/raid1/www/Hosts/bankrupt/TCRLA_Public/060614.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, June 14, 2006, Vol. 7, Issue 117
Headlines
A N T I G U A & B A R B U D A
PETROLEOS DE VENEZUELA: Mulls Building Fuel Storage in Antigua
A R G E N T I N A
ABDALA AUTO: Trustee Won't Validate Claims After August 7
ALIMENTOS ARTESANALES: Trustee Stops Validating Claims on Aug. 8
CAMISUR SA: Sets Aug. 24 Deadline for Verification of Claims
COELHO CENTRO: Deadline for Verification of Claims Is on Aug. 31
DACMI SRL: Creditors Have Until Aug. 10 to File Proofs of Claim
FRIGORIFICO CAVILLA: Claims Verification Will End on Aug. 30
NS COMERCIAL: Trustee Validates Creditors' Claims Until Aug. 25
SALTA HYDROCARBON: S&P Ups Rating on US$234MM 11.5% Notes to B
S.C. HOLDING: Creditors Must File Proofs of Claim by Aug. 22
SERVI GUARD: Moves Claims Verification Deadline to Aug. 23
B E L I Z E
PETROLEOS DE VENEZUELA: Will Supply Oil to Belize
B E R M U D A
GLOBAL CROSSING: Secures Telecom Contract for US Gen. Services
SEA CONTAINERS: To Sell Silja Ferry to Tallink for US$594 Mil.
B O L I V I A
BANCO BISA: Liabilities Increase to US$474 Mil. in First Quarter
BANCO MERCANTIL: Posts US$1.04 Mil. First Quarter 2006 Profits
BANCO NACIONAL: Posts US$2.18 Mil. First Quarter 2006 Profits
* BOLIVIA: Mulling Natural Gas Pipeline Venture with Paraguay
B R A Z I L
AXLETECH INTERNATIONAL: Moody's Confirms Ratings After Review
BANCO BRADESCO: Fitch Upgrades Individual Rating to B/C from C
BUCKEYE TECHNOLOGIES: David Ferraro Retiring in September
GERDAU SA: Subsidiary Closes Sheffield Steel Acquisition
UNIAO DE BANCOS: Fitch Affirms BB- LT Foreign Currency Rating
VARIG: New York Court Extends Injunction to June 21
C A Y M A N I S L A N D S
FIDELIS INVESTMENTS: Schedules Final General Meeting for July 12
FRANKLIN CLO: Schedules Final Shareholders Meeting on June 30
GERALDINE AIRCRAFT: Holding Final Shareholders Meeting on July 7
GIT FUND: Final Shareholders Meeting Scheduled for June 30
IVY ENHANCED: Final Shareholders Meeting Scheduled for June 30
NOCH OFFSHORE: Final Shareholders Meeting Set for June 30
SCALA ADVISORS: Final Shareholders Meeting Scheduled for June 30
C O L O M B I A
BANCOLOMBIA: Reports COP285.81 Billion of Net Income at May 31
C O S T A R I C A
BANCO BANEX: Posts CRC2.10 Bil. First Quarter 2006 Earnings
* COSTA RICA: Fuel & Electricity Price Hike Hasten Inflation
C U B A
* CUBA: Will Host 14th Expocaribe International Fair
* CUBA: Rejects Economic Pacts That Intrude on Domestic Affairs
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Free Trade with US Won't Start in July
E C U A D O R
* ECUADOR: Four Banks Offer Aid in Renewing Mobile Accords
E L S A L V A D O R
* EL SALVADOR: Free Trade Pact Boosts Sales to US by 15%
J A M A I C A
KAISER ALUMINUM: Court Approves US$67.2 Mil. Hartford Settlement
KAISER ALUMINUM: Inks 2nd Amendment to Replacement DIP Financing
SUGAR COMPANY: Gets Ten Bids from Int'l Firms for Five Plants
SUGAR COMPANY: Government Tries to Keep Business Running
M E X I C O
GENERAL MOTORS: Moody's Says Expanded Buyout Is Constructive
GRUPO IUSACELL: Supreme Court Disallows Special Tax Exemption
J.L. FRENCH: Court Approves Miller Buckfire as Fin'l Advisor
KANSAS CITY SOUTHERN: Will Launch New Daily Intermodal Service
MERIDIAN AUTOMOTIVE: Panel Questions Validity of Lenders' Lien
MERIDIAN AUTOMOTIVE: Union Fights for Locked-Out Workers' Jobs
P A N A M A
* PANAMA: Will Hold Talks with Venezuela on Oil Supply
P A R A G U A Y
* PARAGUAY: Considers Natural Gas Pipeline Venture with Bolivia
P E R U
* PERU: Gran Tierra to Explore & Exploit Block 122 for Gas
P U E R T O R I C O
ADELPHIA COMMS: Files 4th Amended Joint Plan of Reorganization
ADELPHIA COMMS: Trade Claims Panel Plan Support Pact Draws Flak
MUSICLAND HOLDING: Committee Has Until July 3 to File Claims
T R I N I D A D & T O B A G O
BWIA WEST: Four Flights Cancelled After Workers Fail to Show Up
MIRANT CORP: Plans to Pay US$4 Million More to Seven Firms
MIRANT CORP: Settles Southern Maryland Electric FFC Pact Dispute
MIRANT CORP: Withdraws Proposal to Purchase NRG Energy
U R U G U A Y
* URUGUAY: Senate Rejects Free Trade Accord with United States
V E N E Z U E L A
CITGO: Valero No Longer Interested in Buying Houston Refinery
* VENEZUELA: Will Hold Talks with Panama for Sale of Oil
- - - - -
=================================
A N T I G U A & B A R B U D A
=================================
PETROLEOS DE VENEZUELA: Mulls Building Fuel Storage in Antigua
--------------------------------------------------------------
Petroleos de Venezuela SA or PDVSA said in a statement that it's
considering construction of building fuel storage facilities in
Antigua and Barbuda.
PDVSA representatives have discussed a proposal for a strategic
storage and distribution point with officials from Antigua and
Barbuda, the statement said.
The proposal would undergo analysis during a June 14 meeting of
Caribbean leaders in Dominica, Alejandro Granado -- the head of
PDV Caribe, an affiliate of PDVSA responsible for the
Petrocaribe program -- told the Associated Press.
Petroleos de Venezuela SA is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and
coal industry, as well as planning, coordinating, supervising
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
* * *
On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'. The rating of PDVSA's export receivable
future flow securitization, PDVSA Finance Ltd, was also upgraded
to 'BB+' from 'BB'. In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating. Fitch said the Rating Outlook
is Stable. Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.
=================
A R G E N T I N A
=================
ABDALA AUTO: Trustee Won't Validate Claims After August 7
---------------------------------------------------------
Court-appointed trustee Rodolfo Daniel Venegas won't validate
after August 7, 2006, creditors' proofs of claim against Abdala
Auto S.A., a company undergoing reorganization, Infobae reports.
Creditors whose claims won't undergo verification will be
disqualified from receiving any distribution or payment from the
company.
The verified claims will be used as basis in creating individual
reports that are due in court on Sept. 19, 2006. A general
report will follow on Nov. 1, 2006.
An informative assembly is scheduled on May 17, 2007, wherein
the creditors can vote on a settlement plan that Abdala Auto
will propose.
The debtor can be reached at:
Abdala Auto S.A.
Lavalle 1382
Buenos Aires, Argentina
The trustee can be reached at:
Rodolfo Daniel Venegas
Avenida Corrientes 880
Buenos Aires, Argentina
ALIMENTOS ARTESANALES: Trustee Stops Validating Claims on Aug. 8
----------------------------------------------------------------
The court-appointed trustee, Juan Ignacio Estevez, for the
bankruptcy case of Alimentos Artesanales S.A. will stop
validating creditors' proofs of claim on Aug. 8, 2006.
Mr. Estevez will present the validated claims in court as
individual reports on Sept. 20, 2006. The trustee will also
submit a general report on the case on Nov. 2, 2006.
A Buenos Aires court handles the company's bankruptcy case.
The trustee can be reached at:
Juan Ignacio Estevez
Uruguay 750
Buenos Aires, Argentina
CAMISUR SA: Sets Aug. 24 Deadline for Verification of Claims
------------------------------------------------------------
The validation of creditors' proofs of claim against Camisur
S.A., a company under reorganization, will end on
Aug. 24, 2006, Argentine daily La Nacion reports.
Buenos Aires' Court No. 4 approved the company's petition for
reorganization filed after the company defaulted on its debt
payments on Nov. 30, 2004. Maria Mercedes Porolli was appointed
as trustee.
An informative assembly will be held on June 14, 2007.
Creditors will vote to ratify the completed settlement plan
during the assembly.
The city's Clerk No. 8 assists the court on the case.
The debtor can be reached at:
Camisur S.A.
Avenida Pueyrredon 460
Buenos Aires, Argentina
The trustee can be reached at:
Maria Mercedes Porolli
tucuman 1484
Buenos Aires, Argentina
COELHO CENTRO: Deadline for Verification of Claims Is on Aug. 31
----------------------------------------------------------------
Anibal Carrillo, the court-appointed trustee for the bankruptcy
case of Coelho Centro S.A. will verify creditors' claims until
Aug. 31, 2006.
La Nacion relates that Buenos Aires' Court No. 11 declared
Coelho Centro bankrupt at the behest of Mario Sandagorda, whom
the company owes US$30,508.50.
Clerk No. 22 assists the court in this case.
The debtor can be reached at:
Coelho Centro S.A.
Tucuman 3647
Buenos Aires, Argentina
The trustee can be reached at:
Anibal Carrillo
Juncal 615
Buenos Aires, Argentina
DACMI SRL: Creditors Have Until Aug. 10 to File Proofs of Claim
---------------------------------------------------------------
Creditors of bankrupt company Dacmi S.R.L. are required to
present proofs of their claim to Analia Calvo, the court-
appointed trustee, by June 16, 2006, La Nacion reports.
Creditors who fail to submit the required documents will not
qualify for any post-liquidation distributions.
Buenos Aires' Court No. 11 declared Dacmi bankrupt at the
request of Karina Varela, whom the company owes US$3,954.31.
Clerk No. 22 assists the court on the case.
The debtor can be reached at:
Dacmi S.R.L.
Riobamba 436
Buenos Aires, Argentina
The trustee can be reached at:
Analia Calvo
Montevideo 598
Buenos Aires, Argentina
FRIGORIFICO CAVILLA: Claims Verification Will End on Aug. 30
------------------------------------------------------------
Eduardo Salomon Zalutzky, the court-appointed trustee for the
bankruptcy case of Frigorifico Cavilla S.R.L. will stop
verifying creditors' proofs of claim on Aug. 30, 2006.
La Nacion relates that Buenos Aires' Court No. 7 declared
Frigorifico bankrupt at the request of Jorge Alberto Arrua, whom
the company owes US$5,667.44.
Clerk No. 13 assists the court in this case.
The debtor can be reached at:
Frigorifico Cavilla S.R.L.
Catamarca 1451
Buenos Aires, Argentina
The trustee can be reached at:
Eduardo Salomon Zalutzky
Lavalle 1523
Buenos Aires, Argentina
NS COMERCIAL: Trustee Validates Creditors' Claims Until Aug. 25
---------------------------------------------------------------
Mauricio Rosenblum, the trustee appointed by a Buenos Aires
court for the bankruptcy proceeding of NS Comercial Group S.A.,
will validate creditors' proofs of claim until Aug. 25, 2006.
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 Oct. 9, 2006. The submission of the general report on
the case will follow on Nov. 23, 2006.
The trustee can be reached at:
Mauricio Rosenblum
Bartolome Mitre 2296
Buenos Aires, Argentina
SALTA HYDROCARBON: S&P Ups Rating on US$234MM 11.5% Notes to B
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on Salta
Hydrocarbon Royalty Trust's US$234-million 11.5% targeted
amortization notes due 2015 to 'B' from 'CCC-' and removed it
from CreditWatch with positive implications.
The 'B' rating reflects both the improved performance of the
underlying assets and Standard & Poor's reassessment of the
province of Salta's oil and gas industry risk, on which the
transaction's cash flow is dependent. The transaction is a
securitization of 80% of all royalty payments due to the
Argentine province of Salta from a group of 17 private companies
operating oil and gas concessions in the province. The
transaction has an insurance policy protecting the issuer from
the risk that it cannot transfer or convert currency needed for
interest payments. The policy protects the issuer against these
risks for 31 months and a liquidity reserve fund protects it for
an additional six months.
Salta's hydrocarbon industry performance analysis focuses on the
ability of the industry to produce royalties in an amount
sufficient to meet the obligations arising from the current
transaction. Salta's royalty generation is dependant on both
the production and the price of the hydrocarbons, especially
natural gas, it produces. Even though the basin's production is
lower than the original estimations as a result of low
investments, crude oil prices are considerably higher (despite
export duties), and natural gas prices, which dropped in dollar
terms in 2002, are slowly and slightly recovering. These higher
prices have partially offset the impact of lower production.
