/raid1/www/Hosts/bankrupt/TCRLA_Public/060601.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, June 1, 2006, Vol. 7, Issue 108
Headlines
A R G E N T I N A
AGUAS ARGENTINAS: Posts ARS483 Million of Losses in 2005
ALIMENTARIA DEL SUR: Filing of Proofs of Claim Ends on July 14
CEENSES CONSTRUCTORA: Proofs of Claim Must be Filed by July 17
CEPA S.A.: Trustee Verifies Proofs of Claim Until June 27
CONSULTORA DE SALUD: Claims Verification Ends on July 3
DAGLO S.A.: Creditors' Claims Verification Ends on July 21
DESHIDRATADOS SALTA: Proofs of Claim Validation Ends on June 22
LATINSUR COMPANY: Individual Reports Due in Court on June 29
METROGAS: Completes Out-of-Court Restructuring of Debts
M.P. UNISEX: Trustee Stops Accepting Claims After June 5
MULTICANAL: US Court Gives Final Approval on Sec. 304 Proceeding
PAMETAL PELUSO: Trustee Stops Validating Claims on July 13
PETRUZIO HERMANOS: Proofs of Claim Must be Submitted by July 20
B E R M U D A
BAY POINT: Moody's Assigns (P)Ba2 Rating on Sr. Secured Loan
GLOBAL CROSSING: Ends Common Stock & Convertible Notes Offerings
QUANTA CAPITAL: Bermuda, US & Europe Units Put in Run-Off
B O L I V I A
REPSOL YPF: Will Continue Operations in Bolivia Despite Hurdles
B R A Z I L
BANCO BRADESCO: Issues BRL300 Title with NGO SOS Mata Atlantica
BANCO NACIONAL: Loans BRL18.8M to Modernize Campinas City Hall
BANCO NACIONAL: Grants BRL94.7 Mil. Loan to Estaleiro Navship
BUCKEYE TECHNOLOGIES: Posts US$795,000 Net Loss in First Quarter
GERDAU SA: Will Participate in Siderperu's 56.04% Stake Auction
PARANA BANCO: S&P Rates US$5 Mil. Senior Unsecured Notes at B
SABESP: Workers Threaten to Strike If Salary Hike Not Approved
VARIG S.A.: Mitsui Says U.S. Court Protection Is Inappropriate
C A Y M A N I S L A N D S
ANTHRACITE BALANCED: Proofs of Claim Filing Ends by June 16
ARKLET LIMITED: Creditors Must File Proofs of Claim by June 10
CLOVA LIMITED: Filing of Proofs of Claim Ends on June 10
FINGLAS LIMITED: Proofs of Claim Must be Filed by June 10
PIERCE STREET: Final Shareholders Meeting Is Set for June 15
PROSEN LIMITED: Creditors Have Until June 10 to Present Claims
RONDAU LIMITED: Sets June 19 Deadline for Claims Filing
STANLEY FUND: Creditors Must Present Proofs of Claim by June 10
UAM BOND: Schedules Last Shareholders Meeting on June 30
YMO CORPORATION: Liquidator Stops Accepting Claims After June 16
C O S T A R I C A
* COSTA RICA: Mulls Concessions on Railway
C U B A
* CUBA: Seized Contraband Cigars Reaches 25,000 Boxes in 2005
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Will Revise Subsidy on Liquefied Petroleum
E C U A D O R
* ECUADOR: Inks Contract on Oil Refinement with Venezuela
G U Y A N A
DIGICEL LIMITED: Mulls Acquiring Cel*Star or GT&T in Guyana
H O N D U R A S
* HONDURAS: Small Businesses Threatened by Free Trade Agreement
J A M A I C A
MIRANT CORP: Proposes to Acquire NRG Energy for US$8 Billion
MIRANT CORP: Acquisition Proposal Undervalues NRG Energy
M E X I C O
DESC SA: Fitch Affirms B+ Local & Foreign Currency Ratings
EMPRESAS ICA: ICA Flour Inks Platform Building Pact with PEMEX
P A R A G U A Y
* PARAGUAY: Bandes Granting US$10-Mil. Credit Line to Country
P E R U
REPSOL YPF: Delays Construction of Natural Gas Facility in Peru
SIDERPERU: Gerdau Will Participate in Auction
P U E R T O R I C O
ADELPHIA COMMS: Dispute Ensues Over Bank Lenders Distribution
ADELPHIA COM: TCR Sports Wants FCC to Condition Sale to Comcast
DORAL FINANCIAL: Appoints Glen Wakeman as President & CEO
GLOBAL HOME: Court Okays Conway as Restructuring Consultants
KMART CORP: Court Says Heaton Claim Motion Is Withdrawn as Moot
U R U G U A Y
ADMINISTRACION NACIONAL: Moody's Puts Ba2 Global Currency Rating
BANKBOSTON (URUGUAY): Itau to Treat Buy as One with Chile Unit
HSBC BANK (URUGUAY): Fitch Revises Ratings Outlook to Positive
* URUGUAY: Electricity Crisis Results to Usage Restrictions
V E N E Z U E L A
* VENEZUELA: Bandes Granting US$10M Loan to Paraguay Under ALBA
* VENEZUELA: Inks Contract on Oil Refinement with Ecuador
* VENEZUELA: May Face Heavy Losses After Leaving CAN & G-3
- - - - -
=================
A R G E N T I N A
=================
AGUAS ARGENTINAS: Posts ARS483 Million of Losses in 2005
--------------------------------------------------------
Aguas Argentinas disclosed that it lost ARS483 million last
year, Business News Americas reports.
According to BNamericas, revenue from potable water and sewerage
services reached ARS620 million. Sale costs, however, amounted
to ARS372 million, putting the former Buenos Aires
concessionaire's ARS783 million in the red since its contract
started in 1993.
BNamericas relates that Aguas Argentinas said the poor results
were due to the country's economic emergency law.
The economic emergency law allows the executive power to
renegotiate accords for concessioned public services, BNamericas
states.
When the law was implemented in 2002, Aguas Argentinas was
forced to freeze its rates despite the devaluation of the peso
to a third of its former value when it was unpegged from the US
dollar, according to BNamericas.
BNamericas says that the concessionaire's assets arrived at
ARS2.7 billion. Liabilities, on the other hand, reached ARS2.91
billion.
BNamericas states that Aguas Argentinas was also burdened by:
-- 748 claims against the company,
-- debts of ARS58.1 million to suppliers, and
-- US$1.7 billion claim of Suez, the French principal
shareholder of Aguas Argentinas for compensation with the
International Center for Settlement of Investment
Disputes.
BNamericas recalls that Suez and Spanish partner Aguas de
Barcelona aka Agbar had been negotiating with the Argentine
government for amendments in the contract terms due to the
effects of the peso devaluation in 2002.
As reported in the Troubled Company Reporter on May 23, 2006,
Aguas Argentinas was officially replaced by Agua y Saneamiento
Argentina SA aka AySA has officially as the water and sewerage
provider of Buenos Aires. The concessionaire had stopped being
Buenos Aires' water and sewerage utility when its contract with
Buenos Aires was revoked on March 21, 2006, due to allegations
on non-compliance with investment goals and water safety
regulations.
Carlos Ben, the president of AySA, told BNamericas that the
company will need ARS9 billion to cover all of the areas
formerly served by Aguas Argentinas. According to the local
press, AySA will ask the amount from the government.
As reported in the Trouble Company Reporter on May 12, 2006,
Aguas Argentinas sought for reorganization before Buenos Aires'
Court No. 17 as a result of the revocation of its concession.
ALIMENTARIA DEL SUR: Filing of Proofs of Claim Ends on July 14
--------------------------------------------------------------
Alfredo Donatti, trustee appointed by the Buenos Aires court for
the bankruptcy case of Alimentaria del Sur Argentino Adesa S.A.,
fka Bodini S.A., will no longer entertain claims that are
submitted after July 14, 2006, Infobae reports. Creditors whose
claims are not validated will be disqualified from receiving any
payment that the company will make.
Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records.
The dates of submission of these reports are yet to be
disclosed.
The trustee can be reached at:
Alfredo Donatti
Montevideo 31
Buenos Aires, Argentina
CEENSES CONSTRUCTORA: Proofs of Claim Must be Filed by July 17
--------------------------------------------------------------
Creditors of bankrupt company Ceenses Constructora S.A. are
required to present proofs of their claims to Ricardo Randrup,
the court-appointed trustee, by July 17, 2006, La Nacion
reports.
Creditors who fail to submit the required documents by July 17
will not qualify for any post-liquidation distributions.
Buenos Aires' Court No. 12 declared the company bankrupt at the
behest of Juan Roldan, whom the company owes US$8,322.16.
Clerk No. 24 assists the court on the case.
The debtor can be reached at:
Ceenses Constructora S.A.
Tucuman 1516
Buenos Aires, Argentina
The trustee can be reached at:
Ricardo Randrup
Cordoba 1351
Buenos Aires, Argentina
CEPA S.A.: Trustee Verifies Proofs of Claim Until June 27
---------------------------------------------------------
The verification of creditors' claims for the Cepa S.A.
insolvency case will end on June 27, 2006, states Infobae.
Lucas Bernardo Oddo, the court-appointed trustee who will
examine the claims, will submit the validation results as
individual reports on Aug. 23, 2006. He will also present a
general report in court on Oct. 4, 2006.
On April 10, 2007, the company's creditors will vote on a
settlement proposal prepared by the company.
The debtor can be reached at:
Cepa S.A.
Calle 27 Numero 627, La Plata
Buenos Aires, Argentina
The trustee can be reached at:
Lucas Bernardo Oddo
Plaza Paso 92, La Plata
Buenos Aires, Argentina
CONSULTORA DE SALUD: Claims Verification Ends on July 3
-------------------------------------------------------
The court-appointed trustee, Carlos Daniel Ayuso, for the
bankruptcy proceeding of Consultadora de Salud S.A., will verify
creditors' claims until July 3, 2006.
The reorganization of Consultora de Salud S.A. has progressed
into bankruptcy after Judge Chomer of Buenos Aires Court No. 10
ruled that the company is bankrupt.
The court also ordered the trustee to prepare individual reports
out of the verified claims and have them ready by Aug. 28, 2006.
A general report on the bankruptcy process is expected on
Oct. 9, 2006.
As reported in the Troubled Company Reporter on Mar. 23, 2004,
Judge Chomer approved the company's petition to reorganize after
it has failed to pay its debts on Aug. 31, 2003. The individual
reports were submitted on June 24, 2004, and a general report
was presented in court on Aug. 30, 2004. The informative
assembly, wherein the creditors cast their votes on a settlement
plan presented by the company, was held on March 1, 2005.
Dr. D'Alessandri, clerk No. 19, assists the court on the case.
The debtor can be reached at:
Consultora de Salud S.A.
5th Floor Ave, Rivadavia 2358
Buenos Aires, Argentina
The trustee can be reached at:
Carlos Daniel Ayuso
Tucuman 1455
Buenos Aires, Argentina
DAGLO S.A.: Creditors' Claims Verification Ends on July 21
----------------------------------------------------------
Luis Plizzo, the court-appointed trustee for the bankruptcy case
of Daglo S.A., has started verifying creditors' claims. The
verification phase will end on July 21, 2006.
La Nacion relates that Buenos Aires' Court No. 9 declared the
company bankrupt at the behest of Banco Rio which the company is
indebted for an unspecified amount.
Clerk No. 17 assists the court in this case.
The debtor can be reached at:
Daglo S.A.
Vidal 3582
Buenos Aires, Argentina
The trustee can be reached at:
Luis Plizzo
Avenida Pte. Roque Saenz Pena 651
Buenos Aires, Argentina
DESHIDRATADOS SALTA: Proofs of Claim Validation Ends on June 22
---------------------------------------------------------------
Court-appointed trustee Sandra Beatriz Dagum will stop
validating proofs of claim against insolvent company
Deshidratados Salta S.A. after June 22, 2006, Infobae reports.
Ms. Dagum will present the validated claims in court as
individual reports on Aug. 23, 2006. The trustee will also
submit a general report on the case on Oct. 4, 2006.
A court in Salta handles the company's reorganization
proceeding.
The debtor can be reached at:
Deshidratados Salta S.A.
General Guemes 86, Ciudad de Salta
Salta, Argentina
The trustee can be reached at:
Sandra Beatriz Dagum
Santa Fe 88
Salta, Argentina
LATINSUR COMPANY: Individual Reports Due in Court on June 29
------------------------------------------------------------
Court-appointed trustee Jose Luis Carriquiry will present on
June 29 in a Buenos Aires court individual reports on the
validated claims against bankrupt firm Latinsur Company S.A.
The trustee stopped verifying the claims on May 24, 2006.
Infobae relates that verified claims will be used as basis in
creating individual reports, which will be due in court on
June 29, 2006. A general report is expected in court on
July 31, 2006.
The trustee can be reached at:
Jose Luis Carriquiry
Loyola 660
Buenos Aires, Argentina
METROGAS: Completes Out-of-Court Restructuring of Debts
-------------------------------------------------------
MetroGAS S.A. closed on May 17, 2006, on an out-of-court basis
the restructuring of:
-- US$93.8 million principal amount (approximately 94%) of
its 9-7/8% Series A Notes due 2003,
-- EUR95.14 million principal amount (approximately 87%) of
its 7.375% Series B Notes due 2002,
-- US$130 million principal amount (100%) of its Floating
Rate Series C Notes due 2004 and
-- US$50 million (100%) and ARS44.06 million (100%) principal
amount of its other unsecured financial indebtedness
pursuant to its solicitations of powers of attorney authorizing,
among other things, the out-of-court sale on behalf of such
holders of the Existing Debt for cash and/or the exchange on
behalf of such holders of the Existing Debt for new securities.
The Company also disclosed that, as part of the Restructuring
and as contemplated by the Solicitations, it had issued in
exchange for:
-- Existing Debt Series 1 Notes aggregating US$236.3 million
in principal amount,
-- US dollar-denominated Series 2 Notes aggregating US$6.25
million in principal amount and
-- euro-denominated Series 2 Notes aggregating EUR26.07
million in principal amounts
and had made payments aggregating US$105.61 million to
repurchase Existing Debt tendered into or reallocated to the
cash option under the Solicitations and US$19.09 million and
EUR469,268.10 in respect of interest that would have accrued on
the Series 1 Notes and the Series 2 Notes through December 30,
2005 had they been issued on January 1, 2005.
