/raid1/www/Hosts/bankrupt/TCRLA_Public/060629.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 29, 2006, Vol. 7, Issue 128
Headlines
A R G E N T I N A
BANCO RIO: Expects Car Loans to Increase to ARS250 Mil. in 2006
BETTERWARE DE ARGENTINA: Claims Verification Will End on Sept. 1
BIDWELL SA: Last Day for Verification of Claims Is on Sept. 6
COMPANIA POLIBEL: Trustee Will Verify Claims Until Sept. 15
FIDEICOMISOS FINANCIERO APEX: Fitch Arg Rates US$300K Debt BB
FIDEICOMISO FINANCIERO APEX: Fitch Arg Rates US$400K Debt BB-
FIDEICOMISO FINANCIERO AVAL: Moody's LatAm Puts B2 Local Rating
FIDEICOMISOS FINANCIEROS TGN: Fitch Arg Rates US$175M Debt D
FIDEICOMISO TARJETA: Moody's LatAm Rates Class A Loans at B1
FIDUGRARIA SA: Seeks Court Approval to Reorganize Business
INDUSTRIAS GUTTLER: Sets Sept. 8 as Claims Verification Deadline
PROPULSION MARINA: Trustee Will Verify Claims Until Aug. 7
MAPRO SRL: Claims Verification Deadline Is Set for Sept. 11
METROGRAS SA: S&P Argentina Puts D Rating on US$600-Mil. Notes
REDLOJO ENTERTAINMENT: Claims Verification Will End on Sept. 5
REPSOL YPF: Will Sell Fuel Valued at US$160 Million to Cammesa
SINDICATO DE OBREROS: Trustee Has Until July 25 to Verify Claims
TIMARU SA: Verification of Proofs of Claim Will End on Sept. 6
B A H A M A S
WINN-DIXIE: Court Okays Smith & Hulsey's Continued Retention
B A R B A D O S
INTERPOOL INC: S&P Affirms BB Corporate Credit Rating
B E L I Z E
* BELIZE: Inks Partial Trade Accords with Guatemala
B O L I V I A
* BOLIVIA: Inks US$50-Million Accord with German Technical Firm
* BOLIVIA: Nationalization Indirectly Hits Chile's Gas Supply
B R A Z I L
BANCO ITAU: In Talks with TecBan for ATM Network Access
ST. MARYS: Parent's Restructuring Prompts Moody's Ba3 Rating
VARIG SA: TAM SA & GOL Call for Distribution of Domestic Routes
VARIG S.A.: Willis Wants Judgment on Nine Leased Engines
C A Y M A N I S L A N D S
DB FOG: Proofs of Claim Filing Deadline Is Set for July 21
DB HOK: Last Day to File Proofs of Claim Is on July 21
DB TAP: Sets July 21 as Last Day to File Proofs of Claim
DESERT (FINANCE): Proofs of Claim Filing Deadline Is on July 21
DESERT (FUNDING): Filing of Proofs of Claim Will End on July 21
DL CHINA: Last Day to File Proofs of Claim Is on July 13
FAIRFIELD MASTER: Holds Final Shareholders Meeting on July 10
FAIRFIELD SAXO: Liquidator Presents Wind Up Accounts on July 10
HARTVILLE GROUP: March 31 Balance Sheet Upside-Down by US$4 Mil.
LATIN AMERICAN SMALL: Proofs of Claim Filing Ends on July 10
NEW STRATUS: Sets July 21 Deadline for Proofs of Claim Filing
RSG DISCRETIONARY: Declares Voluntary Liquidation of Business
RSG EQUITY: Shareholders Place Company in Voluntary Liquidation
RSG EVENT: Shareholders Declare Company's Voluntary Liquidation
RSG FIXED: Shareholders Place Business in Voluntary Liquidation
SOGASIA: Creditors Have Until July 19 to File Proofs of Claim
UNIQUE LATIN: Creditors Must Submit Proofs of Claim by July 17
C H I L E
ENDESA CHILE: Begins Environmental Studies on Aysen Project
ENDESA CHILE: Says Canela Wind Park Will Generate 9.9MW to SIC
C O L O M B I A
ECOPETROL: Sues Occidental Petroleum for Environmental Damages
* COLOMBIA: Accepting Bids for Landfill Operation Concession
* COLOMBIA: Power Demand Increases 4.3% to 4,287GWh in May
C O S T A R I C A
* COSTA RICA: May Face Another Gasoline Price Hike
* COSTA RICA: Moody's Revises Ba1 Ratings Outlook to Stable
C U B A
* CUBA: Solcar Forms Consortium with Instituto Autonomo
D O M I N I C A N R E P U B L I C
TRICOM SA: Lowers Price of US Calls to DOP0.95 Per Minute
E C U A D O R
PETROECUADOR: Will Auction Crude from Block 15 on June 29
G R E N A D A
* GRENADA: Inks Oil Supply Pact with Petroleos de Venezuela Unit
G U A T E M A L A
* GUATEMALA: Inks Partial Trade Accords with Belize
H O N D U R A S
* HONDURAS: State Firm Starts Fighting Power Theft
J A M A I C A
KAISER ALUMINUM: Wants Asbestos Escrow Funds Returned
M E X I C O
EL POLLO: Extends Expiration on Tender Offer to July 27, 2006
EMPRESAS ICA: Unit Inks 20-Yr. Concession to Modernize Highway
GENERAL MOTORS: S&P Retains Negative Watch Despite Buyout Plan
MERIDIAN AUTO: Files Compendium to First Amended Joint Plan
MERIDIAN AUTO: Projected Data Underpinning 1st Amended Plan
PORTRAIT CORP: Eisner LLP Raises Going Concern Doubt
N I C A R A G U A
* NICARAGUA: Inks Geothermal Development Accord with Iceland
P A N A M A
* PANAMA: Inks Free Trade Accord with Chile
P U E R T O R I C O
ADELPHIA COMMUNICATIONS: Files Modified Plan of Reorganization
U R U G U A Y
* URUGUAY: Wants to Broaden Bilateral Relations with Chile