Standard & Poor's considers that the long-term performance of
Salta's industry and its ability to generate royalties will be
heavily influenced by the institutional environment in the
country, which could foster investments in:
-- new drilling,
-- exploration, and
-- development of new fields,
therefore, reversing the current decreasing trend in production
and the impact of taxes (such as export duties) that could
affect realization prices. Standard & Poor's continues to
analyze natural gas production because, given the geological
complexity of the basin, hydrocarbon production is heavily
leveraged toward natural gas (approximately 6 to 1 for crude
oil). Standard & Poor's assessment of Salta's hydrocarbon
industry is influenced by high regulatory and institutional
challenges that prevent the sector from benefiting from
unusually high crude oil prices and discourages exploration and
development activity in the fields. Absent significant changes
in regulations and incentives for investments, we expect
production in the province to continue declining in the coming
years. Performance is likely to be below our original base case
assumptions for the transaction. Disappointing drilling and
exploration activity and the persistence of low prices for
natural gas will challenge the economics of the deal/basin.
Despite the Argentine economic crisis and the pesification of
the oil and gas tariffs, Salta Trust has performed adequately
for the past two years. After being negatively affected in
early 2002, the transaction's cash flows have recovered at a
solid pace. After being unable to make a targeted principal
payment in December 2002, the transaction has been current with
all interest payments, and even resumed partial principal
payments in 2003. The rating assigned to the transaction
addresses the timely payment of interest and the ultimate
repayment of principal. Consequently, because all interest
payments have made since the issuance date, no events of default
have been triggered. As of the quarter ending in March 2006,
Salta Trust has paid interest and principal totaling US$34.01
million and has an outstanding principal balance of US$199.9
million. Although principal payments have not followed the
original theoretical schedule, Salta Trust has been increasing
principal amortization payments for the past year as a result of
improving collateral performance.
S.C. HOLDING: Creditors Must File Proofs of Claim by Aug. 22
------------------------------------------------------------
Creditors of bankrupt company S.C. Holding S.A. are required to
present proofs of their claims to Ruben Hugo Faure, the court-
appointed trustee, by Aug. 22, 2006, La Nacion reports.
Creditors who fail to submit the required documents will not
qualify for any post-liquidation distributions.
Buenos Aires' Court No. 9 declared S.C. Holding bankrupt at the
behest of Banco del Rio de la Plata S.A., which the company owes
US$1,197,003.29.
Clerk No. 18 assists the court on the case.
The debtor can be reached at:
S.C. Holding S.A.
Libertad 844
Buenos Aires, Argentina
The trustee can be reached at:
Ruben Hugo Faure
Rivadavia 117
Buenos Aires, Argentina
SERVI GUARD: Moves Claims Verification Deadline to Aug. 23
----------------------------------------------------------
Buenos Aires' Court No. 11 moved the deadline for the
verification of proofs of claim to Aug. 23, 2006, from
May 2, 2006. Analia Fernanda Calvo, the court-appointed
trustee, will validate the claims.
The submission of the individual reports on the verified claims
is scheduled for Oct. 4, 2006, and the general report will
follow on Nov. 16, 2006.
Court No. 11 declared Servi Guard bankrupt at the request of
Liberty ART, for nonpayment of US$15,546.29.
Clerk No. 22 assists the court in this case.
The debtor can be reached at:
Servi Guard S.R.L.
Avenida Juan B. Justo 365
Buenos Aires, Argentina
The trustee can be reached at:
Analia Fernanda Calvo
Rodriguez Pena 797
Buenos Aires, Argentina
===========
B E L I Z E
===========
PETROLEOS DE VENEZUELA: Will Supply Oil to Belize
-------------------------------------------------
Petroleos de Venezuela aka PDVSA, the state oil firm of
Venezuela, will be supplying oil to Belize, as established by
the Petrocaribe Energy Cooperation Agreement, a company
spokesperson told Prensa Latina.
Prensa Latina reports that PDVSA, through its subsidiary PDV
Caribe, formed with Belize Petroleum and Energy Ltd. the ALBA
Petrocaribe Belize Energy Limited. An agreement was signed
between Alejandro Granado, the head of the PDV Caribe, and Said
Musa -- the prime minister of Belize.
Under the agreement, PDVSA will have 55% participation while
Belize Petroleum will have 45%, Prensa Latina relates. About
60% of the payment should be made in 90 days, and the rest over
23 years, with two years grace period at 1% interest.
Through the signing of the integration agreement, Belize will
avoid increases caused by the costs of mediators, Prensa Latina
reports.
Prensa Latina states that these are included in the exchange for
about 4,000 barrels of oil a day on a monthly average:
-- crude oil supply,
-- refined products, and
-- liquid gas or its equivalent.
Mr. Granado told Prensa Latina, "Construction to store 50,000
barrels and establishment of a solid port infrastructure will
promote such a development."
Belize can produce 2,500 barrels of fossil fuel per day,
allowing the nation to cover 85% of its economic needs, Prensa
Latina relates, citing Mr. Granado.
Petroleos de Venezuela SA aka PDVSA is Venezuela's state oil
company in charge of the development of the petroleum,
petrochemical and coal industry, as well as planning,
coordinating, supervising and controlling the operational
activities of its divisions, both in Venezuela and abroad.
* * *
On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'. The rating of PDVSA's export receivable
future flow securitization, PDVSA Finance Ltd, was also upgraded
to 'BB+' from 'BB'. In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating. Fitch said the Rating Outlook
is Stable. Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.
=============
B E R M U D A
=============
GLOBAL CROSSING: Secures Telecom Contract for US Gen. Services
--------------------------------------------------------------
Global Crossing disclosed that it is one of the multiple
awardees of a contract by the U.S. General Services
Administration or GSA in the Southeast Sunbelt region. Under
the contract, Global Crossing will provide a variety of
telecommunications services to federal agencies based in the
region. GSA's Federal Technology Service in Atlanta awarded
global Crossing's portion of the contract, valued at US$16.43
million.
"We're delighted to be supporting the GSA's mission to increase
government efficiency and provide federal agencies with the
ability to serve the public with fast, reliable and secure
network connections," said John Legere, Global Crossing's chief
executive officer. "As we continue to grow our U.S. government
business, this contract enables us to use our highly flexible
MPLS network to provide IP-centric services to serve the ever-
growing bandwidth needs of GSA and its customers in the
Southeast."
The GSA supplies products and communications for U.S. government
offices to help federal agencies better serve the public by
offering, at best value, superior workplaces, expert solutions,
acquisition services and management policies. In support of the
GSA's mission, Global Crossing will supply enhanced data
transmission services including IP-centric services such as
Internet Protocol Virtual Private Networks and Direct Internet
Access, along with legacy services such as ATM, Frame Relay and
Private Line. The states covered in the GSA's Southeast Sunbelt
region include:
-- Alabama,
-- Florida,
-- Georgia,
-- Kentucky,
-- Mississippi,
-- North Carolina,
-- South Carolina and
-- Tennessee.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunication services 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.
SEA CONTAINERS: To Sell Silja Ferry to Tallink for US$594 Mil.
--------------------------------------------------------------
Sea Containers Ltd. disclosed that it entered into a sale
agreement with AS Tallink Grupp. Under the pact, Sea Containers
will sell its Baltic ferry subsidiary Silja Oy Ab to Tallink for
approximately US$594 million in cash and shares.
The sale of Silja's core business is EUR450 million cash and 5
million ordinary shares in Tallink. The dollar equivalent
values are approximately US$570 million cash and US$24 million
in shares. Tallink's shares are listed on the Tallinn Stock
Exchange and their closing price on June 9, 2006 was EUR3.77 per
share. Sea Containers may not dispose of the shares within 12
months of the sale's completion without Tallink's permission.
The sale of Silja is subject to customary conditions including
the receipt of regulatory approvals from the relevant
competition authorities and corporate approval of Tallink's
shareholders. It is a condition of the contract that the sale
be completed by July 28, 2006. Societe Generale, which advised
Sea Containers on the disposal, indicated that the sale is
expected to be completed on or before that date.
The transaction with Tallink includes six of the eight ships
held for sale by Sea Containers as part of the Silja core
business. These ships generated an EBITDA profit before
depreciation, amortization and non-recurring items of
approximately EUR30 million (dollar equivalent US$37 million) in
2005. During 2005 Silja has been undergoing an intensive
restructuring program, which is expected to lead to EBITDA
improvements over the coming 12 to18 months. The transaction
does not include the fast ferry services from Helsinki, Finland
to Tallinn, Estonia and the two SuperSeaCat fast ferries that
operate on the route. That business will continue to be
operated by Sea Containers on a stand-alone basis. The
transaction also excludes Silja's three 'legacy' vessels that
are not employed on the core routes.
Tallink will continue to operate the business under the Silja
brand and the ships will continue to sail under their current
flags and with their existing officers and crew. Tallink will
ensure that Silja's existing obligations towards the employees,
including pension obligations, are not adversely affected by the
transaction.
Commenting on the sale, Enn Pant, Chairman and CEO of Tallink,
said that as a result of the acquisition Tallink and Silja will
together form the leading shipping company in the Baltic Sea
area, which has been a vision of Tallink for years. "Tallink's
bold and successful growth strategy is boosted by Silja Line's
long history, valuable brand and outstanding professionals.
This transaction is firmly founded in our conviction that
clients, employees as well as shareholders will benefit from the
integration of these two shipping companies."
Bob MacKenzie, Chief Executive Officer of Sea Containers, added:
"We updated the market on March 24, 2006 on the process of
selling the core of the Silja fleet and we believe that the
price we have negotiated is a fair one. The sale of Silja is a
vital part of our efforts to reduce substantially the overall
level of Sea Containers' debt. As a result of the transaction,
approximately US$510 million of related bank debt will be
repaid."
As a result of the above transaction, two of the non-core Silja
'legacy' fleet, Opera and Finnjet, which were not included in
the transaction, will become free of bank debt and Sea
Containers will continue to seek to dispose of them. Sea
Containers has separately completed the sale of the third legacy
ship, the Walrus, for a consideration of US$21 million, paying
all related bank debt of US$21 million.
Sea Containers, Ltd. -- http://www.seacontainers.com-- is a
Bermuda registered company with regional operating offices in
London, Genoa, New York City, Rio de Janeiro, Singapore and
Sydney. The company provides passenger and freight transport
and marine container leasing. The company operates in four
segments: Ferry, Rail, Container, and Leisure.
As reported on May 4, 2006, Standard & Poor's Ratings Services
lowered its ratings on Sea Containers Ltd. including lowering
the corporate credit rating to 'CCC-' from 'CCC+'. All ratings
remain on CreditWatch with negative implications; ratings were
initially placed on CreditWatch on Aug. 25, 2005, and lowered on
Feb. 16, 2006, and again on March 24, 2006.
The rating action followed Sea Containers announcement that it
is continuing to evaluate a range of strategic and financial
alternatives, including the "appropriate level of debt capacity,
with the intent to engage the public note holders and other
stakeholders."
=============
B O L I V I A
=============
BANCO BISA: Liabilities Increase to US$474 Mil. in First Quarter
----------------------------------------------------------------
Bolivia's Banco Bisa posted liabilities of US$474 million in the
first quarter of 2006, Business News Americas reports.
BNamericas relates that liabilities in this year's quarter was
8% higher than in the same quarter last year.
However, Banco Bisa posted profits of US$1.07 million in the
first quarter of 2006, according to data provided by local
banking regulator, Superintendencia de Bancos y Entidades
Financieras de Bolivia or SBEF.
BNamericas recalls that the bank incurred US$2.22 million losses
in the first quarter of 2005.
According to BNamericas, the bank's financial income increased
17% to US$9.04 million. Financial expenses increased 11% to
US$3.53 million. Administrative expenses rose 15% to US$5.11
million. Deposits increased 16% to US$357 million.
Banco Bisa's assets increased 7% to US$551.56 million in the
first quarter of 2006. Performing loans dropped 2% to US$307
million, BNamericas reports.
* * *
As reported in the Troubled Company Reporter on April 6, 2006,
Moody's Investors Service assigned these ratings to Banco Bisa:
-- Bank financial strength rating: E -- Stable outlook,
-- Long-Term Local Currency Deposit Rating: B2 -- Stable
outlook,
-- Long-Term Foreign Currency Deposit Rating: Caa1 -- Stable
outlook,
-- Short-Term Foreign Currency Deposit Rating: Not Prime with
stable outlook,
-- National Scale Rating for Local Currency Deposit: Aa2.bo
with stable outlook, and
-- National Scale Rating for Foreign Currency Deposit: A2.bo
with Stable outlook.
BANCO MERCANTIL: Posts US$1.04 Mil. First Quarter 2006 Profits
--------------------------------------------------------------
Banco Mercantil S.A.'s profits increased 153% to US$1.04 million
in the first quarter of 2006, as indicated by figures from local
banking regulator SBEF aka Superintendencia de Bancos y
Entidades Financieras de Bolivia.
SBEF states that Banco Mercantil posted US$411,000 profits in
the same quarter last year.
Business News Americas reports that the bank posted these
results in the first quarter 2006 compared to the same quarter
in 2005:
-- financial income rose 10% to US$9.90 million,
-- administrative expenses grew 10% to US$5.78 million,
-- assets increased 8% to US$576 million,
-- performing loans grew 5% to US$314 million,
-- liabilities rose 8% to US$519 million, and
-- deposits grew 9% to US$459 million.
Banco Mercantil ranked second in the local banking system with a
14.6% asset market share at the end of March, BNamericas
relates.
