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/raid1/www/Hosts/bankrupt/TCRLA_Public/110303.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, March 3, 2011, Vol. 12, No. 44 Headlines B R A Z I L BROOKFIELD INCORPORACOES: Moody's Puts 'Ba2' Corp. Family Rating FIBRIA OVERSEAS: Moody's Assigns 'Ba1' Rating to Senior Notes FIBRIA OVERSEAS: S&P Assigns 'BB' Rating to Senior Unsec. Notes C A Y M A N I S L A N D S ARTEMUS STRATEGIC: Creditors' Proofs of Debt Due March 30 CAPITAL TRADING: Creditors' Proofs of Debt Due March 30 CHEYNE LEVERAGE: Creditors' Proofs of Debt Due March 30 CMG CAPITAL: Creditors' Proofs of Debt Due March 28 CMG CAPITAL: Creditors' Proofs of Debt Due March 28 COMPREHENSIVE INDEMNITY: Creditors' Proofs of Debt Due March 31 DEVELOPMENT PARTNERS: Creditors' Proofs of Debt Due March 22 DGC VISION: Creditors' Proofs of Debt Due March 22 DGC VISION: Creditors' Proofs of Debt Due March 22 GALLE GLOBAL: Creditors' Proofs of Debt Due March 28 HALABRISA INVESTMENTS: Placed Under Voluntary Wind-Up HIMALAYA FUNDING: Creditors' Proofs of Debt Due March 28 OPUS TRINITY: Court Enters Wind-Up Order SAKURAMORI HOLDINGS: Creditors' Proofs of Debt Due March 28 SAXLINGHAM EUROPE: Creditors' Proofs of Debt Due March 31 STRONGBOW CAPITAL: Creditors' Proofs of Debt Due March 21 WATERFALLS INVESTMENTS: Placed Under Voluntary Wind-Up M E X I C O GRUMA SAB: Fitch Removes Issuer Default Ratings to 'BB' SATMEX SA: First Lien Noteholders Retain Counsel VITRO SAB: Judge Sets March 31 Hearing, Urges Agreement VITRO SAB: Incurs US$58-Mil Consolidated Net Loss for 4Q 2010 X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =========== B R A Z I L =========== BROOKFIELD INCORPORACOES: Moody's Puts 'Ba2' Corp. Family Rating ---------------------------------------------------------------- Moody's Investors Service has assigned first-time Ba2 local currency and Aa3.br Brazil national scale corporate family ratings to Brookfield Incorporacoes S.A. The outlook for the ratings is stable. Ratings Assigned: -- Corporate Family Rating: Ba2/Aa3.br Ratings Rationale "Brookfield's Ba2 rating reflects its position among the top five largest homebuilders in Brazil with strong brand name, long track record, diversity in terms of product offering ranging from economic to high income apartments and office buildings.", said Moody's Analyst, Marcos Schmidt. "The rating also considers the company's significant market share in its geographic markets, adequate corporate governance standards, increasing geographic diversity, relatively low leverage when compared to peers, good profitability, and the benefit of having Brookfield Asset Management Inc. (Baa2/STA) as the largest individual shareholder. Conservative financial policies have contributed to adequate debt protection metrics and liquidity for this rating level," added Schmidt. On the other hand, Brookfield's rating is constrained by the geographic concentration of the company's landbank in Sao Paulo and Rio de Janeiro, aggressive growth through acquisitions that more than doubled the size of the company since 2008. Focus in the high-rise segment that pressures working capital and free cash flow due to the extended construction periods and potential increase in leverage over the next three years also constrain the ratings. Brookfield is the result from the combination of Brascan, Company and MB Engenharia all strong brand names with long experience in the Brazilian homebuilding market. Brascan started its operations in Rio de Janeiro in 1978, MB Engenharia started its operations in 1986 in Goiania and was acquired in April 2008, Company in its turn started its operation in 1982 in Sao Paulo and was acquired in October 2008. In June 2009 the group's name was changed to Brookfield Incorporacoes S.A. consolidating the three names and associating its franchise to its indirect controlling company, BAM. BAM is an asset manager with more than US$100 billion in assets under management of which US$41 billion are in real estate. Brookfield's shares are listed on the Bovespa's "Novo Mercado", which is the highest level of corporate governance standards in the Brazilian stock market and is also Sarbanes-Oxley compliant through BAM. In addition to BAM which controls 42.6% of the shares, the other shareholders include those in the shareholder's agreement who hold 6.1%. The market holds the largest stake with the remaining 51.3%. With some BRL2.85 billion of net revenues in LTM ending in September, 2010, Brookfield is one of the 5 largest players in Brazil. The company's launches are distributed across Sao Paulo (23%), Rio de Janeiro (22.1%), the Mid West region (18.6%) and Brasilia (33.2%), regions that together account for around 60% of Brazil's GDP, Sao Paulo alone concentrates 34% of the country's GDP and 45% of the Brazilian real estate market. The merger between the three companies provided better geographic distribution, stronger bargaining power in the purchase of raw materials and land from suppliers, as well as with better bargaining power for the hiring of service. The companies are now fully merged and integrated. Despite its fast organic growth and acquisitions, Brookfield has been able to