/raid1/www/Hosts/bankrupt/TCRLA_Public/080929.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, September 29, 2008, Vol. 9, No. 193
Headlines
A R G E N T I N A
ASOCIACION MUTUAL: Trustee Verifying Proofs of Claim Until Nov. 13
COMERCIAL FRIGORIFICO: Trustee Verifying Claims Until October 27
JOTAENE SRL: Proofs of Claim Verification Deadline Is November 15
LAVALLE 1506: Individual Reports Filing Deadline Is on December 16
PROM SA: Files for Reorganization in Buenos Aires Court
PROTECCION PADELGO: Claims Verification Deadline Is December 15
YUVIET SAIC: Proofs of Claim Verification Deadline Is November 20
B A H A M A S
PRIDE INT'L: Names Randall Stilley as CEO for Jackup Rig Business
B E R M U D A
SEA CONTAINERS: Court Approves 2nd Amended Disclosure Statement
SEA CONTAINERS: Court Approves Voting and Solicitation Procedures
SEA CONTAINERS: Court Approves Settlement Pact with Panel, et al.
SEA CONTAINERS: Seeks to Waive US$3,000,000 Intercompany Claims
SEAWAY INSURANCE: Proof of Claim Filing Deadline Is Oct. 10
SEAWAY INSURANCE: Holding Final Shareholders Meeting on Oct. 30
B O L I V I A
AMERICAN AIRLINES: Delays Bolivina Flights Due to Political Crises
B R A Z I L
BANCO NACIONAL: Grants BRL27.1 Million Financing to MRC Servicos
BANCO NACIONAL: Is Up for Capitalization, Gov't Officials Says
DELPHI CORP: Gets Green Light to Halt Pension Contributions
GOL LINHAS: National Agency Approves Reorganization of VRG & GTA
SADIA SA: Picks Ely David Mizrahi as Domestic Market Director
TAM SA: To Initiate Daily Flights to Lima, Peru on October 17
C A Y M A N I S L A N D S
BIG ROOKIE: Holding Final Shareholders Meeting on Oct. 2
CRIUS LTD: Will Hold Final Shareholders Meeting on Oct. 2
CRIUS INVESTMENT: Holds Final Shareholders Meeting on Oct. 2
GLOBAL ASCENT: Setting Final Shareholders Meeting for Oct. 2
HARUMI INVESTMENT: Final Shareholders Meeting Is on Oct. 2
MAINSAIL II: Sale Signals Cont'd. Storms in Mortgage-Backed Debts
PARMALAT SPA: Hikes Share Capital by EUR117,199
TMN FUNDING: Will Hold Final Shareholders Meeting on Oct. 2
C H I L E
COEUR D'ALENE: Asks Supreme Court to Terminate Permitting Process
C U B A
* CUBA: Motorola Sells Phones to Restricted Nations, U.S. SEC Says
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Fitch Affirms B/B+ Ratings; Outlook Stable
G U A T E M A L A
CLAIRE'S STORES: Posts US$16.9 Mil. Net Loss in Qtr. Ended Aug. 2
J A M A I C A
CABLE & WIRELESS: Eyes Caribbean Operations Renamed as LIME
M E X I C O
PILGRIM'S PRIDE: Stops Trading on NYSE After Shares Drop 38%
P U E R T O R I C O
CENTRO RENAL: Case Summary & Two Largest Unsecured Creditors
HOME INTERIORS: Details Plans to Split Up; Officers to Submit Bids
ICFQ DESARROLLOS: Files Amended Disclosure Statement
V E N E Z U E L A
GENERAL MOTORS: Delphi Wants to Shift US$3.4BB in Pension Debts
GENERAL MOTORS: May Lack Cash, Hires Outsider to Help Cut Costs
PETROLEOS DE VENEZUELA: To Possibly Form Consortium With Gazprom
* Sovereign Credit Ratings for Emerging Markets Peaking, S&P Says
* BOND PRICING: For the Week September 22 - September 26, 2008
- - - - -
=================
A R G E N T I N A
=================
ASOCIACION MUTUAL: Trustee Verifying Proofs of Claim Until Nov. 13
------------------------------------------------------------------
The court-appointed trustee for Asociacion Mutual y Social del
Club Atletico y Filodramatico de Alicia's reorganization
proceeding will be verifying creditors' proofs of claim until
November 13, 2008.
The trustee will present the validated claims in court as
individual reports on December 30, 2008. The National Commercial
Court of First Instance in San Francisco, Cordoba, 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 Asociacion Mutual 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 Asociacion Mutual's
accounting and banking records will be submitted in court on
March 13, 2009.
Creditors will vote to ratify the completed settlement plan
during the assembly on September 2, 2009.
COMERCIAL FRIGORIFICO: Trustee Verifying Claims Until October 27
----------------------------------------------------------------
Bilenca-Ghuiglione y Sabor, the court-appointed trustee for
Comercial Frigorifico Puerto Plata SA's reorganization proceeding
will be verifying creditors' proofs of claim until October 27,
2008.
Ms. Sabor will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 34, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by Comercial Frigorifico 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 Comercial Frigorifico's
accounting and banking records will be submitted in court.
La Nacion didn't state the submission dates for the reports.
Creditors will vote to ratify the completed settlement plan
during the assembly on July 24, 2009.
The debtor can be reached at:
Comercial Frigorifico Puerto Plata SA
San Antonio 1081
Buenos Aires, Argentina
The trustee can be reached at:
Bilenca-Ghuiglione y Sabor
Lavalle 1675
Buenos Aires, Argentina
JOTAENE SRL: Proofs of Claim Verification Deadline Is November 15
-----------------------------------------------------------------
The court-appointed trustee for Jotaene S.R.L.'s bankruptcy
proceeding, will be verifying creditors' proofs of claim until
November 15, 2008.
The trustee will present the validated claims in court as
individual reports on December 23, 2008. The National Commercial
Court of First Instance in Bahia Blanca, 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 Jotaene 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 Jotaene S.R.L.'s
accounting and banking records will be submitted in court on
March 11, 2009.
The trustee is also in charge of administering Jotaene S.R.L.'s
assets under court supervision and will take part in their
disposal to the extent established by law.
LAVALLE 1506: Individual Reports Filing Deadline Is on December 16
------------------------------------------------------------------
Manuel Mansanta, the court-appointed trustee for Lavalle 1506 SA's
bankruptcy proceeding, will present the validated claims as
individual reports in the National Commercial Court of First
Instance No. 23 in Buenos Aires, with the assistance of Clerk
No. 45, on December 16, 2008.
Mr. Mansanta is verifying creditors' proofs of claim until
November 4, 2008. He will also submit to court a general report
containing an audit of Lavalle 1506's accounting and banking
records on March 3, 2009.
Mr. Mansanta is also in charge of administering Lavalle 1506's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Lavalle 1506 SA
Leguizamon 1065
Buenos Aires, Argentina
The trustee can be reached at:
Manuel Mansanta
Avenida Cordoba 1351
Buenos Aires, Argentina
PROM SA: Files for Reorganization in Buenos Aires Court
-------------------------------------------------------
Proms S.A. has requested for reorganization approval after failing
to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Proms 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. 22 in Buenos Aires. Clerk No. 43 assists the court
in this case.
The debtor can be reached at:
Proms S.A.
Avda. Callao 86
Buenos Aires, Argentina
PROTECCION PADELGO: Claims Verification Deadline Is December 15
---------------------------------------------------------------
Adolfo Becker, the court-appointed trustee for Proteccion Padelgo
SRL's bankruptcy proceeding, will be verifying creditors' proofs
of claim until December 15, 2008.
Mr. Becker will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 23 in Buenos Aires, with the assistance of Clerk
No. 46, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by Proteccion Padelgo 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 Proteccion Padelgo's
accounting and banking records will be submitted in court.
La Nacion didn't state the submission dates for the reports.
Mr. Becker is also in charge of administering Proteccion Padelgo's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Proteccion Padelgo SRL
Avda. Corrientes 753
Buenos Aires, Argentina
The trustee can be reached at:
Adolfo Becker
Jeronimo Salguero 2244
Buenos Aires, Argentina
YUVIET SAIC: Proofs of Claim Verification Deadline Is November 20
-----------------------------------------------------------------
Fernando Aquilino, the court-appointed trustee for Yuviet SAIC's
bankruptcy proceeding, will be verifying creditors' proofs of
claim until November 20, 2008.
Mr. Aquilino will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 1 in Buenos Aires, with the assistance of Clerk
No. 2, 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 Yuviet SAIC 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 Yuviet SAIC's
accounting and banking records will be submitted in court.
La Nacion didn't state the submission dates for the reports.
Mr. Aquilino is also in charge of administering Yuviet SAIC's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Yuviet SAIC
Avda. Corrientes 2322
Buenos Aires, Argentina
The trustee can be reached at:
Fernando Aquilino
Lavalle 1459
Buenos Aires, Argentina
=============
B A H A M A S
=============
PRIDE INT'L: Names Randall Stilley as CEO for Jackup Rig Business
-----------------------------------------------------------------
Pride International Inc. has appointed that Randall D. (Randy)
Stilley to the position of Chief Executive Officer of Pride's mat-
supported jackup rig business and will join the company
immediately.
Mr. Stilley is a 32-year veteran of the oilfield services
industry. From October 2004 through June 2008, he served as
President and Chief Executive Officer of Hercules Offshore, Inc.,
leading the company through an initial public offering in late
2005 and the acquisition of TODCO in mid 2007. During his tenure
at Hercules, the company's enterprise value grew from
approximately US$60 million to over US$4 billion at the time of
his departure.
Before joining Hercules, Mr. Stilley served as President and Chief
Executive Officer of Seitel, Inc. and held a number of management
positions with Weatherford International and Halliburton Company
where he spent 22 years in various international operating
locations.
Mr. Stilley, who is a 25-year member of the Society of Petroleum
Engineers and a past chairman of the Petroleum Equipment Suppliers
Association's Gulf Coast and Far East region chapters, holds a
B.S. degree in Aerospace Engineering from the University of Texas
at Austin and currently serves as non-executive Chairman and a
director of ThruBit LLC. He also serves on
the boards of Boys & Girls Country of Houston and Theater Under
the Stars.
Louis A. Raspino, President and Chief Executive Officer of Pride
International, Inc., stated, "Randy brings a wealth of energy
sector knowledge, leadership and capital markets expertise and has
successfully led a shallow water, Gulf of Mexico-based contract
drilling business. With this appointment, we continue to make
steady progress toward the separation of our 20-rig mat-supported
jackup business, which allows us to sharply focus Pride's business
on the premium floater segment."
Headquartered in Houston, Texas, Pride International Inc.
(NYSE: PDE) -- http://www.prideinternational.com/-- provides
onshore and offshore contract drilling and related services in
more than 25 countries, operating a diverse fleet of 64 rigs,
including two ultra-deepwater drillships, 12 semisubmersible
rigs, 28 jackups, 10 platform rigs, five managed deepwater rigs
and seven Eastern Hemisphere-based land rigs. The company has
subsidiaries in France, Netherlands, Venezuela, Bahamas, Mexico,
Malaysia, and Singapore.
