/raid1/www/Hosts/bankrupt/TCRLA_Public/060622.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, June 22, 2006, Vol. 7, Issue 123
Headlines
A R G E N T I N A
AEROPUERTOS ARGENTINA: Pays Gov't US$32.5 Million & 30% Stake
AEROPUERTOS ARGENTINA: Argentine Government Taking Back Airports
BASICOS SA: Concludes Reorganization Proceeding
CHAMBERS SA: Deadline for Verification of Claims Is on Aug. 29
CLINICA MODELO: Trustee Verifies Creditors' Claims Until Aug. 31
COLORIN INDUSTRIA: Evaluadora Puts D Rating on US$47-Mil. Debt
GLIN SRL: Claims Verification Deadline Is on Aug. 14
PEDRO STORN: Verification of Proofs of Claim Ends on Aug. 24
PRODILAND SA: Sets Aug. 17 Deadline for Claims Verification
TRAMONT SA: Trustee Will Verify Proofs of Claim Until August 29
TROMEN SA: Trustee Has Until Aug. 16 to Verify Proofs of Claim
VARSA SA: Last Day for Verification of Claims Is on August 16
WORLD SAT: Sets Aug. 11 as Last Day to Verify Proofs of Claim
* ARGENTINA: German Court Rules Country Must Pay Investors
* ARGENTINA: Will Ink New Natural Gas Contract with Bolivia
B A H A M A S
WINN-DIXIE: Can Assume Modified JEA Electrical Service Accords
WINN-DIXIE: Five Creditors Want Trade Panel's Request Denied
B E R M U D A
GLOBAL CROSSING: Implements Secure Remote Access to E-Mail
INTELSAT (BERMUDA): Prices Up to US$2.34 Billion Senior Notes
LORAL SPACE: Elects John P. Steinbit as Member of the Board
LORAL SPACE: Skynet Pays Interest on 14% Notes & Series A Stock
B O L I V I A
* BOLIVIA: Ready to Negotiate Free Trade Agreement with US
* BOLIVIA: Vice President Heads to US for Trade Terms Extension
* BOLIVIA: Will Ink New Natural Gas Contract with Argentina
B R A Z I L
CAIXA ECONOMICA: Expands Mortgage Loan to Low-Income Clients
COMPANHIA VALE: Chinese Steelmakers Agree to 19% Iron Ore Hike
ELETROPAULO METROPOLITANA: S&P Rates US$200MM Euro Bonds at B+
EMPRESA ENERGETICA: Fitch Rates US$250MM Notes Offering at BB-
EMPRESA ENERGETICA: S&P Rates US$250MM 10-Year Sr. Notes at B+
GOL LINHAS: Aeropar Concludes Transfer of 107,590,772 Shares
JBS SA: S&P Affirms B+ Long-Term Corporate Credit Rating
NOSSA CAIXA: Expands Mortgage Loan Access to Low-Income Clients
SOCIEDADE ANONIMA: Fitch Rates US$250MM Notes Offering at BB-
SOCIEDADE ANONIMA: S&P Rates US$250MM 10-Year Sr. Notes at B+
C A Y M A N I S L A N D S
AMMC CDO I: Shareholders Will Meet for Final Meeting on July 14
BLUE METAL: Final Shareholders Meeting Is Scheduled for July 14
CAFE II: Holding Final Shareholders Meeting on July 13
CANE FUND: Liquidator Presents Wind Up Accounts on July 13
HELLENIC CASINOS: Final Shareholders Meeting Is Set for July 14
HOURGLASS MASTER: Sets Final Shareholders Meeting for July 14
LIDO CDO: Schedules Last Shareholders Meeting on July 14
MW POST: Holds Last Shareholders Meeting on July 14
SHERPAS LIMITED: Holds Final Shareholders Meeting on July 14
TPG SEGREGATED: Final Shareholders Meeting Is Set for July 14
C O L O M B I A
* COLOMBIA: Bidder Offers to Build Modular Terminal at El Dorado
C U B A
* CUBA: Plans to Export Heavy Crude from Northwestern Coasts
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Expects Tourist Arrivals Despite Bad Image
* DOMINICAN REPUBLIC: Launching Program Against Increasing Debts
E C U A D O R
PETROECUADOR: May Refine Oil from Oxy Fields in Venezuela
E L S A L V A D O R
MILLICOM INTERNATIONAL: China Mobile Purchase Deal Delayed
H A I T I
* HAITI: World Bank Grants US$2MM to Boost Resource Management
J A M A I C A
MIRANT CORP: Equity Committee Counsel Wants US$3.1MM Bonus Fee
MIRANT CORP: Miller Buckfire Asks for US$1.5M Supplemental Fee
* JAMAICA: Posts Rise in Demand for Scrap Metal Abroad
M E X I C O
BALLY TOTAL: Asks Lenders to Extend Deadline for Filing Reports
GENERAL MOTORS: Fitch Rates New US$4.48 Bil. Senior Loan at BB
GENERAL MOTORS: Moody's Puts B2 Rating on US$4.5-B Secured Loan
GENERAL MOTORS: S&P Puts B+ Rating on Proposed US$4.5-Bil. Loan
MERIDIAN AUTOMOTIVE: Credit Suisse Wants Summary Judgment
P A N A M A
* PANAMA: Trade with Venezuela Placed at US$1 Bil. by Year-End
P E R U
INTERBANK: Posts PEN27 Mil. First Quarter Profits
* PERU: Banking Sector Posts PEN366 Mil. First Quarter Earnings
P U E R T O R I C O
CAJUN FUNDING: Moody's Holds B3 Rating on US$155-Million Notes
GLOBAL HOME: Panel Taps Lowenstein Sandler as Bankruptcy Counsel
KMART CORP: Max Rudmann Wants Court to Enforce Settlement Pacts
OCA INC: Equity Panel Wants Adams & Reese as Local Counsel
OCA INC: General Claims Bar Date of the June Debtors Is June 28
T R I N I D A D & T O B A G O
DIGICEL LTD: Inks Partnership With Konka to Sell GSM Handsets
U R U G U A Y
ADMINISTRACION NACIONAL: Will Probe Deepwater Regions for Oil
BANCO HIPOTECARIO DEL URUGUAY: Posts UYU1.17 Bil. Jan-May Profit
PETROLEO BRASILEIRO: In Talks with Uruguay Firm to Explore Oil
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Begins Pipeline Works Joining Colombia
PETROLEOS DE VENEZUELA: Exxon Returns 500,000 Barrels of Oil
PETROLEOS DE VENEZUELA: Will Refine Oil from Former Oxy Fields
* VENEZUELA: President Orders Introduction of New Currency
* VENEZUELA: Trade with Panama Placed at US$1 Bil. by Year-End
- - - - -
=================
A R G E N T I N A
=================
AEROPUERTOS ARGENTINA: Pays Gov't US$32.5 Million & 30% Stake
-------------------------------------------------------------
Aeropuertos Argentina 2000 -- AA2000 -- agreed to pay the
Argentine government 100 million pesos (US$32.5 million) and a
30% stake in the company as part of a renegotiated contract, La
Nacion reports.
The agreement between the airport operator and the government
includes the suspension from both parts of the claims presented
and a total new financial equation for the concession. The
company would have a director as well as members of the state.
It will also open 20% of its capital in the Buenos Aires stock
market.
La Nacion adds that negotiations had been tough, especially
since both the government and the company alleged that the other
had failed to live up to its part of the concession contract,
leading to unpaid royalties by the company and unpaid subsidies
by the government. Negotiations set the amount owed the
government by the company for unpaid royalties at 1.2 billion
pesos while the amount owed by the government was set at 350
million pesos.
The resulting 850 million pesos owed the government by AA2000
will be paid through the issue of debt and stock that will
enable the government to gain a seat on the board.
Aeropuertos Argentina 2000 operates Argentina's 33 airports.
Businessman Eduardo Eurnekian, who was given a 30-year
concession to operate airports beginning January 1998, runs
AA2000. The company reported net losses for 2003 and 2004 due
to increased financial costs brought by the devaluation of the
Argentine peso.
AEROPUERTOS ARGENTINA: Argentine Government Taking Back Airports
----------------------------------------------------------------
The Argentine government has given a first long stride to
recover control over the country's 33 main airports which for
the last eight years have been under the private administration
of Aeropuertos Argentina 2000 -- AA2000.
Under a renegotiated agreement, up to 30% of the company is
taken over by the government, however the terms must still be
approved by Argentina's Congress.
The new deal, which respects the original term of the contract
-- 2028 -- will lead to changes in the composition of AA2000's
board since the Argentine government will be represented by a
director and a syndicate. At the same time, the company will
float 20% of its share capital on the Buenos Aires Stock
Exchange.
La Nacion said that negotiations had been tough, especially
since both the government and the company alleged that the other
had failed to live up to its part of the concession contract,
leading to unpaid royalties by the company and unpaid subsidies
by the government.
Negotiations set the amount owed the government by the company
for unpaid royalties at 1.2 billion pesos while the amount owed
by the government was set at 350 million pesos.
The resulting 850 million pesos owed the government by AA2000
will be paid through the issue of debt and stock that will
enable the government to gain a seat on the board.
But, according to the Argentine press, the deal disappointed
international carriers that have been demanding a 30% reduction
in current landing fees and were expecting a clause on the issue
to be included in the new package.
"We still haven't had access to the agreement. But we are hoping
a rebate has been included. You can't leave airlines and
passengers out of a deal of such importance," said Patricio
Sepulveda, an International Air Transport Association
representative who visited Buenos Aires but was unable to
establish any contact with Argentine authorities involved in the
discussion and drafting of the new contract.
Apparently the new licence to be paid by AA2000 to the Argentine
government ceases to be a fixed lump of money and becomes 15% of
the company's revenues.
An estimated 330 million US dollars will be invested in
upgrading some of the airports.
In a brief release, AA2000 stated that the deal "renews the
eight year old commitment," and points out to the refurbishment
of several airports, Ezeiza, Aeroparque, Rio Gallegos, Cordoba,
Mar del Plata, Mendoza, Iguazu and Bariloche, which proves that
"the investment program was honoured in spite of the
difficulties."
AA2000 and Mr. Eunerkian among other things also helped finance
the Argentine Memorial in the Falkland Islands which has been
completed but is waiting to be officially inaugurated.
Aeropuertos Argentina 2000 operates Argentina's 33 airports.
Businessman Eduardo Eurnekian, who was given a 30-year
concession to operate airports beginning January 1998, runs
AA2000. The company reported net losses for 2003 and 2004 due
to increased financial costs brought by the devaluation of the
Argentine peso.
BASICOS SA: Concludes Reorganization Proceeding
-----------------------------------------------
The reorganization of Basicos S.A. has ended. Data revealed by
Infobae on its Web site indicated that the process was concluded
after a Buenos Aires court approved the debt agreement signed
between the company and its creditors.
The debtor can be reached at:
Basicos S.A.
Dorrego 864
Buenos Aires, Argentina
CHAMBERS SA: Deadline for Verification of Claims Is on Aug. 29
--------------------------------------------------------------
The deadline for the verification of creditors' proofs of claim
against bankrupt company Chambers S.A. will end on
Aug. 29, 2006. Maria Cristina Rodriguez, the court-appointed
trustee for the case, will validate the claims.
The verified claims will be presented in court as individual
reports on Oct. 8, 2006. A general report that contains an
audit of Chambers' accounting and banking records will follow on
Nov. 21, 2006.
The trustee can be reached at:
Maria Cristina Rodriguez
Avda Corrientes 3169
Buenos Aires, Argentina
CLINICA MODELO: Trustee Verifies Creditors' Claims Until Aug. 31
----------------------------------------------------------------
Court-appointed trustee Estudio Abigador, Collia & Vighenzoni
will validate critors' proofs of claim against bankrupt company
Clinica Modelo S.A. until Aug. 31, 2006, Infobae reports.
The trustee will present individual reports based on the
verified claims on Oct. 13, 2006, and a general report that
contains an audit of Clinica Modelo's accounting and banking
records on Nov. 24, 2006.
The trustee can be reached at:
Estudio Abigador, Collia & Vighenzoni
Uruguay 856
Buenos Aires, Argentina
COLORIN INDUSTRIA: Evaluadora Puts D Rating on US$47-Mil. Debt
--------------------------------------------------------------
Colorin Industria de Materiales Sintet's US$47,000,000 debt is
rated D by Evaluadora Latinoamericana.
GLIN SRL: Claims Verification Deadline Is on Aug. 14
----------------------------------------------------
Martha Magdalena Comba, the court-appointed trustee for the
bankruptcy proceeding of Glin S.R.L. will verify creditors'
proofs of claim until Aug. 14, 2006. Creditors who fail to
submit the required documents won't receive any post-liquidation
distributions.
Court No. 7 in Buenos Aires ruled Glin S.R.L. bankrupt at the
behest of Packangraf S.A., which the company owes US$920.24.
Clerk No. 13 assists the court in the case.
The debtor can be reached at:
Glin S.R.L.
Montevideo 499
Buenos Aires, Argentina
The trustee can be reached at:
Martha Magdalena Comba
Hipolito Yrigoyen 1349
Buenos Aires, Argentina
PEDRO STORN: Verification of Proofs of Claim Ends on Aug. 24
------------------------------------------------------------
The verification of creditors' proofs of claim for the Pedro
Storn & Cia. Ltda. insolvency case will end on Aug. 24, 2006,
states Infobae. Miguel Rudnitzky, the court-appointed trustee
will validate the claims.
On May 29, 2007, Pedro Storn's creditors will cast their votes
on a settlement that the company will lay on the table.
Court No. 21 in Buenos Aires approved Pedro Storn's petition to
reorganize its business after defaulting on its debt payments.
Clerk No. 42 assists the court in the proceeding.
The debtor can be reached at:
Pedro Storn & Cia Ltda.
Andonaequi 1706
Planta en Salta 238, Lanus
Buenos Aires, Argentina
The trustee can be reached at:
Miguel Rudnitzky
Uruguay 328
Buenos Aires, Argentina
PRODILAND SA: Sets Aug. 17 Deadline for Claims Verification
-----------------------------------------------------------
Ignacio Kaczer, the court-appointed trustee for the bankruptcy
proceeding of Prodiland S.A., will verify creditors' proofs of
claim until Aug. 17, 2006, La Nacion reports.
Creditors who fail to submit the required documents won't
receive any post-liquidation distributions from Prodiland.
Court No. 11 in Buenos Aires declared the company bankrupt at
the behest of Diego Gibert, whom the company owes US$47, 148.70.
Clerk No. 21 assists the court on the case.
The debtor can be reached at:
Prodiland S.A.
E. Mitre 1873
Buenos Aires, Argentina
The trustee can be reached at:
Ignacio Kaczer
Callao 441
Buenos Aires, Argentina
TRAMONT SA: Trustee Will Verify Proofs of Claim Until August 29
---------------------------------------------------------------
Mirta Calfun de Bendersky, the court-appointed trustee for the
bankruptcy case of Tramont S.A., will verify creditors' proofs
of claim until Aug. 29, 2006.
La Nacion relates that Court No. 24 in Buenos Aires declared
Tramont bankrupt at the request of Veronica Czurejczuk, whom it
owes US$1,046.50.
Clerk No. 48 assists the court in this case.
The debtor can be reached at:
Tramont S.A.
Paraguay 1345
Buenos Aires, Argentina
The trustee can be reached at:
Mirta Calfun de Bendersky
Humahuaca 4165
Buenos Aires, Argentina
TROMEN SA: Trustee Has Until Aug. 16 to Verify Proofs of Claim
--------------------------------------------------------------
Adalberto Abel Corbelleri, the court-appointed trustee for the
bankruptcy proceeding of Tromen S.A., has until Aug. 16, 2006,
to verify creditors' proofs of claim. Creditors who fail to
submit the required documents won't receive any post-liquidation
distributions.
Mr. Corbelleri will present the verified claims in court as
individual reports on Sept. 28, 2006. A general report that
contains a summary of the liquidation proceeding will follow on
Nov. 10, 2006.
The debtor can be reached at:
Tromen S.A.