maintain an adequate capital structure and interest coverage, with total adjusted debt/book capitalization of around 40%, one of the lowest in the local market and EBITA to Interest of around 3.2 times. It is important to mention that 35% or BRL623 million of total debt of BRL1.8 billion is comprised of construction related SFH loans, while 33% are working capital loans, 30% local debentures and the remaining 2% receivable backed loans. According to the debt maturity schedule most of the loans coming due in 2011 and 2012 are linked to construction and should be repaid with the proceeds from the sale of finished units. Given high commitments in the beginning of the construction phase, Brazilian homebuilders generally have substantial working capital requirements before construction financing kicks in, approximately 20% of the construction costs on average. This 20% is a use of the company's working capital, funded mostly through client's down payment or internal cash generation from finished projects being delivered. The financing for all the projects launched by Brookfield has already been committed and will be disbursed according to the construction progress. The company usually does not start construction without having secured the respective financing. At the end of September 2010 Brookfield had BRL652 million in cash and marketable securities on its balance sheet, BRL767 million in ST debt and working capital consumption of BRL250 million per quarter on average. The majority of the ST debt is comprised by SFH loans directly linked to construction that will be repaid at the end of each project as well as working capital loans that will be extended with a BRL300 million 4 to 5-year debenture. Most of the working capital requirements will be financed by the BRL2.2 billion in contracted SFH loans plus BRL1.2 billion already approved by the local banks. The company also has BRL965 million in receivables from finished units that could be used as an alternative source of liquidity. In January 2009 the company raised BRL200 million in an equity offering. The offering was guaranteed by Brookfield's main shareholder BAM, demonstrating its commitment to Brookfield. In November 2009, the company raised another BRL665 million in an equity offering to the market. The company's financial policy requires a minimum cash level of BRL500 million and net debt no greater than Shareholders' Equity. SFH loans and other construction loans are secured and represent 46% of Brookfield's capital structure, but in a liquidation scenario the company would have enough assets to more than cover all of the secured and unsecured debt. The stable outlook takes into consideration that Brookfield will continue to maintain adequate liquidity on its balance sheet to execute its launched projects and growth plans, preserving a minimum cash balance to face weaker economic environments and be able to manage its debt obligations during a downturn in the homebuilding industry. The stable outlook also assumes that BAM will remain the largest shareholder of the company demonstrating its commitment to Brookfield's operations. Brookfield's rating or outlook could experience upward pressure if the company is able to further diversify its landbank outside the state of Sao Paulo, and at the same time maintain its leverage metrics and increase profitability as well as interest coverage. Quantitatively, positive pressure could arise from an increase in gross margin to the upper 30% (33.7% in the last twelve months ended in September 2010), maintenance of total debt to capitalization in the low 40% range (40.8% in the last twelve months ended in September 2010), and an increase in interest coverage (EBIT to Interest expense) to above 4.5 times (3.2 times for the last twelve months ended in September 2010) on a sustainable basis. Brookfield's ratings could be downgraded if Total Debt to Capitalization increased above the mid 50% range (40.8% in the last twelve months ended in September 2010) on a sustainable basis or if the company were to face a significant deterioration in its liquidity profile due to a downturn in the homebuilding industry or due to excessive dividend payout that could instead be used in the down payment of debt or in the buildup of a liquidity cushion. Negative pressure could arise if the company's cash balance decreases to a level that would not be sufficient to meet the company's short term financial obligations and minimum working capital requirements or in case of a breach in the company's internal leverage and minimum cash policies. Headquartered in Rio de Janeiro, Brookfield Incorporacoes S.A. is a vertically integrated real estate developer with activities focused mainly in the states of Sao Paulo, Rio de Janeiro, Santa Catarina and the mid-west region of Brazil including the Federal District, it develops, builds and sales residential projects in virtually all price segments as well as office buildings. The largest shareholder is Brookfield Asset Management (Baa2/STA) with an indirect stake of 42.6% of the shares. During the last twelve months ended in September 2010 the company had BRL2.85 billion in net revenues. FIBRIA OVERSEAS: Moody's Assigns 