/raid1/www/Hosts/bankrupt/TCRLA_Public/060619.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, June 19, 2006, Vol. 7, Issue 120
Headlines
A R G E N T I N A
AGROPECUARIA INDIA: Seeks Court Approval to Restructure Debts
ASOCIACION DEPORTIVA: Claims Verification Deadline Is on July 31
CEREALES DARREGUEIRA: Trustee Verifies Claims Until July 17
CRISTAL AUTO: Moves Claims Verification Deadline to July 3
DISOR SA: Verification of Proofs of Claim Ends on August 1
DULCE REINA: Sets July 20 as Last Day to Verify Claims
ELEMCO SA: Verification of Proofs of Claim Will End on July 21
FIDEICOMISOS FINANCIEROS: Moody's LatAm Puts CC Ratings on Debts
FINANCIEROS GALTRUST: Moody's LatAm Puts D Ratings on Debts
OFIRED SRL: Trustee Won't Validate Proofs of Claim After June 26
OPTIMUS SA: Estudio Gabilondo y Asociados Appointed as Trustee
PETROBRAS ENERGIA: Selling 50% Citelec Stake to Eton for US$54M
PETROBRAS ENERGIA: S&P Says Citelec Sale Won't Affect B Rating
SUMETAL SACIFI: Last Day for Verification of Claims Is on Aug. 4
TRANSENER: Petrobras Selling Citelec Stake to Eton for US$54MM
TRANSENER SA: S&P Says B Rating Is Unaffected by Citelec Sale
B A H A M A S
WINN-DIXIE: Wants Bowdoin Square Claims Compromise Approved
WINN-DIXIE: Wants Compromise Pact With Schreiber Foods Approved
B E R M U D A
ASIA PACIFIC: Court Schedules Winding-Up Hearing on June 30
B.C.M. Holdings: Sets Final General Meeting on July 12
BARCLAYS CAPITAL: Schedules Final General Meeting on July 7
BELTSHIPS INVESTMENTS: Creditors Must Present Claims by June 28
BRISTOL REINSURANCE: Paying Final Dividend to Creditors
HYPOGUARD DEVELOPMENT: Filing of Proofs of Claim Ends on June 28
HYPOGUARD HOLDING: Proofs of Claim Filing Will End on June 28
INTELSAT LTD: PanAmSat Buy Cues Fitch to Up Issuer Rating to B
LORAL SPACE: Unit Launches Satellite-Based Contingency Services
MCEWANS LIMITED: Final General Meeting Is Set for July 10
B R A Z I L
AMERICAN AXLE: Moody's Rates New US$200-Mil. Term Loan at Ba3
BANCO BRADESCO: Inks Operating Accord with GBarbosa
BANCO NACIONAL: Creates Procaminhoneiro to Fund Transpo Sector
BANCO NACIONAL: Grants BRL198.7-Mil Loan for Acesita's Expansion
BANCO NACIONAL: Grants BRL313M Loan to Expand Sao Paulo's Subway
BANCO PANAMERICANO: Moody's Puts D- Financial Strength Rating
BRAZILIAN SECURITIES: Moody's LatAm Puts (P)Ba2 Rating on Certs.
CAIXA ECONOMICA: Awards BRL77 Million ATM Accord to Perto
C A Y M A N I S L A N D S
AHFP CUMBERLAND: Creditors Must File Proofs of Claim by July 15
AHFP DECCAN: Sets July 15 as Last day to File Proofs of Claim
SANWA CAYMAN FINANCE: Filing of Proofs of Claim Ends on July 14
SANWA CAYMAN INT'L: Proofs of Claim Must be Filed by July 14
SANWA CAYMAN INVESTMENT: Last Day to File Claims Is on July 14
SANWA CAYMAN MONETARY: Proofs of Claim Filing Ends on July 14
SANWA CAYMAN SECURITIES: Claims Filing Will End on July 14
SANWA CAYMAN TREASURY: Filing of Proofs of Claim Ends on July 14
SF BONDS: Creditors Have Until July 14 to Submit Proofs of Claim
TRINITY FINANCE: Sets July 14 Deadline to File Proofs of Claim
C H I L E
SCOTIABANK: Chile Unit Needs US$1 Billion for Expansion Plans
C O L O M B I A
* COLOMBIA: Starting Pipeline Works with Venezuela on July 8
D O M I N I C A N R E P U B L I C
FALCONBRIDGE LTD: Xstrata Gets Canadian Anti-Trust Clearance
E C U A D O R
* ECUADOR: Posts US$257 Mil. Budget Deficit in First Four Months
E L S A L V A D O R
* EL SALVADOR: Gets IDB US$5-Mil Loan for Microfinance Expansion
G U A T E M A L A
* GUATEMALA: Panama Accuses Country of Misrepresentation
* GUATEMALA: Posts GTQ442MM First Quarter Banking Sector Profits
H O N D U R A S
* HONDURAS: Will Launch Auction for Construction of Aerodrome
J A M A I C A
KAISER ALUMINUM: Court Signs Order Reducing Bonneville Claims
SUGAR COMPANY: Cabinet to Finalize Privatization of Assets
SUGAR COMPANY: Stakeholders Worry Despite Government Assurances
M E X I C O
AXTEL SA: Balks at National "Calling Party Pays" Scheme
DELTA AIR: Will Launch Flights to Mexico on December 1
GRUPO MEXICO: May Resolve Strike If Government Intervenes
J.L. FRENCH: Court Extends Lease Decision Period to Sept. 8
MERIDIAN AUTOMOTIVE: Disclosure Statement Hearing on June 27
MERIDIAN AUTOMOTIVE: Informal Committee Says Plan Unconfirmable
MERIDIAN AUTOMOTIVE: Wants Aug. 22 Confirmation Hearing Fixed
* MEXICO: Panama Allocates Puerto Armuelles as Site for Refinery
N I C A R A G U A
* NICARAGUA: Secures US$5MM from IDB for Microfinance Expansion
P A N A M A
* PANAMA: Construction Sector Posts US$164 Mil. in Investments
* PANAMA: Allocates Puerto Armuelles for Mexican Refinery
* PANAMA: Sets US$568 Mil. 2007 Budget for Canal Expansion
P U E R T O R I C O
ADELPHIA COMMS: Court Approves Century/ML Settlement Agreement
DRESSER INC: S&P Lowers Corporate Credit Rating to B from B+
SAFETY-KLEEN: S&P Rates US$395M Senior Secured Facility at BB-
ZALE CORP: Board Ends Potential Merger Talks with Signet Group
T R I N I D A D & T O B A G O
MIRANT CORP: Pirate Capital Wants Advisor Hired to Pursue Sale
U R U G U A Y
* URUGUAY: State Bank Posts UYU700 Mil. Profits in Five Months
V E N E Z U E L A
* VENEZUELA: Will Start Pipeline Construction with Colombia
- - - - -
=================
A R G E N T I N A
=================
AGROPECUARIA INDIA: Seeks Court Approval to Restructure Debts
-------------------------------------------------------------
A Buenos Aires court is reviewing the merits of Agropecuaria
India Muerta S.R.L.'s petition to reorganize its business.
Infobae says that the company filed the request following
cessation of debt payments.
Reorganization will allow Agropecuaria India to avoid bankruptcy
or liquidation of its assets by negotiating a settlement with
its creditors.
The debtor can be reached at:
Agropecuaria India Muerta S.R.L.
Parana 378
Buenos Aires, Argentina
ASOCIACION DEPORTIVA: Claims Verification Deadline Is on July 31
----------------------------------------------------------------
Asociacion Deportiva Berazategui Sociedad Civil's creditors are
required to present proofs of their claims to Norma Diez, the
court-appointed trustee, until July 31, 2006, Infobae reports.
Creditors who fail to submit the required documents will not
receive any post-liquidation distributions.
Ms. Diez will present individual reports based on the verified
claims on Sept. 13, 2006. A general report that contains an
audit of Asociacion Deportiva's accounting and banking records
will follow on Oct. 27, 2006.
The trustee can be reached at:
Norma Diez
Brown 806 Quilmes
Buenos Aires, Argentina
CEREALES DARREGUEIRA: Trustee Verifies Claims Until July 17
-----------------------------------------------------------
Ana Maria Blugerman, the court-appointed trustee for the
bankruptcy case of Cereales Darregueira S.A., will verify
creditors' proofs of claim until July 17, 2006.
The verified claims will be used as basis for creating
individual reports that are due in court on Sept. 12, 2006.
A general report that contains an audit of Cereales
Darregueria's accounting and banking records is expected on
Oct. 27, 2006.
The trustee can be reached at:
Ana Maria Blugerman
Parana 774
Buenos Aires, Argentina
CRISTAL AUTO: Moves Claims Verification Deadline to July 3
----------------------------------------------------------
Court No. 6 in Buenos Aires moved the deadline to July 3, 2006,
for verification of creditors' proofs of claim against Cristal
Auto SA. The deadline was previously set for June 16, 2006.
Guido Mario Salvadori, the court-appointed trustee, will
validate the claims.
Argentine bankruptcy law requires the trustee to present in
court individual reports based on the verified claims and a
general report that contains an audit of Cristal Auto's
accounting and banking records. The dates of submission of
these reports are yet to be disclosed.
As reported in the Troubled Company Reporter-Latin America on
May 24, 2006, Court No. 6 had converted the company's
reorganization case into bankruptcy, which means the debtor's
assets will be sold and proceeds distributed to creditors.
Clerk No. 12 assists the court in this case.
The debtor can be reached at:
Cristal Auto S.A.
La Rioja 1451
Buenos Aires, Argentina
The trustee can be reached at:
Guido Mario Salvador
Junin 55
Buenos Aires, Argentina
DISOR SA: Verification of Proofs of Claim Ends on August 1
----------------------------------------------------------
Court-appointed trustee Lydia Elsa Albite will validate
creditors' proofs of claim against bankrupt company Disor S.A.
until Aug. 1, 2006, Infobae reports.
Ms. Albite will also present individual reports based on the
verified claims on Sept. 13, 2006. A general report that
contains an audit of Disor's accounting and banking records is
expected on Oct. 26, 2006.
A Buenos Aires court handles the company's bankruptcy case.
The debtor can be reached at:
Disor S.A.
Pujol 1495
Buenos Aires, Argentina
The trustee can be reached at:
Lydia Elsa Albite
Tacuari 119
Buenos Aires, Argentina
DULCE REINA: Sets July 20 as Last Day to Verify Claims
------------------------------------------------------
The verification of creditors' proofs of claim for Dulce Reina's
insolvency case will end on July 20, 2006, Infobae states.
Court No. 21 in Buenos Aires appointed Leon Sergio Fuks as
trustee. He will examine creditors' proofs of claim and submit
individual reports on Sept. 15, 2006. He will also present a
general report in court on Oct. 31, 2006.
On May 14, 2007, the company's creditors will vote on a debt
settlement scheme to be proposed by Dulce Reina.
As reported in the Troubled Company Reporter on Apr. 11, 2006,
Dulce Reina filed a petition to reorganize its business after it
defaulted on its debts on Oct. 21, 2005.
Clerk No. 41 assists the court on the proceeding.
The debtor can be reached at:
Dulce Reina S.R.L.
Avenida Asamblea 264
Buenos Aires, Argentina
The trustee can be reached at:
Leon Sergio Fuks
Bouchard 644
Buenos Aires, Argentina
ELEMCO SA: Verification of Proofs of Claim Will End on July 21
--------------------------------------------------------------
The verification of creditors' proofs of claim against Elemco
S.A. will end on July 21, 2006. The verified claims will be
submitted as individual reports in court on Sept. 15, 2006. A
general report that contains an audit of the company's
accounting and banking records is expected on Oct 27, 2006.
An informative assembly is scheduled for May 2, 2007, wherein
Elemco's creditors will cast their votes on a settlement
proposal that the company will lay on the table.
Buenos Aires Court No. 18 approved Elemco's petition to
reorganize, which was filed after defaulting on its debt
payments on Apr. 4, 2006. Bernardino Kopcow was appointed as
trustee to handle the reorganization of Elemco's business.
Clerk No. 35 assists the court on this case.
The debtor can be reached at:
Elemco S.A.
Adolfo Asina 815
Buenos Aires, Argentina
The trustee can be reached at:
Bernardino Kopcow
Lavalle 1527
Buenos Aires, Argentina
FIDEICOMISOS FINANCIEROS: Moody's LatAm Puts CC Ratings on Debts
----------------------------------------------------------------
Moody's Latin America assigned these ratings to Fideicomisos
Financieros HPDA's debts:
-- Titulos de deuda Clase 1 for US$94,365,000
* Last due: Dec. 31, 2009
* Rated date: June 15, 2006
* Rate: CC
-- HPDA Clase 2 for US$94,365,000
* Last due: June 30, 2009
* Rated date: June 15, 2006
* Rate: CC
-- HPDA Clase 3 for US$62,500,000
* Last due: Dec. 31, 2009
* Rated date: June 15, 2006
* Rate: CC
FINANCIEROS GALTRUST: Moody's LatAm Puts D Ratings on Debts
-----------------------------------------------------------
Moody's Latin America assigned D ratings on Fideicomisos
Financieros Galtrust I's debts:
-- Titulos de Deuda Clase B for US$200,000,000
-- Certificados de Participaci¢n for US$200,000,000
OFIRED SRL: Trustee Won't Validate Proofs of Claim After June 26
----------------------------------------------------------------
The court-appointed trustee, Nora Silvia Rossi, for the
bankruptcy case of Ofired S.R.L. won't validate creditors'
proofs of claim after June 26, 2006.
Ms. Rossi will present the validated claims in court as
individual reports on Aug. 22, 2006. The trustee will also
submit a general report on the case on Oct. 3, 2006.
A court in Rosario, Santa Fe, handles the proceeding.
The debtor can be reached at:
Ofired S.R.L.
Paraguay 727, Rosario
Santa Fe, Argentina
The trustee can be reached at:
Nora Silvia Rossi
Rueda 255, Rosario
Santa Fe, Argentina
OPTIMUS SA: Estudio Gabilondo y Asociados Appointed as Trustee
--------------------------------------------------------------
A court in Santa Fe appointed Estudio Gabilondo y Asociados to
supervise the reorganization proceeding of Optimus S.A.
As trustee, Estudio Gabilondo y Asociados will:
-- verify creditors' proofs of claim; and
-- prepare and present individual and general reports in
court after the claims are verified.
The deadline for verification of claims and the dates of
submission of the reports are yet to be disclosed.
An informative assembly will also be scheduled wherein Optimus'
creditors can cast their votes on a settlement plan.
The debtor can be reached at:
Optimus S.A.
Paraguay 975 Rosario
Santa Fe, Argentina
The trustee can be reached at:
Estudio Gabilondo y Asociados
Mitre 959
Santa Fe, Argentina
PETROBRAS ENERGIA: Selling 50% Citelec Stake to Eton for US$54M
---------------------------------------------------------------
Petrobras Energia Participaciones, the Argentine subsidiary of
Petroleo Brasileiro SA, has agreed to sell its 50% stake in
Citelec to Eton Park Capital Management for US$54 million, the
company disclosed in a statement to the Buenos Aires stock
exchange.
Citelec, the holding company of Argentina's biggest transmission
firm, Transener SA, holds a 52.67% stake.
The sale of Citelec is in accordance with Petroleo Brasileiro's
compliance to an anti-monopoly ruling issued by Argentina's
National Competition Defense Commission when the firm bought 58%
of Petrobras Energia in 2003.
According to Business News Americas, Petrobras has declined a
US$16 million debt assumption offer made by the Dolphin Group,
which owns 50% of Citelec.
About Transener
Compania de Transporte de Energia Electrica en Alta Tension aka
Transener owns the national network of high-voltage power
transmission lines, which consist of nearly 8,800km of lines
together with the approximately 5,500km in its Transba
subsidiary's network.
On Feb. 23, 2006, Standard & Poor's Ratings Services raised its
local and foreign currency ratings on Argentina's largest
electricity transmitter, Compania de Transporte de Energia
Electrica en Alta Tension Transener S.A. aka Transener to 'B-'
from 'CCC+', and removed the ratings from CreditWatch with
positive implications.
About Petrobras Energia
Petrobras Energia Participaciones has natural gas and oil
operations in Argentina, Bolivia, Ecuador, Peru and Venezuela.