* * *
To date, Pride International carries Standard & Poor's Ratings
Service's BB+ corporate credit rating. The company's unsecured
debt is also rated BB+ by S&P. The outlook on the ratings is
stable.
=============
B E R M U D A
=============
SEA CONTAINERS: Court Approves 2nd Amended Disclosure Statement
---------------------------------------------------------------
Judge Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware approved a Second Amended Disclosure
Statement explaining Sea Containers Ltd. and its debtor-
affiliates' Second Amended Joint Plan of Reorganization, at a
hearing held Sept. 22, 2008.
The Court held that the Disclosure Statement contains adequate
information, as defined by Section 1125(a) of the Bankruptcy
Code, to enable creditors to make an informed decision on whether
to vote to accept or reject the Plan.
Objections to the approval of the Disclosure Statement that were
not withdrawn at, or prior to, the hearing were overruled.
At the initial hearing on the adequacy of the Disclosure
Statement held September 19, the Official Committees of Unsecured
Creditors for Sea Containers Ltd., and Sea Containers Services
Ltd. indicated that "discussions concerning additional comments
to the First Amended Disclosure Statement were ongoing."
Accordingly, the Court directed the Debtors to file the final
forms of the their Second Amended Plan and Disclosure Statement
prior to the telephonic hearing set for September 22.
The Committees and the U.S. Trustee did not oppose the revised
versions of the Plan and Disclosure Statement.
The Court will convene a hearing on Nov. 24, 2008, at 10:00 a.m.,
to consider confirmation of the Second Amended Plan. Parties
have until Nov. 10, 4:00 p.m., to file objections to
the Plan's confirmation.
2nd Amended Plan and
Disclosure Statement
The Second Amended Plan and Disclosure Statement reflect the
progress made by the Debtors, the Pension Schemes, and the
Official Committees of Unsecured Creditors with respect to the
issues surrounding the settlement of the Pension Claims, which
gained the Court's approval at the September 19 hearing.
In the Amended Plan, a section on Newco's governance replaced an
entire section tackling the ongoing negotiations of the Debtors'
two Official Committees of Unsecured Creditors regarding Newco.
The proposed registered company, The Depository Trust Company, on
which Newco's common stock certificates will be deposited, was
replaced with a generic term of "a securities depository."
The Plan Proponents also added new provisions, including those
relating to releases, injunction, discharges of claims, and
investment of trust funds.
The Pension Settlement
The Second Amended Plan provides that, notwithstanding the
Court's decision to approve the Pension Settlement, the (i) the
Official Committee of Unsecured Creditors of Sea Containers
Services Ltd. and the Pension Schemes, (ii) the Official
Committee of Unsecured Creditors of Sea Containers Ltd., and
(iii) the Debtors may agree to modify or amend the Pension
Settlement, provided that the modification will only be effective
if each of the parties agree to the changes in their sole and
absolute discretion.
If the proposed modification or amendment includes these
elements:
(a) the aggregate amount of the allowed Pension Schemes'
unsecured claims is reduced from US$194,000,000 by an amount
of up to US$13,000,000;
(b) the aggregate amount of the allowed Pension Schemes'
administrative claims is increased from US$5,000,000 to an
amount no greater than US$10,000,000;
(c) the initial Equalization Claim Reserve is reduced from
US$69,000,000 to US$60,000,000; and
(d) payment of fees and expenses incurred by counsel for
certain bondholders is made in an amount not to exceeding
US$700,000,
then all impaired creditors, who vote to accept the Plan, will be
deemed to have also accepted prospective Plan modifications that
give effect to the modified terms of the Pension Settlement.
To the extent that the Debtors, the Creditors Committees and the
Pension Schemes each agree to amend or modify the Plan to
implement the modified Pension Settlement, (i) a vote to accept
the Plan will constitute a vote to accept the Plan as so
modified, and (ii) the entry of the Plan's confirmation order
will constitute the Court's approval of that compromise or
settlement, pursuant to Section 363 of the Bankruptcy Code and
Rule 9019(a) of the Federal Rules of Bankruptcy Procedure,
without any further notice to, and order or approval of the
Court.
The Plan Proponents also amended the section on risks related to
the Pension Schemes' support for the Plan to provide that (i)
absent sanctioning of the U.K. Scheme of Arrangement and any
Debtor Affiliate Schemes of Arrangement by the English Court
prior to the closing of voting on the Plan, and (ii) if there is
any chance that the Plan will be consummated in a way that would
jeopardize the Pension Schemes' ability to enter into the Pension
Protection Fund or trigger a PPF assessment period, the Pension
Schemes intend to vote to reject the Plan as they cannot risk
jeopardizing their PPF eligibility.
Investment of Trust Funds
A whole new section is added to the Second Amended Plan regarding
investment of the funds of the trusts created under the Plan.
The Amendment provides that the Equalization-Related Employee
Claim Trustees have the right to invest or apply the assets in
the trust as if the assets were absolutely and beneficially
entitled to the trustees, except that the trustees' right to
invest or apply the assets is restricted to:
(1) purchasing or subscribing for stocks, shares, debenture
stocks, bearer securities or other investments;
(2) placing monies on deposit with a bank, insurance company,
building society, finance company or local authority; and
(3) giving guaranties, indemnities or undertakings.
The trustees will not be liable for (i) any loss of depreciation
in or default upon any of the investments, securities, stocks or
policies, in which the Equalization-Related Employee Claim
Reserve or the trustee costs reserve may be invested or applied,
(ii) any delay in the investment or application, (iii) the safety
of any securities or documents of title deposited by the trustees
for safe custody, (iv) the exercise of any power vested in the
trustees, or (v) reason of any other matter or thing, except that
the trustee will be liable for any losses arising from his
fraudulent or other dishonest conduct, knowingly or recklessly
acting in a manner that he knew was in breach of trust, or gross
negligence.
Copies of the Second Amended Joint Plan and Disclosure Statement
are available for free at:
http://bankrupt.com/misc/SeaCon_2ndAmended_Plan.pdf
http://bankrupt.com/misc/SeaCon_2ndAmended_DisclosureStatement.pdf
Blacklined copies of the Second Amended Joint Plan and Disclosure
Statement are also available without charges at:
http://bankrupt.com/misc/SeaCon_Blacklined_2ndAmendedPlan.pdf
http://bankrupt.com/misc/SeaCon_Blacklined_DisclosureStatement.pdf
About Sea Containers Ltd.
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083.
(Sea Containers Bankruptcy News, Issue No. 52; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
SEA CONTAINERS: Court Approves Voting and Solicitation Procedures
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
Sea Containers Ltd. and its debtor-affiliates' solicitation
procedures, packages and materials, well as the proposed forms
of ballots and notices.
The Court noted that ballots and copies of the Plan and Disclosure
Statement need not be provided to holders of claims (i) that are
unimpaired or not classified under the Plan, and (ii) or interests
that will not receive any distributions on account of their claims
or interests under the Plan.
Judge Kevin J. Carey also set:
-- Aug. 15, 2008, as the voting record date;
-- Oct. 3, 2008, as the date when solicitation packages
will be mailed;
-- Nov. 10, 2008, 4:00 p.m., prevailing Pacific Standard
Time, as the voting deadline; and
-- 10 days prior to the Plan's effective date, as the
distribution record date.
About Sea Containers Ltd.
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083.
(Sea Containers Bankruptcy News, Issue No. 52; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
SEA CONTAINERS: Court Approves Settlement Pact with Panel, et al.
-----------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
approved a settlement agreement among Sea Containers Ltd. and its
debtor-affiliates, its Official Committee of Unsecured Creditors,
and the trustees of the Sea Containers 1983 Pension Scheme and the
Sea Containers 1990 Pension Scheme. The Settlement resolves the
Trustees' claims and other issues relating to the Schemes. The
objection filed by the Official Committee of Unsecured Creditors
of Sea Containers Ltd. was overruled.
Under the Pension Settlement, which is in full and final
satisfaction of all of the Pension Claims against SCL, SCSL, and
certain non-Debtor subsidiaries, the 1983 Pension Scheme will
receive a US$153,800,000 allowed unsecured claim against SCL, and
the 1990 Pension Scheme will receive a US$40,200,000 allowed
unsecured claim against SCL, plus the establishment of an
equalization claim reserve on account of a US$69,000,000
equalization claim.
In a 21-page memorandum, the Court addressed SCL's objections to
the approval of the Settlement Agreement. The Court disagreed
with the SCL Committee's arguments that the valuations of the
Pension Claims, administrative expense allocation and
equalization reserve are unreasonable.
"The proposed settlement may not embody the best possible
compromise in the eyes of the SCL Committee, but it is safely
within the realm of potential litigation outcomes," the Court
held. "[F]urther litigation of the Trustees' proofs of claim
would be complex, lengthy, and expensive, and has already proven
quite costly. Continued wrangling over the Trustees' claims will
promote further delay, expense, and inconvenience, both in this
Court and potentially in foreign jurisdictions," the Court added.
The Court said that his final criteria in approving the Pension
Settlement was considering the paramount interest of creditors.
He noted that the SCL Committee may have objected because it is
"arguably most impacted" by the Pension Settlement, however, it
failed to convince the Court that the Pension Settlement "so
affects [its] position as to be unfair."
"While this settlement paves the way for the Debtors to achieve
confirmation of a plan, the settlement in and of itself does not
constitute a 'sub rosa plan,'" the Court further ruled.
In preparing their joint plan of reorganization, and its recent
amendment, the Debtors assumed that the Court will approve the
Pension Settlement. They believe that consummation of the Plan
is highly unlikely absent settlement of the Pension Claims.
According to the Plan, the Pension Settlement must be approved
prior to the Plan's confirmation.
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 51;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SEA CONTAINERS: Seeks to Waive US$3,000,000 Intercompany Claims
---------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates seek permission from
the United States Bankruptcy Court for the District of Delaware to
forgive US$3,000,000 in intercompany receivables owed by one of
Sea Containers Ltd.'s subsidiaries, Charleston Marine Containers,
Inc. The release is sought in connection with the stock sale of
Charleston to Gichner Systems Group, Inc.
Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, relates that in connection with the
steps they have taken to restructure their operations and divest
their non-core businesses, the Debtors determined to sell
Charleston, which produces specialized marine containers for its
principal customer, the U.S. Department of Defense. Charleston's
products are specially designed for the rapid and easy
transportation of military equipment and meet stringent U.S.
military requirements.
The Debtors determined that Gichner submitted the best offer of
approximately US$6,500,000, subject to working capital and other
adjustments, and subject to final due diligence and
documentation, Mr. Brady informs the Court. He adds that
Gichner and Sea Containers America, Inc., are finalizing the
terms of the Stock Purchase Agreement. SCA is the direct parent
of Charleston.
A portion of the sale proceeds will be used to fund SCA's
obligation under its defined benefit pension plan, currently
estimated to have a funding deficit of US$2,300,000, Mr. Brady
discloses. He relates that on account of the deficit, the
Pension Benefit Guaranty Corporation has asserted significant
unsecured, administrative and priority claims against the
Debtors.
