/raid1/www/Hosts/bankrupt/TCRLA_Public/060208.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, February 8, 2006, Vol. 7, Issue 28
Headlines
A R G E N T I N A
ANCLAMAT S.A.: General Reports Submission Ends Tomorrow
BASCOY S.A.: Individual Reports to be Presented on Feb. 9
BAUD MOL: Trustee to Submit General Report on February 9
CATERING ESPECIALISTAS: Verification of Claims to End on Mar. 17
CW ARGENTINA: Trustee to Validate Claims until March 15
HSBC BANK: Inks $155MM Asset Purchase Deal with Banca Nazionale
MEIBEL PLAC: Seeks Reorganization Approval from Court
M.P. EDICIONES: Trustee to Present Validated Claims on Feb.9
MUTUAL DE LA FEDERACION: Individual Reports Due February 9
PIKER S.R.L.: Verification of Claims Ends on April 10
RIBRAS S.A.: Verification Phase for Claims to End on March 24
B E R M U D A
INTELSAT: Aids MediaFLOTM's Media Delivery Network Launch
INTELSAT: Inks New Deal with RCS to Support Growing DTH Platform
LORAL SPACE: XTAR Signs MSA with Two Government Firms
B O L I V I A
AES COMMUNICATIONS: In Talks with Potential Purchasers
B R A Z I L
BANCO ITAU: Joint Venture with XL Capital to Begin
CVRD: Discussing Steelmaking Plant Construction with Para State
FURNAS CENTRAIS: Closes $314M Foz do Chapeco Purchase by Feb. 10
GLOBO: Moody's Upgrades Currency Corporate Family Rating to B1
NET SERVICOS: Realizes US$58.9MM Profit in 4th Quarter of 2005
C A Y M A N I S L A N D S
ALPHAMIX MASTER: Liquidator to Stop Verifying Claims on Feb. 24
DYOLL INSURANCE: Cayman Island Policyholders May Get Paid
HILLSBOROUGH LEE: Claims to be Verified until February 24
TRAINER WORTHAM: Creditors Given until Feb. 24 to Submit Claims
VOLTAIRE FUND: Creditors Must Prove Claims by February 24
C H I L E
BANCO SANTANDER: Altavida Santander Buys US$4.45M Consumer Loans
C O L O M B I A
BANCOLOMBIA: Purchases 98.7% Stake in Comercia for US$19.2 Mil.
H O N D U R A S
HONDUTEL: Plans to Spend 400 Mil. Lempiras in Technology Upgrade
J A M A I C A
DYOLL INSURANCE: Cayman Island Policyholders May Get Paid
M E X I C O
APPLICA INC: Faces Securities Violation Suit in Florida
CFE: Australian & Swiss Companies Supplying Coal to Petacalco
GRUPO TMM: Holding Meeting and Conference Call on Feb. 28
SATMEX: Inks Debt Restructuring Accord with Senior Noteholders
P U E R T O R I C O
MUSICLAND HOLDING: Can Hire Ordinary Course Professionals
MUSICLAND HOLDING: Walks Away from 51 Real Property Leases
T R I N I D A D & T O B A G O
VIPER NETWORKS: Initiates Sales Expansion into Trinidad & Tobago
V E N E Z U E L A
PDVSA: Makes First Shipment to India
PDVSA: Sends Tanker in Place of Kim Jacob to Hovensa Refinery
- - - - - - - -
=================
A R G E N T I N A
=================
ANCLAMAT S.A.: General Reports Submission Ends Tomorrow
-------------------------------------------------------
The general report on the Anclamat S.A. bankruptcy case will be
submitted on Feb. 9, 2006. The submission followed the
presentation of the individual claims in court on Nov. 28, 2005.
The claims underwent verification phase that lasted until Oct.
17, 2005.
Anclamat S.A. entered bankruptcy protection Court No. 10 of
Buenos Aires' civil and commercial tribunal ordered the
company's liquidation. The order effectively transferred
control of the company's assets to court-appointed trustee, Mr.
Norberto Aurelio Alvarez.
Clerk No. 20 assists the court in this case.
Mr. Norberto Aurelio Alvarez, the trustee, can be reached at:
Rodriguez Pena 189
Buenos Aires
BASCOY S.A.: Individual Reports to be Presented on Feb. 9
---------------------------------------------------------
The validated claims of creditors of Bascoy S.A. -- a company
operating in Buenos Aires -- will be presented in court as
individual reports on Feb. 9, 2006. Court-appointed trustee
Horacio Jose Eugenio Caliri verified the claims until Nov. 28,
2005.
A general report on the case is also expected on March 23, 2006.
The submission of the report will be followed by an informative
assembly on Aug. 25, 2006.
Bascoy S.A. began reorganization proceedings after the city's
civil and commercial Court No. 19, with assistance from Clerk
No. 37, granted its petition.
During the reorganization, the company will be able to negotiate
a settlement proposal for its creditors so as to avoid a
straight liquidation.
Bascoy S.A. can be reached at:
Colombres 779
Buenos Aires
Mr. Horacio Jose Eugenio Caliri, the trustee, can be reached at:
Lavalle 1206
Buenos Aires
BAUD MOL: Trustee to Submit General Report on February 9
--------------------------------------------------------
Ms. Clara Auerhan, the court-appointed trustee for the
insolvency case of Buenos Aires' based company Baud Mol S.A.,
will be submitting a general report on Feb. 9, 2006.
The verification of claims forwarded by the creditors ended on
Oct. 12, 2005. Ms. Auerhan prepared individual reports out of
the validated claims and presented it in court for approval on
Nov. 28, 2005.
The company started reorganization after the city's civil and
commercial Court No. 6 approved the company's petition and
appointed Ms. Auerhan to supervise the proceedings as trustee.
Clerk No. 12 assists the court on this case.
An informative assembly is scheduled for July 28 this year.
Ms. Clara Auerhan, the trustee, can be reached at:
Uruguay 872
Buenos Aires
CATERING ESPECIALISTAS: Verification of Claims to End on Mar. 17
----------------------------------------------------------------
The verification of creditors' claims for the Catering
Especialistas S.R.L. insolvency case is set to end on March 17,
2006, states Infobae. Mr. Alfonso Raul Badaracco, the court-
appointed trustee tasked with examining the claims, will submit
the validation results as individual reports on April 28, 2006.
He will also present a general report in court on June 14, 2006.
On Dec. 4, 2006, the company's creditors will vote on the
settlement proposal prepared by the company.
Mr. Alfonso Raul Badaracco, the trustee, can be reached at:
Esmeralda 980
Buenos Aires
CW ARGENTINA: Trustee to Validate Claims until March 15
-------------------------------------------------------
Mr. Hector Franco, the trustee appointed by Buenos Aires' Court
No. 25 for the CW Argentina S.A. bankruptcy case, will be
verifying claims until March 15, 2006.
La Nacion relates that the court declared CW Argentina S.A.
bankrupt in favor of the petition filed by the company's
creditor, Mr. Juan Alastuey. Mr. Alastuey has claims amounting
to $3,425.40.
CW Argentina S.A. can be reached at:
Avenida Rivadavia 1645
Buenos Aires
Mr. Hector Franco, the trustee can be reached at:
Chacabuco 178
Buenos Aires
HSBC BANK: Inks $155MM Asset Purchase Deal with Banca Nazionale
---------------------------------------------------------------
According to reports, HSBC Bank Argentina S.A. signed an
agreement to acquire Italina Banca Nazionale del Lavoro SpA's
banking operations in Argentina for $155 million.
Banca Nazionale's operations in Argentina, comprising 91
branches and more than 725,000 customers, will now be merged
into the operations of HSBC Bank Argentina, which already has a
network of 58 and over 512,000 customers.
* * *
On June 15, 2005, Moody's Investors Service withdrew all of its
ratings for HSBC Bank Argentina S.A. for business reasons.
These ratings were withdrawn:
-- Long Term Foreign Currency Deposit Rating: Caa2, with
stable outlook; and
-- Short Term Foreign Currency Deposit Rating: Not Prime,
with stable outlook.
Moody's said the action does not reflect a change in the Bank's
creditworthiness.
MEIBEL PLAC: Seeks Reorganization Approval from Court
-----------------------------------------------------
Buenos Aires' civil and commercial Court No. 12 is currently
reviewing the merits of the reorganization petition filed by
Meibel Plac S.A. Argentine daily La Nacion reports that the
company decided to enter reorganization after failing to pay
debts amounting to $217,832.
The reorganization petition, if granted by the court, will allow
Meibel Plac to negotiate a settlement with its creditors in
order to avoid a straight liquidation. Clerk No. 24 assists the
court on this case.
Meibel Plac S.A. can be reached at:
Talcahuano 750
Buenos Aires
M.P. EDICIONES: Trustee to Present Validated Claims on Feb. 9
--------------------------------------------------------------
Estudio Chiaia, Stoltzing y Asociados, the court-appointed
trustee, will present the validated claims of creditors
against M.P. Ediciones S.A., a company under reorganization.
The claims underwent a verification phase, which ended on Nov.
25, 2005.
The trustee will also be preparing a general report of the case
and submit it in court on February 9.