* * *
As reported in the Troubled Company Reporter on April 27, 2006,
Moody's affirmed the bank financial strength rating of Banco
Mercantil S.A. at E, following the acquisition of Banco Santa
Cruz S.A., which was previously owned by Banco Santander Central
Hispano S.A. and by Administracion de Bancos Latinoamericanos
Santander S.L. The outlook remains stable.
BANCO NACIONAL: Posts US$2.18 Mil. First Quarter 2006 Profits
-------------------------------------------------------------
Banco Nacional de Bolivia's profits increased 404% to US$2.18
million in the first quarter of 2006 from US$432,000 in the same
quarter in 2005, as indicated by the figures provided by local
banking regulator SBEF aka Superintendencia de Bancos y
Entidades Financieras de Bolivia.
Patricio Garret, the national product manager of BNB, told
Business News Americas that financial income increased 10% in
the first quarter to US$11.0 million, saying that it was mainly
because of a better performance by the bank's loan portfolio.
BNamericas relates that administrative expenses rose marginally
by 1.6% to US$5.56 million in this year's first quarter compared
to the same quarter last year.
According to BNamericas, Mr. Garret said that operating income
dropped 33% to US$3.56 million because of a reduction in income
from sales of marketable assets. Operating expenses fell 49% to
US$2.0 million, mainly because of lower sale costs of marketable
assets.
The company's assets in the first quarter of 2006 totaled US$657
million, which is 3% higher than the first quarter of 2005.
Performing loans increased 8% to US$389 million. The company's
liabilities went up 2% to US$607 million while deposits rose 5%
to US$515 million, BNamericas states.
* * *
As reported in the Troubled Company Reporter on April 5, 2006,
Moody's Investors Service upgraded the long-term global local-
currency deposit ratings of Banco Nacional de Bolivia S.A. to B2
from Caa1. The outlook is Stable.
These ratings were also upgraded:
-- National Scale Rating for Local Currency Deposits:
upgraded to Aa2.bo from A2.bo - Stable outlook;
-- National Scale Rating for Foreign Currency Deposits:
upgraded to A1.bo from A2.bo - Stable outlook.
These ratings were not affected:
-- Long-Term Global Foreign-Currency Deposits: Caa1 - Stable
outlook;
-- Short-Term Global Foreign-Currency Deposits: NP - Stable
outlook; and
-- Bank Financial Strength Rating: E - Stable outlook.
* BOLIVIA: Mulling Natural Gas Pipeline Venture with Paraguay
-------------------------------------------------------------
Bolivia has agreed to study a joint venture with Paraguay to
build a US$300 million natural gas pipeline, the Associated
Press reports.
According to AP, the joint venture also includes the
construction of gas plants in Paraguay.
AP relates that Andres Soliz, the hydrocarbons minister of
Bolivia, has signed a memorandum of understanding with Panfilo
Benitez, the minister of public works and communications in
Paraguay.
Minister Benitez told AP, "We're breaking 14 years of inertia
and making this reality, thanks to the fact that Bolivia is now
owner of its gas reserves."
AP states that the two nations want to create a bi-national firm
that may build in Paraguay:
-- a liquid gas separation refinery,
-- a thermoelectric plant, and
-- a petrochemical plant.
Bolivia and Paraguay want the firm to export products to Brazil
and Uruguay, AP says.
The technical teams from the two countries will make the details
of the plan in the next 60 days, officials told AP. They will
be inviting firms 180 days after to provide technical and
economic feasibility studies.
* * *
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
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
AXLETECH INTERNATIONAL: Moody's Confirms Ratings After Review
-------------------------------------------------------------
Moody's Investors Service has confirmed the ratings of AxleTech
International Holdings, Inc. The action concludes a review for
possible downgrade announced on April 10, 2006, following the
company's request to its bank group for an extension to the
delivery date of its audited financial statement for
December 31, 2005. The request was driven by complications
associated with multiple stub accounting periods and purchase
accounting following the acquisition in October 2005. The
company received the requested waiver, completed its audit
process, supplied required financial statements to its lenders
and is current in its reporting requirements. While performance
from the date of the acquisition through the first quarter of
2006 has been slightly below plan, prospectively it remains
consistent with Moody's expectations at the time of the initial
ratings assignment (September 30, 2005). One-time expenses and
purchase accounting adjustments account for the bulk of
variations from original expectations, although working capital
needs and corresponding use of the revolving credit in the first
quarter of 2006 exceeded anticipated amounts. The company was
in compliance with its financial covenants at March 31 with
ample headroom. Moody's anticipates AxleTech's prospective debt
protection measures will continue in an acceptable range for the
B2 Corporate Family rating category and support a stable
outlook.
These three ratings were confirmed:
-- Corporate Family: B2,
-- Senior Secured First Lien bank debt: B2, and
-- Senior Secured Second lien term loan: Caa1.
AxleTech International Holdings, Inc., headquartered in Troy,
MI, is a leading supplier of planetary axles, brakes and other
drivertrain components and aftermarket for off-highway, military
and specialty vehicles. The company has approximately 425
employees with significant operations in Oshkosh, WI, Belvidere,
IL, St. Etienne, France, and Osasco, Brazil.
BANCO BRADESCO: Fitch Upgrades Individual Rating to B/C from C
--------------------------------------------------------------
Fitch Ratings upgraded the Individual rating of Banco Bradesco
S.A. to B/C from C. All other ratings were affirmed.
The improvement in Bradesco's Individual rating reflects
steadily improving results since mid-2004, driven by loan growth
in consumer finance and middle market lending with controlled
credit losses and a relentless drive to improve cost
efficiencies and cross selling among all its business lines.
Bradesco's shrinking exposure to Brazilian federal government
debt was also a contributing factor. Fitch believes that the
improvements noted during the past two and a half years will
prove to be sustainable.
The specific rating actions taken are:
-- Individual rating upgraded to 'B/C' from 'C';
-- Support rating affirmed at '4';
-- Foreign currency long-term IDR affirmed at 'BB-', with a
Positive Outlook;
-- Local currency long-term IDR affirmed at 'BB+', with a
Positive Outlook;
-- Short-term foreign and local currency rating affirmed at
'B';
-- Long-term National rating affirmed at 'AA(bra)', with a
Stable Outlook; and
-- Short-term National rating affirmed at 'F1+(bra)' .
Bradesco is a well-rounded institution and Brazil's largest
private financial conglomerate. It developed expertise in all
segments of the local financial markets by acquiring niche banks
that were very good within their respective sectors. Close to a
decade of multiple acquisitions were followed in the past few
years by major efforts at integration of all the acquired
institutions, cost cuts and improvement in cost efficiencies
among the group's various areas. Bradesco's capital base has
been strengthened through gradual reduction of exposure to
government debt in 2005 and extraordinary amortization of
goodwill in 2004.
Fitch's National ratings provide a relative measure of
creditworthiness for rated entities in countries with relatively
low international sovereign ratings and where there is demand
for such ratings. The best risk within a country is rated 'AAA'
and other credits are rated only relative to this risk.
National ratings are designed for use mainly by local investors
in local markets and are signified by the addition of an
identifier for the country concerned, such as 'AAA(bra)' for
National ratings in Brazil. Specific letter grades are not
therefore internationally comparable.
BUCKEYE TECHNOLOGIES: David Ferraro Retiring in September
---------------------------------------------------------
Buckeye Technologies Inc. disclosed that David B. Ferraro,
Chairman and Chief Executive Officer, will retire in September
2006.
In anticipation of Mr. Ferraro's retirement, the Board has
elected John B. Crowe, currently Buckeye President and Chief
Operating Officer, to the office of Chairman and Chief Executive
Officer succeeding Mr. Ferraro. Other key management changes
being made in accordance with the Company's succession plan
include:
-- Kristopher J. Matula, currently Executive Vice President
and Chief Financial Officer, will succeed Mr. Crowe as
President and Chief Operating Officer.
-- Steven G. Dean, currently Vice President and Controller,
will succeed Mr. Matula as Chief Financial Officer.
The other members of Buckeye's Executive Team will continue in
their current roles.
Mr. Ferraro stated, "I feel very comfortable in retiring now
because we have a strong leader with wide industry experience
ready to succeed me. John Crowe has served as our President for
the last three years. In addition to his Buckeye experience, he
has held senior positions with Weyerhaeuser and Parsons &
Whittemore. He is an outstanding executive. Kris Matula is
also an exceptional executive who is familiar with all aspects
of Buckeye's business. He is uniquely qualified to complete the
implementation of the strategic initiatives now underway. Our
new Chief Financial Officer, Steve Dean, and the remainder of
Buckeye's excellent Management Team will assist John and Kris in
taking the steps necessary to ensure the Company's future
success." Mr. Crowe commented, "Buckeye's Board of Directors
has expressed its sincere appreciation for Mr. Ferraro's
leadership during a period of restructuring and reorganization
that has positioned Buckeye for growth. Mr. Ferraro has
developed a strong organization with a Leadership Team that will
move the business forward."
Headquartered in Memphis, Tennessee, Buckeye Technologies, Inc.
(NYSE:BKI) -- 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: Subsidiary Closes Sheffield Steel Acquisition
--------------------------------------------------------
Gerdau SA disclosed that its U.S. operating subsidiary, Gerdau
Ameristeel US Inc., completed the acquisition of all of the
outstanding shares of Sheffield Steel Corporation of Sand
Springs, Oklahoma.
Subject to certain post closing adjustments, the purchase price
for all of the shares of Sheffield was approximately US$103
million in cash plus the assumption of approximately $84 million
of debt and other long term liabilities net of cash.
Sheffield Steel is a mini-mill producer of long steel products,
primarily rebar and merchant bars with annual shipments of
approximately 550,000 tons of finished steel products.
Sheffield operates a melt shop and rolling mill in Sand Springs,
Oklahoma, a smaller rolling mill in Joliet, Illinois, and three
downstream steel fabricating facilities in Kansas City
and Sand Springs.
About Gerdau Ameristeel
Gerdau Ameristeel is the second largest minimill steel producer
in North America with annual manufacturing capacity of over 6.8
million tons of mill finished steel products. Through its
vertically integrated network of 11 minimills (including one
50%-owned minimill), 13 scrap recycling facilities and 32
downstream operations, Gerdau Ameristeel primarily serves
customers in the eastern half of North America. The company's
products are generally sold to steel service centers,
fabricators, or directly to original equipment manufacturers for
use in a variety of industries, including construction,
automotive, mining and equipment manufacturing. Gerdau
Ameristeel's common shares are traded on the Toronto Stock
Exchange under the symbol GNA.TO
* * *
As reported in the Troubled Company Reporter on May 1, 2006,
Moody's raised these ratings:
-- US$405 million of 10.375% guaranteed senior unsecured
notes due 2011 -- to Ba2 from Ba3; and
-- Corporate family rating -- to Ba2 from Ba3.
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.
UNIAO DE BANCOS: Fitch Affirms BB- LT Foreign Currency Rating
-------------------------------------------------------------
Fitch Ratings affirmed these ratings of Unibanco -- Uniao de
Bancos Brasileiros S.A.:
-- Foreign currency long-term IDR: 'BB-', with a Positive
Outlook;
-- Local currency long-term IDR: 'BB', with a Positive
Outlook;
-- Short-term foreign and local currency rating: 'B';
-- Individual rating: 'C';
-- Support rating affirmed at '4';
-- Long-term National rating: 'AA-(bra)', with a Stable
Outlook; and
-- Short-term National rating affirmed at 'F1+(bra)'.
Unibanco is Brazil's third-largest private financial
conglomerate, with about 3.7% of domestic sight and savings
deposits and 8% of system-wide loans. Ultimate control of
Unibanco rests with the Moreira Salles Group (89.8% voting;
18.3% total) through Unibanco Holdings; the remaining shares are
publicly traded. Its ratings reflect an improving franchise,
strong position in most product areas and sound management team.
The bank's foreign currency IDRs are at Brazil's country rating;
the local currency long-term IDR higher than the sovereign's
reflects consistent performance and balance sheet strength and
management capacity to manage turbulent economic cycles.
Fitch's National ratings provide a relative measure of
creditworthiness for rated entities in countries with relatively
low international sovereign ratings and where there is demand
for such ratings. The best risk within a country is rated 'AAA'
and other credits are rated only relative to this risk.
National ratings are designed for use mainly by local investors
in local markets and are signified by the addition of an
identifier for the country concerned, such as 'AAA(bra)' for
National ratings in Brazil. Specific letter grades are not
therefore internationally comparable.
VARIG: New York Court Extends Injunction to June 21
---------------------------------------------------
The Hon. Robert Drain of the the U.S. Bankruptcy Court for the
Southern District of New York extended an injunction impeding
leasing companies from seizing planes being used by Brazilian
airline Viacao Aerea Riograndense SA or Varig until June 21,
offering a small respite for the debt-ridden company, according
to the local Estado newswire.
At a hearing in New York, Judge Drain barred repossessions,
despite continued non-payment by Varig, to allow a Brazilian
judge time to assess a US$449 million worker-led bid for Varig's
operations.
Varig has been in financial trouble for several years amid
mounting debts that total about BRL8 billion. The company has
enjoyed Brazilian court bankruptcy protection since July but is
in dire need of a cash injection from a new investor to meet
operating payments.