San Martin 66
Buenos Aires, Argentina
The trustee can be reached at:
Adalberto Abel Corbelleri
Carabobo 237
Buenos Aires, Argentina
VARSA SA: Last Day for Verification of Claims Is on August 16
-------------------------------------------------------------
Alicia Irene Kurlat, the court-appointed trustee for the
bankruptcy case of Varsa S.A., will verify creditors' proofs of
claim until Aug. 16, 2006, Infobae reports. Creditors' who fail
to present the required documents won't receive any post-
liquidation distributions.
Argentine bankruptcy law requires Ms. Kurlat to present in court
the verified claims as individual reports and a general report
that contains an audit of Varsa's accounting and banking
records. The dates of submission of these reports are yet to be
disclosed.
The trustee can be reached at:
Alicia Irene Kurlat
Carlos Pellegrini 1079
Buenos Aires, Argentina
WORLD SAT: Sets Aug. 11 as Last Day to Verify Proofs of Claim
-------------------------------------------------------------
The verification of proofs of claim against bankrupt company
World Sat S.A. will end on Aug. 11, 2006. Creditors who fail to
submit the required documents won't receive any post-liquidation
distributions.
Court No. 9 in Buenos Aires converted World Sat's reorganization
into a bankruptcy proceeding after its creditors rejected its
settlement plan on Mar. 17, 2006. Consequently, all of the
debtor's assets will be liquidated and proceeds distributed to
creditors.
Argentine bankruptcy law requires Gustavo Ariel Fiszman, the
court-appointed trustee, to provide Court No. 19 with individual
reports on the forwarded claims and a general report containing
an audit of the World Sat's accounting and business records.
The individual reports will be submitted on Sept. 25, 2006,
followed by the general report, which is due on Nov. 7, 2006.
Clerk No. 37 assists the court in the proceeding.
The debtor can be reached at:
World Sat S.A.
Moreno 574/84
Buenos Aires, Argentina
The trustee can be reached at:
Gustavo Ariel Fiszman
Emilio Mitre 435
Buenos Aires, Argentina
* ARGENTINA: German Court Rules Country Must Pay Investors
----------------------------------------------------------
Argentina will have to pay in full two private investors in
Germany after the country's default during the financial crisis
in 2003.
The court in Germany said that the recovery of the economy in
Argentina means that the country can't be considered insolvent
anymore.
The court's decision opens doors for creditors who did not
accept the restructuring of debt proposed by Argentina in 2004.
Argentina's proposal offered creditors 75 cents on the dollar.
German investors were among the largest groups to be affected by
Argentina's default.
Argentina is represented by:
Roger W. Thomas
Cleary Gottlieb Steen & Hamilton LLP
One Liberty Plaza
New York, NY 10006
Tel: 1 212 225 2000
Fax: 1 212 225 3999
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling RD Dec. 14, 2005
Long Term IDR B Dec. 14, 2005
Short Term IDR B- Jun. 3, 2005
Local Currency
Long Term Issuer
Default Rating B Jun. 3, 2005
* ARGENTINA: Will Ink New Natural Gas Contract with Bolivia
-----------------------------------------------------------
The Argentine government will enter into a new agreement with
Bolivia by June 30 to stop natural gas from being resold to
Chile, reports say, citing a leader of Bolivia's state energy
firm.
According to Xinhuanet, Chile and Bolivia halted diplomatic
relations in 1978 over a dispute concerning Bolivia's access to
the Pacific Ocean.
Jorge Alvarado, the head of state-run Yaciementos Petroliferos
Fiscales Bolivianos aka YPFB, told a Bolivian television station
that the current contract has measures meant to block the sale
of Argentine gas sales to Chile, in line with the policies made
by former Bolivian President Carlos Mesa.
The contract will expire at the end of 2006, Mr. Alvarado told
the station.
Bolivia has proposed a new contract increasing the price of the
gas shipped to Argentina to US$5.5 per million British Thermal
Units from US$3.35. The contract will also tighten the measures
against Chile, Xinhuanet reports, citing Mr. Alvarado.
Alejandro Foxley, the foreign minister of Chile, had recently
asked Bolivian authorities in a public statement not to hinder
the improvement of Chile-Bolivia relations with hostile
statements.
Argentina's President Nestor Kirchner had called on Chile in May
this year to be part of the Argentina-Bolivia price
negotiations, infuriating Bolivia, Xinhua states.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling RD Dec. 14, 2005
Long Term IDR B Dec. 14, 2005
Short Term IDR B- Jun. 3, 2005
Local Currency
Long Term Issuer
Default Rating B Jun. 3, 2005
=============
B A H A M A S
=============
WINN-DIXIE: Can Assume Modified JEA Electrical Service Accords
--------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates obtained
permission from the U.S. Bankruptcy Court for the Middle
District of Florida to assume certain Prepetition Agreements
with Jacksonville Electric Authority, as modified.
The Court directs the Debtors to pay US$583,898 to the
Jacksonville Electric Authority.
The assumption of the contracts is effective on the payment of
the Cure Amount.
Background
The Troubled Company Reporter said on May 11, 2006,
Jacksonville Electric Authority provides Winn-Dixie Stores,
Inc., and its debtor-affiliates with electrical and water
services for their operations in Northeast Florida.
Because of the Debtors' use of a large volume of electrical
services, JEA provides them with price discounts on these
services under a General Service Large Demand Rider Electric
Service Agreement and a Multiple Accounts Load Improvement Rider
Service Agreement, both dated as of July 28, 1998.
The Debtors realize monthly savings of US$50,000 to US$60,000
under the Prepetition Agreements, D.J. Baker, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, in New York, tells the Court.
The Prepetition Agreements include services for a store that the
Debtors have closed and contain errors on the addresses of a
number of store locations. To correct the errors and delete the
closed store, JEA has agreed to modify each of the Prepetition
Agreements.
Mr. Baker assures the Court that the Debtors will pay an
existing default of US$583,898, under the Prepetition
Agreements.
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: Five Creditors Want Trade Panel's Request Denied
------------------------------------------------------------
In separate pleadings, five creditors ask the U.S. Bankruptcy
Court for the Middle District of Florida to deny an Ad Hoc Trade
Committee's request.
The five creditors are:
1. Gardens Park Plaza, Ltd.;
2. Windsor Foods;
3. Lassiter Properties, Inc.;
4. Domino Foods, Inc., as agent for American Sugar Refining,
Inc.; and
5. Florida Crystals Food Corporation
Gardens Park Plaza and Windsor Foods assert that unless and
until they have the ability to review the papers filed under
seal, they cannot fully evaluate whether or not to object to or
support the Trade Committee's request.
Domino and Florida Crystals also seek an opportunity to
adequately evaluate the basis of the Trade Committee's request.
Windsor Foods further asks the Court to extend the deadline to
respond to the Trade Committee's request after the information
filed under seal has been disclosed.
Jimmy D. Parrish, Esq., at Gronek & Latham, LLP, in Orlando,
Florida, contends that Lassiter and the other creditors are
entitled to:
(a) adequate notice of a confidentiality agreement that they
are being required to execute as a condition to their
access to important Court records;
(b) an assurance that, upon executing the Confidentiality
Agreement, they will obtain access to the documents;
(c) information of the materials the Trade Committee seeks
to conceal.
Lassiter asks the Court to require the Trade Committee to
establish grounds for sealing the materials and imposing on the
creditors the obligations consequent to the Confidentiality
Agreement, and show that there exist no less drastic means of
protecting the materials.
Background
The Troubled Company Reporter said on May 19, 2006, the Ad Hoc
Trade Committee asks the U.S. Bankruptcy Court for the Middle
District of Florida to substantively consolidate Winn-Dixie
Stores, Inc., and its debtor-affiliates' estates pursuant to
Section 105(a) of the Bankruptcy Code.
The Trade Committee was reformed and reactivated in March 2006
to investigate substantive consolidation issues from the
perspective of the Debtors' trade creditors.
The current members of the Trade Committee are:
-- ASM Capital,
-- Amroc Investments, LLC,
-- Avenue Capital Group,
-- LCH Opportunities, LLC,
-- DellaCamera Capital Management, LLC,
-- Contrarian Capital Management, LLC,
-- Longacre Fund Management, LLC,
-- ConAgra Foods, Inc.,
-- The Procter & Gamble Distributing Co.,
-- S.C. Johnson & Son, Inc.,
-- Conopco, Inc.,
-- Madison Capital Management,
-- VR Capital Group, Ltd., and
-- General Mills, Inc.
The Trade Committee members hold approximately US$70,000,000 in
unsecured claims, relating to goods, sold and delivered to the
Debtors, services rendered to the Debtors, and rejection of
leases.
The Trade Committee informally asked the Debtors to provide
documentation relating to their business, which are relevant to
a substantive consolidation analysis, Thomas R. Califano, Esq.,
at DLA Piper Rudnick Gray Cary US LLP, in New York, tells the
Court. On March 30, 2006, the Debtors and the Trade Committee
entered into a confidentiality agreement to facilitate the Trade
Committee's investigation.
According to Mr. Califano, the Debtors would not have produced
documents to the Trade Committee absent the Trade Committee
entering into the Confidentiality Agreement.
Mr. Califano asserts that substantive consolidation is
appropriate because:
(a) there is a substantial identity between the Debtors; and
(b) consolidation is necessary to avoid some harm or realize
some benefit.
The Trade Committee seeks the Court's permission file under seal
its brief supporting its substantive consolidation motion and
the affidavit of M. Freddie Reiss.
Mr. Califano explains that the Brief and the Reiss Affidavit are
in part based on non-public, confidential and proprietary
information about the Debtors that has been voluntarily
disclosed to the Trade Committee by the Debtors, but are subject
to the Confidentiality Agreement.
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
=============
GLOBAL CROSSING: Implements Secure Remote Access to E-Mail
----------------------------------------------------------
Global Crossing has completed the implementation of a Secure
Remote Access Service or SRAS for the Royal Air Force managed
messaging service, RAFMail. This latest enhancement provides
registered users with secure access to e-mail and the RAF
network when they are away from the office or deployed to remote
locations. RAFMail is used by 63,000 air force and Ministry of
Defense personnel at 66 stations in the UK and around the world,
including Cyprus, the Ascension Islands and the Falklands.
"The new Secure Remote Access Service replaces an outdated modem
service and provides a more secure access method to restricted
data, while offering a more reliable and efficient access mode
for registered users," said Squadron Leader Steve Palfrey.
"This new access solution enables the RAF and an increasing
number of army, navy and civilian personnel to safely and
securely remain in touch wherever they may be."
This secure remote access solution applies to restricted traffic
and allows users to access their data remotely from home, while
on deployment or from a hotel room. Once issued with a laptop
or workstation built to the RAF's security standard, personnel
can use Global Crossing's fully managed SRAS to access their
mailbox, files and even the UK Defense Intranet. By deploying a
bundle of connectivity options including the defense wide area
network, leased lines, satellite links, PSTN and ISDN access,
Global Crossing's service enables the entire worldwide MoD
community to stay in touch. The RAF has international theatres
of operation in Cyprus, the Ascension Islands and the Falklands.
Phil Metcalf, managing director of Global Crossing UK,
commented, "Our long association with the RAF has been marked by
our commitment to continuously refresh and improve the level of
service we provide. I'm delighted we've implemented these
latest upgrades, collaborating with RAF personnel to provide a
secure, efficient and future-proof messaging service for them
and other branches of the armed forces."
Users connect remotely to RAFMail via a telephone or ISDN
connection. The user is issued a responder token, which uses
"challenge and response" methodology to generate one-off
passwords for user authentication. The security technology was
designed in cooperation with the UK government's Communication
Electronics Security Group and provides a highly-secure
authentication process for remote users who may be accessing
restricted data.
This latest upgrade to RAFMail is part of a 10-year contract
awarded to Global Crossing in December 1998 to manage and
upgrade the RAF's mail and messaging service. At the time, the
agreement was one of the first Public Finance Initiative
projects to be let by the MoD.
The service is constantly being reviewed and was upgraded to a
Microsoft Exchange 5.5 infrastructure from the legacy X.400
backbone infrastructure in 2004. The high-capacity mail servers
provide load balancing and virus protection to the RAFMail
messaging infrastructure, and provide average message transit
times of seven seconds, which also includes the use of military
satellite to transmit to isolated stations such as the Falklands
in the southern Atlantic.
Another upgrade under way is the migration to a Windows Server
2003 Active Directory environment. Global Crossing has
introduced systems to automate the management of the RAF's
global directory. Management and updating of the global address
list previously was the responsibility of IT staff at each
station. The process now has been automated to occur overnight
every 24 hours. Keeping the directory database more accurate
has led to a substantial reduction in non-delivery reports,
further improving messaging transit times.
RAFMail is supported from Global Crossing's network management
center at Crewe in northwest England and includes a help desk
function. In the spirit of a Private Finance Initiative project
and to ensure the RAF has direct involvement in the ongoing
development and management of the service, three RAF employees
are based at Global Crossing's network operations center. In
the event of a civil emergency, RAF personnel could take over
the operation of the messaging network.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, Chile, Mexico, Panama, Peru and Venezuela.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. The company filed for chapter 11 protection on
Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the
Debtors filed for protection from their creditors, they listed
US$25,511,000,000 in total assets and US$15,467,000,000 in total
debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003.
As of Dec. 31, 2005, Global Crossing's balance sheet reflected a
US$173 million equity deficit compared to a US$51 million of
positive equity at Dec. 31, 2004.
INTELSAT (BERMUDA): Prices Up to US$2.34 Billion Senior Notes
-------------------------------------------------------------
Intelsat, Ltd., disclosed that its wholly-owned subsidiary,
Intelsat (Bermuda), Ltd., priced approximately US$2.34 billion
aggregate principal amount of senior notes due 2013 and 2016 in
connection with its contemplated acquisition of PanAmSat Holding
Corporation.
The senior notes consist of US$750 million 9-1/4% Senior Notes
due 2016 that will be guaranteed by certain subsidiaries of
Intelsat Bermuda, US$260 million of Floating Rate Notes due 2013
and US$1,330 million of 11-1/4% Senior Notes due 2016. The
Floating Rate notes will bear interest at LIBOR plus 600 basis
points. In addition, Intelsat announced today that PanAmSat
Corporation has priced approximately US$575 million aggregate
principal amount of 9% Senior Notes due 2016.
The net proceeds from these offerings will be used, together
with cash on hand and amounts drawn under a new US$600 million
senior unsecured credit facility at Intelsat Bermuda, to
consummate the Acquisition and to fund the purchase of certain
outstanding notes of PanAmSat. The notes offerings and the
Acquisition are expected to close on July 3, 2006, subject to
the satisfaction or waiver of closing conditions.
The notes will be offered to qualified institutional buyers
under Rule 144A and to persons outside the United States under
Regulation S. The notes will not be registered under the
Securities Act of 1933, as amended, and, unless so registered,
may not be offered or sold in the United States except pursuant
to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and applicable
state securities laws.
Intelsat, Ltd. - http://www.intelsat.com/-- offers telephony,
corporate network, video and Internet solutions around the globe
via capacity on 25 geosynchronous satellites in prime orbital
locations. Customers in approximately 200 countries rely on
Intelsat's global satellite, teleport and fiber network for
high-quality connections, global reach and reliability.
On June 12, 2006, Moody's Investor Service affirms Intelsat
(Bermuda) Ltd.'s ratings:
-- New Guaranteed Sr. Notes: Assigned B2,
-- New Sr. Notes: Assigned Caa1, and
-- Sr. Discount Notes, due 2015: Downgraded to Caa1 from
B3 (these notes will be moved to Intelsat Intermediate
Holding Company Ltd. Upon closing of the merger).
LORAL SPACE: Elects John P. Steinbit as Member of the Board
-----------------------------------------------------------
Loral Space & Communications Inc. disclosed the election of John
P. Stenbit to the company's board of directors.
Mr. Stenbit has served in a wide array of public and private
sector roles in telecommunications and information technology
spanning more than thirty years. From 2001 until his retirement
in 2004, Mr. Stenbit was Assistant Secretary of Defense for
Command, Control, Communications, and Intelligence (C3I), and
served as Assistant Secretary of Defense of the C3I successor
organization, Networks and Information Integration / Department
of Defense Chief Information Officer.
"We're honored to welcome John to Loral's board of directors,"
said Michael B. Targoff, chief executive officer and vice
chairman of the board of directors, Loral Space &
Communications. "His impeccable background in engineering and
strategic planning will be invaluable to Loral as we look to
continue our success in the high-growth satellite communications
industry."