V E N E Z U E L A
CITGO PETROLEUM: Borrows Crude from Strategic Petroleum Reserve
CITGO PETROLEUM: May be Fined Over Oil Spill in Lake Charles
ELECTRICIDAD DE CARACAS: Issuing 80,781,982 Common Shares
PETROLEOS DE VENEZUELA: Creates US$100 Million Reserve Fund
PETROLEOS DE VENEZUELA: Will Supply Fuel Oil to Cammesa
* VENEZUELA: Director Says Country Not Ready for Monetary Reform
* VENEZUELA: State Railway Firm Forms Consortium with Solcar
- - - - -
=================
A R G E N T I N A
=================
BANCO RIO: Expects Car Loans to Increase to ARS250 Mil. in 2006
---------------------------------------------------------------
A Banco Rio de la Plata executive told Business News Americas
that the bank expects car loans to increase 90% to ARS250
million this year.
BNamericas relates that the increasing demand for auto loans as
well as a steady rise in new car sales will boost the segment in
2006 and in 2007. Demand would come mainly from:
-- Buenos Aires,
-- Cordoba,
-- Santa Fe, and
-- Mendoza.
Gustavo Massaro, the product manager of Banco Rio, told
BNamericas that the bank expects to grant about ARS320 million
in 2007.
A study conducted by Banco Rio shows that the average value of
car loans in Argentina increased 21% to ARS16,636 in the
January-May period in 2006 compared with the same period in
2005, BNamericas states.
The loans are for an average of 45 months, Banco Rio told
BNamericas.
Headquartered in Buenos Aires, Argentina, Banco Rio de la Plata
is an Argentinean private bank providing a range of financial
services, including retail, corporate, and merchant banking,
insurance, credit cards and fund management, to individuals,
companies of all sizes, financial institutions and the public
sector (both provincial and national). The company has a
network of approximately 280 branches and employs over 5,000
serving over 1 million customers. It is part of the Latin
American franchise of Banco Santander Central Hispano, which
holds over 80% of the bank's share capital.
* * *
Moody's Investor Service assigns Caa1 ratings to Banco Rio de la
Plata's Issuer Rating and Long-Term Bank Deposits.
* * *
As reported in the Troubled Company Reporter on May 17, 2006,
Fitch Ratings affirmed these ratings of Banco Rio de la
Plata:
-- Individual 'E'; and
-- Support '5'.
BETTERWARE DE ARGENTINA: Claims Verification Will End on Sept. 1
----------------------------------------------------------------
Raul Horacio Trejo, the court-appointed trustee for Betterware
de Argentina S.A.'s bankruptcy proceeding, will verify proofs of
claim until Sept. 1, 2006.
Creditors who fail to submit the required documents won't
receive any post-liquidation distribution.
The verified claims will be submitted in court as individual
reports on Oct. 13, 2006. A general report that contains an
audit of Betterware de Argentina's accounting and banking
records will follow on Nov. 27, 2006.
The debtor can be reached at:
Betterware de Argentina S.A.
Bernardo de Irigoyen 330
Buenos Aires, Argentina
The trustee can be reached at:
Raul Horacio Trejo
Avenida Corrientes 818
Buenos Aires, Argentina
BIDWELL SA: Last Day for Verification of Claims Is on Sept. 6
-------------------------------------------------------------
Aldo Bassagaistegy, the court-appointed trustee for Bidwell
S.A.'s liquidation case, will verify proofs of claim until
Sept. 6, 2006.
Creditors who fail to present the required documents won't
receive anty post-liquidation distribution.
Court No. 18 in Buenos Aires declared Bidwell bankrupt at the
request of Compania Teensun S.A., which it owes US$117,000.
Clerk No. 36 assists the court on the case.
The debtor can be reached at:
Bidwell S.A.
Junin 237
Buenos Aires, Argentina
The trustee can be reached at:
Aldo Bassagaistegy
Avenida Presidente Roque Saenz Pena 1134
Buenos Aires, Argentina
COMPANIA POLIBEL: Trustee Will Verify Claims Until Sept. 15
-----------------------------------------------------------
Patricia Beatriz Rovelli, the court-appointed trustee for the
reorganization proceeding of Compania Polibel S.A., will verify
creditors' proofs of claim until Sept. 15, 2006.
Ms. Rovelli will present in court individual reports and a
general report that contains an audit of Compania Polibel's
accounting and banking records after the claims are verified.
The reports' submission dates are yet to be disclosed.
Compania Polibel will present a settlement plan to its creditors
during an informative assembly on March 26, 2007.
Court No. 7 approved Compania Polibel's petition to reorganize
after it has defaulted on its obligations.
