meanwhile grew by 74% between
August 2007 and July 2008, mostly pormpted by an incraese in land
transport and in electricity enterprises, the report adds.
About Banco Nacional
Banco Nacional de Desenvolvimento Economico e Social SA is
Brazil's national development bank. It provides financing for
projects within Brazil and plays a major role in the
privatization programs undertaken by the federal government.
* * *
Banco Nacional continues to carry a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services. The ratings were assigned in August and May
2007.
CIA. SIDERURGICA: Moody's Lifts BRL250MM Debentures Rating to Ba1
-----------------------------------------------------------------
Moody's Investors Service upgraded the senior unsecured long term
debt ratings of Companhia Siderurgica Nacional and its backed
notes from Ba2 to Ba1. Simultaneously, Moody's upgraded the
company's Brazil National Scale Rating on its domestic market
debentures to Aa1.br from Aa3.br. The outlook for all ratings is
positive. The ratings on the company's foreign currency
denominated notes are not constrained by Brazil's foreign currency
country ceiling of Baa3.
The rating action reflects Companhia Siderurgica's maintenance of
strong debt protection metrics and liquidity in recent years in
spite of elevated dividends and share buybacks and substantial
ongoing investments to expand iron ore mining and logistics
operations.
Companhia Siderurgica's Ba1 senior unsecured rating reflects its
position as a leading manufacturer of flat-rolled steel in Brazil,
with a favorable product mix focused on value-added products.
Historically, the company has reported strong EBITDA margin in the
40% range, supported by its solid domestic market position and
globally competitive production costs. The company's operational
efficiency and low costs reflect the large scale of its integrated
steel mill, its own captive iron ore mine and its self-sufficiency
in electricity and 80% self-sufficiency in coke. Also supporting
Companhia Siderurgica's high margins are the company's strategic
location in the most industrialized region of Brazil and its
proximity to high-grade iron ore reserves and port terminals, as
well as its efficient logistics. Moody's believes that the
company is well-positioned within the global industry to face the
ups and downs of the cyclical steel industry from an operational
standpoint.
The company's ratings are primarily constrained by its aggressive
shareholder's return policy, low operational diversity, with the
concentration of its steel production at a single site, and the
event risk from its growth strategy.
While the Ba1 global scale rating reflects the global default and
loss expectation of Companhia Siderurgica or its debts, the Aa1.br
national scale rating reflects the standing of its credit quality
relative to other domestic issuers or debt issuances.
The positive outlook reflects Moody's expectation that Companhia
Siderurgica will continue to report strong operating margins and
boost sales after increasing its iron ore, cement and long steel
production capacity in the near term. The positive outlook also
incorporates the potential sale of a portion or all of Companhia
Siderurgica's shares in its Nacional Minerios SA (Namisa) iron ore
mine subsidiary. Moody's expects that the proceeds from the sale
of shares in Namisa would help Companhia Siderurgica to maintain
adequate leverage and liquidity during the execution of its large
capex program in the coming years.
The company's ratings could be upgraded if the company maintains
its high margins, successfully concludes the sale of Namisa and
retains most of the proceeds to maintain a strong liquidity
position and moderate leverage during the execution of its large
capex program. Sustainable free cash flow to total debt of above
10% would also be necessary for an upgrade.
Conversely, the rating or outlook be downgraded if Companhia
Siderurgica's operating margins weaken significantly, resulting in
CFO less Dividends to Net Debt consistently below 20% or in the
case of a substantive deterioration of its liquidity position,
with an inability to cover short term debt with readily available
liquidity. Also, a significant increase in consolidated secured
debt could negatively affect the ratings or outlook .
Ratings upgraded:
Companhia Siderurgica Nacional:
-- US$200 million Senior Unsecured Notes Due 2008: to Ba1 from
Ba2; and
-- BRL250 million Local Currency Senior Unsecured Debentures
Due 2008: to Aa1.br from Aa3.br Brazil National Scale Rating
and to Ba1 from Ba2 Global Local Currency rating.
CSN Islands VIII Corporation:
-- US$550 million Backed Senior Unsecured Notes Due 2013
Guaranteed by Companhia Siderurgica: to Ba1 from Ba2 Foreign
Currency Rating
CSN Islands IX Corporation:
-- US$400 million Backed Senior Unsecured Notes Due 2015
Guaranteed by Companhia Siderurgica: to Ba1 from Ba2 Foreign
Currency Rating
Outlook: changed to positive from stable for all ratings
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets, tin
mill products and tinplate. The company also runs its own iron
ore, manganese, limestone and dolomite mines and has strategic
investments in railroad companies and power supply projects.
The group also operates in Brazil, Portugal, and the U.S.
GERDAU AMERISTEEL: Gets Spherion as Recruitment Outsourcing Firm
----------------------------------------------------------------
Gerdau Ameristeel Corporation signed a one-year contract agreement
with Spherion Corporation for its recruitment process outsourcing
(RPO) services division, to provide full end-to-end RPO services.
The engagement calls for Spherion to support 400 hires for both
exempt and non-exempt positions across all of Gerdau Ameristeel's
locations in the United States. Spherion RPO will concentrate its
recruiting efforts in the company's corporate group and key lines
of business, including steel mills, rail products and recycling.
The engagement includes management of the Gerdau Ameristeel's
full-cycle recruitment process from receipt of requisition through
offer acceptance and completion of new hire paperwork. The
engagement will also focus on candidate assessment in order to
screen for specific skill sets and ensure the highest quality
talent is identified across positions.
"Spherion's reputation as a leader in RPO, as well as the
company's long- standing track record of identifying quality
candidates, factored heavily in our decision to pursue this
partnership," said Gerdau Ameristeel Organizational Development
Director, Claudia Pires. "Despite the cyclical nature of our
industry, our company continues to exhibit strong growth and
momentum in our hiring efforts. Spherion has the scale,
flexibility and industry knowledge to cost-effectively drive our
talent acquisition process."
The recruitment teams will be based at Spherion's main recruiting
centers in the U.S. As part of the contract, Spherion RPO will
focus on reducing the time-to-fill across all positions and
improving candidate and hiring manager satisfaction.
"As the talent crunch remains a top concern for many companies,
our RPO division is prepared to work with our clients to enhance
their recruitment processes," said Spherion Corporation president
and chief executive officer, Roy Krause. "Gerdau Ameristeel is at
the forefront of its industry, and we look forward to supporting
the company's growth by serving as a strategic hiring partner."
About Spherion
Spherion Corporation (NYSE: SFN) -- http://www.spherion.com--
provides integrated solutions and breakout specialties to meet the
evolving needs of companies and job candidates. With
approximately 700 locations in the United States and Canada,
Spherion delivers innovative workforce solutions that improve
business performance. Spherion employs more than 300,000 people
annually.
About Gerdau Ameristeel
Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation
(NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a
mini-mill steel producer in North America. Through its
vertically integrated network of 17 mini-mills, 17 scrap
recycling facilities and 52 downstream operations, Gerdau
Ameristeel serves customers throughout North America. The
company's products are sold to steel service centers, steel
fabricators, or directly to original equipment manufactures for
use in a variety of industries, including construction, cellular
and electrical transmission, automotive, mining and equipment
manufacturing. Gerdau Ameristeel is a unit of Brazilian firm
* * *
As reported in the Troubled Company Reporter-Latin America on Aug.
28, 2008, Moodys Investors Serive has changed the outlook of these
ratings for Gerdau Ameristeel Corp. to positive from stable:
-- Ba1 Probability of Default Rating;
-- Ba1 Corporate Family Rating; and
-- Ba1 US$405 million Senior Unsecured Guaranteed Notes due
2011 (LGD 4, 62%).
GLOBAL CROSSING: Reaches Deal With Brazilian Network Information
----------------------------------------------------------------
Global Crossing Ltd. has entered into a one-year contract to
provide IPv6-enabled IP Transit and DIA services to the Brazilian
Network Information Center (NIC.br), a non-profit entity
established to implement the decisions and projects created by the
Brazilian Internet Steering Committee, which is responsible for
coordinating and integrating Internet services initiatives in the
country.
NIC.br also operates a traffic exchange point, which allows its
participants, including Internet Service Providers and carriers,
to have direct access to the Internet. Under the terms of the
agreement, NIC.br will use Global Crossing's Multi Protocol Label
Switching IP-based network to meet the increasing Internet
services demands of its participants. In addition to IPv6, Global
Crossing will continue supporting IPv4 technology for NIC.br.