Previously, Mr. Stenbit was an executive vice president of TRW,
where he was responsible for the planning and analysis of
advanced satellite surveillance systems. Prior to joining TRW,
he worked on command and control systems for missiles and
satellites, and satellite data compression and pattern
recognition for the Aerospace Corporation. He also previously
served as principal deputy director of telecommunications and
command and control systems, and as a staff specialist for
worldwide command and control systems in the Office of the
Secretary of Defense. He currently serves on the boards of
Cogent, Inc., SI International, SM&A and Viasat.
Mr. Stenbit holds a bachelors and masters degree in electrical
engineering from the California Institute of Technology. He has
chaired the Science and Technology Advisory Panel to the
Director of Central Intelligence and served as a member of the
Science Advisory Group to the directors of Naval Intelligence
and the Defense Communications Agency. He also chaired the
Research, Engineering and Development Advisory Committee for the
Administrator of the Federal Aviation Administration. He has
served on the Navy Studies Board and the National Research
Council Manufacturing Board. Mr. Stenbit serves on the Defense
Science Board, the National Security Agency Advisory Board, the
National Reconnaissance Office Technical Advisory Group and the
U.S. Strategic Command Science Advisory Group. He is a
Fulbright Fellow and recipient of the Secretary of Defense Medal
for Outstanding Public Service. In 1999, he was inducted into
the National Academy of Engineering.
Mr. Stenbit also will serve on Loral's audit committee. With
the appointment of Mr. Stenbit to the audit committee, Loral is
now in compliance again with NASDAQ Marketplace Rule 4350, which
requires that a listed company's audit committee be comprised of
at least three independent directors.
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.
LORAL SPACE: Skynet Pays Interest on 14% Notes & Series A Stock
---------------------------------------------------------------
Loral Space & Communications Inc. disclosed that Loral Skynet
Corporation will pay the full amount of the current interest
payment due on its 14% Notes, US$11.5 million or US$91.00 per
Note, in cash. Loral Skynet will also pay the current dividend
on its 12% Series A Non-Convertible Preferred Stock, US$15.6
million or US$15.60 per share, in accordance with the formula
governing the security, determined to be 10.8% in cash and 89.2%
in PIK shares. Any fractional PIK shares will be rounded down,
with the remainder paid in cash. After issuance of the PIK
shares, there will be US$213.9 million of Loral Skynet Preferred
Stock outstanding.
The payment period for the Loral Skynet Notes and the Loral
Skynet Preferred Stock covers from November 21, 2005, the
issuance date of both securities, through July 15, 2006. Both
are payable on July 14, 2006, to holders of record as of the
close of business on July 3, 2006.
The interest determination was made in accordance with the terms
of the Indenture dated as of November 21, 2005 governing the
Loral Skynet Notes, and the dividend determination was made in
accordance with the terms of the Preferred Stock contained in
the Restated Certificate of Incorporation of Loral Skynet
Corporation and Exhibit A thereto.
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.
=============
B O L I V I A
=============
* BOLIVIA: Ready to Negotiate Free Trade Agreement with US
----------------------------------------------------------
"We're ready to negotiate a trade agreement with the United
States that benefits the productive sector," Celinda Sosa, the
minister of production and small business in Bolivia, told
reporters.
Minister Sosa told AP that a government commission is working on
a proposal jointly with small, medium and large producers.
As reported in the Troubled Company Reporter on May 25, 2006,
Bolivia did not start any talks to replace the US Andean Trade
Promotion and Drug Eradication Act with new free trade
agreements due to the opposition occurring in the country and
the fragility of its previous government. Carlos Villegas, the
minister in development planning, had said that the Bolivian
government, held informal talks with some officials in the U.S.,
who were willing to listen to Bolivia's concerns.
President Morales had said during his presidential campaign in
2005 that he would consider trade pacts with any country, the US
included. But, that changed after Mr. Morales was elected into
office. He claimed the US tried to assassinate him, thus free
trade talks with Washington were not considered.
President Morales instead entered into an alternative trade deal
based on socialist principles with Venezuela and Cuba in April,
a move harshly criticized by business groups.
However, President Morales told AP on Thursday that he would let
the constituent assembly -- who will rewrite Bolivia's
Constitution beginning Aug. 6 -- decide on the issue. The
president said that if he negotiates a free trade agreement
before, which the constituent assembly opposes, any negotiating
would have been useless.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
* BOLIVIA: Vice President Heads to US for Trade Terms Extension
---------------------------------------------------------------
Bolivia's Vice President Alvaro Garcia Linera will be visiting
Washington in July to ask the U.S. Congress for an extension of
the Andean Trade Promotion and Drug Eradication Act or ATPDEA,
the Associated Press reports.
As reported in the Troubled Company Reporter on May 25, 2006, a
commission of public and private sector officials in Bolivia
planned to push for the extension of the act.
According to AP, the ATPDEA has been allowing Bolivia to ship
its products to the U.S. with zero tariffs since 2002. Agencia
Boliviana de Informacion, Bolivia's government-run news service,
says the act was passed to discourage the production of crops
used in making illegal drugs in Bolivia, Colombia, Ecuador and
Peru, and offers preferential tariff treatment on other
products.
The act will expire at the end of 2006, AP relates. Failure to
extend the ATPDEA would put thousands of jobs at risk, several
of them in El Alto, a poor city in Bolivia where businesses
depend on exporting jewelry, furniture and clothes to the U.S.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
* BOLIVIA: Will Ink New Natural Gas Contract with Argentina
-----------------------------------------------------------
The Bolivian government will enter into a new agreement with
Argentina by June 30 to stop natural gas from being resold to
Chile, reports say, citing a leader of Bolivia's state energy
firm.
According to Xinhuanet, Chile and Bolivia halted diplomatic
relations in 1978 over a dispute concering Bolivia's access to
the Pacific Ocean.
Jorge Alvarado, the head of state-run Yaciementos Petroliferos
Fiscales Bolivianos aka YPFB told a Bolivian television station
that the current contract has measures meant to block the sale
of Argentine gas sales to Chile, in line with the policies made
by former Bolivian President Carlos Mesa.
The contract will expire at the end of 2006, Mr. Alvarado told
the station.
Bolivia has proposed in a new contract increasing the price of
the gas shipped to Argentina to US$5.5 per million British
Thermal Units from US$3.35. The contract will also tighten the
measures against Chile, Xinhuanet reports, citing Mr. Alvarado.
Alejandro Foxley, the foreign minister of Chile, had recently
asked Bolivian authorities in a public statement not to hinder
the improvement of Chile-Bolivia relations with hostile
statements.
Argentina's President Nestor Kirchner had called on Chile in May
this year to be part of the Argentina-Bolivia price
negotiations, infuriating Bolivia, Xinhua states.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
CAIXA ECONOMICA: Expands Mortgage Loan to Low-Income Clients
------------------------------------------------------------
Caixa Economica Federal, along with Nossa Caixa, has expanded
mortgage loan to low-income clients, Business News Americas
reports.
BNamericas states that the two banks are the only ones that
offer mortgage loans to lower income segments.
Jose Augusto Viana Neto -- the president of CRECI-SP, a Sao
Paulo council of real estate agents -- told BNamericas that
Caixa Economica lends to clients with monthly salaries of at
least BRL300, while Nossa Caixa requires a minimum monthly
salary of BRL400.
According to BNamericas, Caixa Economica and Nossa Caixa were
praised by CRECI-SP for their move. The council said in a study
that the two banks have taken the lead in going "downmarket"
with their mortgage loan offers as well as improving loan terms
and the range of mortgage products on offer.
"It's a gratifying change for us after years of fighting alone
for people to have easier access to home loans," BNamericas
relates, citing Mr. Neto.
* * *
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.
COMPANHIA VALE: Chinese Steelmakers Agree to 19% Iron Ore Hike
--------------------------------------------------------------
Chinese steelmakers finally admitted defeat by agreeing to a 19%
price hike on iron ores.
Being the largest global importers of iron ore, Chinese
steelmakers had hoped to influence prices after last year's
71.5% increase.
Companhia Vale do Rio Doce, one of the three largest producers
of iron ore, first reached a rate hike agreement with German
firm ThyssenKrupp AG. As customary in previous years, the deal
would have been made the benchmark for this year's price
increase.
The Wall Street Journal reports that China vowed to learn from
its failure.
Simon Toyne, an analyst at Numis Securities in London, England,
believed that China might "make it a bit tougher for the mining
guys" in the future as it consolidate its steel industry and
become more organized in negotiations, the Journal relates.
Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.
* * *
On Jan. 5, 2006, Fitch Ratings assigned a long-term foreign
currency rating of 'BB' to Vale Overseas Limited's proposed
US$300 million issuance due 2016. Vale Overseas is a wholly
owned subsidiary of Companhia Vale do Rio Doce, a large
diversified mining company located in Brazil. The notes are
unsecured obligations of Vale Overseas and are unconditionally
guaranteed by CVRD. The obligation to guarantee the notes
rank pari passu with all of CVRD's other unsecured and
unsubordinated debt obligations. Fitch expects the proceeds of
this issuance to be used for general corporate purposes and
primarily to pay down US$300 million of Vale Overseas' 9.0%
guaranteed notes due 2013.
Fitch also maintained these ratings for CVRD and CVRD Finance
Ltd., a wholly owned subsidiary of CVRD:
-- CVRD foreign currency rating: 'BB', Outlook Positive;
-- CVRD local currency rating: 'BBB' Outlook Stable;
-- CVRD national scale rating: 'AAA(bra)', Outlook Stable;
-- CVRD Finance Ltd.: series 2000-1 and series 2000-3:
'BBB';
-- CVRD Finance Ltd., series 2000-2 and series 2003-1: 'AAA'.
ELETROPAULO METROPOLITANA: S&P Rates US$200MM Euro Bonds at B+
--------------------------------------------------------------
The rating assigned by Standard & Poor's to Brazilian electric
utility Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.
and its US$200 million senior unsecured and unsubordinated euro
bonds is 'B+'. The outlook is stable.
The rating reflects Eletropaulo's
-- significant short-term debt, including pension funds
obligation, together with a shortened debt amortization
profile;
-- still-leveraged capital structure with total debt to total
capitalization of 78% in December 2005); and
-- exposure to the Brazilian regulatory framework for the
electric sector.
On the other hand, Eletropaulo improved in cash flow protection
measures and demonstrated that it is back in the domestic and
international credit markets, in addition to presenting low
exposure to foreign-currency-denominated debt and having a
pretty favorable customer mix.
Eletropaulo's operating results continue to improve. In March
2006, Eletropaulo registered EBITDA of BRL510 million (ex-
provisions), an improvement of 70% over March 2005, basically as
a result of growth in captive market (4.3% in the period between
March 2006 and March 2005) and the revenues coming from the
wheeling fee charged to free clients (BRL99 million in March
2006 compared with BRL54 million in March 2005), as well as the
annual average tariff increase of 2.12% applied in July 2005.
These factors generated better profitability in March 2006
(EBITDA margin of 25.8%, as opposed to 15% in March 2005), which
also translated into an improvement in FFO to BRL281 million, up
32% from the BRL213 million achieved in March 2005. Even though
the cash generation picked up, FFO to interest coverage kept
stable in March 2006 at 3.1x (3.2x in March 2005), as the
company's current debt profile is mostly domestically funded.
However, although FFO to total debt also improved, hitting 22.7%
in March 2006 (from 15.5% in March 2005), Eletropaulo continues
to present a leveraged capital structure with ratios of total
debt to total capitalization of about 70%, although leverage
measured by EBITDA is now much more favorable at about 2.4x in
March 2006, considering BRL2.1 billion of accounted pension fund
liabilities and not considering the cash income from Reajuste
Tarifario Extraordinario in the EBITDA calculation, as opposed
to 4.6x in March 2005.
In 1998, Eletropaulo was granted a 30-year concession to
distribute energy in the Sao Paulo metropolitan area.
Eletropaulo supplies electricity to more than 15 million people
spread out among 5.2 million consumption units, with a
consumption of 31,634 gigawatt-hours in 2005. Together with AES
Tiete and AES Uruguaiana, Eletropaulo is part of the Brasiliana
group controlled by the nonoperating holding company Brasiliana.
Brasiliana shareholders are:
-- BNDES (foreign currency BB/Stable/--; local currency
BB+/Stable/--; 53.84% of total capital) and
-- The AES Corp. (B+/Positive/--; 46.4% of total capital).
U.S.-based AES manages the group.
Liquidity
Standard & Poor's Ratings Services deems that Eletropaulo's
liquidity and financial flexibility has been improving since the
company came out of a wide debt renegotiation last year. The
placement of a US$200 million international bond in June 2005;
BRL1.05 billion in two debentures in September and December
2005; and, more recently, a BRL300 million long-term domestic
debt instrument attest to the company's improved financial
flexibility. As of March 2006, the company reduced foreign
currency exposure to some 5% of the total debt, compared with
40% in 2003, and has already swapped 80% of the total for local
currency until their maturities. Standard & Poor's expects that
Eletropaulo will keep the level of foreign currency exposure
lower than 10%.
Eletropaulo reported total debt of about BRL5 billion as of
March 2006, including the BRL163 million of negative hedge
result and BRL2.1 billion of the pension fund liability
(Fundacao CESP). Short-term maturities are BRL1.3 billion,
including a pension fund short-term portion of BRL428 million
plus BRL163 million of a negative hedge position, and are
equivalent to 27% of total debt. Amortization requirements for
2006 should be resolved through Eletropaulo's projected internal
free cash generation of BrR700 million, including RTE
receivables, at fiscal year-end 2006, BRL60 million of cash
holdings as of March 2006, and new debt structures to improve
debt profile.
Free cash flow generation forecasts for 2007 and onward are
tighter because Brasiliana will start to amortize its debt with
BNDES, which will require Eletropaulo to increase the amount of
dividends upstream, together with AES Tiete and AES Uruguaiana.
As a result, Standard & Poor's views dividends sent to
Brasiliana as a mandatory requirement for Eletropaulo because
Brasiliana holds in its books an 11-year, US$510 million debt
with BNDES that starts to mature in 2007 and whose sole
repayment source is cash from its subsidiaries Eletropaulo AES
Tiete and AES Uruguaiana. However, Brasiliana recently
announced a major plan involving one of Eletropaulo's holding
companies, aiming to raise money to prepay those debentures held
by BNDES.
Outlook
The stable outlook on Eletropaulo's ratings reflects Standard &
Poor's expectation that the company will continue to reduce the
level of total short-term debt, including pension funds, and
present adequate performance that results in fairly favorable
credit measures for the rating category -- a continually
extending future amortization profile, EBITDA margin above 20%,
minimum FFO to interest coverage of 2x, and FFO to total debt
higher than 15%. A positive outlook might be considered if
Eletropaulo's financial performance stays highly secure despite
the significant future dividends upstream prospects. Conversely,
the ratings would come under downward pressure if the
contribution to upstream dividends to Brasiliana weakens
Eletropaulo's cash flow protection measures and overall
financial position, meaning high leverage and a worse debt
amortization profile. Downward pressure would also result if
the level of past-due accounts continues to increase or if the
company faces soaring deferred regulatory costs, which would
affect free cash flow and ultimately raise the total debt.
EMPRESA ENERGETICA: Fitch Rates US$250MM Notes Offering at BB-
--------------------------------------------------------------
Fitch has assigned a rating of 'BB-' to the proposed issuance of
up to US$250 million 10-year, bullet notes units offering of:
-- Empresa Energetica de Sergipe S.A. aka Energipe and
-- Sociedade Anonima de Eletrificacao da Paraiba aka Saelpa.
The issuance will be split between notes to Energipe, with two-
thirds part, and notes to Saelpa with the remaining one-third.
The notes units and underlying senior notes of the two entities
will be guaranteed by their holding company, Energisa S.A.
While the notes units' underlying securities are separate,
standalone indebtedness of each entity, the senior notes are
nondetachable and contain cross-default provisions. The
proceeds of the issuance will be used to refinance existing debt
representing approximately 72% of Energisa's consolidated third
party debt at the end of 2005.
