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/raid1/www/Hosts/bankrupt/TCRLA_Public/080925.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 Thursday, September 25, 2008, Vol. 9, No. 191 Headlines A R G E N T I N A ALLIANCE CORP: Individual Reports Filing Deadline Is on October 2 BPS IMPLANTES: Files for Reorganization in Buenos Aires Court CABLEVISION SA: Inks IPG Deal With Macrovision and America Movil CAMEGRAL SA: Files for Reorganization in Buenos Aires Court CERAMICA ASTROS: Proofs of Claim Verification Deadline Is Nov. 5 DON CAMPORCINO: Trustee Verifying Proofs of Claim Until October 13 EL CONDOR: Proofs of Claim Verification Deadline Is October 24 LAIME SRL: Proofs of Claim Verification Deadline Is November 25 MARIO MANILDO: Trustee Verifying Proofs of Claim Until December 15 NOCHE DE BUENOS: Proofs of Claim Verification Deadline Is Oct. 30 OPERACIONES INTEGRALES: Claims Verification Deadline Is October 24 SOPROSER SA: Files for Reorganization in Buenos Aires Court B A H A M A S BAC BAHAMAS: Costa Rican Bank Changes Cues S&P to Affirm BB/B Rtgs B E R M U D A CABLE & WIRELESS: To Slash About 1/3 of Caribbean Workforce IPC HOLDINGS: To Hold 3rd Quarter 2008 Earnings Webcast on Oct. 24 B R A Z I L ATARI INC: Stockholders Will Vote on Merger Deal on Oct. 8 ATARI INC: Offering to Buy Options Under 2005 Stock Incentive Plan AUTOCAM CORP: Moody's Changes PDR to 'Caa3/LD' from Caa3 BANCO BRADESCO: Agora to Remain Independent After Purchase BANCO NACIONAL: Not Shaken by Drop in Iron Ore Prices CIA. SIDERURGICA: To Sell Namisa Mine by October, Analyst Says COSAN SA: Grants Capital Stock Increase to BRL880 Million COSAN SA: Moody's Downgrades Ratings to Ba3 With Negative Outlook GENERAL MOTORS: Diminishing Liquidity Cues Fitch to Junk IDR C A Y M A N I S L A N D S AIR ASIA AERO: Deadline for Proof of Claim Filing Is Oct. 1 AFFINITY CAPITAL: Sets Final Shareholders Meeting for Oct. 1 ASM HOLDINGS: Will Hold Final Shareholders Meeting on Oct. 1 CARRERA LTD: Holding Final Shareholders Meeting on Oct. 1 CORDILLERAS SILVER: Final Shareholders Meeting Is on Oct. 1 IXIS REAL ESTATE: Holds Final Shareholders Meeting on Oct. 1 MAEDEC SUPPLY: Surging Costs Prompt Closure of One Restaurant SI INVESTMENTS: To Hold Final Shareholders Meeting on Oct. 1 SILEX LIMITED: Holding Final Shareholders Meeting on Oct. 1 C H I L E GLOBAL CROSSING: Names John Kritzmacher as Chief Financial Officer NORSKE SKOG: Lower Liquidity Concerns Cue S&P to Hold BB- Rating C O L O M B I A GRAN TIERRA: Reports Development Plan for Costayaco Field C O S T A R I C A BANCO BAC: S&P's BB/B Ratings Reflect Dollarized Balance Sheet E C U A D O R * ECUADOR: Eyes Oil Output to Boost 511,408 bpd by Next Year G U Y A N A * GUYANA: To Fine Chinese Import/Export Sugar Firm for US$5 Mil. J A M A I C A AIR JAMAICA: To Select New Chief Executive Officer on Oct. 1 JAMAICA PRODUCERS: Halts Export Production of Bananas M E X I C O BLUE WATER: Court Approves US$1.6 Mil. Sale of Burlington Assets FLOWSERVE CORP: Expands Power Generation in Two Power Stations KRISPY KREME: Posts US$1.9 Million Net Loss in Qtr. Ended August 3 SANLUIS CORPORACION: Fitch Cuts Foreign & Local Currency IDRs P A N A M A GLOBAL CROSSING: Resolves Patent Suit Filed by C2 Technologies P U E R T O R I C O ROYAL CARIBBEAN: Taps Dr. Arthur Diskin as Chief Medical Officer ZAP IMPORT: U.S. Trustee Sets 341(a) Meeting for October 10 ZAP IMPORT: Court Approves Winston Vidal as Bankruptcy Counsel ZAP IMPORT: Files Schedules of Assets and Liabilities V E N E Z U E L A * VENEZUELA: Mulls Building of Three Refineries in China * Carmax in Struggling Used Vehicle Market, Investment Firm Says * Moody's Sees Negative Outlook for Global Pharmaceutical Sector * Moody's: Global Paper Product Industry Still Holds Neg. Outlook * S&P Sees Increasing Strain in Latin America But Outlook Stable * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= ALLIANCE CORP: Individual Reports Filing Deadline Is on October 2 ----------------------------------------------------------------- Felisa Tumilasci, the court-appointed trustee for Alliance Corporation SA's bankruptcy proceeding, will present the validated claims as individual reports in the National Commercial Court of First Instance No. 8 in Buenos Aires, with the assistance of Clerk No. 16, on October 2, 2008. Ms. Tumilasci is verifying creditors' proofs of claim until November 26, 2008. She will also submit to court a general report containing an audit of Alliance Corporation's accounting and banking records on March 24, 2009. Ms. Tumilasci is also in charge of administering Alliance Corporation's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Alliance Corporation SA Humahuaca 423 Buenos Aires, Argentina The trustee can be reached at: Felisa Tumilasci Avda. Callao 449 Buenos Aires, Argentina BPS IMPLANTES: Files for Reorganization in Buenos Aires Court ------------------------------------------------------------- BPS Implantes S.R.L. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow BPS Implantes to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 16 in Buenos Aires. Clerk No. 31 assists the court in this case. The debtor can be reached at: BPS Implantes S.R.L. Larrea 1007 Buenos Aires, Argentina CABLEVISION SA: Inks IPG Deal With Macrovision and America Movil ---------------------------------------------------------------- Macrovision Solutions Corporation has signed multi-year agreements for its Passport Interactive Program Guides (IPG) products with multiple Latin America cable system operators. America Movil subsidiaries, Claro Guatemala, Claro El Salvador, Claro Nicaragua and Claro Honduras, as well as Cablevision S.A. Argentina, Telecentro Argentina and Videomar Brazil have all chosen to provide Macrovision's Passport IPG solutions to their cable viewers, enhancing their overall TV viewing experience. With DVR and video on demand features starting to change consumer behavior, the ability to increase the consumers' interaction with television is in high demand. Macrovision's Passport products are designed to provide cable operators with more features to draw viewers to their cable services. "Cablevision S.A. Argentina is expanding its services to include advanced capabilities for organizing, viewing and choosing television programming," said Laura Lozes, Business Intelligence Manager at Cablevision S.A. Argentina. "We've lined up with Macrovision and its Passport IPG products because the company provides an easy-to-view guide as well as the technology behind making television more enjoyable." "The complete Passport product line offers cable operators a compelling differentiator for their cable system and helps increase their viewers' satisfaction with their services," said Tom Carson, executive vice president of worldwide sales and services at Macrovision. "Our recent wins in Latin America point to the ability of our products to deliver advanced viewing and entertainment applications that are truly of interest to viewers." The Passport product line is being used by cable system operators around the world, increasing their business opportunities and enhancing their viewers' satisfaction with their cable services. The Passport line includes: -- Passport DC, Macrovision's IPG solution for Motorola's DCT series of set-tops; -- Passport Echo, an application suite of high resolution graphics and intuitive interface designed specifically for HD/DVR set-tops; -- Application options such as PassTime Games and PassTime Puzzlers; -- QuickMenu, a configurable menu allows viewers to launch cable TV services with a few remote clicks and -- An Interactive Video Mosaic application that enables viewers to watch multiple scaled video streams on a single channel and launch services by high-lighting and selecting channels. In addition, the Passport DCT and Passport Echo products support Latin American markets with Spanish subtitles, Latin American parental control ratings and the ability to pre-stage set-tops with a Spanish IPG language setting. Claro Guatemala, Claro El Salvador, Claro Nicaragua and Claro Honduras, Cablevision S.A. Argentina, Telecentro Argentina and Videomar Brazil have all launched Passport DCT, Passport Echo, Passport Games, Passport Puzzlers, QuickMenu as a part of their services. Videomar Brazil has also launched the Interactive Video Mosaic option. About Macrovision Macrovision Solutions Corp. -- http://www.macrovision.com/-- provides connected middleware, metadata on music, games, movies and television programming, media recognition, interactive programming guides, and copy protection. The company also operates entertainment portals and holds over 3,500 issued or pending patents and patent applications worldwide. Macrovision is headquartered in Santa Clara, California, with numerous offices across the United States and around the world including Japan, Hong Kong, Luxembourg, and the United Kingdom. About Cablevision Headquartered in Buenos Aires, Cablevision S.A. -- http://www.cablevision.com.ar/-- is the largest multiple systems operator in Argentina serving 3,000,000 pay TV basic subscribers including a market-leading presence in 4 of the top 5 designated market areas and 160 thousands basic subscribers in Uruguay and Paraguay (jointly 5% of subscribers). The company offers Internet services, serving more than 770 thousands internet subscribers (90% cable modem). For year-end 2007, the company had revenues of US$838.4 million and EBITDA of US$276.9 million. Cablevision is indirectly controlled by the Argentine media group Clarin (60%) and 40% by Fintech Advisory Inc. * * * As reported in the Troubled Company Reporter-Latin America on June 26, 2008, Fitch Ratings has assigned Cablevision S.A. a long-term foreign and local currency Issuer Default Ratings of 'B+'. Fitch has also assigned a 'B+' rating to the senior unsecured notes and a Recovery Rating of 'RR4', which indicates average recovery prospects in the event of default. Fitch's rating outlook is stable. CAMEGRAL SA: Files for Reorganization in Buenos Aires Court ----------------------------------------------------------- Camegral S.A. has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Camegral 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 No. 13 in Buenos Aires. Clerk No. 26 assists the court in this case. The debtor can be reached at: Camegral S.A. Humahuaca 3951 Buenos Aires, Argentina CERAMICA ASTROS: Proofs of Claim Verification Deadline Is Nov. 5 ---------------------------------------------------------------- The court-appointed trustee for Ceramica Astros SRL's bankruptcy proceeding, will be verifying creditors' proofs of claim until November 5, 2008. The trustee will present the validated claims in court as individual reports on December 18, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Ceramica Astros 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 Ceramica Astros' accounting and banking records will be submitted in court on March 5, 2009. The trustee is also in charge of administering Ceramica Astros' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Ceramica Astros SRL Guemes 3646 Buenos Aires, Argentina DON CAMPORCINO: Trustee Verifying Proofs of Claim Until October 13 ------------------------------------------------------------------ The court-appointed trustee for Don Camporcino S.R.L.'s reorganization proceeding will be verifying creditors' proofs of claim until October 13, 2008. The trustee will present the validated claims in court as individual reports on November 24, 2008. The National Commercial Court of First Instance in Mercedes, usually 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 Don Camporcino 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 Don Camporcino's accounting and banking records will be submitted in court on December 29, 2008. Creditors will vote to ratify the completed settlement plan during the assembly on June 30, 2009. EL CONDOR: Proofs of Claim Verification Deadline Is October 24 -------------------------------------------------------------- The court-appointed trustee for El Condor S.C.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 29, 2008. The National Commercial Court of First Instance in San Isidro, 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 El Condor 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 El Condor's accounting and banking records will be submitted in court on February 23, 2009. The trustee is also in charge of administering El Condor's assets under court supervision and will take part in their disposal to the extent established by law. LAIME SRL: Proofs of Claim Verification Deadline Is November 25 --------------------------------------------------------------- The court-appointed trustee for Laime S.R.L.'s bankruptcy proceeding, will be verifying creditors' proofs of claim until November 25, 2008. The trustee will present the validated claims in court as individual reports on December 12, 2008. The National Commercial Court of First Instance in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by Laime S.R.L. 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 Laime S.R.L.'s accounting and banking records will be submitted in court on March 27, 2009. The trustee is also in charge of administering Laime S.R.L.'s assets under court supervision and will take part in their disposal to the extent established by law. MARIO MANILDO: Trustee Verifying Proofs of Claim Until December 15 ------------------------------------------------------------------ Jorge Alvarez, the court-appointed trustee for Mario Manildo Instalaciones SA's bankruptcy proceeding will be verifying creditors' proofs of claim until December 15, 2008. Mr. Alvarez will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 10 in Buenos Aires, with the assistance of Clerk No. 20, 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 Mario Manildo 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 Mario Manildo's accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Mr. Alvarez is also in charge of administering Mario Manildo's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Mario Manildo Instalaciones SA Avenida Nazca 1789 Buenos Aires, Argentina The trustee can be reached at: Jorge Alvarez B. Mitre 1738 Buenos Aires, Argentina NOCHE DE BUENOS: Proofs of Claim Verification Deadline Is Oct. 30 ----------------------------------------------------------------- Maria Ledesma, the court-appointed trustee for Noche de Buenos Aires SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until October 30, 2008. Ms. Ledesma will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 36, 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 Noche de Buenos 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 Noche de Buenos' accounting and banking records will be submitted in court. La Nacion didn't state the submission dates for the reports. Ms. Ledesma is also in charge of administering Noche de Buenos' assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Noche de Buenos Aires SA Maipu 388 Buenos Aires, Argentina The trustee can be reached at: Maria Ledesma Avenida Cordoba 1351 Buenos Aires, Argentina OPERACIONES INTEGRALES: Claims Verification Deadline Is October 24 ------------------------------------------------------------------ The court-appointed trustee for Operaciones Integrales de Carga 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. 