'Ba1' Rating to Senior Notes ------------------------------------------------------------- Moody's Investors Service has assigned a Ba1 foreign currency rating to Fibria Overseas Finance Ltd (Cayman Islands) proposed issuance of approximately US$500 million (could be upsized to up to US$750 million depending on market conditions) in senior unsecured notes due 2021, to be unconditionally and irrevocably guaranteed by Fibria Celulose S.A. The rating outlook is positive. The issuance will not result in leverage increase as the net proceeds from the notes will be used to refinance existing debt, improving the company's debt maturity profile and liquidity. Rating assigned: Issuer: Fibria Overseas Finance Ltd (Cayman Islands) -- Approximately US$500 million Senior Unsecured Guaranteed Notes: Ba1 foreign currency rating Existing ratings: Issuer: Fibria Celulose S.A. -- Corporate Family Rating: Ba1 (global scale); Aa2.br (Brazilian national scale) Issuer: Fibria Overseas Finance Ltd (Cayman Islands) -- US$1.87 billion senior unsecured guaranteed notes due 2020: Ba1 (foreign currency) -- US$63 million senior unsecured guaranteed notes due 2019: Ba1 (foreign currency) The outlook for all ratings is positive. Ratings Rationale The Ba1 rating of the notes assume that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date and assume that these agreements are legally valid, binding and enforceable. The rating of the proposed notes is at the same level as its Ba1 corporate family rating based on the low amount of secured debt and unsecured debt with claim priority over the proposed notes (totaling approximately 17% of total consolidated adjusted debt including financial obligations related to the acquisition of Aracruz) and the fact that some 99% of the total consolidated adjusted debt as of December 31, 2010 was either at Fibria or guaranteed by Fibria. Fibria's Ba1 rating reflects its leading position as the largest producer of market pulp in the world, it's extremely competitive production costs which are among the lowest worldwide based on a long-term sustainable business model depicted by structural cost advantages when compared with most international peers, including self-sufficiency in wood fiber and electricity and efficient logistics. Fibria's low product diversity and its relative small size when compared with global peers as measured by net revenues are constraining factors for its rating. Operational diversity is good with pulp production spread over five plants, although 83% of capacity is concentrated in three site locations. Revenues are largely generated under long-term supply contracts that support stable sales volume with good geographic diversification. Additionally, the Ba1 rating incorporates the benefit from the ownership by and expected support from Votorantim Participacoes S.A. (Baa3, outlook stable) due to existing cross default provisions in part of Votorantim's outstanding debt. Also, Moody's view of Fibria's strong ownership considers the fact that the Brazilian Development Bank BNDES (A3, outlook stable) is currently its largest individual shareholder through its subsidiary BNDES Participacoes S.A. (A3, outlook stable) with 30.4% of Fibria's voting and total capital, and a major lender to the company on an arms-length basis. As anticipated, during 2010 Fibria has significantly reduced its leverage as measured by Total Adjusted Debt (including financial obligations related to the acquisition of Aracruz) to EBITDA of 4.1x as of December 31, 2010, down from 9.0x one year earlier. Because Fibria has a track record of maintaining hefty cash position on its balance sheet, Moody's also looks at its leverage on a Net Adjusted Debt basis considering a minimum cash position of BRL1 billion, which together with the company's access to export pre-financing, BNDES loans to fund capex, and Votorantim's committed credit facility, provide comfort on the company's adequate liquidity. On a net debt basis, leverage declined to 3.8x as of 2010 year-end (or 3.3x pro-forma for the BRL1.5 billion proceeds from the disposal of Conpacel and KSR) from 7.4x in 2009. The leverage reduction reflects Fibria's improved operational performance due to higher pulp prices and synergies captured from the merger with Aracruz, that more than off-set the negative impacts of the strong Real, as well as the use of proceeds from the disposal of the Guaiba mill in late 2009 to prepay debt. Consequently, EBITDA margin (as defined by Moody's) increased to 46% in 2010 from 31% in 2009, comparing very favorably with most international peers. Despite the pressure on costs deriving from the strong Real, Moody's expect margins to remain robust given the lack of significant additional new capacity before 2013 and continuous global demand growth supporting prices at fairly high levels over the next couple of years. Moody's expect Fibria will continue to be free cash flow positive in 2011 and will continue to have ample access to pre-export financing in support of the maintenance of adequate liquidity. Still on liquidity, Moody's expect Fibria will proactively and timely manage to remain in compliance with tightening leverage covenants under existing debts totaling