Buenos Aires' civil and commercial court issued a resolution
opening the reorganization of M.P. Ediciones S.A. after the
company failed to pay its creditors.
An informative assembly -- the last phase of the reorganization
-- is set for Sep. 13, 2006.
M.P. Ediciones S.A. can be reached at:
Moreno 2062/64
Buenos Aires
Estudio Chiaia, Stoltzing y Asociados, the trustee, can be
reached at:
Suipacha 190
Buenos Aires
MUTUAL DE LA FEDERACION: Individual Reports Due February 9
----------------------------------------------------------
The deadline for the submission of the individual reports
prepared by the trustee for the Mutual de la Federacion de
Comercio e Industria de San Nicolas insolvency case -- Adriana
Bravo -- will be on Feb. 9, 2006. The reports were based on
creditors' claims, which the trustee verified until Nov. 25,
2005.
On March 27, 2006, Ms. Bravo will also present in court a
general report on the company's insolvency.
A settlement proposal will be presented by the company during an
informative assembly on Sep. 8, 2006.
Court No. 2 of San Nicolas' civil and commercial tribunal
handles the company's reorganization case. Clerk No. 4 assists
the court in the proceedings.
Mutual de la Federacion de Comercio e Industria de San Nicolas
can be reached at:
Bartolome Mitre 182
San Nicolas
Ms. Adriana Bravo, the trustee, can be reached at:
Avda. Central 2970 Bu Somisa
San Nicolas
PIKER S.R.L.: Verification of Claims Ends on April 10
-----------------------------------------------------
The verification of claims of creditors of bankrupt company
Piker S.R.L. will end on April 10, 2006, Argentine daily La
Nacion reports. Creditors must have their claims validated on
or before the said date or be disqualified from receiving any
distribution or payment that the company would make.
Buenos Aires-based Piker S.R.L. entered bankruptcy following the
ruling made by the city's Court No. 3 in favor of Mr. Terencio
Ruiz, whom the company owes $7,789.66.
The bankruptcy ruling placed the company under the supervision
of court-appointed trustee, Mr. Armando Gutman.
Piker S.R.L. can be reached at:
Pereyra 1781
Buenos Aires
Mr. Armando Gutman, the trustee, can be reached at:
Esmeralda 625
Buenos Aires
RIBRAS S.A.: Verification Phase for Claims to End on March 24
-------------------------------------------------------------
The verification phase for the creditors' claims against
bankrupt company Ribras S.A. will end on March 24, 2006, reports
La Nacion. Trustee Ernesto Puerta is tasked to validate the
claims and prepare individual reports out of the claims.
Infobae relates that Mr. Ernesto Puerta was assigned trustee for
the liquidation of Ribras S.A. after Buenos Aires' Court No. 24
declared the company bankrupt in favor of Cooperativa de
Vivienda Cr‚dito y Consumo Unicred, Ltda., which has claims
amounting to $1,850 against the company.
Clerk No. 47 assists the court with the wind-up proceedings.
Ribras S.A. can be reached at:
Avenida Alvarez Thomas 46
Buenos Aires
Mr. Ernesto Puerta, the trustee, can be reached at:
Fragata Presidente Sarmiento 72
Buenos Aires
=============
B E R M U D A
=============
INTELSAT: Aids MediaFLOTM's Media Delivery Network Launch
---------------------------------------------------------
Intelsat disclosed that it has signed a contract with MediaFLO
USA, Inc. for capacity on the Intelsat Americas-8 aka IA-8
satellite.
IA-8, Intelsat's newest and most powerful North American
satellite located at 89 degrees West, will support the MediaFLO
USA network deployment by providing satellite bandwidth and
connectivity to the MediaFLO USA transmitter sites for carriage
of wireless multimedia distribution capacity it will make
available to wireless operators in the United States.
Anticipated content includes live, streaming video and audio,
short-format content and IP data-casting.
Using Ku-band capacity, the newly operational IA-8 satellite
delivers to and supports MediaFLO USA's terrestrial distribution
network. The MediaFLO USA network delivers multimedia audio or
video content to mobile devices without impacting the devices'
normal voice and data services, all while reducing traffic on
wireless carrier's networks.
Steve Spengler, Intelsat's Vice President of Sales, stated,
"Intelsat satellite technology has often been at the forefront
of furthering technological advancement and continues to enable
new applications that require high-powered and reliable
capacity. We're committed to working with our customers and
partners in the development and support of new, leading
applications and services, such as those enabled by the MediaFLO
USA network, and look forward to supporting the growth of
leading technology however we can."
MediaFLO USA, Inc., is a wholly owned subsidiary of QUALCOMM
Incorporated, offering interactive wireless multimedia services
to consumers in cooperation with U.S. wireless operators. The
nationwide network, based on QUALCOMM's FLOTM Technology and
using the MediaFLO Media Distribution System, will deliver
multimedia content to mobile devices in the 700 MHz spectrum for
which QUALCOMM holds licenses with a nationwide footprint.
About Intelsat
Headquartered in Pembroke, Bermuda, Intelsat --
http://www.intelsat.com-- is a global communications provider
offering flexible and secure services to customers in over 200
countries and territories. Intelsat has maintained a leadership
position for over 40 years by distributing video, voice, and
data for television and content providers, government and
military entities, major corporations, telecommunications
carriers, and Internet service providers.
* * *
As previously reported on Feb. 7, 2006, Fitch Ratings placed the
ratings of Intelsat, Ltd. and its wholly owned subsidiary,
Intelsat (Bermuda), Ltd., on Rating Watch Negative following the
announcement that the company plans to issue $300 million
of senior discount notes to retire recently invested
equity of an equal amount. Fitch's rating action affected about
$4.6 million of existing debt.
The new notes are going to be issued by a newly formed
intermediate subsidiary placed between Intelsat and Intelsat
Bermuda. This would rank the new issue as structurally senior
to the Intelsat senior notes and structurally junior to all of
the debt at Intelsat Bermuda.
Fitch currently rates Intelsat and Bermuda as:
Intelsat
-- Senior unsecured notes 'B-'.
Bermuda
-- Senior unsecured notes 'B+';
-- Senior secured credit facilities 'BB' .
The proposed issuance and subsequent use of proceeds to retire
equity increases the estimated pro forma total leverage as of
Sept. 30, 2004, from about 6.2 times to 6.6x, based on Fitch
estimates.
Fitch expects that if the new senior discount note offering is
successful and $300 million of equity is retired that the
ratings on the existing senior notes at both the Intelsat, Ltd.
and Intelsat Bermuda levels could be affected negatively.
Fitch's 'BB' rating for the Intelsat Bermuda senior secured
credit facilities (the draw is estimated at $350 million with
$300 million unused on a revolver) is also at risk, although
Fitch recognizes the substantial value of the assets securing
the facilities. A future downgrade upon completion of the
proposed offering of senior discount notes would recognize the
impact of the additional leverage and the future significant
increase in cash interest expense in five years when the
proposed senior discount notes begin cash interest payments.
The five-year period may coincide with a possible need to
increase capital spending at that time to replace aging
satellites.
INTELSAT: Inks New Deal with RCS to Support Growing DTH Platform
----------------------------------------------------------------
Intelsat announced that Romania Cable Systems, the largest
direct-to-home (DTH) video content provider in Romania, has
signed a multi-million dollar contract with Intelsat for
additional capacity on the IS 10-02 satellite in order to expand
RCS' business outside Romania. The additional capacity will be
used to offer an expanded DTH bouquet to viewers in Hungary and
Slovakia, two new markets for RCS.
RCS offers approximately 60 channels of primarily European and
North American programming on the IS 10-02 satellite, which has
carried the platform since its successful launch in 2004. The
number of channels RCS offers on the platform, as well as the
number of viewers, has steadily increased, requiring RCS to
expand its business with Intelsat to accommodate its growth into
new markets and additional demand for its content.
"We came to Intelsat to launch our service because we knew they
could provide us not only with powerful, reliable coverage, but
also the flexibility to grow into new markets as our business
changed and grew," said Mr. Alexandru Oprea, President of RCS.
"Viewers in Romania have been hungry for the high-quality
content we bring to their homes via IS 10-02, and our expanded
contract with Intelsat enables us to respond to new demand for
our content in Slovakia and Hungary in a highly efficient manner
that is seamless with our current platform."
Jon Romm, President of Media Sales at Intelsat, stated, "One
reason our relationship with RCS continues to be strong and why
RCS continues to expand its business with us is because we have
helped them grow. Millions of viewers already look at the
content carried over the IS 10-02 satellite, so new channels
looking to access the Eastern European market for the first time
can get instant access to a large viewer community, giving them
a head-start towards a successful launch."
About Intelsat
Headquartered in Pembroke, Bermuda, Intelsat --
http://www.intelsat.com-- is a global communications provider
offering flexible and secure services to customers in over 200
countries and territories. Intelsat has maintained a leadership
position for over 40 years by distributing video, voice, and
data for television and content providers, government and
military entities, major corporations, telecommunications
carriers, and Internet service providers.