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 Operaciones Integrales 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 Operaciones Integrales' accounting and banking records will be submitted in court on February 20, 2009. The trustee is also in charge of administering Operaciones Integrales' assets under court supervision and will take part in their disposal to the extent established by law. SOPROSER SA: Files for Reorganization in Buenos Aires Court ----------------------------------------------------------- Soproser SA has requested for reorganization approval after failing to pay its liabilities. The reorganization petition, once approved by the court, will allow Soproser SA to negotiate a settlement with its creditors in order to avoid a straight liquidation. The case is pending in the National Commercial Court of First Instance No. 18 in Buenos Aires. Clerk No. 36 assists the court in this case. The debtor can be reached at: Soproser SA Alsina 943 Buenos Aires, Argentina ============= B A H A M A S ============= BAC BAHAMAS: Costa Rican Bank Changes Cues S&P to Affirm BB/B Rtgs ------------------------------------------------------------------ Standard & Poor's Rating Services has affirmed its 'BB/B' foreign currency counterparty credit ratings on the Bahamas-based BAC Bahamas Bank. The outlook is stable. The ratings assigned to BAC Bahamas are based on the foreign currency ratings assigned to Costa Rica-based Banco BAC San Jose, S.A. Due to a change in the Costa Rican regulation, there will be some change in the organizational structure of BAC; however this change will not affect BAC Bahamas' financial performance. BAC Bahamas' liquidity position has been reinforced by BAC San Jose and British Virgin Islands-based Credomatic International Corp. (BBB/A-2). The bank's loan portfolio has traditionally been funded with customer deposits. S&P expects the financial flexibility of this subsidiary to continue being supported by the Costa Rican bank and Credomatic International. Since BAC Bahamas and BAC San Jose share the same client base and corporate policies, BAC Bahamas' performance has followed that of the Costa Rican bank, reporting similar growth trend in commercial loans. The balance sheet is entirely US$-denominated and most of the bank's clients are not net dollar generators. Although dollarization of the Costa Rican economy is decreasing slightly, a significant devaluation would harm the loan portfolio performance and could have an impact on capitalization through a decreasing in the earnings. Due to regulatory changes Costa Rican groups will not be allowed to maintain an offshore entity after Jan. 1, 2009. The change in regulation is considered a good step toward improving transparency in the Costa Rican financial system but BAC Bahamas will no longer be a subsidiary of Grupo Financiero BAC Credomatic, although S&P expects it to maintain the same business and operating performance. Capability of management resulted in consistently adequate profitability indicators, with average ROA of 2%. The foreign currency rating assigned to BAC San Jose constrains those on BAC Bahamas because they share the same management, policies, client base, and operating environment. The stable outlook reflects BAC San Jose's commercial position in Costa Rica and its adequate financial profile, which allows it to support some probable inflation pressure. If the bank's performance deteriorates, especially liquidity, or if there is a negative rating action on the sovereign ratings on the Republic of Costa Rica, the rating on the bank could be pressured. BAC Bahamas Bank is the offshore bank of Grupo Financiero BAC Credomatic (not rated) and mirrors the Costa Rican onshore bank, Banco BAC San Jose SA. The two banks share the same client base and follow the same corporate policies, with the vast majority of business and assets originated in Costa Rica, denominated in U.S. dollars, and registered offshore. ============= B E R M U D A ============= CABLE & WIRELESS: To Slash About 1/3 of Caribbean Workforce ----------------------------------------------------------- Cable & Wireless plc is shedding hundreds of employees from its businesses across the Caribbean region as part of a restructuring plan, Caribbean Broadcasting Corp.'s Kent Jerson reports. The company, the report says, is reorganizing its Caribbean operation from several individual business centers to one entity amid increasing competition in the telecommunications sector. According to the report, a senior official of the company has confirmed that of the 3700 employees across the region, 1200 are expected to lose their jobs. The report notes no final decisions have been made on how the changes will be implemented on a country by country basis. The company meanwhile intends to discuss with staff and their representatives the impact of its decisions until the end of October, the report adds. Headquartered in London, England, Cable & Wireless plc -- http://www.cw.com/-- is an international telecommunications company. The Company offers mobile, broadband and domestic and international fixed line services to homes, small and medium-sized enterprises, corporate customers and governments. It operates in 39 countries through four major operations in the Caribbean, Panama, Macau and Monaco & Islands. It operates through two businesses: International and Europe, Asia & US. Its International business operates full service telecommunications companies through four major operations in the Caribbean, Panama, Macau and Monaco and Islands. Its Europe, Asia & US provides enterprise and carrier solutions to the largest users of telecom services across the United Kingdom, continental Europe, Asia and the United States. Its subsidiaries include Cable & Wireless UK, Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable & Wireless (Barbados) Ltd and Monaco Telecom SAM. * * * According to Bloomberg data, Cable & Wireless plc continues to carry Moody's "Ba3" long-term corporate family rating, "B1" senior unsecured debt rating and "Ba3" probability of default rating with a stable outlook. The company also carries Standard & Poor's "BB-" long-term foreign and local issuer credit ratings and "B" short-term foreign and local issuer credit ratings. IPC HOLDINGS: To Hold 3rd Quarter 2008 Earnings Webcast on Oct. 24 ------------------------------------------------------------------ IPC Holdings, Ltd. has announced these webcast alert: What: IPC Holdings, Ltd. 3rd Quarter 2008 Conference Call When: Oct. 24, 2008 at 8:30 AM Eastern Conference Tel. Numbers: (800) 862-9098 (785) 424-1051 Conference ID: IPC Where: http://www.videonewswire.com/event.asp?id=51601 How: Log on to the web above. Contact: Valerie T. Masters Tel. Number: (441) 298-5111 Email: valerie.masters@ipcre.bm, Headquartered in Bermuda, IPC Holdings, Ltd. through its wholly owned subsidiary IPCRe Limited (Bermuda), provides property catastrophe reinsurance and, to a limited extent, aviation, property-per-risk excess and other short-tail reinsurance on a worldwide basis, with a subsidiary in Dublin, Ireland. * * * IPC Holdings, Ltd. carried A.M. Best Co.'s BB+ rating on the company's US$236,250,000 convertible preferred stock assigned on Nov. 1, 2005. The preferred stock will mature on Nov. 15, 2008. =========== B R A Z I L =========== ATARI INC: Stockholders Will Vote on Merger Deal on Oct. 8 ---------------------------------------------------------- Atari, Inc., will hold a special meeting of stockholders on Oct. 8 , 2008 at 10:00 a.m., at Atari's offices at 417 Fifth Avenue in New York. The purpose of the meeting is: 1. to consider and vote upon a proposal to adopt and approve the Agreement and Plan of Merger, dated as of April 30, 2008, by and among Atari, Infogrames Entertainment S.A., and Irata Acquisition Corp.; and 2. to transact other business as may properly come before the special meeting or any adjournments or postponements of the special meeting. The record date to determine stockholders entitled to vote at the special meeting is August 22, 2008. Only holders of Atari common stock at the close of business on the record date are entitled to notice of, and to vote at, the special meeting. Atari filed a definitive proxy statement under Regulation 14A of the Securities Exchange Act of 1934, as amended, relating to a special meeting of the stockholders. A full-text copy of the Proxy Statement is available for free at: http://researcharchives.com/t/s?324b The stockholder vote required for the adoption of the Merger Agreement is the affirmative vote of at least a majority of the Company's outstanding Common Stock entitled to vote on the merger. Infogrames and its affiliates control 51.6% of the outstanding voting securities of Atari, which is sufficient to adopt and approve the merger and the merger agreement. Atari also delivered to the Securities and Exchange Commission on Sept. 5, 2008, Amendment No. 3 to the Schedule 13E-3 it filed in June. The amendment was filed together with: -- Infogrames Entertainment S.A., -- California U.S. Holdings, Inc., and -- Irata Acquisition Corp. Schedule 13E-3 is a document filed with the SEC to report going private transactions. A full-text copy of Atari's amended Schedule 13E-3 is available for free at: http://researcharchives.com/t/s?324a As reported by the Troubled Company Reporter on May 6, 2008, Atari, Inc., and Infogrames Entertainment entered into a definitive agreement to merge, in order to: * bring to a close a period of financial underperformance for Atari; * strengthen Atari under Infogrames' new management team; and * deliver a platform for future growth in the U.S. About Atari Inc. New York City-based Atari Inc. is a publisher of video game software that is distributed throughout the world and a distributor of video game software in North America. Most of the products it publishes and distributes are games developed by or for Infogrames Entertainment S.A., or IESA, a French corporation listed on Euronext, which owns approximately 51% of its stock. Atari has offices in Brazil, the United Kingdom and Japan. Going Concern Doubt As reported in the Troubled Company Reporter on July 16, 2008, J.H. Cohn LLP raised substantial doubt about Atari Inc.'s ability to continue as a going concern after it audited the company's financial statements for the year ended March 31, 2008. The auditor pointed to the company's significant operating losses. ATARI INC: Offering to Buy Options Under 2005 Stock Incentive Plan ------------------------------------------------------------------ Atari, Inc., delivered to the Securities and Exchange Commission a tender offer statement on Sept. 5, 2008, which was amended on Sept. 12. Atari wants to purchase for cash all outstanding vested and unvested options to purchase its common stock granted under the Atari, Inc. 2005 Stock Incentive Plan. The company estimates buying options to acquire 165,593 shares of common stock, each with an exercise price greater than US$1.68, for US$0.10 per option. The offer is being made in connection with the proposed merger of Irata Acquisition Corp., a Delaware corporation and a wholly owned indirect subsidiary of Infogrames Entertainment S.A., Atari's majority shareholder, with and into Atari, with Atari continuing as the surviving corporation in the merger as a wholly owned indirect subsidiary of Infogrames, and pursuant to which each outstanding share of Atari common stock will be converted into the right to receive US$1.68 in cash. The offer will expire at 5:00 p.m., New York City Time, on Oct. 8, 2008, unless extended or the offer is terminated. A full-text copy of the Amended Offer to Purchase is available for free at http://researcharchives.com/t/s?3249 About Atari Inc. New York City-based Atari Inc. is a publisher of video game software that is distributed throughout the world and a distributor of video game software in North America. Most of the products it publishes and distributes are games developed by or for Infogrames Entertainment S.A., or IESA, a French corporation listed on Euronext, which owns approximately 51% of its stock. Atari has offices in Brazil, the United Kingdom and Japan. Going Concern Doubt As reported in the Troubled Company Reporter on July 16, 2008, J.H. Cohn LLP raised substantial doubt about Atari Inc.'s ability to continue as a going concern after it audited the company's financial statements for the year ended March 31, 2008. The auditor pointed to the company's significant operating losses. AUTOCAM CORP: Moody's Changes PDR to 'Caa3/LD' from Caa3 -------------------------------------------------------- Moody's Investors Service changed Autocam Corporation's Probability of Default rating to Caa3/LD from Caa3 and affirmed the Corporate Family Rating of Caa3 and Caa2 rating of the senior secured credit facilities. The rating action follows the completion of a capital restructuring which included an exchange of 20% of the senior secured debt for newly issued equity by its parent Titan Holdings, Inc., a cash contribution by certain shareholders of Titan of $20 million and a credit agreement amendment. Moody's considers the transaction a distressed exchange of the rated term loan debt, thus has changed the PDR to Caa3/LD. The PDR will revert to Caa3 in approximately three days. The rating outlook is negative. The reduction of the debt of approximately 10% per Moody's estimate does not materially alter the credit profile reflected in Autocam's Caa3 CFR. The company's cash flow generation remains weak and leverage remains high despite the positive effect of the debt reduction and the cash infusion by its equity holders as a result of the restructuring. The current rating reflects Moody's continued concern on the company's weak operating performance which has been impacted by reduced automotive production levels in North American and Western Europe, as well as operational difficulties at Autocam's French subsidiaries, among other factors. In Moody's opinion, the operating environment for automotive supplier will remain challenged and Autocam's will likely persist, offsetting the benefit from the restructuring. The negative outlook continues to reflect the company's limited prospect of near-term improvement in the operating performance in light of a prolonged challenging operating environment for auto suppliers which will continue for the next 12-18 months. The outlook also contemplates the company's weak liquidity position in spite of the enhancement due to the cash infusion. The rating action is as follows: Autocam Corporation -- Corporate Family Rating: affirmed at Caa3 -- Probability of Default Rating: changed to Caa3/LD from Caa3 -- US denominated first lien term loan affirmed at Caa2 (LGD-3, 39%) -- US denominated first lien revolving credit facility affirmed at Caa2 (LGD-3, 39%) -- Outlook, negative Autocam Corporation France SARL -- Euro denominated first lien revolving credit facility affirmed at Caa2 (LGD-3, 39%) Moody's last rating action was on August 15, 2008 when Autocam's CFR was downgraded to Caa3 from B3 with negative outlook. Autocam Corporation, headquartered in Kentwood, Michigan, is a manufacturer of extremely close tolerance precision-machined, metal alloy components, sub-assemblies, primarily for performance and safety critical automotive applications. Revenues in 2007 were approximately US$387 million from operations in North America, Europe, Brazil and China. BANCO BRADESCO: Agora to Remain Independent After Purchase ---------------------------------------------------------- Banco Bradesco SA anticipates minimal time to incorporate its recent purchase of local brokerage Agora Corretora as it maintains the brokerage's independence, Bradesco Vice President Jose Luiz Acar Pedro told Business News Americas. Mr. Acar heads the bank's investment banking unit BBI, under which Agora will be a subsidiary. "We intend to keep Agora independent in order to take advantage of their main strengths and assets," he said. According to BNAmericas, earlier this month, Brazil's central bank approved the sale which transferred BBI shares worth close to 8% of its total capital to Agora shareholders. Bradesco shareholders meanwhile were set to approve the deal worth an estimated BRL830 million (US$461 million) last week, the report says. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. (NYSE: BBD) -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer- mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * According to Bloomberg data, Banco Bradesco S.A. continues to carry Moody's "Ba2" long-term foreign bank deposits and "B-" bank financial strength rating with a stable outlook. BANCO NACIONAL: Not Shaken by Drop in Iron Ore Prices ----------------------------------------------------- Luciano Coutinho, president of Banco Nacional de Desenvolvimento Economico e Social SA or BNDES, said that the bank isn't worrying about falling prices of iron ore and other commodities, Claudio Mendonca of Business News Americas reported Thursday, Sept. 18, 2008. According to the report, Mr. Coutinho said in a press conference in Rio that he believes prices will bounce back as Asia's voracious consumption of minerals will remain high. He added that "[c]ommodity prices have a level of sustainability" owing to developing economies, BNAmericas relates. The report says Mr. Coutinho expects Asian economies to be in a condition to maintain the level of commodity prices despite an expected decrease in annual economic growth to 9.5% from 12%. He said that "China will continue to be the top buyer of Brazilian commodities." As a main financier of Brazilian industry, BNDES funded the metallurgical industry with BRL1.87 billion (US$997 million) in January-August 2008, the equivalent to 4% of all industrial disbursements, BNAmericas reports. Also through August, the bank approved loans of BRL2.62 billion for the metallurgical sector, while approvals totaled BRL3.49 billion in the last 12 months. The mining sector, which for BNDES includes petroleum extraction, received BRL1.79 billion in the first eight months and was approved for a total BRL10.6 billion in the same period. 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: To Sell Namisa Mine by October, Analyst Says -------------------------------------------------------------- SLW Corretora Analyst Pedro Galdi has predicted that the sale of Companhia Siderurgica Nacional S.A.'s iron ore unit Nacional Minerios SA, a.k.a. Namisa, is likely to occur by the end of October, Claudio Mendonca at Business News Americas reports. According to BNamericas, CSN disclosed earlier this year that it planned to sell all or part of Namisa, and then confirmed in August that the idea is to sell 40-50%. The analyst said the market is pricing Namisa at US$5 billion to US$10 billion but he believed the transaction faces a number of different potential outcomes, BNamericas notes. Mr. Galdi, as cited by BNamericas, stressed that CSN could either sell Namisa in its entirety or partially, adding that if CSN sells only a stake, its logistics system could be included in the transaction as well. Another possibility, the analyst forecasted, is for CSN to negotiate part of Namisa and include an amount of iron ore from its Casa de Pedra mine that does not form part of Namisa, BNamericas says. The analyst said everything is still under negotiation, BNamericas adds. BNamericas states that Mr. Galdi, who believes there are two or three potential buyers, explained it does not appear that potential buyers are going to partner with CSN. As reported in the Troubled Company Reporter-Latin America on Aug. 26, 2008, CSN sought to sell Namisa to help raise cash to expand its larger iron-ore unit, Casa de Pedra, which started exporting in 2007. Namisa has a goal to sell 40 million metric tons per year of iron ore from its own mines and third parties by 2011. However, according to Mr. Galdi, CSN, for a number of years, was not profiting from its Casa de Pedra mine because of a legal dispute with Brazilian miner Vale, a former CSN stakeholder. At the time, Vale had exclusive rights on the sale of Casa de Pedra iron ore. Eventually, antitrust regulator Cade favored CSN in the Casa de Pedra case against Vale. As a result, the CSN regained control of the mine. Now in full control of Casa de Pedra, CSN wants to cash in on the sale of Namisa, the report notes. About Companhia Siderurgica Nacional 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. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 10, 2008, Moody's Investors Service upgraded the senior unsecured long term debt ratings of Companhia Siderurgica Nacional and its backed notes from Ba2 to Ba1. The TCR-LA reported on June 6, 2008, that Standard & Poor's Ratings Services raised its corporate credit rating on Brazil- based steelmaker Companhia Siderurgica Nacional to 'BB+' from 'BB' and removed it from CreditWatch. S&P had placed the ratings on CreditWatch with positive implications on May 30, 2008, for better cash flow protection measures. The outlook is positive. At the same time, S&P raised the corporate credit rating on subsidiary National Steel SA to 'BB-' from 'B+', with a positive outlook. COSAN SA: Grants Capital Stock Increase to BRL880 Million --------------------------------------------------------- Cosan Industria e Comercio has approved an increase of BRL880 million in the company's capital stock, from BRL2.93 billion to BRL3.81 billion, Noticias Financieras reports. According to the report, Cosan will issue 55 million common shares, which correspond to 20.18% of the total number of shares. Headquartered in Piracicaba, Brazil, Cosan S.A. Industria e Comercio -- http://www.cosan.com.br/en/ir/-- produces sugar and ethanol. The company cultivates harvests and processes sugarcane, the main raw material for sugar and ethanol manufacturing. With 17 manufacturing units and two port terminals in the city of Santos, Cosan says it is currently the largest individual group in the world in terms of sugarcane byproducts manufacturing. With capacity to grind more than 40 million tonnes of sugarcane, the group represents 12% of overall production in the mid-southern region of the country. COSAN SA: Moody's Downgrades Ratings to Ba3 With Negative Outlook ----------------------------------------------------------------- Moody's downgraded Cosan SA's ratings to Ba3 from Ba2 on the global scale, and at the same time downgraded Cosan's Brazilian national scale rating to A3.br from A1.br. The downgrade concludes the review for possible downgrade initiated on April 25, 2008, after the announcement that Cosan had entered into a share purchase agreement with ExxonMobil International Holdings B.V. to acquire ExxonMobil's fuel distribution and lubricant assets in Brazil (Esso). The outlook for all ratings is negative. "The rating action reflects Cosan's higher leverage, weaker operating margins and negative free cash flow, which resulted from a combination of adverse market conditions over the past quarters and the expected use of liquidity for the Esso acquisition, together with an ambitious capital expenditure program for the next few years", said Moody's Vice-President Senior Analyst, Soummo Mukherjee. "The negative outlook reflects Cosan's higher leverage combined with an ambitious growth strategy that will likely lead to substantial negative free cash flow for the next two years, and incorporates the potential integration challenges and uncertainties in Cosan's financial results following the acquisition of Esso," he added. Cosan's Ba3 local currency corporate family rating reflects its dominant market position as the largest producer of sugar and ethanol in Brazil and leading positions in the sugar and ethanol markets, as well as its solid track record in integrating past acquisitions. It further reflects the company's more integrated operating platform following the Esso acquisition and Cosan's corporate governance, transparency and financial disclosure standards, when compared to most other rated Brazilian Natural Food processors. The Ba3 rating also reflects the susceptibility of Cosan's earnings and cash flow to sugar prices and foreign exchange variations, as well as to weather conditions. Adverse weather conditions may reduce the amount of sugarcane the company can cultivate or produce and affect the sucrose content of the sugarcane. Moody's recognize, however, that the Esso acquisition will bring more stability to Cosan's operating margins and cash flow generation, although also lower overall margins. While the Ba3 global scale rating reflects the global default and loss expectation of Cosan or its debts, the A3.br national scale rating reflects the standing of its credit quality relative to other domestic issuers or debt issuances. Cosan is undergoing an ambitious investment program over the next few years to prepare the company to become a larger, more integrated long-term player in sugar, ethanol and electricity sales, through its cogeneration plants, and in fuel distribution, through the Esso acquisition. As part of the expansion program the company expects to increase its sugarcane crushing capacity to over 60 million tons from its current 40 million through greenfield and brownfield projects, in which Cosan could invest around BRL2.5 billion over the next four years. With the goal of reducing logistics costs, Cosan has entered into a joint-venture with Copersucar and Crystalsev, to form Uniduto, to develop an ethanol pipeline linking its port terminal with the cities of Paulinia, Conchas and Ribeirao Preto. Since the creation of this project, other companies have joined the joint- venture. Estimated total capex is BRL1.64 billion to be divided to be divided proportionally according to each shareholder's participation. With the expectation of increased capacity, the company sees potential to produce over 1,300 MW of electricity, after investments of around BRL2 billion. The company expects to obtain BNDES financing to fund 80 to 85% of this cogeneration project. Cosan's capital expenditure plans could improve the company's credit profile in the long-term. However, in the near to medium- term, Cosan will be dependent on external debt or equity financing for its investments over the next few years and the resulting significant negative free cash flow. In Moody's view, without considering its negative free cash flow, Cosan does not face significant refinancing risk, due to its comfortable debt maturity profile. The cash and cash equivalents of BRL634 million comfortably covers Cosan's upcoming maturities in the next twelve months. However, liquidity could weaken if the company uses cash at Cosan S.A. for the Esso acquisition or is unable to raise additional financing or enter into strategic partnerships for its high capital expenditure program. After the deal's expected closing date in December 2008, Cosan will pay US$826 million for the Esso acquisition. The total acquisition price including assumed debt and net of related-party receivables is US$954 million. On September 19, the company announced a private subscription of Cosan's shares to allow a capitalization of BRL880 million from Cosan's controlling company, Cosan Limited. Additionally, Cosan will also offer a warrants issue that would subscribe an additional 0.6 share of Cosan S.A. at a price of BRL16 per share until December 2009, which, together with the BRL880 million from Cosan Limited, could potentially fund the Esso acquisition. An alternate source of liquidity to fund the Esso acquisition could come from a US$500 million stand-by credit facility that Cosan has secured. The negative outlook is based on Cosan's higher leverage (Net Debt to EBITDA of 6.1 times for LTM July08 vs. 2.2 times LTM July07 and 3.8 times for FY 2008, all ratios on a reported basis) combined with an ambitious growth strategy that will demand high capex and lead to continued and potentially more negative free cash flow generation than observed in the past few years. The negative outlook also incorporates the potential integration challenges and uncertainties in Cosan's financial results following the Esso acquisition. Cosan's Ba3 rating outlook could stabilize if the company is able to fund the Esso acquisition with equity and posts at least two quarters of stable operating results post the closing of the Esso acquisition. Conversely, Cosan's rating would likely be downgraded if the company were to face operating or liquidity concerns following the Esso acquisition or if there were signs that due to the company's ambitious growth plan management became overstretched and performed worse than peers. Quantitatively, Cosan's ratings would likely be downgraded if Debt/EBITDA is above 5.5 times pro-forma the Esso acquisition or if CFO/Debt is negative for more than two consecutive quarters (excluding Pesa debt, but adjusting EBITDA and Debt according to Moody's standard definitions and analytic adjustments). Ratings downgraded: -- Corporate Family Rating: to Ba3/A3.br from Ba2/A1.br; -- US$36 million Senior Unsecured Notes due October 2009: to Ba3 from Ba2; -- US$450 million Perpetual Senior Unsecured Notes: to Ba3 from Ba2; and -- US$400million Senior Unsecured Notes due 2017: to Ba3 from Ba2 Headquartered in Piracicaba, Brazil, Cosan S.A. Industria e Comercio -- http://www.cosan.com.br/en/ir/-- produces sugar and ethanol. The company cultivates harvests and processes sugarcane, the main raw material for sugar and ethanol manufacturing. With 17 manufacturing units and two port terminals in the city of Santos, Cosan says it is currently the largest individual group in the world in terms of sugarcane byproducts manufacturing. With capacity to grind more than 40 million tons of sugarcane, the group represents 12% of overall production in the mid-southern region of the country. The company is diversifying into fuel distribution in Brazil, with the acquisition of Exxon's fuel distribution assets in the country (6% market share and 1,500 gas stations). GENERAL MOTORS: Diminishing Liquidity Cues Fitch to Junk IDR ------------------------------------------------------------ Fitch Ratings has downgraded the Issuer Default Rating of General Motors by one notch to 'CCC' from 'B-', due to diminishing liquidity and lack of access to capital. In Fitch's previous downgrade, Fitch stated that diminished capacity to refinance short-term maturities, or Fitch projections that GM would drop below US$15 billion in cash could be cause for further downgrades. Fitch believes that GM would reach minimum required levels of available liquidity within the next 12 months without access to external capital. Contributing factors include weakening overseas results and the impact of the credit crisis on GM and GMAC's ability to finance retail sales. Continuing operating losses, restructuring costs and supplier issues will continue to drain cash at least through 2009, and Fitch expects that General Motors could reach minimum required levels of cash within the next 12 months without additional capital. External sources of capital for GM remain limited, indicating that liquidity drains will accelerate through year-end 2008. Although GM's overseas operations remain profitable and growing, the state of the capital markets and the automotive industry severely limit the amount of capital that can be raised against these holdings. Fitch also believes that General Motors will also seek additional cooperation from the UAW in altering the financing structure and timing of the VEBA trust. Fitch believes that this is likely due to the fact that in all scenarios, the UAW's interests are best served by keeping General Motors out of bankruptcy. Fitch believes that the ability of GM to obtain federal financing over the near term is highly probable, although the amount, terms, structure and timing remain uncertain. Fitch's rating action incorporates this expectation, indicating that approval of a federal loan guarantee program is not expected to result in a rating change. In all, Fitch believes that GM will be challenged to raise financing in an amount that exceeds US$10 billion, and will therefore be unable to offset expected liquidity drains over the next 12 months. Although General Motors continues to make dramatic reductions in its cost structure, this progress has not been able to keep pace with the decline in revenues and has led to accelerated operating losses. Fitch expects that losses from operations will extend into 2010, as GM attempts to complete the restructuring of its labor force, manufacturing footprint and product lineup. With the rapid migration of the market to more fuel-efficient vehicles, GM's product lineup will remain misaligned with market demand over the near term. International operations continue to add strength to GM's credit profile, although market weakness in Europe and China are expected to moderate recent operating results. In 2010, the industry could benefit from a rebound in economic conditions and a cyclical trough in industry sales. In particular, sales of pickup trucks, where the U.S. manufacturers continue to dominate the market and reap healthy contribution margins, could benefit from any improvement in the housing market, although pickup truck sales are not expected to reach previous levels. GM will also benefit from the terms of the UAW health care agreement in 2010, and more fully realize the fixed-cost improvements currently being implemented. The recent drop in fuel and other commodity prices will also benefit margins over the near term. However, the company's debt load, and the associated financing costs, will continue to escalate, and will represent a material claim on cash flows going forward, even as GM's earning capacity diminishes. Even in the event of longer term stabilization in negative cash flows, GM is not expected to be in a position to reduce its debt load over the near term, a debt load that is expected to exceed US$50 billion. Fitch also remains concerned about the state of the asset-backed securitization market. In a period of deteriorating performance, a weakening consumer, and highly uncertain capital markets, any limitation on the ability of domestic manufacturers to economically access this market and/or offer competitive retail financing could serve to further ratchet down sales and production volumes, as did the pullback in leasing activity. Fitch downgraded these: General Motors -- IDR to 'CCC' from 'B-'; -- Senior Secured to 'B/RR1' from 'BB-/RR1' -- Senior unsecured debt to 'CCC-/RR5' from 'CCC+/RR5'. General Motors of Canada -- IDR to 'CCC' from 'B-'; -- Senior unsecured debt to 'CCC-/RR5' from 'CCC+/RR5'. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. ========================== C A Y M A N I S L A N D S ========================== AIR ASIA AERO: Deadline for Proof of Claim Filing Is Oct. 1 ----------------------------------------------------------- Air Asia Aero Technology Ltd.'s creditors have until Oct. 1, 2008, to prove their claims to Geoffrey Varga, 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. Air Asia Aero's shareholder decided on Aug. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Geoffrey Varga c/o Kinetic Partners Cayman LLP P.O. Box 10387 APO Harbour Center, Grand Cayman Cayman Islands Contact for inquiries: Camele Burke Tel: (345) 623-9904 Fax: (345) 623-0007 AFFINITY CAPITAL: Sets Final Shareholders Meeting for Oct. 1 ------------------------------------------------------------ Affinity Capital Australia Fund will hold its final shareholders meeting on Oct. 1, 2008, at 10:00 a.m., at the offices of Deloitte, Fourth Floor, Citrus Grove, P.O. Box 1787, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Affinity Capital's shareholders agreed on July 3, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Stuart K. Sybersma and Ian A.N. Wight Attn: Jessica Turnbull c/o Deloitte P.O. Box 1787GT Grand Cayman, Cayman Islands Telephone: (345)949-7500 Fax: (345)949-8258 ASM HOLDINGS: Will Hold Final Shareholders Meeting on Oct. 1 ------------------------------------------------------------ ASM Holdings Ltd. will hold its final shareholders meeting on Oct. 1, 2008, at 10:00 a.m., at the offices of Deloitte, Fourth Floor, Citrus Grove, P.O. Box 1787, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. ASM Holdings' shareholder decided on Aug. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Jonathan Calley c/o Apex Silver Mines Corporation 1700 Lincoln Street, Suite 3050 Denver, Colorado 80203 USA CARRERA LTD: Holding Final Shareholders Meeting on Oct. 1 --------------------------------------------------------- Carrera Ltd. will hold its final shareholders meeting on Oct. 1, 2008, at 10:00 a.m., at 33 Gilliam Lane, Riverside, Connecticut, USA. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) determining the manner in which the books, accounts and documentation of the Company, and of the liquidator should be disposed of. Carrera's shareholder decided on Aug. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Alexander E. Jackson c/o 33 Gilliam Lane, Riverside Connecticut, USA Tel: (212) 359-7322 Fax: (212) 359-7301 CORDILLERAS SILVER: Final Shareholders Meeting Is on Oct. 1 ----------------------------------------------------------- Cordilleras Silver Mines (Cayman) LDC will hold its final shareholders meeting on Oct. 1, 2008, at 10:00 a.m., at the offices of Deloitte, Fourth Floor, Citrus Grove, P.O. Box 1787, George Town, Grand Cayman, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Cordilleras Silver's shareholder decided on Aug. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Jonathan Calley c/o Apex Silver Mines Corporation 1700 Lincoln Street, Suite 3050 Denver, Colorado 80203 USA IXIS REAL ESTATE: Holds Final Shareholders Meeting on Oct. 1 ------------------------------------------------------------ Ixis Real Estate Capital INC NIM 2005-HE1N will hold its final shareholders meeting on Oct. 1, 2008, at 9:30 a.m., at the offices of Wilmington Trust (Cayman) Ltd., 4th Floor, Century Yard, Cricket Square, Elgin Avenue, Grand Cayman, Cayman Islands. The accounting of the wind-up process will be taken up during the meeting. IXIS Real Estate's shareholder decided on July 24, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Andrew Johnson c/o Wilmington Trust (Cayman), Ltd. 4th Floor, Century Yard Cricket Square, Elgin Avenue P.O. Box 32322 Grand Cayman, Cayman Islands Tel: (345) 946-4091 MAEDEC SUPPLY: Surging Costs Prompt Closure of One Restaurant ------------------------------------------------------------- Maedac Supply Company Ltd has closed one of its three restaurants, Maedac Cafe at the Mirco Centre, amid rising prices of fuel, electricity and flour, among other things, Trent Jacobs writes for Cayman Net News. Maedac Supply Manager Morgan DaCosta told Cayman Net News the food and beverage service industry is facing tough times and so are his customers. Mr. DaCosta noted that while he only speaks for his establishment, he is sure that there are many others in the business suffering from the same surging costs. Cayman Net News relates that the current financial market crisis in the U.S. has somehow affected Cayman as the weakening of US dollar against foreign currencies also weakens the Cayman Islands dollar hurting the country's industries including the restaurant trade. According to the news agency, several local eateries are now either up for sale, have changed ownership or have recently gone belly up. Meanwhile, Cayman Net News says Leader of Government Business Hon Kurt Tibbetts, indicated that Cayman�s financial industry is quite sound. Mr. Tibbetts said there could be a tightening of credit standards worldwide and an increase in regulations concerning the amount of credit offered to businesses and individuals, however, "first and foremost, it is important to say that all our consultations indicate that there will not be an impact on the viability of any of our local retail banks in the Cayman Islands." Mr. Tibbetts continued: "The Government is in the process of convening meetings, with appropriate individuals in the financial- services sector, to determine whether any further actions need to be taken in the Cayman Islands to mitigate the turbulence in the world�s financial markets." SI INVESTMENTS: To Hold Final Shareholders Meeting on Oct. 1 ------------------------------------------------------------ SI Investments Ltd. will hold its final shareholders meeting on Oct. 1, 2008, at St. Mary's Court, 20 Hill Street, Douglas, Isle of Man, British Isles. The accounting of the wind-up process will be taken up during the meeting. SI Investments' shareholders agreed on July 9, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidators can be reached at: Jayne Sutcliffe and David McMahon c/o Maples and Calder P.O. Box 309 George Town, Grand Cayman Cayman Islands Telephone: (345)949-8066 Fax: (345)949-8080 SILEX LIMITED: Holding Final Shareholders Meeting on Oct. 1 ----------------------------------------------------------- Silex Ltd. will hold its final shareholders meeting on Oct. 1, 2008, at 10:00 a.m., at the offices of Walkers, Walker House, 87 Mary Street, George Town, Grand Cayman KY1-9002, Cayman Islands. These matters will be taken up during the meeting: 1) accounting of the wind-up process, and 2) authorizing the liquidators of the company to retain the records of the company for a period of five years from the dissolution of the company, after which they may be destroyed. Silex's shareholder decided on Aug. 8, 2008, to place the company into voluntary liquidation under The Companies Law (2004 Revision) of the Cayman Islands. The liquidator can be reached at: Jonathan Calley c/o Apex Silver Mines Corporation 1700 Lincoln Street, Suite 3050 Denver, Colorado 80203 USA ========= C H I L E ========= GLOBAL CROSSING: Names John Kritzmacher as Chief Financial Officer ------------------------------------------------------------------ Global Crossing Ltd. has appointed former Lucent Technologies CFO and current senior Alcatel-Lucent executive John Kritzmacher to the role of executive vice president and chief financial officer. "We are pleased to welcome John to Global Crossing," said Global Crossing's chief executive officer, John Legere. "John's unique combination of financial and telecommunications expertise, global perspective and experience in dynamic organizations brings real value for our customers, shareholders and employees." As chief financial officer at Lucent Technologies, Mr. Kritzmacher managed all traditional financial functions, including strategic financial planning, M&A, financial performance management, treasury, tax, internal audit and investor relations. Before becoming CFO, he rose through a variety of positions with increasing responsibility during his 10 years at the company, including senior vice president and corporate controller, and vice president of planning and business analysis. After playing a senior role in the planning and execution of Lucent's merger with Alcatel, Mr. Kritzmacher became chief operating officer of the Services Business Group at Alcatel- Lucent, a business with approximately US$5 billion in annual revenues. While there, he transformed a diverse suite of existing Alcatel and Lucent service functions into a unified global services organization. Earlier in his career, Mr. Kritzmacher advanced rapidly through a series of roles at Lucent's predecessor, AT&T Network Systems. He earned a BA degree in mathematics and economics at Dartmouth College, and went on to earn an MBA in accounting at New York University Stern School of Business. Mr. Kritzmacher succeeds Jean Mandeville, who served as chief financial officer of Global Crossing since 2004. Jean announced his intention to leave Global Crossing in May 2008; since then, he has remained with the company to complete a smooth transition. Mr. Kritzmacher begins his new role on Oct. 1, 2008, immediately following the Sept. 30, 2008 effective date of Mandeville's resignation. 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. NORSKE SKOG: Lower Liquidity Concerns Cue S&P to Hold BB- Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services has affirmed its 'BB-' long- term corporate credit rating on Norway-based forest product company Norske Skogindustrier ASA (Norske Skog). The 'B' short- term corporate credit rating was affirmed. S&P removed the long- term rating from CreditWatch where it was originally placed with negative implications on April 21, 2008. The outlook is negative. "The rating affirmation reflects our reduced concerns regarding Norske Skog's liquidity, following significant asset disposals in 2008, the largest being the sale of its Korean subsidiary," said S&P's credit analyst Jacob Zachrison. "This has lowered the risks of a covenant breach and provided the group with a cash position allowing Norske Skog to meet near-term debt maturities." The disposals have also had a positive effect on credit measures, following the increase in liquid funds. "The negative outlook reflects Norske Skog's current underperformance compared with financial requirements for the rating," said Mr. Zachrison. "It also remains uncertain to what extent capacity closures can mitigate the negative effects on the global supply/demand balance and ultimately on pricing momentum in a weaker economic environment." Norske Skog's business prospects remain challenging, with continued input-cost pressure and worsening prospects for medium- term demand and pricing. Norske Skog's performance in the first half of 2008 was weak, as expected, but the company managed to contain shrinkage in its covenant headroom, which S&P views as positive. The adjusted EBITDA margin weakened for the 12 months ended June 30, 2008, to about 10.6% from more than 17% in the corresponding period of 2007. S&P expects the company's profitability to recover somewhat in the second half of 2008, however, on the back of good pricing development in the Asian newsprint markets and European magazine paper markets. The European newsprint sector, although positively affected by the recent strengthening of the U.S. dollar, could see additional pressure from U.K. capacity additions, albeit balanced by recent capacity cuts announced by UPM-Kymmene Corp. (BBB-/Negative/A-3). Pressure could also come from an accelerated shift in advertising spending to electronic media. Importantly, demand is softening, and with a bleak European economic outlook, 2009 could see an accelerated decrease in volumes. Norske Skogindustrier ASA -- http://www.norskeskog.com/-- produces and supplies paper and related products to the concerned industry. The company's products are used to make newspapers, telephone directories, inserts, flyers, magazines, catalogs, and books. Its operations are carried out through three segments: Newsprint, Magazine Paper and Other. The Newsprint segment produces news papers, free sheets, telephone directories, catalogues and supplements. The Magazine Paper segment produces uncoated super calendared (SC) and coated lightweight coated (LWC) paper for magazines, catalogues and advertising material. Other activity includes the sale of wood and energy to external parties. Its product lines include newsprint brand Nornews; directory paper brands Bio Bio and Tasman; improved newsprint brands Norbright, Norstar, and NorX; and book paper brand Norbook. Norske Skog, which incorporates recycled paper into some products, operates about 20 paper mills worldwide. It has paper mills in Chile and Brazil. =============== C O L O M B I A =============== GRAN TIERRA: Reports Development Plan for Costayaco Field --------------------------------------------------------- Gran Tierra Energy Inc. has provided details on it's conceptual development plan for the Costayaco field in Colombia. Test results from the recently drilled Costayaco-5 delineation well suggest new oil reserves encountered by the well will require increasing the scale of the full field development, in addition to the reservoir productivity confirmed by the recently tested development well, Costayaco-4. The Costayaco field is located in the Chaza Block in the Putumayo Basin, where Gran Tierra Energy has a 50% working interest and is the operator, with Solana Resources holding the remaining 50% working interest. Gran Tierra Energy announced on July 29, 2008 that the two companies have entered into a definitive agreement providing for the business combination of Gran Tierra Energy Inc. and Solana Resources Limited. The proposed transaction is subject to regulatory, stock exchange, court and shareholder approvals. Costayaco-4 Testing Costayaco-4 is a new deviated well drilled from the Costayaco-2 surface location near the crest of the Costayaco field to a total measured depth of 8,884 feet (true vertical depth of 8,616 feet). The bottom-hole location is approximately 1,775 feet northeast of the surface location. Approximately 77 feet of core was cut in the Caballos and Villeta T reservoirs during drilling for reservoir engineering studies. Gran Tierra Energy conducted a combination of drill stem testing, flow testing and production testing in the two major reservoir sequences, the Caballos Formation and the Villeta T Sandstone. The Caballos Formation was perforated in the intervals 8,610 to 8,652 feet, 8,660 to 8,668 feet, 8,675 to 8,686 feet and 8,694 to 8,728 feet. The company obtained a stabilized gross production rate of 3,042 barrels of oil per day (BOPD) of 29.9 degree API gravity oil with 0.8% watercut with a jet pump. The Villeta T Sandstone was perforated in the intervals 8,463 to 8,472 feet and 8,475 to 8,514 feet. The company obtained a stabilized gross production rate from natural flow of 1,401 BOPD of 30.1 degree API gravity oil with 1.8% watercut through a 92/64 inch choke. Costayaco-5 Testing Costayaco-5 is a new vertical delineation well drilled to a total measured depth of 8,703 feet on the west flank of the Costayaco field approximately 3,450 feet northwest of Costayaco-1. Gran Tierra Energy conducted a combination of drill stem testing and production testing on the two major reservoir sequences, the Caballos Formation and the Villeta T Sandstone. The Middle Caballos Formation was perforated in the intervals 8,519 to 8,544 feet and produced 535 barrels of water per day (BWPD). The Upper Caballos Formation was perforated in the intervals 8,480 to 8,498 feet and 8,502 to 8,504 feet, and produced 20 BOPD with 26.9 degree API gravity and 5% watercut. The Lower Villeta T reservoir was perforated in the intervals 8,376 to 8,381 feet, 8,384 to 8,388 feet and 8,390 to 8,396 feet. The zones produced 600 BWPD with a trace of oil. The Upper Villeta T reservoir was perforated in the intervals 8,336 to 8,348 feet and 8,350 to 8,360 feet. These zones produced a gross 1,152 BOPD with 29.5 degree API gravity and 1.2% water cut with a jet pump. These results are the first identification of the water leg in the Villeta T reservoirs in the Costayaco Field. The depth of the oil-water contact is poorly defined but is interpreted to be located at approximately 8,375 feet (-7,090 feet sub-sea). The recently reported Costayaco mid-year reserve update did not incorporate potential oil at the Costayaco-5 location as this well was drilled outside the control provided by previously drilled Costayaco wells. In addition, the reservoirs were encountered approximately 80 feet shallower than prognosis, suggesting the west flank of the Costayaco field is shallower and encompasses a broader area with more reserve potential than previously mapped. Costayaco Field Conceptual Development Plan The positive well test results at Costayaco-5 further extends the field's western boundary and is expected to add proved, probable, and possible reserves to the Costayaco Field. The recent mid-year Costayaco reserves update reported proved, proved plus probable, and proved plus probable plus possible gross reserves of 20.54 million barrels of oil (MMBO), 34.91 MMBO and 61.38 MMBO respectively, excluding any new reserve potential associated with Costayaco-5 results. The base case conceptual field development prepared prior to drilling of Costayaco-5 included 50 MMBO of gross reserves for the Costayaco Field with a plateau production rate of 35,000 BOPD gross beginning in the first quarter of 2010. For full field development of this case, approximately fifteen oil producer and five water injector wells would be required, in addition to a new pipeline from Uchupayaco to Orito stations and associated facilities. With the new additional reserve potential, the option to increase the plateau rate with additional drilling and infrastructure upgrades is being evaluated. Gran Tierra Energy is in the process of updating the Costayaco Development Plan with the latest data from the Costayaco-5 delineation well. The company will submit a revised Costayaco Development Plan, with all data available at the time, to the National Hydrocarbon Agency for approval in March 2009. Additional Drilling The drilling of Costayaco-6 and Costayaco-7 remain on the 2008 drilling program, with a continuous delineation and development drilling campaign in the Costayaco field continuing through 2009. The details of the 2009 program will be finalized in the fourth quarter of 2008. Infrastructure An 8 inch, 10 kilometer pipeline from the Costayaco field to the Uchupayaco Station on the existing pipeline system was completed on July 29, 2008 and is currently transporting approximately 9,000 barrels of oil per day. This new pipeline has capacity of 25,000 BOPD. Initial throughput will be constrained due to facility capacity limitations further downstream in the existing pipeline system. Gran Tierra Energy is developing options to increase production utilizing trucks to by-pass infrastructure constraints and expects gross Costayaco field production to rise to approximately 15,000 BOPD by year-end 2008. Additional production growth in 2009 will occur as a result of increased trucking utilization. In addition, production capacity in new development wells will grow while the new Uchupayaco to Orito pipeline infrastructure is built. Commenting on the drilling and testing progress, Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy Inc., stated, "These are outstanding results from Costayaco-5. The successful testing of oil from this well should add to the total reserve potential of the Costayaco field, which has already grown significantly in size as delineation drilling has shown in the first half of 2008. With new reservoir information and additional reserve additions being identified, Gran Tierra Energy is making significant progress in developing a full field development plan and defining associated infrastructure requirements." About Gran Tierra Energy Headquartered in Calgary, Alberta, Canada, Gran Tierra Energy Inc. (OTC BB: GTRE.OB) -- http://www.grantierra.com/-- is an international oil and gas exploration and production company, incorporated and traded in the United States and operating in South America. The company holds interests in producing and prospective properties in Argentina, Colombia and Peru. At Dec. 31, 2007, the company's balance sheet showed total assets of US$112.79 million, total long term liabilities of US$36 million and total shareholders' equity of US$76.79 million. Successive Net Losses As reported in the Troubled Company Reporter on Jan. 4, 2008, the company disclosed in the regulatory filing that it "has a history of net losses." The company said it expects to incur substantial expenditures to further its capital investment programs and the company's existing cash balance and cash flow from operating activities may not be sufficient to