Fitch's rating reflects the combined credit quality of the
issuers and their guarantor given the notes' cross-default
provision and nondetachable characteristics. The rating is
supported by improving credit-protection measures at Energipe
and Saelpa and, on a consolidated basis, at Companhia Forca e
Luz Cataguazes-Leopoldina or CFLCL, which should continue to
strengthen over the next year, supported by projected growth in
operating income and cash flow, as well as the reduction in
annual debt service following the proposed issuance. The
companies should also benefit from the improved outlook for the
Brazilian regulatory environment and sufficient tariff
adjustments. CFLCL and four of its subsidiaries operate in the
regulated distribution market with long-term contracts with
generators. While regulatory risk remains an ongoing credit
concern, the current electric energy industry model is generally
positive and should support growth and stability in the sector.
The CFLCL group is in the process of reorganizing its corporate
structure as required by the Brazilian New Industry Model Law,
which Fitch has incorporated into the rating. Following the
reorganization expected to be completed by October 2006,
Energisa will have additional operating assets, including:
-- CFLCL, a distribution and generation company and the
current holding company of the group;
-- Companhia de Eletricidade de Nova Friburgo, another small
distribution and generation company; and
-- a thermal plant of 87 MW,
all of which operate in the southeast of Brazil. The inclusion
of these additional assets will affect the consolidated credit
protection measures and overall credit quality of the guarantor,
Energisa, but should be similar to the current consolidated
credit quality of CFLCL, which is acceptable for the assigned
rating. Overall credit quality should improve with the new debt
issuance.
Energisa is a holding company for the two electricity
distribution companies issuing the notes units, Energipe and
Saelpa. Additionally, Energisa controls Companhia Energetica da
Borborema, another small distribution company of Paraiba State.
The distribution companies serve approximately 1.5 million
customers distributing 4,351 GWh in 2005 in the Northeast
Brazilian States of Sergipe and Paraiba. Energisa is controlled
by CFLCL.
EMPRESA ENERGETICA: S&P Rates US$250MM 10-Year Sr. Notes at B+
--------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'B+' global-
scale foreign currency ratings to the unconditional,
unsubordinated, and unsecured 10-year senior notes units to be
jointly issued by Brazilian electric distribution utilities:
-- Empresa Energetica de Sergipe S.A. aka Energipe and
-- Sociedade Anonima de Eletrificacao da Paraiba aka Saelpa.
The issue amount will be about US$250 million with bullet
maturity of principal and quarterly interest payments, and will
count on a corporate guarantee provided by their holding
company, Energisa S.A.
"The senior notes units rating takes into consideration that the
Cataguazes Group's regulatory 'de-verticalization' process will
be completed with all necessary approvals from creditors and the
regulator, without compromising the financial stance of Energipe
and Saelpa," said Standard & Poor's credit analyst Marcelo
Costa.
The companies are part of the Cataguazes Group, which, due to
current market conditions, made some changes in the previous
perpetual senior notes units converting them into a 10-year
plain vanilla bond to be issued only by Energipe and Saelpa, but
keeping the same amount. The change in tenor did not affect the
issue rating.
The senior notes units will consist of underlying notes offered
by Energipe with 65% of the total amount and Saelpa with the
remaining 35%, to entirely mature in 2016.
The senior notes units will effectively be subordinated to the
secured debt of each issuer, to the extent of the value of the
assets securing such debts.
If a rating change occurs in one or both issuers, the senior
notes units rating will reflect the weaker credit quality
between Energipe and Saelpa, considering that the rating on the
notes units reflects their individual capacity to make the
necessary and punctual quarterly interest payments during the
lifetime of their respective underlying notes.
GOL LINHAS: Aeropar Concludes Transfer of 107,590,772 Shares
------------------------------------------------------------
GOL Linhas Aereas Inteligentes disclosed that its controlling
shareholder, Aeropar Participacoes S.A., concluded on
June 19, 2006 the transfer of 107,590,772 ordinary shares of GOL
to Fundo de Investimento em Participacoes Asas, an investment
fund beneficially owned by the ultimate controlling shareholders
of GOL. The transfer did not entail any transfer of control and
had no effect on the free float of the preferred shares and ADSs
of GOL.
In the context of the share transfer, the ultimate controlling
shareholders of GOL retained, under a reservation of usufruct,
and are entitled to exercise the voting rights conferred by
ordinary shares representing a majority (50.00013484212%) of the
total issued ordinary shares of GOL. The share transfer does
not change the ultimate beneficial ownership over the shares and
has no effect on the management of GOL.
About Gol Linhas
Headquartered in Sao Paulo, Brazil, Gol Linhas Areas
Inteligentes S.A. -- http://www.voegol.com.br-- through its
subsidiary, Gol Transportes Aereos S.A., provides airline
services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay.
The company's services include passenger, cargo, and charter
services. As of March 20, 2006, Gol Linhas provided 440 daily
flights to 49 destinations and operated a fleet of 45 Boeing 737
aircraft. The company was founded in 2001.
* * *
On March 21, 2006, Moody's Rating Services assigned a Ba2 rating
on Gol's Long-Term Corporate Family Rating.
On June 14, 2006, Fitch Ratings assigned a rating of 'BB' to GOL
Linhas' outstanding US$200 million 8.75% perpetual
bond. In addition, Fitch has assigned:
-- National Scale Rating of 'AA-(bra)' with Stable Outlook,
-- Local Currency Issuer Default Rating of 'BB+'- with
Stable Outlook, and
-- Foreign Currency IDR of 'BB-' with Positive Outlook.
JBS SA: S&P Affirms B+ Long-Term Corporate Credit Rating
--------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its 'B+' long-
term corporate credit rating on Brazil-based meat-processor JBS
S.A., formerly Friboi. The outlook is stable.
The ratings on JBS reflect:
-- its exposure to the volatile and highly competitive global
fresh and processed meat industries;
-- its high dependence on commodity-type products, which are
typified by relevant exposure to risks of sanitary and
trade restrictions; and
-- a highly leveraged capital structure and aggressive growth
strategy.
These negative factors are tempered by JBS'
-- leading position in the Brazilian beef industry;
-- strong competitiveness on exports, which is supported by
a low cost position compared to its international peers;
and
-- geographic diversification of operations.
"JBS is exposed to a number of risks and challenges associated
with meat and other food commodity industries, including
relatively low operating margins, price volatility, exposure to
potential sanitary and tariff barriers, limited product
differentiation, and high working capital requirements," said
Standard & Poor's credit analyst Jean-Pierre Cote Gil.
Conversely, the global protein industry continues to present
very positive prospects, with increasing per-capita consumption
and above-GDP growth rates. In addition, Brazil has
consolidated its leading position in exports of beef-based
products, accounting for more than 25% of the total volumes
traded globally.
Despite the increasing contribution of Brazilian beef exports in
global markets, JBS' credit quality continues to be highly
exposed to potential trade and sanitary barriers that affect the
company's capacity to export. While the foot-and-mouth disease
or FMD outbreak reported in the Brazilian state of Mato Grosso
do Sul in October 2005 had limited impact on JBS' operations so
far, an animal-disease outbreak could well affect domestic and
global demand for beef products and make room for the growth of
substitute products such as poultry and fish as experienced by
poultry producers since the avian flu outbreak in Europe and
Asia. Export markets provide JBS with an important geographic
diversification of sales, in particular because of the intense
competition and tighter operating margins found in the domestic
market.
The impact of the sanitary barriers that followed the
confirmation of FMD cases in MS has been partly eased in the
case of JBS due to its significant capacity to rearrange
production among its 15 slaughterhouses distributed in six
Brazilian states, and two in Argentina. After an immediate
decline in export volumes experienced until the end of 2005, JBS
has reported increasing export volumes in 2006 (65,800 tons in
first-quarter 2006 versus 56,900 tons in the same period of
2005). In addition, global meat prices have increased in part
because of lower supply from Brazil, as many single-site
producers located in areas affected by the trade barriers have
been unable to export, partly compensating the impact of the 15%
local currency appreciation in the past 12 months.
Standard & Poor's expects JBS to continue benefiting from its
advantageous cost position on exports in relation to major meat-
exporting companies based in other countries such as Australia,
Canada, and the U.S. This position is supported by:
-- the large availability of grazing land at relatively low
costs in Brazil;
-- the lower costs associated with grass-fed cattle; and
-- relatively lower labor costs.
JBS' market position is also strengthened by its leading
position in beef products in Brazil and its significant position
in Argentina.
Standard & Poor's also expects JBS to maintain solid operating
performance during the next few years, benefiting from the
increasing economies of scale from ongoing investments and
favorable industry fundamentals. The company's consolidated
EBITDA margins are expected to remain at about 10%, as reported
on average in the past three years. JBS' relatively tight
operating margins as is usual in the meat sector and exposure to
volatile market environments indicate the company's cash-flow
adequacy is significantly exposed to economic down cycles. In
addition, capital expenditures and working capital requirements
projected for the next few years should continue to prevent JBS
from generating free operating cash flows.
The stable outlook reflects our expectations that JBS will
maintain its competitiveness in both the domestic and export
market and take advantage of the strong long-term fundamentals
of the global beef industry, delivering EBITDA margins around
10%. At the same time, the company should improve the profile
of its debt (longer term) to compensate for relatively weak
cash-flow protection measures for the rating category.
The ratings could be revised downward under a negative scenario
for both the local economy and the international markets that
resulted in lower meat consumption levels and depressed prices.
A beef-related disease outbreak in Brazil, or in another major
beef-producing country, could hinder the company's ability to
export its products, or simply affect global demand for beef-
based products. The ratings on JBS could also be negatively
affected if the company were to adopt a more aggressive growth
strategy that involved a major debt-financed acquisition, as
there is no room in the current ratings for
further debt incurrence.
A positive change in the ratings or outlook would depend on a
significant reduction of the company's debt leverage, reflected,
for instance, in total debt-to-EBITDA ratios consistently below
3.0x. The ratings would also be positively influenced if the
company were able to achieve higher operating margins and a more
diversified and value-added product mix.
NOSSA CAIXA: Expands Mortgage Loan Access to Low-Income Clients
---------------------------------------------------------------
Nossa Caixa, along with Caixa Economica Federal, has expanded
mortgage loan to low-income clients, Business News Americas
reports.
BNamericas states that the two banks are the only ones that
offer mortgage loans to lower income segments.
Jose Augusto Viana Neto -- the president of CRECI-SP, a Sao
Paulo council of real estate agents -- told BNamericas that
Caixa Economica lends to clients with monthly salaries of at
least BRL300, while Nossa Caixa requires a minimum monthly
salary of BRL400.
According to BNamericas, Caixa Economica and Nossa Caixa were
praised by CRECI-SP for their move. The council said in a study
that the two banks have taken the lead in going "downmarket"
with their mortgage loan offers as well as improving loan terms
and the range of mortgage products on offer.
"It's a gratifying change for us after years of fighting alone
for people to have easier access to home loans," BNamericas
relates, citing Mr. Neto.
* * *
On Oct. 19, 2005, Moody's Investors Service upgraded Banco Nossa
Caixa S.A.'s long-term foreign currency deposit rating to B1
from B2 with a positive outlook.
At the same time, the ratings agency upgraded Banco Nossa
Caixa's long-term foreign currency debt rating to Ba1 with a
stable 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. Moody's
said the country ceilings have a positive outlook.
SOCIEDADE ANONIMA: Fitch Rates US$250MM Notes Offering at BB-
-------------------------------------------------------------
Fitch has assigned a rating of 'BB-' to the proposed issuance of
up to US$250 million 10-year, bullet notes units offering of:
-- Empresa Energetica de Sergipe S.A. aka Energipe and
-- Sociedade Anonima de Eletrificacao da Paraiba aka Saelpa.
The issuance will be split between notes to Energipe, with two-
thirds part, and notes to Saelpa with the remaining one-third.
The notes units and underlying senior notes of the two entities
will be guaranteed by their holding company, Energisa S.A.
While the notes units' underlying securities are separate,
standalone indebtedness of each entity, the senior notes are
nondetachable and contain cross-default provisions. The
proceeds of the issuance will be used to refinance existing debt
representing approximately 72% of Energisa's consolidated third
party debt at the end of 2005.
Fitch's rating reflects the combined credit quality of the
issuers and their guarantor given the notes' cross-default
provision and nondetachable characteristics. The rating is
supported by improving credit-protection measures at Energipe
and Saelpa and, on a consolidated basis, at Companhia Forca e
Luz Cataguazes-Leopoldina or CFLCL, which should continue to
strengthen over the next year, supported by projected growth in
operating income and cash flow, as well as the reduction in
annual debt service following the proposed issuance. The
companies should also benefit from the improved outlook for the
Brazilian regulatory environment and sufficient tariff
adjustments. CFLCL and four of its subsidiaries operate in the
regulated distribution market with long-term contracts with
generators. While regulatory risk remains an ongoing credit
concern, the current electric energy industry model is generally
positive and should support growth and stability in the sector.
The CFLCL group is in the process of reorganizing its corporate
structure as required by the Brazilian New Industry Model Law,
which Fitch has incorporated into the rating. Following the
reorganization expected to be completed by October 2006,
Energisa will have additional operating assets, including:
-- CFLCL, a distribution and generation company and the
current holding company of the group;
-- Companhia de Eletricidade de Nova Friburgo, another small
distribution and generation company; and
-- a thermal plant of 87 MW,
all of which operate in the southeast of Brazil. The inclusion
of these additional assets will affect the consolidated credit
protection measures and overall credit quality of the guarantor,
Energisa, but should be similar to the current consolidated
credit quality of CFLCL, which is acceptable for the assigned
rating. Overall credit quality should improve with the new debt
issuance.
Energisa is a holding company for the two electricity
distribution companies issuing the notes units, Energipe and
Saelpa. Additionally, Energisa controls Companhia Energetica da
Borborema, another small distribution company of Paraiba State.
The distribution companies serve approximately 1.5 million
customers distributing 4,351 GWh in 2005 in the Northeast
Brazilian States of Sergipe and Paraiba. Energisa is controlled
by CFLCL.
SOCIEDADE ANONIMA: S&P Rates US$250MM 10-Year Sr. Notes at B+
-------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'B+' global-
scale foreign currency ratings to the unconditional,
unsubordinated, and unsecured 10-year senior notes units to be
jointly issued by Brazilian electric distribution utilities:
-- Empresa Energetica de Sergipe S.A. aka Energipe and
-- Sociedade Anonima de Eletrificacao da Paraiba aka Saelpa.
The issue amount will be about US$250 million with bullet
maturity of principal and quarterly interest payments, and will
count on a corporate guarantee provided by their holding
company, Energisa S.A.
"The senior notes units rating takes into consideration that the
Cataguazes Group's regulatory 'de-verticalization' process will
be completed with all necessary approvals from creditors and the
regulator, without compromising the financial stance of Energipe
and Saelpa," said Standard & Poor's credit analyst Marcelo
Costa.
The companies are part of the Cataguazes Group, which, due to
current market conditions, made some changes in the previous
perpetual senior notes units converting them into a 10-year
plain vanilla bond to be issued only by Energipe and Saelpa, but
keeping the same amount. The change in tenor did not affect the
issue rating.
The senior notes units will consist of underlying notes offered
by Energipe with 65% of the total amount and Saelpa with the
remaining 35%, to entirely mature in 2016.
The senior notes units will effectively be subordinated to the
secured debt of each issuer, to the extent of the value of the
assets securing such debts.
If a rating change occurs in one or both issuers, the senior
notes units rating will reflect the weaker credit quality
between Energipe and Saelpa, considering that the rating on the
notes units reflects their individual capacity to make the
necessary and punctual quarterly interest payments during the
lifetime of their respective underlying notes.
===========================
C A Y M A N I S L A N D S
===========================
AMMC CDO I: Shareholders Will Meet for Final Meeting on July 14
---------------------------------------------------------------
AMMC CDO I, Limited's shareholders will gather for a final
meeting on July 14, 2006, at:
Maples Finance Limited,
Queensgate House, George Town
Grand Cayman, Cayman Islands
During the meeting, the liquidator will give an account and
explanation of the winding up process.
The liquidators can be reached at:
Martin Couch
Mike Hughes
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
BLUE METAL: Final Shareholders Meeting Is Scheduled for July 14
--------------------------------------------------------------
Blue Metal Limited's shareholders will convene on July 14, 2006,
for a final general meeting at 11:00 a.m., at the company's
registered office.