"By adopting IPv6 technology, NIC.br reinforces its commitment to
continue improving the quality of Internet services in Brazil,"
said Milton Kaoruka Kashiwakura, general manager at NIC.br. "We
will now be able to provide our participants with IPv6 Internet
access and to enable them to experience this new Internet protocol
with less latency and higher performance. NIC.br will provide for
free IPv6 transit to the PTTMetro participants during a period of
one year to accelerate IPv6 adoption in Brazil."
IPv6 is a new standard of the Internet's primary communications
protocol, which is expected -- among other things -- to tackle the
growing concern over an impending shortage of IP addresses. IPv6
has several advantages over the current IPv4 protocol. In
addition to offering a much larger address space, IPv6 simplifies
routing, supports mobility applications and better supports
security. Adoption of the protocol is being driven by new users
in rapidly developing economies, as well as the deployment of new
services and devices.
"Global Crossing has been pioneering the adoption of IPv6 since
2001 and has fully deployed IPv6 across its network," said Marcos
Malfatti, Global Crossing's senior vice president of sales in
Brazil. "With more than seven years of experience operating this
technology, we're fully IPv6 ready. We're pleased to add the
Brazilian Network Information Center to the growing list of
customers we serve with this capability."
Global Crossing was the first global communications provider with
IPv6 natively deployed in both its private and public backbone
networks. Additionally, the company has maintained a leadership
role influencing the evolution of the IPv6 standard through its
involvement in industry organizations such as the American Council
for Technology's Industry Advisory Council (ACT/IAC).
ABOUT NIC.br
NIC.br -- http://www.nic.br/-- is a non-profit entity established
to implement decisions and projects from Brazilian Internet
Steering Committee , which coordinates and integrates the Internet
service initiatives in the country. NIC.br is responsible for the
domain names registering through Registro.br
(http://www.registro.br);for the Center of Studies, Response and
Treatment of Security Incidents in Brazil through CERT.br
(http://www.cert.br);for the Center of Studies and Research in
Networks Technology and Operations via CEPTRO.br
(http://www.ceptro.br);and for the Center of Studies about
Information Technology and Communication or CETIC.br
(http://www.cetic.br),which aims to produce and reveal
information and statistics about the availability and use of the
Internet in Brazil.
About Global Crossing Latin America
Global Crossing's Latin American business has operations in
Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru, Mexico,
Venezuela and the United States (Florida). In addition to its IP-
based fiber-optic network, Global Crossing's regional
infrastructure includes 15 metropolitan networks and 15 world-
class data centers located in the main business centers of Latin
America.
Global Crossing's reach and experience in Latin America allow it
to address the particularities of the region and deliver the
solutions each company needs. The company provides services to a
variety of customers, including medium and large companies and
corporations, institutions and government entities, and
telecommunications operators.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing Ltd.
(NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network. Global Crossing serves many of the
world's largest corporations, providing a full range of managed
data and voice products and services. The company filed for
chapter 11 protection on Jan. 28, 2002 (Bankr. S.D.N.Y. Case No.
02-40188). When the Debtors filed for protection from their
creditors, they listed US$25,511,000,000 in total assets and
US$15,467,000,000 in total debts. Global Crossing emerged from
chapter 11 on Dec. 9, 2003.
Global Crossing's Latin American business has operations in
Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru,
Mexico, Venezuela and the United States (Florida). It also has
operations in the United Kingdom.
* * *
At Sept. 30, 2007, Global Crossing Ltd.'s balance sheet showed
total assets of US$2.6 billion, total debts of US$2.7 billion
and a US$74 million stockholders' deficit.
As reported in the Troubled Company Reporter-Latin America on
Nov. 8, 2007, Global Crossing Ltd. said in a statement that its
net loss increased 75% to US$89 million in the third quarter
2007, compared to US$51 million in the third quarter 2006.
PROPEX INC: Creditors Panel Challenges DIP Lenders' Liens
---------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in the
bankruptcy cases of Propex Inc. and its debtor-affiliates notified
the U.S. Bankruptcy Court for the Eastern District of Tennessee
that it will take an appeal to the U.S. District Court for the
Eastern District of Tennessee from the Hon. John C. Cook's
Aug. 21, 2008 order confirming the granting to the DIP Lenders of
liens on all of the Debtors' Foreign Subsidiaries.
As disclosed in the Troubled Company Reporter on Aug. 27, 2008,
the Debtors filed a Security Agreement Amendment/Foreign Stock
Pledge Motion, whereby they asked the Court to (i) permit them to
amend a Security Agreement related to their DIP Credit Agreement,
and (ii) confirm that the liens granted to the DIP Lenders on 100%
of the Debtors' foreign capital stock is in accordance with the
terms of the Final DIP Order and the DIP Credit Agreement.
In line with that request, the Debtors, the Official Committee of
Unsecured Creditors, and BNP Paribas, on behalf of the DIP
Lenders, entered into a Court-approved stipulation for the filing
under seal of any pleadings or documents relating to the Security
Agreement Motion that may be deemed to contain confidential
information.
BNP Paribas Securities Corp., as administrative agent for the DIP
Lenders, expressed its support of the Debtors' request. BNP
Paribas asserted that the DIP documents plainly and
unequivocally
include the 100% Foreign Stock Pledge as part of the collateral
package granted to the DIP lenders and as part of their adequate
protection package to the prepetition lenders.
Counsel to BNP Paribas, Gene L. Humphreys, Esq., at Bass, Berry &
Sims, PLC, in Nashville, Tennessee, maintained that even if there
is any ambiguity on the amount of equity of the Debtors' foreign
subsidiaries that pledged as collateral under the DIP facility,
the ambiguity is completely mooted by the uncontested fact that
both the Interim and the Final DIP Orders provide a superpriority
administrative claim to the DIP obligations pursuant to Section
364(c)(1) of the Bankruptcy Code.
"The DIP lenders have loaned the Debtors tens of millions of
dollars in reliance upon the fundamental premise of the full
collateral package, including the 100% Foreign Stock Pledge," Mr.
Humphreys said.
On the other hand, the Creditors Committee filed an objection
to the Debtors' Security Agreement Amendment under seal.
BNP Paribas countered that the Committee's attempt to renegotiate
the DIP Facility has no basis in law or fact and cannot be
sustained.
About Propex Inc.
Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber. It also produces
primary and secondary carpet backing. Propex operates in North
America, Europe, and Brazil.
The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-
10249). The Debtors have selected Edward L. Ripley, Esq., Henry
J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them. The Official Committee of
Unsecured Creditors have tapped Ira S. Dizengoff, Esq., at Akin
Gump Strauss Hauer & Feld, LLP, in New York, to be its counsel.
The Court extended the exclusive plan filing period of the Debtors
through Oct. 20, 2008, and their exclusive solicitation period
through Dec. 19, 2008.
As of June 29, 2008, the Debtors' balance sheet showed total
assets of US$562,700,000, and total debts of US$551,700,000.
(Propex Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
PROPEX INC: Wants Court Nod on US$1.7 Million Pension Plan Payment
------------------------------------------------------------------
Propex Inc. and its debtor-affiliates are sponsors of two defined
benefit pension plans -- the Propex Inc. Cash Value Retirement
Plan and the Propex Inc. Balance Retirement Plan. The Pension
Plans are funded solely through employer contributions.
The benefits accruals under the Cash Value Plan was frozen
effective September 1, 2005. Benefit accruals under the Balance
Plan was frozen as of August 1, 2006.
As a result of the decline in the equity markets, the Pension
Plans are significantly underfunded and ongoing obligations to
the Pension Plans will place a significant financial burden on
the Debtors over the next several year, Henry J. Kaim, Esq., at
King & Spalding LLP, in Houston, Texas, informs the U.S.
Bankruptcy Court for the Eastern District of Tennessee.
Mr. Kaim says the Debtors have considered all alternatives to
alleviate the problem, including the termination of the Pension
Plans. The termination of the Pension Plan though would create a
large claim against the Debtors' estate in favor of the Pension
Benefit Guaranty Corporation and possibly result in the
imposition of large liabilities on the Debtors' overseas
affiliates, he points out.
According to Mr. Kaim, the Pension Plan actuary estimates that
there will be a liquidity shortfall in the Cash Value Plan of
approximately US$3,100,000 as of Sept. 30, 2008. This liquidity
shortfall payment will have to be paid as part of the Oct. 15,
2008 quarterly minimum funding contribution, he notes.