"Along with alleged 'control-group' liability, SCL's liability on
account of the DB Plan could arise on account of alleged
intercompany obligations of SCL to SCA pursuant to a Services
Agreement, which arguably would allow SCA to bring claims against
SCL for any shortfall in employee-related costs, including
pension deficits," Mr. Brady says. As a result, he contends that
consummation of the sale, and the subsequent receipt of proceeds
by SCA, will greatly benefit the bankruptcy estates. He notes
that after repayment of SCA's third party creditors, SCL may also
realize cash proceeds indirectly from the sale.
The need for SCL to release its intercompany claim against
Charleston arises primarily because the deal is structured as a
sale of SCA's equity interests in Charleston, Mr. Brady tells
Court. He explains that the sale of Charleston to Gichner is
structured as a stock sale primarily because it would be very
difficult, if not impossible, for Charleston to assign its
contracts with the Defense Department to an asset purchaser.
The Defense Department's contracts represent the principal source
of revenue for Charleston, and an asset sale would yield very
little value without the ability to assign the contracts, Mr.
Brady argues. He notes that Charleston is party to lease
agreements for manufacturing facility and storage site, which
contain favorable, below-market terms. Hence, he insists, it is
unlikely that an asset purchaser would be able to secure equally
favorable lease terms, which would undoubtedly further reduce the
net purchase price in an asset sale transaction.
In a stock sale, Mr. Brady says, Gichner would inherit
Charleston's intercompany debts. Thus, to facilitate the
transaction, the parties have determined that it is necessary for
SCL to forgive the Intercompany Receivables. He reveals that SCA
and Sea Containers Treasury Limited are also forgiving
intercompany receivables from Charleston in the amounts of
US$6,800,000 and US$1,500,000.
"It is unlikely that a buyer would be willing to purchase the
stock of [Charleston] without resolution of these significant
debt obligations, even with a significant reduction in the
purchase price," Mr. Brady avers. "If the Intercompany
Receivable is not forgiven, even if [Charleston] is able to
locate a buyer of its stock, any sale proceeds may not cover
obligations under the DB Plan . . . or approximately US$1.7
million
of debts owed to other third party creditors," he continues.
Mr. Brady further argues that an asset sale and subsequent wind
down of Charleston would likely result in additional professional
fees and related expenses, which would further reduce the net
proceeds repatriated to SCL, if any.
The Debtors also ask the Court to shorten the notice period with
respect their request. They propose to have the request heard by
the Court on the next omnibus hearing, currently scheduled for
October 2, 2008. Parties have until September 30 to file
objections to the Debtors' request.
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP.
In its schedules filed with the Court, Sea Containers disclosed
total assets of US$62,400,718 and total liabilities of
US$1,545,384,083. (Sea Containers Bankruptcy News, Issue No. 51;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
SEAWAY INSURANCE: Proof of Claim Filing Deadline Is Oct. 10
-----------------------------------------------------------
Seaway Insurance Ltd.'s creditors have until Oct. 10, 2008, to
prove their claims to Jennifer Y. Fraser, the company's
liquidator, or be excluded from receiving any distribution or
payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Seaway Insurance's shareholders agreed on Sept. 22, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
c/o Canon's Court, 22 Victoria Street
Hamilton, Bermuda
SEAWAY INSURANCE: Holding Final Shareholders Meeting on Oct. 30
---------------------------------------------------------------
Seaway Insurance Ltd. will hold its final shareholders meeting on
Oct. 30, 2008, at 9:00 a.m., at Canon's Court, 22 Victoria Street,
Hamilton, Bermuda.
These matters will be taken up during the meeting:
-- receiving an account showing the manner in which the
winding-up of the company has been conducted and its
property disposed of and hearing any explanation that
may be given by the liquidator;
-- determination by resolution the manner in which the books,
accounts and documents of the company and of the liquidator
shall be disposed; and
-- passing of a resolution dissolving the company.
Seaway Insurance's shareholders agreed on Sept. 22, 2008, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
c/o Canon's Court, 22 Victoria Street
Hamilton, Bermuda
=============
B O L I V I A
=============
AMERICAN AIRLINES: Delays Bolivina Flights Due to Political Crises
------------------------------------------------------------------
American Airlines has suspended flights to and from Bolivia due to
the country's political crisis, the Associated Press reports,
citing the company.
According to AP, the airline's Bolivian Sales Manager Edson
Jauregui, disclosed that American's daily flights to and from the
South American country are on hold as a "precaution for the
security of [their] customers, personnel and airplanes."
Regular service, Mr. Jauregui said, they will resume flights on
October 2, though the airline will run a single flight from Miami
to La Paz today, September 29, AP notes.
AP says that American Airlines, which briefly suspended service
when anti-government riots broke out across eastern Bolivia
earlier in September, runs the only daily nonstop flights between
the U.S. and Bolivia.
Based in Fort Worth, Texas, American Airlines Inc., a wholly
owned subsidiary of AMR Corp., operates the largest scheduled
passenger airline in the world with service throughout North
America, the Caribbean, Latin America, Europe and Asia. The
airline flies to Belgium, Brazil, and Japan.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 17, 2008, Fitch Ratings has affirmed AMR Corp.'s Issuer
default rating at 'B-' and Senior unsecured debt at 'CCC/RR6' as
well as its principal operating subsidiary, American Airlines,
Inc.'s Issuer default rating at 'B-' and Secured bank credit
facility at 'BB-/RR1'. Fitch's rating outlook for both AMR
Corp. and American Airlines has been revised to stable from
positive.
As reported in the Troubled Company Reporter-Latin America on
March 26, 2008, Standard & Poor's Ratings Services revised its
outlook on the long-term ratings on AMR Corp. (B/Negative/B-3)
and subsidiary American Airlines Inc. (B/Negative/--) to
negative from positive. S&P also lowered its short-term rating
on AMR to 'B- 3' from 'B-2' and affirmed all other ratings on
AMR and American.
===========
B R A Z I L
===========
BANCO NACIONAL: Grants BRL27.1 Million Financing to MRC Servicos
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA has
approved BRL27.1 million financing to MRC Servicos Ferroviarios
DPRS-AL Ltda. These funds will be used to set up a dry port for
dry bulk warehousing, to be exclusively used by América Latina
Logistica do Brasil S.A. (ALL), at km 5 of BR-277 highway, in the
city of Paranagua/PR. The bank’s funds correspond to 80% of the
project total amount, budgeted in BRL33.9 million. This awesome
development is expected to generate 35 to 60 new jobs in the
region.
The bank’s financial support to MRC is intended to support civil
works, purchase of machines and opening of the warehousing
terminal. After this phase is completed, ALL will rent MRC’s
facilities, will be responsible for maintaining the terminal and
provide cargo storage and handling to customers.
MRC will set up this dry port to streamline ALL S.A. operations at
Paranagua Port. During harvesting periods, between March and
October, around 480 bulk railcars arrive at the port every day
and, according to growth forecasts, a 9% p.a. increase is expected
for the next five years. Located at 6.6 km from the port, the
future warehousing facility will allow decreasing such flow of
railcars and trucks and, as a consequence, the lead-time for ship
unloading.
The new terminal will be capable of receiving up to three
different products at the same time and its operation capacity
will be 1,500 tons of dry bulk/hour. Total warehousing and
shipping capability (rail and road) are, respectively, 100
thousand tons and 20 thousand tons/day, including two different
products simultaneously.
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.
BANCO NACIONAL: Is Up for Capitalization, Gov't Officials Says
--------------------------------------------------------------
Two government officials has disclosed that Brazil is planning to
capitalize national development bank Banco Nacional de
Desenvolvimento Economico e Social SA and federal savings bank
Caixa Economica Federal (CEF), Business News Americas reports.
According to a local paper quoting O Estado de S. Paulo Planning
Minister Paulo Bernardo, BNamericas relates that the government
would like to compensate BNDES for BRL5 billion reais
(US$2.70 billion) in dividend payments to the federal government
this year.
Possible moves, BNamericas says, to capitalize BNDES and CEF were
also promoted by presidential chief of staff Dilma Rousseff.
"The government is perfectly convinced of the possible
availability of resources both for BNDES for long-term investment
in the private sector and CEF for infrastructure and sanitation,"
the paper quoted Ms. Rousseff as saying.
BNDES president Luciano Coutinho had previously said the bank had
enough financial resources to meet demand from the private sector
until the end of the first half of 2009, citing a recently
approved government loan of a BRL15 billion, BNamericas notes.
Banco Nacional de Desenvolvimento Economico e Social SA, aka
BNDES, 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.
DELPHI CORP: Gets Green Light to Halt Pension Contributions
-----------------------------------------------------------
David McLaughlin at Dow Jones Newswires reports that the Hon.
Robert Drain U.S. Bankruptcy Court for the Southern District of
New York granted Delphi Corp. permission on Tuesday to freeze
contributions to pension plans for hourly and salaried workers,
despite an objection by the Committee of Unsecured Creditors.
Dow Jones relates that Delphi will freeze the pension plan for
salaried workers on Sept. 30,2008. Delphi, says Dow Jones, will
freeze the pension plan for hourly workers as soon as an agreement
can be reached with labor unions.
Delphi said that it will save US$4 million per quarter by freezing
the pension plan for hourly workers and US$26 million per quarter
by
freezing the plan for salaried workers, Dow Jones states.
Christopher Scinta at Bloomberg News reports that court documents
indicate that each month the hourly pension plan costs Delphi
about US$1 million.
Delphi will provide workers with replacement plans based on
defined contributions by the company, Dow Jones says.
According to Dow Jones, Robert Rosenberg, an attorney for the
creditors committee, said that the plan for top executives should
be approved as part of Delphi's bankruptcy plan. "Of all the
times to lock in a new program given what's going on in the auto
industry and the capital markets with no knowledge of what reality
is going to look like tomorrow let alone in a year, the timing is
just not appropriate," Dow Jones quoted Mr. Rosenberg as saying.
"It would be patently unreasonable" to create replacement plans
for everyone except 460 top executives, Bloomberg says, citing
Delphi attorney John W. Butler Jr., Esq.
Delphi will also ask the Court to shift US$3.4 billion in pension
liabilities to General Motors Corp., Dow Jones says. Bloomberg
relates that the creditors committee is also opposing revised
agreements that increase the financial contributions GM will make
to Delphi as part of its reorganization to US$10.6 billion from
US$6
billion. Attorneys from Latham & Watkins representing the
creditors said in a court filing that Delphi will "give away
control over the Chapter 11 plan process to GM" in exchange for
financing.
Bloomberg reports that the Court must approve the changes by the
end of September if GM is to take on US$3.4 billion of Delphi's
pension liabilities to block the federal Pension Benefit Guaranty
Corp. from putting a lien on Delphi's foreign assets.
The Court will hold a hearing amending the GM agreements until
Sept. 25, Bloomberg states.
About General Motors
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.