Lawyers for leasing company representatives, which include Wells
Fargo Bank and US Bank National Association, argued the worker-
led bid offers little chance of Varig recovering and becoming
profitable enough to pay its debts.
However, Judge Drain said he would maintain the injunction "due
to the efforts" of the Brazilian bankruptcy court to make the
restructuring work, according to the Estado report.
At an auction Thursday, NV Participacoes, a consortium led by
Varig workers group TGV, made a winning bid for the airline.
On Monday, Rio de Janeiro Judge Luiz Roberto Ayoub provisionally
accepted the bid but asked for more information on the bid's
financing and the consortium's members. He will make a final
decision on the bid today.
If the bid is rejected, Varig will be very close to liquidation,
Judge Ayoub acknowledged Monday.
Drain's decision may not stop other leasing companies from
seeking court permission to receive planes.
On Friday, a New York state Supreme Court judge authorized
Boeing Co. to repossess seven planes leased to Varig.
Varig announced late Monday that it would take the planes, two
Boeing 777s and five MD-11s, out of operation.
Meanwhile, Varig's debts continue to grow and operating payments
aren't being met, leading its main fuel supplier, the state-run
BR Distribuidora, to threaten to stop dealing with the company.
Varig canceled 69 flights between Saturday and Monday due to
operational problems, including delays in maintenance, said the
company.
"The flight cancellations occurred this weekend due to
limitations of the fleet and normal airline problems, including
weather and maintenance problems," said Varig President Marcelo
Bottini in a press release issued late Monday.
Varig lacks cash to pay for the maintenance of planes.
Bottini also said the airline would maintain all of its 180
daily domestic and international flights at least until
Wednesday.
Local rivals Gol Linhas Inteligentes and TAM SA are expected to
benefit if Varig goes bankrupt.
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. 20; Bankruptcy
Creditors' Service, Inc., 215/945-7000)
===========================
C A Y M A N I S L A N D S
===========================
FIDELIS INVESTMENTS: Schedules Final General Meeting for July 12
----------------------------------------------------------------
Shareholders of Fidelis investments will gather on July 12,
2006, for a final general meeting at 10:00 a.m. at:
Bessemer Trust Company (Cayman) Limited
P.O. Box 694, Edward Street, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
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.
The company's liquidators can be reached at:
Bessemer Trust Company (Cayman) Limited
P.O. Box 694, Edward Street, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-6674
Fax: (345) 945-2722
FRANKLIN CLO: Schedules Final Shareholders Meeting on June 30
-------------------------------------------------------------
Franklin CLO III, Ltd., will hold its final shareholders
meeting, pursuant to Section 145 of the Companies Law (2004
Revision) of the Cayman Islands, at 9:00 a.m. on June 30, 2006.
The parties will lay accounts before the meeting, showing how
the winding up has been conducted and how the property has been
disposed of.
The shareholders will authorize the liquidators to retain the
records of the company for a period of five years from the
dissolution of the company, after which they may be destroyed.
Any person who is entitled to attend and vote at this meeting
may appoint a proxy in his stead. A proxy need not be a member
or a creditor.
The company's 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
Franklin CLO started its voluntary liquidation on May 10, 2006.
GERALDINE AIRCRAFT: Holding Final Shareholders Meeting on July 7
----------------------------------------------------------------
The shareholders of Geraldine Aircraft Leasing Co. Ltd. will
convene for a final meeting on July 7, 2006, at:
Cargolux Airlines International S.A.
Luxembourg Airport, L-2990 Luxembourg
Grand Duchy, of Luxembourg
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidators can be reached at:
Michel Schaus
Cargolux Airlines International S.A.
Luxembourg Airport, L-2990 Luxembourg
Grand Duchy of Luxembourg
GIT FUND: Final Shareholders Meeting Scheduled for June 30
----------------------------------------------------------
GIT Fund will hold its final shareholders meeting, pursuant to
Section 145 of the Companies Law (2004 Revision) of the Cayman
Islands, at 9:00 a.m. on June 30, 2006.
The parties will lay accounts before the meeting, showing how
the winding up has been conducted and how the property has been
disposed of.
The shareholders will authorize the liquidators to retain the
records of the company for a period of five years from the
dissolution of the company, after which they may be destroyed.
Any person who is entitled to attend and vote at this meeting
may appoint a proxy in his stead. A proxy need not be a member
or a creditor.
The company's liquidator can be reached at:
Richard L. Finlay
P.O. Box 2681 George Town
Grand Cayman, Cayman Islands
Attn: Krysten Lumsden
Tel: (345) 945 3901
Fax: (345) 945 3902
GIT Fund started its voluntary liquidation on April 20, 2006.
IVY ENHANCED: Final Shareholders Meeting Scheduled for June 30
--------------------------------------------------------------
Ivy Enhanced Feeder Fund I, Ltd., will hold its final
shareholders meeting, pursuant to Section 145 of the Companies
Law (2004 Revision) of the Cayman Islands, at 11:00 a.m. on
June 30, 2006.
The parties will lay accounts before the meeting, showing how
the winding up has been conducted and how the property has been
disposed of.
The shareholders will authorize the liquidators to retain the
records of the company for a period of five years from the
dissolution of the company, after which they may be destroyed.
Any person who is entitled to attend and vote at this meeting
may appoint a proxy in his stead. A proxy need not be a member
or a creditor.
The company's 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
Ivy Enhanced started its voluntary liquidation on May 5, 2006.
NOCH OFFSHORE: Final Shareholders Meeting Set for June 30
---------------------------------------------------------
Noch Offshore Fund, Ltd., will hold its final shareholders
meeting, pursuant to Section 145 of the Companies Law (2004
Revision) of the Cayman Islands, at 10:00 a.m. on June 30, 2006.
The parties will lay accounts before the meeting, showing how
the winding up has been conducted and how the property has been
disposed of.
The shareholders will authorize the liquidators to retain the
records of the company for a period of five years from the
dissolution of the company, after which they may be destroyed.
Any person who is entitled to attend and vote at this meeting
may appoint a proxy in his stead. A proxy need not be a member
or a creditor.
The company's 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
Noch Offshore started liquidating assets on April 25, 2006.
SCALA ADVISORS: Final Shareholders Meeting Scheduled for June 30
----------------------------------------------------------------
Scala Advisors will hold its final shareholders meeting,
pursuant to Section 145 of the Companies Law (2004 Revision) of
the Cayman Islands, at 12:00 p.m. on June 30, 2006.
The parties will lay accounts before the meeting, showing how
the winding up has been conducted and how the property has been
disposed of.
The shareholders will authorize the liquidators to retain the
records of the company for a period of five years from the
dissolution of the company, after which they may be destroyed.
Any person who is entitled to attend and vote at this meeting
may appoint a proxy in his stead. A proxy need not be a member
or a creditor.
The company's 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
Scala Advisors started its voluntary liquidation on May 9, 2006.
===============
C O L O M B I A
===============
BANCOLOMBIA: Reports COP285.81 Billion of Net Income at May 31
--------------------------------------------------------------
Bancolombia reported accumulated unconsolidated net income of
COP285.811 billion as of May 31, 2006. For the first five
months of 2006, the total net interest income, including
investment securities amounted to COP423.011 million.
Additionally, total net fees and income from services amounted
to COP226.742 million.
Total assets amounted to COP24.85 trillion in May 2006, total
deposits totaled COP14.68 trillion and Bancolombia's total
shareholders' equity amounted to COP3.02 trillion.
Bancolombia's (unconsolidated) level of past due loans as a
percentage of total loans was 2.88% as of May 31, 2006, and the
level of allowance for past due loans was 129.94%.
Market Share
According to Asobancaria (Colombia's national banking
association), Bancolombia's market share of the Colombian
Financial System in May 2006 was as follows:
-- 17.0% of total deposits,
-- 20.5% of total net loans,
-- 16.6% of total savings accounts,
-- 20.1% of total checking accounts and
-- 14.8% of total time deposits.
* * *
The Troubled Company Reporter - Latin America reported on April
28, 2006, that Moody's Investors Service upgraded Bancolombia's
bank financial strength ratings to D+ from D with a stable
outlook.
Moody's added that the action concludes the review for possible
upgrade that was announced on October 13, 2005. Moreover,
Bancolombia's Ba3/Not Prime long- and short-term foreign
currency deposit ratings were affirmed. Moody's said the
outlook on all ratings is stable.
* * *
On Dec. 22, 2005, Fitch affirmed the ratings assigned to
Bancolombia, as:
-- Long-term/short-term foreign currency at 'BB/B';
-- Long-term/short-term local currency at 'BBB-/F3';
-- Individual at 'C';
-- Support at '3'.
===================
C O S T A R I C A
===================
BANCO BANEX: Posts CRC2.10 Bil. First Quarter 2006 Earnings
-----------------------------------------------------------
Costa Rica's Banco Banex reported earnings of CRC2.10 in the
first quarter of 2006, Business News Americas reports.
According to financial sector regulator Superintendencia General
de Entidades Financieras or Sugef, Banco Banex's profits in the
first quarter this year was 19.0% higher than the CRC1.77
billion recorded in the same quarter last year.
BNamericas relates that the bank's net interest income increased
39% to CRC4.75 billion. Net fee revenues rose 17% to CRC1.08
billion.
The bank's assets, says BNamericas, rose 33% to CRC393 billion.
Loans increased 30% to CRC261 billion and financial investments
grew 6% to CRC39.6 billion.
Banco Banex's interest bearing liabilities rose 31% to CRC313
billion while non-interest bearing liabilities increased 55% to
CRC42.5 billion.
* * *
As reported in the Troubled Company Reporter on July 4, 2005,
Moody's Investors Service upgraded the long term foreign
currency deposit rating to Caa1 from Caa2 for Banco Banex S.A.
following Moody's upgrade of Argentina's foreign currency
ceiling for bank deposits to Caa1. Moody's also raised the
bank's National Scale foreign currency deposit rating to Ba1.ar
from B1.ar. All the ratings have a stable outlook.
* * *
As reported in the Troubled Company Reporter on June 2, 2006,
Moody's Investors Service upgraded the bank financial strength
rating of Banco Banex S.A. to E+ from E. The outlook on this
rating is stable.
* COSTA RICA: Fuel & Electricity Price Hike Hasten Inflation
------------------------------------------------------------
The increase in prices of gasoline and electricity in May
resulted to the acceleration of inflation in Costa Rica, Inside
Costa Rica reports.
Consumer prices increased 1.58% in May, according to the
National Statistics and Census Bureau or INEC. It was the
largest monthly variation since November 2005.
Inside Costa Rica relates that inflation for the last 12 months
is at 11.86%. From January to May, inflation has risen by
4.31%.
According to Inside Costa Rica, analysts have predicted that
inflation will remain at an average of 12 to 13% in the
remaining months of 2006.
The government has set earlier an inflation goal for 2006 at
11%, 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: Will Host 14th Expocaribe International Fair
----------------------------------------------------
The 14th Expocaribe International Fair will be held in Santiago
de Cuba on June 18, Prensa Latina reports.
Prensa Latina states that the Expocaribe fair is a major venue
for trade among Cuban and foreign businessmen.
There will be an exhibition of new products, presentation of new
firms and socioeconomic achievements of the provinces of Granma
and Guantanamo, and conferences, Prensa Latina relates.
According to Prensa Latina, almost 70 local participants will
represent the fields of:
-- agriculture,
-- light, basic, iron and steel industries,
-- transport,
-- public health,
-- tourism, and
-- higher education.
Interested participants include:
-- Venezuela,
-- Italy,
-- Brazil,
-- Colombia,
-- Germany,
-- Panama,
-- Canada,
-- Spain,
-- Mexico,
-- Netherlands, and
-- Belgium.
The fair will close on June 23 with the awarding of the best
products and stands, Prensa Latina states.
* * *
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
* CUBA: Rejects Economic Pacts That Intrude on Domestic Affairs
---------------------------------------------------------------
Cuba's Ministerial Council issued the Cuban Foreign Investment
and Economic Collaborations Resolution No. 15, which prohibits
Cuba from participating in economic pacts that entail meddling
in its domestic affairs, Prensa Latina reports.
Prensa Latina relates that the resolution was read and explained
to Cuban deputies of the congressional economic committee. It
was also published on May 26 in the Official Gazette.
Prensa Latina relates that the resolution also prohibits
alliances that go against the principles of the Cuban Revolution
and that favor one sector of the population.
Under Resolution 15, systems for social services or distribution
of received resources from economic pacts will always follow
policies that the Cuban government has established, Prensa
Latina says.
* * *
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: Free Trade with US Won't Start in July
------------------------------------------------------------
The Dominican Republic will not be able to join the DR-CAFTA or
the Dominican Republic-Central America-United States Free Trade
Agreement in July, an official from the US State Department told
the Associated Press.
As reported in the Troubled Company Reporter on May 22, 2006,
Kevin Manning -- president of the American Chamber of Commerce
-- said that the DR-CAFTA would take effect in the Dominican
Republic on July 1, 2006, as prescheduled.
US officials hope the Dominican Republic can sign the agreement
in August, AP relates, citing Charles Shapiro, a senior Western
Hemisphere specialist at the State Department.