It is the second most heavily weighted company on Argentina's
Merval stocks index.
On Feb. 3, 2006, Standard & Poor's Ratings Services said that
its ratings on Petrobras Energia S.A. (PESA; B/Watch Neg/--)
will not be affected by the company's announced accounting
adjustment that will be reflected in the financial
statements as of Dec. 31, 2005.
PETROBRAS ENERGIA: S&P Says Citelec Sale Won't Affect B Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that its rating on
Petrobras Energia S.A. (FC: B/Stable/--) are not affected by the
recent announcement that the Petroleum Society of Australia or
PESA has reached an agreement to sell its 50% equity stake in
Citelec S.A. to Eton Park Capital Management for about US$54
million plus a participation in the potential earnings deriving
from the future global renegotiation of Transener's concession
contract.
Citelec S.A. is a holding company that owns 52.65% of Transener,
the largest power transmission company in Argentina. The
transaction is subject to regulatory approval. In the case of
PESA, since the divestment was already expected, and given that
Standard & Poor's does not consider such a stake as a
significant driver of the company's profitability or cash
generation, PESA's credit quality would not be affected.
Meanwhile, Standard & Poor's current rating on Transener does
not incorporate any credit enhancement deriving from potential
parent support.
SUMETAL SACIFI: Last Day for Verification of Claims Is on Aug. 4
----------------------------------------------------------------
Mario Krasnansky, the court-appointed trustee for the bankruptcy
case of Sumetal Sacifi, will verify creditors' proofs of claim
until Aug. 4, 2006.
La Nacion relates that Court No. 9 in Buenos Aires declared
Sumetal Sacifi bankrupt at the behest of Aga S.A., which it owes
US$13,144.65.
Clerk No. 17 assists the court in this case.
The debtor can be reached at:
Sumetal Sacifi
Viamonte 640
Buenos Aires, Argentina
The trustee can be reached at:
Mario Krasnansky
Juan Ramirez de Velasco 813
Buenos Aires, Argentina
TRANSENER: Petrobras Selling Citelec Stake to Eton for US$54MM
--------------------------------------------------------------
Petrobras Energia Participaciones SA, the Argentine subsidiary
of Petroleo Brasileiro SA, has agreed to sell its 50% stake in
Citelec to Eton Park Capital Management for US$54 million, the
company disclosed in a statement to the Buenos Aires stock
exchange.
Citelec, the holding company of Argentina's biggest transmission
firm, Transener SA, holds a 52.67% stake.
The sale of Citelec is in accordance with Petroleo Brasileiro's
compliance to an anti-monopoly ruling issued by Argentina's
National Competition Defense Commission when the firm bought 58%
of Petrobras Energia in 2003.
According to Business News Americas, Petrobras has declined a
US$16 million debt assumption offer made by the Dolphin Group,
which owns 50% of Citelec.
About Petrobras Energia
Petrobras Energia Participaciones has natural gas and oil
operations in Argentina, Bolivia, Ecuador, Peru and Venezuela.
It is the second most heavily weighted company on Argentina's
Merval stocks index.
On Feb. 3, 2006, Standard & Poor's Ratings Services said that
its ratings on Petrobras Energia S.A. (PESA; B/Watch Neg/--)
will not be affected by the company's announced accounting
adjustment that will be reflected in the financial
statements as of Dec. 31, 2005.
About Transener
Compania de Transporte de Energia Electrica en Alta Tension aka
Transener owns the national network of high-voltage power
transmission lines, which consist of nearly 8,800km of lines
together with the approximately 5,500km in its Transba
subsidiary's network.
On Feb. 23, 2006, Standard & Poor's Ratings Services raised its
local and foreign currency ratings on Argentina's largest
electricity transmitter, Compania de Transporte de Energia
Electrica en Alta Tension Transener S.A. aka Transener to 'B-'
from 'CCC+', and removed the ratings from CreditWatch with
positive implications.
TRANSENER SA: S&P Says B Rating Is Unaffected by Citelec Sale
-------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Compania de Transporte de Energia Electrica en Alta Tension aka
Transener S.A. (B-/Stable/--) are not affected by the recent
announcement that Petroleum Society of Australia aka PESA has
reached an agreement to sell its 50% equity stake in Citelec
S.A. to Eton Park Capital Management for about US$54 million
plus a participation in the potential earnings deriving from the
future global renegotiation of Transener's concession contract.
Citelec S.A. is a holding company that owns 52.65% of Transener,
the largest power transmission company in Argentina. The
transaction is subject to regulatory approval. In the case of
PESA, since the divestment was already expected, and given that
Standard & Poor's does not consider such a stake as a
significant driver of the company's profitability or cash
generation, PESA's credit quality would not be affected.
Meanwhile, Standard & Poor's current rating on Transener does
not incorporate any credit enhancement deriving from potential
parent support.
=============
B A H A M A S
=============
WINN-DIXIE: Wants Bowdoin Square Claims Compromise Approved
-----------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Middle District of Florida to approve a
compromise of claims filed by Bowdoin Square, LLC:
(a) Claim No. 9939 for US$1,267,412 against Winn-Dixie
Stores, Inc.; and
(b) Claim No. 9940 for US$1,267,412 against Winn-Dixie
Montgomery, Inc.
D. J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP,
in New York, relates that in 2002, Bowdoin filed an action in
the Circuit Court of Mobile County, Alabama, alleging that the
Debtors breached their obligations under a lease and guaranty.
The Debtors defended the State Court Action and asserted that
the lease has been terminated when the use of the property
changed.
The Debtors prevailed at trial, but the verdict was overturned
on appeal and the case was remanded for a new trial. Before the
second trial was to commence, the Debtors and the Claimant
agreed to settle the State Court Action.
Pursuant to the settlement agreement, Bowdoin agreed to accept
US$400,000 in full satisfaction of the claims asserted in the
State Court Action. However, before the settlement payment
could be made, the Debtors' Chapter 11 petitions were filed.
In accordance with the Settlement Agreement, the parties have
agreed to compromise the Claims:
(a) Each of the Claims will be allowed as an unsecured non-
priority claim for US$400,000 to be treated in
accordance with a confirmed plan of reorganization in
the Debtors' Chapter 11 cases;
(b) In the event that the Debtors' cases are not
substantively consolidated, Bowdoin will not receive
distributions from the Debtors having an aggregate value
that exceeds US$400,000;
(c) If the Debtors' cases are substantively consolidated for
purposes of distribution under a confirmed plan of
reorganization, the plan may provide that no
distributions will be made in connection with claims
that are based on guarantees and, in that event, no
distribution will be made on Claim No. 9939; and
(d) Bowdoin will dismiss with prejudice the action pending
in the Circuit Court of Mobile County, Alabama.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people. The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on Feb. 21,
2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14,
2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840).
D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and
Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King
& `Spalding LLP, represent the Debtors in their restructuring
efforts. Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 40; Bankruptcy Creditors' Service, Inc., 215/945-
7000).
WINN-DIXIE: Wants Compromise Pact With Schreiber Foods Approved
---------------------------------------------------------------
To resolve all issues in dispute between them, including pending
litigation, past and future business relationship issues, and
associated bankruptcy claims, Winn-Dixie Stores, Inc., and its
debtor-affiliates and Schreiber Foods, Inc., ask the U.S.
Bankruptcy Court for the Middle District of Florida to approve a
compromise with these terms:
(a) Dismissal with prejudice of the lawsuit entitled
Winn-Dixie Stores, Inc., v. Schreiber Food, Inc.,
pending in the Eastern District of Wisconsin, Green
Bay Division, including all issues raised in the
complaint, the counterclaim and other filings.
(b) Rejection of the Supply Agreement between Winn-Dixie
Stores, Inc., and Schreiber, dated April 2, 2002,
including any amendments.
(c) Execution of a new supply agreement in the name of
Winn-Dixie Procurement, Inc., that will have:
* A three-year duration;
* No liability termination right in favor of the Debtors
in the event the Debtors' Chapter 11 plan of
reorganization is not confirmed or does not become
effective;
* Exclusivity for Schreiber as the Debtors' sole
Winn-Dixie branded cheese supplier;
* No minimum volume purchase obligations on the part of
the Debtors, but price incentives (discounts) in favor
of the Debtors based on the pounds of product
purchased;
* Agreed upon pricing and agreed terms for packaging and
promotion; and
* Credit terms for the Debtors of net 15 EFT.
(d) Disallowance of Claim No. 10961 against Winn-Dixie
Stores, Inc., for US$4,066,838, when the Debtors'
confirmed Chapter 11 plan of reorganization becomes
effective. However, if the new supply agreement is
terminated because the Debtors' chapter 11 plan of
reorganization is not confirmed or does not become
effective, then Claim No. 10961 will be allowed as a
general unsecured claim for US$4,066,838.
(e) Waiver by Schreiber of all claims it had or may have had
against the Debtors as of May 10, 2006, including,
without limitation, any claim for liquidated damages
arising from early termination of the Original Contract
or any claim for rejection damages arising from the
rejection of the Original Contract.
(f) Waiver by the Debtors of all claims they had or may have
had against Schreiber as of May 10, 2006, including,
without limitation, any claim under Chapter 5 of the
Bankruptcy Code.
Mr. Baker asserts that in the absence of the compromise, the
parties would incur costs in the continuing Litigation and the
Debtors would be forced to:
(i) reject the Original Contract and incur the potential
disruption of finding an alternative supplier, along
with a significant rejection damage claim; or
(ii) assume the Original Contract with all of its burdens and
incur cure obligations that would have administrative
claim status.
Background
Schreiber Foods, Inc., is a manufacturer and distributor of
various food products, including natural and processed cheese.
On April 2, 2002, Schreiber purchased from the Debtors a cheese
manufacturing facility. As part of the transaction, Schreiber
and the Debtors:
(a) entered into a 10-year supply agreement, under which
Schreiber agreed to supply cheese products to the
Debtors; and
(b) settled patent infringement allegations made by
Schreiber relating to a machine the Debtors used at the
manufacturing facility, with the Debtors agreeing to
make payments or provide credits to Schreiber not to
exceed US$6,000,000, depending on contingencies.
At the time of the transaction, Schreiber was involved in patent
litigation against the manufacturer of the machine at issue.
D. J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP,
in New York, tells the Court that the Debtors agreed to the
Patent Settlement only because Schreiber had successfully
obtained on appeal the reinstatement of a US$26,000,000 jury
verdict against the machine manufacturer. Nevertheless,
Winn-Dixie's US$6,000,000 obligation was structured to be
contingent upon further developments in Schreiber's patent
litigation against the manufacturer.
However, the trial court later vacated the reinstated jury
verdict on which the Debtors relied in agreeing to the Patent
Settlement. Although the appeals court agreed that the jury
verdict was properly vacated, it held that Schreiber was
entitled to a new trial.
As of May 26, 2006, no new trial has ensued, due in part to
Schreiber's waiver of its damage claim against the machine
manufacturer, Mr. Baker tells the Court.
Litigation
The Debtors have paid US$2,300,000 of the US$6,000,000 owed
under the Patent Settlement and Schreiber was seeking to collect
the balance.
Upon learning of the events in Schreiber's patent litigation,
the Debtors filed a lawsuit against Schreiber in the United
States District Court for the Eastern District of Wisconsin,
Green Bay Division:
(a) alleging material misrepresentation in the negotiation
of the Patent Settlement; and
(b) seeking a return of amounts paid and cancellation of
further obligations owed.
Schreiber counterclaimed for the remaining amount due under the
Patent Settlement.
As of the Petition Date, the Litigation was pending and the
Original Contract continued in effect with a remaining term of
six years.
Schreiber filed in the Debtors' Chapter 11 cases proofs of claim
against the Debtors for:
-- US$4,066,838, representing remaining amounts allegedly
owed under the Patent Settlement; and
-- US$2,200,408, representing prepetition amounts allegedly
owed under the Original Contract for sales of product by
Schreiber to the Debtors.
On Oct. 7, 2005, Schreiber also sought to compel the Debtors
to assume or reject the Original Contract.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people. The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on Feb. 21,
2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14,
2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840).
D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and
Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King
& Spalding LLP, represent the Debtors in their restructuring
efforts. Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 40; Bankruptcy Creditors' Service, Inc., 215/945-
7000).
=============
B E R M U D A
=============
ASIA PACIFIC: Court Schedules Winding-Up Hearing on June 30
-----------------------------------------------------------
The Supreme Court of Bermuda will hear on June 30 at 9:30 a.m.,
the petition to wind-up Asia Pacific Wire & Cable Corp. Limited.
Sino-JP Fund Company Limited filed the petition on May 1, 2006,
in accordance to Section 111 of the Companies Act 1981 of
Bermuda.
Parties-in-interests who want to attend the hearing must inform
of their intention to appear on the hearing Sino-JP Fund's
counsel at:
Trott & Duncan
Barristers & Attorneys
20 Brunswick Street
Hamilton HM10, Bermuda
Tel: 295-7444
Fax: 295-6600
The notice must be served not later than 4:00 p.m. on
June 29, 2006.
The petitioner can be reached at:
Sino-JP Fund Company Limited
P.O. Box 309GT, Ugland House
South Church Street, George Town
Grand Cayman, Cayman Islands
B.C.M. Holdings: Sets Final General Meeting on July 12
------------------------------------------------------
B.C.M. Holdings Ltd.'s final general meeting is scheduled on
July 12, 2006, at 4:30 p.m. at:
The Hamilton Princess, Pitts Bay Road
Hamilton, Bermuda
During the meeting, Doug Redmond, the company's liquidator, will
account for the wind up process.
Also, B.C.M.'s shareholders will determine through a resolution
the manner in which the books, accounts and documents of the
company and of the liquidator will be disposed. Furthermore,
the shareholders will decide whether or not B.C.M. will be
dissolved.
BARCLAYS CAPITAL: Schedules Final General Meeting on July 7
-----------------------------------------------------------
Barclays Capital Asia Pacific Limited's final general meeting is
scheduled on July 7, 2006, at 10:00 a.m.
The meeting will be held at:
27th Floor, Alexandra House
18 Chater Road, Central, Hong Kong
During the meeting, Barclay's liquidators -- Edward S. Middleton
and Jacky CW Muk -- will present an account on the wind up
process.
Barclay's shareholders will determine through a resolution the
manner in which the books, accounts and documents of the company
and of the liquidator will be disposed. Furthermore, the
shareholders will decide whether or not Barclay will be
dissolved.
The shareholders of the company agreed on June 2, 2006, to place
Barclays Capital into voluntary liquidation under Bermuda's
Companies Act 1981.
BELTSHIPS INVESTMENTS: Creditors Must Present Claims by June 28
---------------------------------------------------------------
Beltship Investments Ltd.'s creditors are given until
June 28, 2006, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.
Creditors are required to send by June 28 their full names,
addresses, the full particulars of their debts or claims, and
the names and addresses of their lawyers, if any, to Mr. Mayor.
A final general meeting will be held at the liquidator's place
of business on July 17, 2006, at 9:30 a.m., or as soon as
Possible.
Beltship Investments' shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed. Furthermore, the shareholders will decide whether
or not Beltship Investments will be dissolved.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
BRISTOL REINSURANCE: Paying Final Dividend to Creditors
-------------------------------------------------------
Bristol Reinsurance Ltd., a company under liquidation, will pay
its third and final dividend to its creditors for approximately
6%, accounting for total dividends to date to approximately 55%.
This is in accordance with the provisions under the Scheme of
Arrangement entered into by Bristol Reinsurance and its
creditors.
Dividends will be paid in accordance with Clauses 11 and 12 of
the scheme. The final dividend has been declared effective
June 9, 2006. It is expected that dividend payments will be
sent to eligible scheme creditors before the end of June.
Parties-in-interest may contact the liquidators at:
Nigel Chatterjee
Peter C.B. Mitchell
PricewaterhouseCoopers
Dorchester House, 7 Church Street
Hamilton, HM 11, Bermuda
Tel: 441-299-7123
Fax: 441-295-1242
HYPOGUARD DEVELOPMENT: Filing of Proofs of Claim Ends on June 28
----------------------------------------------------------------
Hypoguard Development Co. Limited's creditors are given until
June 28, 2006, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.
Creditors are required to send by the June 28 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mayor.