some BRL382 million, which indentures limit Net Debt to EBITDA at 3.0x as of June 30, 2011 (3.72x reported as of December 31, 2010; 3.2x pro-forma for the disposal of Conpacel and KSR). Also, Moody's believe that the Brazilian Development Bank - BNDES will continue to finance a substantial portion of Fibria's capital spending at arm's-length terms and conditions. Fibria has ambitious expansion projects in the period 2012 -- 2018 that include the expansion of the Tres Lagoas and Veracel (50%-50% joint venture with Stora Enso) mills at an estimated total cost of about BRL8 billion. Moody's expect the company will prudently manage the timing of its capex program in order to maintain adequate leverage and liquidity during the execution period. The positive outlook reflects Moody's expectation that Fibria will accelerate leverage reduction with the proceeds from assets sale and will continue to report strong margins and cash generation in the near term supported by favorable market conditions for BEKP and despite the strengthened Real. Moody's expect that Fibria will prudently manage its large capex program in the near term while maintaining healthy liquidity. The ratings could be upgraded if Fibria manages to reduce leverage as measured by Total Adjusted Net Debt (considering a minimum cash position of BRL1 billion) to EBITDA approaching 3x (3.3x reported as of December 31, 2010 pro-forma for the disposal of Conpacel and KSR) together with Retained Cash Flow (defined as Funds From Operations less Dividends) less Capex to Total Adjusted Net Debt (as defined above) above 12% on a consistent basis (reported 11% as of December 31, 2010 pro-forma for the disposal of Conpacel and KSR). Moody's expect a large portion of Fibria's planned capex will be pre-funded with committed long term debt. During period of heavy capital spending Moody's may also look at capex net of pre-funding. The ratings outlook could be stabilized in case Fibria is unable to continue to delever, or in case of deterioration in liquidity. Also, a deterioration of VPAR's credit quality could negatively impact Fibria's ratings. A substantial increase in secured debt could negatively affect the senior unsecured notes rating. Moody's last rating action on Fibria was on Dec. 30, 2010 when Moody's affirmed its corporate family ratings of Ba1 on the global scale and Aa2.br on the Brazilian national scale rating, as well as the Ba1 foreign currency ratings of Fibria Overseas Finance Ltd senior unsecured guaranteed notes, and changed the outlook for all ratings to positive from stable. The action followed the announcement of the disposal to Suzano Papel e Celulose S.A. (rated Baa3, outlook stable) of its 50% interest in Consorcio Paulista de Papel e Celulose - Conpacel and 100% of KSR Distribuidora (paper distribution subsidiary) for BRL1.5 billion in cash. Fibria Celulose S.A. is the largest producer of market pulp in the world, and also produces specialty paper, such as coated, thermal, and carbonless paper. In 2010, Fibria reported consolidated net revenues of BRL6.3 billion (approximately US$3.6 billion converted by the average foreign exchange rate). FIBRIA OVERSEAS: S&P Assigns 'BB' Rating to Senior Unsec. Notes --------------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'BB' senior unsecured debt rating to the forthcoming issuance of senior unsecured notes by Fibria Overseas Finance Ltd., a wholly owned subsidiary of Fibria Celulose S.A. (BB/Positive/--). Fibria will unconditionally guarantee the notes. The rating reflects Fibria's credit quality, its satisfactory business profile marked by its very competitive cost position, its world-class operations and economies of scale, and its strong market position in the eucalyptus pulp market, resulting in strong profitability. S&P views Fibria's financial risk profile as significant, due to its still-aggressive, though reducing, and financial leverage. As Fibria starts investing more heavily in Tres Lagoas II, S&P's base case predicts limited gross debt reduction. However, S&P expects the company to continue reducing interest costs and improving its debt profile as it moves on with its liability-management strategy. Ratings List Fibria Overseas Finance Ltd. Senior Unsecured Notes BB =========================== C A Y M A N I S L A N D S =========================== ARTEMUS STRATEGIC: Creditors' Proofs of Debt Due March 30 --------------------------------------------------------- The creditors of Artemus Strategic Asian Credit Fund Limited II are required to file their proofs of debt by March 30, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on February 17, 2011. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands CAPITAL TRADING: Creditors' Proofs of Debt Due March 30 ------------------------------------------------------- The creditors of The Capital Trading Fund Offshore, Ltd. are required to file their proofs of debt by March 30, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on February 8, 2011. The company's liquidator is: Jonathan Culshaw Telephone: +44 207 842 6085 Facsimile: +44 207 353 0487 Harney Westwood & Riegels LLP 5 New Street Square, 5th Floor London EC4A 3BF United Kingdom CHEYNE LEVERAGE: Creditors' Proofs of Debt Due March 30 ------------------------------------------------------- The creditors of Cheyne Leverage Fund Inc. are required to file their proofs of debt by March 30, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on February 16, 2011. The company's liquidator is: Walkers Corporate Services Limited c/o Anthony Johnson Telephone: (345) 914-6314 Walker House, 87 Mary Street, George Town Grand Cayman KY1-9005 Cayman Islands CMG CAPITAL: Creditors' Proofs of Debt Due March 28 --------------------------------------------------- The creditors of CMG Capital, Ltd are required to file their proofs of debt by March 28, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on February 17, 2011. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 946 7666 CMG CAPITAL: Creditors' Proofs of Debt Due March 28 --------------------------------------------------- The creditors of CMG Capital Master Fund, Ltd are required to file their proofs of debt by March 28, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on February 17, 2011. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 946 7666 COMPREHENSIVE INDEMNITY: Creditors' Proofs of Debt Due March 31 --------------------------------------------------------------- The creditors of Comprehensive Indemnity, Ltd. are required to file their proofs of debt by March 31, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on February 9, 2011. The company's liquidator is: Steven R. Butler Financial Director Chandler Insurance Management, Ltd. Waterfront Centre, 2nd Floor North Church Street P.O. Box 1854, Grand Cayman KY1-1110 Cayman Islands Telephone: (345) 949 8177 Facsimile: (345) 949 8376 DEVELOPMENT PARTNERS: Creditors' Proofs of Debt Due March 22 ------------------------------------------------------------ The creditors of Development Partners (Cayman) Limited are required to file their proofs of debt by March 22, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on February 17, 2011. The company's liquidator is: Richard Finlay c/o Krysten Lumsden Telephone: (345) 814 7366 Facsimile: (345) 945 3902 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands DGC VISION: Creditors' Proofs of Debt Due March 22 -------------------------------------------------- The creditors of DGC Vision Euro Holdings Ltd. are required to file their proofs of debt by March 22, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 30, 2010. The company's liquidator is: Richard Finlay c/o Gene DaCosta P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7765 Facsimile: (345) 945 3902 DGC VISION: Creditors' Proofs of Debt Due March 22 -------------------------------------------------- The creditors of DGC Vision INT. Ltd. are required to file their proofs of debt by March 22, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 30, 2010. The company's liquidator is: Richard Finlay c/o Gene DaCosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands GALLE GLOBAL: Creditors' Proofs of Debt Due March 28 ---------------------------------------------------- The creditors of Galle Global Macro Offshore Fund, Ltd are required to file their proofs of debt by March 28, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on February 16, 2011. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 946 7666 HALABRISA INVESTMENTS: Placed Under Voluntary Wind-Up ----------------------------------------------------- At an extraordinary general meeting held on February 18, 2011, the shareholder of Halabrisa Investments Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694, Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 HIMALAYA FUNDING: Creditors' Proofs of Debt Due March 28 -------------------------------------------------------- The creditors of Himalaya Funding Holding Inc. are required to file their proofs of debt by March 28, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on February 17, 2011. The company's liquidator is: Victor Murray c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands OPUS TRINITY: Court Enters Wind-Up Order ---------------------------------------- On February 11, 2011, the Grand Court of the Cayman Islands entered an order that voluntarily winds up the operations of Opus Trinity SPC. The company's liquidators are: S.L.C. Whicker K. Beighton KPMG, 2nd Floor, Century Yard Cricket Square P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands Telephone: +1 345-815-2631 / +1 345-949-4800 Facsimile: +1 345-949-7164 / +1 345-949-7164 SAKURAMORI HOLDINGS: Creditors' Proofs of Debt Due March 28 ----------------------------------------------------------- The creditors of Sakuramori Holdings Ltd. are required to file their proofs of debt by March 28, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on February 17, 2011. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands SAXLINGHAM EUROPE: Creditors' Proofs of Debt Due March 31 --------------------------------------------------------- The creditors of Saxlingham Europe Master Fund Limited are required to file their proofs of debt by March 31, 2011, to be included in the company's dividend distribution. The company commenced liquidation proceedings on February 10, 2011. The company's liquidator is: Darren Swayne c/o Maples FS Limited Cricket Square, Boundary Hall, 4th Floor George Town, Grand Cayman Cayman Islands STRONGBOW CAPITAL: Creditors' Proofs of Debt Due March 21 --------------------------------------------------------- The creditors of Strongbow Capital, Ltd. are required to file their proofs of debt by March 21, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on December 13, 2010. The company's liquidator is: Ogier c/o Michael Lubin Telephone: (345) 815 1793 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands WATERFALLS INVESTMENTS: Placed Under Voluntary Wind-Up ------------------------------------------------------ At an extraordinary general meeting held on February 18, 2011, the shareholder of Waterfalls Investments Ltd. resolved to voluntarily wind up the company's operations. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694, Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 =========== M E X I C O =========== GRUMA SAB: Fitch Removes Issuer Default Ratings to 'BB' -------------------------------------------------------- Fitch Ratings has upgraded and removed these Issuer Default Ratings and outstanding debt ratings of Gruma, S.A.B. de C.V. from Rating Watch Positive: -- Long-term Foreign Currency IDR to 'BB' from 'B+'; -- Long-term Local Currency IDR to 'BB' from 'B+'; -- US$300 million perpetual bonds to 'BB' from 'BB-/RR3'. The Rating Outlook is Positive. In accordance with Fitch's published methodology, the Recovery Ratings on Gruma's perpetual bonds will no longer be published. The ratings upgrade reflects Gruma's considerable debt reduction with the proceeds received from the sale of its shares of Grupo Financiero Banorte, S.A.B. de C.V., as well as sound operating performance and improved financial position. The ratings are supported by Gruma's solid business profile as one of the leading producers of corn flour and tortillas in the United States and Central America, and corn and wheat flour in Mexico and Venezuela. The ratings also incorporate the expected effect of the nationalization of the Venezuelan operations, where Fitch assumes no contribution to Gruma's results, neither any cash compensation at the end of this process. The Positive Rating Outlook considers Fitch's expectation that Gruma will maintain its total debt to EBITDA ratio within a 2.1 times to 2.5x range over the next 12 to 18 months. Gruma's internal initiatives are to mitigate core raw materials cost volatility and contain cost and expenses, allowing it to improve its profitability and free cash flow generation. Gruma's sale of its shares in Banorte represented a net cash inflow of approximately MXN9 billion which were used to prepay debt, improving the company's credit metrics. With these funds, available cash balances and others short term facilities, Gruma made on February 2011 debt prepayments to loan agreements related to derivatives losses that were converted to debt in 2009 for US$752.6 million and MXN773.3 million. This action will allow Gruma to remove restrictive financial and operative conditions related to those agreements and obtain flexibility to improve and strengthen its financial profile. On a proforma basis as of Dec.31, 2010, Gruma's estimated total debt to EBITDA was 2.1x, down significantly from 4.3x at Dec. 31, 2009 year-end. Adjusting for operating leases on sale and lease-back agreements for production equipment, Gruma's estimated adjusted debt to EBITDAR decreased to 2.8x from 4.6x when comparing the same periods above mentioned. Gruma's operating performance during 2010 was supported by the company's strong position and fundamentals in a difficult business environment. Net sales decreased 8% versus the prior year period to MXN46.6 billion mainly as a result of Venezuelan Bolivar devaluation and to a lesser extent lower prices in Gruma Corporation. In contrast, sales volume increased 4% supported mainly by the acquisition of one corn grits plant in Ukraine and higher volumes in Venezuela. Gruma's consolidated EBITDA margin at YE 2010 was 9.3% versus 10.8% in 2009. The reduction in margins, which remain slightly below its historical levels, was mainly the result of higher raw material costs, consumer shift to lower margin products and the depreciation of the Bolivar. Fitch expects that net sales growth during 2011 may be negatively impacted by the disincorporation of the Venezuelan assets. Fitch estimates that operating margins will remain stable as a result of the implementation of price increases and raw material hedges that will help Gruma to offset the pressure from higher costs of inputs. Gruma's liquidity position is limited with low cash balances. In contrast, it is supported by Gruma's positive free cash flow generation and access to credit lines. As of Dec. 31, 2010, Gruma had MXN21 million of cash balances and annual funds from operations generation of MXN2.4 billion, which compare unfavorably with last year figures of MXN2 billion and MXN3.4 billion, respectively. In addition on a proforma basis as of Dec. 31, 2010, estimated short term debt reached US$160 million which is high to the current level of cash balances. This situation is mitigated by Gruma's access to