The liquidity shortfall, however, can be avoided altogether by
making additional plan contribution before Sept. 15, 2008 since
the contributions are counted as plan assets for purposes of
Jan. 1, 2008 plan valuation, Mr. Kaim states.
Thus, pursuant to Section 363 of the Bankruptcy Code, the Debtors
seek the Court's authority to make additional payment of up to
US$1,700,000 on or before Sept. 15, 2008, in addition to the
regularly scheduled and previously authorized minimum payments of
US$279,937 and US$660,840 on Oct. 15, 2008.
Mr. Kaim contends that the additional payments will increase the
Cash Value Plan's funded status sufficiently to avoid having a
liquidity shortfall on Jan. 1, 2008 plan.
About Propex Inc.
Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber. It also produces
primary and secondary carpet backing. Propex operates in North
America, Europe, and Brazil.
The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-
10249). The Debtors have selected Edward L. Ripley, Esq., Henry
J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them. The Official Committee of
Unsecured Creditors have tapped Ira S. Dizengoff, Esq., at Akin
Gump Strauss Hauer & Feld, LLP, in New York, to be its counsel.
The Court extended the exclusive plan filing period of the Debtors
through Oct. 20, 2008, and their exclusive solicitation period
through Dec. 19, 2008.
As of June 29, 2008, the Debtors' balance sheet showed total
assets of US$562,700,000, and total debts of US$551,700,000.
(Propex Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
PROPEX INC: Wants to Amend Medical Program to Cease Coverage Offer
------------------------------------------------------------------
Propex Inc. and its debtor-affiliates sponsor the Propex Medical
Program pursuant to which they provide certain medical benefits to
their employees, including health insurance.
The Medical Program currently provides medical coverage for sale
to certain eligible employees and their dependents upon the
employee's retirement. The Debtors aver that the cost to the
retiree ranges from US$470 to US$1,220 per month and is generally
cost-prohibitive to the retirees.
As of Aug. 12, 2008, only six retirees have purchased medical
coverage, the Debtors relate. The Debtors clarify they do not
seek to modify any benefits provided to these Current
Participants.
The Debtors, however, seek to eliminate the medical coverage for
Eligible Employees and Retirees because they are required to
carry on their books the actuarial cost of US$4,400,000.
About 398 potentially eligible retirees have not elected to
purchase medical coverage, the Debtors note. Despite the fact
that the Eligible Retirees are not taking advantage of this
benefit, the Debtors relate that they are required to reserve
significant assets to account for the possibility that the
retirees will elect to purchase medical coverage.
In addition to the cost carried on their books, the Debtors
forecast spending in the future an estimated US$4,765 per employee
per year for each Eligible Employee and Retiree who elects to
purchase medical coverage. "The cost of the medical coverage is
disproportionate to the benefit it provides and should be
terminated, except as to the current six participants," the
Debtors contend.
Pursuant to Sections 105 and 363 of the Bankruptcy Code, the
Debtors seek authority from the U.S. Bankruptcy Court for the
Eastern District of Tennessee to amend their Medical Program
to eliminate the option to purchase Medical Coverage by employees
and retirees other than the Current Participants.
The Debtors say the proposed amendment will allow them to remove
US$4,400,000 in liabilities from their balance sheet.
The Debtors inform the Court that no employee who declined to
purchase Medical Coverage, upon retiring, has ever subsequently
elected to purchase Medical Coverage. The Debtors say they are
unaware of any retired employee that will be adversely impacted
if their request is granted.
The Debtors add that on Aug. 12, 2008, the Board of Directors
entered a resolution to amend the Medical Program to cease to
offer Medical Coverage to employees other than the Current
Participants who receive benefits under the Medical Program.
About Propex Inc.
Headquartered in Chattanooga, Tennessee, Propex Inc. --
http://www.propexinc.com/-- produces geosynthetic, concrete,
furnishing, and industrial fabrics and fiber. It also produces
primary and secondary carpet backing. Propex operates in North
America, Europe, and Brazil.
The company and its debtor-affiliates filed for Chapter 11
protection on Jan. 18, 2008 (Bankr. E.D. Tenn. Case No. 08-
10249). The Debtors have selected Edward L. Ripley, Esq., Henry
J. Kaim, Esq., and Mark W. Wege, Esq. at King & Spalding, in
Houston, Texas, to represent them. The Official Committee of
Unsecured Creditors have tapped Ira S. Dizengoff, Esq., at Akin
Gump Strauss Hauer & Feld, LLP, in New York, to be its counsel.
The Court extended the exclusive plan filing period of the Debtors
through Oct. 20, 2008, and their exclusive solicitation period
through Dec. 19, 2008.
As of June 29, 2008, the Debtors' balance sheet showed total
assets of US$562,700,000, and total debts of US$551,700,000.
(Propex Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)
==========================
C A Y M A N I S L A N D S
==========================
ALTERNATIVE INVESTMENTS: Claims Filing Deadline Is Sept. 16
-----------------------------------------------------------
Alternative Investments Fund Ltd.'s creditors have until Sept. 16,
2008, to prove their claims to Global Pacifica Ltd., 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.
Alternative Investments' shareholder decided on Aug. 13, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Global Pacifica Ltd.
c/o Ogier
P.O. Box 1234
Grand Cayman, Cayman Islands
Contact for inquiries:
Jonathan McLean
Tel: (345) 949-9876
Fax: (345) 949-1986
ALUMINCO LIMITED: Proof of Claim Filing Deadline Is Sept. 16
------------------------------------------------------------
Aluminco Ltd.'s creditors have until Sept. 16, 2008, to prove
their claims to Xu JiQing, 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.
Aluminco's shareholder decided on Aug. 5, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Xu JiQing
No. 602, 6/F, Door 7
Luo Zhuang Nan Li, Haidian District
Beijing, P.R. China
Tel: (010) 6849-5212
Fax: (010) 6849-4279
CIL EAGLE: Deadline for Proof of Claim Filing Is Sept. 16
---------------------------------------------------------
CIL Eagle Lake Ltd.'s creditors have until Sept. 16, 2008, to
prove their claims to Condor Nominees Limited, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
CIL Eagle's shareholder decided on June 31, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Condor Nominees Limited
c/o Barclays Private Bank & Trust (Cayman)Ltd.
4th Floor, FirstCaribbean House
P.O. Box 487
George Town, Grand Cayman
Cayman Islands
NETANYA MARINE: Proof of Claim Filing Deadline Is Sept. 16
----------------------------------------------------------
Netanya Marine Holdings Ltd.'s creditors have until Sept. 16,
2008, to prove their claims to Brad Bleefeld, 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.
Netanya Marine's shareholder decided on Aug. 6, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidator can be reached at:
Brad Bleefeld
c/o Beach Capital Management LLC
Suite 1000, 777 S. Flagler Dr.
East Tower, West Palm Beach
Florida, USA
Tel: (561) 514-3910
Fax: (561) 820-9096
PARMALAT SPA: Board Okays EUR128.4 Mln Partial Dividend for 2008
----------------------------------------------------------------
Parmalat S.p.A.'s Board of Directors has approved the distribution
of a partial statutory dividend for the 2008 reporting year in the
amount of EUR0.077 per share, before any applicable tax
withholdings, for a total payout of about EUR128.4 million.
This partial statutory dividend is a part of the entire 2008
financial year dividend. The partial statutory dividend
will be payable as of Sept. 25, 2008, with Coupon No. 3, Stock
Exchange presentation date of Sept. 22, 2008.
The partial statutory dividend was approved based on the Company's
financial statements at June 30, 2008 and the corresponding Report
by the Board of Directors.
The Independent Auditors have issued an opinion on both documents.
As required by Article 2433 bis of the Italian Civil Code, the
Company's financial statements, the corresponding Report by the
Board of Directors and the opinion provided by the Independent
Auditors are available to the public at the Company's registered
office, 4 Via delle Nazioni Unite, Collecchio (Parma), and at the
offices of Borsa Italiana S.p.A.
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: Exercised Warrants Hike Share Capital by EUR27,000
----------------------------------------------------------------
Parmalat S.p.A. communicates that, following the allocation of
shares to creditors of the Parmalat Group, the subscribed and
fully paid up share capital has now been increased by
EUR26,985 to EUR1,667,667,936 from EUR1,667,640,951. The share
capital increase is due to exercise of 26,985 warrant.