The Company further Disclosed that, after giving effect to the
issuance of the Series 1 Notes and Series 2 Notes and the
retirement of the Existing Debt that had been exchanged for
Series 1 Notes and Series 2 Notes or repurchased by the Company,
the Company's unsecured financial indebtedness aggregated the
equivalent of US$299.7 million (including the equivalent of
US$23.7 million principal amount of the Existing Debt the
holders of which have not participated in the Restructuring)
based on exchange rates on May 11, 2006.
The Settlement Agent for the Solicitation outside Argentina is:
JPMorgan Chase Bank, N.A.
Tel: +1 (212) 623-5136
Fax: +1 (212) 623-6216
The Settlement Agent for the Solicitation inside Argentina is:
JPMorgan Chase Bank, N.A.
Sucursal Buenos Aires
Tel: (54 11)-4348-3475
Fax: (54 11)-4325-8046.
Headquartered in Buenos Aires, Argentina, MetroGAS S.A. --
http://www.metrogas.com.ar/-- distributes gas to Buenos Aires
and southern and eastern greater metropolitan Buenos Aires. The
Company has a 35-year concession that began in 1992 to provide
natural gas in this area. The concession is renewable for an
additional 10 years. MetroGAS supplies some 2 million customers
in Buenos Aires through 15,840 km of pipelines, representing
about 26% of all gas retailed in Argentina.
M.P. UNISEX: Trustee Stops Accepting Claims After June 5
--------------------------------------------------------
Maria Guadalupe Arias, the trustee appointed by a Buenos Aires
court for the bankruptcy case of M.P. Unisex S.R.L., will no
longer entertain claims that are submitted after June 5, 2006,
Infobae reports. Creditors whose claims are not validated will
be disqualified from receiving any payment that the company will
make.
Individual reports on the validated claims will be presented in
court on Aug. 4, 2006. The submission of the general report on
the case will follow on Sept. 21, 2006.
The debtor can be reached at:
M.P. Unisex S.R.L.
Avenida Virrey Toledo 702,
Nuevo Noa Shopping Center, Ciudad de Salta
Salta, Argentina
The trustee can be reached at:
Maria Guadalupe Arias
Pueyrredon 913, Ciudad de Salta
Salta, Argentina
MULTICANAL: US Court Gives Final Approval on Sec. 304 Proceeding
----------------------------------------------------------------
The Hon. Allan Gropper of the U.S. Bankruptcy Court for the
Southern District of New York put his final stamp of approval to
the Section 304 petition filed by Martin G. Rios in behalf of
Multicanal SA.
The Court's final order means a permanent injunction against
Multicanal's creditors in the United States. This means, all
creditors of the company in the US are enjoined from taking any
action against Multicanal.
With the Court's approval in hand, Multicanal can now proceed
with the implementation of its restructuring plan under the
Acuerdo Preventivo Extrajudicial Procedure commenced in
Argentina.
The National Court of First Instance on Commercial Matters No. 4
confirmed Multicanal's restructuring plan on Apr. 14, 2004. The
plan got the US Court's recognition, pursuant to Section 304 of
the US Bankruptcy Code, on Sept. 28, 2005.
Judge Gropper issued the final order allowing the Sec. 304
filing after Multicanal informed the Court that the fairness
issue under Section 3(a)(10) of the US Securities Act has been
cured. According to Multicanal's regulatory filing, a purchaser
of the debt previously held by one of its creditors -- Huff
Alternative Income Fund L.P. -- had undertaken to correct the
discrimination against U.S. retail holders in a manner
compatible with U.S. securities law.
As previously reported, Judge Gropper noted that the APE plan
discriminated against US creditors by not allowing them a choice
other than the cash option. Judge Groppen wanted that flaw
remedied before issuing a final order.
A copy of Judge Gropper's decision is available free of charge
at http://researcharchives.com/t/s?a42
Multicanal is represented by:
Andres de la Cruz, Esq.
Lindsee P. Granfield, Esq.
Cleary Gottlieb Steen & Hamilton LLP
One Liberty Plaza
New York, NY 10006-1470
Tel: +1 212 225 2000
Fax: +1 212 225 3999
-- and --
Jose Maria Saenz Valiente
Maria Lucila Romero
Ivan Lorenzo
Saenz Valiente Asociados
Parana 754 - 8 Piso
(C1017AAP) Ciudad Autonoma de Buenos Aires
Argentina
Tel: (54 11) 4816-6996
Email: laura@ssvyasoc.com.ar
Multicanal S.A. -- http://www.multicanal.com.ar/-- is an
Argentinean multiple cable systems operator with its principal
operations in Argentina and smaller operations in Uruguay and
Paraguay. Grupo Clarin SA owns Multicanal.
* * *
The Argentine arm of Standard & Poor's Ratings Services assigned
raD ratings on Multicanal SA's debts:
-- Obligaciones Negociables Serie C for US$150,000,000,
included under the program of ON for US$1050 million,
-- Obligaciones Negociables simples, with due in 10 years for
US$125,000,000,
-- Serie J of ON for US$144,000,000, under the program of ON
for US$1050 million, and
-- Obligaciones Negociables simples, with due in 5 years for
US$125,000,000.
PAMETAL PELUSO: Trustee Stops Validating Claims on July 13
----------------------------------------------------------
Lidia Roxana Martin, court-appointed trustee for the bankruptcy
case of Pametal Peluso y Compania S.R.L., has started verifying
creditors' proofs of claim. Verification phase will end on
July 13, 2006.
The verified claims will be used as basis in creating individual
reports that will be due in court on Sept. 7, 2006. A general
report that contains an audit of the company's accounting and
banking records is expected on Oct. 19, 2006.
La Nacion relates that Buenos Aires' Court No. 12 declared the
company bankrupt at the request of Ossimra, Obra Social de los
Supervisores de la Industria Metalmecanica de la Republica
Argentina, which the company owes US$122,884.95.
Clerk No. 23 assists the court in this case.
The debtor can be reached at:
Pametal Peluso y Compania S.R.L.
Francisco Bilbao 1715
Buenos Aires, Argentina
The trustee can be reached at:
Lidia Roxana Martin
Avenida Cordoba 1352
Buenos Aires, Argentina
PETRUZIO HERMANOS: Proofs of Claim Must be Submitted by July 20
---------------------------------------------------------------
Creditors of bankrupt company Petruzio Hermanos S.A. are
required to present proofs of their claims to Maria Festugato,
the court-appointed trustee, by July 20, 2006, La Nacion
reports. Creditors who fail to submit the required documents by
July 20 will not qualify for any post-liquidation distributions.
Buenos Aires' Court No. 11 declared the company bankrupt at the
request of Obra Social de Empleados de Comercio, which the
company owes US$7,153.
Clerk No. 22 assists the court on the case.
The debtor can be reached at:
Petruzio Hermanos S.A.
Avenida Eva Peron 7246
Buenos Aires, Argentina
The trustee can be reached at:
Maria Festugato
Lavalle 1607
Buenos Aires, Argentina
=============
B E R M U D A
=============
BAY POINT: Moody's Assigns (P)Ba2 Rating on Sr. Secured Loan
------------------------------------------------------------
Moody's Investors Service assigned a provisional (P)Ba2 rating
to the senior secured term loan (up to US$125 million) of
Bermuda-domiciled Bay Point Holdings Ltd. and a provisional
(P)Baa3 insurance financial strength rating to Bay Point Re
Ltd., its wholly-owned Bermuda-based operating subsidiary. The
outlook for the provisional ratings is stable. Moody's noted
that it expects to confirm these ratings upon review of final
executed documentation for both Bay Point Holdings and Bay Point
Re, provided the documentation is consistent with the terms and
conditions specified to date that underlie the provisional
ratings.
The privately placed senior secured term loan of Bay Point
Holdings, which is being syndicated to financial institutions
and other institutional lenders under Section 144A guidelines,
is scheduled to incept on May 31, 2006 and to mature on
Dec. 31, 2010. The loan is secured by the capital stock of Bay
Point Re, and is non-amortizing, but allows for voluntary
prepayments, requires mandatory prepayments under certain
circumstances, and is callable at a premium.
According to Moody's, Bay Point Holdings is a privately held
holding company for Bay Point Re, a newly formed Class 3
licensed Bermuda reinsurer that has entered into a quota-share
reinsurance treaty with Bermuda-based Harbor Point Re Limited.
Bay Point Re will assume specified percentages (up to 50%) of
certain lines of reinsurance -- including property, marine,
energy and certain other lines of business underwritten by
Harbor Point Re Limited for the 2006 and 2007 underwriting
years, commencing January 1, 2006, through and including
Dec. 31, 2007.
Initial capitalization for Bay Point Re is expected to be up to
US$250 million, comprised of
-- up to US$125 million in a senior secured term loan (but
equal to 50% of total capitalization),
-- cumulative preferred shares (up to US$75 million, or 30%
of total capitalization) and
-- common equity (up to US$50 million, or 20% of total
capitalization).
The company's capital and risk assumption capacity -- or
"minimum capital cushion" - is gauged to support a maximum risk
load over the life of the transaction as calibrated by the
greater of two tests, one involving the ratio of maximum
projected in-force premiums, and the other involving a
combination of modeled return-periods for the in-force
portfolio. Bay Point Re will post its total paid-in capital as
cash and securities into a trust to collateralize its
reinsurance obligations to Harbor Point Re Limited. Investment
holdings are expected to be entirely investment-grade, with an
average quality toward the high end of rating spectrum, and a
duration that is reasonably matched to Bay Point's expected
liability duration. Moody's analysis focused on both structural
and contractual features of the Bay Point vehicle, as well as
stochastic analysis of the company's existing and expected
underwriting and investment portfolios, and its expense and
capital structures, which were components of analyzing both the
probability of loss, and expected severity of loss for both Bay
Point Holdings' debt-holders, and Bay Point Re's policyholder.
Moody's stated that Bay Point Re's ratings primarily reflect the
company's capitalization level and balance sheet that is
unencumbered by legacy exposures, structural characteristics
that are designed to offer protection to debt investors, and its
conservative investment policy. The rating agency stated that
these fundamental strengths are significantly tempered by Bay
Point Re's relatively high debt leverage profile (50% for the
term loan, 80% including the cumulative preferred shares, which
are subordinated to both Bay Point Re's policyholder and Bay
Point Holdings' senior creditor liabilities), the inherent
underwriting volatility of its catastrophe-exposed reinsurance
portfolio, some uncertainty about the overall risk composition
of its portfolio over time -- given its multi-line and global
span, and by parameter risk in the assumptions underlying the
risk modeling that forms the basis of the company's
capitalization.
Moody's further noted that its expectations at the current
rating level are that Bay Point Holdings will continue to
maintain a financial leverage profile at no more than 50% debt
to total capital and that shareholders' equity will not decline
by more than 15% over a 12 month period. That said, the rating
agency noted that the ratings will likely reflect updated
analysis of the cumulative performance of the company, its
future overall risk-adjusted capitalization level, and updated
prospective probabilistic analysis of its reinsurance portfolio
at future points in time.
These provisional ratings are assigned:
Bay Point Holdings Ltd.
-- senior secured term loan due 2010 at (P)Ba2; and
Bay Point Re Ltd.
-- insurance financial strength at (P)Baa3.
Headquartered in Bermuda, Bay Point Holdings Ltd., is the
holding company for Bay Point Re Ltd., which is a licensed
Class 3 Bermuda insurer that has entered into a quota-share
reinsurance treaty with Bermuda-based Harbor Point Re Limited
pursuant to which Bay Point Re will assume specified percentages
of certain lines of reinsurance business underwritten by Harbor
Point on behalf of ceding companies for the 2006 and 2007
underwriting years.
GLOBAL CROSSING: Ends Common Stock & Convertible Notes Offerings
----------------------------------------------------------------
Global Crossing closed its concurrent public offerings of common
stock and senior convertible notes for combined gross proceeds
of US$384 million, including the exercise of the underwriters'
option to purchase additional notes. This amount could increase
to US$420 million if the underwriters fully exercise their
option to purchase additional common stock. The company
completed its common stock offering of 12 million shares priced
at US$20.00 per share and its US$144 million aggregate principal
amount of convertible senior notes due in 2011. The US$144
million in convertible senior notes includes US$19 million of
notes issued pursuant to the underwriters' overallotment option,
which was exercised in full. The notes were priced at par, will
accrue interest at 5.0 percent per annum, are payable semi-
annually in arrears and have a conversion rate of 43.5161 shares
of common stock per US$1,000 principal amount of notes, subject
to adjustment.
The underwriters have been granted an option to purchase up to
an additional 1.8 million shares of the common stock at the
public offering price.
Proceeds from the offerings will be used for general corporate
purposes, which may include the acquisition of assets or
businesses that are complementary to Global Crossing's existing
business, as well as to purchase a portfolio of U.S. treasury
securities to fund the first six interest payments on the notes
offered and to pay fees and expenses related to the offerings.
Goldman, Sachs & Co. was sole bookrunner and Morgan Stanley &
Co. was joint lead manager for the offerings. Copies of the
final prospectus relating to the offering may be obtained from:
Goldman, Sachs & Co.,
Attention: Prospectus Depatment
85 Broad St., New York
New York 10004
Fax: +1 212 902 9316
E-mail: prospectus-ny@ny.email.gs.com
-- or --
Morgan Stanley & Co. Incorporated
Attention: Prospectus Department
1585 Broadway, New York
New York 10036
Fax: +1 866 718 1649
E-mail: Prospectus@Morganstanley.com
A registration statement relating to these securities was filed
and declared effective by the US Securities and Exchange
Commission.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunication solutions over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, Chile, Mexico, Panama, Peru and Venezuela.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. The company filed for chapter 11 protection on
Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the
Debtors filed for protection from their creditors, they listed
US$25,511,000,000 in total assets and US$15,467,000,000 in total
debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003.
As of Dec. 31, 2005, Global Crossing's balance sheet reflected a
US$173 million equity deficit compared to a US$51 million of
positive equity at Dec. 31, 2004.
QUANTA CAPITAL: Bermuda, US & Europe Units Put in Run-Off
---------------------------------------------------------
Quanta Capital Holdings disclosed in a regulatory filing its
intention to put into run-off its units in Bermuda, the United
States and Europe.
An insurer that closes to new business is said to be in run-off.
The net effect is a slow winding down of operations that allows
claims to be met on policies already sold.
The company's decision came as a result of A.M. Best's Mar. 2
downgrade to B++ financial strength rating -- which is too low
to attract business from insurance buyers.