credit lines and supports Fitch's expectation that the company will be able to refinance its short term debt. Also, Fitch's estimation of FFO above MXN2.6 billion at YE 2011 will be sufficient to cover short term obligations. Fitch has already factored in Gruma's 'BB' IDR the high uncertainty and volatility of the cash flows coming from Venezuela. On a pro-forma basis as of Dec. 31, 2010, total debt to EBITDA excluding the operations of Venezuela, increases to 4.7x versus 4.3x, including Venezuela. When considering the recent debt reduction for the same period mentioned, estimated leverage ratio reached 2.3x from 2.1x, respectively. These last proforma ratios remain consistent with the current rating category. Going forward Fitch estimates that total debt to EBITDA, excluding Venezuelan operations, should stay below 2.5x at YE 2011. SATMEX SA: First Lien Noteholders Retain Counsel ------------------------------------------------ Satelites Mexicanos, S.A. de C.V. (Satmex SA) disclosed in a press release on Jan. 25, 2011, that it had reached an agreement with the holders of more than two-thirds of the outstanding principal amount of its Second Priority Senior Secured Notes due 2013 regarding a comprehensive recapitalization to be effected through a prepackaged plan of reorganization to be filed in the United States Bankruptcy Court for the District of Delaware. According to a March 1, 2011, press release, the Company has been advised that certain of the holders of Satmex's First Priority Senior Secured Notes due 2011 have retained Michael J. Sage of Dechert LLP as their counsel in this matter and are planning an organizational telephone conference at 5:00 p.m. Eastern Time on Wednesday, March 2, 2011, to discuss next steps. Holders of the First Priority Senior Secured Notes who would like to participate on that call may contact Mr. Sage directly in advance. The Company is presently confirming that under the terms of the proposed Plan, holders of the First Priority Senior Secured Notes will be paid out in cash at par plus accrued interest without premium or penalty. To the extent not paid pursuant to a bankruptcy court order authorizing the use of cash collateral or otherwise, the accrued and unpaid fees and expenses of the indenture trustee and the collateral trustee related to the First Priority Senior Secured Notes (including the accrued and unpaid fees and expenses of their counsel and the counsel to the ad hoc committee of holders of the First Priority Senior Secured Notes) will be paid in full in cash on the effective date of the Plan. Satmex SA has also entered into a commitment letter with Jefferies Finance LLC providing for US$325 million of committed senior secured exit financing, which may be used, along with the proceeds of the previously-announced US$96.25 million fully-backstopped rights offering of equity securities to holders of Second Priority Senior Secured Notes, to, among other things, repay the First Priority Senior Secured Notes as outlined above and fund the timely completion of Satmex 8, a satellite scheduled to be launched in 2012 to replace the Company's Satmex 5 satellite. Completion of the transaction is subject to certain regulatory approvals and other conditions precedent. About Satmex SAB Satelites Mexicanos, S.A. de C.V., (Satmex) is a Mexico-based satellite service provider in Latin America. Satmex's fleet offers hemispheric and regional coverage throughout the Americas. Satmex balance sheet a June 30, 2010, showed US$438.29 million in assets, US$516.55 million in liabilities, and a US78.26 million shareholders' deficit. Satmex had a net loss of US$6.12 million on US$53.06 million of revenue for the six months ended June 30, 2010, compared with a net loss of US$8.81 million on US$50.35 million of revenue for six months ended June 30, 2009. Satmex has a 'C' issuer rating and 'Ca' long term corporate family rating, with negative outlook, from Moody's Investors Service. VITRO SAB: Judge Sets March 31 Hearing, Urges Agreement ------------------------------------------------------- Thomas Black at Bloomberg News reports that Vitro, S.A.B. de C.V. said a Mexican judge set a bankruptcy hearing for March 31 and "energetically suggested" that the company and creditors reach an agreement outside of court. A conference was held with the judge on Feb. 24, 2011, according to Bloomberg. Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. Vitro is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and is now seeking to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. The offer was to expire December 7, 2010. Noteholders who oppose the exchange, namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. -- which hold US$75 million, or approximately 6% of the outstanding bond debt -- commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and nine other affiliates on November 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation Counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). Vitro SAB on December 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, thereby commencing its voluntary concurso mercantil proceedings. Vitro SAB believes that, as a result of the implementation of the Concurso Plan through the Mexican Proceeding, the holders of the Restructured Debt will recover 68% to 75% of the face value of their respective claims. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on December 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Alejandro Francisco Sanchez-Mujica, as foreign representative of Vitro, has asked the U.S. Bankruptcy Court to enter an order recognizing the Mexican Proceeding as "foreign main proceeding" pursuant to 11 U.S.C. Sections 1515 and 1517. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. VITRO SAB: Incurs US$58-Mil Consolidated Net Loss for 4Q 2010 ------------------------------------------------------------- Vitro, S.A.B. de C.V. has incurred a consolidated net loss of US$58 million for the fourth quarter 2010 from a net gain of US$41 million during the same period last year. This variation is principally explained by the US$51 million expense in total financing result compared with an expense of US$20 million in the fourth quarter 2009, mainly derived from a noncash foreign exchange income related to a 1.2 percent peso appreciation compared to a non-cash foreign exchange income related to a 3.3 percent peso appreciation in the fourth quarter 2009. In addition, the variation is due to a US$20 million other expenses during the quarter, related to the accelerated amortization of fees associated with previous issued debt vs. other income of US$7 million for the same period last year mostly as a result of a gain related to asset sales. Sales for the quarter increased 20.3% YoY to US$255 million from US$212 million in the fourth quarter 2010. Domestic sales increased 16% in part as a result of the peso appreciation coupled with higher volumes across all segments, with the exception of food, and stronger product mix in the soft drinks and wine and liquor segments. Export sales increased 24.9% YoY due to higher volumes in every segment, despite a lower price mix in all segments. Sales from Glass Containers' foreign subsidiaries increased to US$5 million from US$2 million on a YoY basis. A full text copy of the company's fourth quarter 2010 release is available free at: http://ResearchArchives.com/t/s?7438/ About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. Vitro is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and is now seeking to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. The offer was to expire December 7, 2010. Noteholders who oppose the exchange, namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. -- which hold US$75 million, or approximately 6% of the outstanding bond debt -- commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and nine other affiliates on November 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation Counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). Vitro SAB on December 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, thereby commencing its voluntary concurso mercantil proceedings. Vitro SAB believes that, as a result of the implementation of the Concurso Plan through the Mexican Proceeding, the holders of the Restructured Debt will recover 68% to 75% of the face value of their respective claims. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on December 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Alejandro Francisco Sanchez-Mujica, as foreign representative of Vitro, has asked the U.S. Bankruptcy Court to enter an order recognizing the Mexican Proceeding as "foreign main proceeding" pursuant to 11 U.S.C. Sections 1515 and 1517. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Mar. 4, 2011 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Hyatt Regency Century Plaza, Los Angeles, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 7-9, 2011 AMERICAN BANKRUPTCY INSTITUTE Conrad Duberstein Moot Court Competition Duberstein U.S. Courthouse, New York, N.Y. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 10, 2011 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts - Florida Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Mar. 10-12, 2011 AMERICAN BANKRUPTCY INSTITUTE SUCL/ Alexander L. Paskay Seminar on Bankruptcy Law and Practice Marriott Tampa Waterside, Tampa, Fla. 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Contact: 1-703-739-0800; http://www.abiworld.org/ June 6, 2011 AMERICAN BANKRUPTCY INSTITUTE Canadian-American Cross-Border Insolvency Symposium Fairmont Royal York, Toronto, Ont. Contact: 1-703-739-0800; http://www.abiworld.org/ June 9-12, 2011 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Mich. Contact: http://www.abiworld.org/ July 21-24, 2011 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 27-30, 2011 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Sanctuary at Kiawah Island, Kiawah Island, S.C. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 4-6, 2011 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ *********** 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, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Psyche A. Castillon, Julie Anne G. Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2011. 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. 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