The latest status of the share allotment is that 28,404,379 shares
representing approximately 1.7% of the share capital are still in
a deposit account c/o Parmalat S.p.A., of which:
* 13,114,722 or 0.8% of the share capital, registered in the
name of individually identified commercial creditors, are
still deposited in the intermediary account of Parmalat
S.p.A. centrally managed by Monte Titoli (compared with
13,203,874 shares as at July 11, 2008);
* 15,289,657 or 0.9% of the share capital registered in the
name of the Foundation, called Fondazione Creditori
Parmalat, of which:
-- 120,000 shares representing the initial share capital of
Parmalat S.p.A. (unchanged);
-- 15,169,657 or 0,9% of the share capital that pertain to
currently undisclosed creditors (compared with 15,422,865
shares as at July 11, 2008).
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: Posts EUR426.9 Mln Group Net Profit for H1 2008
-------------------------------------------------------------
The Parmalat Group posted EUR426.9 million in net profit on
EUR1.90 billion in net revenues for the first half ended June 30,
2008, compared with EUR244.3 million in net profit on EUR1.81
billion in net revenues for the same period ended June 30, 2007.
The Group's net financial assets amounted to EUR901 million. The
increase of EUR45.2 million, compared with net financial assets of
EUR855.8 million at Dec. 31, 2007, reflects primarily:
-- the cash flow from operating activities, net of changes in
operating working capital and capital expenditures
(EUR14.9 million );
-- the inflow from non-recurring activities (EUR36.7
million), which refers mainly to the sale of Newlat S.p.A.
(EUR35.1 million);
-- the inflow from litigations (EUR409.1 million, as the net
result of EUR437.9 million in proceeds from settlements
reached during the first half of 2007 and EUR28.8 million
in costs incurred to pursue the corresponding legal
actions;
-- the outflow for income taxes (EUR172.6 million , including
EUR83 million for operating items and EUR89.6 million
owed on proceeds from litigation;
-- the payment of dividends (EUR262.1 million, including
EUR260.6 million attributable to the Group’s Parent
Company)
The Group interest in shareholders' equity totaled EUR2.78
billion, or EUR119.7 million more than the EUR2.66 billion
reported at Dec. 31, 2007. The net profit for the period
(EUR425.0 million) and a capital increase of EUR6.4 million,
offset in part by charges of EUR265.1 million for the distribution
of dividends and EUR46.7 million for the translation into euros of
the financial statements of companies that operate outside the
euro zone.
Business Outlook
The deepening of the economic and financial crisis has affected
the economic trend of Parmalat Australia and Parmalat South Africa
more than originally anticipated this past May. To this situation
a major decline of the Italian market must be added. Damages
suffered by the above mentioned markets have been only partially
compensated by the positive trend of other subsidiaries and by the
operational actions already implemented and in course of
implementation.
Given the environment outlined above and in absence of
extraordinary events, the new "guidance" for the Group presents an
increase in revenues of 3% compared with 2007, while EBITDA of the
Group, for this period, is expected to be approximately EUR350
million, or about 5% less than in 2007.
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.
PHOENIX QUAKE: Filing for Proof of Claim Deadline Is Sept. 16
-------------------------------------------------------------
Phoenix Quake Ltd.'s creditors have until Sept. 16, 2008, to prove
their claims to Sylvia Lewis and Beverly Bernard, the company's
liquidators, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Phoenix Quake's shareholder decided on Aug. 5, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Sylvia Lewis and Beverly Bernard
P.O. Box 1109
Grand Cayman, Cayman Islands
Tel: 914-7514
Fax: 949-7634
PHOENIX QUAKE WIND: Proof of Claim Filing Deadline Is Sept. 16
--------------------------------------------------------------
Phoenix Quake Wind Ltd.'s creditors have until Sept. 16, 2008, to
prove their claims to Sylvia Lewis and Beverly Bernard, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Phoenix Quake Wind's shareholder decided on Aug. 5, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Sylvia Lewis and Beverly Bernard
P.O. Box 1109
Grand Cayman, Cayman Islands
Tel: 914-7514
Fax: 949-7634
PHOENIX QUAKE WIND II: Proof of Claim Filing Is Until Sept. 16
--------------------------------------------------------------
Phoenix Quake Wind II Ltd.'s creditors have until Sept. 16, 2008,
to prove their claims to Sylvia Lewis and Beverly Bernard, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Phoenix Quake Wind's shareholder decided on Aug. 5, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Sylvia Lewis and Beverly Bernard
P.O. Box 1109
Grand Cayman, Cayman Islands
Tel: 914-7514
Fax: 949-7634
===================================
D O M I N I C A N R E P U B L I C
===================================
BANCO DEL PROGRESO: Ex-Prexy's Appeal on DOP14BB Fraud Case Junked
------------------------------------------------------------------
The Supreme Court declined an appeal filed by Banco del Progreso's
former president, Pedro Castillo, against the National District's
7th Instruction Court May 6 verdict, Dominican Today reports. The
verdict found Mr. Castillo guilty of embezzling more than DOP14
billion.
According to the report, the high Court's decision allows the
Dominican Republic bank to continue the proceeding against Mr.
Castillo, who also faces charges in a related case in Florida
In the next hearing set for October 1, the report says the
prosecution will continue to read charges of evidence tampering,
breach of trust, embezzlement and money laundering.
As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2004, Fitch Ratings downgraded Banco del Progreso's Long-
term foreign currency rating to 'CCC+' from 'B-' (Rating Watch
Negative) and Short-term foreign currency rating to 'C' from 'B'.
The downgrade reflects the recent sovereign downgrade on the
Dominican Republic's long-term foreign and local currency
obligations to 'CCC+' from 'B'. Fitch affirmed the bank's
individual rating at 'D/E'.
=============
J A M A I C A
=============
AIR JAMAICA: AA Revenue Guarantee Deal Faces More Hurdles
---------------------------------------------------------
Jamaica's revenue guarantee deal with American Airlines is facing
further pressure. Jamaica Gleaner reports that American Airlines
had allegedly reduced the cost of its tickets to other Caribbean
destinations and Mexico, while retaining the prices to fly to
Jamaica.
In addition, The Gleaner says Opposition Spokesman on Tourism Dr
Wykeham McNeill is asking the Government to provide the country
with more details about the agreement and state whether the
decision to spend more than J$324 million was approved by the
Cabinet and why the details were not announced in Parliament.
The opposition spokesman argued that this was a first for Jamaica
and could lead to other airlines, such as Virgin Atlantic and
British Airways, demanding similar guarantees, the same report
says.
The agreement allows Jamaica to pay American up to US$4.5 million
to maintain flights from three US cities to Jamaica. The amount
will be paid to the U.S. carrier over the next 12 months. Jamaica
expects to earn US$96 million from the deal, with US$1.2 million
going to the Tourism Enhancement Fund, which is financing the
deal. The proposed deal further states that American will not fly
its planes into Jamaica if less than 65 per cent of the seats are
taken up. However, if the aircraft is more than 65 per cent full
but less than 75 per cent, Jamaica will be required to pay the 10
per cent revenue that the airline would lose.
Earlier, outgoing vice-president of marketing at Air Jamaica, Paul
Pennicook, told The Gleaner he does not agree with the revenue
guideline providing revenue guarantee to American Airlines on
routes that are currently served by Air Jamaica, specifically
Chicago.
The Gleaner said Mr. Pennicook was dismissive of claims that the
current administration was following a long-established practice
whereby Jamaica Vacations Limited (JamVac) provided guarantees to
airlines. "JamVac was established to develop new gateways for
Jamaica. It was never established to go and subsidize seats in
existing gateways ..." he said.
According to The Gleaner, JamVac negotiated the arrangement with
American Airlines and is the agency responsible for exploring
opportunities to increase flight capacity to Jamaica and to form
strategic alliances with travel-industry partners through varied
options.
The deal, Radio Jamaica relates, is also facing negative reactions
from trade unions, the local airline industry, the Opposition
People's National Party (PNP), and Air Jamaica officials.
The National Workers Union (NWU) in particular said it is unfair
that Jamaica is helping to finance an air carrier owned by a
developed country while its own airline is floundering.
Mr. Bartlett said he is willing to meet with Air Jamaica to
discuss concerns the national airline has raised about the deal.
Meanwhile, The Jamaica Observer reports that Gordon 'Butch'
Stewart, the Caribbean and Jamaica's leading hotelier, believes
the deal with American Airlines is good for the tourism-dependent
island at this time.