At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total stockholders' deficit of US$56.9 billion. For the quarter
ended June 30, 2008, the company reported a net loss of US$15.4
billion over net sales and revenue of US$38.1 billion, compared to
a net income of US$891.0 million over net sales and revenue of
US$46.6 billion for the same period last year.
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008. The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.
(Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
GOL LINHAS: National Agency Approves Reorganization of VRG & GTA
----------------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A., the parent company of
Brazilian airlines GOL Transportes Aereos S.A. (GTA) and VRG
Linhas Aereas S.A. (VRG), has announced that the National Civil
Aviation Agency issued the prior approval for the corporate
reorganization of its subsidiary companies, GTA and VRG, with a
view to merge them into one single company (Successor Company),
in compliance with the provisions in paragraph 4 of article 157,
of Law no. 6404/76, and in CVM Instruction no. 358/02.
The Reorganization will be effective after the relevant corporate
acts are filed with the competent Commerce Registry.
As announced in the notice of relevant fact of July 30, 2008, the
Reorganization aims at improving operational structure of GOL's
subsidiary companies. The Reorganization will allow increased
efficiency in the air transport services, since it will become
possible to integrate the operations of GTA and VRG, exploit
synergies and broaden and improve service offerings.
The brands "GOL" and "VARIG" will be maintained by the Successor
Company. The Reorganization will not affect in any manner
whatsoever the rights of GOL's shareholders.
Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL
Linhas Areas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) --
http://www.voegol.com.br-- through its subsidiary, GOL
Transportes Aereos S.A., provides airline services in Brazil,
Argentina, Bolivia, Uruguay, and Paraguay. The company's
services include passenger, cargo, and charter services. As of
March 20, 2006, Gol Linhas provided 440 daily flights to 49
destinations and operated a fleet of 45 Boeing 737 aircraft.
The company was founded in 2001.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 11, 2008, Moody's Investors Service has downgraded all debt
ratings of GOL Linhas Aereas Inteligentes S.A. and GOL Finance --
Corporate Family Rating to B1 from Ba3. At the same time, all
ratings were placed under review for possible further downgrade.
SADIA SA: Picks Ely David Mizrahi as Domestic Market Director
-------------------------------------------------------------
Sadia S.A.'s Board of Directors, on a September 24 meeting, has
elected Ely David Mizrahi as Director of Domestic Market Food
Service, for a term of office until the next Ordinary General
Meeting of Shareholders to be held in 2009.
During the meeting, it was resolved that payment of interest on
net equity would be examined at the next meeting of the Board of
Directors to be held in October.
About Sadia
Headquartered in Sao Paulo, Brazil, Sadia S.A. --
http://www.sadia.com-- operates in the agro industrial and food
processing sectors in Brazil and primarily produces a range of
processed products, poultry, and pork. The company distributes
around 1,000 different products through distribution and sales
centers located in Brazil, China, Japan and Italy.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 24, 2008, Moody's affirmed its Ba2 local currency corporate
family rating and senior unsecured foreign currency rating for
Sadia S.A., but changed the rating outlook to stable from
positive. The change in outlook was primarily prompted by Moody's
view that margin pressure and negative free cash flow will
postpone Sadia's attainment of improved credit metrics.
TCR-Latin America reported on June 23, 2008, Standard & Poor's
Ratings Services has raised its long-term corporate credit rating
on Brazilian food producer Sadia S.A. to 'BB+' from 'BB'. The
rating on the company's US$250 million notes was also raised
to 'BB+'. The outlook is stable. Sadia's total debt outstanding
at Dec. 31, 2007, was approximately US$2 billion.
TAM SA: To Initiate Daily Flights to Lima, Peru on October 17
-------------------------------------------------------------
Starting Oct. 17, TAM SA will begin to offer its new daily flight
service to Lima, Peru. The flight will depart from Guarulhos
International Airport in Sao Paulo en route to Jorge Chavez
International Airport in Peru's capital. This will be the 17th
international destination served by TAM.
Modern Airbus A320 aircraft, featuring 12 executive class and 144
economy class seats, for a total capacity of 156 passengers, will
service the route.
The flight will take off from Sao Paulo at 8:25 a.m., and will
land in Lima at 10:35 a.m. The return flight from Lima to Brazil
will depart at 11:45 a.m. and arrive in Sao Paulo at 7:30 p.m.
(local time).
"The start of service to Lima gives continuity to our strategy of
expanding TAM's international network," said TAM's Vice President
of Sales and Planning, Paulo Castello Branco. "Offering
passengers new destinations and possibilities of connections is
part of our search for excellence of service, one of TAM's three
pillars of performance, together with management and technical-
operational excellence."
The schedule for the new flights will allow for connections in
Sao Paulo to destinations served by TAM in Europe (Frankfurt,
Paris, Milan, London and Madrid), as well as locations served by
the airline in South America, particularly Buenos Aires,
Argentina. Beyond this, it will allow for domestic connections
with the principal destinations served by TAM in Brazil.
Executive Class and special services
One thing that sets this route apart is the offering of seats in
Executive Class, which allows passengers to fly to Peru in greater
comfort. Those who fly Executive will also have VIP lounges in
both airports at their disposal.
On board, travelers will have access to every one of TAM's special
services, and will also enjoy additional privileges such as free
cell phone rental, for which they will only be charged for calls
made abroad, and, for passengers in Executive Class, executive car
service in Lima from the airport to the hotel and back. These
services are subject to contract conditions and can be requested
when making reservations with at least 24 hours before flight time
notice.
Promotional fares for the launch of the route will start at US$585
in economy class and US$2,041 in executive class for round trip
service, not including fees. These rates are valid for tickets
issued up to Oct. 17 for flights taken by Dec. 1.
About TAM
TAM S.A. -- http://www.tam.com.br/-- has business agreements
with the regional airlines Pantanal, Passaredo, Total and Trip.
As of Jan. 14, the daily flight on the Corumba -- Campo Grande
route in Mato Grosso do Sul began to be operated by a partnership
with Trip. With the expansion of the agreement with NHT, TAM will
now be serving 82 destinations in Brazil, 45 of which with its own
flights. In addition, the company is strengthening its presence
in Rio Grande do Sul and Santa Catarina.
The company's international operations include direct flights to
17 destinations: New York and Miami (USA), Paris (France), London
(England), Milan (Italy), Frankfurt (Germany), Madrid (Spain),
Buenos Aires and Cordoba (Argentina), Santiago (Chile), Caracas
(Venezuela), Montevideo and Punta del Este (Uruguay), AsunciOn
and Ciudad del Este (Paraguay), and Santa Cruz de la Sierra and
Cochabamba (Bolivia)
* * *
As reported in the Troubled Company Reporter-Latin America on
July 14, 2008, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Brazil-based airline TAM S.A.
to 'BB-' from 'BB'. S&P's outlook is revised to stable from
negative.
As reported in the TCR-Latin America on June 23, 2008, Fitch
Ratings affirmed the 'BB' Foreign and Local Currency Issuer
Default Ratings of TAM S.A. Fitch also affirmed the 'BB' rating
of its US$300 million senior unsecured notes due in 2017 as well
as the company's 'A+(bra)' national scale rating and its first
debentures issuance of BRL500 million. Fitch revised its rating
outlook to negative from stable.
==========================
C A Y M A N I S L A N D S
==========================
BIG ROOKIE: Holding Final Shareholders Meeting on Oct. 2
--------------------------------------------------------
Big Rookie SPC will hold its final shareholders meeting on Oct. 2,
2008, at the offices of Maples Finance Limited, Boundary Hall,
Cricket Square, George Town, Grand Cayman, Cayman Islands.
The accounting of the wind-up process will be taken up during the
meeting.
Big Rookie's shareholders agreed on June 13, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril and Giles Kerley
c/o Maples Finance Limited,
P.O. Box 1093GT, Grand Cayman,
Cayman Islands
CRIUS LTD: Will Hold Final Shareholders Meeting on Oct. 2
---------------------------------------------------------
Crius Ltd. will hold its final shareholders meeting on Oct. 2,
2008, at the offices of Maples Finance Limited, Boundary Hall,
Cricket Square, George Town, Grand Cayman, Cayman Islands.
The accounting of the wind-up process will be taken up during the
meeting.
Crius' shareholders agreed on July 10, 2008, to place the company
into voluntary liquidation under The Companies Law (2004 Revision)
of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril and Giles Kerley
c/o Maples Finance Limited,
P.O. Box 1093GT, Grand Cayman,
Cayman Islands
CRIUS INVESTMENT: Holds Final Shareholders Meeting on Oct. 2
------------------------------------------------------------
Crius Investment Ltd. will hold its final shareholders meeting on
Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary
Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands.
The accounting of the wind-up process will be taken up during the
meeting.
Crius Investment's shareholders decided on July 10, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril and Giles Kerley
c/o Maples Finance Limited
P.O. Box 1093
Grand Cayman, Cayman Islands
GLOBAL ASCENT: Setting Final Shareholders Meeting for Oct. 2
------------------------------------------------------------
Global Ascent 31 Ltd. will hold its final shareholders meeting on
Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary
Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands.
The accounting of the wind-up process will be taken up during the
meeting.
Global Ascent's 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:
Jan Neveril and Giles Kerley
c/o Maples Finance Limited,
P.O. Box 1093GT, Grand Cayman,
Cayman Islands
HARUMI INVESTMENT: Final Shareholders Meeting Is on Oct. 2
----------------------------------------------------------
Harumi Investment 1 Ltd. will hold its final shareholders meeting
on Oct. 2, 2008, at the offices of Maples Finance Limited,
Boundary Hall, Cricket Square, George Town, Grand Cayman, Cayman
Islands.
The accounting of the wind-up process will be taken up during the
meeting.
Harumi Investment's shareholders decided on July 10, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Jan Neveril and Giles Kerley
c/o Maples Finance Limited
P.O. Box 1093
Grand Cayman, Cayman Islands
MAINSAIL II: Sale Signals Cont'd. Storms in Mortgage-Backed Debts
-----------------------------------------------------------------
A sale of about US$630 million of Mainsail II Limited's assets has
highlighted that, whatever relief might have been seen in the last
days, the value of this kind of mortgage-backed debt remains
heavily distressed, Anousha Sakoui writes for The Financial Times.
Investors face losses of 75% of the value of the once top-rated
debt they bought issued by the structured investment vehicle (SIV)
known as Mainsail II, which fell into receivership after the
credit crunch led to a fall in the value of its asset portfolio.
The investors include treasury departments of some leading U.S.
companies and government entities, based on a description by one
person close to the restructuring, FT says.
Receivers KPMG LLP (UK) pressed ahead with an auction, in spite of
the market turmoil, illustrating investors' eagerness to dump
toxic assets, even at low prices, on expectations valuations will
not improve.
After receiving indicative bids of about 20% of face value on
September 22 for the securities, 12 banks bid 16.35% on the day of
the auction, FT relates, citing a person familiar with the sale.