* * *
As previously reported on Feb. 7, 2006, Fitch Ratings placed the
ratings of Intelsat, Ltd. and its wholly owned subsidiary,
Intelsat (Bermuda), Ltd., on Rating Watch Negative following the
announcement that the company plans to issue $300 million
of senior discount notes to retire recently invested
equity of an equal amount. Fitch's rating action affected about
$4.6 million of existing debt.
The new notes are going to be issued by a newly formed
intermediate subsidiary placed between Intelsat and Intelsat
Bermuda. This would rank the new issue as structurally senior
to the Intelsat senior notes and structurally junior to all of
the debt at Intelsat Bermuda.
Fitch currently rates Intelsat and Bermuda as:
Intelsat
-- Senior unsecured notes 'B-'.
Bermuda
-- Senior unsecured notes 'B+';
-- Senior secured credit facilities 'BB' .
The proposed issuance and subsequent use of proceeds to retire
equity increases the estimated pro forma total leverage as of
Sept. 30, 2004, from about 6.2 times to 6.6x, based on Fitch
estimates.
Fitch expects that if the new senior discount note offering is
successful and $300 million of equity is retired that the
ratings on the existing senior notes at both the Intelsat, Ltd.
and Intelsat Bermuda levels could be affected negatively.
Fitch's 'BB' rating for the Intelsat Bermuda senior secured
credit facilities (the draw is estimated at $350 million with
$300 million unused on a revolver) is also at risk, although
Fitch recognizes the substantial value of the assets securing
the facilities. A future downgrade upon completion of the
proposed offering of senior discount notes would recognize the
impact of the additional leverage and the future significant
increase in cash interest expense in five years when the
proposed senior discount notes begin cash interest payments.
The five-year period may coincide with a possible need to
increase capital spending at that time to replace aging
satellites.
LORAL SPACE: XTAR Signs MSA with Two Government Firms
-----------------------------------------------------
XTAR, LLC, a joint venture of Loral Space & Communications,
disclosed that it has signed master service agreements with two
prominent government communications services companies: General
Dynamics Satellite Communications Services, Inc., and Stratos
Mobile Networks, Inc. In accordance with the MSAs, these
companies will market and lease XTAR's X-band capacity to a wide
range of US or Allied government agencies.
The MSAs allow for each provider to complement its current
satellite and terrestrial communications portfolio with high-
power commercial x-band service. Government customers can now
use one of these marketing partners of XTAR for bandwidth only
or for customized communications solutions using a combination
of resources.
"Adding these top-tier government marketing channels expands the
reach of XTAR services and is a significant step forward for
XTAR," said Denis Curtin, chief operating officer, XTAR LLC.
"We intend to further expand our channel program pursuing
opportunities with additional US and Allied government
entities."
In May 2005, XTAR was awarded a contract with the US Department
of State's Diplomatic Telecommunications Service Program Office,
Fairfax, Va., to provide x-band communications services to
embassies and consulates in Africa and Asia. XTAR also provides
service to the Spanish Ministry of Defense and Danish Armed
Forces.
Using current US military legacy equipment, test results from
XTAR-EUR have consistently shown data rates that far eclipse
current military x-band systems. With minor antenna and
terminal modifications, XTAR has achieved data rates in excess
of 100 Mbps using both left and right hand polarizations.
Built by Space Systems/Loral, XTAR-EUR entered service in April
2005. The satellite carries twelve 72 MHz, high-power X-band
transponders that provide coverage from Eastern Brazil and the
Atlantic Ocean, across all of Europe, Africa and the Middle East
to as far east as Singapore. XTAR-EUR is expected to provide
service for nearly 20 years. Upon the launch of SPAINSAT in
early 2006, XTAR will lease from HISDESAT eight 72 MHz X-band
transponders on the satellite, to be designated XTAR-LANT, in
order to provide greater flexibility and additional X-band
services.
The XTAR-EUR satellite features traditional global beams as well
as on-board switching and multiple steerable beams, allowing
users access to x-band capacity as they travel anywhere within
the footprint of the satellite. XTAR-EUR is designed to work
with existing x-band terminals, as well as next generation x-
band terminals that feature antennas smaller than 2.4 meters.
XTAR, LLC -- http://www.xtarllc.com-- headquartered in
Rockville, Md., is a new satellite communications company
committed to serving the long-haul communications, logistics and
infrastructure requirements of the US, Spanish and allied
governments. The company is a joint venture between Loral Space
& Communications, which owns 56 percent, and HISDESAT, which
owns 44%.
HISDESAT Servicios Estrategicos S.A. -- http://www.hisdesat.es/
-- is a Spanish company headquartered in Madrid. HISDESAT's
aims are the acquisition, operation and commercialization of
Government-oriented space systems, beginning with satellite
communications in the X- and Ka-band. HISDESAT is owned jointly
by HISPASAT, S.A., the Spanish commercial satellite services
company, INSA and the leaders of Spain's space industries: EADS-
CASA Espacio, INDRA and SENER.
About Loral Space
Loral Space & Communications -- http://www.loral.com/-- is a
satellite communications company. It owns and operates a fleet
of telecommunications satellites used to broadcast video
entertainment programming, distribute broadband data, and
provide access to Internet services and other value-added
communications services. Loral also is a world-class leader in
the design and manufacture of satellites and satellite systems
for commercial and government applications including direct-to-
home television, broadband communications, wireless telephony,
weather monitoring and air traffic management.
The Company and various affiliates filed for chapter 11
protection (Bankr. S.D.N.Y. Case No. 03-41710) on July 15,
2003. Stephen Karotkin, Esq., and Lori R. Fife, Esq., at Weil,
Gotshal & Manges LLP, represent the Debtors in their successful
restructuring. As of Dec. 31, 2004, the Company listed assets
totaling approximately $1.2 billion and liabilities totaling
approximately $2.3 billion. The Court confirmed the Debtors'
chapter 11 Plan on Aug. 1, 2005.
=============
B O L I V I A
=============
AES COMMUNICATIONS: In Talks with Potential Purchasers
------------------------------------------------------
AES Bolivia aka AES Communications Bolivia is in talks with a
number of potential purchasers, Bernando Quiroga, sales and
business director, told Business News Americas.
"AXS is evaluating various acquisition offers, including one
from Cotel," said Mr. Quiroga, adding that one of the potential
buyers is an international company.
Earlier this week, Cotel's Board President, Fernando Dips, was
quoted as saying that the La Paz-based telephony cooperative was
considering buying AES Communications, whose fiber optic network
would reduce the cost of the cooperative's services by 30% to
40%, according to local daily El Diario.
Business News relates that Mr. Dips did not say whether the
company is actually up for sale or if Cotel would attempt some
sort of non-consensual acquisition, given AES' current legal
troubles. The operator is fighting to prevent telecoms
regulator, Sittel, from canceling its concession as a result of
a series of unpaid debts.
Mr. Quiroga ruled out any possibility of AES being bought
without its permission. "Cotel, or any other interested party,
will have to be approved by [AXS's] owners," before AES changes
hands, he told Business News.
The company filed a petition on Jan. 9, requesting a revocation
against Sittel's decision to rescind its concession.
"We still haven't heard anything concrete from Sittel - we're
still waiting for its decision," Mr. Quiroga said to Business
News.
===========
B R A Z I L
===========
BANCO ITAU: Joint Venture with XL Capital to Begin
--------------------------------------------------
Brazilian bank Banco Itau Holding Financeira's joint venture
with Bermuda-based insurance group XL Capital will start in the
second half of this year, Business News Americas reports.
The joint venture, which was revealed on Jan. 31, 2006, will
combine the property, casualty and specialty commercial
insurance businesses of XL and Banco Itau's insurance arm, Itau
Seguros.
Luiz de Campos Salles, president of Seguros, reportedly said
that the new insurer, which will be created out of the two
companies' unions, will probably be called Itau XL Seguros and
will commence operations with BRL170 million (US$77 million) in
net equity and BRL600 million in billing.
Mr. Salles informed that the commercial focus of the new insurer
will be companies that bill more than 70Mil reais a year.
According to Business News, each party will have 50% stake in
the company. Itau, however, will have 51% of voting capital and
will have the power to appoint the CEO.
The deal between the companies is still subject to regulatory
approvals, negotiation of definitive documents and other
conditions.
About XL Capital
XL Capital group of companies provide value for their customers
by delivering solid and innovative risk management products and
financial solutions backed by outstanding customer service.
About Banco Itau
Banco Itau is the third largest provider of commercial lines
insurance in Brazil and had assets of US$65 billion at September
30, 2005.
Banco Itau's 4-3/8% $125 Million notes due Jan. 31, 2008,
carries Moody's Ba1 rating and Standard & Poor's BB- rating.
CVRD: Discussing Steelmaking Plant Construction with Para State
--------------------------------------------------------------
Business New Americas relates that the governor of Para, Brazil,
Simao Jatene, is in talks with iron ore miner CVRD aka Companhia
Vale do Rio Doce (NYSE: RIO) to advance plans to build a
steelmaking plant in the state.
"The idea is to build a steelmaking plant using the existing pig
iron industry in the state," a Para official told Business News,
adding that the project is in an early stage. As such, the
official could not discuss CVRD's specific role in the project
nor the percentage of government control.