Mr. Stewart said that given the turbulence being experienced by
the aviation industry ravaged by high oil prices, the AA deal
would protect Jamaica's tourism industry from undue exposure at a
time when the country should be taking advantage of the benefits
to come from the glorious performance of its Olympians in Beijing,
China.
Radio Jamaica says local hoteliers are also siding with the
government on the deal saying there is nothing wrong with it.
According to Radio Jamaica, Jamaica Hotel and Tourist Association
(JHTA) President Wayne Cummings said the deal will help Jamaica to
maintain its position as a preferred destination especially in
light of the increased challenges facing the tourism market. "The
revenue guarantee that has been put in place for American Airlines
as a legacy carrier is very important to our destination and given
what is happening around the world and in the Caribbean in
particular, we have to make sure that our seats are protected
coming into the country," he said.
Radio Jamaica relates Mr. Cummings is also contending that the
deal is a separate issue from Air Jamaica, stating that "Air
Jamaica has its own challenges and those should be dealt with
separately but for what we've been able to negotiate.”
OCG to Conduct Probe
In yet another blow to the deal, Radio Jamaica says the Office of
the Contractor General (OCG) is to probe the controversial air-
lift guarantee deal.
In a release cited by Radio Jamaica, the OCG said it has written
to the Permanent Secretary in the Ministry of Tourism requesting
the full particulars of the deal. The Permanent Secretary in the
Ministry of Tourism has until September 19, 2008 to provide the
documents.
Tourism Minister Defends Deal
As reported yesterday in the Troubled Company Reporter-Latin
America, Tourism Minister Edmund Bartlett defended the Jamaican
government's decision saying the US$4.5 million guarantee will
encourage flights to the island.
Mr. Bartlett said the decision won't hurt Air Jamaica and will
ensure that there are seats for approximately 156,000 more
visitors to come to the island. He added that the decision to
sign an agreement with AA was based on its ability to move persons
from across North America to the gateways. "American will be able
to get persons from communities from around the airports and Air
Jamaica does not have the planes going into the communities around
the gateways," Mr. Bartlett argued.
Mr. Bartlett also explained that despite putting up the US$4.5
million, the deal might not cost Jamaica one cent as it was based
on the number of passengers that American will take to the island.
"No payment will be made to American until the end of the one-year
period (November 30, 2009). This depends on the load factor and
the money will remain in escrow earning interest," he said.
About Air Jamaica
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.
===========
M E X I C O
===========
AMC ENTERTAINMENT: Earns US$10.8 Mil. in 1st Quarter Ended July 3
-----------------------------------------------------------------
AMC Entertainment Inc. reported net earnings of US$10.8 million
for the thirteen weeks ended July 3, 2008, versus net earnings of
US$22.1 million in the comparable period ended June 28, 2007.
Total revenues increased 4.1%, or US$25.5 million, to US$648.0
million during the thirteen weeks ended July 3, 2008, compared to
the thirteen weeks ended June 28, 2007. The increase in revenues
was mainly a result of the increase in Admissions revenue in the
U.S. and Canada. Total costs and expenses increased 4.6%, or
US$26.9 million, during the thirteen weeks ended July 3, 2008,
compared to the thirteen weeks ended June 28, 2007.
U.S. and Canada theatrical exhibition costs and expenses increased
8.4%, or US$39.2 million, during the thirteen weeks ended July 3,
2008, compared to the thirteen weeks ended June 28, 2007.
U.S. and Canada film exhibition costs increased 7.9%, or
US$16.6 million, during the thirteen weeks ended July 3, 2008,
compared to the thirteen weeks ended June 28, 2007, due to the
increase in admissions revenues and an increase in film exhibition
costs as a percentage of admission revenues. U.S. and Canada
theatrical exhibition costs and expenses during the thirteen weeks
ended June 28, 2007, included US$14.8 million of theatre and other
closure income, which were absent in 2008. This was due primarily
to lease terminations negotiated on favorable terms for two of the
company's theatres that were closed during the thirteen weeks
ended June 28, 2007.
Merger, acquisition and transaction costs decreased to US$17,000
during the thirteen weeks ended July 3, 2008, compared to
US$2.0 million during the thirteen weeks ended June 28, 2007.
Prior period costs are primarily comprised of preacquisition
expenses for casualty insurance losses related to the merger with
Loews.
Management fees of US$1.25 million were unchanged during the
thirteen weeks ended July 3, 2008.
Other general and administrative expense decreased 32.8%, or
US$4.3 million, during the thirteen weeks ended July 3, 2008,
compared to the thirteen weeks ended June 28, 2007. The decrease
in other general and administrative expenses is primarily due to a
decrease in postretirement expense of US$6.2 million related to an
amendment to the company's Postretirement Plan which resulted in a
curtailment gain of US$6.0 million during the thirteen weeks ended
July 3, 2008.
Depreciation and amortization decreased 8.9%, or US$5.7 million,
compared to the prior period due primarily to the closing of
theatres.
Other income decreased US$725,000 to US$2.7 million, and includes
US$2.2 million and roughly US$1.8 million of income related to the
derecognition of stored value card liabilities during the thirteen
weeks ended July 3, 2008, and June 28, 2007, respectively. Other
income also includes insurance recoveries related to Hurricane
Katrina of US$1.2 million for property losses in excess of
property carrying cost and US$397,000 for business interruption
during the thirteen weeks ended June 28, 2007. Other income also
includes US$469,000 of income related to ineffectiveness of
interest rate swaps during the thirteen weeks ended July 3, 2008.
Interest expense decreased 11.7%, or US$4.4 million, to
approximately US$33.3 million primarily due to decreased interest
rates on the Senior Secured Credit Facility.
Equity in earnings of non-consolidated entities were US$4.4
million compared to roughly US$2.3 million in the prior period.
Equity in earnings related to the company's investment in National
CineMedia, LLC were roughly US$4.7 million and US$1.8 million for
the thirteen weeks ended July 3, 2008, and June 28, 2007,
respectively.
Investment income was US$705,000 for the thirteen weeks ended
July 3, 2008, compared to approximately US$19.3 million for the
thirteen weeks ended June 28, 2007. The thirteen weeks ended
June 28, 2007, includes a gain on the sale of the company's
investment in Fandango of US$15.7 million.
The provision for income taxes from continuing operations was
US$4.2 million for the thirteen weeks ended July 3, 2008, and
US$7.0 million for the thirteen weeks ended June 28, 2007, with
the reduction due primarily to the decrease in earnings before
income taxes, foreign rate differential and a release of
previously reserved foreign tax due to updated interpretation by
authorities.
Liquidity and Capital Resources
The company's consolidated revenues are primarily collected in
cash, principally through box office admissions and theatre
concessions sales. Exhibition costs are ordinarily paid to
distributors from 20 to 45 days following receipt of box office
admissions revenues. This operating "float" allows the company to
operate with a limited amount of working capital.
Cash flows provided by operating activities were US$116.7 million
and roughly US$72.8 million during the thirteen weeks ended
July 3, 2008, and June 28, 2007, respectively.
The company had total corporate borrowings of US$1.60 billion at
July 3, 2008. As of July 3, 2008, the company was in compliance
with all financial covenants relating to the Senior Secured Credit
Facility, the Cinemex Credit Facility, the Notes due 2016, the
Notes due 2014, and the Fixed Notes due 2012.
The company's Senior Secured Credit Facility is with a syndicate
of banks and other financial institutions and provides financing
of up to US$850.0 million, consisting of a US$650.0 million term
loan facility with a maturity of seven years and a US$200.0
million revolving credit facility with a maturity of six years.
As of July 3, 2008, the company had no borrowings under the
revolving credit facility and roughly US$633.7 million was
outstanding under the term loan facility at an interest rate of
4.23%.
The company believes that cash generated from operations and
existing cash and equivalents will be sufficient to fund
operations and planned capital expenditures and potential
acquisitions for at least the next twelve months.
Balance Sheet
At July 3, 2008, the company's consolidated balance sheet showed
US$3.90 billion in total assets, US$2.75 billion in total
liabilities, and US$1.15 billion in total stockholders' equity.
The company's consolidated balance sheet at July 3, 2008, also
showed strained liquidity with US$319.8 million in total current
assets available to pay US$502.6 million in total current
liabilities.
Full-text copies of the company's consolidated financial
statements for the quarter ended July 3, 2008, are available for
free at http://researcharchives.com/t/s?31be
About AMC Entertainment
Based in Kansas City, Missouri, AMC Entertainment Inc.