Investors holding senior debt can hope to recover just over 25% of
the original investment by cashing out of the vehicle. Some 45%
of the US$1.4 billion face value of the portfolio of assets were
sold at the New York auction.
FT states that the sale is the third in a series of auctions being
held as part of a restructuring of five SIVs, holding about US$18
billion of assets, that collapsed as a result of the credit
crunch.
Based on the FT report, Mainsail II agreed in August to implement
a restructuring arranged by Goldman Sachs. Investors in the
vehicle had a range of options, including taking a cash pay-out or
reinvesting in a new vehicle through a so-called pass-through
note. The assets not sold will be transferred to a new vehicle
set up by Goldman Sachs, which will issue the pass-through notes.
About Mainsail II
Mainsail II Limited is a Cayman Islands registered Structured
Investment Vehicle with no employees which invested in a
portfolio of assets consisting largely of mortgage backed
securities. Mainsail II is a US$1.4 billion vehicle originally
run by Solent Capital in London.
As reported by the Troubled Company Reporter-Latin America on
April 8, 2008, Kris Beighton of KPMG in the Cayman Islands and
Richard Heis and Mick McLoughlin of KPMG LLP (UK) have been
appointed joint receivers of Mainsail II Limited. The appointment
was made after a drop in the market value of the company's
investment portfolio which breached enforcement triggers.
The appointment of receivers was made by The Bank of New York as
Security Trustee following the direction of a majority of the
senior secured creditors.
PARMALAT SPA: Hikes Share Capital by EUR117,199
-----------------------------------------------
Parmalat S.p.A. has communicated that, following the allocation of
shares to creditors of the Parmalat Group, the subscribed and
fully paid up share capital has now been increased by EUR117,199
to EUR1,667,785,135 from EUR1,667,667,936. The share capital
increase is due to the assignation of 79,998 shares and to the
exercise of 37,201 warrant.
The latest status of the share allotment is as follows:
Number 28,245,192 shares representing approximately 1.7% of the
share capital are still in a deposit account c/o Parmalat S.p.A.,
of which:
* 13,053,678 or 0.8% of the share capital, registered in the
name of individually identified commercial creditors, are
still deposited in the intermediary account of Parmalat
S.p.A. centrally managed by Monte Titoli (compared with
13,114,722 shares as of Aug. 29, 2008);
* 15,191,514 or 0.9% of the share capital registered in the
name of the Foundation, called Fondazione Creditori
Parmalat, of which:
-- 120,000 shares representing the initial share capital
of Parmalat S.p.A. (unchanged);
-- 15,071,514 or 0,9% of the share capital that pertain
to currently undisclosed creditors (compared with
15,169,657 shares as of Aug. 29, 2008).
About Parmalat
Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months. It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.
The company's U.S. operations filed for chapter 11 protection on
Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors. When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200
million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on Dec. 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.
Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A. The Finance Companies are under
separate winding up petitions before the Grand Court of the
Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Ltd. serve as Joint Provisional Liquidators in the
cases. On Jan. 20, 2004, the Liquidators filed Sec. 304
petition, Case No. 04-10362, in the United States Bankruptcy
Court for the Southern District of New York. In May 2006, the
Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq.,
at Janvey, Gordon, Herlands Randolph, represent the Finance
Companies in the Sec. 304 case.
TMN FUNDING: Will Hold Final Shareholders Meeting on Oct. 2
-----------------------------------------------------------
TMN Funding 2000 Corp. will hold its final shareholders meeting on
Oct. 2, 2008, at the offices of Maples Finance Limited, Boundary
Hall, Cricket Square, George Town, Grand Cayman, Cayman Islands.
The accounting of the wind-up process will be taken up during the
meeting.
TMN Funding's shareholders decided on July 1, 2008, to place the
company into voluntary liquidation under The Companies Law (2004
Revision) of the Cayman Islands.
The liquidators can be reached at:
Guy Major and Giles Kerley
c/o Maples Finance Limited
P.O. Box 1093
Grand Cayman, Cayman Islands
=========
C H I L E
=========
COEUR D'ALENE: Asks Supreme Court to Terminate Permitting Process
-----------------------------------------------------------------
Coeur d'Alene Mines Corporation, due to further substantial delay
in the Environmental Assessment process triggered by a federal
agency's recent actions, has requested the Forest Service to
terminate the permitting process for a potential alternative
Kensington paste tailings plan. The Company continues to pursue
its original tailings plan for Kensington, which is pending in the
U.S. Supreme Court. A decision on the appeal is expected in the
first or second quarter of 2009.
The alternative paste tailings plan had been originally submitted
to federal agencies for permitting in January 2008, and permits
were expected in the third or fourth quarter, 2008. However, as
part of the federal agencies' comments to the ongoing
Environmental Assessment work, the Environmental Protection Agency
has now stated it wants Coeur to evaluate yet another new and
different alternative for review and raised other issues regarding
the modified plan proposal. The Agency comments triggered
potentially months of delay and substantial issues in completing a
timely modified plan review.
Separately, the U.S. Supreme Court has granted the State of Alaska
and Coeur Alaska's Petitions for a writ of certiorari to review a
Ninth Circuit Court of Appeals decision relating to the original
Kensington 404 tailings permit, which had been determined by the
federal agencies as the environmentally preferred option.
A final Supreme Court decision, expected early next year, may
allow for construction to take place next year, leading to
potential production in late 2009.
Coeur d'Alene Mines Corp. (NYSE:CDE) (TSX:CDM) --
http://www.coeur.com/-- is the world's largest primary silver
producer, as well as a significant, low-cost producer of gold.
The company has mining interests in Nevada, Idaho, Alaska,
Argentina, Chile, Bolivia and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 million notes due
Jan. 15, 2024, carry Standard & Poor's Ratings Services B-
rating.
=======
C U B A
=======
* CUBA: Motorola Sells Phones to Restricted Nations, U.S. SEC Says
------------------------------------------------------------------
The United States Securities and Exchange Commission sent a letter
to Motorola to clarify issues regarding the company allegedly
selling phones to restricted countries, such as Cuba, Iran, Syria
and Sudan, Cellular News reports.
According to report, the letter says that the SEC found a pull-
down menu in the 'Government and Enterprise' section in Motorola's
web site stating that Cuban, Iranian, Sudanese and Syrian can
contact the company to request information on their products.
Cellular News relates, citing the SEC, that Cuba sold phones
purchased in bulk from the company in a March 2008 news report and
Motorola phones were sold in Iran according to a May 2008 news
report.
These restricted countries are prohibited by U.S. law to carry
cell phones and subject to U.S. economic sanctions and export
controls due to the U.S. State Department concerns of sponsoring
terrorism, Cellular News says.
Motorola denies the allegations saying that it doesn't maintain
direct contacts, or have any agreements or commercial arrangements
with these states. The company also added that their Web site has
been fixed to remove the error.
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Fitch Affirms B/B+ Ratings; Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed the Dominican Republic's ratings as:
-- Foreign currency issuer default rating at 'B';
-- Local currency issuer default rating at 'B';
-- Country ceiling at 'B+';
-- Brady bonds at 'B+/RR3';
-- Senior unsecured debt at 'B/RR4';
-- Short-term foreign currency issuer default rating at 'B'.
Fitch has also revised the Rating Outlook to Stable from Positive
for both the Dominican Republic's foreign and local currency
issuer default ratings, reflecting increased concern that the
Dominican Republic's comparatively weak liquidity position
relative to 'B' peers will render the country more vulnerable to
external shocks in an environment of lower global growth and
tighter international liquidity conditions.
"In spite of the swift economic recovery since the Dominican
financial crisis and progress on the structural reform front, a
still fragile liquidity position combined with the recurrence of
sizable twin fiscal and current account deficits this year
constrain the ratings to current levels at this time," said
Theresa Paiz Fredel, Senior Director in Fitch's Sovereign Group.
The Dominican Republic's need for foreign financing has rapidly
increased at a time of worsening global financial conditions.
Fitch expects the current account deficit to continue to expand in
2008, reaching about 8% of GDP. Almost two-thirds of this
increase reflects higher international commodity prices. The oil
tab alone accounted for about 43% of the overall increase in
imports during the first half of 2008. Although the country's
external liquidity ratio has almost tripled since 2004, at 98% it
is still substantially below the 'B' median of 250%, leaving the
country with a relatively thin buffer against an external
financing shock.
Capital inflows were not sufficient to finance the current account
deficit through July as reserves declined by about US$240 million
since year-end 2007. However, foreign direct investment flows
have held up thus far in 2008 and the government will increase
borrowing from bilateral and multilateral lenders in the remaining
months of the year. As the commodity price shock was the main
contributing factor to higher financing needs, expectations for
lower commodity prices will help reduce the country's external
financing requirement over Fitch's forecast horizon.
In addition to the rapid expansion of the current account deficit,
commodity price shocks along with aggregate demand pressures have
also contributed to rising inflation, which peaked at 15% in the
twelve months ending in August. Inflation averaged 10.1% over
this same period. Similarly, the improvement in fiscal balances
will be reversed this year, reflecting the increasing cost of
large and poorly targeted energy subsidies, reconstruction costs
and higher expenditure in the run-up to the elections. Fitch
expects the fiscal deficit to reach 2.1% of GDP this year.
Despite continued progress toward strengthening the policy
framework, the authorities must manage these vulnerabilities
carefully to ensure the maintenance of macroeconomic stability
over the medium-term.
Looking ahead, the Dominican Republic's ratings would benefit from
stronger external liquidity. Maintenance of an appropriate policy
response which resolves near-term challenges such as increasing
inflation, as well as fiscal and external financing pressures
would be supportive of the sovereign's ratings to the extent that
it bolsters confidence. Though not Fitch's base case scenario,
marked downward pressure on the peso or an erosion of
international reserves would be negative for the ratings. These
pressures could materialize from a continued widening of the
current account deficit, as well as a sharp decline in non-debt
creating capital inflows or a return of capital flight.
=================
G U A T E M A L A
=================
CLAIRE'S STORES: Posts US$16.9 Mil. Net Loss in Qtr. Ended Aug. 2
-----------------------------------------------------------------
Claire's Stores, Inc., reported its financial results for the 2008
second quarter ending August 2, 2008, posting a net loss of
US$16.93 million on net sales of US$359.97 million. Effective
with the fiscal quarter ended May 3, 2008, the company has changed
its fiscal year naming convention to coincide with the calendar
year in which the fiscal year begins. Accordingly, the current
fiscal quarter is referred to as the 2008 second quarter and the
comparable prior year quarter is referred to as the 2007 second
quarter.
Second Quarter Results
The company reported net sales of US$360.0 million for the 2008
second quarter, a 1.5% decrease from the 2007 second quarter. The
decrease was primarily attributable to a decline in same store
sales, partially offset by the growth in its new store base and
the effect of foreign currency translation.