Quanta Capital hired financial advisors Friedman, Billings and
Ramsey and Co. and JP Morgan Chase Co. to help the company
explore strategic alternatives.
The company also disclosed its plan to cease selling:
-- casualty reinsurance,
-- marine and aviation reinsurance, and
-- trade credit and political risk.
The company's Lloyd's of London operation, Syndicate 4000, and
an environmental consulting business, ESC, are to continue in
business.
Quanta Capital Holdings Ltd., a Bermuda holding company,
provides specialty insurance, reinsurance, risk assessment and
risk consulting products and services through its subsidiaries.
Through operations in Bermuda, the United States, Ireland and
the United Kingdom, Quanta focuses on writing coverage for
specialized classes of risk through a team of experienced,
technically qualified underwriters. The company offers
specialty insurance and reinsurance products that often require
extensive technical underwriting skills, risk assessment
resources and engineering expertise. Quanta is listed on the
NASDAQ stock market and trades under the symbol QNTA.
=============
B O L I V I A
=============
REPSOL YPF: Will Continue Operations in Bolivia Despite Hurdles
---------------------------------------------------------------
Repsol YPF will continue its producing natural gas and
developing projects in Bolivia despite the oil nationalization
law imposed by the government, Nemesio Fernandez-Cuesta, the
firm's exploration and production director, told reporters in a
Third Annual Energy and Petroleum Summit held in Quito.
As reported in the Troubled Company Reporter, Bolivian President
Evo Morales declared on May 1, the renationalization of his
country's hydrocarbons industry, allowing the state to reclaim
control of energy firms privatized in the 1990s. President
Morales ordered the military to seize gas fields and asked
foreign energy companies to send their locally produced supplies
to the state or exit Bolivia within six months. Repsol was
among the foreign oil majors affected.
"We will continue producing gas in Bolivia, although we don't
know under what conditions. Our priority is to negotiate and
reach an agreement," Mr. Fernandez-Cuesta said in reports.
Fernandez-Cuesta informed Dow Jones that he favors dialogue to
end conflicts. The Repsol official said that Bolivia owns the
reserves and has the right to establish rules for extraction,
which oil firms can either accept or reject.
* * *
On June 20, 2005, Moody's Investors Service upgraded the ratings
of Spanish-Argentine oil company Repsol YPF's local subsidiary
YPF S.A. Moody's upgraded YPF's senior unsecured rating to Ba3
from B1 and the unit's domestic currency issuer rating to Baa2
from Baa3.
YPF's foreign currency issuer rating of Caa1 remained unchanged,
as it is constrained by the sovereign ceiling of Argentina.
YPF's Corporate Family Rating (formerly known as the senior
implied rating) is aligned with the foreign currency issuer
rating at Caa1.
===========
B R A Z I L
===========
BANCO BRADESCO: Issues BRL300 Title with NGO SOS Mata Atlantica
---------------------------------------------------------------
Banco Bradesco's saving bonds unit issued a new title worth
BRL300 with environmental NGO SOS Mata Atlantica, according to
local financial daily Gazeta Mercantil.
Business News Americas relates that the title -- Pe Quente
Bradesco SOS Mata Atlantica 300 -- will mature in 36 months.
Bradesco Capitalizacao will donate three indigenous seedlings
for every title sold, BNamericas states. These seedlings will
be planted by the NGO through its reforestation program
Clickarvore.
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
-- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management. Bradesco has branches throughout Brazil as
well as one in New York, two in the Bahamas, and four in the
Cayman Islands. Bradesco offers Internet banking, insurance,
pension plans, annuities, credit card services (including
football-club affinity cards for the soccer-mad population), and
Internet access for customers. The bank also provides personal
and commercial loans, along with leasing services.
* * *
As reported in the Troubled Company Reporter on Feb. 23, 2006,
Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-'
bank financial strength rating to positive from stable.
BANCO NACIONAL: Loans BRL18.8M to Modernize Campinas City Hall
--------------------------------------------------------------
Banco Nacional de Desenvovimento Economico e Social aka BNDES
approved a financing in the amount of BRL18.8 million for a
project to modernize Campinas municipal administration. In the
ambit of the Program for the Modernization of the Tax
Administration or PMAT, the BNDES financing corresponds to 90%
of the total investment, of BRL20.9 million.
The project intends to create bases for increasing the operating
efficiency and fiscal justice, to improve public services and to
reduce public system costs, by means of the following actions:
-- updating and computerization of registries;
-- creation of infrastructure and own qualification in
Information Technology;
-- modernization of the municipal administration system;
-- modernization of the human resources administration; and
-- computerization of fiscal intelligence procedures.
For that purpose, investments will be made for:
-- acquisition of IT equipment,
-- qualification of personnel,
-- specialized technical services,
-- supporting equipment for inspection and physical
infrastructure, and
-- administering courses in finances, public administration
and IT management.
Campinas city hall expects that, after project completion, the
municipality's own tax collection will hold a 25% increase
potential, within five years, due to the improvement in
administrative and control structures.
Campinas city hall has about 17 thousand employees in activity,
distributed within 22 administrative units. Located inland the
State of Sao Paulo, Campinas occupies a total area of 790 square
kilometers. The population is estimated at around one million
inhabitants. Besides being crossed by different roadways,
Campinas has the International Airport of Viracopos, which,
presently under expansion, will be the second leading industrial
airport of Brazil, so leveraging the Brazilian exports.
The University of Campinas strengthens Campinas vocation as a
Brazilian technological center.
* * *
As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook. The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.
BANCO NACIONAL: Grants BRL94.7 Mil. Loan to Estaleiro Navship
-------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a financing of US$44.2 million, equivalent to BRL94.7
million, for Estaleiro Navship Ltda, for the construction of a
shipyard specializing in maritime support vessels.
Located in Navegantes in the state of Santa Catarina, Navship
will have capacity to build four ships per year and will receive
total investments of US$56.5 million, from which US$12.2
million, 22%, derived from own resources. The BNDES credit,
which will correspond to 78% of the budget, will come from the
Merchant Navy Fund.
The project forecasts the generation of 270 jobs in the initial
phases, and may reach 400 new jobs with the integral completion
of the works, expected to the end of this year. Besides, it has
as merit the generation of exchange value with exports, with the
leasing of vessels for companies abroad and with the
substitution of foreign flag vessels currently operating in the
country. The facilities of the shipyard will be modern and with
good productivity, enabling competitiveness in the domestic
market and incorporation of naval construction technology.
The shipyard Navship, private company, established in Nov. 2004,
is in initial phase of operation. It is controlled by the North
American group Edson Chouest Offshore or ECO, with solid
presence in the international market of support navigation and
with aggressive performance strategy. The group aims at
increasing the level of production internationalization, with
the installation of the unit in Brazil for the production of
vessels to operate in the local market and in the West Coast of
Africa.
The shipyard is located in land of 161 thousand square meters,
along Itajai River, place that counts on good logistic
structure, enabling the quick access to the roadway system of
the port of Itajai.
* * *
As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook. The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.
BUCKEYE TECHNOLOGIES: Posts US$795,000 Net Loss in First Quarter
----------------------------------------------------------------
Buckeye Technologies, Inc., reported a US$795,000 net loss on
US$181.4 million of net revenues for the first quarter ended
March 31, 2006, compared to US$4 million of net income on
US$180.9 million of net revenues for the year ended
Dec. 31, 2005.
As of March 31, 2006, the Company's balance sheet showed total
assets of US$969.7 million and total debts of US$688.3 million.
A full-text copy of Buckeye Technologies' Quarterly Report is
available for free at http://researcharchives.com/t/s?a22
Headquartered in Memphis, Tennessee, Buckeye Technologies, Inc.
-- http://www.bkitech.com/-- is a leading manufacturer and
marketer of specialty fibers and nonwoven materials. The
Company currently operates facilities in the United States,
Germany, Canada, and Brazil. Its products are sold worldwide to
makers of consumer and industrial goods.
* * *
As reported in the Troubled Company Reporter on March 9, 2006,
Standard & Poor's Ratings Services revised its outlook on
Buckeye Technologies Inc. to negative from stable. At the same
time, Standard & Poor's affirmed its ratings, including the
'BB-' corporate credit rating, on the Memphis, Tennessee-based
specialty pulp producer.
GERDAU SA: Will Participate in Siderperu's 56.04% Stake Auction
---------------------------------------------------------------
Gerdau SA, along with US firm Nucor and Spain's Global Steel,
will participate in Siderperu's 56.04% stake auction, a
spokesperson for ProInversion, the investment promotion agency
of Peru, told Business News Americas.
Danilo Munarriz, the investment promotion coordinator for the
Siderperu deal, was quoted by BNamericas as saying, "We are
going to see how interested they are as they present their pre-
qualification documents. The deadline for that is June 16."
Mr. Munarriz informed BNamericas that Duferco -- a European
steelmaker -- has also expressed interest in joining the
auction.
Mr. Munarriz also said that representatives of Luxembourg's
Arcelor have visited Siderperu operations but have not
approached ProInversion, which is in charge of the auction,
BNamericas relates.
According to BNamericas, participants must have a minimum annual
production of 2Mt and at least US$1 billion in equity before
they can bid for the company. The qualified participants will
submit their bids and ProInversion will declare a winner on June
28.
About Siderperu
Headquartered in Chimbote, Peru, Siderperu SA has steel
production capacity of 400,000 tons per year. The company
reported a net loss of 5.99 million soles (US$1.82 million) in
2005, compared to a net profit of 28.8 million soles in 2004.
About Gerdau
Headquartered in Porto Alegre, Brazil, Gerdau S.A. --
http://www.gerdau.com.br-- produces and distributes crude steel
and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.
Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by
Moody's, BB+ by S&P, and BB- by Fitch.
PARANA BANCO: S&P Rates US$5 Mil. Senior Unsecured Notes at B
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' foreign-
currency senior unsecured debt rating to Parana Banco S.A.'s
(B/Stable/B) US$5.0 million notes issued in a private placement,
and maturing in 18 months.
"The ratings on Parana Banco S.A. incorporate the intrinsic
risks to a very small bank with high product concentration
operating in an environment marked by fierce competition; the
bank's challenge to further diversify its funding base and
become less dependent on the group's resources; and the
potential margin pressures in the medium-to-long term that could
affect profitability," said Standard & Poor's credit analyst
Beatriz Degani.
In addition, the bank faces the challenge of increasing the
scale of its operations while maintaining adequate asset
quality. These risks are tempered by the bank's
-- good profitability levels,
-- adequate operating efficiency, and
-- improved asset quality ratios.
Parana Banco is a small niche bank, positioned 67th in Brazil,
with assets of BRL535 million or US$246 million as of December
2005 --less than 1% of total bank assets in the Brazilian
banking industry.
Parana Banco's niche is payroll discount lending, representing
about 98% of its credit operations, primarily to public-sector
employees. The bank is a relevant part of a broader
conglomerate, that of J. Malucelli, and represented around 30%
of the group's consolidated net income of BrR94 million in 2004.
Standard & Poor's does not assign ratings to any company in the
J. Malucelli group, and the ratings assigned to the bank do not
incorporate potential support from shareholders.
The stable outlook reflects our expectations that Parana Banco
will maintain its core competencies in the medium term, with
profitability and asset-quality indicators at adequate levels.
The outlook may be revised to positive or ratings may be raised
if the bank shows superior growth in its niche operations in
payroll-discount loans with
-- consistent returns,
-- improving liquidity,
-- a stable and more diversified funding base, and
-- less dependence on the Group's resources.
On the other hand, the ratings may be lowered or the outlook may
be revised to negative
-- if there is a significant worsening in asset quality
(with nonperforming loans to total loans higher than 5%);
-- if profitability levels drop drastically; and
-- if funding and liquidity become problematic to support the
bank's operations.
SABESP: Workers Threaten to Strike If Salary Hike Not Approved
--------------------------------------------------------------
Members of the Sao Paulo water, waste and environment workers
union aka Sintaema will hold demonstrations against Sabesp aka
Companhia de Saneamento Basico do Estado de Sao Paulo starting
May 31 until company officials approve a 15% salary increase,
according to local press reports.
A Sintaema spokesperson told Business News Americas, that the
4.63% salary raise Sabesp offered for this year is below the
rate of inflation.
BNamericas relates that the workers rejected the proposed raise
plus a promised bonus in November.
The workers are also demanding the distribution of company
profits as well as an end to regional salary disparities,
BNamericas states.
The spokesperson was quoted by BNamericas as saying that the
union and company officials are currently negotiating.
"Workers will meet again tonight [Tuesday] to vote on whether or
not to proceed with the strike," the spokesperson informed
BNamericas.
The spokesperson revealed to BNamericas that the workers had
held a three-day strike last year until this were offered by
Sabesp:
-- 7.94% salary readjustment,
-- 2% real wage increase, and
-- continuation of the employment guarantee.
* * *
As reported in the Troubled Company Reporter on Oct. 3, 2005,
Standard & Poor's Ratings Services assigned a 'BB-/Stable/--'
corporate credit rating to Companhia de Saneamento Basico do
Estado de Sao Paulo aka Sabesp.
VARIG S.A.: Mitsui Says U.S. Court Protection Is Inappropriate
--------------------------------------------------------------
Mitsui & Co. Ltd., as representative lessor with respect to two
Boeing 737-300, asks the U.S. Bankruptcy Court for the Southern
District of New York to:
a. allow the preliminary injunction to expire;
b. deny the request for a permanent injunction; and
c. direct VARIG, S.A., and its debtor-affiliates to return
the Aircraft to Mitsui, together with the engines and
records.
Mitsui's Complaint
VARIG has again defaulted on its obligations to Mitsui, William
J. Rochelle, Esq., at Fulbright & Jaworski L.L.P., in New York,
relates. Mitsui served the airline with notices of default,
which VARIG has chosen to ignore. VARIG has not returned the
Aircraft and Mitsui believes both are in service generating
revenue for the airline.
At an April 27, 2006, hearing to consider an extension of the
preliminary injunction, UBS Investment Bank, VARIG's financial
advisor, told the U.S. Bankruptcy Court that VARIG had a
proposal in hand from MatlinPatterson -- Plan A -- and another
alternative plan -- Plan B. The financial advisor explained
that Plan A was vastly preferable and could be implemented more
quickly than Plan B.
However, Mr. Rochelle says, no later than April 28, 2006, VARIG
abandoned Plan A and instead adopted Plan B, which has itself
been modified since.