A final general meeting will be held at the liquidator's place
of business on July 20, 2006, at 9:30 a.m., or as soon as
Possible.
Hypoguard Development's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed. Furthermore, the shareholders will decide whether
or not Hypoguard Development will be dissolved.
Hypoguard Development' shareholders agreed on June 7, 2006, to
place the company into voluntary liquidation under the Companies
Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
HYPOGUARD HOLDING: Proofs of Claim Filing Will End on June 28
-------------------------------------------------------------
Hypoguard Holding Co. Limited's creditors are given until
June 28, 2006, to prove their claims to Robin J. Mayor, the
company's liquidator, or be excluded from receiving any
distribution or payment.
Creditors are required to send by June 28 their full names,
addresses, the full particulars of their debts or claims, and
the names and addresses of their lawyers, if any, to Mr. Mayor.
A final general meeting will be held at the liquidator's place
of business on July 20, 2006, at 9:30 a.m., or as soon as
possible.
Hypoguard Holding's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed. Furthermore, the shareholders will decide whether
or not Hypoguard Holding will be dissolved.
Hypoguard Holding's shareholders decided on June 7, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Robin J. Mayor
Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX, Bermuda
INTELSAT LTD: PanAmSat Buy Cues Fitch to Up Issuer Rating to B
--------------------------------------------------------------
Fitch upgraded the Issuer Default Rating for Intelsat to 'B'
from 'B-' pro forma for its pending acquisition of PanAmSat.
The ratings are also removed from Rating Watch Negative, where
they had originally been placed on Aug. 30, 2005.
The Rating Outlook is Stable. Fitch has also initiated ratings
for all of the PanAmSat entities assuming that the pending
acquisition and associated debt issuances close under the
announced terms. Approximately US$12 billion of debt is covered
by these actions.
On Aug. 29, 2005, Intelsat announced that it had signed a
definitive agreement to acquire PanAmSat for US$3.2 billion, or
US$25 per share of PanAmSat common stock, plus the assumption of
US$3.2 billion of debt. Pricing for the transaction is
approximately 10x the latest 12 months ended March 31, 2006
operating EBITDA. The transaction, which has been cleared by
the Department of Justice, is subject to obtaining regulatory
approval from the FCC.
The ratings reflect the combined company's position as the
largest fixed satellite services provider, its contracted and
diverse revenue stream, and stable free cash flow generation
from a relatively sound customer base. The ratings are also
based on Intelsat's significant leverage on a pro forma basis
for the acquisition, competition from lower cost terrestrial
fiber optic cable, and the capital-intensive nature of its
business.
The combination of Intelsat and PanAmSat would create the
largest satellite communications company in the world with a
global fleet of 50 satellites and combined annual revenues of
over US$2 billion. It will supply video, data and voice
connectivity in over 200 countries for about 1,800 customers,
including some of the world's leading media and communications
companies, multinational corporations, Internet service
providers and government/military organizations. Its US$8.3
billion revenue backlog is diversified geographically and by
service sector, providing reasonable revenue stability. With
operating EBITDA margins of about 70%, the combined company is
expected to generate positive free cash flow even with a
significant increase in pro forma interest expense.
However, a significant portion of Intelsat's revenue is still
expected to come from traditional telephone carriage. This
segment has been experiencing a decline in revenue due to both
the overcapacity in the satellite industry and to a loss of
customers to lower cost terrestrial fiber optic cable. Intelsat
plans to address this issue by expanding its business in point-
to-multipoint services such as video and growing its managed
solutions business. The satellite business is also highly
capital intensive, and the combined company has spent over
US$3.4 billion on 15 satellites launched since 2001 in
connection with its satellite renewal and replacement cycle.
Although Intelsat has announced plans to launch the IA-9
satellite in 2007 instead of 2010, and PanAmSat has plans to
launch four additional satellites in the next two years, the
combined company expects to achieve capital expenditure savings
of US$400 million from 2006 to 2011 as it rationalizes
operations. The combined company could generate strong free
cash flow as it gradually enters a post-satellite renewal phase.
It should be noted however, that the combined company self-
insures most of its in-orbit satellites, and any satellite
failure could affect revenue, capital expenditures, and cash
flow.
Fitch believes that a shareholder-friendly transaction similar
to Intelsat's special dividend transaction in 2005 would pose a
significant risk to bondholders. The proposed restricted
payments test at PanAmSat and Intelsat provides the potential
for such transactions as leverage is reduced from current
levels, and investors may want to take this into account. In
its 2005 10-K filing, Intelsat has stated that it does not
expect to issue a cash dividend to its shareholders until the
completion of the PanAmSat acquisition, and for a period of at
least 12 months following such completion, absent an initial
public offering of equity securities, and assuming that the
PanAmSat acquisition is completed during the second or third
quarter of 2006. This commitment somewhat alleviates our concern
at least in the short term.
Pro forma for the transaction, Intelsat's leverage would have
been approximately 7.7x for the LTM ended March 31, 2006, as
defined by total debt to combined adjusted EBITDA excluding any
operating synergies, and approximately 8x on an operating EBITDA
basis. The combined company is expected to have adequate
liquidity of around US$800 million, consisting of undrawn
revolvers at Sub Holdco and PanAmSat Opco, and cash on hand.
Intelsat should have adequate financial flexibility to meet its
near-term capital requirements and debt service obligations.
Fitch's Recovery Ratings, introduced in 2005, are a relative
indicator of creditor recovery on a given obligation in the
event of default. The RRs and notching in the debt structure
reflect Fitch's recovery expectations under a scenario in which
distressed enterprise value is allocated to the various debt
classes.
Fitch has taken these rating actions:
Intelsat, Ltd.
-- Issuer Default Rating upgraded to 'B' from 'B-'; and
-- Senior unsecured notes affirmed at 'CCC/RR6'.
Intelsat (Bermuda), Ltd.
-- IDR upgraded to 'B' from 'B-';
-- Expects to rate proposed senior unsecured guaranteed
notes: 'BB-/RR2'; and
-- Expects to rate proposed senior unsecured non-guaranteed
notes: 'CCC+/RR6'.
Intelsat Intermediate Holding Company, Ltd.
-- IDR assigned 'B';
-- Senior unsecured discount notes affirmed at 'B-'; and
-- Recovery Rating revised to 'RR5' from 'RR4'.
Intelsat Subsidiary Holding Company, Ltd.
-- IDR upgraded to 'B' from 'B-';
-- Senior secured credit facilities upgraded to 'BB/RR1'
from 'BB-/RR1'; and
--Senior unsecured notes upgraded to 'BB-/RR2' from
'B+/RR2'.
PanAmSat Holding Corporation
-- IDR assigned 'B';
If tender offer is not consummated:
-- Expects to rate proposed senior unsecured notes
'CCC+/RR6'; and
-- Senior unsecured discount notes assigned 'CCC+/RR6'.
PanAmSat Corporation
-- IDR assigned 'B';
-- Senior secured credit facilities assigned 'BB/RR1';
-- Senior secured notes assigned 'BB/RR1';
-- Senior unsecured notes assigned 'B/RR4'; and
-- Expects to rate proposed senior unsecured notes 'B/RR4'.
LORAL SPACE: Unit Launches Satellite-Based Contingency Services
---------------------------------------------------------------
Loral Skynet, a subsidiary of Loral Space & Communications,
launched a new suite of satellite-based Contingency Services.
This new services are designed to help businesses and government
organizations minimize Internet Protocol-data network
interruptions caused by large-scale natural disasters such as
hurricanes, as well as protect against the everyday outages that
frequently occur in multi-path terrestrial network links.
The new Contingency Services capability is the most
comprehensive of its kind, providing world-class continuity and
emergency restoration network solutions. These services assure
the survivability of terrestrial networks via an automatic and
seamless transfer of IP-data traffic to satellite connections.
Skynet Contingency Services include:
-- SkyReach(SM) Ensure
-- A business continuity network solution designed to
provide pre-planned, continuous network
connectivity for all vital business and government
functions; and
-- SkyReach SAVER (Satellite Access by VSAT for Emergency
Recovery)
-- An emergency restoration network solution designed
as a disaster recovery option where a rapid response
mechanism is built into a network to minimize
downtime and loss of production.
Both of Skynet's new Contingency Services leverage its SkyReach
family of IP-based communications services using Skynet's
Telstar satellite fleet and a global fiber network. They
provide low-cost, high-availability network connectivity backed
by custom-tailored Service Level Agreements. Unique aspects of
Skynet's Contingency Services include:
-- A contingency network that has been sized to provide
greater guarantees for the bandwidth customers need, when
they need it. Unlike many other offerings that use a
shared and oversubscribed model to support business
continuity and emergency restoration services, Skynet's
solution provides greater assurance for actually
delivering these services at the time of crisis;
-- SLAs that are responsive to demanding customer
requirements - providing assurances for failover
services in less than one minute and recovery services in
less than one hour; and
-- Flexible and robust offerings that meet a broad range of
scenario-driven customer requirements for dedicated as
well as dynamic usage or volume-based billing so that
customers only pay for what they use.
SkyReach Ensure
"The affect of recent disasters such as Hurricane Katrina
underscores the need for businesses and governments to
anticipate and plan for the possibility of significant
disruptions to communications networks and services," said
Patrick Brant, president of Loral Skynet. "Without a suitable
network back-up plan in place, organizations are exposed to
potentially irretrievable losses from such unpredictable, yet
inevitable, events." SkyReach Ensure provides seamless
continuity via automatic cut-over to satellite-delivered
services, guaranteeing vital IP-data connectivity will be
available.
In addition, while natural disasters garner most of the media
and public attention, network outages due to human error and
terrestrial network vulnerabilities are common--and equally
damaging to the bottom line. "Amazingly, an estimated 80
percent of network downtime today is caused by routine, everyday
events," continues Mr. Brant. SkyReach Ensure will provide the
back-up network connectivity to protect an organization from
these types of outages as well.
SkyReach SAVER
Explaining SkyReach Saver, Brant points out, "Not all
organizations need continuous and uninterrupted 24/7 access for
all their IP-data network traffic." Network engineers have to
determine their organization's requirements and their tolerance
for risk at different locations-and for some types of traffic,
Mr. Brant explains, "It just makes more sense from a cost
standpoint to implement a restoration solution as opposed to a
continuity solution." This option assures access to the network
within a carefully prescribed time frame after a disaster or
other interruption has occurred. Typical examples of this type
of requirement would be for remote locations with receive-only
requirements.
"With SkyReach SAVER," continues Mr. Brant, "the key objective
is speed." For this requirement, fast recovery is a function of
having restoration pre-planned, by pre-deploying a modest amount
of equipment and assigning connectivity in advance. The goal is
to have complete assurance that an IP-data network will be
accessible within hours after an event.
About Loral Skynet
Loral Skynet - http://www.loralskynet.com/-- delivers service
quality and range of satellite and global network service
solutions that have made it an industry leader for more than 40
years. Through the broad coverage of the Telstar satellite
fleet, in combination with its global fiber network
infrastructure, Skynet meets the needs of companies around the
world for broadcast and data network services, Internet access,
IP and systems integration.
About Loral Space
Loral Space & Communications -- http://www.loral.com/-- is a
satellite communications company. It owns and operates a fleet
of telecommunications satellites used to broadcast video
entertainment programming, distribute broadband data, and
provide access to Internet services and other value-added
communications services. Loral also is a world-class leader in
the design and manufacture of satellites and satellite systems
for commercial and government applications including direct-to-
home television, broadband communications, wireless telephony,
weather monitoring and air traffic management.
The Company and various affiliates filed for chapter 11
protection (Bankr. S.D.N.Y. Case No. 03-41710) on July 15, 2003.
Stephen Karotkin, Esq., and Lori R. Fife, Esq., at Weil, Gotshal
& Manges LLP, represented the Debtors in their successful
restructuring and prosecution of their Fourth Amended Joint Plan
of Reorganization to confirmation on Aug. 1, 2005. As of
Dec. 31, 2004, the Company listed assets totaling approximately
US$1.2 billion and liabilities totaling approximately US$2.3
billion.
MCEWANS LIMITED: Final General Meeting Is Set for July 10
---------------------------------------------------------
McEwans Limited's shareholders will hold a final general meeting
on July 10, 2006, at 10:00 a.m. at:
PricewaterhouseCoopers
Dorchester House, 7 Church Street
Hamilton, HM 11, Bermuda
under Bermuda's Section 213 of the Companies Act, 1981.
The purposes of the meeting are:
-- to present an account on the wind up process of
the company by the liquidator -- Nigel Chatterjee;
-- to determine by resolution the manner in which the
books, accounts and documents of the company and of the
liquidator shall be disposed; and
-- by resolution dissolving the company.
===========
B R A Z I L
===========
AMERICAN AXLE: Moody's Rates New US$200-Mil. Term Loan at Ba3
-------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 Corporate Family
rating of American Axle & Manufacturing Holdings, Inc. and
assigned a Ba3 rating to a new term loan for American Axle &
Manufacturing, Inc. At the same time, the rating agency raised
American Axle's Speculative Grade Liquidity rating to SGL-2 from
SGL-3.
The actions follow American Axle obtaining an underwritten
commitment for a new US$200 million unsecured term loan.
Proceeds are expected to be used to reduce outstandings under
the company's revolving credit facility that increased as a
result of funding the conversion of Holding's convertible note
issue subsequent to a ratings trigger. The new term loan will
be pari passu with existing unsecured indebtedness at American
Axle, and, accordingly, has been assigned a Ba3 rating. The
application of funds from the term loan against revolver
borrowings will restore the company's external commitments
sufficiently to improve its liquidity profile with only a minor
effect on leverage. The outlook remains negative.
Moody's affirmed these three ratings:
American Axle & Manufacturing Holdings, Inc.
-- Corporate Family: Ba3,
-- Senior Unsecured Convertible notes: Ba3, and
American Axle & Manufacturing, Inc.
-- US$250 million of Senior Unsecured notes: Ba3.
This rating was assigned:
American Axle & Manufacturing, Inc.
-- US$200 million unsecured term loan: Ba3.
This rating was raised:
American Axle & Manufacturing, Inc.
-- Speculative Grade Liquidity rating: to SGL-2 from
SGL-3.
The last rating action was on May 22, 2006, at which time the
Corporate Family and unsecured ratings were lowered to Ba3 from
Ba2, the liquidity rating was lowered to SGL-3 from SGL-2, and
the negative outlook was affirmed. Should the entire amount of
the Holdings' convertible issue be extinguished, its ratings
will be withdrawn.
The new term loan will have a maturity no earlier then April
2010, the current expiration date of American Axle's US$600
million revolving credit facility. The term loan, revolving
credit facility and existing US$250 million of unsecured notes
will be pari passu. Given the use of proceeds, consolidated
leverage will not materially change. However, as the new term
loan's interest rate will be substantially higher than the 2%
coupon on Holding's convertible note, and the amount of the term
loan will exceed the principal of the convertible issue,
interest expense going forward will increase significantly.
Interest coverage may weaken as a result. However, debt
protection measures combined with the company's overall risk
profile remain consistent with the Ba3 Corporate Family rating.
The company's financial flexibility will improve from the
enhanced liquidity achieved through restoring available
commitments under its revolving credit facility.
The negative outlook considers the company's continued
concentration with GM, whose Corporate Family rating is B3, the
mix of vehicles it supports, and uncertainty on what build rates
consumer demand may ultimately support for models supported by
American Axle production. The rating agency would expect
American Axle to remain profitable during the intermediate term.
However, during this period it remains vulnerable to potential
downside developments arising from any disruptions of U.S. auto
production.
The Speculative Grade Liquidity rating has been raised to SGL-2,
representing good liquidity over the next 12 months. Moody's
would expect the company to have break-even to modestly positive
free cash flow over the coming year. Seasonal factors will
continue to influence quarterly operating cash flows as will the
pace and level of the company's capital expenditures. While
capital expenditures over the coming year will be lower than in
fiscal 2005, they remain elevated and reflect the company's
organic growth initiatives and the launch of new business. The
new term loan will reduce borrowings under the revolving credit
facility that has been drawn to fund conversion of Holding's
convertible notes following the ratings trigger. Repayment of
revolving credit borrowings will replenish unused availability
under that facility, thereby improving the company's external
liquidity. The company remains in compliance with its financial
covenants with ample headroom. However, at current run-rates of
EBITDA, the leverage covenant (defined debt/EBITDA) could have
an effect of limiting the company's use of the facility to less
than the full amount of the commitment over quarterly reporting
dates. The company's obligations remain unsecured, which
provides some scope for alternative liquidity arrangements.