Consolidated same store sales declined 5.8% in the 2008 second
quarter. A decline in average transactions per store of 12.0%,
was partially offset by a 7.5% increase in average sales per
transaction. The increase in sales per transaction reflects the
company's strategy to increase average ticket through good, better
and best price tiering. The decline in the number of transactions
reflects both weaker mall traffic and less reliance on low margin,
low dollar value promotional transactions. In North America, same
store sales decreased 8.1%, with sales at Claire's stores
declining less than at Icing stores. European same store sales
declined 1.7%. The company computes same store sales on a local
currency basis, which eliminates any impact from changes in
foreign exchange rates.
Chief Executive Officer Gene Kahn said, "In the second quarter, we
saw an improvement in the tone of business as our comparable store
sales improved during each month of the quarter and our
merchandise margin increased. We also successfully completed phase
one of our Pan-European Transformation project. As a result, we
now have an integrated team managing our European business, and a
more focused North American merchandising team, within which there
are now dedicated groups responsible for each of our Claire's and
Icing brands. We launched our Cost Savings Initiative during the
quarter and are on target to achieve our previously announced
goals of US$15 million of expense reductions this year and an
annualized amount in excess of US$40 million.
"I would also like to note, in the 14 months since the transaction
was completed, we have made significant progress in upgrading our
management team and refining our organizational structure,
creating a strong foundation to sustain us through this difficult
retail environment and positioning us to reach our performance
goals."
The gross profit percentage was flat at 49.9% for both 2008 and
2007 second quarters. A 290 basis point increase in the
merchandise margin was offset by an equal increase in occupancy
and buying costs. Excluding US$1.4 million of non-recurring costs
related to the PET project, gross profit percentage increased to
50.3%.
Selling, general and administrative expenses increased 7.2% to
US$132.4 million in the second quarter of Fiscal 2008 compared to
US$123.5 million in last year's comparable fiscal quarter.
Adjusting for changes in foreign exchange rates and excluding
US$2.0 million of non-recurring PET costs, US$1.7 million of
expense relating to CSI, and US$0.3 million of additional sponsor
management fees this fiscal quarter compared to the 2007 second
quarter, SG&A increased US$0.9 million or 0.7%.
Adjusted EBITDA in the 2008 second quarter was US$58.1 million
compared to US$64.3 million in the 2007 second quarter. The
company defines Adjusted EBITDA as earnings before interest,
income taxes, depreciation and amortization, excluding the impact
of transaction related costs incurred in connection with its May
2007 acquisition and other non-recurring or non-cash expenses, and
normalizing occupancy costs for certain rent-related adjustments.
At August 2, 2008 the company's US$200 million revolving credit
facility was undrawn and fully available aside from an ongoing
US$5.9 million letter of credit in connection with the company's
self-insured workers' compensation program. Cash and cash
equivalents were US$35.2 million.
During the 2008 second quarter, cash used in operating activities
was US$12.0 million, compared with cash used in operating
activities of US$59.5 million during the 2007 second quarter. The
change in cash used in operating activities was impacted by an
increase in operating income, due primarily to a decrease in
transaction-related costs, and a decrease in working capital,
partially offset by higher interest expense paid on the debt
incurred to fund the acquisition of the company. Capital
expenditures during the 2008 second quarter were US$16.0 million,
of which US$9.2 million related to new store openings and
remodeling projects. Capital expenditures during the 2007 second
quarter were US$24.6 million.
As of Aug. 2, 2008, the company's balance sheet showed
US$3,342,990,000 in total assets, US$2,542,492,000 in total
liabilities and US$568,759,000 in total stockholders' equity.
A full-text copy of the company's financial statements on Form 10-
Q is available for free at http://researcharchives.com/t/s?3282
Amendment to Stock Incentive Plan
On September 9, 2008, the board of directors and stockholders of
Claire's Inc., the parent of Claire's Stores, Inc. adopted an
amendment to Parent's Amended and Restated Stock Incentive Plan to
increase the number of shares available for issuance to 8,200,000
shares.
About Claire's Stores
Headquartered in Pembroke Pines, Florida, Claire's Stores Inc.
(NYSE: CLE) -- http://www.clairestores.com/-- is a specialty
retailer of value-priced jewelry and accessories for girls and
young women through its two store concepts: Claire's and Icing.
While the latter operates only in North America, Claire's operates
worldwide. As of May 3, 2008, Claire's Stores, Inc. operated
3,053 stores in North America and Europe. Claire's Stores Inc.
also operates through its subsidiary, Claire's Nippon Co. Ltd.,
201 stores in Japan as a 50:50 joint venture with AEON Co. Ltd.
The company also franchises 169 stores in the Middle East, Turkey,
Russia, South Africa, Poland and Guatemala.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 31, 2008, Moody's Investors Service downgraded Claire's
Stores, Inc.'s, ratings, including its probability of default
rating to Caa1 from B3 and speculative grade liquidity rating to
SGL-4 from SGL-3. In addition, Claire's long term ratings were
placed on review for further possible downgrade.
The TCR related on May 6, 2008, that Standard & Poor's Ratings
Services lowered its corporate credit rating on Claire's Stores
Inc. to 'B-' from 'B'. At the same time, S&P lowered the ratings
on the company's US$1.65 billion senior secured credit facilities
to 'B' from 'B+', its US$600 million senior unsecured notes to
'CCC+' from 'B-', and its US$335 million senior subordinated notes
to 'CCC' from 'CCC+'. S&P said the outlook is negative.
=============
J A M A I C A
=============
CABLE & WIRELESS: Eyes Caribbean Operations Renamed as LIME
-----------------------------------------------------------
Cable & Wireless plc is considering rebranding its Caribbean
operations with the acronym LIME, which stands for landline,
internet, mobile, entertainment, Business News Americas reports,
citing local daily Trinidad Express.
According to BNamericas, the company previously announced sweeping
changes to its structure in the Caribbean after disappointing
results in fiscal 2008, ending March 31. Jamaica in particular
showed poor results.
BNamericas says speculation abounds that Mexican giant America
Movil, which has entered the Caribbean market through the
acquisition of MiPhone in Jamaica and PRT in Puerto Rico, may be
eyeing the acquisition of C&W's Caribbean operations.
Jose Otero, president of consultancy Signals Consulting, told
BNamericas that the two main candidates for acquiring C&W's
Caribbean assets would be regional giants America Movil and
Telefonica.
Mr. Otero explained that the revamping of C&W's Caribbean
operations goes beyond the new brand name. The company is trying
to regain some of the territory lost in one of their key regions
in terms of revenues to the likes of Digicel, he added, as cited
by BNamericas.
Cable & Wireless is planning to invest US$400 million over the
next three years in upgrading infrastructure across its 13
Caribbean units, BNamericas notes.
Specifically, BNamericas relates, the company reached a
US$40 million deal with Nokia Siemens Networks last year to
deliver wireless network services to the Caribbean.
New services will provide another revenue source for the operator,
BNAmericas says, citing Mr. Otero.
About Cable & Wireless
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.
===========
M E X I C O
===========
PILGRIM'S PRIDE: Stops Trading on NYSE After Shares Drop 38%
------------------------------------------------------------
Choy Leng Yeong at Bloomberg News reports that trading in
Pilgrim's Pride Corp. shares were halted on the New York Stock
Exchange on Wednesday after the stock dropped 38%.
Emily Fredrix at The Associated Press relates that the shares fell
US$3.90, or 38%, "to US$6.36 by the time trading was halted on
volume
of nearly 13.2 million shares, compared to normal volume of nearly
2.2 million." According to Lauren Etter at The Wall Street
Journal, trading of the stock halted at US$6.36 per share, "after
dipping to a 52-week intraday low of US$6.06, compared with its
52-
week intraday high of US$35.98." Carl Gutierrez at Forbes states
that investors kept running fast from Pilgrim's Pride on Thursday,
sending its share price plummeting 39.9%, or US$2.54, to US$3.82,
in morning trading. The stock drop was prompted by investor
concerns that the U.S. financial crisis would limit the company's
access to credit, Reuters relates.
Pilgrim's Pride said in a statement that, based on preliminary
results, it notified its lenders that it expects to report a
significant loss in the fiscal fourth quarter ending Sept. 27,
2008. The company attributed the anticipated loss to high feed-
ingredient costs, continued weak pricing, and demand for breast
meat, and the significant negative impact of hedged grain
positions during the quarter.
Bloomberg relates that Pilgrim's Pride posted a US$52.8 million
loss in the three months through June 28, 2008, as corn and
soybean prices increased the costs of raising poultry. According
to Bloomberg, the loss was the company's third in a row.
Pilgrim's Pride has cut weekly processing capacity by 5% to stem
losses, Bloomberg states.
As a result of the expected loss, Pilgrim's Pride released a
statement, telling its lenders that it does not expect to be in
compliance with its fixed-charge coverage ratio covenant under its
principal credit facilities as of the fiscal year ending Sept. 27,
2008, but it expects to be in compliance with all other covenants
as of the end of the 2008 fiscal year.
Bloomberg states that Pilgrim's Pride took on debt and surpassed
its rival, Tyson Foods Inc., in terms of production when it
purchased Gold Kist Inc. in Atlanta for US$1.1 billion in January
2007. The company's long-term debt, according to a filing with
the U.S. Securities and Exchage Commission, was US$1.52 billion as
of June 28, 2008. The filing says that Pilgrim's Pride has a
market value of US$471 million and had US$341.4 million available
to borrow from various credit lines as of July 29, 2008.
Bloomberg says that Pilgrim's Pride must keep various measures of
creditworthiness above set levels to avoid violating its credit
agreements. Pilgrim's Pride said in its SEC filing that in April,
the covenants were adjusted to levels that the company "can
comply with in the near-term despite the current economic issues
facing the chicken industry."
Pilgrim's Pride said in a statement that it believes it has
reached an understanding with the agents under its credit
facilities to temporarily waive the fixed-charge coverage ratio
covenant through Oct. 28, 2008, and to provide continued liquidity
under these facilities during this same period. The temporary
waiver will be subject to the negotiation of a definitive written
agreement with the lenders, and there can be no assurance that
this negotiation will result in a waiver acceptable to Pilgrim's
Pride and its lenders. Failure to obtain a waiver or amendment of
this covenant may preclude the company from drawing funds under
these facilities and permit the lenders to declare an event of
default, either of which would have a material adverse effect on
the company.
"The stock decline is based on concerns they're going to trigger
some of their debt covenants, and they may have difficulty getting
waivers in this credit environment," Bloomberg quoted BB&T Capital
Markets analyst Heather Jones as saying.
About Pilgrim's Pride
Headquartered in Pittsburgh, Texas, Pilgrim's Pride Corporation
(NYSE: PPC) -- http://www.pilgrimspride.com/-- produces,
distributes and markets poultry processed products through
retailers, foodservice distributors and restaurants in the U.S.,
Mexico and in Puerto Rico. Pilgrim's Pride employs about 40,000
people and has major operations in Texas, Alabama, Arkansas,
Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania,
Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, with
other facilities in Arizona, Florida, Iowa, Mississippi and Utah.
* * *
As reported in the Troubled Company Reporter on Sept. 8, 2008,
Moody's Investors Service placed under review for possible
downgrade the ratings of Pilgrim's Pride Corporation, including
the company's B1 corporate family rating and probability of
default rating. LGD assessments are also subject to adjustment.