Clerk No. 13 assists the court in this case.
The debtor can be reached at:
Compania Polibel S.A.
Guayra 1821
Buenos Aires, Argentina
The trustee can be reached at:
Patricia Beatriz Rovelli
Cordoba 1540
Buenos Aires, Argentina
FIDEICOMISOS FINANCIERO APEX: Fitch Arg Rates US$300K Debt BB
-------------------------------------------------------------
Fideicomisos Financiero APEX I's two debts are rated by the
Argentine arm of Fitch Ratings:
-- Valores de Deuda Fiduciaria Clase B for up to US$300,000
* Rate: BB (arg)
-- Valores de Deuda Fiduciaria Clase A for up to U$350,000
* Rate: BBB (arg)
FIDEICOMISO FINANCIERO APEX: Fitch Arg Rates US$400K Debt BB-
-------------------------------------------------------------
Fideicomiso Financiero APEX II's two debts are rated by the
Argentine arm of Fitch Ratings:
-- Valores de Deuda Fiduciaria Clase A for up to U$750,000
* Rate: BBB (arg)
-- Valores de Deuda Fiduciaria Clase B for up to U$400,000
* Rate: BB- (arg)
FIDEICOMISO FINANCIERO AVAL: Moody's LatAm Puts B2 Local Rating
---------------------------------------------------------------
Moody's Latin America has assigned a national scale rating of
A1.ar and a global local currency rating of B2 to the debt
securities of Fideicomiso Financiero Aval Rural II, issued by
Banco de Valores S.A. -- acting solely in its capacity as Issuer
and Trustee.
The rated securities are backed by a pool of bills of exchange
signed by agricultural producers in Argentina. Aval Rural
S.G.R., which is a financial guarantor in Argentina, guarantees
the bills of exchange. Aval Rural S.G.R. has a national scale
rating of A1.ar and global local currency rating of B2.
The rating assigned to this transaction is primarily based on
the rating of Aval Rural. Therefore, any future change in the
rating of the guarantor may lead to a change in the rating
assigned to this transaction. The rating addresses the payment
of interest and principal on the legal final maturity date of
the securities.
Structure
Banco de Valores S.A. (Issuer and Trustee) issued one class of
debt securities denominated in Argentine pesos. The rated
securities will bear a 7.25% annual interest rate.
The rated securities will be repaid from cash flow arising from
the assets of the Trust, constituted by a pool of fixed rate
bills of exchange denominated in US dollars signed by
agricultural producers and guaranteed by Aval Rural S.G.R. The
bills of exchange will bear the same interest rate as the rated
securities.
Although the rated securities (and the bills of exchange) are
denominated in US dollars, they are payable in Argentine pesos
at the exchange rate published by Banco de la Nacion Argentina
as of the day prior to the date that the funds are initially
deposited into the Trust account. As a result, the dollar is
used as a currency of reference and not as a mean of payment.
For that reason, the transaction is considered to be denominated
in local currency.
If, eight days before the final maturity date, the funds on
deposit in the trust account are not sufficient to make payments
to investors, the Trustee is obligated to request Aval Rural to
make payment under the bills of exchange. Aval Rural, in turn,
will have five days to make this payment into the trust account.
Under the terms of the transaction documents, the trustee has up
to two days to distribute interest and principal payments to
investors. Interest on the securities will accrue up to the
date on which the funds are initially deposited by either Aval
Rural, the exporter, or the individual producers into the Trust
account.
Rating Action
US$3,430,000 in Fixed Rate Debt Securities of "Fideicomiso
Financiero Aval Rural II", rated A1.ar in the Argentine National
Scale and B2 in the Global Local Currency Scale.
Fideicomiso Financiero Aval Rural II
-- VRD, Assigned B2
FIDEICOMISOS FINANCIEROS TGN: Fitch Arg Rates US$175M Debt D
------------------------------------------------------------
Fideicomisos Financieros TGN CRIBs Clase I's Titulos de Deuda
for US$175 million is rated D by the Argentine arm of Fitch
Ratings.
FIDEICOMISO TARJETA: Moody's LatAm Rates Class A Loans at B1
------------------------------------------------------------
Moody's Latin America has assigned a Aa2.ar national scale
rating and a B1 global local currency rating to the Class A Debt
Securities or VDF of Fideicomiso Financiero Tarjeta Privada III,
issued by Banco de Valores S.A., acting solely in its capacity
as trustee.
The securities are backed by a pool of credit card receivables
originated by Banco Privado de Inversiones S.A. aka BPI located
in Argentina. Interest and principal on the VDFA are payable
from the cash flow of the credit card receivables.
The ratings assigned are based on these factors:
-- credit quality of the securitized pool;
-- credit enhancement provided through the 22% initial
subordination level;
-- ability of Banco Macro Bansud to act as backup servicer
in the transaction;
-- availability of several reserve funds; and
-- legal structure of the transaction.
Structure
Banco de Valores S.A. (Issuer and Trustee) issued one class of
peso-denominated, floating-rate bonds or VDF and a residual
certificate (not rated), all of them backed by a pool of credit
card receivables originated by BPI. The VDF original balance is
equal to 78% of the original issuance amount. The transaction
has an expected maturity of 12 months.