American Axle & Manufacturing, headquartered in Detroit, MI, is
a world leader in the manufacture, design, engineering and
validation of driveline systems and related components and
modules, chassis systems, and metal formed products for light
truck, SUVs and passenger cars. The company has manufacturing
locations in the U.S.A., Mexico, the United Kingdom and Brazil.
The company reported revenues of US$3.4 billion in 2005 and has
approximately 10,900 employees.
BANCO BRADESCO: Inks Operating Accord with GBarbosa
---------------------------------------------------
Banco Bradesco S.A. has entered into an operating agreement with
Gbarbosa Supermarket Chain for the management of the Private
Label Credi-Hiper credit card, with about 680,000 clients.
The partnership also provides for the sale of products and
services of Bradesco like personal loans, insurance and savings
bonds. In addition, GBarbosa will start operating as a
correspondent bank of Bradesco.
The partnership will also enable GBarbosa to increase loan
options for its client base, particularly for lower income
clients, which account for a large portion of its sales.
GBarbosa Chain counts on nine hypermarkets, 25 supermarkets and
27 drugstores located in the States of Bahia and Sergipe. The
Private Label Credi-Hiper Card allows the holder to finance
purchases in all the stores of GBarbosa.
"With this partnership we start making available to our clients
all the knowledge of Bradesco in the management of cards and
other financial products and services. This partnership will
also allow us to invest more funds in the expansion of our store
chain, once we make available a great portion of the working
capital currently committed to Credi-Hiper," said Gerard Scheij,
the Chief Executive Officer of GBarbosa.
For Bradesco, the agreement strengthens its operation in the
Northeast region.
"The region is one of our priorities due to the economic growth
potential", said Paulo Isola, the Executive Officer of Bradesco.
This is the second partnership entered into by Bradesco this
year for Private Label management in the Northeast region. The
first one was with Lojas Esplanada/Otoch, which was announced in
February.
The Credi-Hiper card, which accounts for 50% of the sales of the
GBarbosa, does not have a yearly fee and allows the client to
pay accounts in up to 40 days without interest or pay them in up
to 10 installments.
About Gbarbosa
GBarbosa is the largest supermarket retailer in the northeastern
Brazilian state of Sergipe and the seventh largest supermarket
retailer in Brazil. GBarbosa operates 32 hypermarkets and
supermarkets in the states of Sergipe and Bahia, has 5,800
employees and generates approximately BRL1 billion of annual
revenue.
About Banco Bradesco
Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco
-- http://www.bradesco.com.br/-- prides itself on serving
low-and medium-income individuals in Brazil since the 1960s.
Bradesco is Brazil's largest private bank, with more than 3,000
banking branches, and also a leader in insurance and private
pension management. Bradesco has branches throughout Brazil as
well as one in New York, two in the Bahamas, and four in the
Cayman Islands. Bradesco offers Internet banking, insurance,
pension plans, annuities, credit card services (including
football-club affinity cards for the soccer-mad population), and
Internet access for customers. The bank also provides personal
and commercial loans, along with leasing services.
* * *
As reported in the Troubled Company Reporter on Feb. 23, 2006,
Moody's Investors Service shifted Banco Bradesco S.A.'s 'C-'
bank financial strength rating to positive from stable.
BANCO NACIONAL: Creates Procaminhoneiro to Fund Transpo Sector
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved the creation of the Financing Program for Truck Drivers
or Procaminhoneiro, to finance independent truck drivers and
individual entrepreneurs in the load transportation sector.
Procaminhoneiro was conceived in BNDES with the participation of
the autonomous truck drivers' representatives -- Autonomous
Transportation Cooperative, the manufacturers National
Automotive Vehicle Manufacturer Association or ANFAVEA and the
banks -- Brazilian Federation of Banks or FEBRABAN and the
Leasing Companies Brazilian Association. The Program has a
social and economic character and with its implementation the
following benefits are expected:
-- effective access of a worker segment till then to the
margin of the financing programs for difficult access to
credit;
-- renewal of the operating fleet of the country;
-- reduction of the Brazil cost - logistics and fleet;
-- reduction of the oil consumption and issuances; and
-- increase in the vehicle safety and traffic.
President Luiz Inacio Lula da Silva participated in the
launching of the Procaminhoneiro. "I hope the BRL500 million is
used until October for Demian to put another BRL500 million",
said president Lula to a crowd formed mostly by representatives
of the sector and referring to the initial budget allocation o
the new program. Pres. Lula pointed out the importance of
Procaminheiro for the fleet renewal, the motivation to the
automotive production and wealth generation of the country with
transportation and merchandise. He reminded that 70% of the
load transportation in Brazil is made by truck.
"More and better trucks mean more products being transported, at
lower costs, stimulating both the production and the
consumption. They also mean more jobs for truck drivers,
increasing the potential of income generation of the sector,
with better safety and work quality", pointed out the president
of BNDES, Demian Fiocca, in his presentation speech of the new
credit line. Mr. Fiocca said that the Bank has prioritizing the
small and medium Brazilian entrepreneurs - "who are the ones who
generate more jobs" - and the Procaminhoneiro program is another
proof of that.
Followed by the minister of Development, Industry and Trade
[MDIC], Luiz Fernando Furlan; the minister of Education,
Fernando Hadad; and the minister of Transports, Paulo Sergio
Passos, president Lula complimented the performance of BNDES and
sent a word to the Brazilian foreign policy critics: "BNDES is
hope in South America and Latin America. We have been financing
many things abroad and many people say nonsense. Brazil can and
has the obligation to finance the development in the countries
of our boarders ", said Pres. Lula, referring to the BNDES
financings to goods and services exports for infrastructure
projects in Latin American countries.
Objective
Financing to the acquisition of trucks, chassis and new or used
truck bodies of Brazilian manufacture that, in the presentation
year of the financing request to BNDES, have completed up to
eight years, as of its fabrication year. In the case of used
trucks, only equipment with origin guarantee, acquired from
manufacturers, concessionaires or authorized distributor or
independent resale companies, which will be responsible for the
guaranteed inspection for at least 90 days.
The truck driver will have his access facility to credit
amplified, because he may opt for the commercial leasing. In
the specific case of leasing operations, Procaminhoneiro was
benefited by the Presidential Decree number 5,768, of May 8,
which allowed the commercial leasing companies and banks with
portfolio of this modality under foreign capital control to
perform financings based on the Long Term Interest Rate. Before
that decree, only national capital banks could utilize
financings in TJLP for leasing, which excluded the automaker
banks.
Beneficiaries
Individuals resident and domiciled in the country, and sole
entrepreneurs, of the load transportation sector and leasing
companies, provided that the lessee is an autonomous truck
driver or sole entrepreneur of the load transportation sector.
Financeable Items
Financeable items include:
-- trucks,
-- truck chassis,
-- truck bodies and
-- tracking system, when acquired along with the other items.
Now the good insurance and lender insurance may be also
financed, when hired along with the other items.
Resources
From BNDES, in the amount not exceeding BRL500 million, up to
Dec. 31, 2006. The program will be extended to 2007 and its
budget may increase due to the demand.
The new program amplifies from 90% up to 100% BNDES'
participation in the financing. It establishes the maximum
spread of the financial agent (before it was free) and increases
the grace period and amortization from 60 months up to 84
months. Increases from seven to eight years the used truck age
to be financed or leased.
* * *
As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook. The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.
BANCO NACIONAL: Grants BRL198.7-Mil Loan for Acesita's Expansion
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL198.7 million financing for Acesita S.A. The loan
is equivalent to 60.4% of the modernization and expansion
project of the hot rolling steel production capacity, in the
plant of the municipality of Timoteo, in Minas Gerais.
The total investment is BRL328.9 million. Acesita will use
BRL105.9 million from its own resources, paying 32.2% of the
project, while the remaining BRL24.4 million, equivalent to
7.4%, will be financed by foreign institutions.
Production
The project will divided into nine subprojects, in different
points of the production line. Thus, in the production of hot
rolling steel, the installed capacity of Acesita will go from
850,000 tons per year to 900,000 t/y.
Acesita is the only integrated producer of flat stainless and
siliceous steel of Latin America. In Brazil, it has a monopoly
in the flat stainless steel production, besides being leader in
the special steel sector, which present special proprieties in
terms of magnetic characteristics and mechanical resistance to
corrosion, due to its carbon percentage or to biding alloy
addition, such as nickel, chromium, niobium, vanadium, tungsten,
molybdenum, cobalt and other metals.
Arcelor-Acesita is controlled by Arcelor Group, one of the main
conglomerates of the international steel company and largest
producer of steel in Europe and Latin America. It was founded
in Europe in 2002, as the result of the consolidation of the
companies:
-- Arbed in Luxemburg,
-- Aceralia in Spain and
-- Usinor in France.
With approximately 96 thousand jobs, around over 60 countries,
Arcelor generated in 2005 consolidated revenue of EUR32.6
billion, with operational profit of EUR5.6 billion and net
profit of EUR3.8 billion.
In Brazil, besides Acesita, the group also controls Arcelor
Brasil, a company established from the consolidation of:
-- Companhia Siderurgica Belgo-Mineira,
-- Companhia Siderurgica de Tubarao or CST and
-- Vega do Sul.
* * *
As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook. The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.
* * *
Moody's upgraded on May 28,2006, BNDES' senior unsecured debt
rating to Ba1 from Ba3 with a stable outlook under the revised
foreign currency ceilings.
BANCO NACIONAL: Grants BRL313M Loan to Expand Sao Paulo's Subway
----------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a BRL313.620 million financing for Sao Paulo's subway.
The resources, which represent 34.5% of the total investments,
will be used to:
-- improve line 2,
-- join the Ana Rosa-Alto do Ipiranga section, with
an extension of approximately 3.4 kilometers and three
stations (Chacara Klabin, Imigrantes and Alto do Ipiranga)
and
-- accomplish complementary investments of the section Ana
Rosa-Vila Madalena, of the same line.
The implementation of the section Ana Rosa-Alto do Ipiranga will
be completed in 2006. The project will include three additional
stations to the Sao Paulo's subway network, especially the
Southeast region. The project will aggregate approximately
160,000 passengers per day to the current Subway network.
The Bank has already financed the subway-railway system of Sao
Paulo in several opportunities, including investments for the
implantation and expansion in the Lines 1, 2 and 3, acquistion
of rolling stock and other diverse investments in the Subway/SP
and in the Sao Paulo Metropolitan Company, besides the execution
of the trips origin/destination research in the Metropolitan
Region.
The support from BNDES will guarantee the continuity of the
construction of a qualified integrated system of public
transportation, with significant impact for the population,
contributing for the reduction of operational costs of the
transportation system and the decrease of environmental problems
and urban circulation in the city.
Operation
In December 2005, BNDES approved a BRL236 million financing, for
the investment of the section Ana Rosa-Imigrantes, with
extension of 2.9 kilometers of line and construction of two
stations. In the following months to that approval, BNDES and
the Sao Paulo's government agreed to amplify the amount of the
financing to BRL313 million, what will also enable the
amplification of the subway works until Alto do Ipiranga.
* * *
As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook. The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.
* * *
Moody's upgraded on May 28,2006, BNDES' senior unsecured debt
rating to Ba1 from Ba3 with a stable outlook under the revised
foreign currency ceilings.
BANCO PANAMERICANO: Moody's Puts D- Financial Strength Rating
-------------------------------------------------------------
Moody's Investors Service assigned a D- bank financial strength
rating to Banco PanAmericano S.A. Moody's also assigned long-
and short-term global local- currency deposit ratings of Ba3 and
Not Prime, and a long- and short-term Baa1.br and BR-2 deposit
rating on the Brazilian national scale for deposits. All of the
ratings have stable outlooks. Moody's long- and short-term
foreign currency deposit ratings of B1/Not Prime for
PanAmericano are at the country ceiling for Brazil and have a
positive outlook.
Moody's said that the D- bank financial strength rating for
PanAmericano reflects the bank's focused operation as a consumer
lender catering to a broad range of customer segments, which
ensure diversification and granularity. The bank's ratings are
supported by management's long-standing presence and expertise
in the consumer finance market, and by the synergies it can
derive from the various activities of the controlling
shareholders, the Silvio Santos Group. The bank's consistently
high profitability -- measured by pre-provision profits as a
percentage of average total assets at levels of 10% for the past
3 years -- reflects PanAmericano's high-yielding loan book,
despite its relatively high operating leverage.
The rating agency noted, however, that high credit costs and a
limited capital base constrain the ratings for PanAmericano.
The bank's asset-quality indicators on a managed basis compare
poorly to the median of its peers', in an indication of its
intrinsically riskier target market and a shift in the portfolio
towards higher-risk products. Moody's noted that loan
origination policies and risk management controls are
comprehensive, and allows management to adjust the loan and
pricing mix in order to preserve margins.
Moody's observed that the bank has successfully resorted to loan
sales as a funding source, contributing to PanAmericano's
liquidity management. Nevertheless, the bank's funding is
relatively expensive and its capitalization ratios are tight,
which could constrain growth in the medium-term.
The rating agency noted that upward ratings movement would
depend on improvements in the bank's asset quality, while
maintaining superior profitability in a scenario of increasing
competition and potentially lower interest rates. The bank's
ability to further diversify its deposits and overall funding
alternatives would also be a positive for the ratings.
Conversely, Moody's cautioned, negative pressures on the ratings
could derive from further deterioration of its asset quality and
decline of the profitability, which could weaken the bank's
financial flexibility and capital growth. The recent negative
trends in asset quality for PanAmericano and the management of
the bank's loan growth and vintage are areas to watch.
Moody's Ba3 global local currency deposit rating incorporates
the ongoing support of its shareholders, the Silvio Santos
Group. At the same time, however, because of its small market
share of the deposits market in Brazil, Moody's assigns a very
low probability of regulatory support for the bank's deposits in
local currency.
PanAmericano is headquartered in Sao Paulo, Brazil. As of
December 2005, the bank had total assets of BRL2.6 billion or
US$1.1 billion and equity of BRL410 million or US$168 million.
These seven ratings were assigned to Banco PanAmericano:
-- Bank Financial Strength Rating: D- with stable outlook;
-- Long-term Global Local Currency Deposit Rating: Ba3 with
stable outlook;
-- Short-term Global Local Currency Deposit Rating: Non Prime
with stable outlook;
-- Long-term Foreign Currency Deposit Rating: B1 with
positive outlook;
-- Short-term Foreign Currency Deposit Rating: Non Prime with
positive outlook;
-- Long-term National Scale Deposit Rating: Baa1.br; and
-- Short-term National Scale Deposit Rating: BR-2.
BRAZILIAN SECURITIES: Moody's LatAm Puts (P)Ba2 Rating on Certs.
----------------------------------------------------------------
Moody's America Latina assigned a provisional rating of (P)A1.br
on the Brazilian National Scale and (P)Ba2 on the Global Local
Currency Scale to the BRL6.0 million reais-denominated Series
2006-44 senior certificates to be issued by Brazilian
Securities. Interest and principal to the certificate holders
are primarily payable from collections from a pool of
residential mortgage loans acquired by Brazilian Securities from
real estate developers and also from Brazilian Mortgage
Companhia Hipotecaria, a mortgage company owned by the same
shareholders of Brazilian Securities.
Moody's provisional ratings primarily reflect these three
factors:
(1) credit enhancement of 11% in the form of 10%
subordination and 1% overcollateralization;
(2) the availability of a reserve account to cover shortfalls
in interest and principal payments, to be funded by the
difference between the underlying mortgage payments and
the payments of interest and principal on the Class A
Notes during the first 11 months of the transaction; and
(3) the credit quality of the underlying assets.
Brazilian Securities is a Brazilian securitization company
established in 2000. The company's main goal is to acquire
mortgage loans originated by real estate developers and to issue
mortgage backed securities -- Certificados de Recebiveis
Imobiliarios or CRIs, backed by these loans. Brazilian
Securities is co-owned by the local Ourinvest Group, and by
Caisse de Depot et Placement du Quebec or CDP from Canada.