-- http://www.amctheatres.com/-- is one of the world's largest
theatrical exhibition companies. As of July 3, 2008, the company
owned, operated or had interests in 353 theatres and 5,117
screens, with 89% or 4,569 of its screens in the U.S. and Canada
and 11%, or 548 of its screens in Mexico, China (Hong Kong),
France and the United Kingdom.
The company's principal direct and indirect owned subsidiaries are
American Multi-Cinema Inc., Grupo Cinemex, S.A. de C.V. and AMC
Entertainment International Inc.
* * *
To date, AMC Entertainment Inc. still carries Fitch Ratings'
'CCC+' senior subordinate rating assigned on Jan. 12, 2006.
CREDITO INMOBILIARIO: Moody's Puts B1 Rating on MXN6 Bil. Program
-----------------------------------------------------------------
Moody's de Mexico has assigned a senior unsecured long-term Global
Local Currency rating of B1 and a National Scale debt rating of
Baa1.mx and MX-2 national scale and Not Prime global local
currency short-term ratings to the MXN6 billion dual program of
Credito Inmobiliario, S.A. de C.V. The company's Baa1.mx national
scale issuer rating, and B1 global scale local currency issuer
rating were also affirmed. The ratings outlook is stable.
These ratings reflect Credito Inmobiliario's position as the
fourth largest non-bank financial institution (Sofom) in Mexico in
terms of total loan portfolio size. The ratings also incorporate
the company's experienced management team, good operating margins,
loan processing and servicing efficiencies, and technology
systems, as well as its good corporate infrastructure, which
includes separation of duties across business functions. Moody's
notes that Credito Inmobiliario has a good liquidity position with
sufficient alternative liquidity sources to cover short-term debt
through 2011 with roughly 1.2 coverage.
The stable rating outlooks for both the national scale and global
local currency ratings reflect Moody's expectation that Credito
Inmobiliario's management will continue to grow the company
prudently, and diversify successfully, while moving towards a
portfolio more weighted toward mortgage lending vs. construction
lending.
Rating improvements will reflect a portfolio mix showing
individual loans as a percentage of total loans increasing to at
least 70% of the lending book, on- and off-balance sheet, while
maintaining operating margins in the mid-70% range. Additional
steps supporting a positive ratings change include continued
progress with regional expansion and increased size. Downward
ratings pressure will result from construction loans as a
percentage of total loans growing to 70% of the aggregate loan
book, operating margins (as measured by EBITDA/Revenues) falling
below 70%, an increase in delinquent loans to more than 5.5% of
the total on- and off-balance sheet portfolio on a sustained
basis, or an adverse shift in governmental housing policy.
Moody's assigned these ratings with stable outlook:
-- senior unsecured long-term Global Local Currency rating of B1
and a National Scale debt rating of Baa1.mx and MX-2 national
scale and Not Prime global local currency short-term ratings
to the MXN6 billion dual program
Moody's affirmed these ratings with stable outlook:
-- National scale issuer rating at Baa1.mx; global scale local
currency issuer rating at B1.
Credito Inmobiliario, S.A. de C.V. is a non-bank financial
institution (Sofom Mortgage Company). It is the fourth largest
independent mortgage originator of this kind in Mexico and its
main activities consist of extending mortgage loans financed by
monies from FOVI/SHF to low-income individuals and providing
construction financing to low-income housing developers. The firm
reported total assets of MXN17.2 billion and total equity of
MXN1.7 billion at June 30, 2008.
FEDERAL-MOGUL: Court Defers Claims Objection Deadline to Dec. 27
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware extended
until Dec. 27, 2008, the deadline by which Federal-Mogul Corp. and
its debtor-affiliates may filed objections to administrative
expense claims.
James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Wilmington, Delaware, on behalf of the Reorganized Debtors filed
a certificate of no objection to the extension request.
Federal-Mogul Corporation -- http://www.federal-mogul.com/--
(OTCBB: FDMLQ) is a global supplier, serving the world's foremost
original equipment manufacturers of automotive, light commercial,
heavy-duty, agricultural, marine, rail, off-road and industrial
vehicles, as well as the worldwide aftermarket. Founded in
Detroit in 1899, the company is headquartered in Southfield,
Michigan, and employs 45,000 people in 35 countries. Aside from
the U.S., Federal-Mogul also has operations in other locations
which includes, among others, Mexico, Malaysia, Australia, China,
India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl &
Jones, P.C., represent the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed US$10.15 billion in assets and US$8.86 billion in
liabilities.
Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at
Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein
Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer,
Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the
Official Committee of Unsecured Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on June 6,
2004, the Bankruptcy Court approved the Third Amended Disclosure
Statement for their Third Amended Plan. On July 28, 2004, the
District Court approved the Disclosure Statement. The estimation
hearing began on June 14, 2005. The Debtors submitted a Fourth
Amended Plan and Disclosure Statement on Nov. 21, 2006, and the
Bankruptcy Court approved that Disclosure Statement on Feb. 6,
2007. The Fourth Amended Plan was confirmed by the Bankruptcy
Court on Nov. 8, 2007, and affirmed by the District Court on
November 14. Federal-Mogul emerged from chapter 11 on Dec. 27,
2007.
(Federal-Mogul Bankruptcy News, Issue No. 171; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)
SEMGROUP LP: Canadian Court Extends CCAA Stay Until November 21
---------------------------------------------------------------
The Honorable Madame Justice Romaine in the Court of Queen's Bench
of Alberta, in the Judicial District of Calgary, Canada, at the
behest of SemCanada Crude Company, SemCAMS ULC, SemCanada
Energy Company, A.E. Sharp, Ltd., CEG Energy Options, Inc.,
319278 Nova Scoatia Company, and 1380331 Alberta ULC, extended
the stay period prohibiting creditors and parties-in-interest
from commencing or continuing any action, through and including
Nov. 21, 2008.
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). These represent the Debtors' restructuring efforts: John
H. Knight, Esq., L. Katherine Good, Esq. and Mark D. Collins, Esq.
at Richards Layton & Finger; Harvey R. Miller, Esq., Michael P.
Kessler, Esq. and Sherri L. Toub, Esq. at Weil, Gotshal & Manges
LLP; and Martin A. Sosland, Esq. and Sylvia A. Mayer, Esq. at Weil
Gotshal & Manges LLP. Kurtzman Carson Consultants L.L.C. is the
Debtors' claims agent. The Debtors' financial advisors are The
Blackstone Group L.P. and A.P. Services LLC.
Margot B. Schonholtz, Esq., and Scott D. Talmadge, Esq., at Kaye
Scholer LLP; and Laurie Selber Silverstein, Esq., at Potter
Anderson & Corroon LLP, represent the Debtors' prepetition
lenders.
SemGroup L.P.'s affiliates, SemCAMS ULC and SemCanada Crude
Company, sought protection under the Companies' Creditors
Arrangement Act (Canada) on July 22, 2008. Ernst & Young, Inc.
The CCAA stay expires on Aug. 20, 2008.
SemGroup L.P.'s consolidated, unaudited financial conditions as of
June 30, 2007, showed US$5,429,038,000 in total assets and
US$5,033,214,000 in total debts. In their petition, they showed
more than US$1,000,000,000 in estimated total assets and more than
US$1,000,000,000 in total debts.
(SemGoup Bankruptcy News, Issue No. 9; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)
* MEXICO: S&P Says RMBS Index Delinquencies & Defaults Up in July
-----------------------------------------------------------------
Mexican homeowners are experiencing economic strain, and this is
leading to more delinquencies on securitized mortgage loans,
according to Standard & Poor's Ratings Services' recently
published Mexican RMBS index.
"Rising inflation, higher interest rates, and increased
unemployment are all straining borrowers, which is leading to
higher delinquencies and even rising defaults" said S&P's credit
analyst Maria Tapia. "In the seven months ending July 30, 2008,
defaults are up almost a full percentage point to 3.03%."
Another probable factor is the extra debt that borrowers have
taken on, which has magnified the negative effects of rising
interest rates and inflation.
"As long as macroeconomic and housing market conditions in Mexico
do not deteriorate significantly, we expect that most residential
mortgage-backed securities (RMBS) transactions will be able to
withstand negative performance resulting from increased
delinquencies and defaults," Ms. Tapia said. "However, ratings
on certain weaker performing transactions could be at risk of a
downgrade."
Highlights from the period Jan. 1, 2008 to July 31, 2008:
-- Overall, defaults rose to 3.03% at July 31 from 2.06% at
Dec. 31 for all originators—banks, Infonavit, and nonbank
financial institutions.