According to Business News' source, CVRD has shown an interest
in the project as the long pig iron producers agree to enter as
partners. Pig iron is used to manufacture steel. The project
is estimated to cost US$350 million.
The plant, Business News was told, could be built in the region
of Maraba city in the state's south, "a strategic location" that
would allow investors to transport high temperature liquid iron.
A CVRD spokesperson confirmed to Business News that it is in
talks with Para's government regarding the project.
Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.
* * *
On Jan. 5, 2006, Fitch Ratings assigned a long-term foreign
currency rating of 'BB' to Vale Overseas Limited's proposed
US$300 million issuance due 2016. Vale Overseas is a wholly
owned subsidiary of Companhia Vale do Rio Doce, a large
diversified mining company located in Brazil. The notes are
unsecured obligations of Vale Overseas and are unconditionally
guaranteed by CVRD. The obligation to guarantee the notes rank
pari passu with all of CVRD's other unsecured and unsubordinated
debt obligations. Fitch expects the proceeds of this issuance
to be used for general corporate purposes and primarily to pay
down US$300 million of Vale Overseas' 9.0% guaranteed notes due
2013.
Fitch also maintains these ratings for CVRD and CVRD Finance
Ltd., a wholly owned subsidiary of CVRD:
-- CVRD foreign currency rating: 'BB', Outlook Positive;
-- CVRD local currency rating: 'BBB' Outlook Stable;
-- CVRD national scale rating: 'AAA(bra)', Outlook Stable;
-- CVRD Finance Ltd.: series 2000-1 and series 2000-3: 'BBB';
-- CVRD Finance Ltd., series 2000-2 and series 2003-1: 'AAA'.
FURNAS CENTRAIS: Closes $314M Foz do Chapeco Purchase by Feb. 10
----------------------------------------------------------------
Furnas Centrais Eletricas S.A. is close to completing a 700
million real (US$314 million) purchase of a 40% stake in the
855MW Foz do Chapeco hydroelectric power project in Southern
Brazil, Agencia Estado reports.
CVRD aka Companhia Vale do Rio Doce owns the stake in the power
project. CVRD is exiting the business, alleging rising power
transmission costs. The sale is expected to close on February
10, Agencia Estado reports.
According to Business News America, total investment in the
project is estimated at 2 billion reais. Other investors in the
project are Brazilian power group CPFL Energia with 40% and Rio
Grande do Sul state power company CEEE, which has a 20% stake.
Furnas has been expanding its investment in power generation and
recently bought a 40% stake in the 452MW Peixe Angical hydro
project from Energias do Brasil, a unit of Portugal's state
power company EDP. The company is reportedly in talks to buy a
minority stake in the 82MW Retiro Baixo hydro project.
Foz do Chapeco's concession was awarded in 2001 and is scheduled
to start commercial operations in the fourth quarter of 2008.
The project is located on the Uruguai river between the southern
states of Rio Grande do Sul and Santa Catarina.
Furnas is a subsidiary of Eletrobras - Centrais Eletricas
Brasileiras S.A. The company operates some 19,000km of
transmission lines and has installed capacity of 9,476MW.
* * *
On Jan. 30, 2006, Moody's Investors Service puts a Ba2 issuer
rating on Furnas Centrais Eletricas S.A.
GLOBO: Moody's Upgrades Currency Corporate Family Rating to B1
--------------------------------------------------------------
Moody's Investors Service upgraded the foreign currency
corporate family rating of Globo Comunicacao e Participacoes
S.A. --formerly called Globopar or Globo Comunicacoes e
Participacoes S.A. -- to B1 from Caa3. The outlook is stable.
The rating action primarily reflects the successful completion
of Globo's debt restructuring program, leading to a
significantly more manageable debt amortization schedule.
Moreover, the upgrade to B1 reflects Globo's improved corporate
structure, as a result of the merger of TV Globo, Ltda., and
divestiture of some weaker performing businesses. The action
also reflects much improved credit metrics over the past two
years as Globo benefits from the more favorable economic and
advertising environment in Brazil.
Among other factors, Globo's B1 rating reflects a highly
cyclical business that is susceptible to the volatile Brazilian
economic environment; the fact that the majority of its
restructured debt and a small part of its programming costs
remain denominated in foreign currency; the company's high fixed
cost base stemming from its high quality programming strategy;
as well as its limited historic performance post-restructuring.
More positively, the B1 rating mainly reflects Globo's position
as the dominant broadcast company in Brazil with over 55% of
total audience share, a position supported by its high quality
programming.
The rating also reflects the company's improved liquidity and
ability to meet its debt obligations following the debt
restructuring, and Globo's steps over the past few years to
improve its cost structure.
Headquartered in Rio de Janeiro, Globo is Brazil's largest media
group, owned by the Marinho family and formed from the merger of
TV Globo, Ltda., with and into Globo Comunicacoes e
Participacoes S.A. aka Globopar in 2005. TV Globo is Brazil's
leading broadcast TV network, including an internet operation
and sound business, and accounts for over 85% of Globo's
revenues and EBITDA. Globo has other business activities
including: magazine publishing and printing, pay-TV production
and programming, and interests in Brazil's leading satellite
direct-to-home and cable operator.
NET SERVICOS: Realizes US$58.9MM Profit in 4th Quarter of 2005
--------------------------------------------------------------
NET Servicos de Comunicacao, Brazil's biggest cable television
provider, reported strong earnings in the fourth quarter which
helped it post its first annual profit ever in 2005, Reuters
reports.
The company, which is co-owned by Organizacoes Globo, Brazil's
largest media group, and Mexican telecoms giant Telefonos de
Mexico, made a net profit of 130.9 million reais ($58.9 million)
in the fourth quarter. In the same period in 2004 it posted a
profit of 107.9 million reais, Reuters reports.
The strong quarter helped NET, which emerged from a prolonged
debt restructuring last year, finish 2005 with net earnings of
125.7 million reais, compared to a 45.4 million reais net loss
for the same period in 2004.
"With its 2005 earnings report, NET consolidates its
turnaround," Francisco Valim, the company's chief executive,
told Reuters.
Though NET's bottom line was helped by a tax break in the fourth
quarter totaling 107 million reais, Mr. Valim told Reuters that
the company would have still finished the year in the black
without that benefit.
Net revenue jumped 25% in the fourth quarter to 432.6 million
reais, helped by robust growth in the company's broadband
Internet business. In 2005, net revenue totaled 1.59 billion
reais, up 14.4% from the previous year, Reuters reports.
The company nearly doubled its broadband subscriber base in the
fourth quarter from a year ago, finishing with 366,500 paying
customers, compared to 188,800 broadband subscribers in 2004.
Its core business -- pay TV -- finished the year with 1.54
million subscribers, an 8.5% increase over the previous year.
On the operational level, earnings before interest, taxes,
depreciation and amortization, a measure of cash flow known as
EBITDA, rose 18% in the fourth quarter from a year ago to 114.7
million reais.
NET invested 188.6 million reais last year to grow its
subscriber base. Mr. Valim told Reuters the company plans to
invest heavily again in 2006, but declined to provide any
figures.
Headquartered in Sao Paulo, Brazil, NET Servi‡os de Comunica‡ao
-- http://nettv.globo.com/NETServ/br/home/indexnet.jsp?id=1--
is the largest subscriber TV multi-operator in Brazil, as it
operates the NET brand in major cities, including operations in
the 4 largest cities: Sao Paulo, Rio de Janeiro, Belo Horizonte
and Porto Alegre.
NET offers also Broadband Internet services through its NET
VIRTUA brand name.
* * *
As reported by Troubled Company Reporter on Nov. 15, 2005,
Moody's Investors Service placed on Friday NET Servicos de
Comunicacoes S.A's global local currency corporate family rating
of B3 on review for possible upgrade.
===========================
C A Y M A N I S L A N D S
===========================
ALPHAMIX MASTER: Liquidator to Stop Verifying Claims on Feb. 24
---------------------------------------------------------------
Ms. Muriel Bonnet, the liquidator of Alphamix Master Fund
Limited, will stop accepting and verifying claims on Feb. 24,
2006. Creditors must therefore prove their debts and claims and
establish any title they may have under the Companies Law 2004
Revision on or before the said date. Creditors whose claims
have not been validated will not receive any distribution or
payment that the company would make.
Alphamix Master Fund Limited entered voluntary liquidation on
Dec. 22, 2005.
Ms. Muriel Bonnet, the voluntary liquidator, can be reached at:
c/o Finaltis, 30 rue d'Astorg
75008 Paris, France
DYOLL INSURANCE: Cayman Island Policyholders May Get Paid
---------------------------------------------------------
According to a report from the Jamaica Gleaner, the Financial
Services Commission has discharged its responsibilities in Dyoll
Insurance Company Limited.
Ken Krys of RSM Cayman Islands and John Lee of Price-
WaterhouseCoopers in Jamaica, acting as Joint Official
Liquidators of the company, are ordered to pay Jamaican
policyholders from the $653 Million deposit held by the
insurance regulator. Any proceeds left after local
policyholders are paid will be distributed to non-local
policyholders.