Plan A's immediate repudiation, Mitsui asserts, implies that the
financial advisor was either grossly unaware of unfolding events
or had intentionally misled the Court in the testimony.
Plan B entails spinning off VARIG's operations into a new
company, not liable for its "old" debts, and assumes that a
buyer will pay not less than US$870,000,000, for the airline's
assets. Mr. Rochelle also notes that Plan B contemplates that
the Brazilian government's Banco Nacional de Desenvolvimento
Economico e Social will finance two-thirds of a bridge loan for
US$250,000,000 to provide liquidity until Plan B can be
consummated. BNDES will finance the bridge loan to a credit-
worthy borrower who intends to buy VARIG's assets.
Mitsui is skeptical that events will unfold as VARIG planned.
Lessors deserve more than promises, Mitsui asserts.
"The time has come for the Bankruptcy Court to restore a modicum
of sanity to the VARIG reorganization by compelling [it] either
to pay the arrears immediately or surrender the aircraft
immediately," Mr. Rochelle says.
VARIG, Mr. Rochelle points out, is once again four months in
arrears to Mitsui and offers no guarantee that the defaulted
rent will be paid on a specific date.
Mitsui is no longer willing for VARIG to continue using and
withholding the Aircraft while paying Mitsui nothing in return,
Mr. Rochelle continues. Although VARIG promised that the
financial problems had been cured and that no new defaults would
occur, the airline is again unilaterally turning lessors into
involuntary lenders funding round two in the airline's
reorganization.
"This Court should allow the existing preliminary injunction to
expire because giving the appearance of U.S. Court protection is
inappropriate when the Brazilian reorganization has failed and
neither the Brazilian government nor a private party is willing
to step forward with the cash to compensate the lessors for the
use of their aircraft," Mr. Rochelle maintains.
Conversion Hearing Set on May 31
As previously reported, the Court extended the Preliminary
Injunction through and including June 1, 2006.
The Court will convene a hearing on May 31, 2006, at 10:00 a.m.,
to consider the Permanent Injunction request.
On or before the May 31 hearing, the Court may, upon request of
a lessor, determine whether to order the implementation of the
Contingency Plan for the Orderly Return of Aircraft with respect
to and to the extent of:
a. any aircraft, engines or other equipment -- including
parts -- that is property of a lessor that is or is
proposed to be sold, assigned or otherwise transferred by
a Foreign Debtor to a third party without the lessor's
consent; or
b. any aircraft or engine that is retained by a Foreign
Debtor that is the property of a lessor where the Foreign
Debtor is in default, under the lease for that aircraft or
engine, for nonpayment of rent or maintenance reserves
first coming due after June 17, 2005, and not cured on or
before January 13, 2006, regardless of whether the cure
was timely under the terms of the lessor's lease or other
agreement.
In view of developments in the Foreign Proceedings, Eduardo
Zerwes, the Foreign Representative of VARIG, has advised the
Court that he will file a supplement to the Permanent Injunction
request on or before May 25, 2006.
About VARIG
Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America. VARIG's principal business is the transportation of
passengers and cargo by air on domestic routes within Brazil and
on international routes between Brazil and North and South
America, Europe and Asia. VARIG carries approximately 13
million passengers annually and employs approximately 11,456
full-time employees, of which approximately 133 are employed in
the United States.
The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage. The Debtors may be the first case
under the new law, which took effect on June 9, 2005. Similar
to a chapter 11 debtor-in-possession under the U.S. Bankruptcy
Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization. Sergio Bermudes,
Esq., at Escritorio de Advocacia Sergio Bermudes, represents the
carrier in Brazil.
Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative. In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States. As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 19; Bankruptcy
Creditors' Service, Inc., 215/945-7000)
===========================
C A Y M A N I S L A N D S
===========================
ANTHRACITE BALANCED: Proofs of Claim Filing Ends by June 16
-----------------------------------------------------------
Creditors of Anthracite Balanced Company (JR-17) Limited are
required to submit particulars of their debts or claims by
June 16, 2006, to the company's appointed liquidators, Scott
Aitken and Connan Hill. Failure to do so will exclude them from
receiving the benefit of any distribution that the company will
make.
The company started liquidating assets on April 28, 2006.
The liquidators can be reached at:
Scott Aitken
Connan Hill
P.O. Box 1109, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-7755
Fax: (345) 949-7634
ARKLET LIMITED: Creditors Must File Proofs of Claim by June 10
--------------------------------------------------------------
Creditors of Arklet Limited, which is being voluntarily wound
up, are required to present proofs of claim by June 10, 2006, to
Liquidation Services (Cayman) Limited, the company's liquidator.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator specified. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
Arklet Limited began liquidating assets on April 25, 2006.
The liquidator can be reached at:
Liquidation Services (Cayman) Limited
Attention: S. Tyne
Walker House, Mary Street
P.O. Box 908GT, George Town
Grand Cayman, Cayman Islands
CLOVA LIMITED: Filing of Proofs of Claim Ends on June 10
--------------------------------------------------------
Creditors of Clova Limited are required to submit particulars of
their debts or claims by June 10, 2006, to the company's
appointed liquidator, Liquidation Services (Cayman) Limited.
Failure to do so will exclude them from receiving the benefit of
any distribution that the company will make.
Clova Limited started liquidating assets on April 25, 2006.
The liquidator can be reached at:
Liquidation Services (Cayman) Limited
Attention: S. Tyne
Walker House, Mary Street
P.O. Box 908GT, George Town
Grand Cayman, Cayman Islands
FINGLAS LIMITED: Proofs of Claim Must be Filed by June 10
---------------------------------------------------------
Creditors of Finglas Limited, which is being voluntarily wound
up, are required by June 10, 2006, to present proofs of claim to
Liquidation Services (Cayman) Limited, the company's liquidator.
Finglas Limited started liquidating assets on April 25, 2006.
Creditors are required to present proofs of claim personally or
through their solicitors at the time and place that the
liquidator will specify. Failure to present claims would mean
exclusion from the benefit of any distribution that the company
will make.
The liquidator can be reached at:
Liquidation Services (Cayman) Limited
Attention: S. Tyne
Walker House, Mary Street
P.O. Box 908GT, George Town
Grand Cayman, Cayman Islands
PIERCE STREET: Final Shareholders Meeting Is Set for June 15
------------------------------------------------------------
Shareholders of Pierce Street Capital International Ltd. will
gather for a final meeting on June 15, 2006, at:
Ansbacher House
2nd Floor, #20 Genesis Close
P.O. Box 31910 SMB, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
As reported in the Troubled Company Reporter on May 24, 2006,
Pierce Street started liquidating assets on April 19, 2006.
Creditors of the company were required to submit particulars of
their debts or claims by tomorrow, June 31, 2006, to Corporate
Services Ltd., the company's appointed liquidator.
The liquidator can be reached at:
Corporate Services Ltd.
Attention: Angela Nightingale
Ansbacher House
P.O. Box 31910 SMB
Grand Cayman, Cayman Islands
Tel: (345) 946-7665
Fax: (345) 946-7666
PROSEN LIMITED: Creditors Have Until June 10 to Present Claims
--------------------------------------------------------------
Prosen Limited's creditors are required to submit particulars of
their debts or claims by June 10, 2006, to the company's
appointed liquidator, Liquidation Services (Cayman) Limited.
Failure to do so will exclude them from receiving the benefit of
any distribution that the company will make.
Prosen Limited started liquidating assets on April 25, 2006.
The liquidator can be reached at:
Liquidation Services (Cayman) Limited
Attention: S. Tyne
Walker House, Mary Street
P.O. Box 908GT, George Town
Grand Cayman, Cayman Islands
RONDAU LIMITED: Sets June 19 Deadline for Claims Filing
-------------------------------------------------------
Creditors of Rondau Limited are required to submit particulars
of their debts or claims by June 19, 2006, to Alain Andrey, the
company's appointed liquidator. Failure to do so will exclude
them from receiving the benefit of any distribution that the
company will make.
Rondau Limited started liquidating assets on April 25, 2006.
The liquidator can be reached at:
Alain Andrey
c/oMessrs. Maples and Calder
P.O. Box 309, George Town
Grand Cayman, Cayman Islands
STANLEY FUND: Creditors Must Present Proofs of Claim by June 10
---------------------------------------------------------------
Creditors of Stanley Fund Managers International Limited are
required to present proofs of claim to John Cullinane and Derrie
Boggess, the company's liquidators, by June 10, 2006, or be
excluded from receiving any distribution or payment that the
company will make.
Creditors are required to send by June 10 their full names,
addresses, descriptions, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
the liquidators.
Stanley Fund started liquidating assets on April 27, 2006.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
P.O. Box 908, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914-6305
UAM BOND: Schedules Last Shareholders Meeting on June 30
--------------------------------------------------------
Shareholders of UAM Bond Series 2 - Trinity Fund will convene on
June 30, 2006, for a final general meeting at:
Queensgate Bank & Trust Company Ltd.
P.O. Box 30464 SMB, Harbour Place
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting. The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after such
period.
Any person who is entitled to attend and vote at this meeting
may appoint a proxy to attend and vote in his stead. A proxy
need not be a member or a creditor.
As reported in the Troubled Company Reporter on May 29, 2006,
GPF Almatis Holdings Limited started liquidating assets on
March 29, 2006. Verification of creditors' claims against the
company will end on June 30, 2006.
The company's liquidators can be reached at:
Jane Fleming
Melanie Harbron
Queensgate Bank & Trust Company Ltd
PO Box 30464 SMB, Harbour Place
Grand Cayman, Cayman Islands
Tel: (345) 945-2187
Fax: (345) 945-2197
YMO CORPORATION: Liquidator Stops Accepting Claims After June 16
----------------------------------------------------------------
Creditors of YMO Corporation are required to submit particulars
of their debts or claims by June 16, 2006, to the company's
appointed liquidator -- Piccadilly Cayman Limited. Failure to
do so will exclude them from receiving the benefit of any
distribution that the company will make.
YMO Corporation started liquidating assets on May 2, 2006.
The liquidator can be reached at:
Piccadilly Cayman Limited
Attention: Ellen J. Christian
c/o BNP Paribas Bank & Trust Cayman Limited
3rd Floor Royal Bank House
Shedden Road, George Town
Grand Cayman, Cayman Islands
Tel: (345) 945-9208
Fax: (345) 945-9210
===================
C O S T A R I C A
===================
* COSTA RICA: Mulls Concessions on Railway
------------------------------------------
The government of Costa Rica is considering giving out
concessions on the country's railway business, Karla Gonzalez,
the minister of public works and transportation aka MOPT, was
quoted by Inside Costa Rica as saying.
According to Inside Costa Rica, the government is studying the
possibility of revitalizing train service -- both passenger and
cargo -- with the aid of private firms.
Minister Gonzalez told Inside Costa Rica, "We believe that the
railway has more real possibilities to carry people in a faster
way. In as much as cargo, it is more logical to move the number
of containers by rail and take them off the highways."
Inside Costa Rica relates that the railway would be operated
under a contract or license. The owners of the concession
operate as an independent business and pays to the government:
-- a fixed fee,
-- a percentage of revenue or profit, or
-- both.
Riteve SyC, the vehicular inspection firm, reported that there
are 114,000 trucks registered and about 29,300 of which are for
heavy loads of more than 3.5 tons.
There has always been interest from the private sector to be
involved in the railway, Miguel Carabaguiaz, the head of the
Instituto Costarricense de Ferrocarriles aka Incofer, told
Inside Costa Rica. According to him, private investment in the
cargo rail has a lot of possibilities and great potential.
Mr. Carbaguiaz informed Inside Costa Rica that he had a meeting
scheduled on Tuesday with President Oscar Arias to discuss the
future of the train in Costa Rica. The Incofer head said that
he would discuss with the president the possible routes and
concessions that would be made available as well as the
government's planned investment in the railway.
Inside Costa Rica states that Mr. Carabaguiaz believes that the
rail system has to be revitalize in both the Pacific and
Caribbean coast. It would allow the movement of cargo between
Puerto Caldera to the west and Puerto Limon on the east. The
Incofer chief said that the movement of cargo by rails would
lessen the traffic problems on the nations highways.
Inside Costa Rica recalls that the train service stopped in
1996. The train had carried an annual average of 729,000 tons
of cargo, mainly banana and wheat. The train had 1,150 workers.
Inside Costa Rica relates that the train was revived in August
2005 by the former government to move commuter traffic between
San Pedro and Pavas. Incofer told Inside Costa Rica that the
plan has been a success and is moving to expand the service to:
-- Heredia,
-- San Jose, and
-- Cartago.
Mr. Carabaguiaz revealed to Inside Costa Rica that for the train
to fully operate again, these has to be done:
-- an estimated 325 kilometers of track have to be repaired
or built, and
-- remove people who have made some of the old train stations
their homes, including removing a number of illegal
construction along the railway.
The earlier administration had considered giving away
concessions back in 2001, but failed to do so due to poor offers
at the time, Inside Costa Rica relates.
Mr. Carabaguiaz is positive that this time concessions will be
given out, Inside Costa Rica reports.
* * *
Costa Rica is rated by Moody's:
-- CC LT Foreign Bank Depst Ba2
-- CC LT Foreign Curr Debt Ba1
-- CC ST Foreign Bank Depst NP
-- CC ST Foreign Curr Debt NP
-- Foreign Currency LT Debt Ba1
-- Local Currency LT Debt Ba1
Fitch assigned these ratings to Costa Rica:
-- Foreign currency long-term debt, BB
-- Local currency long-term debt, BB
-- Foreign currency short-term debt, B
Costa Rica carries these ratings from Standard & Poor's:
-- Foreign Currency LT Debt BB
-- Local Currency LT Debt BB+
-- Foreign Currency ST Debt B
-- Local Currency ST Debt B
=======
C U B A
=======
* CUBA: Seized Contraband Cigars Reaches 25,000 Boxes in 2005
-------------------------------------------------------------
Cuba's customs officials confiscated 24,690 boxes of smuggled
cigars last year, as part of an effort to reduce illegal imports
in the country, news agency AIN reports.
The news agency did not reveal how many cigars were in the
boxes, the Associated Press reports.
AIN relates that the customs also confiscated in 2005 about 740
pounds of false cigar seals and stamps, used by those who pass
off low-quality cigars as the real thing.
According to AP, travelers to Cuba can leave the island with 23
cigars without receipts. Beyond that, they must present proof
of purchase from cigar stores approved by Cuba's cigar marketing
company, Habanos S.A.