The Structure
In this transaction, Brazilian Securities issued senior
certificates (Series 2006-44), junior certificates (Series 2006-
45, not rated by Moody's) and a residual piece. The senior
certificates comprise 89% of the issuance amount and are
supported by an 11% credit enhancement in the form of 10%
subordination of the junior certificates and
overcollateralization of 1% (residual).
On each monthly payment date, all interest and principal
collections received (including prepayments and recoveries, if
any) will be used to pay interest and principal on the
certificates on a pro-rata basis, after paying fees and
expenses. The certificates' balance is adjusted on a monthly
basis to changes in the IGP-M/FGV or General Market Price Index,
a Brazilian inflation index.
The Securitized Pool
The securitized pool consists of floating-rate, reais-
denominated mortgage loans for the acquisition of residential
properties located primarily in the city of Sao Paulo (84% of
the pool), and in the cities of Rio de Janeiro, Brasilia and
Manaus, Brazil. Similarly to the certificates', the loans'
balance is also indexed to the IGP-M/FGV and readjusted on a
monthly basis.
The pool has a weighted average loan-to-value ratio of
approximately 57%. The mortgage loans backing this transaction
were made to obligors with a payment record of at least 12
months and clean credit histories as of the closing date. For
its analysis of this transaction, Moody's also considered other
factors specific to mortgage-backed transactions such as rates
of delinquency, property type, and occupancy type, among others.
The loans in this transaction were originated by:
-- AM2 Engenharia e Construcoes Ltda,
-- CLC Construcoes e Incorporacoes Ltda,
-- Norcon-Sociedade Nordestina de Construcoes S.A.,
-- PIGC Empreendimentos Imobiliarios Ltda e Helbor
Empreendimentos Imobiliarios Ltda, and
-- Brazilian Mortgage Companhia Hipotecaria.
The first four are real estate developers groups in Sao Paulo
and other major metropolitan areas in Brazil
The Servicer
FPS Negocios Imobiliarios or FPS-NI will act as servicer for
this transaction. FPS-NI is a division of Fleury, Padua Serpa
Advogados specialized in providing mortgage-related servicing to
the banking industry. FPS-NI is currently the second largest
independent mortgage-related servicing provider in Brazil, with
a pool of approximately 8,000 contracts currently being
serviced.
According to FPS-NI, their servicing practices follow the
industry's standard collection procedures, and in the cases
where loans were originated pursuant to a deed of trust
agreement, "alienacao fiduciaria", FPS-NI will adopt the
foreclosure procedures as outlined by Law 9514/97. Mortgage
payments are made through certified payment vouchers or "boletos
bancarios" directly in any bank in Brazil and deposited into a
segregated trust account. Therefore, there is no commingling
risk with FPS-NI, as the servicer does not handle the collection
funds.
Legal Considerations
Moody's also considered the risk that the securitized assets
could be attached to satisfy any potential tax, labor and social
security liabilities of Brazilian Securities, as established in
Article 76 of the Provisional Measure 2158-35 of August 24th,
2001. According to Luis Barretto, an Analyst at Moody's, this
risk is consistent with the provisional rating assigned to the
certificates.
At closing, Brazilian Securities will provide a legal opinion
stating that it is in good standing with respect to the payment
of federal taxes, labor and social security obligations.
According to the deal's documents, Brazilian Securities has to
certify its compliance with this status on a quarterly basis.
In addition, if the securitization company has tax, labor or
social security liabilities of more than 10% of the total
outstanding balance of CRI's issued by Brazilian Securities, the
deal will turn from a pro-rata payment structure into a full
turbo structure, in which no cash is assigned to the junior
certificates or the residual until the senior certificates are
paid in full.
CAIXA ECONOMICA: Awards BRL77 Million ATM Accord to Perto
---------------------------------------------------------
Caixa Economica Federal aka CEF awarded a BRL77 million contract
to Perto, an electronic banking and public Internet terminal
supplier, to provide ATM and cash dispensers to CEF, according
to magazine TI Inside.
BNamericas relates that Perto will provide its line of PertoFit
products in the next 18 months, plus a series of special
applications CEF requested.
Perto, says BNamericas, will operate 6,200 ATMs and cash
dispensers after CEF installs Perto's equipment in all of its
agencies in the country renewing old machinery and adding
services.
CEF expects that with the equipment, it would be able to boost
its revenues by 40% to BRL150 million in 2006, BNamericas says.
* * *
On Oct. 19, 2005, Moody's Investors Service upgraded Caixa
Economica Federal's long-term foreign currency deposit rating to
B1 from B2 with a positive outlook.
The action followed Moody's upgrade of Brazil's foreign currency
ceiling for deposits to B1, from B2, and the foreign currency
country ceiling for bonds and notes to Ba3, from B1. The country
ceilings have a positive outlook.
===========================
C A Y M A N I S L A N D S
===========================
AHFP CUMBERLAND: Creditors Must File Proofs of Claim by July 15
---------------------------------------------------------------
AHFP Cumberland's creditors are required to submit proofs of
claim by July 15, 2006, to the company's liquidator:
Dwight Dube
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 15 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
AHFP Cumberland' shareholders agreed on May 12, 2006, for the
company's voluntary liquidation under Section 135 of Cayman's
Companies Law (2004 Revision).
AHFP DECCAN: Sets July 15 as Last day to File Proofs of Claim
-------------------------------------------------------------
AHFP Deccan's creditors are required to submit proofs of claim
by July 15, 2006, to the company's liquidator:
Dwight Dube
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the June 15 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
AHFP Deccan's shareholders agreed on May 12, 2006, for the
company's voluntary liquidation under Section 135
of Cayman's Companies Law (2004 Revision).
SANWA CAYMAN FINANCE: Filing of Proofs of Claim Ends on July 14
---------------------------------------------------------------
Sanwa Cayman Finance Limited's creditors are required to
submit proofs of claim by July 14, 2006, to the company's
liquidators:
Richard Gordon
Mike Hughes
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sanwa Cayman Finance's shareholders decided on May 23, 2006, to
place the company into voluntary liquidation under Section 135
of Cayman's Companies Law (2004 revision).
SANWA CAYMAN INT'L: Proofs of Claim Must be Filed by July 14
------------------------------------------------------------
Sanwa Cayman International Investment Limited's creditors are
required to file proofs of claim by July 14, 2006, to the
company's liquidator:
Mike Hughes
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sanwa Cayman International's shareholders agreed on
May 23, 2006, for the company's voluntary liquidation under
Section 135 of Cayman's Companies Law (2004 Revision).
SANWA CAYMAN INVESTMENT: Last Day to File Claims Is on July 14
--------------------------------------------------------------
Sanwa Cayman Investment Limited's creditors are required to file
by July 14, 2006, proofs of claim to the company's liquidators:
Mike Hughes
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sanwa Cayman Investments' shareholders placed the company on
May 23, 2006, on voluntary liquidation under Section 135 of
Cayman's Companies Law (2004 Revision) of the Cayman Islands.
SANWA CAYMAN MONETARY: Proofs of Claim Filing Ends on July 14
-------------------------------------------------------------
Sanwa Cayman Monetary Fund Limited's creditors are required to
submit proofs of claim by July 14, 2006, to the company's
liquidators:
Mike Hughes
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sanwa Cayman's shareholders agreed on May 23, 2006, for the
company's voluntary liquidation under Section 135 of Cayman's
Companies Law (2004 Revision).
SANWA CAYMAN SECURITIES: Claims Filing Will End on July 14
----------------------------------------------------------
Sanwa Cayman Securities Investment Limited's creditors are
required to submit proofs of claim by July 14, 2006, to the
company's liquidator:
Mike Hughes
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sanwa Cayman Securities' shareholders agreed on May 23, 2006,
for the company's voluntary liquidation under Section 135
of Cayman's Companies Law (2004 Revision).
SANWA CAYMAN TREASURY: Filing of Proofs of Claim Ends on July 14
----------------------------------------------------------------
Sanwa Cayman Treasury Fund Limited's creditors are required to
present by July 14, 2006, proofs of claim to the company's
liquidators:
Mike Hughes
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sanwa Cayman Treasury's sole shareholder placed the company on
May 23, 2006, on voluntary liquidation under Section 135 of
Cayman's Companies Law (2004 Revision).
SF BONDS: Creditors Have Until July 14 to Submit Proofs of Claim
----------------------------------------------------------------
SF Bonds Investment Cayman Limited's creditors are required to
submit proofs of claim by July 14, 2006, to the company's
liquidators:
Richard Gordon
Mike Hughes
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
SF Bonds' shareholders agreed on May 29, 2006, to place the
company into voluntary liquidation under Section 135 of Cayman's
Companies Law (2004 revision).
TRINITY FINANCE: Sets July 14 Deadline to File Proofs of Claim
--------------------------------------------------------------
Trinity Finance Holdings Ltd.'s creditors are required to submit
proofs of claim by July 14, 2006, to the company's liquidators:
Guy Major
Richard Gordon
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 14 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
On May 26, 2006, Trinity Finance's shareholders agreed for the
company's voluntary liquidation under Section 135 of Cayman's
Companies Law (2004 revision).
=========
C H I L E
=========
SCOTIABANK: Chile Unit Needs US$1 Billion for Expansion Plans
-------------------------------------------------------------
The Chilean unit of the Bank of Nova Scotia aka Scotiabank would
need US$1 billion to make a significant acquisition, reports
say.
James Callahan, the chief executive officer of local unit
Scotiabank Sud Americano, told reporters in April that the bank
was considering growing through acquisitions to boost its market
share.
Scotiabank controls around 2.6% of the overall banking market in
Chile.
However, it was impossible for Scotiabank to grow significantly
in Chile unless you make an acquisition, Mr. Callahan told the
reporters.
Andre Bergoeing, an analyst at LarrainVial, told BNamericas that
to boost Scotiabank's current market share to 10%, it would need
to buy something with a market cap in the US$1 billion range
like Corp Banca and the local unit of Spain's BBVA.
Corp Banca has a market cap of US$1 billion while the local unit
of Spanish giant BBVA has US$800 million.
"But more important than market share is profitability, and
Scotiabank has done a good job this year and 2006 results will
probably be better than last year," Mr. Bergoeing told
BNamericas.
A Scotiabank spokesperson told BNamericas, "We have more than
US$4 billion in excess capital. However, a US$1 billion
investment in one country would be a large one given our current
risk profile."
Rick Waugh, the president and chief executive officer of
Scotiabank told Diario Financiero, "We will always be interested
in purchase opportunities but right now there are not many
options in the Chilean market."
* * *
As reported in the Troubled Company Reporter on June 15, 2006,
Moody's Investors Service affirmed the ratings and outlook of
the Bank of Nova Scotia (Scotiabank -- long-term deposits at
Aa3, bank financial strength at B, stable outlook) following the
announcement that the bank reached an agreement to acquire 78%
of Corporacion Interfin, S.A., the parent of Banco Interfin,
S.A. Scotiabank will merge Interfin with its Costa Rican
subsidiary, Scotiabank de Costa Rica S.A.
===============
C O L O M B I A
===============
* COLOMBIA: Starting Pipeline Works with Venezuela on July 8
------------------------------------------------------------
Construction of a gas pipeline connecting Colombia and Venezuela
will start on July 8, Prensa Latina reports.
Rafael Ramirez, the Energy and Oil Minister of Venezuela, told
Prensa Latina that they are putting the finishing details to
start the construction.
Minister Ramirez told Prensa Latina that the pipeline will be
used to import 150 million cubic meters of gas which will change
the energy policy of the Venezuelan state of Zulia.
Construction of another project for the delivery of oil to Asia
from a terminal in the Colombian Pacific area and electric
interconnections is also being planned, Prensa Latina relates,
citing Minister Ramirez.
A plan on allowing indigenous communities to sell items in the
border zone is also being considered, the minister told Prensa
Latina.
The project will permit a better quality of life for populations
on the border, Luis Mejias, the energy minister of Colombia,
told Prensa Latina.
* * *
Colombia's ratings affirmed by Fitch are:
-- Foreign currency Issuer Default Rating (IDR) 'BB';
-- Local currency Issuer Default Rating (IDR) 'BBB-';
-- Country Ceiling 'BB';
-- Short-term 'B'.
===================================
D O M I N I C A N R E P U B L I C
===================================
FALCONBRIDGE LTD: Xstrata Gets Canadian Anti-Trust Clearance
------------------------------------------------------------
Xstrata plc received an Advance Ruling Certificate from the
Canadian Competition Bureau with respect to its offer to purchse
Falconbridge Limited for CDN$16.1 billion. Xstrata is now free
to pursue its bid for the Canadian company.
As previously reported, the U.S. Department of Justice had also
cleared Xstrata's offer from any competition issues. The
decision from the European competition authorities will be given
on July 13, 2006.
About Xstrata
Xstrata plc -- http://www.xstrata.com/-- is a major global
diversified mining group, listed on the London and Swiss stock
exchanges. The Group is and has approximately 24,000 employees
worldwide, including contractors.
Xstrata does business in six major international commodities
markets: copper, coking coal, thermal coal, ferrochrome,
vanadium and zinc, with additional exposures to gold, lead and
silver. The Group's operations and projects span four
continents and nine countries: Australia, South Africa, Spain,
Germany, Argentina, Peru, Colombia, the U.K. and
Canada.
About Falconbridge
Headquartered in Toronto, Ontario, Falconbridge Limited
(TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a
leading copper and nickel company with investments in fully
integrated zinc and aluminum assets. Its primary focus is the
identification and development of world-class copper and nickel
orebodies. It employs 14,500 people at its operations and
offices in 18 countries. The Company owns nickel mines in
Canada and the Dominican Republic and operates a refinery and
sulfuric acid plant in Norway. It is also a major producer of
copper (38% of sales) through its Kidd mine in Canada and its
stake in Chile's Collahuasi mine and Lomas Bayas mine. Its
other products include cobalt, platinum group metals, and zinc.
* * *
Falconbridge's CDN$150 million 5% convertible and callable bonds
due April 30, 2007, carries Standard & Poor's BB+ rating.
=============
E C U A D O R
=============
* ECUADOR: Posts US$257 Mil. Budget Deficit in First Four Months
----------------------------------------------------------------
Ecuador saw a US$257 million budget deficit in January-April
period, Dow Jones Newswires reports.
Ecuador, says Dow Jones, has a US$8.56 billion government budget
in 2006. In 2005, it had about US$7.34 billion.
According to Dow Jones, the 2006 budget has a financing gap of
about US$360 million, which the government will cover with loans
from multilateral agencies.
Dow Jones relates that total central government revenues were
US$2.04 billion while the amount of expenditures was US$2.30
billion. Of the total expenditures, 55% were recurrent.
The economy ministry told Dow Jones that the federal income in
the first four months was due to:
-- US$1.34 million from tax receipts,
-- US$123 million oil-related payments, and
-- the remaining came from mining and other sources.
Dow Jones reported these expenditures:
-- US$233 million external debt amortization, with US$211
million interest payments, and
-- US$16 million internal debt amortization, with
US$5 million interest payments.
External government financing was US$150 million while the
treasury issued US$19 million in public debt domestically, Dow
Jones states.
* * *
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: Gets IDB US$5-Mil Loan for Microfinance Expansion
----------------------------------------------------------------
The Inter-American Development Bank's Multilateral Investment
Fund disclosed the approval of a US$5 million loan and
US$300,000 in technical assistance for a project to help the
Nicaragua and El Salvador affiliates of a leading Central
American financial group expand into microfinance.
The MIF grant will assist Banco Uno Nicaragua and Banco Uno El
Salvador, units of Grupo Financiero Uno, in developing new small
business and microenterprise loan products. This process is
known as "downscaling" since commercial banks must acquire
appropriate methodologies and train their staff to serve a
different segment of the market.
Traditionally, microfinance has grown as NGOs turned into
regulated financial institutions to be able to take deposits and
leverage their resources to provide more loans. While this
industry has exploded over the past three decades to reach a
lending volume of US$5 billion in 2005, it is only covering
about 10 percent of the estimated demand in the region.
One of the quickest and most effective ways to close the gap is
to bring more commercial banks into microfinance, as these
institutions usually have lower cost structures, larger networks
of branches and ATMs and access to cheaper funding on longer
terms.