-- The 2004 and 2005 vintages exhibited slightly better
performance in terms of defaults and delinquencies than the
2006 and 2007 vintages.
-- Increased defaults were largest in Mexico City and its
metropolitan area, and in the northern Mexican states
including Baja California, Coahuila, Nuevo Leon, Tamaulipas,
and Chihuahua.
-- Loans originated by nonbank financial institutions exhibited
the highest delinquency levels. Loans originated by
commercial banks had lower delinquencies, and those
originated by Infonavit exhibited the lowest overall.
-- Prepayments slowed at the beginning of the year for both
banks and nonbank financial institutions, with average
constant prepayment rates (CPRs) of 8.50% and 7.75%,
respectively, recovering in May and June. It is common for
CPRs to be lower in the first half of the year compared
with the second half in Mexico due to end of year bonuses.
-- On a relative time scale, which covers months since
issuance, seasonal defaults grew from 5.04% to 5.21% three
years after issuance. S&P expects them to stabilize within
four to six years after issuance.
S&P's Mexican RMBS index report focuses on the housing market's
performance from January 2003 to July 2008. It includes data
from 13 credit institutions. The index tracks 56 transactions,
36 of which are from nonbank financial institutions, 14 are from
Infonavit, and six are from commercial banks.
Outlook For The Mexican RMBS Market
During the next 12 months, S&P expects delinquencies and defaults
to continue increasing, the extent of which will depend on:
-- Banks' and nonbank financial institutions' continued
collection efforts and the effectiveness of their policies
to prevent delinquencies;
-- Inflation, which diminishes the purchasing power of
borrowers and, starting in January 2009, could increase the
monthly mortgage payment amounts due for loans denominated
in inflation-linked units, Unidades de Inversion (UDI);
-- A likely continued increase in interest rates that directly
affects the amounts due on credit cards and consumer loans,
thus increasing the debt-to-income ratio of borrowers; and
-- A continued decrease in the amount of foreign remittances
flowing into the country, which in some cases represents a
high percentage of household income.
S&P expects that credit enhancement (overcollateralization,
subordination, and excess spread) in most RMBS transactions will
remain sufficient to withstand the expected level of defaults on
the securitized loans. However, S&P does expect a few possible
negative rating changes in the next 12 months.
Furthermore, relative-time-scale CPR levels are likely to rise
over the next year as transactions season. That's because
prepayments tend to increase with seasoning. In addition,
prepayment incentives will likely increase for the UDI-denominated
loans due to inflation fears.
===========
P A N A M A
===========
DIGICEL GROUP: Mulls US$334 Million Investment in Panama
--------------------------------------------------------
Digicel Group is planning to invest US$334 million into its
Panama-based unit Digicel Central America after the company won
the country's GSM license in May, various reports say.
Cellular News relates that International Finance Corporation (IFC)
would likely offer funding assistance to infrastructure projects
in developing nations. IFC has been tapped for a US$50 million
loan.
Digicel, Cellular News notes, also expects to contribute to the
local Panamanian economy, employing approximately 300 people
directly in its operations and leading to the indirect employment
of 1000 people.
An IFC report cited by The Jamaica Observer said the "project
consists of the construction and operation of a greenfield mobile
cellular telephone network in Panama."
The project outline, as cited by The Jamaica Observer, disclosed:
"Digicel's strategy is to tap into pent-up demand for reliable
telecommunications services and gain market share by providing a
high-quality network, coupled with affordable prices, attractive
promotions and superior customer service."
A key challenge for Digicel is the “high cost of rural network
deployment is a key barrier to increasing rural penetration in
many developing countries including Panama,” Trinidad & Tobago
Guardian says, citing IFC.
According to Trinidad & Tobago Newsday, Denis O’Brien’s Digicel
Group owns 75% of Digicel Panama, with the remaining stake being
held by the Bettsak Family, a local business group.
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.
====================
P U E R T O R I C O
====================
PORTOLA PACKAGING: Plan Confirmation Hearing Slated for October 6
-----------------------------------------------------------------
Portola Packaging Inc. and its debtor-affiliates will appear
before the U.S. Bankruptcy Court in Delaware on Oct. 6, 2008, for
a confirmation hearing of the Debtors' reorganization plan, Mr.
Rochelle of Bloomberg News relates.
The Troubled Company Reporter said on Sept. 1, 2008, that in
connection with the Debtors' bankruptcy filing, the Debtors
confirmed that all of its secured lenders and holders of
approximately 90% in aggregate principal amount of its 8-1/4%
Senior Notes due 2012 agreed to a voluntary and consensual
restructuring of the company pursuant to the restructuring support
agreement dated July 24, 2008. Pursuant to the proposed plan of
reorganization, holders of the Senior Notes will receive 100% of
the common stock of reorganized Portola in exchange for their
claims.
The company reached agreement with its existing secured lenders
to provide the Company with debtor-in-possession financing of
US$79 million to pay off the outstanding indebtedness under the
company's existing secured facilities and to finance its ongoing
operations.
Mr. Rochelle notes that Wayzata Investment Partners LLC, a
private-equity investor in Wayzata, Minnesota, will hold a
controlling interest in the reorganized company.
Portola, according to Mr. Rochelle, defaulted on a US$60 million
revolving credit loan from General Electric Capital Corp.
following Portola's announcement of a probe on accounting
irregularities at its subsidiaries in China.
About Portola Packaging
Portola Packaging Inc. -- http://www.portpack.com/-- designs,
manufactures, and markets a full line of tamper-evident plastic
closures, bottles, and equipment for the beverage and food
industries, as well as plastic closures and containers for the
cosmetics industry. The company has locations in Puerto Rico
and Mexico.
The company and 6 of its debtor-affiliates filed for Chapter 11
reorganization on Aug. 27, 2008 (Bankr. D. Del. Lead Case No. 08-
12001). Edmon L. Morton, Esq., Robert S. Brady, Esq., and Sean T.
Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent
the Debtors as counsel. When the Debtors filed for protection
from their creditors, they listed assets of between US$50 million
and US$100 million, and debts of between US$100 million and
US$500 million.
===============================
T R I N I D A D & T O B A G O
===============================
HINDU CREDIT: HCUDSG Discord Prompts Two Members to Resign
----------------------------------------------------------
Two members of Hindu Credit Union Depositors and Shareholders
Group (HCUDSG) have left their posts citing a series of blockades
against their attempts to serve members as the main reason for
their resignation, various reports say.
Kim Boodram at The Trinidad & Tobago Express reports that former
president of the HCUDSG Rick Maharaj and former public relations
officer Deosaran Bisnath have now formed the Credit Union Members
Group (CRMG) to support members of the failed Chaguanas credit
union.
According to the Express, Messrs. Bisnath and Maharaj along with
former chairman Leslie Dookie were snubbed over the past week when
several committee members met with HCU president Harry Harnarine
without their knowledge.
Mr. Birnath told Trinidad & Tobago Newsday that there was discord
within the executive of the HCUDSG and certain members within the
executive, whom he could not name, were straying from the original
objective and philosophy of the HCUDSG, which had been formed to
provide support and assistance to shareholders and depositors who
were suffering since the HCU was put into liquidation, with all
its assets frozen, and documents handed over to liquidators in
July this year.
“We felt that some members of the executive wanted to have members
of the Hindu Credit Union (HCU) speak at our meetings, when we
thought that would not be in the best interest of shareholders and
depositors,” Mr. Birnath said, as cited by Trinidad & Tobago
Newsday.
According to Newsday, Commissioner of Co-operatives Charles
Mitchell has to decide the fate of the HCU and by extension its
membership on September 18, based on the complete 200-page Ernst
and Young audit of the credit union, both men have said they are
hurriedly trying to obtain signatures from HCU depositors and
shareholders, to append to a letter addressed to the Commissioner.
Harry Harnarine told Newsday in a telephone interview that neither
Messrs. Bisnath nor Maharaj had submitted any letters of
resignation to the HCUDSG board so far.
Mr. Harnarine was concerned about the manner in which both men had
been operating, since the HCUDSG board was originally supposed to
work with the HCU, instead of acting as an independent body,
Newsday notes.
Newsday relates that Mr. Harnarine has prevented from speaking by
angry depositors during a September 1 meeting with HCUDSG.