At closing, the VDFA were backed by credit card outstanding
balances generated by eligible accounts. The ownership of those
accounts remains with the originator but the receivables are
assigned to the trust. The transaction has five reserve funds:
-- expense fund,
-- liquidity reserve fund,
-- backup servicer replacement fund,
-- sinking funds for interest and
-- sinking fund principal.
During the first six months after closing, only interest is paid
monthly to VDF investors. The VDF will bear a floating interest
rate (CER + 200bps) with a minimum rate of 13% and a maximum
rate of 19%. If an early amortization event occurs, the
revolving period will terminate automatically.
The principal and yield on the Argentine credit card receivables
to be purchased by the trust will be discounted by using the
VDF's coupon rate. By discounting at the VDFA coupon on a
weekly basis, investors are subject to a possible interest rate
mismatch if an early amortization event occurs. However, this
risk is mitigated by the pool's high projected payment rate,
which under normal scenarios allows the deal to fully pay off in
approximately two months, and by a liquidity reserve fund funded
at closing with 1.5 times the next interest payment, available
to investors in case there is a liquidity shortfall.
Beginning in the seventh month after closing, scheduled interest
and principal will be paid in that order, on each payment date.
Principal is scheduled to be paid in six monthly installments.
If the scheduled principal is not paid on time, it will not
constitute an event of default under the terms of the
transaction documents, given that the promise to investors is to
receive ultimate principal before the legal final maturity date.
Purchases of receivables will take place at the end of every
week during the life of the transaction. Interest and the
principal reserves must be funded before new receivables can be
purchased.
During the revolving period, collections will not be transferred
to the trust account but there will be an offset between the
collections to be submitted and the new receivables assigned to
the trust. This procedure was established to minimize trust
expenses.
Seller and Servicer
BPI is the seller of the receivables and the primary servicer of
the transaction. The bank was founded in 1993 to provide
financial services to the middle-high and high-income segment of
the market. In 1996, BPI began issuing MasterCard and Visa
credit cards to its customers.
Banco Macro Bansud S.A. is the designated backup servicer. If a
servicer replacement trigger is hit, the trustee is obligated to
immediately notify Banco Macro Bansud and Visa and MasterCard.
The trustee, who receives pool and borrower data from the
servicer on a monthly basis, will transfer this information to
the backup servicer. In addition, Visa and MasterCard also will
have duplicate data that they can transfer to Banco Macro
Bansud, if necessary. Given that Banco Macro Bansud is a member
of the Visa and MasterCard system, the transfer of data should
be straightforward.
Banco Macro Bansud will be entitled to receive this information
as the new owner of the accounts according to the conditional
assignment contract that will become effective if a servicer
replacement trigger is hit. Thus, even if BPI loses access to
the Visa and MasterCard system because of the change in account
ownership, BPI credit card customers will not have their credit
lines suspended.
The servicer will transfer collections to the trust account on a
weekly basis. As a result, there is one week of commingling
risk at the originator/servicer level which may affect the deal
should the originator/servicer enter into a reorganization
procedure. This risk is mitigated by the ability of Banco Macro
Bansud, once it is appointed as backup servicer, to service the
receivables, and by the servicer replacement reserve account
that will be funded at closing with 0.5 times the next interest
payment.
Credit Enhancement
Moody's considered the level of credit enhancement provided in
this transaction through subordination, as well as the
historical performance of BPI's pools. In addition, Moody's
considered factors common to all credit card securitizations
such as monthly principal payment rate, charge offs,
delinquencies, attrition and dilution.
The factors mentioned above are simulated in stress situations,
based on the variability that they have shown in the past and on
stress scenarios consistent with the rating levels assigned.
Besides these factors, Moody's also considered specific factors
related to the Argentine market, such as the probability of a
decrease of the monthly payment rate and changes in the
macroeconomic scenario.
Rating Action
Originator: Banco Privado de Inversiones S.A.
-- US$20 Million Pesos in Floating Rate Securities of
"Fideicomiso Financiero Tarjeta Privada III", VDF
rated Aa2.ar
Issuer: Fideicomiso Financiero Tarjeta Privada III
-- VDFA, Assigned B1
FIDUGRARIA SA: Seeks Court Approval to Reorganize Business
----------------------------------------------------------
Fidugraria S.A., a company operating in Buenos Aires, has
requested to reorganize its business after failing to pay its
liabilities.
The petition, once approved by the court, will allow Fidugraria
to negotiate a settlement with its creditors in order to avoid a
straight liquidation.
The debtor can be reached at:
Fidugraria S.A.
Cordoba 836
Buenos Aires, Argentina
INDUSTRIAS GUTTLER: Sets Sept. 8 as Claims Verification Deadline
----------------------------------------------------------------
The verification of creditors' proofs of claim against
Industrias Guttler S.R.L. will end on Sept. 8, 2006. Clara
Aurhan is the court-appointed trustee who will verify the
claims.
Creditors who fail to submit the required documents won't
receive any post-liquidation distribution.
Court No. 6 in Buenos Aires declared Industrias Guttler bankrupt
at the behest of Promecio S.A., which it owes US$22,502.32.
Clerk No. 11 assists the court on the case.
The debtor can be reached at:
Industrias Guttler S.R.L.