Under the project, Banco Uno's affiliates in El Salvador and
Nicaragua will adapt their credit card-based lending mechanisms
to finance small businesses and microenterprises. They will
also start a savings program for low-income clients, such as
microenterprise owners and workers.
The MIF will also make Banco Uno Nicaragua a US$5 million loan
to provide working capital and term financing to small business
owners and microentrepreneurs. Another IDB Group affiliate, the
Inter-American Investment Corporation, has already approved a
US$10 million loan to Banco Uno El Salvador for a parallel
program.
These two operations, which are expected to generate loans for
nearly 20,000 small businesses and microenterprises in Nicaragua
and El Salvador over a 5-year period, are examples of the
projects the IDB Group plans to support under its Building
Opportunity for the Majority initiative.
The plan, which was launched this week, seeks to multiply low-
income people's opportunities to build assets and improve their
living standards by expanding access to formal financial
services, housing, basic infrastructure, job training and
employment, and modern technologies.
The MIF, an autonomous fund administered by the IDB, supports
private sector development in Latin America and the Caribbean,
which an emphasis on microenterprises and small businesses.
* * *
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
=================
G U A T E M A L A
=================
* GUATEMALA: Panama Accuses Country of Misrepresentation
--------------------------------------------------------
Alejandro Ferrer, the minister of trade and industry in Panama,
told Prensa Latina that Guatemala used incorrect figures to gain
an advantage over his country on hosting Mexico's refinery
project.
As reported in the Troubled Company Reporter on June 6, 2006,
Fernando Canales -- the energy minister of Mexico -- said that
Guatemala and Panama had been disputing who would host the
construction for Mexico's petroleum refinery project.
Panama and Guatemala were considered as the probable locations
for the refinery project of the Mesoamerican Energy Integration
Program aka PIEM, a program of the government of Mexico. Edgar
Rangel, an advisor of Mexico's energy ministry Sener, said that
the refinery would supply the Central America and Mexico,
processing about 230,000-250,000 barrels a day (b/d) of oil to
produce 120,000b/d of gasoline.
Prensa Latina recalls that the Extraordinary Summit of Central
American Integration System or SICA, held in the Dominican
Republic on June 1, decided to let the private investors select
the site where the refinery will be built.
Central American energy ministers should talk with investors to
present offers for construction before August, Prensa Latin
relates, citing Manuel Jose Paredes, Panamanian Trade and
Industry Assistant Minister.
Minister Paredes told the press that Panama hopes to fund this
multi-million dollar investment with loans from international
financial institutions.
Prensa Latina states that the cost of construction is estimated
at US$6.3 billion dollars, with a refining capacity of 360,000
barrels daily.
Panama counts on a hydrocarbon law, besides dedicating personnel
for coordination of the work. The country has destined almost
10,000 acres of land in Puerto Armuelles, Chiriqui Province, for
the plant, Minister Paredes told Prensa Latin.
* * *
Fitch Ratings assigned these ratings on Guatemala:
Rating Rating Date
------ -----------
Country Ceiling BB+ Feb. 22, 2006
Long Term IDR BB+ Feb. 22, 2006
Short Term IDR B Feb. 22, 2006
Local Currency
Long Term Issuer
Default Rating BB+ Feb. 22, 2006
* * *
Fitch also rated Guatemala's senior unsecured bonds:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
Aug. 3, 2007 US$150,000,000 8.5% BB+
Nov. 8, 2011 US$325,000,000 10.25% BB+
Aug. 1, 2013 US$300,000,000 9.25% BB+
Oct. 6, 2034 US$330,000,000 8.125% BB+
* GUATEMALA: Posts GTQ442MM First Quarter Banking Sector Profits
----------------------------------------------------------------
Figures from Superintendencia de Bancos or SIB, the financial
system regulator of Guatemala, show that the country's banking
sector saw its profits rise 34.5% to GTQ442 million in the first
quarter of 2006, compared to a GTQ329 million recorded in the
same quarter last year.
SIB posted these results in the first quarter of 2006 as
compared to the same quarter in 2005:
-- net interest income rose 25.7% to GTQ1.23 billion,
-- net fee revenues increased 21.5% to GTQ201 million,
-- assets increased 18.6% to GTQ92.6 billion,
-- performing loans grew 27.0% to GTQ45.8 billion,
-- liabilities rose 18.2% to GTQ84.5 billion
-- deposits increased 17.5% to GTQ69.6 billion,
-- administrative expenses rose 24.8% to GTQ1.02 billion
-- past-due loans grew to 5.9% of total loans in the first
quarter compared to 4.9% in the same quarter of 2005, and
-- the average capitalization ratio was 8.2%, the lowest in
Central America's banking industry.
Of the 26 banks in Guatemala, these five banks had the highest
market share in terms of assets:
-- Banco Industrial (21%),
-- Banco G&T Continental (15.7%),
-- Banco de Desarrollo Rural (12.4%),
-- Banco del Cafe (7.8%), and
-- Banco Agromercantil de Guatemala (5.4%).
Reynaldo Lopez, Fitch Ratings Central America financial
institutions and insurance director, told BNamericas, "Although
first quarter results are positive, banks need to increase
provisions further to cover past-due loans. If the latter were
taken into account, profits would definitely be lower."
Guatemala's bank lending has been growing, especially consumer
loans. However, the quality of loans could suffer in coming
months as some loans start to mature, BNamericas states, citing
Mr. Lopez.
* * *
Fitch Ratings assigned these ratings on Guatemala:
Rating Rating Date
------ -----------
Country Ceiling BB+ Feb. 22, 2006
Long Term IDR BB+ Feb. 22, 2006
Short Term IDR B Feb. 22, 2006
Local Currency
Long Term Issuer
Default Rating BB+ Feb. 22, 2006
* * *
Fitch also rated Guatemala's senior unsecured bonds:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
Aug. 3, 2007 US$150,000,000 8.5% BB+
Nov. 8, 2011 US$325,000,000 10.25% BB+
Aug. 1, 2013 US$300,000,000 9.25% BB+
Oct. 6, 2034 US$330,000,000 8.125% BB+
===============
H O N D U R A S
===============
* HONDURAS: Will Launch Auction for Construction of Aerodrome
-------------------------------------------------------------
The government of Honduras will launch the tender process for
the Rio Amerillo aerodrome construction in Copan, according to
local paper La Prensa.
Business News Americas relates that the bidding process will
start after President Manuel Zelaya receives recommendations
from the United Nations Educational, Scientific and Cultural
Organization or Unesco, which will be on July 30. The tender
will be awarded 120 days after the launching, with construction
slated to begin before the end of 2006.
According to BNamericas, two firms from Taiwan are interested in
the project. The Taiwanese government contributed US$5 million
for the initiative.
Construction will cost about US$7.6 million, BNamericas relates.
The aerodrome will be located 1.5km from the Rio Amarillo
archeological park and 17km from the Mayan ruins, which make
Copan one of the main tourist attractions in Honduras.
The construction of an aerodrome is expected to boost tourism in
Copan, BNamericas reports.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
------ -----------
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
KAISER ALUMINUM: Court Signs Order Reducing Bonneville Claims
-------------------------------------------------------------
Judge Judith K. Fitzgerald of the U.S. Bankruptcy Court for the
District of Delaware signs an agreed order presented by Kaiser
Aluminum & Chemical Corporation and Bonneville Power
Administration providing that:
(1) Claim No. 16612 is allowed as an unsecured, nonpriority
claim for US$6,062,000;
(2) Claim No. 3106 is allowed as an unsecured, nonpriority
claim for US$1,686,867; and
(3) Claim No. 3107 is allowed as an unsecured, nonpriority
claim for US$555,351.
Claim No. 3105, which is amended and superseded by Claim No.
16612, is disallowed in its entirety and expunged.
The Reorganizing Debtors' claim in the agreed amount of
US$290,000 against the U.S. Department of Energy under their
Extrusion Press Agreement dated June 6, 1997, will be set off
against Claim No. 7325.
Claim No. 7325 is allowed as an unsecured, nonpriority claim in
for US$3,013,939 less by 50% of a tax refund authorized in the
Debtors' stipulations with various U.S. Government units,
including the Internal Revenue Service.
Any claims of the Debtors or the DOE under the Extrusion Press
Agreement are deemed released.
The Court's decision does not affect the rights and claims of
any federal agency other than Bonneville Power and DOE nor will
it limit the rights of the U.S. Government to set off any
additional amounts it may determine to owe to the Debtors
against Bonneville Power's claims.
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, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corporation -- 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. 98; Bankruptcy Creditors' Service, Inc.,
215/945-7000)
SUGAR COMPANY: Cabinet to Finalize Privatization of Assets
----------------------------------------------------------
Jamaica's Cabinet will finalize the privatization of the six
assets of Sugar Company of Jamaica when it gets a buyer in July,
The Jamaica Gleaner reports.
Megan Deane, the director of operations at the National
Investment Bank of Jamaica told The Gleaner that the divestment
mechanism that will be submitted to the Cabinet in July will see
the government deciding whether the privatization would be
through:
-- lease
-- lease with call option, or
-- outright sale.
Other issues including strategies for dealing with litigation,
employee displacement and social implications will also be
discussed by Cabinet, The Gleaner states, citing Ms. Deane.
As reported in the Troubled Company Reporter-Latin America on
June 14, 2006, the SCJ received ten bids from international
investors for the purchase of its five factories. The offers
came from firms in:
-- United States,
-- Canada,
-- Brazil, and
-- India.
The Gleaner relates that Allan Rickards, the head of the All-
Island Cane Farmers Association, has also shown interest in
acquiring Sugar Company's assets, saying that he has partnered
with Brazilian group Aracatu to participate in the bidding.
Ms. Deane, however, declined to reveal the bidders. She told
the Financial Gleaner that it is against policy to provide
details on entities that express interest in privatization.
The properties to be divested include:
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.
Sugar Company of Jamaica 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.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production.
SUGAR COMPANY: Stakeholders Worry Despite Government Assurances
---------------------------------------------------------------
Stakeholders continue to worry that the Sugar Company of Jamaica
would collapse despite assurances that the industry will
continue operating amid financial crisis, Radio Jamaica reports.
Radio Jamaica recalls that Roger Clarke, the minister of
agriculture, told stakeholders that they didn't have to worry as
the government is doing everything to ensure there are no
disruptions while it tries to solve Sugar Company's problems.
As reported in the Troubled Company Reporter on June 14, 2006,
the government has been trying to find solutions to the
financial crisis Sugar Company is facing and trying to assure
sugar workers and farmers that it will continue to meet its
obligations.
However, Allan Rickards -- the chairman of the All-Island
Jamaica Cane Farmers Association -- told Radio Jamaica that this
has failed to restore calm to the industry.
Since reports on the National Commercial Bank's withdrawal of
financial support from Sugar Company surfaced, there has been
uncertainty in the sugar industry, Radio Jamaica relates.
Sugar Company of Jamaica 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.
Sugar Company blamed its financial deterioration to the
reduction in sugar cane production.
===========
M E X I C O
===========
AXTEL SA: Balks at National "Calling Party Pays" Scheme
-------------------------------------------------------
Axtel S.A. de CV, Alestra, and Avantel, said in a statement they
strongly disagree with the National "Calling Party Pays" scheme
or CPP-N published by the Federal Gazette on April 13, 2006,
which would become effective as of October this year.
The chief exectuive officers of the three companies argued that
the CPP-N would spread to the long distance market the rate
distortion between calls from fixed telephones to cell phones
and from mobile phone to mobile phone, a distortion already
existing in the local telephone market since the scheme was
first applied in 1998, which has resulted in a subsidy to mobile
telephony by fixed telephony. They also pointed out that this
unnecessary subsidy promotes an artificial migration of traffic
from fixed networks to mobile networks, which prevents healthy
competition in the telecommunications sector.
The CEOs remarked that calls from a fixed telephone to a cell
phone cost MXN2.03 per minute, more than twice the calls made
from one cell phone to another. This is due to the fact that
mobile telephone companies charge MXN1.54 per minute to the
fixed telephone companies for completing a call over their nets,
which is 15 times the amount charged by fixed telephone
companies to mobile telephone companies for the same service,
which is 11 cents a minute.
So far, the cellular carrier keeps 76 per cent of the MXN2.03
per minute rate charged to the end user.
"Calling Party Pays is an excellent idea, provided that it is
one and the same for all users," said Alestra CEO Rolando
Zubiran. "The distinction against fixed service users
established by the current scheme would be easily eliminated if
the interconnection rates between carriers were set at more
equitable levels, a task that is the authority's duty," he
concluded.
In turn, Avantel CEO Oscar Rodriguez said, "A generalized
reduction of the rates charged for fixed telephone calls to
cellular phones would not only benefit the millions of users of
this service, but would also make the penetration of fixed lines
in Mexico increase. This, in turn, would promote the
development of accessible broadband services and, consequently,
would help reduce the digital gap between Mexico and the
developed countries, as well as between Mexicans from different
social strata," he explained.
Axtel CEO Tomas Milmo observed that, from the technological
point of view, there is no reason for charging different rates,
"This huge disparity in the rates charged for the services is
making users of fixed telephony pay for Calling Party Pays, in
local calls, a subsidy of almost 13 billion pesos a year to cell
phone companies. That means up to one thousand pesos per fixed
line, not to mention the revenues that the scheme will generate
once it is applied on long distance calls."
Alestra, Avantel, and Axtel proposed that the Calling Party Pays
benefit should be made real and complete for the entire
population, without discriminating against any groups of users,
through the following measures:
-- No cellphone-to-cellphone rate should exist below the
fixed-cellphone interconnection costs;
-- Agreements on interconnection rates should be reached to
help recover costs and prevent excessive margins that are
detrimental to the final user; and
-- Elimination of cross-subsidies between services and
networks.
All three CEOs emphasized that their companies are under an
obligation to defend their clients against the approved Calling
Party Pays scheme, an abuse that has brought benefit to the
cellphone companies by distorting competition in the sector and
wasting their users' resources. They consider they have an
obligation to continue to defend their clients before any
instances, if need be.
About Alestra
Alestra provides Mexico with broadband and value added services
with the support of AT&T, a brand that is world-renowned.
Alestra's Network in Mexico, with an optical equipment backbone
that is based on cutting-edge technology, gives seamless access
to the AT&T Worldwide Intelligent Network, which transmits over
250 million voice and data messages in over 280 countries and
territories on a daily basis. Alestra is the first
telecommunications carrier in Mexico to obtain ISO 9002
certification for all of its processes.
About Avantel
Avantel -- http://www.avantel.com.mx/-- the IP Company, offers
a wide portfolio of telecommunications services to the
residential and business sectors. Its offer is especially
designed to meet the various needs of companies of all kinds and
from all sectors, which can thus get from intelligent voice and
data transmission to Virtual Private Networks, integrated
telecommunications solutions, and information technologies, as
well as an advanced array of managed services.
About Axtel
Axtel, S.A. de C.V. provides local and long distance
telecommunications services, data transmission and Internet
services in Mexico, to both residential and business customers.
The company has 600,000 installed lines. Axtel posted net
profits of 306 million pesos (US$29 million) for 2005 compared
to a loss of 79.6 million pesos in 2004.
* * *
Axtel's 11% US$249,870,000 note due Dec. 15, 2013, is rated B1
by Moody's and B+ by Standard & Poor's.
DELTA AIR: Will Launch Flights to Mexico on December 1
------------------------------------------------------
Delta Air Lines has received U.S. Department of Transportation
approval to offer customers nonstop flights between its largest
hub in Atlanta and the Mexican destination of Leon/Guanajuato
effective Dec. 1, 2006.
Delta Connection carrier Atlantic Southeast Airlines using 70-
seat jets will operate the new daily flight. The service is
still subject to foreign government approval. The new flight
will supplement existing service from Atlanta to 10 other cities
in Mexico, including new nonstop Delta service launched in the
last year to:
-- Acapulco,
-- Ixtapa/Zihuatanejo,
-- Merida, and
-- Puerto Vallarta.
"During 2006 Delta has become the fastest growing U.S. airline
to Mexico and we are pleased to offer our customers service to
Leon/Guanajuato as the latest addition in our growing
international route system. Delta is the only airline to
operateservice between Atlanta and Mexico with an extensive
schedule of flights that continues to advance the interests of
business and tourism between the Southeastern United States and
Mexico," said Bob Cortelyou, Delta's vice president in Network
Planning.