The FSC took control of Dyoll Insurance on March 7, 2005, in
order to establish the true position of the Company, address the
matter of settlement to its claimants and ensure that its
policies will remain in force after a high level of insurance
claims were levelled on the company as a result of the hurricane
Ivan. Kenneth Tomlison was appointed temporary manager.
In Nov. 2005, Jamaica's Supreme Court has ruled that non-
Jamaican policyholders of Dyoll Insurance will not have a share
in the amount deposited with the Financial Services Commission.
The court ruled that the $653 million held by the FSC had to be
distributed in accordance with the Insurance Act 2001, section
59, which says that the prescribed deposit, on the winding up of
an insurance company, should be applied first to settle the
claims of local policyholders.
HILLSBOROUGH LEE: Claims to be Verified until February 24
---------------------------------------------------------
The Hillsborough Lee Corporation's creditors are required to
prove debts or claims on or before Feb. 24, 2006, and establish
any title they may have under the Companies Law 2004 Revision.
Creditors who fail to have their claims validated after the date
will not benefit from any distribution or payment that the
company will make.
Hillsborough Lee Corporation started winding up operations on
Jan. 9, 2006, and selected Mr. Enrique Garces as liquidator.
Mr. Enrique Garces, the voluntary liquidator, can be reached at:
P.O. Box 707 GT
Grand Cayman, Cayman Islands
Greg Brooks
Telephone: (345)945 4777
Facsimile: (345) 945 4799
TRAINER WORTHAM: Creditors Given until Feb. 24 to Submit Claims
---------------------------------------------------------------
Creditors of Trainer Wortham First Republic CBO I, Limited, are
given until Feb. 24, 2006, to present proofs of claim to Messrs.
Phillip Hinds and Emile Small, the liquidators of the company.
Creditors must submit full particulars of their debts or claims.
Failure to do so would exclude them from receiving any
distribution or payment that the company would make.
Trainer Wortham First Republic CBO I, Limited, entered voluntary
wind up on Jan. 6, 2006.
Messrs. Phillip Hinds and Emile Small, the joint voluntary
liquidators, can be reached at:
Maples Finance Limited
P.O. Box 1093GT
Grand Cayman, Cayman Islands
VOLTAIRE FUND: Creditors Must Prove Claims by February 24
---------------------------------------------------------
Creditors of Voltaire Fund -- company in voluntary liquidation
-- are to prove their debts or claims on or before Feb. 24,
2006, and send full particulars of their debts or claims to the
joint liquidators of the company. Failure to do so would mean
exclusion from the benefit of any distribution made before the
debts are proved or from objecting to the distribution.
Voltaire Fund entered bankruptcy on Sep. 30, 2005, and appointed
Messrs. Johann Le Roux and Jon Roney as liquidators.
Mr. Jon Roney, the joint voluntary liquidator, can be reached
at:
Maples Finance Limited
P.O. Box 1093GT
Grand Cayman, Cayman Islands
=========
C H I L E
=========
BANCO SANTANDER: Altavida Santander Buys US$4.45M Consumer Loans
----------------------------------------------------------------
Business News Americas reports that Chilean life insurer
Altavida Santander Seguros de Vida has acquired consumer loans
from its sister bank, Banco Santander Santiago (NYSE: SAN) worth
2.35 billion pesos (US$4.45 million).
In 2005, Altavida bought about 2,500 individual loans from
Santander Santiago valued at 6.3 billion pesos, Business News
says. The new purchase includes 675 consumer loans with an
outstanding value of 2.2 billion pesos. The loan with the
longest maturity expires in September 2012.
Altavida Santander ranked eighth in the local life insurers'
market at the end of September, with premiums totaling 45.5
bilion pesos. Santander Santiago is Chile's largest bank in
terms of overall market share.
Both companies are controlled by Spanish financial group Grupo
Santander (NYSE: STD).
* * *
As previously reported on Jan. 6, 2006, Moody's Investor
Services reaffirmed Banco Santander Santiago's credit risk
ratings:
* Bank Financial Strength: B-
* Long-term Bank Deposits: Baa1
* Senior bonds: A2
* Subordinated Debt: A3
* Short-term: P-2
* Outlook: Positive: Deposits and Stable: Bank Financial
Strength Ratings and Senior and Subordinated Foreign
Currency Debt Ratings
The Bank Financial Strength Rating (BFSR) is the highest Moody's
assigns to any Latin American Bank. The A2 Senior and A3
Subordinated Foreign Currency Debt ratings pierce Chile's
country ceiling. The Bank's long-term deposit rating, Baa1, is
capped by the sovereign ceiling.
===============
C O L O M B I A
===============
BANCOLOMBIA: Purchases 98.7% Stake in Comercia for US$19.2 Mil.
---------------------------------------------------------------
Bancolombia (NYSE: CIB), Colombia's largest bank has bought a
98.57% stake in the country's eighth largest factoring company,
Comercia, for 43.6 billion pesos (US$19.2 million), Business
News Americas reports.
Comercia's largest shareholder, textile company Fabricato-
Tejicondor, held 98.57% of the company's outstanding shares
directly and through subsidiaries, Business News relates.
As of Sept. 30, 2005, Comercia's assets totaled 183 billion
pesos and it had a loan portfolio of 157 billion pesos.
* * *
On Dec. 22, 2005, Fitch Ratings affirmed the ratings
assigned to Bancolombia, as:
-- Long-term/short-term foreign currency at 'BB/B';
-- Long-term/short-term local currency at 'BBB-/F3';
-- Individual at 'C';
-- Support at '3'.
The ratings assigned to Bancolombia and subsidiaries reflect its
dominant Colombian franchise, sound asset quality, and solid
performance, which should be further strengthened by the recent
merger with Conavi and Corfinsura and, in turn, boost capital,
which weakened with the merger. The ratings also factor in the
challenges posed by operational integration, its high exposure
to the Colombian government, and the risks inherent in its
operating environment.
===============
H O N D U R A S
===============
HONDUTEL: Plans to Spend 400 Mil. Lempiras in Technology Upgrade
----------------------------------------------------------------
Hondutel, Honduras' state telecom company, will spend 400
million lempiras (US$21.2 million) in its network this year,
Business News Americas reports. The amount, which was disclosed
earlier by the company's former CEO Alonso Valenzuela to local
daily La Prensa was confirmed by the new CEO Jacobo Regalado.
The investments are likely to be made in obtaining technology to
create a mobile service and to increase capacity for broadband
and other services.
According to Regalado, the company's technical division
originally recommended a budget of 900 million lempiras. The
CEO, however, did not explain why the figure was shrunk to 400
million lempiras.
The company needs 600 million lempiras just to start using the
mobile license in the 1900MHz band and set up the country's
third mobile operator, said Valenzuela.
Hondutel is the state-owned fixed-line telecommunications
monopoly of Honduras. It is currently seeking ways of fending
off competition since it lost its monopoly on long distance
telephony on Dec. 25, 2005.
* * *
As reported in Troubled Company Reporter on Jan. 11, 2006,
analysts stated that Hondutel will have to find a strategic
partner in order to survive the competition in the Internet and
mobile telephony segments, as it faces an uncertain future after
its monopoly of the international long distance market, opening
up the market to greater competition.
=============
J A M A I C A
=============
DYOLL INSURANCE: Cayman Island Policyholders May Get Paid
---------------------------------------------------------
According to a report from the Jamaica Gleaner, the Financial
Services Commission has discharged its responsibilities in Dyoll
Insurance Company Limited.
Ken Krys of RSM Cayman Islands and John Lee of Price-
WaterhouseCoopers in Jamaica, acting as Joint Official
Liquidators of the company, are ordered to pay Jamaican
policyholders from the $653 Million deposit held by the
insurance regulator. Any proceeds left after local
policyholders are paid will be distributed to non-local
policyholders.
The FSC took control of Dyoll Insurance on March 7, 2005, in
order to establish the true position of the Company, address the
matter of settlement to its claimants and ensure that its
policies will remain in force after a high level of insurance
claims were levelled on the company as a result of the hurricane
Ivan. Kenneth Tomlison was appointed temporary manager.
In Nov. 2005, Jamaica's Supreme Court has ruled that non-
Jamaican policyholders of Dyoll Insurance will not have a share
in the amount deposited with the Financial Services Commission.
The court ruled that the $653 million held by the FSC had to be
distributed in accordance with the Insurance Act 2001, section
59, which says that the prescribed deposit, on the winding up of
an insurance company, should be applied first to settle the
claims of local policyholders.
===========
M E X I C O
===========
APPLICA INC: Faces Securities Violation Suit in Florida
-------------------------------------------------------
Applica Incorporated (NYSE:APN) announced that it has learned
that a class action lawsuit was filed against it and certain of
its executive officers in the United States District Court for
the Southern District of Florida on behalf of purchasers of
Applica Incorporated common stock during the period between
November 4, 2004, and April 28, 2005.
The complaint charges Applica and the executive officers with
violations of the Securities Exchange Act of 1934. Applica has
not yet been served with the complaint, but it believes that the
action is without merit and intends to vigorously defend the
lawsuit and any related actions.