Rivadavia 6066
Buenos Aires, Argentina
The trustee can be reached at:
Clara Aurhan
Uruguay 872
Buenos Aires, Argentina
PROPULSION MARINA: Trustee Will Verify Claims Until Aug. 7
----------------------------------------------------------
Nestor Rodolfo del Potro, the court-appointed trustee for the
bankruptcy proceeding of Propulsion Marina S.R.L., will verify
creditors' proofs of claim until Aug. 7, 2006. Creditors who
fail to submit the required claims won't receive any post-
liquidation distribution.
Mr. Del Potro will submit in court individual reports based on
the validated claims on Sept. 19, 2006, and a general report
that contains a summary of events on the proceeding on
Nov. 1, 2006.
The debtor can be reached at:
Propulsion Marina S.R.L.
Avenida Belgrano 829
Buenos Aires, Argentina
The trustee can be reached at:
Nestor Rodolfo del Potro
Avenida Corrientes 1291
Buenos Aires, Argentina
MAPRO SRL: Claims Verification Deadline Is Set for Sept. 11
-----------------------------------------------------------
Ignacio Kaczer, the court-appointed trustee for the bankruptcy
case of Mapro S.R.L., will verify creditors' proofs of claim
until Sept. 11, 2006. Creditors who fail to submit the required
documents won't receive any post-liquidation distribution.
Court No. 11 in Buenos Aires declared Mapro S.R.L. bankrupt at
the behest of Union Obreros y Empleados Plasticos, which it owes
US$2,796.
Clerk No. 11 assists the court in the case.
The debtor can be reached at:
Mapro S.R.L.
Gallo 1650
Buenos Aires, Argentina
The trustee can be reached at:
Ignacio Kaczer
Avenida Callao 441
Buenos Aires, Argentina
METROGRAS SA: S&P Argentina Puts D Rating on US$600-Mil. Notes
--------------------------------------------------------------
The Argentine arm of Standard & Poor's assigned these ratings on
Metrogas S.A.'s four debts:
-- Program of Obligaciones Negociables for US$600 million
* Rate: raD
* Date of balance: Mar. 31, 2006
-- Obligaciones Negociables
i) Serie 2-A for US$6,254,764
* Rate: raBB
* Date of balance: Mar. 31, 2006
ii) Serie 2-B for EUR26,070,450
* Rate: raBB
* Date of balance: Mar. 31, 2006
iii) Serie 1 for US$236,285,638
* Rate: raBB
* Date of balance: Mar. 31, 2006
Headquartered in Buenos Aires, Argentina, MetroGAS S.A. --
http://www.metrogas.com.ar/-- distributes gas to Buenos Aires
and southern and eastern greater metropolitan Buenos Aires. The
Company has a 35-year concession that began in 1992 to provide
natural gas in this area. The concession is renewable for an
additional 10 years. MetroGAS supplies some 2 million customers
in Buenos Aires through 15,840 km of pipelines, representing
about 26% of all gas retailed in Argentina.
REDLOJO ENTERTAINMENT: Claims Verification Will End on Sept. 5
--------------------------------------------------------------
Mariela Adriana Bellani, the court-appointed trustee overseeing
Redlojo Entertainment S.A.'s reorganization proceeding, will
verify creditors' proofs of claim until Sept. 5, 2006.
The validated claims will be presented in court as individual
reports on Oct. 17, 2006. A general report that contains an
audit of Redlojo Entertainment's accounting and banking records
will follow on Nov. 28, 2006.
An informative assembly is scheduled on June 11, 2007, where a
settlement proposal is presented to Redlojo Entertainment's
creditors for approval.
Clerk No. 12 assists the court on this case.
The debtor can be reached at:
Redlojo Entertainment S.A.
Avenida Santa Fe 830
Buenos Aires, Argentina
The trustee can be reached at:
Mariela Adriana Bellani
Marcelo T. de Alvear 1364
Buenos Aires, Argentina
REPSOL YPF: Will Sell Fuel Valued at US$160 Million to Cammesa
--------------------------------------------------------------
Repsol YPF will sell 600,000 tons of fuel oil valued at US$160
million to Cammesa, the wholesale power market administrator in
Argentina, Cronista reports.
According to Cronista, Repsol will supply oil to Cammesa from
July 2006 to April 2007 for power generation.
Business News Americas relates that Argentina has turned to fuel
oil as a substitute to natural gas, which experienced a
shortfall, for its generation park. Fuel oil is less efficient
and dirtier substitute compared to natural gas.
Cronista says that Repsol's La Plata refinery will produce the
oil to cover 40% of demand while Venezuela's state-run Petroleos
de Venezuela will supply the other 60%, or 900,000 tonnes,
continuing the supplies it started offering Argentina in 2004.
Petroleos de Venezuela charges up to US$6 per barrel more than
Repsol, but it offers long-term funding, Cronista relates.
Reports say that Repsol offered the New York reference price
minus US$2.30 a barrel.
Argentina spent about US$280 million on fuel oil last year.
This year, the country is expected to spend about US$390
million, BNamericas reports.
* * *
On June 20, 2005, Moody's Investors Service upgraded the ratings
of Spanish-Argentine oil company Repsol YPF's local subsidiary
YPF S.A. Moody's upgraded YPF's senior unsecured rating to Ba3
from B1 and the unit's domestic currency issuer rating to Baa2
from Baa3.
YPF's foreign currency issuer rating of Caa1 remained unchanged,
as it is constrained by the sovereign ceiling of Argentina.