Delta is the market leader to Mexico from the Southeastern
United States with 118 weekly flights to 11 destinations planned
from the Atlanta hub this December. Year over year, this growth
represents an 83% increase in the number of destinations served
from Atlanta.
This is Delta's schedule between Atlanta and Leon/Guanajuato,
Mexico, effective Dec. 1:
Flight Departs Arrives Carrier
Aircraft
4097 Atlanta Leon/Guanajuato ASA CRJ700
at 5:15 p.m. at 8 p.m.
4096** Leon/Guanajuato Atlanta ASA CRJ700
at 8:20 a.m. at 12:40 p.m.
**Flight begins Dec. 2, 2006
Delta's planned expansion into Mexico is the latest in a series
of more than 40 new routes added or announced to Latin American
and the Caribbean in the last year as part of the largest
international expansion in Delta's history. In recent months,
Delta has begun service to new nonstop destinations including:
-- from Atlanta to
Mexico
* Acapulco,
* Merida, and
* Ixtapa/Zihuatanejo,
Honduras
* San Pedro Sula, and
* Roatan;
-- from Cincinnati to Los Cabos, Mexico;
-- from Salt Lake City to Mazatlan, Mexico;
-- from New York JFK to
Mexico
* Puerto Vallarta, and
* Acapulco; and
-- from Los Angeles to Ixtapa/Zihuatanejo.
Headquartered in Atlanta, Georgia, Delta Air Lines --
http://www.delta.com/-- is the world's second-largest airline
in terms of passengers carried and the leading U.S. carrier
across the Atlantic, offering daily flights to 502 destinations
in 88 countries on Delta, Song, Delta Shuttle, the Delta
Connection carriers and its worldwide partners. The Company and
18 affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts. Timothy R. Coleman at The Blackstone
Group L.P. provides the Debtors with financial advice. Daniel
H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump
Strauss Hauer & Feld LLP, provide the Official Committee of
Unsecured Creditors with legal advice. John McKenna, Jr., at
Houlihan Lokey Howard & Zukin Capital and James S. Feltman at
Mesirow Financial Consulting, LLC, serve as the Committee's
financial advisors. As of June 30, 2005, the company's balance
sheet showed US$21.5 billion in assets and US$28.5 billion in
liabilities.
GRUPO MEXICO: May Resolve Strike If Government Intervenes
---------------------------------------------------------
Grupo Mexico SA de C.V. told Reuters that the strikes at its
copper mines may be put to an end through government
intervention in talks the company is holding with its employees.
Grupo Mexico was going to pursue with shutting down the La
Caridad mine but was waiting to see if the government could help
end the strikes.
As reported in the Troubled Company Reporter-Latin America on
June 15, 2006, the National Mining and Metal Workers Union has
been in conflict with the Mexican government over the union
leadership since March 24. Labor authorities maintained that
dissident Elias Morales is the leader and not Napoleon Gomez
Urrutia, whom the union has ratified. Mr. Urrutia, currently in
Canada, is being investigated on allegations of misuse of US$55
million Grupo Mexico handed for distribution among workers in
2004 as part of the 1990 privatization of Cananea and La
Caridad.
Grupo Mexico SA de C.V. -- http://www.grupomexico.com/--
through its ownership of Asarco and the Southern Peru Copper
Company, Grupo Mexico is the world's third largest copper
producer, fourth largest silver producer and fifth largest
producer of zinc and molybdenum.
* * *
Fitch Ratings assigned these ratings to Grupo Mexico SA de C.V.:
-- foreign currency long-term debt, BB; and
-- local currency long-term debt, BB.
J.L. FRENCH: Court Extends Lease Decision Period to Sept. 8
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware allowed
J.L. French Automotive Casting, Inc. and its debtor-affiliates
to decide on their unexpired leases until Sept. 8, 2006.
The unexpired leases include many of the Debtors' primary
warehousing and sales office facilities. The Debtors told the
Court that they needed additional time to determine whether to
assume or reject those leases due to their large and complex
chapter 11 cases.
The Debtors assure the Court that the extension will not harm
lessors but will merely preserve the status quo while they
decide on the leases.
Headquartered in Sheboygan, Wisconsin, J.L. French Automotive
Castings, Inc. -- http://www.jlfrench.com/-- is a global
supplier of die cast aluminum components and assemblies with
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
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.
MERIDIAN AUTOMOTIVE: Disclosure Statement Hearing on June 27
------------------------------------------------------------
Meridian Automotive Systems, Inc., and its eight debtor-
affiliates filed, on May 26, 2006, its First Amended Joint Plan
of Reorganization and a Disclosure Statement with the U.S.
Bankruptcy Court for the District of Delaware.
The Debtors ask the Court to approve the Disclosure Statement as
containing adequate information within the meaning of Section
1125 of the Bankruptcy Code.
The Court will convene a hearing on June 27, 2006, to consider
the Disclosure Statement.
Edward J. Kosmowski, Esq., at Young Conaway Stargatt & Taylor,
LLP, in Wilmington, Delaware, notes that Section 1125 requires
the Court to approve a written disclosure statement prior to
allowing a debtor to solicit acceptances for a plan of
reorganization. To approve a disclosure statement, the Court
must find that the disclosure statement contains adequate
information defined as:
"information of a kind, and in sufficient detail . . . that
would enable a hypothetical reasonable investor typical of
holders of claims or interests [of the Debtors] . . . to make
an informed judgment about the plan."
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. 30; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
MERIDIAN AUTOMOTIVE: Informal Committee Says Plan Unconfirmable
---------------------------------------------------------------
Kathleen M. Miller, Esq., at Smith, Katzenstein & Furlow LLP, in
Wilmington, Delaware, notes that during the April 10, 2006,
hearing on the Third Extension Motion, Meridian Automotive
Systems, Inc., and its debtor-affiliates' financial advisor and
chief executive officer each testified that a consensual plan
appeared imminent.
Unfortunately, the Debtors' forecast that a fully consensual
plan would materialize after the third extension of the Debtors'
exclusivity periods has not been realized.
Ms. Miller points out that the only progress achieved since the
U.S. Bankruptcy Court for the District of Delaware approved the
Debtors' previous request to extend their plan exclusivity is an
agreement with the Official Committee of Unsecured Creditors,
which has now agreed to participate as a co-proponent of the
First Amended Joint Plan of Reorganization in exchange for a
sliver of contingent consideration.
According to Ms. Miller, once the Third Extension Motion was
granted, the Debtors substantially ceased communicating with
members of the Informal Committee of First Lien Secured Lenders
until the business day prior to the filing of the First Amended
Plan.
Moreover, the Debtors' First Amended Plan did not move toward an
agreement with the members of the Informal Committee, Ms. Miller
informs the Court. Instead, the Plan adversely changed the
treatment of the holders of Prepetition First Lien Claims. The
proposed treatment is inconsistent with the Debtors' central
contention that holders of Prepetition First Lien Claims are
vastly oversecured, Ms. Miller asserts.
The members of the Informal Committee, which collectively hold
approximately 47% of the Prepetition First Lien Claims, remain
opposed to each of the alternative plan treatments proposed in
the Amended Plan and will vote to reject it, according to Ms.
Mille.
"A plan that does not satisfy applicable requirements for
confirmation under the Bankruptcy Code cannot be confirmed even
if it is only plan on file with the Court," Ms. Miller says.
"Thus, it is imperative that the Debtors understand that
pursuing a non-consensual plan that includes material
confirmation risks, while at the same time precluding
alternatives, carries with it a risk of prolonging their
bankruptcy cases and delaying their exit from Chapter 11."
If prolonging these cases would result in any harm to the
Debtors' businesses, the Debtors should reconsider their
reliance on a single controversial plan, Ms. Miller maintains.
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. 30; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
MERIDIAN AUTOMOTIVE: Wants Aug. 22 Confirmation Hearing Fixed
-------------------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to
establish uniform procedures for the solicitation and tabulation
of votes to accept the First Amended Joint Plan of
Reorganization Proposed filed by the Debtors, the Official
Committee of Unsecured Creditors, Camulos Master Fund LP, DK
Acquisition Partners, L.P., and Stanfield Capital Partners LLC,
on May 26, 2006.
Solicitation Packages
After the Court approves the Disclosure Statement, the Debtors
propose to distribute or cause to be distributed solicitation
packages to those Holders of Claims in Classes entitled to vote
on the Plan, containing copies of:
(a) a CD-ROM containing the Disclosure Statement, together
with the Plan and other exhibits;
(b) the Solicitation Order, excluding its exhibits;
(c) a notice of the Confirmation Hearing;
(d) a ballot together with a return envelope; and
(e) other materials as the Court may direct or approve,
including supplemental solicitation materials the Debtors
may file with the Court.
With respect to any transferred Claim, the Debtors propose that
the transferee will be entitled to receive a Voting Solicitation
Package and cast a ballot on account of the transferred Claim
only if:
(a) all actions necessary to effect the Claim transfer have
been completed by the Record Date; or
(b) the transferee files, not later than the Record Date:
* the required documentation to evidence that transfer;
and
* a sworn statement of the transferor supporting the
validity of the transfer.
In the event a Claim is transferred after the transferor has
executed and submitted a ballot to the voting agent, The
Trumbull Group, LLC, the transferee will be bound by any vote
made on the ballot by the Holder as of the Record Date of the
Transferred Claim.
Holders of Claims in the Unimpaired Non-Voting Classes will
receive :
(a) the Confirmation Hearing Notice; and
(b) a notice of their non-voting status under the Plan.
The Debtors propose that they not be required to transmit a
solicitation package to the Rejecting Class, as that Class is
presumed to have rejected the Plan.
The Debtors expect to commence distribution of the Voting
Solicitation Packages, Unimpaired Notices of Non-Voting Status,
and the Rejecting Class Notices no later than 14 days after the
Court approves the proposed Solicitation Procedures.
Any party wishing to obtain a copy of the Disclosure Statement
and the Plan can do so by accessing the documents on the
Internet, free of charge, at http://www.trumbullgroup.com/or by
contacting the Voting Agent to obtain a copy of the documents at
the Debtors' expense.
Record Date
The Debtors ask the Court to establish June 27, 2006, as the
record date for purposes of determining which Holders of Claims
and Prepetition Meridian Interests are entitled to receive
solicitation packages or notices, as applicable, and vote on the
Plan.
Ballot Forms
The Debtors propose to distribute to creditors one or more
ballot forms based on Official Form No. 14, but have been
modified to address the particular aspects of the Debtors'
Chapter 11 cases.
The appropriate ballot forms, along with return envelopes, will
be distributed to the Voting Classes:
Class Type of Claim
----- -------------
3 Prepetition First Lien Claims
4 Prepetition Second Lien Secured Claims
5 Prepetition Second Lien Deficiency Claims
6 General Unsecured Claims
7 Prepetition Subordinated Claims
The Plan designates four claim categories as unclassified for
purposes of voting on and receiving distributions under the
Plan. The Holders of these unclassified Claims are not entitled
to vote to accept or reject the Plan. The Unclassified Claims
include:
1. Administrative Expense Claims,
2. DIP Claims,
3. Priority Tax Claims, and
4. Professional Compensation Claims.
Voting Deadline
The Debtors ask the Court to fix August 10, 2006, at 4:00 p.m.
Eastern Time, as the deadline by which all original ballots must
be properly executed, completed, delivered to, and received by
the voting agent.
Ballot Tabulation
The Debtors propose that if any party wishes to have its Claim
allowed for voting purposes, that party must serve on the
Debtors and file with the Court no later than 10 days before the
Voting Deadline a motion temporarily allowing the Claim for
purposes of voting.
Accordingly, the Debtors ask the Court to fix August 7, 2006, as
the date to consider all those motions.
With respect to ballots cast by Holders of Claims in Class 3,
any Holders that fail to return a ballot or fail to elect one of
the treatment options on its ballot will receive:
(i) the Cash/Equity Treatment, if Class 3 accepts the Plan;
or
(ii) the Cash/Note Treatment, if Class 3 rejects the Plan.
Confirmation Hearing
The Debtors ask the Court to fix Aug. 22, 2006, at 10:30 a.m.
Eastern Time, as the confirmation hearing for the Debtors' Joint
Plan of Reorganization, which may be continued from time to time
without further notice to creditors or other parties-in-
interest.
The Debtors propose to publish the Confirmation Hearing Notice
in The Detroit Free Press, USA Today, and the national edition
of The Wall Street Journal, not less than seven days after the
Solicitation Commencement Date.
Confirmation Objection Deadline
The Debtors ask the Court to fix Aug. 10, 2006, at 4:00 p.m.
Eastern Time, as the last date for filing and serving written
objections to the confirmation of the Plan.
Objections, if any, to the confirmation of the Plan must:
(i) be made in writing;
(ii) state the name and address of the objecting party and the
nature of the Claim or the party's interest;
(iii) state with particularity the legal and factual basis and
nature of any objection to the Plan; and
(iv) be filed with the Court, together with proof of service
and served so that they are received on or before the
Objection Deadline by:
* the Debtors' counsel,
* the United States Trustee,
* the Creditors' Committee's counsel, and
* counsel to Camulos Master Fund, LP, DK Acquisition
Partners, L.P. and Stanfield Capital Partners LLC,
as co-proponents under the Plan.
About Meridian Automotive
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. 30; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
* MEXICO: Panama Allocates Puerto Armuelles as Site for Refinery
----------------------------------------------------------------
Panama has almost 10,000 acres of land in Puerto Armuelles,
Chiriqui Province, for the refinery project of Mexico, Manuel
Jose Paredes, the Panamanian Trade and Industry Assistant
Minister, told Prensa Latina.
As reported in the Troubled Company Reporter-Latin America on
June 6, 2006, Fernando Canales -- the energy minister of Mexico
-- said that Guatemala and Panama had been disputing who would
host the construction for Mexico's petroleum refinery project.
Panama and Guatemala were considered as the probable locations
for the refinery project of the Mesoamerican Energy Integration
Program aka PIEM, a program of the government of Mexico. Edgar
Rangel, an advisor of Mexico's energy ministry Sener, said that
the refinery would supply the Central America and Mexico,
processing about 230,000-250,000 barrels a day (b/d) of oil to
produce 120,000b/d of gasoline.
Prensa Latina recalls that the Extraordinary Summit of Central
American Integration System or SICA, held in the Dominican
Republic on June 1, decided to let the private investors select
the site where the refinery will be built.
Central American energy ministers should talk with investors to
present offers for construction before August, Prensa Latin
relates, citing Manuel Jose Paredes, the Panamanian Trade and
Industry Assistant Minister.
Minister Paredes told the press that Panama hopes to fund this
multi-million dollar investment with loans from international
financial institutions.
The cost of construction is estimated at US$6.3 billion dollars,
with a refining capacity of 360,000 barrels daily, BNamericas
states.
Alejandro Ferrer, the minister of trade and industry in Panama,
told Prensa Latina that Guatemala used incorrect figures to gain
an advantage over his country on hosting Mexico's refinery
project.
* * *
As reported in the Troubled Company Reporter on April 17, 2006,
Standard & Poor's Ratings Services placed an mxBB+ long-term
rating with stable outlook on the state of Mexico.
=================
N I C A R A G U A
=================
* NICARAGUA: Secures US$5MM from IDB for Microfinance Expansion
---------------------------------------------------------------
The Inter-American Development Bank's Multilateral Investment
Fund disclosed the approval of a US$5 million loan and
US$300,000 in technical assistance for a project to help the
Nicaragua and El Salvador affiliates of a leading Central
American financial group expand into microfinance.
The MIF grant will assist Banco Uno Nicaragua and Banco Uno El
Salvador, units of Grupo Financiero Uno, in developing new small
business and microenterprise loan products. This process is
known as "downscaling" since commercial banks must acquire
appropriate methodologies and train their staff to serve a
different segment of the market.
Traditionally, microfinance has grown as NGOs turned into
regulated financial institutions to be able to take deposits and
leverage their resources to provide more loans. While this
industry has exploded over the past three decades to reach a
lending volume of US$5 billion in 2005, it is only covering
about 10 percent of the estimated demand in the region.