satisfy its current obligations and meet its capital investment commitments. According to the company, its ability to continue as a going concern is dependent upon obtaining the necessary financing to acquire, explore and develop oil and natural gas interests and generate profitable operations from its oil and natural gas interests in the future. ================== C O S T A R I C A ================== BANCO BAC: S&P's BB/B Ratings Reflect Dollarized Balance Sheet -------------------------------------------------------------- Standard & Poor's Rating Services has affirmed its 'BB/B' foreign currency and its 'BB+/B' local currency counterparty credit ratings on Banco BAC San Jose S.A. The outlook is stable. The ratings on BAC San Jose reflect its dollarized balance sheet and expanding lending activities in a small economy, the challenges imposed by a market in which commercial public banks have a 50% penetration, and a pressured capital ratio. The ratings are supported by good financial performance, low delinquency levels, adequate liquidity, and the benefits from the ownership by one of the most important financial institutions in Central America, BAC International Bank Inc. (BBB/Stable/A-2). Despite the loan portfolio's good performance, BAC San Jose is highly exposed to foreign exchange movements because approximately 50% of its loan portfolio is dollar-denominated, and it is not all related to net dollar generators. Since the 2007 exchange regime in Costa Rica is driving the economy toward free trade, there might be an impact on results, with larger volatility especially through treasury income. S&P believes that despite this change of regime, the country's operating dynamics and competition will still provide impetus for credit in dollars. Competition is strong, and comes mainly from public banks with more than half of market share. Liquidity and funding are satisfactory. BAC San Jose's liquidity is supported by an ample and stable deposit base that represents 75% of total liability. The ratio of loans to deposit is slightly above 1.0, but S&P expects it to return to below 1.0 as assets growth goes slower. S&P also considers that the bank would be supported by British Virgin Islands-based Credomatic International Corp. (BBB/Stable/A- 2). Capitalization is adjusted even after a US$10 million capital injection during the second quarter of 2008. S&P expects capital ratios to be pressured due to possible volatility of foreign exchange income. The group displays strong financial ratios across the board. Thanks to tight risk management, nonperforming loan ratios have been kept under control and stood below 1% on June 30, 2008. When considering charge offs, the restructured ratio reached a little bit more than 1% by June 2008. S&P expects profitability to be stable, with return on assets close to 2.5% despite foreseeable higher funding costs due to a liquidity squeeze on a global basis. Profitability is supported by BAC San Jose's business mix and relatively low funding costs. S&P expects competition from large public banks and global banks to add pressure to interest margins. The ownership of BAC International Bank Inc. and Credomatic International Corp. (BBB/Stable/A-2) provides BAC San Jose with access to a common brand and regional presence, increasing its position in the growing retail sector in Costa Rica, mainly in the high-end mortgage loans and credit cards segments. This is a definite competitive advantage, given the increasing and tougher competition in Central America. S&P expects BAC San Jose to continue benefiting from its current ownership structure. The stable outlook reflects BAC San Jose's commercial position in Costa Rica and its adequate financial profile, which could support it through probable inflation pressure. If the bank's performance deteriorates, especially liquidity, or if there is a negative rating action on the sovereign ratings on the Republic of Costa Rica, the rating on the bank could be pressured. Costa Rica-based Banco BAC San Jose, created in 1968, is a wholly owned unit of financial group Corporacion Tenedora BAC San Jose aka Grupo Financiero BAC San Jose. ============= E C U A D O R ============= * ECUADOR: Eyes Oil Output to Boost 511,408 bpd by Next Year ------------------------------------------------------------ EFE News Services reports that the Ecuadorian government announced an increase in national oil production to 511,408 barrels per day during 2009, compared with the 499,596 bpd it expects to produce this year. Citing Mines and Petroleum Minister Galo Chiriboga, EFE News relates that the jump in crude production, which will reach an annual total of 186.7 million barrels in 2009, will be achieved thanks to the investment made by state-owned Petroecuador and the contribution of private companies operating in the country. There will be a 2.3% increase in production compared with 2008, and will be achieved by the recuperation of 90 oil wells that are currently shut down and the drilling of another 59 wells, among other measures, Mr. Chiriboga disclosed, as cited by EFE News. Mr. Chiriboga added that production is expected to reach 565,000 bpd by 2010, EFE News states. With regard to the outlook on the price of crude in 2009, the minister said the decision was taken to cut production to "stabilize prices," adding that there are two main factors that bode well for price stability: -- Organization of Petroleum Exporting Countries's decision to reduce production and -- the oncoming Northern Hemisphere winter, which wil boost demand. The price of crude next year is expected to reach an annual average of US$123 per barrel in the case of West Texas Intermediate, the benchmark for Ecuadorian oil, EFE News says, citing Mr. Chiriboga, who based his remarks on OPEC studies. * * * As reported in the Troubled Company Reporter-Latin America on March 25, 2008, Moody's Investors Service upgraded Ecuador's foreign currency government bond rating, foreign currency bank deposit ceiling and foreign currency country bond ceilings to B3 from Caa2. Moody's said the outlook on all the ratings is stable. In December 2007, Standard & Poor's Ratings Services assigned a B- long-term sovereign local and foreign currency ratings and C short-term sovereign local and foreign currency ratings on Ecuador. =========== G U Y A N A =========== * GUYANA: To Fine Chinese Import/Export Sugar Firm for US$5 Mil. ---------------------------------------------------------------- The government of Guyana is planning to fine Chinese firm, China National Technology Import and Export Corporation (CNTIC) for the delay in the construction of Skeldon Sugar Factory, various reports say. Agriculture Minister Robert Persaud stated he will impose at least a US$5 million fine against CNTIC, Kaieteur News and Trinidad & Tobago Express relate. CNTIC was contracted to build the US$181 million sugar factory but there were problems in the construction and machinery, Kaieteur News reports. CNTIC Site Representative, Andrew Jin said in a press briefing that the sugar factory has problems with the punt dumper, conveyor belt, shredder bearings and a "choking" concern when fresh water is pumped to the diffuser, second evaporators and third evaporators. Guyana Sugar Corporation (GuySuCo) chief executive officer, Nick Jackson, said that the problems being experienced at the Skeldon Sugar Factory have been blown out of proportion, BBC Monitoring and Kaieteur News report. Mr. Jackson also said that sugar canes have been promptly delivered as requested by CNTIC negating the Chinese company's claim that it did not have adequate amount of cane to run tests. TFC Commodity Charts relahs that the Skeldon factory, built at a cost of nearly US$110m dollars, will have a capacity of producing more than 110,000 tonnes of sugar annually. ============= J A M A I C A ============= AIR JAMAICA: To Select New Chief Executive Officer on Oct. 1 ------------------------------------------------------------ The Board of Directors at Air Jamaica will select a new chief executive officer by Oct. 1, 2008, after Edward Weigel has turned down the position, Radio Jamaica reports. As reported in the Troubled Company Reporter-Latin America on Sept. 22, 2008, Air Jamaica's Board is considering selecting another CEO after confirming to RJR News that Mr. Weigel, will not take the post, Radio Jamaica reports. Radio Jamaica quoted Chairperson, Shirley Williams as saying that the airline is in talks with two foreigners as candidates for the post. Ms. Williams added that the new candidates are persons with years of experience in the airline industry, the report says. 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. JAMAICA PRODUCERS: Halts Export Production of Bananas ----------------------------------------------------- Jamaica Producers Group Limited (JP) has ceased the production of bananas for export to the United Kingdom following the dilapidation of its banana farms by Tropical Storm Gustav, The Jamaica Observer reports. The move directly affects 460 employees at Eastern Banana Estates (EBEL) in St Thomas. The Group says it recently made significant investment in rebuilding its banana farms after being destroyed by four strong hurricanes, however, due to the frequency of hurricanes that hit Jamaica, it won't re-invest in export production of bananas anymore. Prior to Gustav, JP's banana plantation was ravaged by Hurricane Ivan in 2004, Hurricanes Dennis and Emily in 2005 and Hurricane Dean in 2007. The company, meanwhile, will continue to produce bananas for the local market and banana based snacks for the local and international markets. The Observer relates that the damage to the banana sector is still being assessed, but most of the losses will be absorbed by JP, which controls over 80% of the industry. According to The Observer, for the six months ended June 14, 2008, JP's Banana Division, which is comprised of banana production and sales in Jamaica and Honduras, plus the manufacturing and sale of banana chips, recorded a loss of US$136.9 million, significantly more than the US$15.7 million it lost last year. Revenues of US$538.2 million over the period under review represented a 55% decline, the report notes. Headquartered in Kingston, Jamaica, Jamaica Producers Group Limited -- http://www.jpjamaica.com/-- is engaged in juice and food manufacturing and distribution, the cultivation, marketing and distribution of bananas locally and overseas, shipping and the holding of investments. The Company is organized into three business segments: Banana Division, which comprises the growing, sourcing, ripening, marketing and distribution of bananas, and the operation of a shipping line that inter alia transports bananas to the United Kingdom; Fresh & Processed Foods Division, which comprises the production and marketing of fresh juices, drinks, and other freshly prepared foods and tropical snacks, and Corporate segment. The Fresh & Processed Foods Division consists of the Company�s prepared foods businesses in juice, smoothies, desserts, soups and ready meals, chilled distribution and tropical snack foods. =========== M E X I C O =========== BLUE WATER: Court Approves US$1.6 Mil. Sale of Burlington Assets ---------------------------------------------------------------- Blue Water Automotive Systems Inc. and its debtor-affiliates sought and obtained authority from the U.S. Bankruptcy Court for the Eastern District of Michigan to sell certain equipment at their Burlington, North Carolina plant to Central Carolina Products, Inc., free and clear of liens for US$1,600,000. The Debtors are directed to turn over the net proceeds of the Burlington Sale to CIT Group/Equipment Financing Inc., at the closing of the Sale. CIT Equipment holds a first-priority lien to the Equipment. Nicole Y. Lamb-Hale, Esq., at Foley & Lardner LLP, in Detroit, Michigan, says the Burlington Sale would allow the Debtors to liquidate the value of the Equipment to apply the net proceeds toward their secured debts. Prior to the hearing on the request, Infor Global Solutions and Michael P. Angelini, trustee of the Carlos Baranano Revocable Trust, asked the Court to modify certain terms of the Burlington Sale Order to accommodate their concerns. Mr. Angelini raised its concerns regarding the need to monitor the leasehold during the actual removal of the Equipment lest fixtures not owned by the Debtors may be included in the removal. At Mr. Angelini's request, the Court directed the Debtors to provide a written notice Mr. Angelini three days prior to the scheduled removal of the Equipment from the Burlington Leasehold. Also, at Infor's request, the Court ruled that Central Carolina will not use the Infor Software located at the Burlington Plant without obtaining a license for use from Infor. Otherwise, Central Carolina will remove, return and destroy all copies of the Infor Software from the purchased computers, with proofs of the action delivered to Infor. About Blue Water Automotive Blue Water Automotive Systems, Inc. designs and manufactures engineered thermoplastic components and assemblies for the automotive industry. The company's product categories include airflow management, full interior trim/sub-systems, functional plastic components, and value-added assemblies. They are supported by full-service design, program management, manufacturing and tooling capabilities. With more than 1,400 employees, Blue Water operates eight manufacturing and product development facilities and has annual revenues of approximately US$200 million. The company's headquarters and technology center is located in Marysville, Mich. The company has operations in Mexico. In 2005, KPS Special Situations Fund II, L.P., and KPS Special Situations Fund II(A), L.P., acquired Blue Water Automotive through a stock purchase transaction. In 2006, the company acquired the automotive assets and operations of Injectronics, Inc., a manufacturer of thermoplastic injection molded components and assemblies. KPS then set about reorganizing the company. The company implemented a program to improve operating performance and address its liquidity issues. During 2007, the company replaced senior management, closed two facilities, and reduced overhead spending by one third. Blue Water Automotive and four affiliates filed for chapter 11 bankruptcy protection Feb. 12, 2008, before the United States Bankruptcy Court Eastern District of Michigan (Detroit) (Case No. 08-43196). Judy O'Neill, Esq., and Frank DiCastri, Esq., at Foley & Lardner, LLP, serve as the Debtors' bankruptcy counsel. Administar Services Group LLC acts as the Debtors' claims, noticing, and balloting agent. As of June 30, 2008, the Debtors' unaudited balance sheet showed US$93,264,863 in total assets and US$108,300,898 in total liabilities. The Debtors filed their Liquidation Plan on May 9, 2008. The Plan contemplates a sale of substantially all of the Debtors' assets and equity interests, except for a piece of real property located at Yankee Road, in St. Clair, Michigan. (Blue Water Automotive Bankruptcy News, Issue No. 29, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) FLOWSERVE CORP: Expands Power Generation in Two Power Stations -------------------------------------------------------------- Flowserve Corporation is expanding its presence in the Latin America power generation industry by supplying pumps to Maire Tecnimont Group (Italy), one of the major European Engineering Contractors with a leading position in the regional market of power generation. The orders refer to two power stations located in Chile: Bocamina II for Endesa, and Puerto Coronel for Colbun. �These orders demonstrates Flowserve�s commitment to the Latin America market, and reflects the strength of our pump offerings for the global power industry,� said Tom Ferguson, Flowserve Pump Division President. �We are very pleased that the depth of our product portfolio and the sales and service provided by our global team enabled us to support this project.