The review action is based on Moody's concern that profitability
could erode more severely in fiscal 2008 than previously
contemplated based on volatile and still high grain costs and
uncertainty about the extent to which domestic chicken market
prices rise to offset input costs.
As reported in the Troubled Company Reporter on June 24, 2008,
Standard & Poor's Ratings Services placed its 'BB-' corporate
credit rating Pilgrim's Pride Corp. on CreditWatch with negative
implications.
====================
P U E R T O R I C O
====================
CENTRO RENAL: Case Summary & Two Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Centro Renal de Santurce
MSC 536 El Se?orial Mail Sta. #138
Winston Churchill Avenue
San Juan, PR 00926
Bankruptcy Case No.: 08-06315
Chapter 11 Petition Date: September 24, 2008
Court: District of Puerto Rico (Old San Juan)
Debtor's Counsel: Carlos Rodriguez Quesada, Esq.
cerqlaw@coqui.net
Law Office of Carlos Rodriguez Quesada
PO Box 9023115
San Juan, PR 00902-3115
Tel: (787) 724-2867
Total Assets: US$2,000,000
Total Debts: US$2,165,000
A list of the Debtor's largest unsecured creditors is available
for free at:
http://bankrupt.com/misc/prb08-06315.pdf
HOME INTERIORS: Details Plans to Split Up; Officers to Submit Bids
------------------------------------------------------------------
Brendan M. Case of The Dallas Morning News reported that
Carrollton-Tex. based Home Interiors & Gifts Inc. said Monday that
it plans to split itself up. The report also said that executives
at the firm are expected to submit bids for some of the company's
assets.
"Parts of this thing are probably worth more than the whole," said
William Snyder, the company's chief restructuring officer.
Mr. Snyder said that the new plan could spell more layoffs at the
company's headquarters.
Under the new plan, the company's U.S., Canada and Puerto Rico
business assets will be sold as as single unit. According to Mr.
Case, a group connected with Robin Crossman, the company's
president and chief executive, will bid for some of these assets.
The company's Mexican unit will be offered separately. Domistyle
Inc., a Dallas manufacturer and distributor of home fragrances and
decor accessories, will be offered as an independent company. The
Laredo Candle unit will be offered as a separate entity, although
it may be included in the Domistyle sale.
Mr. Snyder said Home Interiors' largest shareholder and creditor,
Highland Capital Management LP of Dallas, supports the plan.
In a press release dated Sept. 22, 2008, the company disclosed
that it has requested the U.S. Bankruptcy Court for the Northern
District of Texas for authority to employ the investment banking
firm Houlihan Lokey Howard & Zukin Capital, Inc. to manage the
sale process.
About Home Interiors
Headquartered in Carrollton, Texas, Home Interiors & Gifts, Inc.
-- http://www.homeinteriors.com/-- manufactures, imports and
distributes indoor and outdoor home decorative accessories. It
was founded by Mary Crowley in 1957. Through its affiliates,
the company has a significant presence in Mexico, Puerto Rico,
and Canada. Annual revenue in 2007 reached US$300 million. When
Mary Crowley, died in 1986, her son, Don Carter continued the
business operation nearly debt-free. In a leveraged transaction
in 1998, private equity firm of Hicks, Muse, Tate, and Furst
acquired 66% of the parent company, which resulted in the
imposition of more than US$500 million in debt on the Debtors. In
the face of decreased sales and increased debt load, bondholders
canceled their debts in February 2006 in exchange for receiving
most of the outstanding equity of the Debtors.
About 40% of the goods the Debtors sell are now acquired from
manufacturers in China. In the last decade, sales volume in the
U.S. has waned, but the Debtors reported that sales in Mexico
and Puerto Rico significantly increased.
The company and six of its affiliates filed for Chapter 11
protection on April 29, 2008 (Bankr. N.D. Tex. Lead Case No.
08-31961). Andrew E. Jillson, Esq., Cameron W. Kinvig, Esq.,
Lynnette R. Warman, Esq., and Michael P. Massad, Jr., Esq., at
Hunton & Williams, LLP, represent the Debtors in their
restructuring efforts. The U.S. Trustee for Region 6 has
appointed seven creditors to serve on an Official Committee
of Unsecured Creditors. Richard A. Lindenmuth, at Boulder
International LLC, is designated as CRO. Munsch Hardt Kopf &
Harr PC represents the Committee in these cases. When the
Debtors file for protection against their creditors, they
listed assets of between US$100 million and US$500 million and the
same range of debts.
ICFQ DESARROLLOS: Files Amended Disclosure Statement
----------------------------------------------------
ICFQ Desarrollos Carraizo Inc. delivered to the U.S. Bankruptcy
Court for the District of Puerto Rico an Amended Disclosure
Statement explaining its Amended Plan of Reorganization.
Means for Implementation of the Plan
After the payment of its Administrative Expense Claims, Tax Claims
and Secured Claims, the Debtor will satisfy its General Unsecured
Claims to the extent of available funds arising from the proceeds
of its Mansiones de Carraizo Project and Debtor's Claims and
Causes of Action.
Treatment of Claims
Under the Plan, the Debtor proposes to pay Administrative Expense
Claims, Professional Fee Claims, and Priority Tax Claims in full.
The Debtor discloses that it does not anticipate any Class 1
Priority Claims. However, a holder of such claim will be able to
get an amount equal to its claim on the later of the effective
date and the date such priority claim becomes an Allowed Priority
Claim, or as soon as practicable.
The Class 2 Claim, consisting of US$2,375,410 of the principal and
US$635,000 of interest, arises from the Debtor's construction loan
from Banco Bilbao Vizcaya Argentaria and is secured by the land of
the Mansiones de Carraizo and Mirador del Lago projects. BBVA's
secured claim will be paid by available proceeds. If the claim
will not be satisfied in full, the claim will be treated as a
Class 3 claim and will be paid as such.
Class 3 Claims, consisting of all Allowed General Unsecured
Claims, are estimated to be approximately US$1,302,396. Holders
of these claims will receive their pro rata share of the funds
after payment of Administrative Expense Claims, Priority Tax
Claims, and Classes 1 and 2. These claims will be paid in full
within 24 months from the effective date from funds originating
from the Debtor's Mansiones de Carraizo project, including the
expected US$1,500,000 to US$2,000,000 profit and from remaining
funds arising from the Debtor's Claims and Causes of Action.
Equity holders under Class 4 will retain their interest in the
Debtor.
A full-text copy of the Amended Plan of Reorganization is
available for free at http://researcharchives.com/t/s?32c0
About ICFQ
Based Caguas, Puerto Rico, real estate developer ICFQ Desarrollos
Carraizo, Inc., filed for Chapter 11 protection on July 3, 2008
(Bankr. D. P.R. Case No. 08-04351). Charles A. Cuprill, P.S.C.,
Law Offices, serves as the Debtor's bankruptcy counsel. When the
Debtor filed for protection from its creditors, it listed
estimated assets of US$55,985,918 and debts of US$3,687,843.
=================
V E N E Z U E L A
=================
GENERAL MOTORS: Delphi Wants to Shift US$3.4BB in Pension Debts
-------------------------------------------------------------
Delphi Corp will ask the U.S. Bankruptcy Court for the Southern
District of New York to shift US$3.4 billion in pension
liabilities to General Motors Corp., David McLaughlin at Dow Jones
Newswires reports.
According to Dow Jones, the Hon. Robert Drain U.S. Bankruptcy
Court for the Southern District of New York granted Delphi
permission on Tuesday to freeze contributions to pension plans for
hourly and salaried workers, despite an objection by the Committee
of Unsecured Creditors.
Dow Jones relates that Delphi will freeze the pension plan for
salaried workers on Sept. 30,2008. Delphi, says Dow Jones, will
freeze the pension plan for hourly workers as soon as an agreement
can be reached with labor unions.
Delphi said that it will save US$4 million per quarter by freezing
the pension plan for hourly workers and US$26 million per quarter
by freezing the plan for salaried workers, Dow Jones states.
Christopher Scinta at Bloomberg News reports that court documents
indicate that each month the hourly pension plan costs Delphi
about US$1 million.
Delphi will provide workers with replacement plans based on
defined contributions by the company, Dow Jones says.
According to Dow Jones, Robert Rosenberg, an attorney for the
creditors committee, said that the plan for top executives should
be approved as part of Delphi's bankruptcy plan. "Of all the
times to lock in a new program given what's going on in the auto
industry and the capital markets with no knowledge of what reality
is going to look like tomorrow let alone in a year, the timing is
just not appropriate," Dow Jones quoted Mr. Rosenberg as saying.
"It would be patently unreasonable" to create replacement plans
for everyone except 460 top executives, Bloomberg says, citing
Delphi attorney John Butler Jr.
Bloomberg relates that the creditors committee is also opposing
revised agreements that increase the financial contributions GM
will make to Delphi as part of its reorganization to US$10.6
billion from US$6 billion. Attorneys from Latham & Watkins
representing the creditors said in a court filing that Delphi will
"give away control over the Chapter 11 plan process to GM" in
exchange for financing.
Bloomberg reports that the Court must approve the changes by the
end of September if GM is to take on US$3.4 billion of Delphi's
pension liabilities to block the federal Pension Benefit Guaranty
Corp. from putting a lien on Delphi's foreign assets.
The Court adjourned a hearing amending the GM agreements until
Sept. 25, Bloomberg states.
About General Motors
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.
At June 30, 2008, the company's balance sheet showed total assets
of US$136.0 billion, total liabilities of US$191.6 billion, and
total
stockholders' deficit of US$56.9 billion. For the quarter ended
June 30, 2008, the company reported a net loss of US$15.4 billion
over net sales and revenue of US$38.1 billion, compared to a net
income of US$891.0 million over net sales and revenue of US$46.6
billion for the same period last year.
About Delphi Corp.
Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ)
-- http://www.delphi.com/-- is the single supplier of vehicle
electronics, transportation components, integrated systems and
modules, and other electronic technology. The company's
technology and products are present in more than 75 million
vehicles on the road worldwide. Delphi has regional
headquarters in Japan, Brazil and France.
The company filed for Chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represent the Official Committee of Unsecured Creditors. As of
June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000
in total assets and US$23,742,000,000 in total debts.
The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the
solicitation of votes on the First Amended Plan on Dec. 20,
2007. The Court confirmed the Debtors' First Amended Plan on
Jan. 25, 2008. The Plan has not been consummated after a group
led by Appaloosa Management, L.P., backed out from their
proposal to provide US$2,550,000,000 in equity financing to
Delphi.
(Delphi Bankruptcy News; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
GENERAL MOTORS: May Lack Cash, Hires Outsider to Help Cut Costs
---------------------------------------------------------------
Sharon Terlep at The Wall Street Journal reports that General
Motors Corp. has hired an outside company to help find ways to
reduce spending. GM didn't name the company.