YPF's Corporate Family Rating (formerly known as the senior
implied rating) is aligned with the foreign currency issuer
rating at Caa1.
SINDICATO DE OBREROS: Trustee Has Until July 25 to Verify Claims
----------------------------------------------------------------
Court-appointed trustee Rafael Sanchis has until July 25, 2006,
to verify creditors' proofs of claim against Sindicato de
Obreros y Empleados de la Industria Frigorifica de Tucuman, a
company under reorganization.
Mr. Sanchis will submit in court individual reports based on the
verified claims and a general report that contains and audit of
Sindicato de Obreros' accounting and banking records. The dates
of submission of these reports are yet to be disclosed.
An informative assembly is yet to be scheduled for the creditors
to cast their votes on a settlement plan that Sindicato de
Obreros will lay on the table.
A court in San Miguel de Tucuman handles the proceeding.
The debtor can be reached at:
Sindicato de Obreros y Empleados de la Industria
Frigorifica de Tucuman
San Luis 557, San Miguel de Tucuman
Tucuman, Argentina
The trustee can be reached at:
Rafael Sanchis
Ayacucho 73, San Miguel de Tucuman
Tucuman, Argentina
TIMARU SA: Verification of Proofs of Claim Will End on Sept. 6
--------------------------------------------------------------
Jorge Guillermo Podesta, the court-appointed trustee overseeing
Timaru S.A.'s reorganization case, will verify proofs of claim
until Sept. 6, 2006.
Mr. Podesta will submit in court individual reports and a
general report that contains an audit of Timaru's accounting and
banking records after the claims are verified. The submission
dates of these reports are yet to be disclosed.
Timaru will endorse its settlement proposal, drafted from the
submitted claims, for approval by the creditors during the
informative assembly on Sept. 24, 2007.
Court No. 2 in Buenos Aires approved Timaru's petition to
reorganize its business after it has defaulted on its
obligations. Under insolvency protection, the company will
continue to manage its assets subject to certain conditions
imposed by Argentine law and the oversight of a court-appointed
trustee.
Clerk No. 4 assists the court in the proceeding.
The debtor can be reached at:
Timaru S.A.
Honorio Pueyrredon 364
Buenos Aires, Argentina
The trustee can be reached at:
Jorge Guillermo Podesta
Reconquista 336
Buenos Aires, Argentina
=============
B A H A M A S
=============
WINN-DIXIE: Court Okays Smith & Hulsey's Continued Retention
------------------------------------------------------------
Smith Hulsey & Busey wants to employ David L. Gay, Esq., as an
associate lawyer who will render services to the Debtors in
their Chapter 11 cases.
Mr. Gay is a member of the Florida Bar and was employed by the
law firm of Held & Israel from August 1, 2005, to May 11, 2006.
Held & Israel represents several creditors in the Debtors'
Chapter 11 cases.
Mr. Gay has represented to Smith Hulsey that he did not acquire
and does not have any information protected by Rule 4-1.6 and
4-1.9(b) of the Rules Regulating The Florida Bar.
Thus, Smith Hulsey contends that if it were to employ Mr. Gay,
it would remain disinterested within the meaning of Section
327(a) of the Bankruptcy Code because there is no actual
conflict of interest.
Winn-Dixie Stores, Inc., and its debtor-affiliates sought
authority from the U.S. Bankruptcy Court for the Middle District
of Florida to continue Smith Hulsey & Busey's employment as
their co-counsel in the event Mr. Gay is employed as an
associate of Smith Hulsey and renders services to the Debtors in
their Chapter 11 cases.
The Court approves the Debtors' application.
Judge Funk prohibits Mr. Gay from rendering services to the
Debtors with respect to any matters involving any creditor for
which Held & Israel has filed a notice of appearance in the
Debtors' Chapter 11 cases.
The Court will fix Smith Hulsey & Busey's compensation for
professional services rendered and reimbursement for advanced
costs.
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. 41; Bankruptcy Creditors' Service, Inc., 215/945-
7000).
===============
B A R B A D O S
===============
INTERPOOL INC: S&P Affirms BB Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on
Interpool Inc., including its 'BB' corporate credit rating, and
removed the ratings from CreditWatch. The ratings were
initially placed on CreditWatch with developing implications on
March 15, 2006. The CreditWatch status was revised to positive
on May 10, 2006. The outlook is now positive.
"The rating affirmation is based on uncertainty regarding
sustainability of Interpool's recently improved balance sheet
after proceeds from the sale of assets were used to reduce
debt," said Standard & Poor's credit analyst Betsy Snyder.
"While the debt reduction is a positive credit development, the
company may face pressure as a publicly held equipment leasing
company to adopt a less conservative balance sheet."
The revised CreditWatch listing on May 10 reflected Interpool's
improved balance sheet after the March 29, 2006, sale of
approximately 74% of its dry marine cargo container fleet, with
proceeds used to repay US$434 million of related debt.
Interpool recorded a gain of approximately US$61 million in
connection with the sale. As a result, the company's debt to
capital declined to around 71% at March 31, 2006 (a lower-than-
average level for a transportation equipment lessor) from 81% at
Dec. 31, 2005. Interpool will continue to manage the fleet for
the new buyers, generating fee income for this service.
Interpool is the largest lessor of chassis in North America,
with a fleet of 227,000 chassis. Chassis are wheeled frames
attached to cargo containers that, when combined, are equivalent
to a trailer that can be trucked to its destination.