Associated Press relates that cigars are one of the island's
most important exports, reaching about US$340 million per year.
However, the prestige of Cuban cigars as well as an increase in
tourism has led to the increase of black market. This prompted
customs agents to tighten their controls.
Customs official Col. Pedro Pupo informed AIN that about 80% of
the contraband is seized at Havana's Jose Marti International
airport, often from people traveling to Panama or Mexico, while
the rest are confiscated at airports in Santiago de Cuba,
Varadero and Holguin.
* * *
Moody's assigned these ratings on Cuba:
-- CC LT Foreign Bank Depst, Caa2
-- CC LT Foreign Curr Debt, Caa1
-- CC ST Foreign Bank Depst, NP
-- CC ST Foreign Curr Debt, NP
-- Issuer Rating, Caa1
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Will Revise Subsidy on Liquefied Petroleum
----------------------------------------------------------------
The Dominican Republic's government will revise the liquefied
petroleum gas subsidy, Vicente Bengoa, the finance minister, was
quoted by Dominican Today as saying.
By the end of June, the government would have invested DOP2.5
billion in subsidies, Minister Bengoa informed Dominican Today.
This situation would force authorities to look for additional
resources.
The minister told Dominican Today that last year, the subsidies
amounted to DOP2.6 billion.
According to Dominican Today, Mr. Bengoa stated he was in favor
of subsidizing gas to housewives, though at the present time,
these are the lesser users, but rather the affluent are mostly
benefiting from this subsidy.
Minister Bengoa agreed with industrialists' position that the
moneys for subsidies not used by the poor be allocated to
education and health programs, Dominican Today reports.
* * *
The Troubled Company Reporter - Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
=============
E C U A D O R
=============
* ECUADOR: Inks Contract on Oil Refinement with Venezuela
---------------------------------------------------------
Ecuador's President Alfredo Palacio signed a series of energy
cooperation accords -- including refining Ecuadorian crude in
Venezuela -- with Hugo Chavez, his Venezuelan counterpart, BBC
News reports.
Venezuela will refine up to 100,000 barrels of Ecuador's crude
oil in Venezuela daily, according to BBC News. It will result
to an annual savings of more than US$300 million in Ecuador's
part.
Correspondents say that the accord is likely to raise concerns
in the US over the growing regional influence of President
Chavez, who has been very vocal of his abhorrence to the US.
However, the foreign ministry of Ecuador said in a statement
that the Venezuelan president's visit is much more technical
than political. The statement said they were trying to build
integration on the continent and not form any kind of anti-US
access.
As reported in the Troubled Company Reporter on May 31, 2006,
Ecuador declined an invitation by President Chavez to join in an
energy alliance that will challenge the economic influence of
Washington in the Latin American region.
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* * *
Fitch Ratings assigned these ratings on Ecuador:
Rating Rating Date
------ -----------
Country Ceiling B- Aug. 29, 2005
Long Term IDR B- Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
===========
G U Y A N A
===========
DIGICEL LIMITED: Mulls Acquiring Cel*Star or GT&T in Guyana
-----------------------------------------------------------
Digicel Limited has studied the possibility of acquiring either
Cel*Star Guyana or Guyana Telephone & Telegraph aka GT&T, The
Irish Times states, citing one of the companies.
According to Irish Times, Guyana's President Pharrat Jagdeo
disclosed earlier this year that the country would issue a
license to Digicel. The mobile operator, however, had not
revealed plans of acquisition. The status of negotiations was
not immediately clear and Digicel said nothing about its
interest in Guyana.
Pierre Strasser, the head of Cel*Star, told Irish Times that
Digicel had held talks with his company and with GT&T.
Irish Times relates that Mr. Strasser is positive that the
process with his company, its rival and the government of Guyana
was still open. He however said that he could not speculate an
outcome.
The contacts were initiated about 18 months ago, Mr. Strasser
was quoted by Irish Times as saying.
Mr. Strasser revealed to Irish Times that the US$30 million
legal action Cel*Star initiated against Digicel in 2005
continued despite the current negotiations for acquisition.
Cel*Star had accused Digicel of deliberately hiring its staff.
Digicel however dismissed the claims as baseless, spurious and
malicious, Irish Times recalls.
Digicel Limited is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in 13 countries of the Caribbean
including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada,
Barbados, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
On Mar. 10, 2006, Fitch affirmed the 'B' rating of Digicel
Limited, senior unsecured debt, including the US$300 million
senior notes due 2012, following the announcement that it is in
the process of acquiring Bouygues Telecom Caraibe. Fitch said
the Outlook for the Ratings is Stable.
===============
H O N D U R A S
===============
* HONDURAS: Small Businesses Threatened by Free Trade Agreement
---------------------------------------------------------------
Micro, small and mid-sized business owners in Honduras fear that
they will become non-competitive and will be pushed out of the
market for lack of capital due to the implementation of the
country's Free Trade Agreement with the United States, Prensa
Latina reports.
The Workers' General Union said in a statement that the
Hondurans are not ready to compete with the US market, which has
a great magnitude.
According to the statement, many producers have been forced to
change jobs as consumers prefer products imported by the US.
The association was quoted by Prensa Latina as saying that
because of the FTA, farmers and producers of the so-called
informal economy with no access to private bank credit are
condemned to failure.
Prensa Latina states that the Workers' Union foresees that a
great number of micro-business Hondurans will be left without a
job while large private firms will augment.
The Honduran Private Enterprise Council assures that with the
implementation of the FTA, the nation will preserve over 140,000
of the existing direct jobs, Prensa Latina reports.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
------ -----------
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
MIRANT CORP: Proposes to Acquire NRG Energy for US$8 Billion
------------------------------------------------------------
Mirant Corporation made a proposal to acquire NRG Energy, Inc.
at a premium of approximately 33% to NRG's share price as of
Tuesday, May 30, 2006. The proposal would be immediately
accretive to the pro forma free cash flow per share of Mirant.
Mirant received a financing commitment from JPMorgan of
approximately US$11.5 billion for the transaction.
NRG flatly rejected the proposal without engaging in any
discussions with Mirant. Mirant continues to believe that the
proposal creates significant value for the owners of both
companies and has decided to make its proposal public in a
letter to NRG's board of directors.
Edward R. Muller, Mirant's Chairman and Chief Executive Officer,
stated in the letter that:
"We were disappointed that you would reject so quickly on behalf
of your shareholders, without any discussion with us, our
acquisition proposal of May 10, 2006, which provides your
shareholders a substantial premium to their share price and the
opportunity to participate in the additional value creation we
expect from the combined company. We think that it is important
for your shareholders to be informed of such a compelling
opportunity, and, therefore, we are simultaneously releasing
this letter to the public.
"In the transaction we proposed, your shareholders would
receive, at their election, US$57.50 per share in cash or Mirant
Corporation common stock at an exchange ratio of 2.25 Mirant
shares for each share of NRG common stock, based upon our
understanding that you have 137.5 million fully diluted shares
outstanding. Your shareholders' elections to receive the total
of approximately US$3.9 billion in cash (representing 50% of the
total consideration) or Mirant common stock would be subject to
proration to preserve the 50/50 cash/stock mix in the deal.
"This transaction would provide a blended value of approximately
US$57.16 per share of NRG common stock and would represent a
substantial premium of approximately 33% to NRG's share price,
based on the closing prices of Mirant and NRG on Tuesday,
May 30, 2006. In addition, your shareholders would receive a
premium of approximately 33% to your one-year average trading
price and approximately 55% to your two-year average trading
price.
"We think that a combination of Mirant and NRG would create an
enterprise with significant opportunities for expense and
operational synergies and a national footprint that is without
parallel. The combination would generate a number of specific
and compelling benefits. Our best estimate of the annual cost
savings from the reduction of overlapping functions is US$150
million (based on publicly available information), in addition
to significant opportunities for cost savings from the
procurement and use of fuel and in the application of emissions
credits. The combination also would diversify the risks
associated with the assets and operations of both companies. In
addition, the combination would create the largest independent
power company in the United States with a strong presence in
four key regions (Texas, Mid- Atlantic, Northeast and
California). The combined company would have over 43,000
megawatts globally, with over 37,500 megawatts in the United
States. Approximately 32% of its domestic capacity would be
low-cost, baseload generating capacity. Finally, the
combination would enhance liquidity and value for the
shareholders of both companies. We estimate that the combined
company would have adjusted EBITDA for 2007 in excess of US$3
billion. The transaction would be immediately accretive to
Mirant's pro forma free cash flow per share. In short, we think
that the combined company would deliver superior returns to our
combined shareholder base, with benefits flowing to our
respective customers, employees and other constituencies as
well.
"Mirant emerged from Chapter 11 on January 3, 2006, with what
most observers characterize as the strongest balance sheet in
the industry. Since Jan. 3, 2006, a total of approximately
275 million of our shares have traded, representing
approximately 92% of our total outstanding shares. Our hedging
strategy has been effective in reducing risk while improving our
earnings profile. We currently expect that cash flows from
operations through 2011 will be sufficient to fund our
forecasted capital expenditures, including those for required
environmental controls. Finally, we have a new management team
with extensive experience in the industry.
"We think that now is the right time to pursue a combination of
our companies, and we are committed to doing so on an expedited
basis. Our Board of Directors has approved our proposal, and we
are prepared to begin negotiations of the terms of our proposal
with you immediately and to enter into a definitive merger
agreement and complete the transaction as soon as possible. We
have received a financing commitment from JPMorgan of
approximately US$11.5 billion which, when combined with our
available cash, will:
* fund the cash portion of the purchase consideration for
your common and, if necessary, preferred stock;
* refinance your senior credit facilities; and
* fund the purchase of your 7.250% Senior Notes and 7.375%
Senior Notes pursuant to a change of control offer at a
price equal to 101% of the aggregate principal amount, plus
accrued and unpaid interest.
"The indebtedness of our subsidiaries, including Mirant Americas
Generation, LLC and Mirant North America, LLC, would remain in
place. We expect that due diligence can be completed quickly.
In addition, given the complementary geographies of our
respective operations, we expect that all regulatory approvals
will be obtained expeditiously. With your cooperation, we think
that we can close the transaction in 2006.
"We expect your shareholders to respond enthusiastically to this
transaction: current shareholders who wish to exit will have the
opportunity to do so at an attractive premium; those
shareholders who choose to continue as investors in the combined
company will receive both an attractive premium and have the
opportunity to participate in the additional value creation we
expect from the combination. We believe ardently in the wisdom
and strategic value of this transaction and the benefits it
offers to our combined shareholders and stakeholders. This
matter has the highest priority for us."
About NRG Energy
Headquartered in Princeton, New Jersey, NRG Energy, Inc. --
http://www.nrgenergy.com/-- currently owns and operates a
diverse portfolio of power-generating facilities, primarily in
the Northeast, South Central and Western regions of the United
States. Its operations include baseload, intermediate, peaking,
and cogeneration facilities, thermal energy production and
energy resource recovery facilities. NRG also has ownership
interests in generating facilities in Australia and Germany.
About Mirant
Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally. Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590), and emerged under the terms of a
confirmed Second Amended Plan on Jan. 3, 2006. Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring. When the Debtors filed for
protection from their creditors, they listed US$20,574,000,000
in assets and US$11,401,000,000 in debts.
At Dec. 2, 2005, Moody's Investors Service assigned a B1 long-
term corporate family rating to Mirant Corp.
MIRANT CORP: Acquisition Proposal Undervalues NRG Energy
--------------------------------------------------------
NRG Energy, Inc. confirmed, on May 30, 2006, that it has
received an unsolicited proposal from Mirant Corporation
regarding a potential combination in letters dated
May 10 and 30.
Consistent with its fiduciary duties and in consultation with
its financial advisor and legal counsel, NRG's Board of
Directors reviewed the Mirant proposal and deemed it not in the
best interests of NRG shareholders. NRG shareholders do not
need to take any action at this time.
Citigroup is serving as financial advisor to NRG, and Skadden,
Arps, Slate, Meagher & Flom LLP is legal counsel.
On May 23, 2006, NRG sent a response letter to Edward R. Muller,
Chairman and Chief Executive Officer of Mirant Corporation and
the Mirant Board of Directors.
The letter from Howard Cosgrove, NRG's Chairman of the Board,
and David Crane, NRG's President and Chief Executive Officer,
stated that:
"The Board of Directors of NRG Energy, Inc., with the assistance
of its financial and legal advisors, has reviewed and thoroughly
considered your May 10, 2006 letter. Based upon this review the
Board has unanimously rejected your proposal because it is not
in the best interests of NRG shareholders. The NRG Board has
specifically authorized this response.
"As discussed below, the Board has found your proposal deficient
in at least three key respects:
* it significantly undervalues NRG;
* our concerns about Mirant's value and your stock's relative
lack of liquidity and trading history makes Mirant's stock
an unacceptable currency; and,
* finally, having taken into account trends and developments
in the wholesale power generation sector, we do not believe
this is the appropriate time to engage in a sale process.
"Having spent considerable time analyzing Mirant, its assets and
prospects -- both during the three years you spent in bankruptcy
and the four months since you emerged -- we have concluded that
Mirant is a company and stock with flat earnings, little to no
growth opportunity beyond 2007, substantial and imminent
environmental capital expenditures, and significant EBITDA
exposure to developing country risk. Additionally, with only a
four-month trading history and an average daily trading volume
of 2.7 million shares during those four months, we believe that
Mirant's stock lacks a sufficient track record and liquidity for
us to recommend to our shareholders that they accept over 150
million Mirant shares as you propose. These factors far
outweigh any synergistic benefits that might come from a
combination of the two companies.
"For these reasons, NRG's Board and management strongly believe
that our shareholders would be poorly served by being exposed to
Mirant's challenges through ownership of Mirant equity on the
terms set forth in your proposal.
On the question of timing, we believe our cyclical industry has
just begun to emerge out of a multi-year trough and, over the
next couple of years, we will experience continued robust
commodity prices, supply shortfalls in our core regions, spark
spread recovery and a rationalization of the utility industry in
such a way that the intrinsic value of NRG (and the value of NRG
as a potential acquisition candidate) will rise rapidly. And we
are confident that we will be able to convert the rise in
intrinsic value of NRG into increased market value. Over the
past 24 months, NRG's stock has appreciated 120% as the market
has recognized the value of our asset mix, the soundness of our
strategy and our track record in its implementation, including:
* a diverse multi-regional domestic portfolio of 22,848 MW;
* a substantial EBITDA growth rate past 2007 from hedges
placed at rising prices;
* a thrving brownfield development program across all
regions; and
* a history of returning capital to shareholders through two
substantial share buybacks in the first 18 months of our
existence.