Applica Incorporated -- http://www.applicainc.com/-- and its
subsidiaries are marketers and distributors of a broad range of
branded small household appliances. Applica markets and
distributes kitchen products, home products, pest control
products, pet care products and personal care products. Applica
markets products under licensed brand names, such as Black &
Decker(R), its own brand names, such as Windmere(R),
LitterMaid(R), Belson(R) and Applica(R), and other private-label
brand names. Applica's customers include mass merchandisers,
specialty retailers and appliance distributors primarily in
North America, Latin America and the Caribbean. The Company
operates a manufacturing facility in Mexico.
* * *
As reported in the Troubled Company Reporter on Aug. 5, 2005,
Standard & Poor's Ratings Services lowered its corporate credit
rating on small appliance manufacturer Applica Inc. to 'CCC+'
from 'B-' and its subordinated debt rating on the company to
'CCC-' from 'CCC'.
In addition, all ratings on the Miramar, Florida-based company
were removed from CreditWatch with negative implications, where
they were placed April 21, 2005. S&P said the outlook was
negative.
CFE: Australian & Swiss Companies Supplying Coal to Petacalco
-------------------------------------------------------------
Australian mining company Coal & Allied and Swiss resources
company Xstrata Plc have won contracts to supply 8.8 million
tons of coal to CFE aka Comision Federal de Electricidad's
2,100MW Petacalco power plan in Guerrero, Mexico, the Associated
Press reports.
The contracts are worth a combined A$688 million (US$517
million), which represents the largest-ever export deal with
Mexico and is a "major boost" to Australia's overall trade
relationship with the Latin American country, AP says.
Coal & Allied Industries, a subsidiary of Anglo-Australian
mining company Rio Tinto (NYSE: RTP), will supply 4.29Mt from
its coalmines in New South Wales, the company said in a
statement.
"Australian coal producers enjoy a freight advantage over China
and Indonesia, our main competitors," Coal & Allied managing
director Grant Thorne said in the statement.
Xstrata (LSE: XTA) will also supply 4.55Mt from its Australian
mines and both contracts will be signed on February 3, AP says.
The coal will be shipped to Mexico in 17 consignments from March
2006-August 2007.
Australia is a potential supplier of liquefied natural gas to
Mexican LNG regasification terminals being built on the Pacific
coast.
* * *
CFE is a state-owned integrated power company that dominates
generation, transmission and distribution in Mexico. It has
20.6 million clients, 39,182km of transmission infrastructure,
156,647MVA transformation capacity and 163 generation plants
that at end-March 2003 had 40,350MW combined capacity. Seventy
five per cent of sales are direct to the client, 24.5% are to
Mexico City distributor Luz y Fuerza del Centro and the
remaining 0.5% are exports. The industrial sector accounts for
61% of direct sales, followed by residential (23%), commercial
(7%), agriculture (5%) and services (4%).
The company suffered increasing losses for 2003 and 2004. CFE
incurred MXN6.2 billion loss in 2003, and MXN119 billion loss in
2004.
GRUPO TMM: Holding Meeting and Conference Call on Feb. 28
---------------------------------------------------------
Grupo TMM, S.A. (BMV:TMM A) and (NYSE:TMM) will publish fourth-
quarter and full-year 2005 financial results on February 27
after the close of trading on the New York Stock Exchange.
TMM's management will host an earnings presentation to review
financial and operational highlights on Tuesday, February 28 at
11:00 a.m. at the Waldorf Astoria Hotel located at 301 Park
Avenue, 18th Floor, Starlight Roof in New York. Interested
parties unable to attend the meeting are invited to listen to
the presentation via conference call or Webcast.
To participate in the conference call, please dial 800-240-2134
(domestic) or 303-205-0033 (international) at least five minutes
prior to the start of the event. Accompanying visuals and a
simultaneous Webcast of the meeting will be available at
http://www.actioncast.acttel.com,Event ID: 32079.
A replay of the conference call will be available through March
8, 2006, at 11:59 p.m. Eastern Time, by dialing 800-405-2236 or
303-590-3000, and entering conference ID 11052097. On the
Internet a replay will be available for 30 days at
http://www.actioncast.acttel.com,Event ID: 32079.
Headquartered in Mexico City, Grupo TMM S.A. --
http://www.grupotmm.com/-- is a Latin American multimodal
transportation and logistics company. Through its branch
offices and network of subsidiary companies, TMM provides a
dynamic combination of ocean and land transportation services.
* * *
As reported in today's Troubled Company Reporter, Standard &
Poor's Ratings Services raised its corporate credit rating on
Grupo TMM S.A. to 'B-' from 'CCC.' The rating was removed from
Creditwatch, where it was placed on Dec. 15, 2004. S&P said the
outlook is positive.
SATMEX: Inks Debt Restructuring Accord with Senior Noteholders
--------------------------------------------------------------
Satelites Mexicanos, S.A. de C.V., Mexico's leading satellite
service provider, announced that the principal terms of a
restructuring of its indebtedness, supported by the Conciliador
appointed in its Concurso Mercantil proceeding, were reached
among the ad-hoc committees of holders of the Senior Secured
Floating Rate Notes due 2004 and the 10-1/8% Senior Notes due
2004, the Company and its shareholders.
"After more than two years of trying to reconcile many highly
complex issues, I am pleased that Satmex will emerge from this
process with a better financial outlook and a more competitive
company, able to continue delivering premier satellite services
to its most important constituents, its customers," said Sergio
Autrey, Chairman and CEO of Satmex. "The upcoming launch of
Satmex 6 in May of this year will fortify the company even
further."
Richard Mastoloni, vice president and treasurer of Loral and
representing Loral's interests in Satmex said, "This agreement
is the culmination of the last few years of hard work that Loral
has contributed to the restructuring of Satmex's business.
Without the need for external financing, Satmex will now be able
to launch the Space Systems/Loral-built Satmex 6 satellite, one
of the region's largest and most powerful satellites that will
provide high-demand C- and Ku-band coverage of the entire
Western hemisphere."
Thomas Heather, the Conciliador in the Concurso Mercantil
proceeding of Satmex, appointed at the request of Mexico's
Ministry of Communications and Transportation, said, "The
challenge was to preserve the substantial value inherent in
Satmex and to quickly bring all parties into agreement in order
to eradicate the uncertainty that has existed thus far in the
process. The country's invaluable assets, its orbital positions
and its satellite coverage, will continue to receive the key
communication support of Satmex. This continuity will create
the confidence necessary for new investment in this area. All
applicable governmental approvals necessary to implement the
restructuring plan, including those of the Ministry of
Communications and Transportation, are expected to be issued in
due course and in a timely manner."
"The ad hoc committee of the 10 1/8 percent senior noteholders
is pleased that we have finally reached a fundamentally fair
agreement-in-principle that creates the sound financial footing
required for Satmex to succeed," said Robert L. Rauch, partner
and director of research of Gramercy Advisors LLC, who heads the
committee. "We would like to thank the conciliador Thomas
Heather and the Mexican government for providing the leadership
necessary to reach this consensual restructuring."
"This has been a complicated and challenging deal," said
Mitchell Harwood of Mitchell A. Harwood Partners, financial
advisor to the Ad Hoc Committee of Floating Rate Noteholders.
The Floating Rate Noteholders, including GoldenTree Asset
Management and Murray Capital Management, are pleased that they
have arrived at an agreement in principle and look forward to a
speedy resolution of the deal.
The Company expects that, with the support of its Creditors and
shareholders, negotiations of the comprehensive terms and
conditions will move forward quickly and resolution of the many
outstanding issues will be achieved in a timely manner, although
there is no assurance that final agreement will be reached. The
restructuring agreement is subject to receipt of necessary
Mexican government regulatory approvals.
Specifically, the agreement provides that holders of the
existing U.S.$203.4 million of FRNs will receive new first
priority senior secured notes with a face value equal to the sum
of current principal and accrued interest through the effective
date of the restructuring in satisfaction of the obligations due
under the FRNs.
The terms proposed for the First Priority Senior Secured Notes
are as:
-- Five year maturity with a quarterly coupon of LIBOR + 875
basis points;
-- Callable at a price of 103 in year 1, 102 in year 2, 101
in year 3 and at par (plus accrued interest);
-- First priority security interest in Satmex's assets; and
-- Cash sweep prepayments on any cash balances over US$5
million.
The agreement also includes the issuance of new second lien
senior notes in the principal amount of US$140,000,000 and
certain shares of reorganized Satmex to the holders of the
existing U.S.$320 million of HYBs in satisfaction of the
obligations due under the HYBs including all accrued interest.
The proposal provides for these terms for the Second Priority
Senior Secured Notes:
-- Seven year maturity with a quarterly coupon of 10-1/8%
all-in, with 0 percent cash payment in year 1, 2%
cash payment until the First Priority Senior Secured
Notes are paid in full, after which time the coupon will
be paid wholly in cash;
-- Second lien on Satmex's assets junior in priority,
operation and effect to the security interests of the
First Priority Senior Secured Notes;
-- After the full payment of the First Priority Senior
Secured Notes, cash sweep prepayment on any cash balances
over US$5 million;
-- In exchange for capitalization of the balance of their
claim of US$274 million in principal and unpaid interest,
the holders of the HYBs will receive approximately 80% of
the economic interest in the equity of Satmex including
approximately 47% of the voting capital; and
the shareholders agreement will include certain minority
governance rights.