Interpool's only major competitor in this business is privately
held Flexi-Van Leasing Inc. The chassis leasing business has
tended to generate strong and stable cash flow, even in periods
of economic weakness.
If Interpool continues to maintain its strong financial profile
over the intermediate term, ratings could be raised. If the
company were to adopt a less conservative balance sheet,
resulting in a weaker financial profile, the outlook could be
revised to stable.
===========
B E L I Z E
===========
* BELIZE: Inks Partial Trade Accords with Guatemala
---------------------------------------------------
Belize entered into partial agreements with Guatemala on
relations, exchange and investments, Prensa Latina reports.
Marcio Cuevas -- Guatemala's economy minister -- signed the
agreements with Eamon Courtney, his counterpart from Belize, on
Monday after 12 months of negotiations on tax and custom
exemption, Lorena Colom, the international trade specialist from
Guatemala's Chamber of Commerce, told Prensa Latina
The agreement, says Prensa Latina, has over 70 beneficiaries in
Guatemala, among them are those of:
-- livestock,
-- oils,
-- timber,
-- plastic articles, and
-- latex.
Prensa Latina states that Belize's exemption cover:
-- fisheries,
-- tropical fruits,
-- preserves, and
-- jellies.
Guatemala's exports to Belize totaled US$29 million while
imports was less than US$3 million, Prensa Latina relates.
Belize lies on the eastern or Caribbean coast of Central
America, bounded on the north and part of the west by Mexico,
and on the south and the remainder of the west by Guatemala. The
Country's natural resources include arable land potential,
timber, fish, andhydropower.
Moody's Investor Service assigned these ratings to Belize:
-- CC LT Foreign Bank Depst Caa3
-- CC LT Foreign Curr Debt Caa3
-- CC ST Foreign Bank Depst NP
-- CC ST Foreign Curr Debt NP
-- LC Curr Issuer Rating Caa3
-- FC Curr Issuer Rating Caa3
-- Foreign Currency LT Debt Caa3
-- Local Currency LT Debt Caa3
Standard & Poor's Rating Service assigned these ratings to
Belize:
-- Foreign Currency LT Debt CCC-
-- Local Currency LT Debt CCC+
-- Foreign Currency ST Debt C
-- Local Currency ST Debt C
=============
B O L I V I A
=============
* BOLIVIA: Inks US$50-Million Accord with German Technical Firm
---------------------------------------------------------------
La Prensa states that the government of Bolivia has entered into
a US$50 million technical and financial cooperation agreement
with Germany's Deutsche Gesellschaft fur Technische
Zusammenarbeit aka GTZ.
Business News Americas relates that Bolivia's President Evo
Morales met with representatives from the German government last
week to discuss the cooperation.
According to BNamericas, the funds will be assigned to promote,
among others:
-- potable water coverage plans,
-- basic sanitation coverage plans, and
-- sustainable agriculture development.
Bolivia has been working with GTZ for 30 years, with priorities
set on the development of water supply and sanitation,
sustainable agriculture and administrative and judicial reform,
BNamericas states.
About GTZ
The Deutsche Gesellschaft fur Technische Zusammenarbeit aka GTZ
-- German Technical Cooperation -- is a corporation owned by the
German government coming under the sponsorship of the Federal
Ministry of Economic Cooperation and Development.
* * *
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: Nationalization Indirectly Hits Chile's Gas Supply
-------------------------------------------------------------
Hal Weitzman and Benedict Manderin, writing for the Wall Street
Journal, reports that Chile could face power shortages as a
result of Bolivia's nationalization of its hydrocarbons sector.
Chile is dependent on Argentina to supply more than a third of
its power needs. In order for Argentina to fulfill its export
commitments to Chile, it needs to import almost half of the 15
cubic meters of gas per day from Bolivia. It currently buys gas
at US$3.35 per million BTU. However, after its gas
nationalization, Bolivia wants gas prices increased to US$5.50
per million BTU, the Journal explains.
"If Argentina cannot get enough gas from Bolivia it will
inevitably have to cut exports to Chile -- there's no magic,"
Daniel Montamat, a former energy minister in Argentina and
previously head of the former state oil company YPF, told the
Journal.
Price negotiations between Argentina and Bolivia have repeatedly
been stalled because Evo Morales' government doesn't like
Argentina's re-exporting of gas to Chile. Chile is Bolivia's
historic rival, the Journal relates.
"The moment that Kirchner declared that the gas is for Chile,
the difficulties started," Andres Soliz, Bolivia's hydrocarbons
minister, told the Journal.
The Journal relates that Bolivia and Chile have not had
diplomatic ties since 1978. Relations have been tense since the
19th century, when Chile defeated Bolivia and annexed its
mineral-rich coastline. In 2003, former Bolivian president
Gonzalo Sanchez de Lozada was forced out of office after
proposing gas exports via Chile.
* * *
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
===========
BANCO ITAU: In Talks with TecBan for ATM Network Access
-------------------------------------------------------
Banco Itau Holding Financeira SA is negotiating with TecBan, an
online payment services firm, for access to the latter's ATM
network, Gazeta Mercantil reports.
Business News Americas relates that Banco Itau seeks to allow
its customers to withdraw cash from TecBan's Banco24Horas ATM.
TecBan supplies services to 47 financial institutions in 260
cities with 2,800 terminals.