Accounts on the company's liquidation process will be presented
during the meeting. The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after that
period.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The company's liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
P.O. Box 908, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914-6305
CAFE II: Holding Final Shareholders Meeting on July 13
------------------------------------------------------
Cafe II's shareholders will convene on July 13, 2006, for a
final general meeting at 11:30 a.m., at:
HSBC Financial Services (Cayman) Limited
P.O. Box 1109, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting. The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after that
period.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The company's liquidators can be reached at:
Kareen Watler
Sylvia Lewis
P.O. Box 1109, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-7755
Fax: (345) 949-7634
CANE FUND: Liquidator Presents Wind Up Accounts on July 13
----------------------------------------------------------
Cane Fund Limited's shareholders will convene on July 13, 2006,
for a final meeting at 10:00 a.m., at the company's registered
office.
Accounts on the company's liquidation process will be presented
during the meeting. The shareholders will also authorize the
liquidators to retain the records of the company for a period of
five years, starting from the dissolution of the company.
Destruction of the records may then be allowed after such
period.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The company's liquidators can be reached at:
David A.K. Walker
Lawrence Edwards
Attention: Jodi Jones
P.O. Box 219, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914-8694
Fax: (345) 949-4590
HELLENIC CASINOS: Final Shareholders Meeting Is Set for July 14
---------------------------------------------------------------
Hellenic Casinos Company's shareholders will convene for a final
meeting on July 14, 2006, at the company's registered office.
Maples Finance Limited,
Queensgate House, George Town
Grand Cayman, Cayman Islands
These will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
The liquidator can be reached at:
Commerce Corporate Services Limited
P.O. Box 694, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-8666
Fax: (345) 949-7904
HOURGLASS MASTER: Sets Final Shareholders Meeting for July 14
-------------------------------------------------------------
Hourglass Master Fund, Ltd.'s shareholders will convene on
July 14, 2006, for a final general meeting at 10:00 a.m., at the
company's registered office.
Accounts on the company's liquidation process will be presented
during the meeting. The shareholders will also authorize the
liquidators to retain the records of the company for a period of
six years, starting from the dissolution of the company.
Destruction of the records may then be allowed after that
period.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The company's liquidator can be reached at:
Q&H Nominees Ltd.
Attention: Greg Link
P.O. Box 1348, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-4123
Fax: (345) 949-4647
LIDO CDO: Schedules Last Shareholders Meeting on July 14
--------------------------------------------------------
Lido CDO, Limted's shareholders will convene for a final
meeting on July 14, 2006, at:
Maples Finance Limited
Queensgate House, George Town
Grand Cayman, Cayman Islands
During the meeting, the liquidators will present to the
shareholders an account and explanation on the winding up
process.
Parties-in-interest may contact the liquidators at:
Mora Goddard
Emile Small
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
MW POST: Holds Last Shareholders Meeting on July 14
---------------------------------------------------
MW Post High Yield Maestro Fund Limited's shareholders will
gather on July 14, 2006, for a final meeting at 12:00 p.m., at
the company's registered office.
Accounts on the company's liquidation process will be presented
during the meeting. The shareholders will also authorize the
liquidators to retain the records of the company for a period of
six years, starting from the dissolution of the company.
Destruction of the records may then be allowed after that
period.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The company's liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
P.O. Box 908, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914-6305
SHERPAS LIMITED: Holds Final Shareholders Meeting on July 14
------------------------------------------------------------
Sherpas Limited's shareholders will gather for a final meeting
on July 14, 2006, at:
Maples Finance Limited,
Queensgate House, George Town
Grand Cayman, Cayman Islands
The liquidators will give an account and explanation of the
winding up process during the meeting.
The liquidators can be reached at:
Guy Major
Emile Small
Maples Finance Limited
P.O. Box 1093, George Town
Grand Cayman, Cayman Islands
TPG SEGREGATED: Final Shareholders Meeting Is Set for July 14
-------------------------------------------------------------
TPG Segregated Portfolio Company (Cayman)'s shareholders will
convene on July 14, 2006, for a final meeting at 10:30 a.m. at
the company's registered office.
These will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
4) authorizing the liquidators to retain the records of the
company and of the liquidators for a period of five years
from the dissolution of TPG Segregated, after which they
may be destroyed.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The company's liquidators can be reached at:
K.D. Blake
S.L.C. Whicker
Attn: Michael Schulz
P.O. Box 493, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-4800
Fax: (345) 949-7164
===============
C O L O M B I A
===============
* COLOMBIA: Bidder Offers to Build Modular Terminal at El Dorado
----------------------------------------------------------------
Concesion El Dorado, one of the five groups that presented
offers for Colombia's El Dorado international airport
concession, has proposed to construct a modular terminal,
according to local newspaper La Republica.
Business News Americas reports that while the government wants
the new concessionaire to expand the airport to be able to
accommodate 16 million passengers yearly, Concesion El Dorado
proposed to construct a new terminal that would be able to
expand to handle about 40 million passengers annually.
Ernesto Gutierrez -- the head of the Argentina group Casa, which
is a member of the Concesion El Dorado -- told BNamericas that
if the airport is built to seat 16 million people, its operators
will have to destroy it in 20 years to build a new one.
Concesion El Dorado's alternative plan is to construct a
terminal that in the first years would be able to handle 18
million passengers, but would be able to move up to 40 million
passengers in the future, BNamericas states, citing Mr.
Gutierrez.
According to BNamericas, the plan includes a connection between
the airport and the Transmilenio mass transit system.
The concession, says BNamericas, will last for 20 years. It
includes:
-- administration,
-- operation,
-- commercial management,
-- maintenance, and
-- expansion of the airport.
The private operator will have to invest about US$650 million
during the 20-year period, according to BNamericas.
The national government expects to raise about COP54 billion in
the airport concession's first year, BNamericas states.
* * *
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'.
=======
C U B A
=======
* CUBA: Plans to Export Heavy Crude from Northwestern Coasts
------------------------------------------------------------
International press reports say that the Cuban government
intends to export heavy crude from its northwestern coasts.
Business News Americas relates that the government has awarded
contracts to eight Chinese drilling platforms on the coast. The
government expects about 12 platforms in the region by the end
of the year and some 18 in 2007.
According to press reports, Chinese oil firm Sinopec will begin
drilling jointly with state oil company Cupet in Pinar del Rio
this year.
Cuba makes some 60,000 low-quality barrels of crude a day from
the northwestern coast. BNamericas states that the nation also
is reporting a heavy crude oil surplus due to increased drilling
in the coast's oil belt.
Cuba will be able to export in part by swapping oil-fired
thermoelectric power generation refineries with diesel-fired
generators and combined cycle plants, Reuters relates.
* * *
Moody's assigned these ratings on Cuba:
-- CC LT Foreign Bank Depst, Caa2
-- CC LT Foreign Curr Debt, Caa1
-- CC ST Foreign Bank Depst, NP
-- CC ST Foreign Curr Debt, NP
-- Issuer Rating, Caa1
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Expects Tourist Arrivals Despite Bad Image
----------------------------------------------------------------
Felix Jimenez, the Dominican Republic's tourism minister,
believes that 2006 will be a record-breaking year for tourist
arrivals, Diario Libre reports.
As reported in the Troubled Company Reporter on June 21, 2006,
Giorio Sfara, the Italian ambassador to the country, said that
high energy supply costs and the rising crime rate in the
Dominican Republic could discourage foreign investors.
DR1 Newsletter states that the Italian ambassador said that the
recent crime rate is causing a feeling of insecurity that could
cause decline in the number of European tourists visiting the
Dominican Republic.
However, Minister Jimenez told Diario Libre that Dominican
tourist zones are secure. Punta Cana, Sosua, Puerto Plata,
Cabarete, Bayahibe, La Romana and Boca Chica are all safe places
where crimes are isolated cases.
Still measures are being taken to improve the equipment and
efficiency of the members of the Tourism Police or POLITUR, DR1
relates, citing Minister Jimenez.
* * *
The Troubled Company Reporter-Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
* DOMINICAN REPUBLIC: Launching Program Against Increasing Debts
----------------------------------------------------------------
The government of the Dominican Republic will launch an
austerity program that will prohibit institutions from raising
their debts with banks and suppliers, the DR1 Newsletter
reports.
DR1 relates that government authorities agreed on the program on
June 19.
According to DR1, the government encouraged planning of
expenditures among institutions according to their most basic
needs to ensure that by the end of June, the non-financial
public sector will end up with a DOP332 million surplus.
Listin Diario states that the measures were decided during a
Government Cabinet meeting led by President Leonel Fernandez in
the Presidential Palace.
The government instructed collecting agencies to make sure that
collections would not decline with the country's entry into the
Dominican Republic-Central America-United States Free Trade
Agreement or DR-CAFTA, which was set for July 1, DR1 reports.
* * *
The Troubled Company Reporter - Latin America reported on
May 9, 2006, that Fitch Ratings upgraded these debt and issuer
Default Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
=============
E C U A D O R
=============
PETROECUADOR: May Refine Oil from Oxy Fields in Venezuela
---------------------------------------------------------
Petroecuador, Ecuador's state oil firm, said that it will
consider Petroleos de Venezuela SA's proposal to refine oil from
Occidental Petroleum's fields in Venezuela.
Petroleos de Venezuela intends to refine 75% of the 100,000
barrels of oil per day that Occidental Petroleum exported from
Ecuador, El Universal reports, citing AFP.
"On Tuesday, the committee will come up with real figures on the
advantages of a likely negotiation (to refine 75,000 bpd of oil
in Venezuela," said a senior official with Ecuadorian state oil
firm Petroecuador who requested anonymity, El Universal relates.
Petroecuador said that Petroleos de Venezuela will process the
same number of barrels of oil that Occidental Petroleum used to
process before its operating contract was terminated in May.
About Petroleos de Venezuela
Petroleos de Venezuela SA is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and
coal industry, as well as planning, coordinating, supervising
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'. The rating of PDVSA's export receivable
future flow securitization, PDVSA Finance Ltd, was also upgraded
to 'BB+' from 'BB'. In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating. Fitch said the Rating Outlook
is Stable. Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.
About Petroecuador
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash if
Petroecuador won't be efficient and transparent in its accounts.
=====================
E L S A L V A D O R
=====================
MILLICOM INTERNATIONAL: China Mobile Purchase Deal Delayed
----------------------------------------------------------
The deal for the purchase of Millicom International Cellular SA
by China Mobile was delayed due to China's lack of diplomatic
relations with five of the 16 nations where Millicom has
operations, XFN-ASIA reports.
Reports say that China Mobile has been near a US$5.3 billion
deal to buy Millicom for more than a month.
However, the Wall Street Journal reports that sources close to
the matter say that the deal is progressing. These five nations
have granted visas to Chinese authorities to conduct due
diligence:
-- El Salvador,
-- Guatemala,
-- Honduras,
-- Paraguay, and
-- Chad.
The due-diligence teams were reported to be composed of about 15
members, including three China Mobile officials. The teams --
along with bankers, lawyers and consultants -- visited all but
two of the nations where Millicom operates. The teams say they
will be visiting the other countries this week.
The Wall Street relates that China Mobile will announce the
acquisition of Millicom next week in Beijing.
The acquisition, says the Wall Street, does not require
regulatory approval in the various nations because the deal
involves China Mobile purchasing a holding company that controls
Millicom.
The management of Millicom will be the same without change of
control on an operating level, Wall Street states.
Millicom International Cellular S.A. -- http://www.millicom.com/
-- is a global telecommunications investor with cellular
operations in Asia, Latin America and Africa. It currently has
cellular operations and licenses in 16 countries. The Group's
cellular operations have a combined population under license of
approximately 391 million people.
The Central America Cluster comprises Millicom's operations in
El Salvador, Guatemala and Honduras. The population under
license in Central America as at December 2005 is 26.4 million.
The South America Cluster comprises Millicom's operations in
Bolivia and Paraguay. The population under license in South
America as at December 2005 is 15.2 million.
* * *
Millicom International's 10% senior notes due 2013 carry Moody's
B3 rating and Standard & Poor's B- rating.
=========
H A I T I
=========
* HAITI: World Bank Grants US$2MM to Boost Resource Management
--------------------------------------------------------------
The World Bank approved a US$2-million grant to strengthen the
management of public sector resources. The new grant is the
second phase of public sector support from the World Bank.
"Strengthening public sector resource management in Haiti is a
key element to promoting economic recovery and improving service
delivery," said Caroline Anstey, World Bank Country Director for
the Caribbean. "This new grant support will strengthen budgetary
and procurement control systems, and help ensure that funds are
used efficiently and reach those they are intended to serve,"
she added.
Specifically, the Economic Governance TAG II Project has five
key components:
-- The Financial Resource Management component seeks to
build capacity among public sector staff to produce and
execute a budget, track its implementation, and reduce
irregular uses and expenditures.
-- Human Resource Development support will help Haiti to
establish a Human Resource Unit to manage financial and
budgetary functions throughout the public sector.
-- Development of an Office of Economic Studies Capacity for
Strategic Monitoring of Sector Policy via Sector
Ministries' Tracking of Service Delivery. This component
represents a first step toward taking budgetary
formulation and tracking beyond a financial focus to an
emphasis on monitoring outcomes.
-- Anti-corruption and Civil Society Engagement -- the Low
Income Countries Under Stress grant and Economic
Governance TAG I supported the establishment of the
Unite de Lutte Contre la Corruption and civil society
monitoring of economic governance reforms, complemented
by USAID and Inter-American Development Bank projects.
-- Lastly, the Communication, Donor Coordination, and
Project Management component seeks to improve
communications channels with international donors and
with external audiences alike.
"We are delighted that this new grant will support the
Government of Haiti in its efforts to streamline budgetary
procedures, thereby eliminating some duplication of functions
and potential conflicts of interest," said Linn Hammergren,
World Bank Senior Public Sector Management Specialist and Task
Team Leader for the project.
The Bank's activities in Haiti are outlined in a Transitional
Support Strategy prepared in 2004 and endorsed by its Board in
January 2005. The TSS presents the Bank's two-year program aimed
at delivering hope to the population and restore credibility in
public institutions by helping the Interim Government provide
basic services, create jobs, and launch reforms that promote
longer-term economic governance and institutional development.
The Bank is committed to a long-term engagement in Haiti.
The Haiti Economic Governance TAG II Project is an International
Development Association-funded grant of US$2.0 million. With
this project, the World Bank has 9 active grants to Haiti
representing US$ 75 million in commitments.
* * *
Haiti is currently seeking international help to spur economic
development in the country. President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructures will be alleviated with
increased international assistance.
=============
J A M A I C A
=============
MIRANT CORP: Equity Committee Counsel Wants US$3.1MM Bonus Fee
--------------------------------------------------------------
Brown Rudnick Berlack Israels LLP and Hohmann, Taube & Summers,
L.L.P., are counsel to the Official Committee of Equity Security
Holders in the chapter 11 cases of Mirant Corporation and its
debtor-affiliates.
The Firms ask the U.S. Bankruptcy Court for the Northern
District of Texas to award them US$3,124,208 as bonus fee.
Specifically, Brown Rudnick asks for US$3,032,032, while Hohmann
Taube seeks payment of US$92,176.
The proposed bonus fee is 25% of the Firms' total monthly fees
and expenses.
Eric J. Taube, Esq., at Hohmann, Taube & Summers, L.L.P., in
Austin, Texas, asserts that the Firms should be awarded with a
fee bonus because of the superior work they performed, the
outstanding results they obtained for the equity holders, and
the risks of non-payment they faced.
Among other things, the Firms' work throughout Mirant's
bankruptcy proceeding resulted in a consensual plan of
reorganization whereby equity holders, who faced total
elimination of their interests under the Debtors' original plan,
and an enormous valuation "gap" between the parties, have
received meaningful value, Mr. Taube tells the Court.
New Mirant Objects
The New Mirant Entities believe that no professional, including
Brown and Hohmann, should be rewarded with a success fee.
Craig H. Averch, Esq., at White & Case LLP, in Miami, Florida,
contends that providing adequate services does not qualify a
professional for a fee enhancement. Rather, fee enhancements
should be granted only in "rare and exceptional" circumstances.
New Mirant asserts that the award of a fee enhancement to
Hohmann and Brown would not be appropriate because the success
of the Debtors' Chapter 11 cases was the result of a combination
of many factors.
New Mirant asks the Court to deny Brown and Hohmann's request
for fee enhancement.