Mr. Shapiro told AP, "Clearly, we would like this to enter into
force as soon as possible."
AP recalls that Dominican Republic's President Leonel Fernandez
told the Congress in February that participating in the trade
accord was "a question of survival" to stay competitive against
emerging manufacturers like China.
Robert Zoellick, the US Deputy Secretary of State, told AP that
questions over issues like intellectual property law were
holding up the deal.
As reported in the Troubled Company Reporter on June 5, 2006, a
US Trade Representative said that the Dominican Republic needed
to revise several laws as a condition set by the United States
for the implementation of the DR-CAFTA. Everett Eisenstat, the
Deputy Secretary for the Americas, said that US requirements for
change are specifically aimed at:
-- Law 173 regarding the representation of foreign companies,
-- Law 65-01 on copyrights, and
-- Law 20-01 on industrial property.
* * *
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: Four Banks Offer Aid in Renewing Mobile Accords
----------------------------------------------------------
Four investment banks have offered to assist Ecuador in
renegotiating existing mobile telephony accords, according to
local daily La Hora.
La Hora relates the Senatel, the telecoms regulator of Ecuador,
is currently studying the offers.
Hernan Leon, the head of Senatel, told Business News Americas
that the four banks have wide ranging experience in evaluating
the worth of telecoms firms in Latin America, particularly in
Colombia, Peru, and Chile.
BNamericas reports that the concession negotiations was launched
due to the Ecuadorian government's desire to bring operating
accords of Porta and Movistar in line with that of rival telecom
Alegro PCS.
Porta and Movistar's concession accords will expire in 2008,
BNamericas states.
The Inter-American Telecommunication Commission within the
Organization of American States, says BNamericas, will supervise
the renegotiation of contracts. The authorities aim for:
-- equal conditions for sanctions,
-- quality indices, and
-- spectrum usage for all three operators.
The conditions in the local telephony market have changed since
the first regulations for awarding mobile telephony accords
began in 1993, BNamericas relates, citing Mr. Leon.
* * *
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
=====================
E L S A L V A D O R
=====================
* EL SALVADOR: Free Trade Pact Boosts Sales to US by 15%
--------------------------------------------------------
Yolanda de Gavidia, El Salvador's economic minister, told Xinhua
News that the free trade agreement or FTA has already increased
El Salvador's sales to the United States by 15%.
The large-scale effects will be seen over the long term, Xinhua
reports, citing Minister Gavidia.
Xinhua relates that Minister Gavidia said that the FTA will
increase production and employment in companies.
It will also present some challenges, Minister Gavidia stated.
According to her, both small and medium-sized firms are faced
with competition and so they have to improve services, Xinhua
says.
US firms are also trying to increase sales to El Salvador under
the accord, Minister Gavidia told Xinhua.
* * *
Fitch Ratings assigned these ratings on El Salvador:
Rating Rating Date
------ -----------
Country Ceiling BB+ Jun. 18, 2004
Long Term IDR BB+ Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=============
J A M A I C A
=============
KAISER ALUMINUM: Court Approves US$67.2 Mil. Hartford Settlement
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
Kaiser Aluminum & Chemical Corporation's Settlement Agreement
with the Hartford Parties.
The Hartford Parties are:
(1) "Hartford" -- Hartford Accident and Indemnity Company,
First State Insurance Company, New England
Reinsurance Corporation, and Nutmeg
Insurance Company;
(2) The Hartford Financial Services Group, Inc.;
(3) each of Hartford's and Hartford Financial's parents,
direct and indirect subsidiaries, divisions, holding
companies, merged companies, acquired companies,
predecessors-in-interest, successors-in-interest and
assigns; and
(3) Hartford's and Hartford Financial's directors, officers,
shareholders, agents, attorneys and employees.
As previously reported, the settlement agreement resolves all
claims against the Hartford Parties with respect to the Hartford
Subject Policies, including coverage for Channeled Personal
Injury Claims, as well as other present and future liabilities.
The Channeled Personal Injury Claims are the asbestos personal
injury claims, the PI claims related to coal tar pitch volatile,
the PI claims related to noise induced hearing loss and the
silica-related PI claims.
The principal terms of the Settlement Agreement are:
(a) Hartford will pay US$67,200,000 to the Funding Vehicle
Trust, or if the Funding Vehicle Trust is not in existence
at the time any payment becomes due, then to the Insurance
Escrow Agent. Upon the payment of the US$67,200,000
settlement amount to the Insurance Escrow Account, legal
and equitable title to the Settlement Amount will pass
irrevocably to the Insurance Escrow Agent to be
distributed pursuant to the Reorganizing Debtors'
confirmed Plan of Reorganization;
(b) The Hartford Parties specifically contracted to receive
all of the benefits of being designated as Settling
Insurance Companies in the Plan, including, but not
limited to, the Personal Injury Channeling Injunctions.
The Hartford Parties will be entitled to, upon Court
approval of the Settlement Agreement and following the
Plan's Effective Date, the protections provided by that
designation and treatment without further Court order;
(c) KACC, on behalf of itself and the other KACC Parties,
will release all of its rights under the Hartford
Subject Policies, and will dismiss each of the Hartford
Parties from the Coverage Actions;
(d) The Settlement Agreement covers all claims that might be
covered by the Hartford Subject Policies. Accordingly,
KACC will sell, and the Hartford Parties will buy back,
the Hartford Subject Policies pursuant to Sections 363(b)
and 363(f) of the Bankruptcy Code, free and clear of all
liens on, claims against, or interests in, the Hartford
Subject Policies, with Hartford's payment of the
Settlement Amount constituting the consideration for the
buy-back.
The order approving the Settlement Agreement must include
a finding that the Hartford Parties are good faith
purchasers of the Hartford Subject Policies pursuant to
Section 363(m). The Hartford Parties also contracted to
receive the benefits of the Approval Order Injunction,
enjoining parties from asserting any claims against the
Hartford Parties relating to the Hartford Subject
Policies;
(e) If any claim is brought against any of the Hartford
Parties that is subject to a PI Channeling Injunction, the
Funding Vehicle Trust will exercise its reasonable best
efforts to establish that the claim is enjoined as to the
Hartford Parties by the PI Channeling Injunction;
(f) The Hartford Parties will not seek reimbursement of any
payments that Hartford is obligated to make under the
Settlement Agreement, or any other payments Hartford has
made to or for the benefit of KACC or, upon its creation,
the Funding Vehicle Trust, under the Hartford Subject
Policies, whether by way of contribution, subrogation,
indemnification or otherwise, from any entity other than
the Hartford Parties' reinsurers. In no event will the
Hartford Parties make any claim for, or relating to
insurance, reinsurance or retrocession against KACC or,
upon its creation, the Funding Vehicle Trust; and
(g) The Settlement Agreement contains certain rights of
termination, including if asbestos legislation were to be
enacted into a law prior to the last scheduled payment.
About Kaiser Aluminum
Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high
strength, general engineering, automotive, and custom industrial
applications. The Company filed for chapter 11 protection on
February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold
off a number of its commodity businesses during course of its
cases. Corinne Ball, Esq., at Jones Day, represents the Debtors
in their restructuring efforts. On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 97; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
KAISER ALUMINUM: Inks 2nd Amendment to Replacement DIP Financing
----------------------------------------------------------------
The Hon. Judith K. Fitzgerald of the U.S. Bankruptcy Court for
the District of Delaware permits Kaiser Aluminum Corporation and
its debtor-affiliates to enter into a second amendment to
postpetition credit agreement and pay certain related fees. The
Replacement Financing Facility remains in full force and effect
and enforceable in all respects, except to the extent modified.
Among others, the Second Amendment extends the maturity Date of
the Replacement Financing Facility to Aug. 31, 2006.
The Court authorizes the Reorganizing Debtors to file the fee
letters under seal. Judge Fitzgerald will conduct an in camera
hearing on the Financing Motion if the contents of the Fee
Letters will be discussed.
As reported in the Troubled Company Reporter on Jan. 18, 2006,
the Debtors have engaged in discussions with JPMorgan Chase
Bank, National Association, JPMorgan Securities, Inc., and CIT
Group/Business Credit, Inc. -- their primary DIP lenders -- for
an extension of the US$200,000,000 replacement DIP financing.
The Debtors and the Lenders agreed to enter into a first
amendment to the Replacement Financing Facility.
About Kaiser Aluminum
Based in Foothill Ranch, California, Kaiser Aluminum Corporation
-- http://www.kaiseraluminum.com/-- is a leading producer of
fabricated aluminum products for aerospace and high-strength,
general engineering, automotive, and custom industrial
applications. The Company filed for chapter 11 protection on
February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold
off a number of its commodity businesses during course of its
cases. Corinne Ball, Esq., at Jones Day, represents the Debtors
in their restructuring efforts. On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 97; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
SUGAR COMPANY: Gets Ten Bids from Int'l Firms for Five Plants
-------------------------------------------------------------
The Sugar Company of Jamaica has received ten bids from
international investors for the purchase of its five factories,
Radio Jamaica reports.
According to Radio Jamaica, the offers came from firms in:
-- United States,
-- Canada,
-- Brazil, and
-- India.
As reported in the Troubled Company Reporter on May 19, 2006,
the government of Jamaica opened the bidding for Sugar Company
in May. Aubyn Hill -- a member of the Sugar Cane Industry
Enterprise Team aka SET -- said in a press conference held at
the Hilton Kingston hotel that prospective buyers would have to
meet specific criteria, including a commitment to investing in
the local sugar industry and a track record in sugar production.
The SCJ comprises:
-- the Duckenfield estate in St. Thomas,
-- Bernard Lodge in St. Catherine,
-- Monymusk in Clarendon,
-- Long Pond and Hampden in Trelawny, and
-- Frome in Westmoreland.
There have been other entities from across the world expressing
interest in buying the factories, Roger Clarke, the minister of
agriculture, told the Financial Report.
All-Island Jamaica Cane Farmers Association is the most vocal of
the investors. It is partnering with Brazil's Aracatu Group to
participate in the bidding process, Radio Jamaica relates.
SCJ registered a net loss of almost US$1.1 billion for the
financial year ended Sept. 30, 2005, 80% higher than the
US$600 million reported in the previous financial year. The SCJ
blamed its financial deterioration to the reduction in sugar
cane production.
SUGAR COMPANY: Government Tries to Keep Business Running
--------------------------------------------------------
The government is trying to find solutions to the financial
crisis the Sugar Company of Jamaica aka SCJ is facing and trying
to assure sugar workers and farmers that it will continue to
meet its obligations, Real Jamaica Radio reports.
Roger Clarke, the minister of Agriculture, told RJR that
stakeholders need not fear as the government is doing everything
to ensure there are no disruptions.
RJR relates that the future of the sugar industry has been
uncertain since it was reported that the National Commercial
Bank has stopped financing SCJ. There were fears that the sugar
sector could collapse.
The finance ministry will have to find at least US$2 billion
from the consolidated fund to fight the crisis, RJR states,
citing Audley Shaw, the spokesman on finance.
Some people have insisted on government intervention, saying
that SCJ's problems exceeded crisis proportion, RJR reports.
SCJ registered a net loss of almost US$1.1 billion for the
financial year ended Sept. 30, 2005, 80% higher than the
US$600 million reported in the previous financial year. The SCJ
blamed its financial deterioration to the reduction in sugar
cane production.
===========
M E X I C O
===========
GENERAL MOTORS: Moody's Says Expanded Buyout Is Constructive
------------------------------------------------------------
Moody's Investors Service believes that the agreement between
General Motors, Delphi and the UAW to expand the buyout program
being offered to Delphi employees is a constructive step in
helping to resolve the Delphi reorganization without a strike.
The expanded buyout program, in combination with the agreement
allowing up to 5,000 Delphi employees to flow back to GM, could
significantly reduce Delphi's UAW workforce from its current
level of about 24,000. This could help facilitate a successful
restructuring of Delphi and reduce the likelihood of a UAW work
action. Moody's has stated that a prolonged UAW strike at
Delphi could severely undermine GM's liquidity and ongoing
viability, and is the most significant near-term risk facing the
company whose B3 corporate family rating has a negative outlook.
Notwithstanding the positive character of the expanded buyout
agreement, Moody's cautioned that GM continues to face
considerable near-and intermediate-term risks.
"A number of significant issues remain to be resolved before an
agreement can be reached that is mutually acceptable to GM,
Delphi and the UAW," said Bruce Clark, senior vice president and
lead auto analyst.
Factors that could yet have an important bearing on the outcome
of the Delphi reorganization include the number of employees
that opt for the buyout program, the amount of any additional
contributions that GM might have to make in order to facilitate
a Delphi-UAW agreement, and the degree to which Delphi's post-
bankruptcy operating structure will reduce the US$2 billion
annual cost disadvantage GM incurs on its Delphi supply
contracts.