� The order represents part of a drive in Chile to increase power generation capacity dramatically in order to sustain economic growth. Both plants feature single reheat, coal-fired boilers and will generate electricity for local domestic and industrial use. Each plant has an output in excess of 350MW. �Given the well known need for increased electric power across the globe, Flowserve is well positioned to substantially grow its power market installed base in the future,� said Lewis Kling, Flowserve President and Chief Executive Officer. With an installed global base of more than one million pumps, the Flowserve Pump Division has sales offices, service centers and manufacturing facilities throughout the world. Flowserve�s Latin American facilities can provide best-in-class service to the two power stations to ensure a rapid delivery of pumps, parts and technical support to minimize equipment or plant downtime. The order was booked in a previous quarter in 2008. Headquartered in Irving, Texas, Flowserve Corp. (NYSE: FLS) -- http://www.flowserve.com/-- provides fluid motion and control products and services. Operating in 55 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. The company has subsidiaries in Argentina, Netherlands, China, Mexico, France, Brazil and Japan, among others. * * * As reported in the Troubled Company Reporter-Latin America on April 16, 2008, Fitch Ratings affirmed Flowserve Corp.'s Issuer Default Rating and senior secured bank facilities at 'BB' and revised the Rating Outlook to Positive from Stable. KRISPY KREME: Posts US$1.9 Million Net Loss in Qtr. Ended August 3 ------------------------------------------------------------------ Krispy Kreme Doughnuts, Inc., reported that for the second quarter of fiscal 2009, ended August 3, 2008, it incurred a net loss US$1.9 million, compared to a net loss of US$27.0 million in the second quarter last year. While a number of factors affected results for the quarter compared to the second quarter of last year, the largest single factor was that results for the second quarter of last year included impairment charges and lease termination costs of US$22.1 million. Total revenues for the second quarter decreased 9.5% to US$94.2 million compared to US$104.1 million in the second quarter last year. The decline in revenues reflects decreases in Company Stores and KK Supply Chain revenues, partially offset by an increase in Franchise revenues. Company Stores revenues decreased 13.5% to US$65.1 million. Within this segment, on-premises revenues fell 10.5% in total -- 4.1% on a same-store basis -- and off-premises revenues fell 15.7% compared to the second quarter last year. KK Supply Chain revenues declined 5.1% to US$22.5 million, and Franchise revenues rose 30.1% to US$6.6 million. As of August 3, 2008, the company's consolidated balance sheet reflected cash and debt of approximately US$33.2 million and US$75.4 million. The company's total assets reach US$208,617,000 while total shareholders' equity is US$63,719,000. During the second quarter of fiscal 2009, 31 new Krispy Kreme stores, comprised of five factory stores and 26 satellites, were opened systemwide, and seven stores, comprised of five factory stores and two satellites, were closed systemwide. This brings the total number of stores systemwide at quarter end to 494, consisting of 286 factory stores and 208 satellites. The net increase of 24 stores in the quarter reflects a net increase of 29 international stores and a net decrease of five domestic stores. All 31 new stores were opened by franchisees. Approximately 80% of total stores are operated by franchisees, and over half are located outside the United States. Second quarter systemwide sales increased 3.9% from the second quarter of last year. The growth in systemwide sales was entirely attributable to growth in sales by international franchisees; the domestic component of systemwide sales fell in the second quarter compared to the second quarter last year, principally due to store closures over the past 12 months. "We are not satisfied with our financial results for the second quarter," said Jim Morgan, Chairman, President and Chief Executive Officer. "Some of the shortfall was due to external factors, but we must move forward on implementing our key strategic initiatives in order to achieve the positive long-term results we believe are possible." Those initiatives are: * Building new small retail concept shops in select company markets to bring our signature doughnuts closer to consumers and to establish the economics of the domestic hub-and-spoke model; * Bringing intense focus to the basics of shop operations to improve both the consumer experience and our financial results; * Developing, testing and deploying new menu offerings to give consumers more reasons to visit Krispy Kreme; * Improving how we do business in the off-premises channel, which has particular revenue and cost pressures; * Building on our successes in international franchise development, to which we are devoting additional resources; * Enhancing franchisee operational support both domestically and internationally; and * Providing increased Supply Chain support to an increasingly global business and improving franchisee service levels and economics. "A weakening economy, combined with rising fuel and agricultural commodity prices adversely affected us in the quarter," Mr. Morgan continued, "but it's our task to operate successfully no matter the headwinds. Although our near term results may continue to be uneven, we have talented and dedicated employees who are working hard to implement the further improvements necessary for us to be successful for the long term." Many factors could adversely affect the company's business. In particular, the company is vulnerable to further increases in the cost of raw materials and fuel, which could adversely affect the company's operating results and cash flows. In addition, several franchisees have been experiencing financial pressures which, in certain instances, have become exacerbated in recent quarters. Royalty revenues and most of KK Supply Chain revenues are directly related to sales by franchise stores and, accordingly, the success of franchisees' operations has a direct effect on the company's revenues, results of operations and cash flows. Systemwide sales, a non-GAAP financial measure, include sales by both company and franchise stores. The company believes systemwide sales data are useful in assessing the overall performance of the Krispy Kreme brand and, ultimately, the performance of the company. The company's consolidated financial statements include sales by company stores, sales to franchisees by the KK Supply Chain business segment and royalties and fees received from franchisees, but exclude sales by franchise stores to their customers. The company has guaranteed certain loans and leases from third- party financial institutions on behalf of Equity Method Franchisees, primarily to assist the franchisees in obtaining third-party financing. The loans are collateralized by certain assets of the franchisee, generally the Krispy Kreme store and related equipment. The company's contingent liabilities related to these guarantees totaled US$13.3 million and US$17.5 million at August 3 and February 3, 2008. These guarantees require payment from the company in the event of default on payment by the respective debtor and, if the debtor defaults, the company may be required to pay amounts outstanding under the related agreements in addition to the principal amount guaranteed, including accrued interest and related fees. At the time the guarantees were issued, the company determined the fair value of the guarantees was immaterial and, accordingly, no amount was reflected for the liabilities in the consolidated balance sheet. The aggregate recorded liability for loan and lease guarantees totaled US$3.2 million as of August 3, 2008, and is included in accrued liabilities in the accompanying consolidated balance sheet. One of the company's lenders had issued letters of credit on behalf of the company totaling US$18.2 million at August 3, 2008, the substantial majority of which secure the company's reimbursement obligations to insurers under the company's self- insurance arrangements. A full-text copy of Krispy Kreme's Form 10-Q is available for free at http://researcharchives.com/t/s?324c About Krispy Kreme Headquartered in Winston-Salem, North Carolina, Krispy Kreme Doughnuts Inc. (NYSE: KKD) -- http://www.KrispyKreme.com/-- is a retailer and wholesaler of doughnuts. The company's principal business, which began in 1937, is owning and franchising Krispy Kreme doughnut stores where over 20 varieties of doughnuts are made, sold and distributed and where a broad array of coffees and other beverages are offered. As of August 3, 2008, there were 494 Krispy Kreme stores operated systemwide in the United States, Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico, the Philippines, Puerto Rico, Qatar, Saudi Arabia, South Korea, the United Arab Emirates and the United Kingdom, of which 100 were owned by the company and 394 were owned by franchisees. Of the 494 stores, 286 were factory stores and 208 were satellites; 234 stores were located in the United States and 260 were located in other countries. * * * Standard & Poor's placed Krispy Kreme Doughnuts Inc.'s long term foreign and local issuer credit ratings at 'B-' in September 2007. The ratings still hold to date with a negative outlook. SANLUIS CORPORACION: Fitch Cuts Foreign & Local Currency IDRs ------------------------------------------------------------- Fitch Ratings has downgraded SANLUIS Corporacion, S.A. de C.V. ratings as: -- Foreign and local currency Issuer Default Rating to 'CC' from 'B-'; -- Senior secured restructured credit facility rating to 'CC/RR5' from 'B-/RR4'; -- Mandatory convertible notes and debenture notes ratings to 'CC/RR6' from 'CCC+/RR5'. The ratings remain on Rating Watch Negative. The ratings of SANLUIS were placed on Rating Watch Negative on June 16, 2008, reflecting the company's weak liquidity position and the growing concern that cash-on-hand plus cash flow generation throughout the year would not be sufficient to amortize scheduled debt in 2008 assuming a downside case. At that time, the agency had expected that a continuing performance deterioration in 2008 due to American Axle strike coupled with further announcements of future production cuts by OEMs and change in consumer preference would complicate the company's ability to refinance its debt. Management had expected 2008 full year EBITDA to come in at around US$60 million versus last 12 months EBITDA at the end of March of US$70 million and US$76.7 million at the end of December 2007. However, further deterioration has caused the company to revise its full year EBITDA projections to between US$40 million and US$45 million. To address the deterioration in the company's cash flow generation, SANLUIS began negotiating with its senior secured lenders to reschedule all remaining amortization payments but not the final maturity, which is likely to remain June 2010. On Sept. 15, 2008, the company announced that it had entered into a 30 day Standstill period with its lenders, which froze the September amortization payment. During the 30 day Standstill the company expects to reach an agreement with its lenders to amend the scheduled amortization payments in order to reduce cash flow pressures and allow the company to weather the current difficult market situation. Fitch views the Standstill agreement as a positive sign that SANLUIS lenders are willing to negotiate and that a final agreement to be reached within the 30 day period is probable. The finalization of the rescheduling agreement would also be viewed as a positive step in order for SANLUIS to remain a going concern and to allow management to concentrate on addressing the changes in its industry. However, the much lower revised EBITDA expectation for 2008, the probability of higher interest rate costs and Fitch's expectation of further deterioration in North America auto industry has caused SANLUIS risk profile to worsen. Consequently, Fitch believes refinancing risk in 2010 remains high. The Rating Watch Negative reflects the pending negotiations between SANLUIS and its senior secured restructured credit facility lenders. Further downgrades are possible if the company is unable to achieve a viable payment rescheduling amendment of its facility or depending on the structure of the rescheduling. The Rating Watch Negative could be removed if the company is able to reach a viable agreement with its lenders. SANLUIS is the world's largest producer of leaf springs, where it is the predominant or sole supplier for the top-selling brands and produce substantially all of GM's, Ford's and Chrysler's leaf spring requirements. The company operates manufacturing facilities in the United States, Mexico, and Brazil. =========== P A N A M A =========== GLOBAL CROSSING: Resolves Patent Suit Filed by C2 Technologies -------------------------------------------------------------- Global Crossing Ltd., together with Qwest Communications International Inc., and Level 3 Communications Inc., settled a lawsuit by C2 Global Technologies Inc., which accused them of violating a patent related to a computer network and Internet telephones, Bloomberg News reports. Terms of the settlement were filed under seal, according to the electronic federal court docket in Marshall, Texas, where the trial had started last week, Bloomberg News says. According to the report, Pittsburgh-based C2, claimed the Voice Over Internet Protocol, or VoIP, systems used by the companies infringe the patent and was seeking royalties on any sales or services dating back to 2001. 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. * * * As of June 30, 2008, the company reported US$2.65 billion in total assets, US$2.80 billion in total liabilities, and US$150 million in 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. ==================== P U E R T O R I C O ==================== ROYAL CARIBBEAN: Taps Dr. Arthur Diskin as Chief Medical Officer ---------------------------------------------------------------- Royal Caribbean Cruises Ltd. has named Dr. Arthur L. Diskin as its vice president and global chief medical officer for its Medical and Public Health Department. In his position, which is new to the company, Dr. Diskin is responsible for managing the medical facilities and staff that provide daily care for the company's guests, as well as the medical care of more than 40,000 crew members. This includes the company's new Crew Wellness Program and the management of all public health issues, working in coordination with the U.S. Centers for Disease Control and Prevention. Dr. Diskin also oversees the company's Guest Care Team, which provides one-on-one assistance to guests and their families involved in medial or other emergencies. "We are delighted to have Art join our team," said Royal Caribbean'a senior vice president of Safety, Security, Environment, Medical and Public Health, Gary M. Bald. "Art is a pioneer in the field of cruise ship medicine. His expertise and experience in emergency medicine and medical services onboard cruise ships will be an invaluable asset to our company. We look forward to his assistance with one of our top priorities, the health and wellbeing of our guests and crew members." Dr. Diskin attended college and medical school at the University of Miami, and completed his residency in Emergency Medicine at the Los Angeles County Medical Center/University of Southern California. He is Board Certified by the American Board of Emergency Medicine and is a Fellow of the American College of Emergency Physicians. Dr. Diskin is the past president of the Florida College of Emergency Physicians, former Chief of the Department of Emergency Medicine at the University of Miami Jackson Memorial Hospital and Chair of the Section on Cruise Ship and Maritime Medicine of the American College of Emergency Physicians. Dr. Diskin assisted in creating the Emergency Medicine Residency Program at Mount Sinai Medical Center. This program, affiliated with Nova Southeastern School of Medicine, is currently one of only seven Emergency Medicine residency programs in Florida. Dr. Diskin was a consultant to Carnival Cruise Lines since 1990, most recently serving as Medical Director. In that role he was responsible for guest and crew care, medical facilities and staff, developing medical, evacuation and disaster management policies and advising the ships' physicians. He also has served as a physician onboard cruise ships since the 1980s. Headquartered in Miami, Royal Caribbean Cruises Ltd. (NYSE: RCL) -- http://www.royalcaribbean.com/-- is a global cruise vacation company that operates Royal Caribbean International, Celebrity Cruises and Pullmantur Cruises, Azamara Cruises and CDF Croisieres de France. The company has a combined total of 35 ships in service and seven under construction. It also offers unique land-tour vacations in Alaska, Australia, China, Canada, Europe, Latin America and New Zealand. The company has operations in Puerto Rico. * * * As reported in the Troubled Company Reporter-Latin America on April 8, 2008, Standard & Poor's Ratings Services lowered the corporate credit rating on Royal Caribbean Cruises Ltd. to 'BB+' from 'BBB-'. S&P said the rating outlook is stable. ZAP IMPORT: U.S. Trustee Sets 341(a) Meeting for October 10 ----------------------------------------------------------- The United States Trustee for the District of Puerto Rico will convene a meeting of creditors of Zap Import & Export Corp. at 9:00 a.m., on Oct. 10, 2008, at 341 Meeting Room, Ochoa Building, Tanca Street, in San Juan, Puerto Rico. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Based in San Juan, Puerto Rico, Zap Import & Export Corp. imports and exports motor vehicle supplies and new parts. The company filed for Chapter 11 protection on Sept. 3, 2008 (Bankr. D. P.R. Case No. 08-05799). Winston Vidal Gambaro, Esq., represents the Debtor. ZAP IMPORT: Court Approves Winston Vidal as Bankruptcy Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico authorized Zap Import & Export Corp. to employ the Law Office of Winston Vidal as its bankruptcy counsel. The Debtor has retained the services of the firm since it is not sufficiently familiar with the law to be able to plan and conduct the proceedings without legal counsel. A US$3,000 retainer advanced by the Debtor, will be billed on a basis of US$175 per hour plus expenses for work performed or to be performed by the law firm. To the best of the Debtors' knowledge, the firm is a "disinterested person" as defined in the U.S. Bankruptcy Code. Based in San Juan, Puerto Rico, Zap Import & Export Corp. imports and exports motor vehicle supplies and new parts. The company filed for Chapter 11 protection on Sept. 3, 2008 (Bankr. D. P.R. Case No. 08-05799). Winston Vidal Gambaro, Esq., represents the Debtor. ZAP IMPORT: Files Schedules of Assets and Liabilities ----------------------------------------------------- Zap Import & Export Corp. delivered to the United States Bankruptcy Court for the District of Puerto Rico its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ---------- ----------- A. Real Property US$9,430,000 B. Personal Property US$1,626,928 C. Property Claimed as Exempt D. Creditors Holding US$10,304,217 Secured Claims E. Creditors Holding US$65,446 Unsecured Priority Claims F. Creditors Holding US$791,463 Unsecured Nonpriority Claims ----------- ----------- TOTAL US$11,056,928 US$11,161,127 Based in San Juan, Puerto Rico, Zap Import & Export Corp. imports and exports motor vehicle supplies and new parts. The company filed for Chapter 11 protection on Sept. 3, 2008 (Bankr. D. P.R. Case No. 08-05799). Winston Vidal Gambaro, Esq., represents the Debtor. ================= V E N E Z U E L A ================= * VENEZUELA: Mulls Building of Three Refineries in China -------------------------------------------------------- Venezuelan President Hugo Chavez is planning to build three joint- venture refineries in China to process Venezuelan crude, and operate a joint tanker fleet, Reuters reports. Mr. Chavez, Reuters says, has always reiterated his desire to sell more oil to China. A self-styled revolutionary and florid critic of Washington, Mr. Chavez wanted to reduce his nation's traditional reliance on energy markets in the United States. China's big energy appetite and Communist Party government make it an attractive alternative, Reuters adds. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 23, 2008, Moody's Investors Service placed Venezuela's low-B foreign currency ratings on review for possible upgrade. Moody's said the outlook remains stable for the government's B1 local currency debt rating. The TCR-LA reported on May 9, 2008, Fitch Ratings assigned 'BB-' long-term foreign currency issuer default ratings to the Bolivarian Republic of Venezuela's international bond combined offer -- 15-year, US$2 billion Eurobond (9% coupon) and 20-year, US$2 billion Eurobond (9.25% coupon). The ratings are in line with Venezuela's foreign currency issuer default rating. Fitch said the rating outlook is negative. * Carmax in Struggling Used Vehicle Market, Investment Firm Says ---------------------------------------------------------------- CarMax Inc. continues to face a difficult used vehicle environment, largely due to aggressive incentives being offered by new vehicle manufacturers, according to Zacks Investment Research. However, Zacks says CarMax is aggressively cutting prices on trucks and SUVs to reduce inventory and shifting its focus to passenger cars. The investment firm rated CarMax's stock "Hold" stating that the company's move into new markets and growth in existing markets are likely to strengthen volumes. As of Sept. 23, shares of CarMax are trading at 38.0x Zacks' fiscal 2009 EPS estimate of US$0.40, which is at a significant premium to the industry median of 12.9x. Headquartered in Richmond, Virginia, CarMax Inc. operates as a specialty retailer of used vehicles (96% of sales) such as cars and light trucks as well as new vehicles (4% of sales). * Moody's Sees Negative Outlook for Global Pharmaceutical Sector ---------------------------------------------------------------- Moody's Investors Service commented that the outlook for the global pharmaceutical sector is negative. This outlook expresses Moody's expectations for the fundamental credit conditions in the industry over the next 12 to 18 months. Moody's view reflects significant patent expirations in the years 2010 through 2013, a tougher regulatory climate resulting in a slower rate of new product approvals, as well as global cost containment efforts that may target pharmaceutical pricing or access. In addition, event risk related to product safety, patent challenges from generic manufacturers and other litigation issues remains somewhat high. Moody's anticipates that global consolidation is likely to continue, pressuring credit ratings for companies that opt to substantially increase financial leverage to pursue acquisitions. Moody's expects continued global interest in the acquisition of U.S.-based drug companies, as well as further investment in emerging market economies. In spite of business development strategies, Moody's expects growth rates for branded drug companies to moderate, especially as large patent expirations occur. The growth outlook for biotechnology companies is stronger because generic threats are less imminent. Generic drug companies also face good growth prospects globally, although the segment of the industry faces continuing pricing pressure, and even greater likelihood of global consolidation, potentially debt-financed. Helping to offset these risks, the pharmaceutical industry still benefits from favorable demographic trends, supporting the increasing utilization of pharmaceutical products. In addition, the pharmaceutical industry should remain relatively less exposed to economic weakness in the U.S. and Europe compared to many other industries. If economic pressures significantly persist or spread, however, healthcare cost containment efforts are likely to intensify. Branded pharmaceutical companies best able to maintain high credit ratings will be those with significant product and geographic diversity, a healthy relationship between patent expirations and pipeline strength, and highly liquid balance sheets. Currently, balance sheets tend to be strong for U.S.-based and Japanese-based pharmaceutical companies, whereas balance sheets of some European companies have somewhat weakened following recent acquisitions. In general, however, U.S.-based pharmaceutical companies have less revenue diversity and face larger patent expirations over the next several years. * Moody's: Global Paper Product Industry Still Holds Neg. Outlook ----------------------------------------------------------------- The global paper and forest products industry continues to have a negative outlook as negative credit trends in North America and Europe are expected to outweigh the relatively stable credit performance anticipated for both Asia-Pacific and Latin American issuers, says Moody's Investors Service. "Declining demand and volatile input costs are the main concerns underlying our continued negative outlook for the global paper and forest products industry," says Moody's VP/Senior Analyst Ed Sustar. This trend is most pronounced in North America, Europe and Japan, where the appetite for most paper and forest products continues to decline and companies face volatile energy, chemical, transportation and fiber costs, says Moody's. However, credit performance is expected to remain positive for Latin American and many Asian producers, as the emerging middle class and increasing literacy rates in these regions spur demand for paper, notes the analyst. With no sign of a bottom in the US housing market, makers of wood- based building products remain under pressure. "They are responding to the adverse market environment by preserving liquidity through scaled back capital expenditure programs and dividend reductions," says Sustar. In addition, the economic slowdown in mature markets and the migration to electronic media from paper has also led to a decline in paper demand. Thus, the availability and cost of fiber continues to shift production capacity to regions that can supply and process it at the lowest cost, says Moody's. Overall, credit quality is expected to remain under pressure in the North American paper and forest products sector as companies continue to cope with volatile fiber, energy and transportation costs and declining product demand, says the analyst. However, some issuers may benefit from the flow through of recent price increases and the moderation of recycled fiber and energy costs. * S&P Sees Increasing Strain in Latin America But Outlook Stable ---------------------------------------------------------------- Latin American economies have held up fairly well in 2008 despite increasingly strained and uncertain global economic conditions. Standard & Poor's Ratings Services now projects that Latin American real GDP growth (weighted average) will land at a still- healthy 4.6% this year versus 5.7% in 2007. Although growth has eased in a number of Latin American countries, the region benefited from high commodity prices and still-solid growth in emerging Asia, as well as strong domestic demand. In 2009, however, S&P expects growth to slow further to 3.9% as difficult external conditions increasingly weigh on the region. Among the problems Latin America will face next year are a projected America recession, which has growth bottoming out in fourth-quarter 2008 and first-quarter 2009; Europe barely skirting recession as growth gets weaker through the beginning of 2009; and activity in China and India easing somewhat from their blistering pace of the past several years. On the plus side, Latin America likely will benefit from supportive global commodity prices, although down from their recent highs. Downside risks to the region's economic outlook include spillovers from prolonged weakness in the U.S. and in Europe -- particularly if they undermine a still-solid outlook for Asian growth and commodity prices. The direct impact of a U.S. recession on Latin America should not be as strong as it would have been in the past. Although the U.S. remains the world's largest economy (accounting for 20% of world GDP in purchasing power parity terms), the country's marginal contribution to world growth has been declining. Emerging markets, especially China and India, have contributed to more than two-thirds of global economic growth in recent years. How growth in China and India hold up in the face of global stress will play a key role in terms of Latin America's economic performance. S&P projects that real GDP growth in China will be a still-firm 10% and 9.5% in 2008 and 2009, respectively, and India's growth is projected at 7.3% to 8%. As a result, S&P expects commodity prices to remain supportive, albeit off recent highs. Financial market distress in the U.S. presents a key downside risk for Latin America. Losses and balance-sheet adjustments among financial intermediaries and institutional investors are bound to affect the region's capital markets and limit the availability of external capital. Amid severe pressure in U.S. financial markets the week of Sept. 15, EMBI spreads (JPMorgan Emerging Markets Bond Index) for Latin America rose sharply--to about 450 basis points above U.S. Treasuries. This marked the first time spreads moved above 400 basis points since May 2005 and compares with abnormally low levels of 200 basis points in the first half of 2007. Bond yields also jumped, after having edged up during the year because of inflation and policy tightening. Equity market performance, which had already deteriorated, took another strong hit. The greater the strain that global capital markets remain under, the larger the impact they will have on Latin America's local capital market dynamics. This presents a key risk to the region's economic outlook. Increasing headwinds from the external climate aren't the only forces that will trim Latin American growth in 2009. Various central banks across the region have tightened monetary policy over the course of 2008. Past and future tightening should generate a slowdown in the pace of domestic demand during the rest of 2008 and into 2009. On the inflation front, S&P expects inflation to ease somewhat from its sharp rise in 2008 as growth across the region, and the world, moderates. Many central banks in Latin America -- though not all -- have adjusted policy interest rates to preserve their own inflation-fighting credibility and the hard-won gains of low inflation, to minimize the secondary effects of energy and food price shocks, and to tame robust domestic demand. Monetary tightening aims to bring inflation back in line with official inflation targets. This exemplifies an institutional maturing in the region and is a marked contrast with a legacy of extremely high inflation and ineffective policy action. S&P's projected easing of inflation in 2009, however, does not necessarily imply that it will decline to comfortably within the officially targeted bands. And, modest currency depreciation in the region or renewed upward pressure on energy and food prices could compromise the pace of decline. The Region Is Better Prepared To Weather The Global Turbulence, But Weaknesses Are Emerging Overall, Latin America remains better positioned to manage the global slowdown and financial market stress than it has been in the past. This reflects better policy and policy frameworks, such as floating exchange rate and inflation targeting regimes, as well as somewhat lower fiscal and external indebtedness. In addition, domestic demand has taken over as the main source of growth, instead of net exports for some countries as well. However, the region is vulnerable to a sharp decline in commodity prices and more costly capital. It should maintain its commitment to pragmatic macroeconomic policy to ensure local confidence and to support sound domestic demand. Latin America's external vulnerability has declined, as reflected in its weighted average of external debt net of liquid assets. S&P projects net debt at about 17% of current account receipts in 2008 to 2009, significantly less than the nearly 100% in 2004. This year, however, current account performance has deteriorated, strong domestic demand has reduced the regional trade surplus, and services and income deficits have increased. Brazil's and Peru's swing to current account deficits this year is a prominent example of this trend. S&P expects Latin America's external accounts to deteriorate further in 2009 given weaker global economic conditions. Latin America's fiscal position is stronger than it has been, but general government deficits are widening. Gross and net general government debt-to-GDP ratios are 10 percentage points lower than they were in 2004, and S&P expects this measure to hold steady in 2009. Even lower debt-to-GDP ratios are critical to support private investment given the region's volatile economic past, especially in the context of global stress. Further debt reduction would certainly contribute to more balanced policy mixes in various countries. S&P expects fiscal deficits to widen somewhat amid the projected slowing of growth given pressures to maintain social spending, subsidies, and investments. Although Chile and, to a lesser extent, Mexico are able to run countercyclical fiscal policies, other countries in Latin America cannot. Domestic Demand Supports Growth S&P expects real GDP growth to slow more sharply this year in some Latin American countries than in others. This reflects a combination of internal dynamics and policy mixes, as well as external pressures. The two largest economies -- Brazil and Mexico -- account for almost two-thirds of the region's GDP, and their performances weigh heavily on the regional average. Despite fairly strong performance through mid-year 2008, growth across the region likely will moderate further during the remainder of the year. This presumes that global economic conditions and monetary tightening have a larger impact on net exports and domestic demand than they have so far. Growth in Brazil and Peru has been stronger than S&P expected so far this year. Both countries have shown few signs of any slowdown as domestic demand advances at full speed. In fact, growth picked up in both countries in the second quarter. Colombia and Mexico are displaying more consistent signs of an economic slowdown. In Chile and Venezuela, growth showed a bit more momentum in the second quarter than the first quarter. Increased policy pressures and the nationwide farmers' strike hurt economic activity in Argentina in the second quarter. In Panama, growth in the first two quarters is down from the very high rates in 2007 because of tougher international conditions. Brazil continues to grow much faster than in recent years In Brazil, domestic demand is booming, and economic activity continues to expand above the estimated rate of potential GDP growth. Real GDP accelerated in the second quarter and came in higher than expected at 6.1% year over year. It rose 6% in the first half of 2008 versus the same period in 2007. Domestic demand continues at a breathtaking pace. Investment expanded 16.2% in second-quarter 2008 from the same period in the previous year, and private consumption was up 6.7%. Both labor and capital markets are very tight. Industrial production is robust, increasing 8.5% year over year in July (versus 6.4% year over year in June, a strong month as well) and 6.6% so far this year. Capital goods production continues to dominate, up 22.3% year over year in July and 18.1% year to date. Despite robust capital goods production, industrial capacity utilization set another record at 83.5% in July. Industrial capacity utilization has either set or flirted with record highs throughout 2008. Unemployment is near lows, 8.1% in July, and reflects formal job creation. Despite monetary policy tightening and some measures to slow lending, domestic credit increased 32.7% year over year in July. S&P expects growth of 5.2% in 2008 given continued domestic demand strength. However, S&P expects growth to slow sharply in 2009 to 4%. This reflects S&P's expectation for further slowing of global growth and is a result of monetary policy that works with a lag of six to nine months in Brazil, so its impact should just be starting to hit the pace of economic activity. The central bank has hiked rates by 250 basis points since April, and more increases are likely to come. Mexico's economy is slowing down Growth in Mexico has slowed in the first half of 2008 since its fairly strong performance in the second half of 2007. The contraction in U.S. real GDP in fourth-quarter 2007 did not hurt Mexico's economy late last year. However, it is not surprising that growth has slowed so far in 2008, considering that 80%-85% of Mexico's exports go to the U.S., the tight correlation between U.S. and Mexican IP, and a decline in remittances from