"We are confident that our stock is poised for further
appreciation as we capitalize on the positive industry trends
and as the market comes to recognize our embedded growth
potential particularly post-2007. In this regard, we note that
the premium reflected in your proposal is far less than the
annual compound average growth rate of NRG's share price
appreciation.
"To clarify one point, your letter references past meetings
between you and our Chief Executive Officer, David Crane, on the
topic of combining NRG and Mirant. Our Company's strategic
interest in Mirant predates your tenure there and is well known
to anyone who has read transcripts of your bankruptcy hearings.
When Mr. Crane discussed a combination of the two companies with
you last November, it was in the context of NRG acquiring
Mirant, since at that time Mirant's stock was neither listed nor
actively traded. Once your company finally emerged from
bankruptcy in January 2006, our Board specifically reviewed the
possible acquisition of Mirant by NRG. We decided not to do so
on the grounds that at $25 per share Mirant's stock was
overvalued, and we were not willing to risk NRG's reputation for
financial discipline on an overpriced bid for Mirant. When you
approached Mr. Crane in March to propose a "no premium"
acquisition of NRG by Mirant, Mr. Crane advised you that such a
transaction (at the price for NRG's shares implied by your
proposal) was not worth pursuing further given that it would be
massively dilutive to NRG shareholders -- a point of view which
neither you nor Goldman Sachs has ever attempted to refute.
"As you know, NRG believes that industry consolidation is
inevitable, and we expect to participate -- either as a buyer or
a seller. You should also know that we would only pursue
transactions that create unquestionable value for our
stockholders. Your proposal is simply the wrong deal at the
wrong time."
About NRG Energy
Headquartered in Princeton, New Jersey, NRG Energy, Inc. --
http://www.nrgenergy.com/-- currently owns and operates a
diverse portfolio of power-generating facilities, primarily in
the Northeast, South Central and Western regions of the United
States. Its operations include baseload, intermediate, peaking,
and cogeneration facilities, thermal energy production and
energy resource recovery facilities. NRG also has ownership
interests in generating facilities in Australia and Germany.
About Mirant
Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant owns or leases more than 18,000
megawatts of electric generating capacity globally. Mirant
Corporation filed for chapter 11 protection on July 14, 2003
(Bankr. N.D. Tex. 03-46590), and emerged under the terms of a
confirmed Second Amended Plan on Jan. 3, 2006. Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring. When the Debtors filed for
protection from their creditors, they listed US$20,574,000,000
in assets and US$11,401,000,000 in debts.
At Dec. 2, 2005, Moody's Investors Service assigned a B1 long-
term corporate family rating to Mirant Corp.
===========
M E X I C O
===========
DESC SA: Fitch Affirms B+ Local & Foreign Currency Ratings
----------------------------------------------------------
Fitch Ratings placed the following rating actions on DESC, S.A.
de C.V.:
-- International scale local and foreign currency issuer
default rating affirmed at 'B+', Outlook Stable;
-- International scale senior secured debt and IFC B Loan
Participations affirmed at 'BB-/RR3';
-- National scale senior unsecured rating and UDI-denominated
bonds due 2006 and 2007 upgraded to 'BBB(mex)' from
'BBB-(mex)'; and
-- National scale Certificados Bursatiles due 2010 upgraded
to 'AA (mex)' from 'AA-(mex)'.
The upgrades on the national scale ratings reflect the company's
improved operating and financial profile over the past year.
The upgrades also reflect the recent roll out of IDRs and
Recovery Ratings for Latin America Corporates. On April 24,
2006, in conjunction with various other rating actions on
companies throughout the region, Fitch upgraded DESC's foreign
currency and local currency debt ratings to 'B+' from 'B' and
senior secured debt, including the IFC B Loan Participations, to
'BB-' from 'B+'.
Over the past two years, consolidated EBITDA margin grew to 9.0%
in 2005 from 7.5% in 2003 as a result of higher volumes and
pricing in the chemical and auto parts sectors and increased
revenues from the food business. Despite a challenging business
environment characterized by higher raw materials of steel,
butadiene, styrene and others, and energy costs (natural gas and
electricity), the company has had the ability to pass through
most of the cost increases to prices. Management has also
maintained strict cost and expense controls, which has benefited
profit margins. Important debt reductions over the past two
years with proceeds from a capital increase completed in 2004,
sale of non-core assets and internally generated cash, have also
contributed to an improvement in DESC's credit protection
measures. The debt-to-EBITDA ratio for the 12 month period
ended March 31, 2006 reached 3.2x, compared to 5.3x and 3.5x in
2003 and 2004 respectively. Interest coverage, measured as
EBITDA-to-gross interest expense reached 2.4x at March 31, 2006.
These ratios are consistent with the current rating categories.
During 2005, DESC continued to divest non-core assets and
directed proceeds to investments in businesses with value-added
potential and for the reduction of consolidated debt. The
company sold its valve lifters business, its 51% stake in the
constant velocity joint business and signed a letter of intent
to dissolve its joint venture with Dana Corp. by purchasing
Dana's stakes in the manual transmissions, joints and seals and
selling back to Dana the axle, propeller shafts and forging
businesses. During the year, DESC also acquired Paneles
Ponderosa, a particle board manufacturer. Using proceeds from
divestitures and internally generated cash, DESC reduced
consolidated debt to US$625 million at March 31, 2006 from
US$717 million at Dec. 31, 2004. During 2005, the company also
extended its debt maturity profile with the refinancing of debt
maturities due 2006 and 2007 totaling US$109 million with peso-
denominated bonds and a syndicated credit facility. At March
31, 2006 only 9%, or US$56 million of total debt is due in the
short-term debt. The balance of cash and marketable securities
reached approximately US$50 million.
The ratings also consider the company's diversified revenue
stream, hard currency generation (with 46% of revenues during
2005 earned from direct and indirect exports and generated by
subsidiaries located outside of Mexico), and joint ventures and
strategic alliances with international industry leaders.
DESC is one of Mexico's largest industrial conglomerates, with
operations in the automotive parts, chemicals, food and real
state businesses. In 2005, DESC had total revenues of US$2.2
billion, EBITDA of US$199 million and exports of US$1.02
billion.
EMPRESAS ICA: ICA Flour Inks Platform Building Pact with PEMEX
--------------------------------------------------------------
ICA Fluor, the industrial engineering company jointly owned by
Fluor Corporation and Empresas ICA Sociedad Controladora, signed
a contract for the fabrication of two sleek and lightweight
offshore platforms, named May D and Sinan NE, to be installed in
the Gulf of Mexico. The US$24 million contract was awarded by
PEMEX Exploration and Production to the ICA Fluor subsidiary
Industria del Hierro, which is dedicated to the fabrication of
modules and offshore platforms.
The contract is a 198-day unit price project that involves:
-- engineering,
-- procurement,
-- construction,
-- load out, and
-- seabed fastening.
Scheduled completion is November 2006. These sleek and
lightweight platforms, with a total weight of approximately
1,600 tons, will be fabricated at Industria del Hierro's Mata
Redonda yard in Veracruz State, Mexico.
These two structures will help increase oil production in
PEMEX's Southwest Region fields in the Gulf of Mexico, which
will replace the declining production from the mature Cantarell
Field.
PEMEX Exploration and Production is a subsidiary of PEMEX,
Mexico's state- owned integrated oil and gas company.
ICA Fluor is the leading industrial engineering company in
Mexico, dedicated to the engineering, procurement, construction
and maintenance of industrial facilities in the oil and gas,
chemical, petrochemical, automotive, electricity, mining and
telecommunication industries.
Empresas ICA -- http://www.ica.com.mx/-- the largest
engineering, construction, and procurement company in Mexico,
was founded in 1947. ICA has completed construction and
engineering projects in 21 countries. ICA's principal business
units include civil construction and industrial construction.
Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.
* * *
Standard & Poor's assigned these ratings to Empresas ICA, with
stable outlook:
-- LT Foreign Issuer Credit B; and
-- LT Local Issuer Credit B.
===============
P A R A G U A Y
===============
* PARAGUAY: Bandes Granting US$10-Mil. Credit Line to Country
-------------------------------------------------------------
Under President Hugo Chavez's Bolivarian Alternative for the
Americas, state bank Banco de Desarrollo Economico y Social de
Venezuela or Bandes will provide Paraguay a US$10 million credit
line, El Universal reports, citing news agency ABN.
"The technical agreement between the two nations was reached and
done already. Now, there is need to wait for Paraguay to refine
internal details, in their own interest," Edgar Hernandez
Behrens, Bandes' chief executive officer, was quoted by El
Universal as saying.
The loan will be used to finance micro, small and medium-sized
businesses in Paraguay.
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* * *
As reported in the Troubled Company Reporter on May 26, 2006,
Moody's Investors Service upgraded these ratings on Paraguay:
-- Long-term foreign currency rating: B3 from Caa1 with
stable outlook.
Moody's assigned this rating:
-- Short-term foreign currency rating: Not Prime.
* * *
Standard & Poor's assigned these ratings on Paraguay:
-- Foreign Currency LT Debt B-
-- Local Currency LT Debt B-
-- Foreign Currency ST Debt C
-- Local Currency ST Debt C
=======
P E R U
=======
REPSOL YPF: Delays Construction of Natural Gas Facility in Peru
---------------------------------------------------------------
Repsol YPF has delayed plans to construct a natural gas plant in
Peru until June 4, the end of the presidential runoff, a senior
company official told Reuters.
Reuters recalls that the Peru LNG consortium -- made up of US
firm Hunt Oil, South Korea's SK Corp. and Repsol -- began
building a liquefied natural gas plant in January to export gas
to Mexico and possibly to the US starting 2010. The US$2
billion project will include:
-- a pipeline from the southern jungle,
-- a plant on Peru's Pacific coast to convert Camisea gas into
liquids, and
-- a port to ship it to Mexico.
Nemesio Fernandez-Cuesta, the exploration and production general
manager of Repsol YPF, was quoted by Reuters as saying, "The
investment in the plant ... is on hold until after Peru's
election and to see if there are any changes (in the political
scenario)."
Reuters relates that Ollanta Humala, a presidential candidate,
has disclosed plans of revising all the accords with foreign
firms that operate in the Camisea gas field. Mr. Fernandez-
Cuesta has said that Repsol will make its decisions if that
candidate wins.
* * *
On June 20, 2005, Moody's Investors Service upgraded the ratings
of Spanish-Argentine oil company Repsol YPF's local subsidiary
YPF S.A. Moody's upgraded YPF's senior unsecured rating to Ba3
from B1 and the unit's domestic currency issuer rating to Baa2
from Baa3.
YPF's foreign currency issuer rating of Caa1 remained unchanged,
as it is constrained by the sovereign ceiling of Argentina.
YPF's Corporate Family Rating (formerly known as the senior
implied rating) is aligned with the foreign currency issuer
rating at Caa1.
SIDERPERU: Gerdau Will Participate in Auction
---------------------------------------------
Gerdau SA, along with US firm Nucor and Spain's Global Steel,
will participate in Siderperu's 56.04% stake auction, a
spokesperson for ProInversion, the investment promotion agency
of Peru, told Business News Americas.
Danilo Munarriz, the investment promotion coordinator for the
Siderperu deal, was quoted by BNamericas as saying, "We are
going to see how interested they are as they present their pre-
qualification documents. The deadline for that is June 16."
Mr. Munarriz informed BNamericas that Duferco -- a European
steelmaker -- has also expressed interest in joining the
auction.
Mr. Munarriz also said that representatives of Luxembourg's
Arcelor have visited Siderperu operations but have not
approached ProInversion, which is in charge of the auction,
BNamericas relates.
According to BNamericas, participants must have a minimum annual
production of 2Mt and at least US$1 billion in equity before
they can bid for the company. The qualified participants will
submit their bids and ProInversion will declare a winner on June
28.
About Gerdau
Headquartered in Porto Alegre, Brazil, Gerdau S.A. --
http://www.gerdau.com.br-- produces and distributes crude steel
and related long rolled products, drawn products, and long
specialty products. In addition to Brazil, Gerdau operates in
Argentina, Canada, Chile, Colombia, Uruguay and the United
States.
Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by
Moody's, BB+ by S&P, and BB- by Fitch.
About Siderperu
Headquartered in Chimbote, Peru, Siderperu SA has steel
production capacity of 400,000 tons per year. The company
reported a net loss of 5.99 million soles (US$1.82 million) in
2005, compared to a net profit of 28.8 million soles in 2004.
=====================
P U E R T O R I C O
=====================
ADELPHIA COMMS: Dispute Ensues Over Bank Lenders Distribution
-------------------------------------------------------------
The Official Committee of Equity Security Holders appointed in
the chapter 11 cases of Adelphia Communications Corporation and
its debtor-affiliates supports the Official Committee of
Unsecured Creditors' request to hold back the distributions to
be made to the prepetition bank lenders under the ACOM Debtors'
Modified Fourth Amended Joint Plan of Reorganization.
Objections
The ACOM Debtors note that pursuant to a Court order approving
three related agreements between the ACOM Debtors and the
Securities Exchange Commission, the Debtors and the Department
of Justice, and the Debtors and Rigas Family, dated
May 26, 2005, the ACOM Debtors are required to oppose the
Creditors Committee's request and are not permitted to propose a
plan that withholds any distribution to the Bank Lenders by
reason of the pendency of the Bank Lender Avoidance Complaint
unless ordered to do so by the Court.
According to Marc Abrams, Esq., at Willkie Farr & Gallagher, in
New York, the Debtors' agreement to oppose any hold back request
was intended to formalize a "handshake" deal between the Bank
Lenders and the Debtors, and to facilitate the Bank Lenders'
cooperation and, ultimately, acceptance of the Plan.
Mr. Abrams notes that while the Creditors Committee's Hold Back
request as framed aims to preserve valuable estate assets,
depending on the rate at which interest would accrue on any held
back distributions, the motion may result in incremental
interest costs of more than US$400,000,000.
Thus, the ACOM Debtors ask the Court to deny the Official
Committee of Unsecured Creditor's request to hold back
distributions to prepetition bank lenders until the Court
determines the rate of interest, if any, required to be paid on
held back distributions and the impact of that interest accrued
on the feasibility of the Plan.