Mr. Harnarine, as cited by Newsday, said Businessman Robert
Nandlal has now replaced Maharaj as HCUDSG president, adding that
his attorneys would be calling a general meeting on September 13,
at Lall’s Complex, Penal on behalf of the HCU and the HCUDSG,
where an update on all legal matters regarding the HCU, including
a meeting to discuss the filing of a constitutional motion against
the state, will be discussed.
Headquartered in Borough, Chaguanas, in Trinidad and Tobago, 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.
LYONDELLBASELL: To Build Polyolefins Plant in Trinidad and Tobago
-----------------------------------------------------------------
Through its wholly owned subsidiary Basell Service Company B.V.,
LyondellBasell Industries, the Government of Trinidad and Tobago;
The National Gas Company of Trinidad and Tobago, Ltd.; National
Energy Corporation of Trinidad and Tobago, Ltd. and Lurgi GmbH
have signed a Project Development Agreement. It is intended to
provide the relevant framework to govern the relationship among
the parties to evaluate jointly the construction and operation of
a fully integrated polypropylene complex in Trinidad and Tobago.
The project will include the production of 490 KT of polyolefins
based on three world-scale plants, including a methanol plant and
a methanol-to-propylene (MTP) plant. The propylene produced by
Lurgi's MegaMethanol and MTP technologies will supply feedstock to
a polypropylene plant based on LyondellBasell's Spherizone
technology.
"Our main goal is to establish a sustainable local and regional
supply of polyolefins to the emerging local plastics industry, to
South American markets where demand is forecasted to increase at
an average annual growth rate of 5.2 percent, as well as the
existing large North American markets," explained LyondellBasell
Industries Chief Executive Officer, Volker Trautz. Start up of
operations is tentatively scheduled for late 2012. The entire
project will be undertaken in conjunction with Lurgi GmbH, the
industry leader in methanol and MTP technology.
Mr. Trautz added: "We are happy to have the Government of
Trinidad and Tobago now joining the project. It will combine the
leading position of NGC and NEC in Trinidad and Tobago, with the
state-of-the-art technology of LyondellBasell and Lurgi, as well
as the marketing capability of LyondellBasell."
"The thrust of the Government of Trinidad and Tobago is to develop
the second and third derivate industries from natural gas. The
polyolefin industry is one such industry identified for
development as it is viewed as a building block for expansion of
the local plastics manufacturing sector," explained National
Energy Corp. President, Andrew Jupiter.
Lurgi GmbH is a leading technology company operating worldwide in
the fields of process engineering and plant contracting. The
strength of Lurgi lies in innovative technologies of the future
focusing on customized solutions for growth markets. The
technological leadership is based on proprietary technologies and
exclusively licensed technologies in the areas as-to-petrochemical
products via synthesis gas or methanol and synthetic fuels,
petrochemicals, refining, polymers industry and renewable
resources/food. Lurgi is a company of the Air Liquide Group.
The National Gas Company of Trinidad and Tobago (NGC) was founded
in 1975 and plays a key role in the development of the natural
gas-based energy sector through its core responsibility, that is,
the purchase, transmission, sale and distribution of natural gas
in Trinidad and Tobago.
National Energy Corporation of Trinidad and Tobago (NEC) is a
wholly owned subsidiary of National Gas Co. with the mandate to
promote new gas-based and associated downstream energy industries
and the development and management of industrial estates, port and
marine facilities for the gas-based energy sector.
About LyondellBasell
LyondellBasell Industries AF SCA --
http://www.lyondellbasell.com/-- is a polymers, petrochemicals
and fuels companies. LyondellBasell leads in polyolefins
technology, production and marketing; a pioneer in propylene
oxide and derivatives; and a significant producer of fuels and
refined products, including bio-fuels. Through research and
development, LyondellBasell develops innovative materials and
technologies that deliver exceptional customer value and
products that improve quality of life for people around the
world. Headquartered in The Netherlands, LyondellBasell is
privately owned by Access Industries.
* * *
As reported in the Troubled Company Reporter-Europe on Aug. 25,
2008, Standard & Poor's Ratings Services has lowered its long-term
corporate credit rating to 'B' from 'B+' on Netherlands-based
petrochemicals producer, LyondellBasell Industries AF S.C.A.,
and its subsidiaries Millennium Chemicals Inc., Equistar
Chemicals L.P., and Lyondell Chemical Co. This action follows
the group's weaker-than-expected earnings for the second quarter
of 2008 and a more challenging business outlook for the coming
quarters. At the same time, the issue ratings on the debt
facilities issued by various group entities were lowered. Moody's
said the outlook is negative.
=============
U R U G U A Y
=============
NAVIOS MARITIME: Management Team to Present at Two NY Conferences
-----------------------------------------------------------------
Navios Maritime Holdings Inc's members of its management team will
be presenting at the Dahlman Rose Global Transportation Conference
and the Jefferies Shipping, Logistics and Offshore Services
Conference, both held in New York City.
Navios Holdings' presentation for the Dahlman Rose Global
Transportation Conference will take place on Sept. 10, 2008 at
2:15 PM EDT.
Navios Holdings will also be presenting at Jefferies Shipping,
Logistics and Offshore Services Conference on Sept. 16, 2008
at 10:15 am EDT.
For the Jefferies conference, a live and then archived audio
webcast of Navios's presentation will be available on the
Jefferies website at: http://www.wsw.com/webcast/jeff29/nm.
A PDF version of the slide presentation used at the conference
will be available on the day of the conference on the Navios
website at: http://www.navios.comin the Investor Relations
section.
Navios Maritime Holdings Inc. (Nasdaq: BULK, BULKU, BULKW)
(NYSE: NM) -- http://www.navios.com/-- is a vertically
integrated global seaborne shipping company, specializing in the
worldwide carriage, trading, storing, and other related logistics
of international dry bulk cargo transportation. The company also
owns and operates a port/storage facility in Uruguay and has in-
house technical ship management expertise. It maintains offices
in Piraeus, Greece, South Norwalk, Connecticut and Montevideo,
Uruguay.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2007, Standard & Poor's Ratings Services has revised
its outlook on Greece-based dry-bulk shipping company Navios
Maritime Holdings Inc. to positive from stable. At the same
time the 'BB-' corporate credit ratings on the company were
affirmed. In addition, the senior unsecured debt rating was
raised to 'B+' from 'B'.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Partners w/ PETROSA in Exploration Project
------------------------------------------------------------------
Hugo Chavez, President of the Bolivarian Republic of Venezuela,
disclosed that South Africa's state oil company PETROSA will
participate in the Orinoco Oil Belt (FPO) to work together with
Venezuela in the exploration project.
During his visit to the African nation, agreements will be made in
different areas that will strengthen South-South relations. The
President explained that the purpose is to create a legal
framework to move forward with concrete cooperation mechanisms.
PETROSA will work with Petroleos de Venezuela, S.A. (PDVSA) to
carry out quantification activities in the FPO.
The Venezuelan Head of State added that this nation asked
Venezuela to explore South African soil, and underscored the
advances made by this country regarding energy and the production
of oil and gas.
Other issues, like the Banco del Sur, Telesur and Petrosur will
also be discussed during the meeting, because the purpose is to
“strengthen the south” and “join our potentials”, said President
Chavez.
Moments after his arrival, the Head of State went to the Union
Buildings Presidential Palace, where he received the corresponding
honors, had the first official presidential photo taken, and then
started the meeting with his South African counterpart, Thabo
Mbeki.
Strengthen SOUTH-SOUTH Relations
Moments before, on his arrival to the Johannesburg International
Airport, the Venezuelan Head of State indicated that this is an
official visit to the African nation, and underscored its
importance to strengthen the foundations of South-South
cooperation.
He stated that Africa is a land of renovation and search for the
ways of the people, and pointed out that to step on South African
soil is “to return to the roots of our people”.
He sent greetings to the Venezuelan people from Pretoria, and
acknowledged the struggles of the heroic people of South Africa
against racism and apartheid. He stated that South Africa is a
country of great importance in the continent, and announced that
the visit is also framed within Venezuela’s preparations for the
Summit of African, American and Caribbean Countries to be held
next November.
Speaking to the media that received him upon his arrival to South
Africa, the Venezuelan President sent his regards to Nelson
Mandela, and said he had written a letter during the journey to
the South African country, which he will send to him. He
recognized the African leader as “one of the liberators of this
people, of this land”.
Before continuing with his agenda in this nation, he said that the
people he met this Tuesday “taught us about dignity, how to fight
against the empire, how people stand up, and how a modern country
is built”.
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.
***********
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 * * *