Mexican workers in the U.S. In the second quarter, real GDP increased 2.8% year over year, but when adjusted for working days, growth was only 2.1%. In the first half of 2008, real GDP was up 2.7% over the same period in 2007--led by growth in services (3.7%). Industrial activity, which was the weakest segment, was up only 1.1%. Economic weakness is fairly broad. Construction activity has slowed markedly from 2008. The ongoing tightening of lending standards that began in 2007 has reduced the pace of credit growth. Remittances dropped 2.2% during the first six months of 2008 from the same period in 2007, and they are likely to drop further. Consumer confidence in January through August is down more than 9% versus the same period in 2007, and it has declined markedly since the first quarter. Unemployment edged up to 4.1% in July (from 3.9% in July 2007); the informal sector is leading job creation. S&P projects Mexican real GDP growth at 2.25% in 2008 and 2.6% in 2009. Given a track record of macroeconomic stability that has strengthened the domestic market and some diversification of exports, Mexico is much better positioned to weather the U.S. recession than it was a decade ago. However, U.S. economic conditions are certainly affecting Mexico, and recent events in U.S. financial markets suggest that downside risk to U.S. and Mexican growth could heighten over the coming quarters. To mitigate the downside risk from the U.S., the Mexican government announced the creation of a National Infrastructure Fund in February. However, the government has been slower to act on this than it planned. Peru continues to grow at incredible rates Economic activity in Peru also continues to show few signs of moderation. Led by robust domestic demand (up 13.8% year over year), real GDP increased 10.9% in second-quarter 2008 compared with the same period in the previous year. This compares with year-over-year growth of 9.7% in the first quarter, and it marks the fourth consecutive quarter of growth strengthening at an already high rate. In the first half of 2008, real GDP was up 10.3% versus the first half of 2007, with domestic demand up 12.6% over the same period. Investment continues to boom. Real fixed capital formation rose almost 30% in the first half of the year, and it reached 26.8% of GDP in June. Similar to Brazil, strong domestic demand (especially investment) is pulling in imports. Despite continued strength in exports, the trade and current balances have deteriorated (in part owing to oil imports). Despite showing some recent signs of deceleration, rapid growth in credit to the private sector continues to support domestic demand. In July, credit expanded by 26.1% year over year, down from growth rates of more than 30% at the beginning of 2008. The central bank has not only raised interest rates, but it also tightened reserve requirements. Therefore, S&P expects the pace of credit to continue to ease somewhat in the next few months. Given the economic strength it has seen so far this year, S&P expects growth of 9% in 2008. However, because of the more challenging global scenario and monetary policy tightening that has the reference interest rate up 200 basis points since July 2007, S&P expects growth to slow and average 6.8% in 2009. Concerns About High Inflation Cause Some Central Banks To React Given sharply higher global food and fuel prices, inflation in Latin America has trended higher in 2008. However, hot domestic demand in a number of countries (notably Brazil and Peru) has played a role as well, as have unconventional policies in other countries (Argentina and Venezuela). On a GDP-weighted basis, S&P expects inflation in Latin America to increase to 10% in 2008 from 5.6% in 2007, and to decline to 8.8% in 2009. Inflation data through August of this year highlight the run-up in inflation across the region. For the five main inflation targeting countries in the region (Brazil, Chile, Colombia, Mexico, and Peru) inflation was running, on average, two percentage points higher than it was at year-end 2007. Elsewhere in the region, inflation is generally even higher, about 10% for Ecuador, El Salvador, and Uruguay. Argentina's official inflation rate of 9% is much lower than market estimates of inflation closer to 25%. Latin American countries have taken a variety of policy actions in response to the sharp increase in inflation. A number of central banks have tightened monetary policy via interest rates, reserve requirements, etc., while other governments have relied more heavily on unconventional measures such as price controls (Argentina, Ecuador, and Venezuela). Even with mainstream policy responses, many countries also lowered import tariffs and increased subsidies or assistance of some form to protect the poorer segments of society from high food inflation, in particular. In many cases, food price inflation has been double the headline inflation rate. For the five inflation targeting countries, inflation was not only higher than the target, but also was above the upper limit of the targeted band. The exception is Brazil, which also has the highest target and the widest band. Most notable is Chile, with inflation at more than 9% versus its target of 3%. As the long- standing credibility of the Chilean Central Bank came under question in the markets, the bank embarked on a more concerted tightening cycle. This also follows signs that the persistence of the global food/commodity price shock was generating second-order effects on wages, prices, and inflation expectations. S&P expects rates to move higher during the remainder of the year as the policy rate remains negative in real terms. Both Mexico and Colombia tightened modestly this year and are close to, if not at the end of, their tightening cycles. The Central Bank of Mexico does not expect inflation to return to its target until 2010, after peaking at 5.5%-6% in the fourth quarter of 2008. Market expectations have edged up to that range, and the government is slowly reducing fuel price subsidies. However, at the same time, aggregate demand is subdued and wage pressures have not increased. In Colombia, economic activity has decelerated quite a bit (monetary policy tightening began in 2006), and the central bank likely will keep interest rates steady. Given the ongoing economic growth in Brazil and Peru, both central banks have expressed concern that robust domestic demand runs the risk of spilling over to wage negotiations after it has already increased inflation expectations. Hence, they have hiked rates, and S&P expects them to continue to do so through year-end. Although real interest rates in Brazil are the highest in the region, the policy rate in real terms has increased only modestly, despite 250 basis points of tightening since the cycle began in April as inflation rose. The Central Bank of Brazil has reiterated its goal of bringing inflation down to the target of 4.5% in 2009. In Peru, the policy rate is barely positive in real terms. Since the central bank has repeated its concern regarding the pace of domestic demand and the need to bring down inflation expectations in its recent policy decisions, S&P foresees rates increasing until early 2009. Government Policies Will Help Determine Latin America's Performance Through The Economic Downturn Clearly, Latin America's relative resiliency is going to be tougher to maintain through 2009 in the face of global economic and financial problems. The region's starting point is, on balance, much stronger than it has been recently. However, managing through global headwinds likely will require governments to react accordingly with prudent and pragmatic policy adjustments. This will be important to offset deterioration in economic indicators and to bolster investor confidence. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Sept. 24, 2008 TURNAROUND MANAGEMENT ASSOCIATION 13 Week Cash Flow Workshop: An Overview McCormick & Schmick's, Las Vegas, Nevada Contact: www.turnaround.org Sept. 24-25, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Florida Annual Golf Tournament Champions Gate Golf Club, Orlando, Florida Contact: 561-882-1331 or www.turnaround.org Sept. 24-26, 2008 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC 15th Annual Fall Conference Scottsdale, Arizona Contact: http://www.ncbj.org/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Desert Ridge Marriott, Scottsdale, Arizona Contact: http://www.iwirc.org/ Sept. 25, 2008 TURNAROUND MANAGEMENT ASSOCIATION Case Study with Tom Kim, TMA Small Business of the Year Turnaround Award - TMA Arizona Chapter Meeting TBD, Phoenix, Arizona Contact: www.turnaround.org Sept. 26, 2008 ASSOCIATION OF BUSINESS RECOVERY PROFESSIONALS R3 International Restructuring & Insolvency Conference Grange City Hotel, London Contact: courses@r3.org.uk; 020 7566 4225 Sept. 26, 2008 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Marriott Desert Ridge, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ Sept. 30, 2008 TURNAROUND MANAGEMENT ASSOCIATION Private Equity Panel Centre Club, Tampa, Florida Contact: www.turnaround.org/ Oct. 3, 2008 AMERICAN BANKRUPTCY INSTITUTE ABI/UMKC Midwestern Bankruptcy Institute H. Roe Bartle Hall Convention Center, Kansas City Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Luncheon - Chapter 11 University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ Oct. 13, 2008 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference Standard Club, Chicago, Illinois Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2008 TURNAROUND MANAGEMENT ASSOCIATION Annual Charity Golf Event Forest Park Golf Course, St. Louis, Missouri Contact: www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION Billiards Networking Night Herbert's Billiards, Secaucus, New Jersey Contact: 908-575-7333 or www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Member Social Davenport Press, Mineola, New York Contact: 631-251-6296 or www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting TBD, Calgary, Alberta Contact: 503-768-4299 or www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION View from the Bench - Bankruptcy Update Summit Club, Birmingham, Alabama Contact: www.turnaround.org Oct. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION How to Contract with a Turnaround Manager University Club, Portland, Oregon Contact: www.turnaround.org Oct. 22, 2008 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Nevada Award Night McCormick & Schmick's, Las Vegas, Nevada Contact: www.turnaround.org Oct. 23, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting - Election Oriented TBD, Phoenix, Arizona Contact: www.turnaround.org Oct. 23, 2008 TURNAROUND MANAGEMENT ASSOCIATION Effective Turnarounds: A Panel of Professionals TBA, Rochester, New York Contact: www.turnaround.org Oct. 23-24, 2008 AMERICAN CONFERENCE INSTITUTE Distressed Assets Boot Camp TBD, London, United Kingdom Contact: www.americanconference.com Oct. 28, 2008 TURNAROUND MANAGEMENT ASSOCIATION State of the Capital Markets Citrus Club, Orlando, Florida Contact: www.turnaround.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Oct. 29-30, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Corporate Governance Meetings Marriott, New Orleans, Louisiana Contact: www.turnaround.org Oct. 30 & 31, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Physicians Agreements and Ventures Contact: 800-726-2524; 903-595-3800; www.renaissanceamerican.com Oct. 31, 2008 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Hilton, Frankfurt, Germany Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 6, 2008 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Coach House Diner & Restaurant, Hackensack, New Jersey Contact: 908-575-7333 or www.turnaround.org Nov. 11, 2008 AMERICAN BANKRUPTCY INSTITUTE Detroit Consumer Bankruptcy Conference Marriott, Troy, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Case Study Summit Club, Birmingham, Alabama Contact: www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Effective Turnarounds:A View From Workout Consultants TBA, Buffalo, New York Contact: www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Social TBD, Melville, New York Contact: 631-251-6296 or www.turnaround.org Nov. 13, 2008 TURNAROUND MANAGEMENT ASSOCIATION Dinner Meeting TBD, Calgary, Alberta Contact: 503-768-4299 or www.turnaround.org Nov. 17-18, 2008 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Distressed Investing Contact: 800-726-2524; 903-595-3800; www.renaissanceamerican.com Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Special Program Tournament Players Club at Jasna Polana, New Jersey Contact: 908-575-7333 or www.turnaround.org Nov. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION Interaction Between Professionals in a Restructuring/Bankruptcy Bankers Club, Miami, Florida Contact: 312-578-6900; http://www.turnaround.org/ Nov. 20, 2008 TURNAROUND MANAGEMENT ASSOCIATION Senior Housing & Long Term Care Washington Athletic Club,Seattle, Washington Contact: www.turnaround.org Nov. 27, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting - Chris Kaup TBD, Phoenix, Arizona Contact: www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Party McCormick & Schmick's, Las Vegas, Nevada Contact: 702-952-2480 or www.turnaround.org Dec. 3, 2008 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function Terminal City Club, Vancouver, British Columbia Contact: 503-768-4299 or www.turnaround.org Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ Dec. 8, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday Gathering TBD, Long Island, New York Contact: 631-251-6296 or www.turnaround.org Dec. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer Washington Athletic Club, Seattle, Washington Contact: 503-768-4299 or www.turnaround.org Dec. 11, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer University Club, Portland, Oregon Contact: 503-768-4299 or www.turnaround.org Dec. 18, 2008 TURNAROUND MANAGEMENT ASSOCIATION Holiday MIxer TBD, Phoenix, Arizona Contact: 623-581-3597 or www.turnaround.org Dec. 31, 2008 TURNAROUND MANAGEMENT ASSOCIATION Sponsorships - Annual Golf Outing, Various Events TBA, New Jersey Contact: 908-575-7333 or www.turnaround.org Jan. 21-22, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Conference Bellagio, Las Vegas, Nevada Contact: www.turnaround.org Jan. 22-23, 2009 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colorado Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 5-7, 2009 AMERICAN BANKRUPTCY INSTITUTE Caribbean Insolvency Symposium Westin Casurina, Grand Cayman Island, AL Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 25-27, 2009 AMERICAN BANKRUPTCY INSTITUTE Valcon Four Seasons, Las Vegas, Nevada Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 13, 2009 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Beverly Wilshire, Beverly Hills, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 17-18, 2009 NATIONAL ASSOCIATION OFBANKRUPTCY TRUSTEES NABT Spring Seminar The Peabody, Orlando, Florida Contact: http://www.nabt.com/ Apr. 20, 2009 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference John Adams Courthouse, Boston, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 27-28, 2009 TURNAROUND MANAGEMENT ASSOCIATION Corporate Governance Meetings Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org Apr. 28-30, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Intercontinental Hotel, Chicago, Illinois Contact: www.turnaround.org May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ May 14-16, 2009 ALI-ABA Chapter 11 Business Reorganizations Langham Hotel, Boston, Massachusetts Contact: http://www.ali-aba.org June 11-13, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 15-18, 2010 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ June 17-20, 2010 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ July 7-10, 2010 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Ocean Edge Resort, Brewster, Massachusetts Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 5-7, 2010 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Maryland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Dec. 2-4, 2010 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Camelback Inn, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Carve-Out Agreements for Unsecured Creditors Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Chinas New Enterprise Bankruptcy Law Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Corporate Bankruptcy Bootcamp: A Nuts & Bolts Primer for Navigating the Restructuring Process Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Examining the Examiners: Pros and Cons of Using Examiners in Chapter 11 Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES New 'Red Flag' Identity Theft Rules Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergersthe New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Todays Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Battle of Green & Red: Effect of Bankruptcy on Obligations to Clean Up Contaminated Property Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite Corporate Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ * * * Featured Conferences Renaissance American Management and Beard Conferences presents Oct. 30-31, 2008 Physician Agreements & Ventures The Millennium Knickerbocker Hotel - Chicago Brochure will be available soon! Nov. 17-18, 2008 Distressed Investing The Helmsley Park Lane - New York Brochure will be available soon! * * * Beard Audio Conferences presents Bankruptcy and Restructuring Audio Conference CDs More information and list of available titles at: http://beardaudioconferences.com/bin/topics?category_id=BAR *********** 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 * * *