Headquartered in Mexico, Satelites Mexicanos, S.A. de C.V.
-- http://www.satmex.com/-- is the leading provider of fixed
satellite services in Mexico and is expanding its services to
become a leading provider of fixed satellite services throughout
Latin America. Satmex provides transponder capacity to
customers for distribution of network and cable television
programming and on-site transmission of live news reports,
sporting events and other video feeds. Satmex also provides
satellite transmission capacity to telecommunications service
providers for public telephone networks in Mexico and elsewhere
and to corporate customers for their private business networks
with data, voice and video applications, as well as satellite
internet services. The Debtor is an affiliate of Loral Space &
Communications Ltd., which filed for chapter 11 protection on
July 15, 2003 (Bankr. S.D.N.Y. Case No. 03-41710). Some holders
of prepetition debt securities filed an involuntary Chapter 11
petition against the Debtor on May 25, 2005 (Bankr. S.D.N.Y.
Case No. 05-13862). The Debtor, through Sergio Autrey Maza, the
Foreign Representative, Chief Executive Officer and Chairman of
the Board of Directors of Satmex filed an ancillary proceeding
on Aug. 4, 2005 (S.D.N.Y. Case No. 05-16103). Matthew Scott
Barr, Esq., Luc A. Despins, Esq., Paul D. Malek, Esq., and
Jeffrey K. Milton, Esq., at Milbank, Tweed, Hadley & McCloy LLP
represent the Debtor. When the Debtor filed an ancillary
proceeding, it listed $900,000,000 in assets and $688,000,000 in
debts.
=====================
P U E R T O R I C O
=====================
MUSICLAND HOLDING: Can Hire Ordinary Course Professionals
---------------------------------------------------------
Musicland Holding Corp. and its debtor-affiliates customarily
retain the services of various attorneys, accountants, and other
professionals in the ordinary course of their business
operations, unrelated to their Chapter 11 cases, including
general corporate, accounting, auditing, tax, and litigation
matters.
The Debtors seek the U.S. Bankruptcy Court for the Southern
District of New York's authority to continue to employ the
ordinary course professionals postpetition without the necessity
of each OCP filing a formal application for employment and
compensation pursuant to Sections 327, 328, and 330 of the
Bankruptcy Code.
A list of the Debtors' ordinary course professionals is
available for free at http://bankrupt.com/misc/Musicland_OCP.pdf
Due to the number and geographic diversity of the OCPs they
regularly retained, the Debtors explain that it would be
unwieldy and burdensome to both the Debtors and the Court to
require each OCP to apply separately for approval of its
employment and compensation. Additionally, the Debtors do not
believe that Section 327 requires that approval.
The Debtors propose to employ the OCPs, effective as of the
Petition Date, on terms substantially similar to those in effect
prior to the Petition Date. The Debtors represent that:
-- they wish to employ the OCPs as necessary for the day-to-
day operations of their businesses;
-- expenses for the OCPs will be kept to a minimum; and
-- the OCPs will not perform substantial services relating to
bankruptcy matters without the Court's permission.
Certain of the OCPs may hold unsecured claims against the
Debtors. The Debtors do not believe, however, that any of the
OCPs have an interest materially adverse to them, their estates,
creditors or shareholders.
According to James H.M. Sprayregen, Esq., at Kirkland & Ellis
LLP, the Debtors will continue to require the services of the
OCPs to enable them to continue normal business activities that
are essential to their stabilization and reorganization efforts.
The Debtors also ask the Court to approve these procedures for
the retention and compensation of the OCPs:
(a) The Debtors will be authorized to pay 100% of fees and
disbursements to each of the OCPs retained by the Debtors
after submission of an Affidavit of Disinterestedness and
an invoice detailing the nature of the services rendered
after the Petition Date, provided that the Fees do not
exceed $50,000 per month or exceed an aggregate of
$500,000 per OCP. The Debtors reserve the right, without
prejudice, to seek approval from the Court of an increase
of the Aggregate Cap, in their sole discretion.
(b) Any payments made in excess of the fee cap to any OCP
will be subject to prior Court approval.
(c) Commencing on April 15, 2006, and on each July 15,
October 15, January 15, and April 15 of every year
thereafter in which these Chapter 11 cases are pending,
the Debtors will file with the Court and serve on the
trustees and counsels involved a statement with respect
to the immediately preceding quarter relating the
necessary OCP information.
(d) Each OCP will file with the Court and serve the Notice
Parties an affidavit of disinterestedness at least 14
days prior to submitting an initial invoice to the
Debtors.
(e) The Notice Parties will have 10 days after the receipt
of each OCP's Affidavit of Disinterestedness to object to
the retention of the OCP. The objecting party will
serve any objections upon the Notice Parties and the
OCP on or before the Objection Deadline.
If any objection cannot be resolved within 10 days of its
receipt, the parties will ask the Court to rule on the
issue.
If no objection is received from any of the Notice
Parties by the deadline with respect to any OCP, the
Debtors will be authorized as a final matter to retain
and pay OCPs to whom an objection was not filed.
(f) The Debtors reserve the right to supplement the list of
OCPs, in their sole discretion as necessary to add or
remove OCPs without the need for any further hearing and
to file individual retention applications for each. In
this event, the Debtors propose to file a notice with the
Court listing the additional OCPs that the Debtors intend
to employ and serve notice to the Notice Parties. The
Debtors propose that if no objections are filed to any
OCP within 10 days after service of the OCP Notice, then
the retention will be deemed approved by the Court
without the necessity of a hearing or further order.
* * *
"[T]he Debtors are authorized, but not required, to employ and
pay reasonable fees and expenses of the OCPs to assist and
advise the Debtors in the operation of their businesses and to
defend the Debtors in matters arising in the ordinary course of
the Debtors' business," Judge Bernstein rules.
Headquartered in New York, New York, Musicland Holding Corp., is
a specialty retailer of music, movies and entertainment-related
products. The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they
estimated more than $100 million in assets and debts.
(Musicland Bankruptcy News, Issue No. 4; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
MUSICLAND HOLDING: Walks Away from 51 Real Property Leases
----------------------------------------------------------
Musicland Holding Corp. and its debtor-affiliates have
identified 51 nonresidential real property leases that are no
longer integral to the Debtors' ongoing business operations.
James H.M. Sprayregen, Esq., at Kirkland & Ellis LLP, contends
that the leases present burdensome contingent liabilities, are
unprofitable and are unnecessary for the Debtors' restructuring
efforts.
Accordingly, the Debtors sought and obtained the U.S. Bankruptcy
Court for the Southern District of New York's authority to
reject each of the Leases effective as of the later of:
(i) the Petition Date; and
(ii) the date that the Debtors actually vacate or vacated the
premises and surrender possession of the premises by
delivering the keys to the landlord at the mall manager's
office.
A six-page list of the 51 Real Property Leases is available for
free at http://bankrupt.com/misc/Musicland_jan11leases.pdf
The Debtors will serve a copy of the Court order granting their
request and notice of the Order to parties-in-interest. The
Notice will provide that any objection to entry of the Order
must be filed with the Court no later than 10 days after the
service of the Order and served upon counsel to the Debtors and
the Notice Parties. If no objection is timely filed and served,
the request will be considered granted on a final basis.
If any objection to the Order is timely and properly filed and
served, the Debtors will attempt to reach a consensual
resolution of the objection. If the parties are unable to so
resolve any objection, the Debtors will schedule a hearing
before the Court. If the objection is overruled by the Court or
withdrawn the rejection of the affected lease will be deemed
effective on the Petition Date.
Any proof of claim for damages arising from rejection of the
Leases be filed on the later of the deadline set by the Court or
30 days after the effective date of rejection of that lease.
Lease Rejection Protocol
At the Debtors' behest, the Court also approved expedited
procedures for rejecting other nonresidential real property
leases as the Debtors may determine should be rejected:
(a) The Debtors will file written notice to reject a lease
and will serve the Rejection Notice together with the
Court's order via overnight delivery service upon:
* the landlords affected by the Rejection Notice;
* other interested parties to each lease sought to be
rejected, including subtenants to the affected lease;
* the Office of the United States Trustee;
* counsel for Wachovia, as agent for the Debtors'
Senior Lenders and as agent for the Debtors' proposed
DIP lenders;
* counsel for the Secured Trade Creditors; and
* those creditors listed on the Debtors' Consolidated
List of Creditors Holding 30 Largest Unsecured Claims.
(b) The Rejection Notice will give out information to the
best of the Debtors' knowledge:
* the street address, mall name or center name of the
real property that is the subject of the lease the
Debtors seek to reject;
* the approximate monthly rental obligation specified in
the affected lease;
* the approximate remaining term specified for the
affected lease;
* the name and address of the affected lessor, landlord,
management company, subtenant or other party in
interest, and;
* a description of the deadlines and procedures for
filing objections to the Rejection Notice;
(c) If a party-in-interest objects to the rejection of the
Debtors' lease, those objections must be filed with the
Court and received no later than 10 days after the date
of service of the Notice by:
* Kirkland & Ellis LLP, counsel to the Debtors;
* the Official Committee of Unsecured Creditors' counsel;
and
* the Office of the United States Trustee.