Several parties-in-interest agree that the payment of the bank
claims under the terms of the Plan is required under the
Government Settlement Order and appropriate under the standards
of Rule 9019 of the Federal Rules of Bankruptcy Procedure:
a. various Administrative Agents:
-- Wachovia Bank National Association,
-- Bank of America, N.A.,
-- the Bank of Nova Scotia
-- JPMorgan Chase Bank, N.A.,
-- Citibank, N.A., and
-- Bank of Montreal;
b. these Nominal Agents:
-- ABN AMRO Bank N.V.,
-- Barclays Bank PLC,
-- CIBC, INC.,
-- Merrill Lynch Capital Corp.,
-- PNC Bank, National Association,
-- Societe Generale, S.A.
-- Calyon New York Branch
-- Bank of New York, & Bank of New York Company, Inc.,
and
-- Credit Suisse, Cayman Branch, & the Royal Bank of
Scotland;
c. the Ad Hoc Committee of Non-Agent Secured Lenders;
d. the Toronto-Dominion Bank; and
e. various investment banks, namely:
-- ABN AMRO Inc.,
-- BNY Capital Markets, Inc.,
-- Barclays Capital Inc.,
-- Citigroup Global Markets, Inc.,
-- CIBC World Markets Corp.,
-- Deutsche Bank Securities, Inc.,
-- J.P. Morgan Securities Inc.,
-- Morgan Stanley & Co. Incorporated,
-- PNC Capital Markets, Inc.,
-- Scotia Capital (USA) Inc.,
-- SunTrust Capital Markets, Inc.,
-- TD Securities (USA) LLC, and
-- Banc of America Securities LLC, and its affiliate,
Fleet Securities, Inc.
The Non-Agent Committee asks the Court to reject the Creditors
Committee's request because it attempts to use Section 502(d) to
disallow the Non-Agent Committee members' claims. Under the
plain language of Section 502(d) and established case law, the
Creditors Committee must obtain adjudication on its avoidance
actions before raising Section 502(d).
The Bank of Montreal contends that the Plan represents a
reasonable settlement and compromise of the allowance and
distribution issues.
The Toronto-Dominion Bank relates that pursuant to a prepetition
interest rate swap agreement between TD Bank and Chelsea
Communications, Inc., one of the Debtors, TD Bank holds a
general unsecured claim against Chelsea. Although TD Bank is a
named defendant in the Bank Action Litigation, the litigation do
not specifically allege that TD Bank received any transfers or
property from Chelsea that could be recoverable by Chelsea as a
result of the Bank Action.
Accordingly, TD Bank asks the Court to deny the Creditors
Committee's request to the extent that the request seeks to
disallow or hold back a distribution to TD Bank on account of
the Chelsea Swap Claim. Section 502(d) provides no basis to
disallow or hold back a distribution on TD Bank's Chelsea Swap
Claim when Chelsea has no valid avoidance recovery claim against
TD Bank on account of the Bank Action, Patrick L. Hayden, Esq.,
at McGuireWoods LLP, in New York, argues.
The Investment Banks note that the Plan provides for the payment
in cash of the Bank Lender Fee Claims. As affiliates of the
Bank Lenders, some or all of the Investment Banks are holders of
Bank Claims arising from indemnification to which they are
entitled under the relevant Prepetition Credit Agreements.
Those claims constitute Bank Claims under the Plan. Since the
Committee has not sought relief against the Investment Banks,
the references in its request to the treatment of Bank Claims
should not be construed to apply to Bank Claims held by the
Investment Banks.
However, in an abundance of caution to the extent the Creditors
Committee's request could be construed to affect Bank Claims
held by the Investment Banks, the Investment Banks ask the Court
to deny the Creditors Committee's request.
Plaintiffs Slam Investment Banks' Response
The putative class action plaintiffs in a lawsuit pending before
the United States District Court for the Southern District of
New York captioned In re Adelphia Communications Corp.
Securities & Derivative Litigation, 03 MD 1529(LLM), believes it
would be wrong to uphold or consider the response of the various
investments banks in connection with the Creditors' Committee's
request to hold back distribution.
As previously reported, the Investment Banks assert that as
"affiliates of the Banks" they are "holders of Bank Claims
arising from indemnification to which they are entitled under
the relevant Prepetition Credit Agreements."
The Plaintiffs tell Judge Gerber that they are not quite sure
exactly what point the Investment Banks are trying to make.
"If they are saying that simply because they may be affiliates
of the Banks, the Prepetition Credit Agreements entitle them to
indemnification without regard to whether the underlying claims
relate to those agreements, the [Plaintiffs] disagree and submit
there is no principled basis for the position. And if they are
saying that as holders of Bank Claims they are entitled to
indemnification even as to claims arising out of their
underwriting activities, there is similarly no merit to the
argument," John H. Drucker, Esq., at Cole, Schotz, Meisel,
Forman & Leonard, P.A., in New York, argues.
The Class Action Plaintiffs never understood that the securities
law claims they assert against the Investment Banks in the
Securities Class Action relate to the Creditors Committee's Hold
Back Motion and do not believe there is any credible, good faith
argument that those claims could give rise to "Bank Claims", Mr.
Drucker explains.
Mr. Drucker informs the Court that if the Investment Banks push
the issue in connection with the Hold Back Motion despite the
transparent lack of merit to any argument that claims relating
to underwriting activities are Bank Claims, it could materially
impact the third-party release issue under the ACOM Debtors'
Plan of Reorganization. This is because the Debtors would no
doubt claim that if the Bank Claims included underwriting claims
and if those claims were indemnifiable, the Debtors' exposure to
the Banks might be increased in amounts to create confirmation
issues, Mr. Drucker says.
Creditors Committee Insists
The Creditors Committee insists that:
(a) the Bank Lenders' entitlement to receive distributions
on the Effective Date has not been "settled" because:
-- the Government Settlement does not assure that the
Bank Lenders will receive distributions on the
Effective Date; and
-- the ACOM Debtors' Plan of Reorganization does not
"settle" the Bank Lenders' entitlement to Effective
Date distribution;
(b) Section 502(d) requires the Hold Back of the Bank
Lenders' distributions; and
(c) as a matter of law, the Bank Claims are not entitled to
interest at the contract rate after the Effective Date.
Based in Coudersport, Pa., Adelphia Communications Corporation
-- http://www.adelphia.com/-- is the fifth-largest cable
television company in the country. Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks. The Company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002. Those cases are jointly
administered under case number 02-41729. Willkie Farr &
Gallagher represents the ACOM Debtors. PricewaterhouseCoopers
serves as the Debtors' financial advisor. Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.
(Adelphia Bankruptcy News, Issue No. 134; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
ADELPHIA COM: TCR Sports Wants FCC to Condition Sale to Comcast
---------------------------------------------------------------
David C. Frederick, Esq., at Kellogg, Huber, Hansen, Todd, Evans
& Figel, P.L.L.C., in Washington, D.C., representing TCR Sports
Broadcasting Holding, L.L.P., tells the Federal Communications
Commission that the sale of substantially all of Adelphia
Communications Corporation's assets to Time Warner, Inc., and
Comcast Corporation should not proceed without significant
conditions placed on it.
In a letter dated May 16, 2006, Mr. Frederick reminded the FCC
that TCR Sports argued that Comcast had "improperly
[discriminated] against TCR in an effort to undo TCR's agreement
with [Major League Baseball] to obtain the broadcast rights for
the [Washington Nationals baseball team games] for Comcast's
wholly owned subsidiary." TCR Sports further argued that the
discrimination reflected not only Comcast's effort to favor its
own affiliate but also its desire to extend its monopoly
position in the multi-channel video programming distributor
market.
According to the Associated Press, Comcast is refusing to carry
Mid-Atlantic Sports Network, the registered trade name of TCR
Sports, because of a dispute with Peter Angelos arising from his
plans to move Baltimore Orioles baseball team games telecasts to
MASN after its deal with Comcast expires.
Mr. Angelos, the owner of the Baltimore Orioles, controls MASN.
Mr. Frederick argues that Comcast's proposed acquisition of ACOM
would only increase Comcast's incentive and ability to carry out
those program carriage discriminations.
Based on a letter dated April 6, 2006, from Comcast's President,
Stephen B. Burke, to MLB Commissioner Allah H. Selig, Mr.
Frederick notes that Comcast has expressly proposed to MLB that:
-- the 2005 agreement between the Baltimore Orioles baseball
team and MLB be "terminate[d]";
-- the Nationals receive local television rights contrary to
that agreement; and
-- Comcast broadcast Nationals' games, presumably via its
affiliated regional sports network, Comcast SportsNet.
Mr. Frederick informs FCC that the demands demonstrate in clear
terms that Comcast's objective is to acquire exclusive access to
valuable regional sports programming, thus, advancing interests
of its affiliated regional sports network while solidifying its
monopoly position in the MVPD market at the same time.
Mr. Frederick also notes that Mr. Burke's letter demonstrates
that Comcast has no legitimate business justification for its
failure to carry TCR Sports and that Comcast's conduct can be
explained only as an unlawful discrimination.
Mr. Frederick also informs the FCC that at a congressional
hearing on April 17, David L. Cohen, Comcast's executive vice
president, emphasized that Comcast's aim was to undo the 2005
agreements between TCR Sports and MLB.
Mr. Frederick also refers the FCC to a letter dated April 17,
2006, from Mr. Cohen to Mr. Angelos in which Mr. Cohen confirms
that Comcast will not agree to carry TCR Sports' programming of
Nationals games unless TCR Sports agrees to abrogate its
March 28, 2005, agreement with MLB.
Mr. Frederick relates that meetings between the officials of TCR
Sports and Comcast resulted in no carriage agreement because
Comcast refused to even discuss the terms of carriage unless TCR
Sports either:
-- gives Comcast equity in the network that produces
Nationals games; or
-- abrogates its agreement with MLB.
Mr. Frederick concludes that the ACOM Sale Transaction will
increase Comcast's incentives and power to use its dominant
positions in both the regional sports programming market in the
mid-Atlantic and the cable distribution network to harm
competing non-affiliated regional sports networks, like TCR
Sports, and rival MVPD distributions.
Accordingly, TCR Sports asks the FCC to amend the terms of
conditions in the event that FCC approves the ACOM Sale
Transaction.
Based in Coudersport, Pa., Adelphia Communications Corporation
-- http://www.adelphia.com/-- is the fifth-largest cable
television company in the country. Adelphia serves customers in
30 states and Puerto Rico, and offers analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks. The Company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002. Those cases are jointly
administered under case number 02-41729. Willkie Farr &
Gallagher represents the ACOM Debtors. PricewaterhouseCoopers
serves as the Debtors' financial advisor. Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.
(Adelphia Bankruptcy News, Issue No. 134; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
DORAL FINANCIAL: Appoints Glen Wakeman as President & CEO
---------------------------------------------------------
Doral Financial Corp. disclosed that its Board of Directors has
appointed Glen Wakeman as President and Chief Operating Officer.
Following the filing of Doral's Annual Report for the year ended
December 31, 2005, which is expected as soon as practicable, Mr.
Wakeman will become Doral Financial Corporation's Chief
Executive Officer and a member of the Board of Directors.
Mr. Wakeman is a 20-year veteran of General Electric Company
with a strong background in global consumer finance. Most
recently, he was Chief Executive Officer of GE's Consumer
Finance Latin America business. This business, which he started
in 1998 for GE, now operates in nine countries and has over
15,000 employees. At GE, Mr. Wakeman was the recipient of GE's
"Heroes of Growth" award for exhibiting excellence in growth
leadership.
With Mr. Wakeman heading up Doral's management, John A. Ward III
will relinquish his management duties and resume his role as
Non-Executive Chairman of the Board, the position to which he
was originally elected in July 2005. Mr. Ward assumed the role
of Doral's interim Chief Executive Officer in August 2005.
Mr. Ward said, "We have been very thorough in our effort to
identify the right individual who can assume the management
leadership at Doral and has the expertise to maximize the
strengths of the Doral franchise for the benefit of customers,
employees and stockholders. We are delighted to have attracted
a GE veteran and executive of the caliber of Glen Wakeman. His
acceptance is a very positive validation of Doral's exceptional
franchise and potential. It marks another important step for
Doral. The financial restatement process is behind us. Our
financial reporting is becoming current. We now have in place
exceptional leadership in financial services and management
expertise with Glen Wakeman."
"John Ward and the entire Doral team have done outstanding work
during a difficult period. I am extremely excited to have the
opportunity to head this organization as we usher in a new era
for Doral," said Mr. Wakeman. "Doral is a leader in financial
services in Puerto Rico and, given its strong brand, products
and market share, is in a position to have attractive long-term
business potential. I look forward to moving my family to
Puerto Rico and immersing myself in the Puerto Rico market. In
the days and weeks ahead, I will make it a point to introduce
myself to Doral's many constituents."
In August 2005, the Doral Board announced plans to undertake a
thorough search for a permanent Chief Executive Officer and a
Chief Financial Officer. In February 2006, Doral completed its
previously announced restatement for the years 2000 through 2004
and in March 2006 appointed Lidio Soriano as Chief Financial
Officer. Earlier this month, Doral reported its results through
the first nine months of 2005 and stated its expectation to file
its Form 10-K for 2005 as soon as practicable.
Mr. Wakeman has lived and worked in the US, UK, Brazil,
Argentina and Mexico. He has served in roles of increasing
responsibility in technology, operations, business development,
general management and regional management. Mr. Wakeman holds a
BS in Economics and Finance from the University of Scranton,
Scranton, PA and an MBA from the University of Chicago.
About Doral Financial
Doral Financial Corporation -- http://www.doralfinancial.com/
-- a financial holding company, is the largest residential
mortgage lender in Puerto Rico, and the parent company of Doral
Bank, a Puerto Rico based commercial bank, Doral Securities, a
Puerto Rico based investment banking and institutional brokerage
firm, Doral Insurance Agency, Inc. and Doral Bank FSB, a federal
savings bank based in New York City.
* * *
As reported in the Troubled Company Reporter on March 27, 2006,
Moody's Investors Service downgraded to B1 from Ba3 the senior
debt ratings of Doral Financial Corporation, and reiterated the
negative rating outlook. Moody's action follows cease and
desist orders placed by banking regulators on Doral and some of
its subsidiaries, including Doral Bank, San Juan, Puerto
Rico. When Moody's last downgraded Doral's debt on Oct. 28,
2005, it issued a negative rating outlook, but noted that any
credit deterioration including regulatory consequences or
liquidity issues could result in a review for possible downgrade
or an outright downgrade.