One of the quickest and most effective ways to close the gap is
to bring more commercial banks into microfinance, as these
institutions usually have lower cost structures, larger networks
of branches and ATMs and access to cheaper funding on longer
terms.
Under the project, Banco Uno's affiliates in El Salvador and
Nicaragua will adapt their credit card-based lending mechanisms
to finance small businesses and microenterprises. They will
also start a savings program for low-income clients, such as
microenterprise owners and workers.
The MIF will also make Banco Uno Nicaragua a US$5 million loan
to provide working capital and term financing to small business
owners and microentrepreneurs. Another IDB Group affiliate, the
Inter-American Investment Corporation, has already approved a
US$10 million loan to Banco Uno El Salvador for a parallel
program.
These two operations, which are expected to generate loans for
nearly 20,000 small businesses and microenterprises in Nicaragua
and El Salvador over a 5-year period, are examples of the
projects the IDB Group plans to support under its Building
Opportunity for the Majority initiative.
The plan, which was launched this week, seeks to multiply low-
income people's opportunities to build assets and improve their
living standards by expanding access to formal financial
services, housing, basic infrastructure, job training and
employment, and modern technologies.
The MIF, an autonomous fund administered by the IDB, supports
private sector development in Latin America and the Caribbean,
which an emphasis on microenterprises and small businesses.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
===========
P A N A M A
===========
* PANAMA: Construction Sector Posts US$164 Mil. in Investments
--------------------------------------------------------------
The construction sector of Panama has generated a total of
US$164 million investments from January to March, daily Panama
America relates.
According to Business News Americas, the investments led to an
8.74% premium growth to US$36 million during the first four
months of 2006 compared to the same period in 2005.
Due to the opportunities the sector offers, insurers will enjoy
continued strong growth during the rest of the year due to the
opportunities the construction sector offers, Ricardo Garcia,
the insurance regulator, told Panama America.
* * *
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
* PANAMA: Allocates Puerto Armuelles for Mexican Refinery
---------------------------------------------------------
Panama has allocated almost 10,000 acres of land in Puerto
Armuelles, Chiriqui Province, for Mexico's refinery project,
Manuel Jose Paredes, the Panamanian Trade and Industry Assistant
Minister, told Prensa Latina.
As reported in the Troubled Company Reporter on June 6, 2006,
Fernando Canales -- the energy minister of Mexico -- said that
Guatemala and Panama had been disputing who would host the
construction for Mexico's petroleum refinery project.
Panama and Guatemala were considered as the probable locations
for the refinery project of the Mesoamerican Energy Integration
Program aka PIEM, a program of the government of Mexico. Edgar
Rangel, an advisor of Mexico's energy ministry Sener, said that
the refinery would supply the Central America and Mexico,
processing about 230,000-250,000 barrels a day (b/d) of oil to
produce 120,000b/d of gasoline.
Prensa Latina recalls that the Extraordinary Summit of Central
American Integration System or SICA, held in the Dominican
Republic on June 1, decided to let the private investors select
the site where the refinery will be built.
Central American energy ministers should talk with investors to
present offers for construction before August, Prensa Latin
relates, citing Manuel Jose Paredes, the Panamanian Trade and
Industry Assistant Minister.
Minister Paredes told the press that Panama hopes to fund this
multi-million dollar investment with loans from international
financial institutions.
The cost of construction is estimated at US$6.3 billion dollars,
with a refining capacity of 360,000 barrels daily, BNamericas
states.
Alejandro Ferrer, the minister of trade and industry in Panama,
told Prensa Latina that Guatemala used incorrect figures to gain
an advantage over his country on hosting Mexico's refinery
project.
* * *
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
* PANAMA: Sets US$568 Mil. 2007 Budget for Canal Expansion
----------------------------------------------------------
Panama's Cabinet Council allocated a US$568-million budget for
the 2007 expansion of the Panama Canal, Prensa Latina reports.
Prensa Latina states that the new budget was 20% bigger than the
previous one.
The budget of the Panama Canal Authority or ACP is justified
because it will generate significant income, Prensa Latina
relates, citing presidential sources.
According to Prensa Latina, the amount is another unprecedented
number in the Canal history, with direct contributions to the
Treasury of US$833 million.
A presidential spokesperson told Prensa Latina that because of
the Canal, Panama will also receive US$120-million in indirect
contributions.
* * *
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
=====================
P U E R T O R I C O
=====================
ADELPHIA COMMS: Court Approves Century/ML Settlement Agreement
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved the Settlement Agreement and Mutual General Release
Adelphia Communications Corporation and its debtor-affiliates
entered into with Century/ML Cable Venture.
Adelphia Communications and its wholly owned, indirect
subsidiary, Century Communications Corp., entered into a
Settlement Agreement and Mutual General Release on May 11, 2006,
with the:
-- post-confirmation bankruptcy estate of Century/ML Cable
Venture; and
-- ML Media Partners, LP, former co-owner of Century/ML.
Century/ML is a joint venture that was owned 50% by Century and
50% by ML Media; and sold, pursuant to an Interest Acquisition
Agreement dated June 3, 2005, to San Juan Cable, LLC, an entity
formed by MidOcean Partners, and its partner, Crestview
Partners.
The sale was consummated on Oct. 31, 2005, with one-half of the
net proceeds placed in an escrow account for the benefit of
ML Media and the other half placed in an escrow account for the
benefit of Century.
Pursuant to the Settlement Agreement, ML Media will receive:
a. approximately US$264,000,000 in the ML Media Escrow
Account;
b. US$87,000,000 settlement payment from Century out of the
Century Escrow Account funds; and
c. general releases and indemnities related to the
continuing relationship with San Juan Cable, which the
Debtors will provide.
The Debtors, on the other hand, will receive:
a. approximately US$264,000,000 in the Century Escrow
Account, less the US$87,000,000 Settlement Payment and a
US$3,600,000 payment to San Juan Cable;
b. US$24,400,000 from ML Media's transfer of right to
receive half of the Delayed Consideration. As provided
by the Interest Acquisition Agreement and Century/ML's
Plan of Reorganization, the Delayed Consideration
consists of:
-- the funds remaining in the Plan Funding Reserve, at
least US$6,000,000 of which will become immediately
available to Century on the Settlement Agreement's
consummation;
-- the US$25,000,000 in the Indemnity Escrow Account.
Pursuant to the Settlement Agreement, Century will now
be entitled to all recoveries from the Indemnity
Escrow Account, half of which is scheduled to be
released on June 31, 2006, and the other half on
December 31, 2006; and
-- the US$31,500,000 Deferred Purchase Price that secures
the obligations of Century/ML to pay certain tax
liabilities. The deferred purchase price will be paid
out in installments over several years. Pursuant to
the Settlement Agreement, the Debtors will be entitled
to receive ML Media's share of the Deferred Purchase
Price. The Debtors presently estimate a maximum
recovery of approximately US$11,800,000 of the
Deferred Purchase Price; and
c. general releases, including those relating to claims of
Century/ML, and dismissal of all litigation.
A copy of the Settlement Agreement is available for free at
http://ResearchArchives.com/t/s?9b4
About Adelphia
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. 135;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
DRESSER INC: S&P Lowers Corporate Credit Rating to B from B+
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on energy and oilfield equipment manufacturer Dresser
Inc. to 'B' from 'B+'. The ratings remain on CreditWatch with
negative implications.
"The rating action reflects the company's ongoing delays in
filing audited financial statements," said Standard & Poor's
credit analyst Jeffrey Morrison.
Although the company has received filing extensions from its
bondholders and secured and unsecured lenders, which alleviates
the potential for near-term liquidity or acceleration events,
the fact that there was the potential for such events further
underscores our concerns that additional negative issues or
events could arise should delays in filing not be completed in a
timely fashion.
In addition, Dresser announced in May that it would be restating
its financial statements. Although the restatements are not
expected to meaningfully affect the company's cash flow, debt
levels, or liquidity, Standard & Poor's highlights that this
will be the third round of restatements for Dresser in the past
three years.
The CreditWatch listing reflects the potential for ratings to be
lowered further or affirmed in the near term. If Dresser is
able to complete its filing process in the near term, it is
likely that ratings could be affirmed at the current level.
However, a rating affirmation would depend on a full review of
the company and audited financial statements once they are made
available.
SAFETY-KLEEN: S&P Rates US$395M Senior Secured Facility at BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating and stable outlook to Plano, Texas-based parts
cleaning, oil recycling and re-refining, and industrial waste
management company Safety-Kleen Systems Inc.
At the same time, Standard & Poor's assigned its 'BB-' bank loan
rating and recovery rating of '3' to Safety-Kleen's US$395
million senior secured credit facility. The credit facility
will consist of:
* a US$100 million revolving credit facility due 2012;
* a US$65 million letter of credit facility due 2013; and
* a US$230 million term loan B due 2013.
The 'BB-' bank loan rating is the same as the corporate credit
rating. This and the '3' recovery rating indicate that lenders
can expect meaningful (50%-80%) recovery of principal in the
event of a payment default.
"The ratings on Safety-Kleen reflect its aggressive capital
structure without the benefit of a track record regarding
financial policies," said Standard & Poor's credit analyst Robyn
Shapiro. "They also reflect the company's relatively low
profitability, and pricing and volumes that are somewhat
vulnerable to industry cycles."
These factors are partially mitigated by the company's leading
market positions in niche markets and its diversified customer
base.
The company will use proceeds of the proposed term loan,
together with proceeds of an equity rights offering of US$115
million, to repay some outstanding balances, redeem some
preferred equity, and pay related fees and expenses. The
prefunded letter of credit facility will replace the company's
existing letter of credit facility.
Safety-Kleen Systems, Inc. headquartered in Plano, TX, is a
provider of parts washers, industrial waste management and oil
recycling and re-refining services. Safety-Kleen serves 400,000
customers in a broad range of industries in the United States,
Canada and Puerto Rico and is the largest recovery and recycling
company for used oil products in North America. The company is
privately held and had revenues of approximately US$925 million
for the fiscal year ending December 31, 2005. Safety-Kleen
emerged from Chapter 11 bankruptcy protection in December 2003.
ZALE CORP: Board Ends Potential Merger Talks with Signet Group
--------------------------------------------------------------
Signet Group approached Zale Corporation (NYSE:ZLC)
regarding a potential business combination. After careful
consideration, Zale's board of directors has terminated the
discussions, having concluded that its shareholders are best
served by continuing as an independent company. Zale's board
said that it remains focused on driving shareholder value as its
first and foremost goal.
"We are putting the pieces in place to regain market share and
improve profitability and have strengthened leadership in key
operating units," Betsy Burton, Acting Chief Executive Officer,
commented. "Our management team is fully focused on preparing
the Company for the 2006 Holiday Season, having developed a
sound 'back to basics' plan for accomplishing its key strategic
objectives."
Ms. Burton went on to say that given the Company's strong
potential as a stand-alone business, executing its strategy
offers the best prospect for enhancing shareholder value. The
Company also indicated that it intends to announce the results
of its CEO search within the next several weeks.
Zale Corporation further reiterated its policy of not commenting
on market rumors.
Headquartered in Irving, Texas, Zale Corporation (NYSE: ZLC) --
http://www.zalecorp.com/-- is North America's largest specialty
retailer of fine jewelry operating approximately 2,345 retail
locations throughout the United States, Canada and Puerto Rico.
Zale Corporation's brands include Zales Jewelers, Zales Outlet,
Gordon's Jewelers, Bailey Banks & Biddle, Peoples Jewellers,
Mappins Jewellers and Piercing Pagoda. Through its ZLC Direct
organization, Zale also operates online at http://www.zales.com/
and http://www.baileybanksandbiddle.com/
* * *
As reported in the Troubled Company Reporter on April 12, 2006,
Zale Corporation reported that the Securities and Exchange
Commission initiated a non-public investigation relating to
various accounting and other matters related to the Company,
including accounting for extended service agreements, leases,
and accrued payroll.
Subpoenas issued in connection with the SEC investigation ask
for materials relating to these accounting matters as well as to
executive compensation and severance, earnings guidance, stock
trading, and the timing of certain vendor payments.
Zale believes that its accounting complied with generally
accepted accounting principles and is reviewing the matter. The
Company will cooperate fully with the SEC's investigation.
=================================
T R I N I D A D & T O B A G O
=================================
MIRANT CORP: Pirate Capital Wants Advisor Hired to Pursue Sale
---------------------------------------------------------------
Pirate Capital LLC informed Mirant Corporation, in a letter
dated June 12, 2006, that it intends to request for a special
meeting of stockholders if Mirant has not publicly abandoned its
bid to acquire NRG Energy Inc. and announced the engagement of
an investment bank to pursue the prompt sale of the company by
June 14, 2006.
The purpose of the special meeting would be to:
a) increase the size of the board of directors to fifteen
members;
b) elect six new directors to the board; and
c) remove at least four of the nine incumbent directors.
A copy of Pirate Capital's letter to the Board is available for
free at http://researcharchives.com/t/s?b7b
As reported in the Troubled Company Reporter on June 14, 2006,
Mirant withdrew its proposal to acquire NRG Energy. NRG had
earlier rejected Mirant's hostile offer and declined to enter
into talks because the proposal allegedly undervalues NRG.
Commenting on the NRG Deal, Mirant's 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."
Pirate Capital, as the investment advisor to Jolly Roger Fund LP
and Jolly Roger Offshore Fund LTD, is the beneficial owner of
approximately 5 million shares, or 1.6%, of Mirant's common
stock.
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's investments in the
Caribbean include three integrated utilities and assets in
Jamaica, Grand Bahama, Trinidad and Tobago and Curacao. 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.
99; 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.
=============
U R U G U A Y
=============
* URUGUAY: State Bank Posts UYU700 Mil. Profits in Five Months
--------------------------------------------------------------
Central bank figures show that profits of Banco Republica aka
BROU, the state-run bank of Uruguay, increased 23.6% to UYU700
million during the January-May period this year compared to the
same period in 2005, Business News Americas reports.
BNamericas relates that operating profits increased 78% to UYU1
billion. Net service income grew 6% to UYU317 million.
Financial margin of BROU increased 86% at UYU2.38 billion
despite provisions increasing to UYU126 million, BNamericas
states.
According to BNamericas, BROU assets rose 29% to UYU152 billion.
Lending grew 31.3% to UYU116 billion. Liabilities including
deposits increased 30% to UYU141 billion.
ROE at the end of May was 10.2% compared with 8.54% at the same
time last year, BNamericas says. ROA grew 0.73% from 0.57%.
Past-due loans, which represented 6.85% of the bank's total
loans, decreased from 7.46% at the end of the five-month period
in 2005, BNamericas reports.
* * *
As reported in the Troubled Company Reporter on May 26, 2006,
Fitch Ratings revised the Outlooks on the Oriental Republic
of Uruguay's Sovereign ratings to Positive from Stable. The
long-term foreign currency Issuer Default Rating is affirmed at
'B+', and the long-term local currency IDR is affirmed at 'BB-'.
The Short-term IDR is affirmed at 'B' and the Country Ceiling is
affirmed at 'BB-'.
* * *
Moody's upgraded Uruguay's long-term foreign currency rating to
B1 from B3 under the revised foreign currency ceilings on
May 24, 2006.
=================
V E N E Z U E L A
=================
* VENEZUELA: Will Start Pipeline Construction with Colombia
-----------------------------------------------------------
Construction of a gas pipeline connecting Colombia and Venezuela
will start on July 8, Prensa Latina reports.
Rafael Ramirez, the Energy and Oil Minister of Venezuela, told
Prensa Latina that they are putting the finishing details to
start the construction.
Minister Ramirez told Prensa Latina that the pipeline will be
used to import 150 million cubic meters of gas which will change
the energy policy of the Venezuelan state of Zulia.
Construction of another project for the delivery of oil to Asia
from a terminal in the Colombian Pacific area and electric
interconnections is also being planned, Prensa Latina relates,
citing Minister Ramirez.
A plan on allowing indigenous communities to sell items in the
border zone is also being considered, the minister told Prensa
Latina.
The project will permit a better quality of life for populations
on the border, Luis Mejias, the energy minister of Colombia,
told Prensa Latina.
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
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Copyright 2006. All rights reserved. ISSN 1529-2746.
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