Moreover, assuming that the Delphi reorganization can be
achieved without a strike, GM will have to contend with a number
of other potentially formidable challenges. Concerns of the
Pension Benefit Guarantee Corporation or PBGC will have to be
addressed in order to complete the sale of a majority interest
in General Motors Acceptance Corporation or GMAC, and to receive
the initial US$10 billion in sale proceeds. GM will have to
sustain the retail shipment level and profitability of the T900
trucks and SUVs despite high fuel prices and shifting consumer
preferences. The company will have to stem its loss in North
American market share, which has fallen to 23.8% for the five
months through May 2006 from 26.3% at year-end 2005. At the
same time that its operating performance could be pressured by
depressed market share and shifting consumer preference, GM will
have to fund the sizable payments related to the Delphi
restructuring and its own employee buyout program designed to
reduce hourly headcount by 30,000. Finally, GM will need to
achieve a UAW contract in 2007 that affords material relief from
active employee health care costs, and that significantly
reduces the burden associated with the current jobs bank
program. Moody's expects that GM will have to incur sizable up-
front cash payments in return for the critical union concessions
that it will need in 2007.
As GM contends with these challenges it will benefit from a
liquidity position that stood at US$21.6 billion at March 31,
and could benefit from the US$10 billion in up front proceeds
from the GMAC sale.
"The expanded buyout program is a step in the right direction,
but GM still needs to get a Delphi deal wrapped up," Mr. Clark
said. "And even if it gets that deal, the company will still
have a long difficult road ahead of it. That is one of the
reasons that a strong liquidity position will be so critical."
About General Motors
General Motors Corp. -- http://www.gm.com/-- the world's
largest automaker, has been the global industry sales leader for
75 years. Founded in 1908, GM today employs about 327,000
people around the world. With global headquarters in Detroit,
GM manufactures its cars and trucks in 33 countries including
Mexico. In 2005, 9.17 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall. GM operates one of the world's leading finance
companies, GMAC Financial Services, which offers automotive,
residential and commercial financing and insurance. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on May 9, 2006,
Moody's Investors Service placed the B3 senior unsecured rating
of General Motors Corporation under review for possible
downgrade, and affirmed the company's Corporate Family Rating at
B3. The rating actions are in response to the company's
disclosure that it is pursuing various options to replace or
amend its existing US$5.6 billion bank credit facility, and that
these options could result in providing its bank lenders with a
security interest in certain GM assets. GM anticipates that any
credit facility replacement or amendment will be completed by
the end of the second quarter or early in the third quarter.
GRUPO IUSACELL: Supreme Court Disallows Special Tax Exemption
-------------------------------------------------------------
The Supreme Court of Mexico did not grant Grupo Iusacell's
request for special tax exemption, according to local daily El
Financiero.
Business News Americas relates that Iusacell sought for tax
exemption asserting that it satisfies the requirements listed in
Article 18 of the legislation governing the special tax on
production services.
According to BNamericas, the company reasoned that its
concession for fixed line and mobile telephony, and its license
to sell airtime for a broad range of signals including voice,
data and video, would qualify the firm for tax exemption.
However, the court ruled that Iusacell does not qualify for
special tax treatment under Article 18, BNamericas says.
Headquartered in Mexico City, Mexico, Grupo Iusacell, S.A. de
C.V. (Iusacell, BMV: CEL) is a wireless cellular and PCS service
provider in Mexico with a national footprint. Independent of
the negotiations towards the restructuring of its debt, Iusacell
reinforces its commitment with customers, employees and
suppliers and guarantees the highest quality standards in its
daily operations offering more and better voice communication
and data services through state-of-the-art technology, including
its new 3G network, throughout all of the regions in which it
operate.
As of Dec. 31, 2005, Grupo Iusacell's stockholders' deficit
widened to MXN2,076,000,000 from a deficit of MXN1,187,000,000
at Dec. 31, 2004.
J.L. FRENCH: Court Approves Miller Buckfire as Fin'l Advisor
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware allowed
J.L. French Automotive Casting, Inc., and its debtor-affiliates
to employ Miller Buckfire & Co., LLC, as their financial advisor
and investment banker.
Miller Buckfire is expected to:
a) familiarize itself with the business, operations,
properties, financial condition and prospects of the
Debtors;
b) advise and assist the Debtors in structuring and
effectuating the financial aspects of any restructuring or
sale transaction or transactions proposed to be undertaken
by the Debtors;
c) if the Debtors determine to undertake a restructuring,
provide financial advice and assistance to the Debtors in
developing and seeking approval of a restructuring plan,
including participating in negotiations with entities or
groups affected by the plan;
d) if the Debtors determine to undertake a sale, identify
and negotiate with potential acquirors in connection with
a sale, including preparation of sale memoranda and
presentation materials, as appropriate; and
e) participate in hearings before the Court with respect to
the matters upon which Miller Buckfire has provided
advice, including, as relevant, coordinating, with the
Debtors' counsel with respect to testimony in connection
therewith.
James Amodeo, J.L. French's CFO, discloses that Miller Buckfire
will receive a monthly financial advisory fee of US$150,000.
Beginning with the fifth monthly advisory fee, 50% of the amount
of any monthly advisory fee paid to Miller Buckfire will be
credited against any Restructuring Transaction Fee or Sale
Transaction Fee payable to Miller Buckfire.
If the Debtors consummate a Restructuring, Miller Buckfire will
receive a Restructuring Transaction Fee of US$2,125,000. If a
Sale is consummated, a Sale Transaction Fee of 1% of the
Aggregate Consideration of any Sale will be given to Miller
Buckfire. Mr. Amodeo assures the Court that Miller Buckfire is
a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code and does not hold or represent
any interest adverse to the Debtors' estates.
About J.L. French
Headquartered in Sheboygan, Wisconsin, J.L. French Automotive
Castings, Inc. -- http://www.jlfrench.com/-- is one of the
world's leading global suppliers of die cast aluminum components
and assemblies. There are currently nine manufacturing
locations around the world including plants in the United
States, United Kingdom, Spain, and Mexico. The company has
fourteen engineering/customer service offices to globally
support its customers near their regional engineering and
manufacturing locations. The Company and its debtor-affiliates
filed for chapter 11 protection on Feb. 10, 2006 (Bankr. D. Del.
Case No. 06-10119 to 06-06-10127). James E. O'Neill, Esq., Laura
Davis Jones, Esq., and Sandra G.M. Selzer, Esq., at Pachulski
Stang Ziehl Young & Jones, and Marc Kiesolstein, P.C., at
Kirkland & Ellis LLP, represent the Debtors in their
restructuring efforts. Ricardo Palacio, Esq., and William
Pierce Bowden, Esq., at Ashby & Geddes, PA, represents the
Official Committee Of Unsecured Creditors. When the Debtor
filed for chapter 11 protection, it estimated assets and debts
of more than US$100 million.
KANSAS CITY SOUTHERN: Will Launch New Daily Intermodal Service
--------------------------------------------------------------
Kansas City Southern told Business News Americas that it will
launch a new daily service linking Mexico's Lazaro Cardenas port
with US markets.
BNamericas states that the new rail service will start on the
third week of June.
Art Shoener, the executive vice president and COO of Kansas City
Southern, told BNamericas, "This is an important new daily
intermodal service coming out of the port of Lazaro Cardenas,
San Luis Potosi and Monterrey into key southeastern US markets."
According to BNamericas, the corridor will be served by
subsidiaries of Kansas City in Mexico and the United States,
with the aim of competing for Asian cargo being sent through
ports on the US west coast.
The service is just in time to aid clients with peak season and
is a clear indicator of the boost of traffic and capacity
planned for the port, BNamericas reports, citing Gonzalo Ortiz,
the general manager of port operator Hutchison Port Holdings at
Lazaro Cardenas.
Headquartered in Kansas City, Missouri, Kansas City Southern
(NYSE: KSU) - http://www.kcsi.com/-- is a transportation
holding company that has railroad investments in the U.S.,
Mexico and Panama. Its primary U.S. holding is The Kansas City
Southern Railway Company, serving the central and south central
U.S. Its international holdings include KCSM, serving
northeastern and central Mexico and the port cities of L zaro
Cardenas, Tampico and Veracruz, and a 50 percent interest in
Panama Canal Railway Company, providing ocean-to-ocean freight
and passenger service along the Panama Canal. KCS' North
American rail holdings and strategic alliances are primary
components of a NAFTA Railway system, linking the commercial and
industrial centers of the U.S., Canada and Mexico.
* * *
As reported in the Troubled Company Reporter on May 22, 2006,
Standard & Poor's Ratings Services lowered its preferred stock
ratings on Kansas City Southern to 'D' from 'C' and removed the
ratings from CreditWatch where they were initially placed on
March 23, 2006; ratings were previously lowered on April 4 and
May 1 and maintained on CreditWatch with negative implications.
Standard & Poor's other ratings on Kansas City Southern,
including its 'B' corporate credit rating, remain on CreditWatch
with negative implications, where they were initially placed
April 4, 2006. Ratings were lowered on April 10 and maintained
on CreditWatch.
MERIDIAN AUTOMOTIVE: Panel Questions Validity of Lenders' Lien
--------------------------------------------------------------
Representing the Official Committee of Unsecured Creditors
appointed in Meridian Automotive Systems, Inc., and its
debtoraffiliates' bankruptcy cases, Gregory A. Taylor, Esq., at
Ashby & Geddes, P.A., in Wilmington, Delaware, asserts that the
filing by Credit Suisse, as First Lien Administrative Agent and
First Lien Collateral Agent, of a U.C.C. financing statement
creating a lien on substantially all the assets of Meridian
Automotive Systems-Composites Operations, Inc., five days prior
to bankruptcy filing is avoidable as a preferential transfer.
In connection with the sale of assets, the First Lien Agent's
authorized agent, First American Title Insurance Company,
mistakenly filed with the Delaware Secretary of State a
termination statement, which the First Lien Agent ratified by
failing to take timely corrective action.
The Committee asserts that it is entitled to a summary judgment
avoiding the purported lien.
Mr. Taylor contends that the First Lien Agent cannot overcome
the insolvency limitation on the amount of its claim against
each Guarantor in the First Lien Collateral Agreement.
Mr. Taylor asserts that the First Lien Agent failed to undertake
actions necessary to perfect purported liens, and to present any
basis for concluding that there exists no genuine issue of
material fact or that it is entitled to judgment as a matter
law.
The Committee also seeks summary judgment avoiding the First
Lien Agent's purported liens on:
(a) the Vehicles;
(b) domestic real property, based on the results of a real
property search that shows that the First Lien Agent
failed to record mortgages as required by applicable
state law; and
(c) stock of the Debtors' Brazilian and Mexican subsidiaries.
If the Court is not inclined to deny the First Lien Agent's
request for summary judgment or grant the Committee's request
for summary judgment, the Committee asks the Court to direct the
First Lien Agent to appear for deposition to allow the Committee
to conduct and conclude its discovery to further develop the
record -- before considering each of the Committee's and the
First Lien Agent's requests.
Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers. The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176). James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts. Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors. The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens. When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 29; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
MERIDIAN AUTOMOTIVE: Union Fights for Locked-Out Workers' Jobs
--------------------------------------------------------------
The United Steelworkers said that the Union has contacted
customers of Meridian Automotive Systems, Inc., where over 300
members of USW Local 820L were illegally locked out on
April 21, 2006, and replaced with salaried personnel and
inexperienced temporary strikebreakers.
The Union has invited executives from Volvo Truck, Sterling
Trucks, Kenworth, Peterbilt and other major customers to discuss
potential problems with products now coming out of the Jackson
plant and has urged them to notify Meridian that they support
returning the locked-out workforce to their rightful jobs.
USW District 1 Director Dave McCall said that based on
Meridian's filings in bankruptcy court, the company expects the
Jackson plant to be very profitable over the next several years,
but negotiators for the company have prolonged the lockout by
insisting on major concessions from the USW without any real
justification.
"After years of hard work and sacrifice to establish a
reputation for dependability and quality at the Jackson plant,
the USW believes that these workers and Meridian's customers
deserve better," said McCall. "The USW is frustrated that this
lockout may threaten to destroy the longstanding business
relationships that, in many ways, were built upon our members'
dedication to excellence."
McCall pointed out that Meridian appears to have already started
moving equipment out of the Jackson plant and that many of the
company's replacement workers are known to be in this country
illegally.
Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers. The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176). James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts. Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors. The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens. When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 29; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
===========
P A N A M A
===========
* PANAMA: Will Hold Talks with Venezuela on Oil Supply
------------------------------------------------------
Panama's President Martin Torrijos will discuss with Venezuela's
President Hugo Chavez on June 22 the possible sale of crude and
petroleum products to Panama, Pavel Rondon, the Venezuelan
deputy foreign minister told the state-owned Bolivarian News
Agency.
The two presidents will also discuss the construction of an oil
refinery in Panama and the expansion of a planned natural gas
pipeline between the two countries and Colombia, Bloomberg News
states, citing Minister Rondon.
* * *
Fitch Ratings assigned these ratings on Panama:
Rating Rating Date
------ -----------
Country Ceiling BBB Apr. 8, 2005
Long Term IDR BB+ Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
===============
P A R A G U A Y
===============
* PARAGUAY: Considers Natural Gas Pipeline Venture with Bolivia
---------------------------------------------------------------
Paraguay has agreed to study a joint venture with Bolivia to
build a US$300 million natural gas pipeline, the Associated
Press reports.
According to AP, the joint venture also includes the
construction of gas plants in Paraguay.
AP relates that Andres Soliz, the hydrocarbons minister of
Bolivia, has signed a memorandum of understanding with Panfilo
Benitez, the minister of public works and communications in
Paraguay.