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.
98; Bankruptcy Creditors' Service, Inc., 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant Corporation and said the outlook is
stable.
MIRANT CORP: Miller Buckfire Asks for US$1.5M Supplemental Fee
--------------------------------------------------------------
Miller Buckfire & Co., LLC, as financial advisor and investment
banker to the Official Committee of Unsecured Creditors of
Mirant Corporation, et al., asks Judge Lynn to award it
US$1,500,000 as supplemental fee.
Samuel M. Greene, a managing director at Miller Buckfire, tells
Judge Lynn that the supplemental fee request is separate from
its request for payment of fees and reimbursement of expenses
totaling US$7,112,568.
Mr. Greene says that the Mirant Committee approves of the
supplemental fee request.
The supplemental fee, Mr. Greene notes, is pursuant to the
Miller Buckfire's engagement letter dated August 5, 2003, which
contemplated the payment of monthly fees and a fixed
restructuring transaction fee plus "further compensation after
confirmation of a Plan, based on, among other things, recoveries
to the unsecured creditors . . . and timing of the Company's
bankruptcy cases."
Mr. Greene asserts that the supplement fee is appropriate and
reasonable because Mirant's bankruptcy cases were "unusually and
extraordinarily successful" and creditor recoveries exceeded the
reasonable expectations of the parties.
Mirant's bankruptcy cases, Mr. Greene says, required exceptional
amounts of activity on the part of Miller Buckfire and consumed
substantial amounts of the firm's available resources.
Additionally, Miller Buckfire's total compensation is consistent
with the compensation sought by the other financial advisors,
Mr. Greene notes.
New Mirant Objects
The New Mirant Entities recognize that Miller Buckfire played a
role in the Debtors' cases and must be compensated accordingly.
New Mirant does not oppose the approval of the majority Miller
Buckfire's fees, including the US$4,350,000 in total monthly
fees and the US$2,500,000 restructuring transaction fee.
However, Miller Buckfire's fee enhancement cannot be approved
under either Section 328 or Section 330 of the Bankruptcy Code,
Michelle C. Campbell, Esq., at White & Case LLP, in Miami,
Florida, points out.
The U.S. Bankruptcy Court for the Northern District of Texas'
order approving Miller Buckfire's retention does provide for a
fee enhancement to be awarded to the firm, Ms. Campbell asserts.
Additionally, Miller Buckfire's services do not support a fee
enhancement under Section 330.
Ms. Campbell notes that New Mirant, as the party that would be
responsible for paying the fee enhancement, does not consent to
Miller Buckfire's request for a fee enhancement. Moreover,
Miller's engagement letter failed to provide a specific amount
or even a general range of the amount of the "success fee."
With Miller Buckfire's US$6,850,000 in total monthly fees and
restructuring fee, it would be unreasonable for Miller Buckfire
to argue that it was not adequately compensated for its
services, Ms. Campbell points out.
Miller Buckfire Retorts
Mr. Greene explains that the Supplemental Fee was contemplated
from the outset of Miller Buckfire's engagement, and is
reflected in the engagement itself.
The Engagement Letter, according to Mr. Greene, provides that
Miller Buckfire will receive monthly fees, a restructuring fee
and an "additional fee" in an unspecified amount. The
Additional Fee will be determined after confirmation of a Plan,
based on, among other things, recoveries to the unsecured
creditors to Mirant Corporation, et al., and timing of the
Company's bankruptcy cases."
Mr. Greene notes that Miller Buckfire's fees are lower than the
fees sought by comparable professionals.
Thus, Miller Buckfire asks the Court to approve its supplemental
fee request.
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.
98; Bankruptcy Creditors' Service, Inc., 215/945-7000)
* * *
As reported in the Troubled Company Reporter on Dec. 8, 2005,
Standard & Poor's Ratings Services placed a 'B+' corporate
credit rating on Mirant Corporation and said the outlook is
stable.
* JAMAICA: Posts Rise in Demand for Scrap Metal Abroad
------------------------------------------------------
Errol Greene, executive director of the National Solid Waste
Management Authority, said in a meeting of the Lions Club of
Kingston, that demands for scrap metal in Jamaica has risen, the
Jamaica Gleaner reports.
The search to collect the metals has increased, The Gleaner
relates, citing Paul Bonner -- the chief technical officer at
Caribbean Casting 2001 Limited, which uses scrap metal to
manufacture equipment and fittings for the sugar industry and
for plumbing works.
"In the past year the movement of scrap metal out of the island
has increased significantly," Mr. Bonner told The Gleaner. In
the past two years, Caribbean Casting has struggled to get scrap
metals at US$1,800 per ton. The cost had increased by almost
100%, to more than US$3,000.
Without stating any figures, Mr. Greene told The Gleaner that
tons of the junk were being collected and placed into containers
at the Riverton Landfill.
Mr. Bonner said that around 20,000 tonnes of scrap metal are
shipped outside the country every year, The Gleaner reports.
* * *
On May 26, 2006, Moody's Investors Service upgraded Jamaica's
rating under a revised foreign currency ceiling:
-- Long-term foreign currency rating: Ba3 from B1 with
stable outlook.
===========
M E X I C O
===========
BALLY TOTAL: Asks Lenders to Extend Deadline for Filing Reports
---------------------------------------------------------------
Bally Total Fitness Holding Corp., with respect to the third
quarter of 2006, disclosed that it will ask the lenders under
its senior secured credit facility for an extension of the cross
default deadline from 10 days to 28 days after receipt of any
financial reporting covenant default notice under the company's
public bond indentures for its third quarter 10-Q report.
This is a precautionary measure on Bally Total's implementation
of new accounting processes and technologies designed to hasten
the preparation and filing of financial statements, under new
chief financial officer Ron Eidell, along with the assistance of
Tatum LLC.
As previously reported, Bally Total intends to file its 2005 10-
K report and first quarter 2006 10-Q report with the SEC before
the July 10 expiration of the waiver period obtained from the
company's senior secured lenders and bondholders. Bally Total
confirmed that its strategic process remains on track.
As previously disclosed, the waivers of financial reporting
covenants obtained in April 2006 permit Bally Total to file its
second quarter 10-Q report by September 11, 2006 or to extend
such period until October 11, 2006. The company currently
expects to file its second quarter 2006 10-Q report within the
waiver period and its third quarter 2006 10-Q report by the SEC
deadline of November 9, 2006.
About Bally Total
Bally Total Fitness -- http://www.ballyfitness.com/-- is the
largest and only U.S. commercial operator of fitness centers,
with approximately four million members and 390 facilities
located in 29 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Crunch Fitness(SM),
Gorilla Sports(SM), Pinnacle Fitness(R), Bally Sports Clubs(R)
and Sports Clubs of Canada(R) brands.
* * *
As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005. The CreditWatch update
followed Bally's announcement that it will not meet the
March 16, 2006, deadline for filing its annual report on SEC
Form 10-K for the year ending Dec. 31, 2005.
GENERAL MOTORS: Fitch Rates New US$4.48 Bil. Senior Loan at BB
--------------------------------------------------------------
Fitch has assigned a rating of 'BB' and a Recovery Rating of
'RR1' to General Motors's new US$4.48 billion senior secured
bank facility. The 'RR1' is based on the collateral package and
other protections that are expected to provide full recovery in
the event of a bankruptcy filing. Although the offering of
security to bank lenders moderately impairs the position of
General Motors's unsecured debtholders, the recovery rating for
unsecured holders still falls within the 30%-50% range
represented by the 'RR4' designation. The Issuer Default Rating
is affirmed at 'B', and remains on Rating Watch Negative.
Fitch's ratings for GMAC remain at 'BB', Rating Watch Positive,
and are not affected by the new bank financing.
The bank agreement is secured by certain North American
receivables and inventory, a stock pledge of a Mexican
subsidiary, and certain PP&E in Canada. These assets also act
as collateral for US$1.5 billion in non-loan facilities,
bringing the total amount of facilities secured by these assets
to approximately US$6 billion. The assets pledged provide
sufficient over-collateralization to support the 'RR1' rating,
and borrowing base restrictions provide further protection to
secured lenders.
General Motors's ratings remain on Rating Watch Negative, based
on short-term concerns with the unresolved Delphi situation. In
addition to the long-term liabilities that General Motors will
absorb under its guarantee of pension and OPEB obligations to
Delphi workers, General Motors is expected to provide other
forms of near-term financial assistance in order to prevent any
significant work stoppage. Financial assistance is expected to
come in a variety of forms, including the financing of buyout
packages.
High acceptance rates of buyout packages being offered to
General Motors and Delphi hourly workforces could facilitate the
resolution of the Delphi situation. However, wage and benefit
programs for the remaining hourly workforce have yet to be
resolved, and Delphi has also not resolved its large underfunded
pension position and faces a pending US$1.1 billion required
contribution. Fitch anticipates that the Rating Watch Negative
status will remain in place until a new labor agreement is
reached, and ratified by Delphi's unions. A Delphi work
stoppage that results in a material shutdown of General Motor's
North American production would likely result in a downgrade of
the IDR and unsecured ratings to the 'CCC' category. A review
of the rating could also take place in the event that General
Motors' agreement to sell a 51% interest in GMAC to a group of
investors does not proceed as planned, or in the event of a
further deterioration in operating results. Recent product
introductions have supported revenues to date in 2006, providing
time for General Motors to address its fixed cost structure,
although the duration of recent sales performance remains
uncertain given the continuing decline of industry sales in the
large SUV segment. In addition, stresses in the supply base and
high commodity costs will continue to hinder the company's cost
reduction efforts.
GENERAL MOTORS: Moody's Puts B2 Rating on US$4.5-B Secured Loan
---------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors
Corporation, affirmed the company's B3 corporate family and SGL-
3 speculative grade liquidity ratings, and lowered its senior
unsecured rating to Caa1 from B3. The rating outlook is
negative. The downgrade of the unsecured rating concludes a
review that was initiated on May 5th when GM announced the
possibility of granting security to its bank lenders.
The ratings of General Motors Acceptance Corporation (Ba1 -
under review for possible downgrade), and Residential Capital
Corporation (Baa3 and Prime-3 -- under review for possible
downgrade) are unaffected.
The assignment of a B2 rating to the secured credit facility
reflects Moody's view that the borrowing base provisions of the
proposed facility, in combination with the assets upon which
lenders will have a first priority lien, would afford secured
bank lenders with materially improved asset protection and
recovery prospects relative to unsecured lenders. Assets
included in the security package include certain US receivables
and inventory, certain Canadian receivables and inventory,
certain Canadian property plant and equipment, and 65% of the
shares of Controladora GM -- the parent company of General
Motor's profitable Mexican operation General Motors de Mexico.
The downgrade of the unsecured debt reflects the diminution in
the asset coverage that would be available to this class of
creditors as a result of the granting of security to certain
bank lenders. Moody's notes that under the terms of the
proposed amendment and extension, lenders who vote in favor of
the amendment will receive security in exchange for extending
the maturity of their commitment to 2011, while lenders not
voting in favor of the amendment will retain the original
maturity date of June, 2008 but will remain unsecured. The
rating agency said that any unsecured tranches of the credit
facility would be rated Caa1, equivalent with the company's
other unsecured debt.
The affirmation of General Motor's B3 corporate family rating
reflects Moody's view that the granting of security to its bank
lenders does not fundamentally alter the company's overall
credit risk or expected loss profile. Rather, with expected
loss representing the probability of default times the degree of
loss experienced in the event of default, the granting of
security represents a redistribution of the loss-given-default
component among secured and unsecured lenders.
Moody's plans to supplement its traditional assessment of
expected loss with a proposed Loss-Given-Default Methodology for
which a request for comment was circulated during January 2006.
Research by Moody's suggests that the realized credit losses on
loans have tended to be lower than losses on similarly rated
bonds. Moody's research further suggests that the application
of a rigorous estimation model for LGD could support a higher
degree of up-notching for bank facilities than has been the case
with Moody's traditional notching methodology which ascribes
considerable importance to asset coverage. Upon the
implementation of its LGD methodology, Moody's will adjust the
ratings of General Motor's secured credit facility accordingly.
General Motor's negative outlook reflects the considerable near-
and-intermediate-term operating challenges the company continues
to face. These include achieving a successful reorganization of
Delphi, completing the sale of a majority interest in General
Motors Acceptance Corporation aka GMAC, stemming its share loss
in North America, and achieving a 2007 UAW contract that affords
material relief from its current health care obligations and
jobs bank program.
Ensuring adequate liquidity is a critical element in General
Motor's strategy for contending with these operational
challenges. The company's sizable liquidity position of
approximately US$22 billion in cash and short-term VEBA could
benefit from the US$10 billion in up front proceeds from the
GMAC sale and from establishing an accessible credit facility of
up to US$4.5 billion.
"The recent extension of the GM-Delphi buyout program helps to
lessen the likelihood of a strike at Delphi and is a modestly
positive development on the operational side. Similarly, the
company's ability to put an accessible credit facility in place
would be a modest enhancement of its liquidity profile," said
Bruce Clark, a senior vice president with Moody's. Despite
these potentially positive developments, General Motors
continues to face formidable intermediate-term challenges. "GM
still has a long road ahead of it and there isn't much
likelihood of positive movement in the rating until the company
can stem its loss in market share, show that it can preserve the
profitability of its new line of large trucks and SUVs, achieve
a viable UAW contract in 2007, and get on track for generating
positive free cash flow for 2007," Mr. Clark said.
General Motors Corporation, headquartered in Detroit, Michigan,
is the world's largest automotive manufacturer.
GENERAL MOTORS: S&P Puts B+ Rating on Proposed US$4.5-Bil. Loan
---------------------------------------------------------------
Standard & Poor's Ratings Services has assigned its 'B+' bank
loan rating to General Motors Corp.'s proposed US$4.48 billion
senior bank facility, expiring 2011, with a recovery rating of
'1'. The bank loan is rated one notch higher than the corporate
credit rating. This and the '1' recovery rating indicate that
lenders can expect full recovery of principal in the event of a
payment default.
At the same time, Standard & Poor's lowered its senior unsecured
debt rating on General Motors to 'B-' from 'B'. The downgrade
of the unsecured debt stems from the pending secured bank
transaction, which disadvantages the unsecured debt. All
ratings on GM, including the 'B+' bank loan rating--but
excluding the '1' recovery rating--are on CreditWatch with
negative implications.
The new secured facility provides the company with approximately
the same size bank facility as its existing US$5.6 billion
facility, but with more certain access and a longer maturity.
Unlike the previous unsecured facility, the rating agency would
expect General Motors to borrow from time to time under the new
revolving credit facility for operating needs. Standard &
Poor's estimates that the absolute recovery prospects for the
unsecured creditors are in the mid-50% area. In addition, the
disadvantage to the unsecured debt holders is reflected by
priority claims to adjusted assets in the low 20% area.
Standard & Poor's expects General Motor's ratings to remain on
CreditWatch for several more months. Court hearings on Delphi
Corp.'s motion to reject its labor contracts have now been
adjourned until Aug. 11, and hearings on Delphi's request to
reject unprofitable supply contracts with GM have been postponed
also until Aug. 11. The rating agency expects negotiations
between Delphi, the United Auto Workers, and GM to continue,
however. Still, we could lower GM's ratings at any time if
evolving events at Delphi warrant--and an interim downgrade is
possible prior to resolution of the CreditWatch. Although the
proposed bank facility is considered an incremental positive for
GM's liquidity, even prior to establishment of the new bank
facility, Standard & Poor's believes GM's liquidity should
remain adequate to meet near-term funding requirements.
These actions were taken:
-- Corporate credit rating: affirmed at B and remains on
CreditWatch with negative implications;
-- Short-term rating: affirmed at B-3 and remains on
CreditWatch with negative implications;
-- US$4.48 billion secured bank loan: assigned B+ on
Negative Watch and with recovery rating of '1'; and
-- Senior unsecured debt: downgraded to B- from B,
on Negative Watch.
MERIDIAN AUTOMOTIVE: Credit Suisse Wants Summary Judgment
---------------------------------------------------------
Dennis A. Meloro, Esq., at Greenberg Traurig, LLP, in
Wilmington, Delaware notes that Rule 56(e) of the Federal Rules
of Civil Procedure states "an adverse party may not rest upon
the mere allegations or denials of the adverse party's
pleading." To defeat a motion for summary judgment, the adverse
party is required to "set forth specific facts showing that
there is a genuine issue for trial."