(d) If no objection is timely filed and served the lease will
be deemed rejected on a final basis effective on the date
the Rejection Notice was filed;
(e) If any objection to the Order is timely and properly
filed and served, the Debtors will attempt to reach a
consensual resolution of the objection. If the parties
are unable to so resolve any objection, the Debtors will
schedule a hearing before the Court. If the objection is
overruled by the Court or withdrawn the rejection of the
affected lease will be deemed effective on the Petition
Date; and
(f) If the Debtors have deposited funds with a lessor of a
rejected lease as a security deposit or other
arrangement, that lessor may not set off or use that
deposit without the Court's authority.
Mr. Sprayregen asserts that the Lease Rejection Procedure will
streamline the Debtors' ability to reject leases that provide no
benefit to the Debtors' estates. It will thereby minimize
unnecessary postpetition obligations while providing landlords
and other affected parties with adequate notice and an
opportunity to object within a definitive time period.
Objections
Certain lessors dispute the Court Order authorizing the Debtors
to reject unexpired, nonresidential real property leases as of
the Petition Date, and approving an expedited procedure for
rejection of leases:
(1) CBL and Glimcher Properties
On behalf of CBL & Associates Management, Inc., and Glimcher
Properties Limited Partnership, Ronald E. Gold, Esq., at Frost
Brown Todd LLC, in Cincinnati, Ohio, points out that the Debtors
should not be permitted to reject the Leases prior to vacating
the leased premises in the Shopping Centers because the Debtors
have not offered any basis for nunc pro tunc rejection of the
Leases.
In addition, although the Debtors do not indicate their
objective with respect to the payment of rent and other
obligations under the Leases, Mr. Gold tells the Court that any
rejection of the Leases must comply with the Debtors'
obligations under Section 365 of the Bankruptcy Code to timely
pay all rent and other obligations due under the Leases through
the later of the effective date of rejection and the date the
Debtors vacate the Leased Premises.
Mr. Gold reports that as of January 27, 2006, the Debtors have
not paid the Objecting Landlords stub rent for January 2006.
Furthermore, an order authorizing the rejection of the Leases
must require the Debtors to return the Leased Premises to the
Objecting Landlords in accordance with the terms and conditions
of the Leases, and must provide that any property remaining at
the Leased Premises after the Debtors vacate will be deemed
abandoned.
(2) Taubman Landlords
The Taubman Landlords tell the Court that the Debtors should be
required to provide written notice to each landlord whose lease
is designated for rejection. Further, the Debtors should be
required to bring all postpetition rent as a pre-condition for
the rejection of the Leases.
The Taubman Landlords consist of independent entities which own
various regional retail shopping centers.
(3) Ramco
On behalf of Ramco-Gershenson Properties, L.P., Matthew E.
Thompson, Esq., at Kupelian Ormond & Magy, P.C., in Southfield,
Michigan, informs the Court that the Debtors' request fails the
basic elements of Section 365(a) because the lease for 50,000
square feet of retail premises at Tel-Twelve Mall, in
Southfield, Michigan, is neither "unexpired" nor a "lease of the
debtor."
Mr. Thomson clarifies that the Lease has been terminated on
September 30, 2005 -- prior to the Petition Date -- in
accordance with Michigan law, pursuant to a Lease Termination
Agreement dated September 21, 2005, between Ramco and Media
Play, Inc.
Headquartered in New York, New York, Musicland Holding Corp., is
a Specialty retailer of music, movies and entertainment-related
products. The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts. When the
Debtors filed for protection from their creditors, they
estimated more than $100 million in assets and debts.
(Musicland Bankruptcy News, Issue No. 4; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
=================================
T R I N I D A D & T O B A G O
=================================
VIPER NETWORKS: Initiates Sales Expansion into Trinidad & Tobago
----------------------------------------------------------------
Viper Networks, Inc., announced that it has reached an agreement
with BEST-COM to expand its sales channels into Trinidad &
Tobago with additional emphasis in the Northern regions of Latin
America.
Chief Executive Officer Farid Shouekani commented, "This
represents another step in the global expansion of Viper
Networks by targeting population centers which have a high cost
to communicate with the rest of the world. Our sales team has
identified and begun the formalization of channel agreements to
begin sales immediately in the region."
Mr. Shouekani continued, "This expansion of our sales channels
accelerates our growth plan in the region and brings incremental
revenue and new customers in a high-traffic market which has
traditionally been ignored by Voice over the Internet
companies."
Mr. Shouekani concluded, "I am pleased to see the continued high
demand for Viper Networks products and services in multiple
markets around the world. We continue to see the expansion of
our sales channels as the cornerstone for profitability and
growth."
About Viper Networks, Inc.
Viper Networks, Inc. -- http://www.vipernetworks.com-- provides
Voice-over-Internet VoIP products and services through
distributors and resellers around the world. Its network of
VoIP gateways serves more than 350 countries and regions, and it
is unique in offering both network services and equipment to its
customers. Unlike most competing VoIP providers, Viper Networks
offers its service on a pre-pay basis. It charges only for
minutes used and does not requiring any monthly fees. Its
Internet-based users can get dial-up or broadband service with
equal quality. Viper has been pioneering VoIP service and
technology for more than five years.
Going Concern
Viper Networks' independent auditors, Armando C. Ibarra, CPA,
PC, have expressed substantial doubt about the Company's ability
to continue as a going concern because of the Company's
recurring net losses.
The Company's balance sheet showed $1,327,115 in total assets at
Dec. 31, 2004, and liabilities of $1,308,326. The Company's
liquidity and access to capital is very limited. At Dec. 31,
2004, the Company had a working capital deficit of $1,003,078.
=================
V E N E Z U E L A
=================
PDVSA: Makes First Shipment to India
------------------------------------
Venezuela's state oil firm Petroleos de Venezuela aka PDVSA has
made its first oil shipment to India as part of the bilateral
accords in energy cooperation entered by Venezuela and India in
2005, Business News Americas reports.
India's state oil company ONGC and PDVSA entered an agreement
last year for the certification of reserves in a block on the
Orinoco oil belt. PDVSA sent E&P experts to India to provide
drilling assistance in oil wells. India, in return, would give
its offshore E&P expertise.
The shipment, which is also part of Venezuela's export market
diversification policy in PDVSA's 2006-2012 business plan,
consisted of 2 million barrels (Mb) of medium-heavy crude.
Business News relates that the crude is being carried by Venus
Glory, a crude cargo vessel. Venus Glory holds about 1.1Mb of
16-degree API Merey crude and 900,000b of 30-degree API Mesa
crude. The vessel left PDVSA's Jose storage and shipment
facility in eastern Venezuela bound for the port of Sikka in
India.
PDVSA 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.
* * *
On Jan. 23, 2005, Fitch Ratings upgraded the local and
foreign currency ratings of Petroleos de Venezuela S.A. aka
PDVSA to 'BB-' from 'B+'. The rating of PDVSA's export
receivable future flow securitization, PDVSA Finance Ltd, was
also upgraded to 'BB+' from 'BB'. In addition, Fitch has
assigned PDVSA a 'AAA(ven)' national scale rating. The Rating
Outlook is Stable. Both rating actions follow Fitch's November
2005 upgrade of Venezuela's sovereign rating.
PDVSA: Sends Tanker in Place of Kim Jacob to Hovensa Refinery
-------------------------------------------------------------
State-owned Petroleos de Venezuela aka PDVSA is sending tanker
Moscow Star to its Hovensa refinery, Business News Americas
reports. The tanker carries about 700,000 barrels of crude.
This is to maintain supplies after the tanker Kim Jacob was
stranded over the weekend near Anzoategui.
Kim Jacob, a 159-tonne deadweight vessel carrying one million
barrels of crude, was bound for the Hovensa refinery in Saint
Croix, US Virgin Islands, when it ran aground.
An inspection by PDVSA engineers, who worked to refloat the Kim
Jacob, revealed a 3.15m x 15cm cut on Kim Jacob's portside and a
30cm-diameter hole in another part of the ship.
PDVSA officials and INEA, a national waterways institute, were
finishing their inspections to come up with a refloating plan
for the hull of the ship. Refloating was set to begin on Jan.
31.
PDVSA stated that two smaller vessels are now attempting to
relieve the Kim Jacob of at least some of the crude in its cargo
so that the tanker may be re-floated.
According to PDVSA, the ship's double hull -- standard in modern
oil tankers -- prevented a major oil spill.
The Moscow Star is now being sent out to maintain supply to the
refinery, PDVSA informed.
The Hovensa facility was jointly owned by PDVSA and US oil
company Amerada Hess. It is one of the refineries on PDVSA's
international circuit. The refinery processes some 500,000
barrels a day of crude, producing premium gasoline bound for US
gas stations among other liquid fuels.
***********
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. John D. Resnick, Marjorie C. Sabijon and Sheryl
Joy P. Olano, Editors.
Copyright 2006. All rights reserved. ISSN 1529-2746.
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