According to WSJ, GM is acccelerating its US$10 billion cost-
cutting plan. WSJ relates that GM investors are concerned that
the company's cash is insurricient to withstand the current
downturn, sparked by the company's latest move to draw US$3.5
billion from its credit facilities. GM's Treasurer Walter Borst
explained that GM made the move because of turmoil in financial
markets and "it seemed like a good time to take the money in house
and make sure it was available if and when we need it," WSJ says.
Mr. Borst said that GM remains on track to boost its liquidity by
US$15 billion by 2009 through cost cuts, asset sales, and by
tapping financial markets, WSJ states.
As part of plans to raise US$4 billion through asset sales, GM is
looking to sell a parts factory in Strasbourg, France, along with
GM's Hummer truck brand, WSJ says, citing Mr. Borst. According to
the report, Mr. Borst said GM is considering to sell other assets
and will disclose plans in the fourth quarter.
WSJ reports that GM is on schedule with its plan to cut
US$1.5 billion in costs by year-end and will make further custs
in 2008. GM, says WSJ, has already reduced production,
suspending plans to develop a next generation of pickup truck.
About General Motors
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.
At June 30, 2008, the company's balance sheet showed total
assets of US$136.0 billion, total liabilities of US$191.6 billion,
and total stockholders' deficit of US$56.9 billion. For the
quarter ended June 30, 2008, the company reported a net loss of
US$15.4 billion over net sales and revenue of US$38.1 billion,
compared to a net income of US$891.0 million over net sales and
revenue of US$46.6 billion for the same period last year.
As reported in the Troubled Company Reporter on Sept. 24, 2008,
Fitch Ratings 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.
PETROLEOS DE VENEZUELA: To Possibly Form Consortium With Gazprom
----------------------------------------------------------------
Petroleos de Venezuela S.A. would formed a consortium with Russian
counterpart Gazprom following Venezuela and Russia's plan to sign
an agreement that would create one of the largest oil consortiums
in the world, Business News Americas reports, citing state news
agency ABN.
Venezuelan's President Hugo Chavez, as cited by BNamericas, said
the joint venture would make "high level" investments in the
energy sector.
BNamericas relates that Gazprom announced last week its
involvement in one of three LNG trains being developed in the
country. The company is also part of a JV that was awarded two
new natural gas blocks to provide gas to the train.
Meanwhile, Russia and Venezuela, according to press reports, are
scheduled to conduct joint military tests and Russia has offered
to help Venezuela study nuclear energy.
About Gazprom
Headquartered in Moscow, Russia, OAO Gazprom Neft, previously
called OAO Siberian Oil Company, -- http://www.gazprom-neft.ru/--
explores, produces, refines, markets, produces and sells petroleum
products. The company holds oilfield exploration and development
licenses in the Yamal-Nenets and Khanti-Mansiisk autonomous
regions, as well as in theOmsk and Tomsk regions, and in Chukotka.
The company's main oil processing center is the Omsk Refinery.
Gazprom Neft is one of Russia's largest oil companies handling
downstream and upstream operations. It was known as Sibneft
before April 2007.
* * *
As reported by the Troubled Company Reporter on July 7, 2008,
Moody's Investors Service upgraded the senior unsecured ratings
of Gazprom Neft JSC, including the rating of Gazprom Neft's
senior unsecured 10.75% US$500 million notes due 01/2009, to
Baa3 from Ba1 with a positive outlook.
As part of the upgrade of the ratings into investment grade, the
Ba1 Corporate Family Rating and Probability of Default Rating
have been withdrawn. The outlook is stable.
About Petroleos de Venezuela
Headquartered in Caracas, Petroleos de Venezuela S.A. --
http://www.pdvsa.com/-- is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and coal
industry, as well as planning, coordinating, supervising and
controlling the operational activities of its divisions, both in
Venezuela and abroad. The company has a commercial office in
China.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 23, 2008, Moody's Investors Service affirmed Petroleos de
Venezuela SA's B1 global local currency issuer rating in
conjunction with the rating agency's review for upgrade of
Venezuela's B1 foreign currency bond ceiling and the government's
B2 foreign currency bond rating. Essentially, the company's
global local currency issuer rating will not be affected by the
sovereign review.
The TCR-LA reported on April 28, 2008, that Standard & Poor's
Ratings Services affirmed its 'BB-' long-term corporate credit
rating on Petroleos de Venezuela S.A. S&P said the outlook is
stable.
In March 2007, Fitch Ratings gave a BB- rating to PDVSA's
Senior Unsecured debt.
* Sovereign Credit Ratings for Emerging Markets Peaking, S&P Says
-----------------------------------------------------------------
The trend of improving credit fundamentals in emerging market
sovereigns that has prevailed since 2003 appears to have run its
course, according to an article published by Standard & Poor's
Ratings Services titled, "Emerging Market Sovereign Credit: At The
Top Looking Down."
"The credit quality of most of these governments has improved
during this five-year period, and we have raised the ratings most
of them, including six in the last six months," said S&P's credit
analyst John B. Chambers, chairman of the Sovereign Ratings
Committee. "We think that these gains in credit quality will not
be lost, and we are signaling that view with stable outlooks on 33
of 43 emerging market sovereigns," he continued. "However, we do
not see much further upside to the overall credit standing of this
asset class, and a pronounced downside is beginning to appear."
At present, only Poland and the Slovak Republic have positive
outlooks among the emerging market sovereigns covered in this
report. The Dominican Republic, El Salvador, Hungary, Kazakhstan,
Pakistan, Serbia, Sri Lanka, and Vietnam have negative outlooks.
The forecasts for most emerging market sovereigns call for lower
growth, higher inflation, and deteriorating current accounts.
"We've cautioned that global conditions may become less benign,
putting emerging market policymakers to the test," Mr. Chambers
said. "As dislocations in the credit markets of industrialized
nations persist, clouding prospects for the growth of world trade,
that trial is now upon us. If our analysis is correct, this
emerging market class as a whole has peaked in credit quality."
The article includes data on rating trends, rating distribution,
and default experience. It also contains a comment on the factors
that could change a rating or outlook on each of the 43 emerging
market sovereigns discussed, and a bibliography of research
published on emerging market sovereigns by S&P. The article will
appear in the Oct. 8 special issue on emerging markets published
by S&P's CreditWeek.
* BOND PRICING: For the Week September 22 - September 26, 2008
--------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
Alto Palermo SA 7.875 5/11/17 USD 63.38
Argnt-Bocon PR11 2.000 12/3/10 ARS 48.73
Argnt-Bocon PR13 2.000 3/15/24 ARS 43.63
Arg Boden 2.000 9/30/08 ARS 15.61
Arg Boden 7.000 10/3/15 USD 62.42
Argnt-Bocon PR11 2.000 12/3/10 ARS 48.73
Argnt-Bocon PR13 2.000 3/15/24 ARS 43.63
Autopistas Del Sol 11.500 5/23/17 USD 50.25
Bonar Arg $ V 10.500 6/12/12 ARS 65.83
Bonar VII 7.000 9/12/13 USD 70.90
Bonar X 7.000 4/17/17 USD 65.05
Inversiones y Rep 8.500 2/2/17 USD 63.38
Argent-EURDIS 7.820 12/31/33 EUR 48.81
Argent-$DIS 8.280 12/31/33 USD 66.20
Argent-Par 0.630 12/31/38 ARS 31.24
Banco Hipot SA 9.750 4/27/16 USD 63.37
Banco Macro SA 9.750 12/18/36 USD 56.00
Buenos-EURDIS 8.500 4/15/17 EUR 63.00
Buenos-$DIS 9.250 4/15/17 USD 61.50
Buenos Aire Prov 9.375 9/14/18 USD 52.32
Buenos Aire Prov 9.625 4/18/28 USD 47.00
Mendoza Province 5.500 9/04/18 USD 52.00
BERMUDA
-------
XL Capital Ltd 6.500 12/31/49 USD 57.50
BRAZIL
------
Cosan Finance 7.000 2/1/17 USD 72.00
Cosan SA Industria 8.250 2/28/49 USD 61.00
AMBEV Int'l Finance 9.500 7/24/17 BRL 73.87
CESP 9.750 1/15/15 BRL 56.04
Gol Finance 7.500 4/03/17 USD 59.89
Gol Finance 7.500 4/03/17 USD 58.25
Tam Capital Inc. 7.375 4/25/17 USD 74.37
Gol Finance 8.750 4/29/49 USD 55.50
CAYMAN ISLANDS
--------------
Barion Funding 0.100 12/20/56 EUR 6.67
Barion Funding 0.250 12/20/56 USD 6.50
Barion Funding 0.250 12/20/56 USD 6.50
Barion Funding 0.250 12/20/56 USD 6.50
Barion Funding 0.250 12/20/56 USD 6.50
Barion Funding 0.250 12/20/56 USD 6.50
Barion Funding 0.250 12/20/56 USD 6.50
Barion Funding 0.630 12/20/56 GBP 14.80
Barion Funding 1.440 12/20/56 GBP 26.76
Mazarin Fdg Ltd 0.100 9/20/68 EUR 4.07
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.79
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.79
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.79
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.79
Mazarin Fdg Ltd 0.250 9/20/68 USD 4.79
Mazarin Fdg Ltd 0.510 9/20/68 EUR 10.58
Mazarin Fdg Ltd 0.630 9/20/68 GBP 12.30
Mazarin Fdg Ltd 1.440 9/20/68 GBP 24.63
Shimao Property 8.000 12/1/16 USD 47.50
Shinsei Fin Caym 6.418 1/29/49 USD 48.76
Shinsei Finance 7.160 7/29/49 USD 53.08
Vontobel Cayman 17.900 1/23/09 USD 70.60
Vontobel Cayman 10.650 2/27/09 USD 72.10
JAMAICA
-------
Jamaica Govt LRS 7.500 10/6/12 JMD 73.01
Jamaica Govt LRS 12.750 6/29/22 JMD 70.10
Jamaica Govt LRS 12.750 6/29/22 JMD 70.11
Jamaica Govt LRS 12.850 5/31/22 JMD 70.67
Jamaica Govt LRS 13.375 12/15/21 JMD 73.67
Jamaica Govt 13.375 4/27/32 JMD 68.64
PUERTO RICO
-----------
Puerto Rico Cons 6.200 5/1/17 USD 70.00
VENEZUELA
---------
Petroleos de Ven 5.250 4/12/17 USD 58.05
Petroleos de Ven 5.375 4/12/27 USD 48.00
Petroleos de Ven 5.500 4/12/27 USD 47.62
Venezuela 5.750 2/26/16 USD 68.50
Venezuela 6.000 12/9/20 USD 39.32
Venezuela 7.000 3/16/15 EUR 70.95
Venezuela 7.000 12/1/18 USD 67.88
Venezuela 7.000 3/31/38 USD 60.12
Venezuela 7.650 4/21/25 USD 57.99
Venezuela 9.000 5/7/23 USD 74.18
Venezuela 9.250 5/7/28 USD 74.37
Venezuela 9.375 1/13/34 USD 74.35
***********
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, Rizande de los Santos,
Pamella Ritah K. Jala, and Melanie C. Pador, 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 * * *