"The Official Committee of Unsecured Creditors has still not
done so," Mr. Meloro argues.
The only question to be resolved at this stage is whether
Credit Suisse, Cayman Islands Branch, as First Lien
Administrative Agent and First Lien Collateral Agent, authorized
the Purported Termination Statement, Mr. Meloro maintains.
Mr. Meloro states that Meridian Automotive Systems, Inc., and
its debtor-affiliates hired First American Title Insurance
Company to act as closing agent for a sale to a third party.
Credit Suisse had no connection to the sale other than
voluntarily agreeing, for the Debtors' benefit, to release its
perfected security interest in the assets being sold. In that
regard, Credit Suisse prepared a financing statement amendment.
Without Credit Suisse' knowledge, First American changed the
Amendment by checking the "termination box", Mr. Meloro tells
the Court. However, nobody was harmed by this flawed filing or
otherwise relied on its accuracy, Mr. Meloro maintains.
Mr. Meloro contends that to issue summary judgment in favor of
the Committee, the Court would need to find, without the benefit
of any actual evidence, any participation by any other party or
any expert testimony in the Debtors' Chapter 11 cases that each
of these factors were undisputed:
* The enterprise value of the Debtors on April 26, 2005;
* The recovery to Credit Suisse if the Second Composites UCC
was not avoided; and
* The recovery to Credit Suisse if the Second Composites UCC
was avoided.
However, each of these facts is intensely disputed, Mr. Meloro
says.
Thus, to the extent Credit Suisse' request for summary judgment
as to the Purported Termination Statement is denied, the
Committee's cross motion must be denied as well, according to
Mr. Meloro.
As a matter of law, Credit Suisse is entitled to know the
genesis of the support for any cause of action filed against it.
Because the Committee has still not produced a single alleged
fact in support of its claim with respect to Credit Suisse'
claim against each Guarantor in the First Lien Collateral
Agreement, Credit Suisse is entitled to summary judgment.
Mr. Meloro says that the Committee is pursuing claims to avoid
liens as unperfected that it admits are actually properly
perfected. Pursuant to Sections 544, 550, and 551 of the
Bankruptcy Code, Credit Suisse' properly perfected security
interests cannot be avoided.
Credit Suisse admits that it refused to produce a witness absent
a Court order because there was no rational or reasonable basis
for the deposition.
Accordingly, Credit Suisse asks the U.S. Bankruptcy Court for
the District of Delaware to grant summary judgment in its favor.
To preserve estate assets, Credit Suisse will not contest the
Committee's request for summary judgment avoiding Credit Suisse'
purported liens on:
(a) the Vehicles; and
(b) domestic real property, based on the results of a real
property search that shows that the First Lien Agent
failed to record mortgages as required by applicable
state law.
First American Responds
Firs American supports Credit Suisse's argument in relation to
the Purported Termination Statement.
Charlene D. Davis, Esq., at The Bayard Firm, in Wilmington,
Delaware, relates that Kina L. Clayton, the escrow officer at
Firs American assigned to the closing on the sale of the
Debtors' Centralia Facility, mistakenly checked the termination
box on the Amendment.
Credit Suisse forwarded the Amendment to First American with the
partial release box checked and directed First American only to
date and file it, Ms. Davis tells the Court. Credit Suisse did
not make any statements or conduct itself in any way that misled
anyone.
The only parties that relied on the Amendment were those on the
buyer side of the Centralia Sale, and they relied on the
Amendment to effect a release of the security interest on only
the assets being sold. Ms. Davis asserts that no one disputes
that the Amendment, with the partial release box checked and a
description of the assets subject to the Centralia Sale
attached, was effective as a partial release covering the assets
sold.
Ms. Davis contends that the fact the termination box on the
Amendment was erroneously checked does not mean that the
financing statement, taken as a whole with all filed records
linked to the First Composites UCC, contains an error that is
more than minor or that renders the financing statement
seriously misleading. This is because the financing statement
still gives notice to searchers that Credit Suisse may have a
security interest in the remaining collateral.
Therefore, First American asks the Court to grant Credit Suisse'
request and deny the Committee's cross-motion.
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)
===========
P A N A M A
===========
* PANAMA: Trade with Venezuela Placed at US$1 Bil. by Year-End
--------------------------------------------------------------
Panama's trade relation with Venezuela is expected to rise to
US$1 billion by the end of the year, Prensa Latina reports.
Venezuelan President Hugo Chavez' is visiting Panama today. His
visit is hoped to improve trade between the two nations.
Panama's President Martin Torrijos is expected to sign with
President Chavez cooperation accords in energy and investment,
says Prensa Latina.
* * *
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 E R U
=======
INTERBANK: Posts PEN27 Mil. First Quarter Profits
-------------------------------------------------
Interbank's first quarter earnings increased 47.2% to PEN27.0
million in the first quarter of 2006, compared to the same
period in 2005, Business News Americas reports.
BNamericas relates that Interbank posted these results in the
first quarter of 2006, as compared with the first quarter of
2005:
-- ROE rose to 23.1% from 14.9%,
-- net financial margin increased 19% to PEN97.2 million,
-- net operating income grew 18% to PEN51.4 million, and
-- administration expenses rose 19% to PEN96.4 million,
According to BNamericas, Interbank's assets increased 5% to
PEN6.61 billion at the end of March compared to December 2005.
Loans dropped marginally 0.4% to PEN3.83 billion at the end of
the quarter compared to December 2005. Past-due loan ratio was
at 2.58% at the end of the quarter compared with the 5.0%
reported in 2005. Liabilities grew 6% to PEN6.08 billion at the
end of March compared to December 2005, of which deposits rose
8% to PEN4.88 billion.
* * *
As reported in the Troubled Company Reporter on Dec. 5, 2005,
Fitch Ratings affirmed Peru-based Interbank's ratings at Long-
term Foreign and Local Currency 'BB-', Short-term Foreign and
Local currency 'B', Individual 'D' and Support '3', and
simultaneously withdrew them.
* PERU: Banking Sector Posts PEN366 Mil. First Quarter Earnings
---------------------------------------------------------------
Figures from SBS -- the banking, insurance and pension regulator
of Peru -- indicated that the country's banking sector profits
increased 57.2% to PEN366 million in the first quarter of 2006
compared with the same period in 2005.
According to Business News Americas, the sector posted PEN233
million in the first quarter of 2005.
BNamericas relates that these were the sector's results in the
first quarter of 2006:
-- financial margin grew 17% to PEN1.02 billion,
-- net operating income rose 23% to PEN685 million,
-- administrative expenses increased 9.8% to PEN728 million,
-- assets rose 23% to PEN77.7 billion at the end of March
compared to the same time 2005,
-- loans increased 22% to PEN39.5 billion,
-- liabilities rose 25% to PEN71.2 billion, and
-- deposits grew 18% to PEN54.5 billion.
Julio Loc, an analyst at rating agency Apoyo & Asociados
Internacionales or AAI, told Business News Americas that the
positive results were mainly attributed to the good performance
of Peru's economy, which increased demand in all the major loan
segments.
Another factor that contributed to the sector's good performance
was sales of exchange rate forward contracts due to uncertainty
caused by the presidential elections, BNamericas states, citing
Mr. Loc.
* * *
Fitch Ratings assigned these ratings on Peru:
Rating Rating Date
------ -----------
Country Ceiling BB Nov. 18, 2004
Long Term IDR BB Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=====================
P U E R T O R I C O
=====================
CAJUN FUNDING: Moody's Holds B3 Rating on US$155-Million Notes
--------------------------------------------------------------
Moody's Investors Service affirmed Cajun Funding Corp.'s B2
corporate family rating and B3 2nd lien secured notes. At the
same time, the SGL-3 Speculative Grade Liquidity rating was also
affirmed. The outlook remains stable. Cajun is the financing
company affiliated with Church's Chicken restaurants, which are
operated by Cajun Operating Company.
The rating affirmations reflect the established position of the
Church's brand within the chicken QSR category, the recent track
record for positive same store sales growth and the domestic and
international development potential of the concept. The ratings
also consider Church's high financial leverage, reliance on a
single product, modest liquidity position and limited scale and
scope in relation to its direct competitors.
Moody's previous rating action on Cajun was December 3, 2004
when a B3 rating was assigned to the US$155 million 2nd lien
secured notes. Also at that time, Moody's assigned a B2
corporate family rating and a SGL-3 Speculative Grade Liquidity
rating.
Ratings affirmed with a stable outlook:
* Corporate family rating at B2
* US$155 million 2nd lien secured notes maturing in 2011 at
B3
* Speculative Grade Liquidity rating at SGL-3
Cajun Funding Corp., the special purpose financing entity for
Cajun Operating Company, Inc., are both headquartered in
Atlanta, Georgia. The operating company develops, operates and
franchises quick-service restaurants primarily under the trade
name Church's Chicken. At December 25, 2005, the operating
company operated 277 and franchised 1,264 restaurants with
locations in 30 states, Puerto Rico and 15 foreign countries.
Revenues for fiscal 2005 were US$271 million.
GLOBAL HOME: Panel Taps Lowenstein Sandler as Bankruptcy Counsel
----------------------------------------------------------------
The Official Committee of Unsecured Creditors Appointed in
Global Home Products, LLC, and its debtor-affiliates' chapter 11
cases, asks the U.S. Bankruptcy Court for the District of
Delaware for permission to employ Lowenstein Sandler PC as its
bankruptcy counsel.
Lowenstein Sandler will:
a. provide legal advice as necessary with respect to the
Committee's powers and duties as an official committee
appointed under Section 1102 of the Bankruptcy Code;
b. assist the Committee in investigating the acts, conduct,
assets, liabilities, and financial condition of the
Debtors, the operation of the Debtors' business,
potential claims, and any other matters relevant to the
cases or to the formulation of a plan of reorganization;
c. participate in the formulation of a plan;
d. provide legal advice as necessary with respect to any
disclosure statement and plan filed in the Debtors'
chapter 11 cases and with respect to the process for
approving or disapproving a disclosure statement and
confirming or denying confirmation of a plan;
e. prepare on behalf of the Committee, as necessary,
applications, motions, complaints, answers, orders,
agreements and other legal papers;
f. appear in Court to present necessary motions,
applications, and pleading, and otherwise protect the
interest of those represented by the Committee;
g. assist the Committee in requesting the appointment of a
trustee or examiner should an action be necessary; and
h. perform other legal services as may be required and are
in the interest of the Committee and creditors.
Kenneth A. Rosen, Esq., a member at Lowenstein Sandler, tells
the Court that the Firm's professionals bill:
Professional Hourly Rate
------------ -----------
Partners US$320 - US$595
Counsel US$265 - US$425
Associates US$165 - US$300
Legal Assistants US$75 - US$150
Mr. Rosen assures the Court that his firm is "disinterested" as
that term is defined in Section 101(14) of the Bankruptcy Code.
Headquartered in Westerville, Ohio, Global Home Products, LLC
-- http://www.anchorhocking.com/and http://www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry. The company also designs and markets photo frames,
photo albums and related home decor products. The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
Apr. 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis
Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and
Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young,
Jones & Weintraub LLP, represent the Debtors. Bruce Buechler,
Esq., at Lowenstein Sandler P.C., represents the Official
Committee of Unsecured Creditors. When the company filed for
protection from their creditors, they estimated assets between
US$50 million and US$100 million and estimated debts of more
than US$100 million.
KMART CORP: Max Rudmann Wants Court to Enforce Settlement Pacts
---------------------------------------------------------------
In 2004, John Miceli and Juan Reyes entered into separate
settlement agreements with Kmart Corporation resolving their
claims for employment discrimination and violations of the
Federal Medical Leave Act. The U.S. Bankruptcy Court for the
Northern District of Illinois signed the agreed orders approving
the settlement agreements.
Messrs. Miceli and Reyes' counsel, Max Rudmann, Esq., in Boca
Raton, Florida, tells the Court that each agreement was based on
the understanding that settlement checks would be sent to him on
May 6, 2006. However, payments were issued directly to Messrs.
Miceli and Reyes on May 13, 2006, in direct violation of
Illinois Supreme Court Rules of Professional Conduct 4.2.
Rule 4.2 states that during the course of representing a client,
a lawyer will not communicate or cause another to communicate on
the subject of the representation with a party the lawyer knows
to be represented by another lawyer in that matter unless the
first lawyer has obtained the prior consent of the lawyer
representing the other party, or as may otherwise be authorized
by law.
Kmart also did not follow customary practice which dictates that
settlement payments be issued in the client's and attorney's
names and sent to the attorney for deposit in a client trust
account to be distributed in accord with the retainer contract
between the Attorney and Client, Mr. Rudmann complains.
The agreements incorporate the provision that Kmart and its
counsel would abide by Rule 4.2, and customary practice
regarding payment of settlements. Despite Kmart awareness of
Mr. Rudmann's representation, Kmart breached the agreements.
Accordingly, Mr. Rudmann asks the Court to enforce the
settlement agreements and:
(1) direct Kmart to:
* stop payment on the checks issued to Messrs. Miceli
and Reyes; and
* re-issue the checks -- this time properly addressed to
him and Messrs. Miceli and Reyes;
(2) issue sanctions against Kmart's counsel for violations
of the Rules of Professional Conduct; and
(3) award him attorney's fees and costs.
Headquartered in Troy, Michigan, Kmart Corporation (n/k/a KMART
Holding Corporation) -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam. The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474). Kmart emerged from chapter 11 protection on
May 6, 2003. John Wm. "Jack" Butler, Jr., Esq., at Skadden,
Arps, Slate, Meagher & Flom, LLP, represented the retailer in
its restructuring efforts. The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection. Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues. The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice. (Kmart Bankruptcy News,
Issue No. 112; Bankruptcy Creditors' Service, Inc., 215/945-
7000)
OCA INC: Equity Panel Wants Adams & Reese as Local Counsel
----------------------------------------------------------
The Official Committee of Equity Security Holders of OCA, Inc.,
and its debtor-affiliates asks the Honorable Jerry A. Brown of
the U.S. Bankruptcy Court for the Eastern District of Louisiana
in New Orleans for permission to retain Adams and Reese LLP as
its local bankruptcy counsel, nunc pro tunc to June 14, 2006.
Adams and Reese will assist in the performance of the Equity
Committee's duties in the Debtors' bankruptcy cases and will
take any action necessary or required to represent the Equity
Committee's interests.
The Equity Committee will oversee the coordination of Bell Boyd
& Lloyd LLC, its lead counsel, and Adams and Reese to ensure
that there is no duplication of costs and legal effort.
Robin B. Cheatham, Esq., a partner at Adams and Reese LLP, did
not disclose his or the firm's hourly rates.
Mr. Cheatham assures the Court that his firm is "disinterested"
as that term is defined in Section 101(14) of the Bankruptcy
Code.
Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices. The Debtor's client practices provide
treatment to patients throughout the United States and in Japan,
Mexico, Spain, Brazil and Puerto Rico.
The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No.
06-10179). Three Debtors also filed for bankruptcy protection
on June 1, 2006 (Bankr. E.D. La. Case No. 06-10503). William H.
Patrick, III, Esq., at Heller Draper Hayden Patrick & Horn, LLC,
represents the Debtors. Patrick S. Garrity, Esq., and William
E. Steffes, Esq., at Steffes Vingiello & McKenzie LLC represent
the Official Committee of Unsecured Creditors. Carmen H.
Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B. Cheatham,
Esq., at Adams and Reese LLP represent the Official Committee of
Equity Security Holders. When the Debtors filed for protection
from their creditors, they listed US$545,220,000 in total assets
and US$196,337,000 in total debts.
OCA INC: General Claims Bar Date of the June Debtors Is June 28
---------------------------------------------------------------
The Honorable Jerry A. Brown of the U.S. Bankruptcy Court for
the Eastern District of Louisiana in New Orleans established
4:30 p.m. on June 28, 2006, as the deadline for all creditors
owed money by the June OCA Inc. debtor-affiliates, arising prior
to June 1, 2006, to file their proofs of claim.
OCA Inc.'s debtor-affiliates that filed chapter 11 petitions on
June 1, 2006, are:
Entity Case No.