Minister Benitez told AP, "We're breaking 14 years of inertia
and making this reality, thanks to the fact that Bolivia is now
owner of its gas reserves."
AP states that the two nations want to create a bi-national firm
that may build in Paraguay:
-- a liquid gas separation refinery,
-- a thermoelectric plant, and
-- a petrochemical plant.
Bolivia and Paraguay want the firm to export products to Brazil
and Uruguay, AP says.
The technical teams from the two countries will make the details
of the plan in the next 60 days, officials told AP. They will
be inviting firms 180 days after to provide technical and
economic feasibility studies.
* * *
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
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
=======
P E R U
=======
* PERU: Gran Tierra to Explore & Exploit Block 122 for Gas
----------------------------------------------------------
Peru's Block 122 gas field will be explored and exploited by
Gran Tierra Energy, Inc.
Gran Tierra reported that it signed a license contract for the
exploration and exploitation of hydrocarbons in the country,
covering the block on June 8, 2006, between Gran Tierra Energy
Peru and state-run PeruPetro S.A. It will become effective once
ratified by Supreme Decree, which is expected in July, 2006.
Block 122 is located on the eastern flank of the prolific
Maranon Basin of northern Peru, on the crest of the Iquitos
Arch. This is a frontier exploration block covering
approximately 1.2 million acres, in a geologic position that is
analogous to significant petroleum accumulations found elsewhere
in the world. The nearest producing field is the Corrientes
field, with estimated ultimate reserves in excess of 200 million
barrels.
The exploration term is divided into four exploration periods
spread over seven years. The minimum committed work program
includes technical studies, seismic acquisition and the drilling
of one exploration well, with a total financial commitment of
US$5.0 million. The exploitation term for oil is thirty years.
Dana Coffield, President and Chief Executive Officer of Gran
Tierra, stated, "Our entry into Peru essentially completes the
first stage of our growth strategy in Latin America. The
addition of the Peru acreage to our current asset base and
pending acquisitions in Argentina and Colombia creates a diverse
portfolio across three countries. That portfolio provides a
broad base of proven reserves and cash flow, development
opportunities and exploration lands with a mix of risk and
reward profiles, positioning us to move into a second phase of
growth that is focused on drilling activity. Block 122 is a
unique addition to our portfolio: a pure exploration play with
higher risk but huge potential. It is an asset that makes sense
in our expanding company, offering an opportunity for quantum
growth in the medium/long-term to supplement an aggressive
drilling and work campaign in the shorter term."
Gran Tierra Energy, Inc. is an international oil and gas
exploration and production company, headquartered in Calgary,
Canada, incorporated and traded in the United States and
operating in South America.
* * *
Fitch Ratings assigned these ratings on Peru:
Rating Rating Date
------ -----------
Country Ceiling BB Nov. 18, 2004
Long Term IDR BB Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=====================
P U E R T O R I C O
=====================
ADELPHIA COMMS: Files 4th Amended Joint Plan of Reorganization
--------------------------------------------------------------
Adelphia Communications Corporation filed, on June 6, 2006, a
modified Chapter 11 bankruptcy Plan of Reorganization with the
U.S. Bankruptcy Court for the Southern District of New York
relating to the two joint ventures it holds with Comcast
Corporation. This Second Modified Fourth Amended Joint Plan of
Reorganization is a key step in the process to facilitate
completion of the sale of substantially all of Adelphia's assets
to Time Warner NY Cable and Comcast as expeditiously as
possible.
Under this process, Adelphia's majority interests in the joint
ventures, Parnassos and Century-TCI, will be sold to Comcast in
connection with a confirmed Chapter 11 Plan of Reorganization
that provides for payment in full to the creditors of the joint
ventures, while substantially all of Adelphia's remaining Cable
assets will be sold to Comcast and Time Warner NY Cable under a
court-approved asset sale under Section 363 of the Bankruptcy
Code. The sale of Adelphia's interest in both joint ventures
and the sale of the remaining Adelphia assets are expected to
occur contemporaneously.
Distributions to creditors of Adelphia entities outside the
Century-TCI and Parnassos joint ventures will not occur until
after the confirmation of separate plans of reorganization
relating to those entities, which Adelphia intends to seek
following completion of the sales. Until confirmation of such
separate plan of reorganization, the non-joint venture Adelphia
entities will remain in bankruptcy.
As reported in the Troubled Company Reporter on May 29, 2006,
the process is subject to, among other things, agreement with
Time Warner NY Cable and Comcast on amendments to the applicable
purchase agreements. To date the parties have not agreed to
those amendments and there can be no assurance that such
agreement will be reached.
A copy of the Company's Second Modified Fourth Amended Joint
Plan of Reorganization is available for free at:
http://ResearchArchives.com/t/s?ae8
About Adelphia
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 COMMS: Trade Claims Panel Plan Support Pact Draws Flak
---------------------------------------------------------------
At least 23 parties-in-interest object to the Plan Support
Agreement executed by Adelphia Communications Corporation and
its debtor-affiliates and the Ad Hoc Adelphia Operating Company
Trade Claims Committee.
The principal provisions of the Plan Support Agreement include:
(1) Holders of the Allowed Operating Company Trade Claims
will receive payment of simple interest at 8% during the
postpetition period provided that:
* the postpetition interest payable to holders of
Arahova, FrontierVision Holdco and Olympus Parent
Trade Claims will remain subject to the resolution of
the Intercreditor Dispute; and
* postpetition interest payable to the Operating Company
Trade Claims Holders in the AGPH, Arahova,
FrontierVision Holdco and Olympus Parent Debtor Groups
remain subject to the ACOM Debtors' November 2005
Plan;
(2) Holders of Allowed Operating Company Trade Claims will
generally be in cash, with some exceptions;
(3) The Parties will make good faith efforts to obtain the
Official Committee of Unsecured Creditors' support for
the Plan Support Agreement;
(4) The Trade Committee will:
* stay the prosecution of its appeal of the Government
Settlement and to withdraw with prejudice as soon as
practicable after the Effective Date of the Plan; and
* withdraw, without prejudice, its pending discovery
requests against the ACOM Debtors;
(5) The ACOM Debtors will support the payment of the
reasonable fees and expenses of the Trade Committee's
professionals based on the professional's hourly
billings subject to the fee application process set in
the Plan; and
(6) The ACOM Debtors will not oppose any contingent fee
claim below US$5,000,000 filed by the Trade Committee.
A full-text copy of the Plan Support Agreement is available for
free at http://ResearchArchives.com/t/s?84f
The objecting parties are:
a. The Official Committee of Equity Security Holders;
b. The Ad Hoc Committee of Arahova Noteholders;
c. U.S. Bank National Association;
d. W.R. Huff Asset Management Co., L.L.C.;
e. Wilmington Trust Company, as indenture trustee under that
certain Indenture dated November 12, 1996, of Olympus
Communications, L.P. and Olympus Capital Corporation;
f. Silver Point Capital Fund, L.P., Silver Point Capital
Offshore Fund, Ltd., Redwood Master Fund, Ltd. and
Goldman Sachs & Co., as holders of approximately 70% of
the Olympus Parent Notes Claims;
g. the Ad Hoc Committee of ACC Senior Noteholders;
h. the Administrative Agents under certain of the ACOM
Debtors' prepetition credit agreements:
-- Wachovia Bank National Association,
-- the Bank of Nova Scotia
-- Citibank, N.A.,
-- JPMorgan Chase Bank, N.A.,
-- Bank of America, N.A.,
-- Bank of Montreal;
i. the Nominal Agents, namely:
-- 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.,
-- Credit Suisse, Cayman Branch, & the Royal Bank of
Scotland; and
j. the Ad Hoc Committee of Non-Agent Secured Lenders.
Generally, the parties-in-interest note that although the ACOM
Debtors and the Trade Committee propose the Settlement pursuant
to Rule 9019 of the Federal Rules of Bankruptcy Procedure, the
terms of the agreement implicate issues relating to the
confirmation of the Modified Plan, which incorporates the terms
of the Settlement. Accordingly, the Settlement cannot be
approved under the standards of Bankruptcy Rule 9019 alone.
The parties-in-interest further assert that the "settlement"
embodied in the Trade Plan Support Agreement is not reasonable,
equitable or in the best interests of the Debtors' estates
because it would render any Chapter 11 plan put forward by the
Debtors unconfirmable by:
-- granting the Trade Creditors more than 100% of their
Trade Claims;
-- improperly and artificially impairing the Trade
Creditors' Claims for the sole purpose of manufacturing
one impaired class to accept the Plan in violation of
Section 1129(a)(10) of the Bankruptcy Code; and
-- causing the Debtors to propose a plan in bad faith in
violation of Section 1129(a)(3) of the Bankruptcy Code.
The Equity Security Committee argues that any plan is
unconfirmable if it incorporates the Plan Support Agreement,
which will pay certain creditors more than the full amount of
their claims in violation of the absolute priority rule.
Wilmington Trust and the Olympus Parent Noteholders ask the
Court to deny the Plan Support Agreement, which provides for the
payment of unsecured trade claims in the ACC Ops and Olympus
Parent Debtor Groups almost entirely in cash while the Olympus
Parent Notes Claims, which have the same or higher priority as
the trade claims, are to be paid entirely in TWC Class A Common
Stock under the Modified Plan.
David E. Retter, Esq., at Kelley Drye & Warren LLP, in New York,
asserts that the modifications plainly violate both the "unfair
discrimination" and "fair and equitable" requirements of Section
1129(b)(1).
Mr. Retter further argues that even if the Court were to
ultimately approve the Modified Plan terms that incorporate the
Trade Claim Settlement, it should concurrently rule that
acceptance of the Modified Plan by the Olympus Parent Trade
Claim and Other Unsecured Claim Classes cannot satisfy Section
1129(a)(10) since their purported "impairment" is artificially
created.
The ACC Committee notes that the Plan Support Agreement provides
that the ACOM Debtors will:
-- "support" the payment of more than US$2,130,000 in any
fees and expenses of the Trade Committee's counsel; and
-- "not oppose or object to" the payment of a contingency
fee of up to US$5,000,000, less whatever hourly fees, if
any, otherwise are awarded, in each case on application
to the Court under Section 503(b) of the Bankruptcy Code.
The ACC Committee opposes, and will object to, the allowance of
any fees of the Trade Committee's counsel, particularly the
payment of any contingency fee, because:
-- the burden of the proposed contingency fee would be borne
not by the Trade Committee's members and constituents but
by the ACC Committee members and other creditors of ACC,
all of whose recoveries already have been diminished by
the agreement to pay postpetition interest as set forth
in the Trade Support Agreement;
-- contingency fees in bankruptcy cases must be approved
under Section 328 before retention, not after the fact;
and
-- there is no statutory basis for awarding a contingency
fee because the Trade Committee members are not otherwise
obligated to their counsel for the fee.
Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- 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. 132;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
MUSICLAND HOLDING: Committee Has Until July 3 to File Claims
------------------------------------------------------------
Musicland Holding Corp., its debtor-affiliates, the Official
Committee of Unsecured Creditors and the Secured Trade Creditors
stipulate that the Creditors Committee's time to file any claim
against the Secured Trade Creditors under the DIP Order is
further extended until July 3, 2006.
The Creditors Committee reserves the right to seek the U.S.
Bankruptcy Court for the Southern District of New York's
permission for examination of the Secured Trade Creditors,
provided that the Informal Committee of Secured Trade Vendors'
rights to object to the examination of its members are reserved.
The Court approves the parties' Stipulation.
Headquartered in New York City, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products. The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064). James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts. Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors. When the Debtors filed for
protection from their creditors, they estimated more than US$100
million in assets and debts. (Musicland Bankruptcy News, Issue
No. 12; Bankruptcy Creditors' Service, Inc., 215/945-7000)
=================================
T R I N I D A D & T O B A G O
=================================
BWIA WEST: Four Flights Cancelled After Workers Fail to Show Up
---------------------------------------------------------------
BWIA West Indies cancelled four of its flights on Saturday after
a number of its employees called in sick, the Trinidad and
Tobago Express reports.
The move is alleged to be part of a strategy to pressure the
BWIA management to settle outstanding wage negotiations,
according to the Caribbean Net News.
However, Curtis John -- the president general of Aviation,
Communication and Allied Workers Union aka ACAWU -- denied to
the Express that the increase in sick leave was part of the
protest action on Thursday and Friday.
Dionne Ligoure, the corporate communications manager of BWIA,
told the Express via telephone on Sunday that these flights were
cancelled due to a rise in sick leave:
-- Miami,
-- Kingston,
-- New York, and
-- London.
All passengers had been accommodated and reallocated to new
services, the Express relates, citing Ms. Liquore. Some had to
be accommodated overnight at hotels.
BWIA said in a statement that it would be bringing forward the
June 13 flight BW526, which was scheduled to leave Trinidad at 9
p.m., to nine hours, in an effort to bring flight schedule bank
in line after operations were affected over the weekend. BW526
would leave earlier at 12 noon.
All morning services on Sunday had departed and that the
afternoon services were scheduled to depart according to the
schedule, BWIA said in a statement.
The Caribbean Net relates that BWIA officials resorted to hiring
Service Air to deal with transportation of passengers over the
weekend. The union officials had alleged that it was illegal
and contrary to the collective bargaining process.