GLOBAL HOME: Court Okays Conway as Restructuring Consultants
------------------------------------------------------------
Global Home Products, LLC and its debtor-affiliates obtained
permission from the U.S. Bankruptcy Court for the District of
Delaware to employ Conway, Del Genio, Gries & Co., LLC, as
their restructuring consultant, nunc pro tunc to April 10, 2006.
Conway Del Genio will:
a. assist in managing the Debtors' resources in support of
their restructuring and reorganization activities;
b. assist in the preparation of reports, and communications
with the Debtors' lenders and other constituencies;
c. assist in analyzing the liquidity requirements of the
Debtor and its three business units for the fiscal year
ending March 31, 2007, based on the financial projections
prepared by management for that period;
d. assist in developing an operating plan and associated
liquidity needs for the Debtor and its three business
units;
e. assist in connection with the filing of a Chapter 11
proceeding, including business plans and cash flow
forecasts supporting the negotiation of Debtor-in-
possession financing;
f. assist in the subsequent development, proposal,
negotiation, and confirmation of a Plan of Reorganization;
g. assist in establishing necessary operating and reporting
disciplines to operate the business in a Chapter 11
proceeding; and
h. assist in the development and execution of plans to
dispose of non-core assets.
Ronald F. Stengel, a senior managing director at Conway Del
Genio, tells the Court that when the Debtors filed for
bankruptcy, the Firm held a US$77,000 retainer, and a US$105,000
postpetition pro rata portion of the April monthly fee.
Pursuant to an engagement agreement, the Debtors agreed to pay
the Firm a monthly fee of US$150,000, payable in advance each
month.
Mr. Stengel assures the Court that the Firm is disinterested as
that term is defined in Section 101(14) of the Bankruptcy Code.
Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry. The company also designs and markets photo frames,
photo albums and related home decor products. The company and
16 of its affiliates , including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on Apr.
10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis Jones,
Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and Sandra
G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young, Jones &
Weintraub LLP, represent the Debtors. Bruce Buechler, Esq., at
Lowenstein Sandler P.C., represents the Official Committee Of
Unsecured Creditors. When the company filed for protection from
their creditors, they estimated assets between US$50 million and
US$100 million and debts of more than US$100 million.
KMART CORP: Court Says Heaton Claim Motion Is Withdrawn as Moot
---------------------------------------------------------------
The Hon. Susan Pierson Sonderby of the U.S. Bankruptcy Court for
the Northern District of Illinois ruled that Helen Heaton's
request to file claim is "withdrawn as moot."
The Court established June 20, 2003, as Kmart Corporation and
its debtor-affiliates' Bar Date for filing administrative
expense claims. On September 9, Ms. Heaton filed an
administrative expense claim against Kmart Corporation.
According to Bruno Bellucci, III, Esq., at Law Offices of Bruno
Bellucci, III, P.C., in Linwood, New Jersey, the delay was due
to inadvertence, oversight, or excusable neglect. On these
grounds, Ms. Heaton asked the Court to allow her late-filed
administrative expense claim.
Claim Must be Disallowed
David E. Gordon, Esq., at Wilmer Cutler Pickering LLP, in New
York, asserts that while a late claim was indeed filed on
September 9, 2003, Ms. Heaton's request for the allowance of her
late administrative claim was not filed until two and one-half
years had passed.
Mr. Gordon says Ms. Heaton failed to present sufficient facts to
establish that the failures of her counsel and the delay in
filing a late claim request amount to excusable neglect.
Ms. Heaton's counsel admitted that he received communications
and notices mailed directly to him by the Court and from Kmart,
Mr. Gordon continues. Ms. Heaton also received copies of
additional communications mailed directly to her.
According to Mr. Gordon, although Ms. Heaton's counsel was aware
that he needed to obtain relief from the Bankruptcy Court, he
put off filing the request for more than two years.
Mr. Gordon informs the Court that allowance of the late Claim
would be highly prejudicial as Kmart will expend significant
resources to determine the value of the claim and may end up
litigating them.
The Debtors, hence, ask the Court to deny Ms. Heaton's request.
Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam. The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474). Kmart emerged from chapter 11 protection on May 6,
2003. John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom, LLP, represented the retailer in its
restructuring efforts. The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection. Kmart bought Sears, Roebuck &
Co., for $11 billion to create the third-largest U.S. retailer,
behind Wal-Mart and Target, and generate $55 billion in annual
revenues. The waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act expired on Jan. 27, without complaint
by the Department of Justice. (Kmart Bankruptcy News, Issue No.
111; Bankruptcy Creditors' Service, Inc., 215/945-7000)
=============
U R U G U A Y
=============
ADMINISTRACION NACIONAL: Moody's Puts Ba2 Global Currency Rating
----------------------------------------------------------------
Moody's Investors Service assigned a Ba2 global local currency
rating to Administracion Nacional de Combustibles, Alcohol y
Portland -- ANCAP. The rating outlook is stable.
The ratings of ANCAP reflect the application of Moody's rating
methodology for government-related issuers. In accordance with
Moody's GRI rating methodology, ANCAP's Ba2 global local
currency rating reflects the combination of the following
inputs:
-- Baseline credit assessment of 6;
-- The B3 local currency rating and stable rating outlook of
the Uruguayan government;
-- Low dependence; and
-- High government support.
ANCAP's baseline credit assessment of 6 reflects its monopoly
position in refining and wholesale marketing within Uruguay, its
dominant position in most other domestic markets in which it
operates, and its higher operating profit margins when compared
to its global refining company peers. However, the baseline
assessment also considers ANCAP's
-- small size relative to its industry peers,
-- volatile refining margins and cyclical earnings,
-- reliance on a single refinery,
-- exposure to economic and political instability,
-- dependence on crude oil and natural gas imports, and
-- the possibility of increased competition in Southern Cone
refined product markets over the longer term.
In addition, the company's tax burden and dividend payout are
high relative to its business risk.
Low dependence reflects the fact that ANCAP finances itself
independently from the government, as well as the company's
success in continuing to service its debt obligations without
extraordinary government support during Uruguay's financial
crisis in 2002.
High support reflects ANCAP's 100% ownership by the government
and the company's strategic importance to Uruguay's economy and
to its national security.
ANCAP's B1 foreign currency issuer rating reflects both the
company's Ba2 global local currency rating and the degree of
sovereign interference anticipated in times of stress.
The outlook for ANCAP's baseline credit assessment, Ba2 global
local currency rating, and B1 foreign currency issuer rating is
stable. While a rating upgrade is not likely at this time,
increased scale and diversification in tandem with conservative
leverage (debt/complexity barrels below US$300) could be
positive for ANCAP's baseline credit assessment and global local
currency rating. On the other hand, materially increased
leverage (debt/complexity barrels above US$550) or a reduction
in the government's support of ANCAP could pressure ANCAP's
baseline credit assessment, global local currency rating, and
foreign currency issuer rating.
ANCAP is Uruguay's state-owned oil, alcohol and cement company.
It is headquartered in Montevideo, Uruguay.
BANKBOSTON (URUGUAY): Itau to Treat Buy as One with Chile Unit
--------------------------------------------------------------
The acquisition of BankBoston (Uruguay) and BankBoston (Chile)
will be treated by Banco Itau Holding Financeira as a single
purchase, an Itau spokesperson informed Business News Americas.
BNamericas recalls that Itau and Bank of America aka BofA
reached an agreement earlier in May regarding the purchase of
BankBoston Brazil. Itau was also given exclusive rights to buy
BankBoston operations in Chile and Uruguay.
According to the Chilean press, Itau said it will purchase the
BankBoston Chile -- a unit that focuses on the corporate and
higher-income segments and commands 2.5% loan market share --
and expand its operations into fund management. Itau plans to
change the brand.
BNamericas relates that BankBoston Uruguay, on the other hand,
ranks third in its market with UYU20.5 billion assets and
UYU17.6 billion loans at end the end of April.
Itau is given until Aug. 1, 2006, to complete the purchases,
BNamericas reports.
About BankBoston
BankBoston is one of the 10 largest banks in Argentina in terms
of assets, deposits and loans and it ranks among the top five
private banks. It operates through 89 branches and has assets
of US$2.5 billion.
About Banco Itau
Banco Itau currently has 51 thousand employees serving more than
16 million clients, through its network of 2,391 branches and 22
thousand ATMs.
* * *
As reported in the Troubled Company Reporter on March 9, 2006,
Standard & Poor's Ratings Services assigned a 'BB' currency
credit rating on Banco Itau S.A.
HSBC BANK (URUGUAY): Fitch Revises Ratings Outlook to Positive
--------------------------------------------------------------
Fitch Ratings revised HSBC Bank (Uruguay) S.A.'s Rating Outlook
on the foreign and local currency Issuer Default Rating to
Positive from Stable after taking the same action on the
sovereign IDR.
The bank's ratings are as follows:
-- Long-term foreign currency IDR 'BB-';
-- Long-term local currency IDR 'BB+';
-- Support rating '3'; and
-- National long-term rating 'AAA(uy)' with Stable Outlook.
The international ratings of HSBC Bank (Uruguay) are constrained
by those of the sovereign. The bank's foreign currency IDR is
at the country ceiling, while its local currency IDR is two
notches above that of the Uruguayan sovereign. These ratings,
along with the bank's support rating, reflect the bank's solid
ownership structure and its shareholder's strong commitment to
the bank.
HSBC Bank (Uruguay) offers personal banking services as well as
commercial banking services to important clients of the HSBC
Group. Bank (Uruguay) is fully owned by HSBC Latin America
Holdings (UK) Limited, which in turn is a subsidiary of HSBC
Holdings Plc.
* URUGUAY: Electricity Crisis Results to Usage Restrictions
-----------------------------------------------------------
The government of Uruguay decided to enforce restrictions on
electricity usage due to the energy crisis it is experiencing,
official sources told Prensa Latina.
According to Prensa Latina, the sources said that the government
decided to punish those breaking established regulations with
suspension of service.
Prensa Latina relates that Uruguay implemented these measures to
complement the April 28 Energy Saving Plan:
-- that public and private entities may only use half their
elevators and escalators during working hours, and that
-- neon advertising is only authorized for health and police
centers.
Prensa Latina reports that the lack of rainfall led to the
crisis, forcing Uruguay to buy electric energy from Brazil and
Argentina. The country has exhausted the US$150 million annual
budget of UTE energy enterprise, as stated by to official
reports.
* * *
As reported in the Troubled Company Reporter on May 26, 2006,
Fitch Ratings revised the Outlooks on the Oriental Republic
of Uruguay's Sovereign ratings to Positive from Stable. The
long-term foreign currency Issuer Default Rating is affirmed at
'B+', and the long-term local currency IDR is affirmed at 'BB-'.
The Short-term IDR is affirmed at 'B' and the Country Ceiling is
affirmed at 'BB-'.
* * *
Moody's upgraded Uruguay's long-term foreign currency rating to
B1 from B3 under the revised foreign currency ceilings on
May 24, 2006.
=================
V E N E Z U E L A
=================
* VENEZUELA: Bandes Granting US$10M Loan to Paraguay Under ALBA
---------------------------------------------------------------
Under President Hugo Chavez's Bolivarian Alternative for the
Americas, state bank Banco de Desarrollo Economico y Social de
Venezuela or Bandes will provide Paraguay a US$10 million credit
line, El Universal reports, citing news agency ABN.
"The technical agreement between the two nations was reached and
done already. Now, there is need to wait for Paraguay to refine
internal details, in their own interest," Edgar Hernandez
Behrens, Bandes' chief executive officer, was quoted by El
Universal as saying.
The loan will be used to finance micro, small and medium-sized
businesses in Paraguay.
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* * *
As reported in the Troubled Company Reporter on May 26, 2006,
Moody's Investors Service upgraded these ratings on Paraguay:
-- Long-term foreign currency rating: B3 from Caa1 with
stable outlook.
Moody's assigned this rating:
-- Short-term foreign currency rating: Not Prime.
* * *
Standard & Poor's assigned these ratings on Paraguay:
-- Foreign Currency LT Debt B-
-- Local Currency LT Debt B-
-- Foreign Currency ST Debt C
-- Local Currency ST Debt C
* VENEZUELA: Inks Contract on Oil Refinement with Ecuador
---------------------------------------------------------
Venezuela's President Hugo Chavez signed a series of energy
cooperation accords -- including refining Ecuadorian crude in
Venezuela -- with President Alfredo Palacio, his Ecuadorian
counterpart, BBC News reports.
Venezuela will refine up to 100,000 barrels of Ecuador's crude
oil in Venezuela daily, according to BBC News. It will result
to an annual savings of more than US$300 million in Ecuador's
part.
Correspondents say that the accord is likely to raise concerns
in the US over the growing regional influence of President
Chavez, who has been very vocal of his abhorrence to the US.
However, the foreign ministry of Ecuador said in a statement
that the Venezuelan president's visit is much more technical
than political. The statement said they were trying to build
integration on the continent and not form any kind of anti-US
access.
As reported in the Troubled Company Reporter on May 31, 2006,
Ecuador declined an invitation by President Chavez to join in an
energy alliance that will challenge the economic influence of
Washington in the Latin American region.
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* * *
Fitch Ratings assigned these ratings on Ecuador:
Rating Rating Date
------ -----------
Country Ceiling B- Aug. 29, 2005
Long Term IDR B- Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
* VENEZUELA: May Face Heavy Losses After Leaving CAN & G-3
----------------------------------------------------------
Venezuela may be faced with a US$6 billion loss as a result of
its withdrawals from the Andean Community of Nations -- CAN --
and the Group of Three -- G3, El Universal quoted Venezuelan
Exporters' Association's chair Francisco Mendoza.
"We regret the potential loss of markets attained after 37 years
with CAN, in addition to a more competitive market and losing
opportunities to negotiate a Free Trade Agreement with Europe,
the United States and Central America. Venezuela is being
technically isolated from an integrated trade world," Mr.
Mendoza told El Universal.
As for employment "only in the Andean Community, reference is
made to approximately 300,000 direct and indirect jobs," El
Universal relates.
Mr. Mendoza explained to El Universal that the losses won't be
sudden since leaving CAN tariff system will be effective in a
five-year period, while the in the G-3 group, dephasing takes
180 days.
Venezuela withdrew from the two trade blocks because of the
other members' free-trade deals with the United States.
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
***********
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
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Copyright 2006. All rights reserved. ISSN 1529-2746.
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