------ --------
Orthodontic Centers of Hawaii, Inc. 06-10503
Orthodontic Centers of Iowa, Inc. 06-10504
Orthodontic Centers of Idaho, Inc. 06-10505
All governmental units have until 4:30 p.m. on Nov. 12, 2006, to
file their proofs of claim.
Creditors must file written proofs of claim on or before the
General or Governmental Bar Dates and those forms must be
received electronically, by mail, hand delivery, courier, or
overnight service to:
Clerk of the Bankruptcy Court
Eastern District of Louisiana
601 Hale Boggs Federal Building
501 Magazine Street
New Orleans, LA 70130
A claimant must file a proof of claim in each of the June
Debtor's bankruptcy case for which it asserts a claim against
that particular June Debtor.
Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices. The Debtor's client practices provide
treatment to patients throughout the United States and in Japan,
Mexico, Spain, Brazil and Puerto Rico.
The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No. 06-
10179). Three Debtors also filed for bankruptcy protection on
June 1, 2006 (Bankr. E.D. La. Case No. 06-10503). William H.
Patrick, III, Esq., at Heller Draper Hayden Patrick & Horn, LLC,
represents the Debtors. Patrick S. Garrity, Esq., and William
E. Steffes, Esq., at Steffes Vingiello & McKenzie LLC represent
the Official Committee of Unsecured Creditors. Carmen H.
Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B. Cheatham,
Esq., at Adams and Reese LLP represent the Official Committee of
Equity Security Holders. When the Debtors filed for protection
from their creditors, they listed US$545,220,000 in total assets
and US$196,337,000 in total debts.
=================================
T R I N I D A D & T O B A G O
=================================
DIGICEL LTD: Inks Partnership With Konka to Sell GSM Handsets
-------------------------------------------------------------
Digicel Ltd., formed a strategic partnership with Konka Group, a
television and mobile phone manufacturer in China, to sell
Konka's wide range of cutting-edge advanced GSM mobile handsets
across Digicel's twenty Caribbean markets.
Digicel is the first overseas partner for Konka and the
relationship marks the Chinese company's entrance into the
Caribbean market, one of the highest mobile growth regions in
the world. With a total population of 40 million, conservative
estimates expect the Caribbean market for mobile communications
to reach a subscriber base of 17.1 million, a 47% increase from
its current position of 11.6 million, according to EMC World
Cellular Database.
Digicel and Konka will work together to market a range of
cutting-edge handsets at competitive prices including the
"exclusive to Digicel" offer of the popular D163 slim phone with
MP3/MP4 playback and 1.3 pixel camera with flash and 4X digital
zoom. The Konka D163 was released in China in March 2006 and
Digicel expects to introduce this model to its Caribbean markets
this summer as well as launching an exciting new portfolio of
KONKA phones throughout the remainder of 2006. The relationship
with Konka began prior to December 2005 with the sale of their
two signature models the EC001 and the C926.
"We have been very impressed by the quality of the handsets and
the response from our customers across our markets particularly
in Haiti, Jamaica and the Eastern Caribbean," said David Hall,
CEO of Digicel Jamaica. "Konka is a quality brand, and we are
looking forward to a mutually beneficial relationship, where we
can offer our customers exclusive handsets at an even greater
range of prices to match their financial resources."
Konka's full range of Digicel handsets will be showcased at the
Jamaica Reggae Sunfest, the largest and most popular reggae
festival in the world held in Montego Bay, Jamaica in July 2006.
Konka is partnering with Digicel in sponsoring the festival this
year and both companies will mark the occasion with the launch
of a new handset model to the Jamaica mobile market.
According to Board Chairman Huang Zhongtian at Konka
Telecommunications, "We are very pleased with our partnership
with Digicel and our expansion into the Caribbean market, which
like China shares a position as one of the fastest growing
regions in terms of mobile penetration. Digicel's commitment to
providing it customers with affordable and innovative mobile
across the Caribbean makes them an ideal partner for KONKA as we
enter this new market. We look forward to a long and fruitful
partnership."
Konka Group Company, Ltd. is a global consumer electronics
manufacturer and among China's 100 largest enterprises and a
leading domestic brand. China ranks number one worldwide in the
production of:
-- televisions,
-- video cameras,
-- VCR players,
-- telephones,
-- electronic watches,
-- calculators,
-- refrigerators, and
-- air conditioners,
among other electronics. In addition to holding 25% of the
Chinese TV market, Konka estimates its brand will represent 10
percent of China's handset share in 2006 and the number one
mobile phone provider in the market.
With over US$1 billion invested in the Caribbean, Digicel is the
largest GSM operator in the region and one of the most admired
and leading brands. With its recent launch in Haiti in May
2006, Digicel sees tremendous potential growth for Konka phones
given the Country's low cellular penetration estimated at 3.4%
of the population.
About Konka Group
Konka Group Co., Ltd. -- http://www.konka.com/english/index.jsp/
-- established in 1980, is a leading enterprise of Chinese
electronic industry, and one of the major color TV manufacturers
in China. Konka is mainly engaged in the manufacturing of color
TV and mobile phones, as well as IT networking products,
electronic components and more. Konka has an annual output of
over 10 million TV sets, sold to over 90 countries and regions
around the world.
About Digicel Limited
Digicel Limited is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in 13 countries of the Caribbean
including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada,
Barbados, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
On Mar. 10, 2006, Fitch affirmed the 'B' rating of Digicel
Limited, senior unsecured debt, including the US$300 million
senior notes due 2012, following the announcement that it is in
the process of acquiring Bouygues Telecom Caraibe. Fitch said
the Outlook for the Ratings is Stable.
=============
U R U G U A Y
=============
ADMINISTRACION NACIONAL: Will Probe Deepwater Regions for Oil
-------------------------------------------------------------
Administracion Nacional de Combustibles, Alcohol y Portland,
Uruguay's national oil firm, will be probing the deepwater
regions of Uruguay's Pelotas and Punta del Este basins for
hydrocarbons reserves, Business News Americas reports.
Administracion Nacional is holding talks with Petroleo
Brasileiro and Ouro Preto -- a Brazilian university in Minas
Gerais, Brazil -- for the planned geological and geophysical
studies, according to BNamericas.
Hector Alvarez, the geology department head of Administracion
Nacional, told BNamericas that nothing has been decided yet.
The earlier studies carried out on the basins in 2004 by
Administracion Nacional, Repsol YPF and Petroleos Brasiliero,
confirmed the presence of structures that could contain
hydrocarbons, BNamericas states, citing Mr. Alvarez.
BNamericas relates that initial studies show that the structures
resemble to those of the West Africa's Orange basin, where huge
gas reserves were discovered.
Mr. Alvarez did not disclose to BNamericas when the partnership
would be finalized. However, he indicated that Administracion
Nacional and Petroleo Brasileiro could forge a partnership for
the exploration of the basins, depending on the study results.
About Petroleo Brasileiro
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953. The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.
About Administracion Nacional
Headquartered in Montevideo, Administracion Nacional de
Combustibles, Alcohol y Portland is the state-run oil, alcohol
and cement firm of Uruguay.
* * *
As reported in the Troubled Company Reporter on June 1, 2006,
Moody's Investors Service assigned a Ba2 global local currency
rating to Administracion Nacional de Combustibles, Alcohol y
Portland. Administracion Nacional was also assigned B1 foreign
currency issuer rating. The outlook on both ratings is stable.
BANCO HIPOTECARIO DEL URUGUAY: Posts UYU1.17 Bil. Jan-May Profit
----------------------------------------------------------------
Central bank figures show that Banco Hipotecario del Uruguay's
January-May 2006 profit decreased 34% to UYU1.17 billion,
compared with the same period in 2005.
Business News Americas states that the central bank posted these
results for Banco Hipotecario:
-- operating profit dropped 34% to UYU1.18 billion,
-- financial margin fell 47% to UYU830 million,
-- provisions increased 34% to UYU472 million,
-- mortgage loans rose 2.7% to UYU17.1 billion,
-- past-due loans was 68% of the total loans, virtually
unchanged compared to the same time in 2005,
-- liabilities including deposits increased 1.6% to UYU31.1
billion pesos, and
-- assets dropped 6% to UYU32.9 billion.
As reported in the Troubled Company Reporter on April 5, 2006,
BHU unveiled a restructuring plan that would allow it to return
to lending in the second half of this year.
According to BNamericas, Banco Hipotecario's loan operations
have been suspended since 2002. However, the bank can grant
mortgage loans to fund already-built houses.
BNamericas reports that the plan, which considers forming a new
unit to manage the bank's past-due loans and cutting operating
costs, was met with fierce resistance from Association of Bank
Employees of Uruguay, Uruguay's powerful banking union, fearing
that the cost-cutting program would lead to lay-offs.
Reports say the restructuring plan calls for a minimum US$168
million capitalization. However, the International Monetary
Fund believes the Uruguayan government would need an additional
US$400 million to capitalize Banco Hipotecario.
"BHU not only needs capital but also to rearrange the bank's
whole management to ensure past mistakes will not be repeated.
This does not necessarily mean the bank will have to operate in
the same way as a private one, but BHU does need to find
sustainability," Teresa Stok, an associate analyst at Moody's
Ratings Services in Argentina, told BNamericas.
* * *
Standard & Poor's Ratings Services assigned Baa2 rating on Banco
Hipotecario del Uruguay's local currency long-term bank deposits
on May 2, 2005. On April 30, 2004, the bank was assigned an E
bank financial strength rating and an NP on its short-term bank
deposits.
PETROLEO BRASILEIRO: In Talks with Uruguay Firm to Explore Oil
--------------------------------------------------------------
Brazilian state-run Petroleo Brasileiro, along with Minas
Gerais' Ouro Preto university, is talking with Administracion
Nacional de Combustibles, Alcohol y Portland, for the
exploration of Uruguay's Pelotas and Punta del Este basins,
Business News Americas reports.
Administracion Nacional, Petroleo Brasileiro and Ouro Preto are
planning to conduct geological and geophysical studies on the
basins, according to BNamericas.
Hector Alvarez, the geology department head of Administracion
Nacional, told BNamericas that nothing has been decided yet.
The earlier studies carried out on the basins in 2004 by
Administracion Nacional, Repsol YPF and Petroleos Brasiliero,
confirmed the presence of structures that could contain
hydrocarbons, BNamericas states, citing Mr. Alvarez.
BNamericas relates that initial studies show that the structures
resemble to those of the West Africa's Orange basin, where huge
gas reserves were discovered.
Mr. Alvarez did not disclose to BNamericas when the partnership
would be finalized. However, he indicated that Administracion
Nacional and Petroleo Brasileiro could forge a partnership for
the exploration of the basins, depending on the study results.
Headquartered in Montevideo, Administracion Nacional de
Combustibles, Alcohol y Portland is the state-run oil, alcohol
and cement firm of Uruguay.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953. The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.
* * *
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's and its foreign currency long-term debt is
rated BB by Fitch.
* * *
Fitch assigned these ratings on Petroleo Brasileiro's senior
unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Begins Pipeline Works Joining Colombia
--------------------------------------------------------------
Venezuelan President Hugo Chavez and his Colombian counterpart
Alvaro Uribe will meet on July 8 in a ceremony that will mark
the beginning of the construction of a gas pipeline project
between the two nations, El Universal quoted a source from
Venezuela's Foreign Ministry.
The 230-km pipeline's cost estimated at US$280 million will be
funded by state oil firm Petroleos de Venezuela SA, El Universal
says.
Corporate managers quoted by El Universal said that the gas
pipeline will be operational in a year's time. During the first
seven years, the pipeline will transport gas to west Venezuela.
Afterwards, gas will be exported to Colombia.
Petroleos de Venezuela SA is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and
coal industry, as well as planning, coordinating, supervising
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
* * *
On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'. The rating of PDVSA's export receivable future
flow securitization, PDVSA Finance Ltd, was also upgraded to
'BB+' from 'BB'. In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating. Fitch said the Rating Outlook
is Stable. Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.
PETROLEOS DE VENEZUELA: Exxon Returns 500,000 Barrels of Oil
------------------------------------------------------------
ExxonMobil returned to Venezuela on June 17 and 18 about 500,000
barrels of synthetic extra-heavy oil. The barrels of oil were
drilled from its Cerro Negro operations and are already in Santa
Lucia in the Caribbean, El Universal reports, citing Reuters.
Cerro Negro is a partnership organized by ExxonMobil, BP Plc and
Petroleos de Venezuela, to upgrade extra-heavy oil in the
Orinoco region and make it a lighter synthetic.
Exxon did not give the reason for the return, El Universal says.
ExxonMobil -- http://exxonmobil.com--explores and produces oil
and gas industry, and manufactures and markets fuels, lubes and
chemicals.
Petroleos de Venezuela SA is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and
coal industry, as well as planning, coordinating, supervising
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
* * *
On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. to 'BB-' from
'B+'. The rating of PDVSA's export receivable future flow
securitization, PDVSA Finance Ltd, was also upgraded to 'BB+'
from 'BB'. In addition, Fitch has assigned PDVSA a 'AAA(ven)'
national scale rating. Fitch said the Rating Outlook is Stable.
Both rating actions followed Fitch's November 2005 upgrade of
Venezuela's sovereign rating.
PETROLEOS DE VENEZUELA: Will Refine Oil from Former Oxy Fields
--------------------------------------------------------------
Petroleos de Venezuela SA intends to refine 75% of the 100,000
barrels of oil per day that Occidental Petroleum exported from
Ecuador, El Universal reports, citing AFP.
"On Tuesday, the committee will come up with real figures on the
advantages of a likely negotiation (to refine 75,000 bpd of oil
in Venezuela," said a senior official with Ecuadorian state oil
firm Petroecuador who requested anonymity, El Universal relates.
Petroecuador, Ecuador's state oil firm, said that Petroleos de
Venezuela will process the same number of barrels of oil that
Occidental Petroleum used to process before its operating
contract was terminated in May.
About Petroleos de Venezuela
Petroleos de Venezuela SA is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and
coal industry, as well as planning, coordinating, supervising
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
On Jan. 23, 2005, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'. The rating of PDVSA's export receivable
future flow securitization, PDVSA Finance Ltd, was also upgraded
to 'BB+' from 'BB'. In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating. Fitch said the Rating Outlook
is Stable. Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.
About Petroecuador
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash if
Petroecuador won't be efficient and transparent in its accounts.
* VENEZUELA: President Orders Introduction of New Currency
----------------------------------------------------------
Venezuelan President Hugo Chavez has asked the country's central
bank and congress to change the national currency by removing
three zeroes off the exchange value. The new currency will be
renamed "nuevo bolivar" and will be introduced on Jan. 1, 2008.
Experts quoted by the Financial Times said that the change is
intended to:
-- help reduce inflation and
-- simplify accounting for the government, businesses and
consumers.
The bolivar currently trade at a fixed official rate of VEB2,150
to a dollar.
According to FT, the removal of several zeros from the value of
a currency has been a component of a wider policy aimed at
stopping hyperinflation. Venezuela currently has the fastest
rate of inflation in the region.
Rodrigo Cabezas, the head of the National Assembly's finance
commission, told FT, "The central bank must prepare for this
monetary reform, whose almost sole objective is to defeat
inflation once and for all."
However, experts told FT that the impact of the measure would be
more symbolic than economic. They suspect that the measure has
more to do with the sort of patriotic symbolism favored by
President Chavez.
Meanwhile, economists say that a new currency without fiscal
policy overhaul is useless. The current administration has
managed to increase expenditure parallel to earnings from oil
exports.
"A new currency could end up being the crowning moment of a
period of reckless fiscal expansion and extra-budgetary
spending," Orlando Ochoa, an independent economic consultant in
Caracas told the FT. "What Ch vez really wants to do is to see
his historical heroes printed on a new currency for his regime,"
he added.
In the past three years, President Chavez has revamped several
national symbols, including the country's flag, the FT says.
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* VENEZUELA: Trade with Panama Placed at US$1 Bil. by Year-End
--------------------------------------------------------------
Venezuela's trade relations with Panama would increase to US$1
billion by the end of the year, Prensa Latina reports.
Prensa Latina relates that Panama expects trade with Venezuela
to advance with Venezuelan President Hugo Chavez' visit today.
Panama's President Martin Torrijos is expected to sign with
President Chavez cooperation accords in energy and investment,
says 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
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Copyright 2006. All rights reserved. ISSN 1529-2746.
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