BWIA West Indies has also wet leased airlines Miami Air and
North American Air when several of its employees called in sick
over the weekend, Dionne Ligoure, the airline corporate
communications manager, told Trinidad and Tobago Express.
The Express says the wet lease includes the lease of:
-- the aircraft,
-- flight crew,
-- maintenance crew, and
-- insurance.
According to the Express, the leased aircrafts will handle
flights to New York and London.
The two airlines were wet leased as a contingency to ensure that
client inconvenience is minimized and to get them to their
destinations as quickly as possible, the Express reports, citing
Mr. Ligoure.
The Express relates that the wet lease started on June 12, yet
no time frame has been given for the lease period. It usually
runs from one month to two years.
The union is concerned over the wet lease of aircraft to fly
routes operated by BWIA workers, The Express states, citing Mr.
John.
The Express says that Mr. John said, "We want to know what will
happen to the staff that were previously operating these
flights." He said that he heard that the airline management
plans to sack workers as early as June 15 due to redundancies.
The Express recalls that disgruntled BWIA workers held
demonstrations outside BWIA's offices in Piarco and Port of
Spain last week over stalled wage negotiations.
According to the Caribbean Net, workers say they can't wait any
longer for an agreed compensation package, threatening to
intensify action against BWIA if an agreement is not reached
soon.
BWIA was founded in 1940, and for more than 60 years has been
serving the Caribbean islands from Trinidad and Tobago, the hub
of the Americas, linking the twin island republic and many other
Caribbean islands with North America, South America, the United
Kingdom and Europe.
The airline has reportedly been losing US$1 million a week due
to poor operational management. An employee survey revealed
that lack of responsibility by the management is a major issue
in the company.
MIRANT CORP: Plans to Pay US$4 Million More to Seven Firms
----------------------------------------------------------
Mirant Corporation and its debtor-affiliates, the Official
Committee of Unsecured Creditors of Mirant Corporation, et al.,
and the Official Committee of Unsecured Creditors of Mirant
Americas Generation ask Judge Lynn of the U.S. Bankruptcy Court
for the Northern District of Texas to approve fee enhancements
for certain core counsel.
Representing the Debtors, Robin Phelan, Esq., at Haynes and
Boone LLP, in Dallas, Texas, notes that the Core Counsel are:
(i) the firms that join and support the Motion Seeking
Approval of Fee Enhancements:
* White & Case LLP;
* Haynes and Boone, LLP;
* Shearman & Sterling, LLP;
* Andrews & Kurth, LLP;
* Cadwalader, Wickersham & Taft LLP; and
* Cox & Smith; and
(ii) Brown Rudnick Berlack Israels LLP and Hohmann, Taube &
Summers, L.L.P.
Cadwalader Wickersham and Cox & Smith will withdraw their
application for fee enhancement, Mr. Phelan relates.
Mr. Phelan tells the Court that because of the "extraordinary
and outstanding" result in the Debtors' Chapter 11 cases, Mirant
Corporation is prepared to pool US$4,000,000 for the counsel fee
enhancements, which will be divided among the Core Counsel.
Mr. Phelan asserts that it was the Core Counsel that negotiated
the agreements among the constituencies that underlie the
ultimate formulation and implementation of the Debtors' Plan.
According to Mr. Phelan, the US$4,000,000 pool will be
distributed pro rata based on the Core Counsel's fees incurred
in the case, or utilizing other equitable distribution, as the
Court deems proper.
The Debtors and the two Committees will not agree to pay more
than US$4,000,000 for fee enhancements to Core Counsel.
The Debtors and the two Committees disagree with the Official
Committee of Equity Holders that the results achieved for equity
holders were due to the services rendered solely by its counsel,
Mr. Phelan notes.
The result for the equity holders was based on a combination of
a number of factors, including the efforts of Core Counsel,
Mirant personnel, and the Court and its staff, Mr. Phelan points
out. "It is simply not possible to identify one group of
professionals that should receive the credit for the recoveries
in [the Debtors'] cases."
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- 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 January 3, 2006. Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring. Shearman & Sterling LLP
represents the Official Committee of Unsecured Creditors. 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. (Mirant Bankruptcy News, Issue No. 98; Bankruptcy
Creditors' Service, Inc., 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant Corporation and said the outlook is
stable.
MIRANT CORP: Settles Southern Maryland Electric FFC Pact Dispute
----------------------------------------------------------------
In the 1980s, Southern Maryland Electric Cooperative, Inc., and
Potomac Electric Power Cooperative planned to construct a
77-megawatt combustion turbine generating station in Prince
George's County, Maryland. The Facility Site was owned by
PEPCO.
To put up the Facility, PEPCO and SMECO entered into several
agreements, including a Facility and Capacity Credit Agreement
and a Site Lease Agreement.
The Site Lease and the FCC Agreement have not been amended or
terminated and remains in full force and effect.
The APSA
On June 7, 2000, PEPCO and Old Mirant entered into an Asset
Purchase and Sale Agreement for Generating Plants and Related
Assets, by which Old Mirant -- MC 2005, LLC, formerly known as
Mirant Corporation -- and certain affiliates purchased PEPCO's
electric generation facilities.
Consequently, Old Mirant assigned its rights under the APSA with
respect to the FCC Agreement to Mirant Peaker, LLC, and with
respect to the Site Lease to Mirant Chalk Point, LLC.
PEPCO assigned its rights under the FCC Agreement to Mirant
Peaker and its rights under the Site Lease to Mirant Chalk
Point. SMECO consented to PEPCO's assignment of the SMECO
Agreements.
The Dispute
Mirant Peaker, Mirant Chalk Point, and Old Mirant commenced an
adversary proceeding against SMECO and PEPCO in the Bankruptcy
Court on March 15, 2004.
The Mirant Parties asked the Bankruptcy Court to declare that:
(i) the FCC Agreement constitutes an unexpired lease of
non-residential real property within the meaning of
Section 365 of the Bankruptcy Code; and
(ii) if Mirant Peaker, as successor to PEPCO, were to reject
the FCC Agreement, with approval of the Court, or if
the FCC Agreement is deemed rejected under Section
365(d)(4), any of SMECO's claim arising from the
rejection would be limited by the provisions of Section
502(b)(6) of the Bankruptcy Code.
The Bankruptcy Court ruled that the FCC Agreement is a lease of
real property for purposes of Section 502(b)(6) of the
Bankruptcy Code.
SMECO and PEPCO took an appeal from the SMECO Order to the
District Court.
The Debtors also asked the Bankruptcy Court for permission to
reject the SMECO Agreements and to disgorge certain postpetition
payments made to SMECO.
In December 2005, the Debtors filed another adversary action
with the Bankruptcy Court against PEPCO and SMECO seeking a
ruling that Mirant's postpetition payments with SMECO constitute
improper payments, hence, are avoidable.
PEPCO and SMECO objected to the Motion to Reject and the
December 2005 Complaint, which are all currently stayed.
The Settlement Agreement
To resolve all matters, the New Mirant Entities ask the Court to
approve a settlement agreement entered into between Southern
Maryland Electric Cooperative, Inc., and the Mirant Settling
Parties:
* Mirant Corporation;
* MC 2005, LLC;
* Mirant Mid-Atlantic, LLC;
* Mirant Potomac River, LLC;
* Mirant Chalk Point, LLC;
* Mirant Piney Point, LLC;
* Mirant MD Ash Management, LLC; and
* the MC Plan Trust.
The salient terms of the Settlement Agreement are:
(a) Mirant Chalk Point will assume and agree to cure all
defaults under the SMECO Agreements, other than defaults
that constitute Released Claims Against Mirant; and
agree to discharge and otherwise perform when due,
without recourse to SMECO or PEPCO, all obligations and
liabilities due to or for the benefit of SMECO;
(b) Only Mirant Chalk Point will have obligations to SMECO
under the SMECO Agreements. The other Mirant Settling
Parties will have no liability to SMECO with respect to
the SMECO Agreements or any related obligations; and
(c) On the effective date of the Settlement Agreement, SMECO
and the Mirant Settling Parties will dismiss with
prejudice all pending appeals, adversary actions or
other contested matters relating to any claim, demand,
action or cause of action released pursuant to the
Settlement Agreement.
A full-text copy of the Settlement Agreement between Mirant and
SMECO is available for free at:
http://ResearchArchives.com/t/s?b09
Ian T. Peck, Esq., at Haynes and Boone, LLP, in Dallas, Texas,
notes that on May 30, 2006, PEPCO and the Mirant Setting Parties
entered into a separate Settlement Agreement and Release
relating to certain disputes between them, including disputes
relating to the SMECO Agreements.
Mr. Peck says approval of the Settlement Agreement with SMECO is
a condition to the effectiveness of the PEPCO Settlement
Agreement. SMECO's Settlement Agreement is part of the overall
resolution of the PEPCO disputes.
Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- 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 January 3, 2006. Thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring. Shearman & Sterling LLP
represents the Official Committee of Unsecured Creditors. 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. (Mirant Bankruptcy News, Issue No. 98; Bankruptcy
Creditors' Service, Inc., 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant Corporation and said the outlook is
stable.
MIRANT CORP: Withdraws Proposal to Purchase NRG Energy
------------------------------------------------------
Mirant Corporation withdrew its proposal to acquire
NRG Energy, Inc.
Mirant Chairman and Chief Executive Officer Edward R. Muller
said, "We are disappointed that NRG was unwilling to sit down
with us to discuss what would have been a compelling opportunity
to create significant value for both companies' shareholders. It
is clear, however, that a long and contested pursuit is not in
the best interests of Mirant and its shareholders and, as a
result, we are withdrawing our proposal to acquire NRG. We will
continue our efforts to create value for Mirant's
shareholders."
Mirant, according to the Associated Press, claimed that the New
Jersey based energy producer is unfairly rejecting its nearly
US$8 billion takeover bid by using a "transaction ploy" to turn
aside the offer by alleging that Mirant is using confidential
information from NRG's former financial adviser.
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 (NYSE:
MIR) -- 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 January 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.
* * *
As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant Corporation and said the outlook is
stable.
=============
U R U G U A Y
=============
* URUGUAY: Senate Rejects Free Trade Accord with United States
--------------------------------------------------------------
Uruguay's senate will not sign a free trade agreement with the
United States, Green Left Weekly reports, citing Hugo Rodriguez,
the secretary of the Chamber of Senators.
"But we are in a difficult situation," Mr. Rodriguez told Green
Left in a brief interview after the "Socialism in Latin America"
seminar in Quito, Ecuador.
Green Left relates that Mr. Rodriguez said, "Uruguay doesn't
have oil, only cattle. And, although we are members of
Mercosur, Argentina and Brazil have locked us out of the meat
market."
Mr. Rodriguez said that Uruguay has a massive national debt
amounting to billions of US dollars, Green Left states.
Because of these problems, a massive campaign for Uruguay's
signing of the free trade accord was launched, Green Left says,
quoting Mr. Rodriguez.
However, Uruguay already has an economic accord with Venezuela,
allowing the country to exchange cattle for oil, as well as
trade agreements that include communications and a gas pipeline,
Mr. Rodriguez explained to Green Left.
* * *
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
=================
CITGO: Valero No Longer Interested in Buying Houston Refinery
-------------------------------------------------------------
Valero Energy Corp. told the San Antonio Business Journal that
it will not pursue with buying Lyondell-Citgo Refining L.P. -- a
joint venture of Citgo Petroleum Corporation and Lyondell
Chemical Co. in Houston, Texas.
As reported in the Troubled Company Reporter on May 25, 2006,
Bill Klesse, Valero's Chief Executive, said at the UBS Global
Oil & Gas Conference that his firm believes it would be able to
buy the 268,000 barrel per day refinery.
However, Valero executives said in a presentation to investors
on June 12 disclosed that the company is no longer interested in
the purchase. Valero did not say the reason for its withdrawal.
Headquartered in Houston, Texas, CITGO Petroleum Corporation
-- http://www.citgo.com/-- is owned by PDV America, an
indirect, wholly owned subsidiary of Petroleos de Venezuela
S.A., the state-owned oil company of Venezuela.
PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical and coal industry,
as well as planning, coordinating, supervising and controlling
the operational activities of its divisions, both in Venezuela
and abroad.
* * *
As reported at the Troubled Company Reporter on Feb. 16, 2006,
Standard and Poor's Ratings Services assigned a 'BB' rating on
CITGO Petroleum Corp.
* VENEZUELA: Will Hold Talks with Panama for Sale of Oil
--------------------------------------------------------
Venezuela's President Hugo Chavez will discuss on June 22 with
Panama's President Martin Torrijos on the possible sale of crude
and petroleum products to Panama, Pavel Rondon, the Venezuelan
deputy foreign minister told the state-owned Bolivarian News
Agency.
The two presidents will also discuss the construction of an oil
refinery in Panama and the expansion of a planned natural gas
pipeline between the two countries and Colombia, Bloomberg
states, citing Minister Rondon.
* * *
Fitch Ratings assigned these ratings on Panama:
Rating Rating Date
------ -----------
Country Ceiling BBB Apr. 8, 2005
Long Term IDR BB+ Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
* * *
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
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Mae Hechanova, and Christian Toledo, Editors.
Copyright 2006. All rights reserved. ISSN 1529-2746.
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