Banco Itau is following Banco Bradesco's lead. The latter
joined the Banco24Horas network in 2005, BNamericas states.
Banco Itau currently has 51 thousand employees serving more than
16 million clients, through its network of 2,391 branches and 22
thousand ATMs.
* * *
As reported in the Troubled Company Reporter on March 9, 2006,
Standard & Poor's Ratings Services assigned a 'BB' currency
credit rating on Banco Itau S.A.
ST. MARYS: Parent's Restructuring Prompts Moody's Ba3 Rating
------------------------------------------------------------
Moody's Investors Service upgraded the corporate family rating
of St. Marys Cement Inc. to Ba3 from B1, and assigned a Ba3
rating to the various tranches of a proposed US$550 million
senior secured bank facility. The Votorantim Group, St. Marys'
owner, is restructuring its North American cement assets and
refinancing its debt. Moody's ratings for St. Marys' existing
debt will be withdrawn at the conclusion of the transaction.
St. Marys' rating outlook remains stable.
The key factors influencing St. Marys ratings include its modest
financial leverage given the company's size and earnings
capacity, a strong market position supported by its entrenched
position as the largest supplier of cement in the Great Lakes
region and its supplemental cement operations in Florida, as
well as assets in downstream ready-mix concrete and construction
aggregates, and an improved geographic diversity with the
consolidation of Votorantim's North American manufacturing
footprint, including the combination of Florida assets into
St. Marys' Great Lakes operations.
St. Marys' ratings are also reflective of the company's
reduction in free cash flow due to increased capital spending
over the near term, largely driven by expansion plans for St.
Marys' newly integrated Florida assets, and its vulnerability to
raw material cost inflation, including natural gas and
electricity.
Moody's new ratings for St. Marys are premised on modest
availability of cash and financing for a prudent acquisition
that incorporates an appropriate purchase price, appropriate
EBITDA multiple, and opportunities for synergies with St. Marys'
current operations.
These ratings were assigned:
* US$150 million Guaranteed Senior Secured Revolving Credit
Facility due 2011 -- Ba3
* US$250 million Guaranteed Senior Secured Term Loan A
Facility due 2011 -- Ba3
* US$150 million Guaranteed Senior Secured Term Loan B
Facility due 2013 -- Ba3
This rating was upgraded:
* St. Marys' corporate family rating -- to Ba3 from B1
Headquartered in Toronto, Ontario, St. Marys' revenues for the
trailing twelve months ended March 31, 2006 were US$606 million.
St. Marys' facilities shipped approximately 4.9 million metric
tons of cement, 1.6 million tons of ready mixed concrete and
4.4 million tons of aggregates in 2005. It is the largest
supplier of cement in the Great Lakes region.
The Votorantim Group, headquartered in Sao Paulo, Brazil, is one
of the largest private industrial conglomerates in Latin
America, with large scale production in cement, pulp and paper,
and metals and mining industries. The group is also actively
engaged in the production of chemicals, frozen concentrated
orange juice, energy, financial services and venture capital
investments.
VARIG SA: TAM SA & GOL Call for Distribution of Domestic Routes
---------------------------------------------------------------
TAM SA and Gol Linhas Aereas SA asked Brazil's National Civil
Aviation Authority to distribute VARIG, S.A's domestic routes,
Bloomberg News reports, citing Valor Economico newspaper.
According to Valor, the two Brazilian carriers sought the
immediate distribution of routes on a permanent basis to secure
lease of new aircraft and investment.
VARIG canceled 118 domestic and international flights, more than
half its 208 flights, on June 20, 2006, according to Bloomberg,
citing O Estado de S. Paulo.
The Brazilian aviation authority asked local airlines, including
TAM and Gol, to honor VARIG tickets in exchange of taking over
some of VARIG's routes, Estado said.
About VARIG
Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America. VARIG's principal business is the transportation of
passengers and cargo by air on domestic routes within Brazil and
on international routes between Brazil and North and South
America, Europe and Asia. VARIG carries approximately 13
million passengers annually and employs approximately 11,456
full-time employees, of which approximately 133 are employed in
the United States.
The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage. The Debtors may be the first case
under the new law, which took effect on June 9, 2005. Similar
to a chapter 11 debtor-in-possession under the U.S. Bankruptcy
Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization. Sergio Bermudes,
Esq., at Escritorio de Advocacia Sergio Bermudes, represents the
carrier in Brazil.
Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative. In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States. As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 23; Bankruptcy
Creditors' Service, Inc., 215/945-7000)
VARIG S.A.: Willis Wants Judgment on Nine Leased Engines
--------------------------------------------------------
Willis Lease Finance Corporation asks the U.S. Bankruptcy Court
for the Southern District of New York for judgment:
1. declaring nine engines leased to VARIG, S.A., and its
affiliate Rio-Sul Linhas Aereas, S.A., pursuant to
lease agreements, as Willis' property;
2. directing the Foreign Debtors to:
a. return all of the Willis engines together with all
parts and records;
b. execute all documents necessary to acknowledge the
termination of the leases; and
c. secure any export permits, licenses or documents
necessary to remove the engines from Brazil;
3. for wrongful detention, conversion and use of the engines
equal to the rent and use fees provided in the leases
until the engines are returned properly together with all
parts and records; and
4. awarding Willis punitive damages against the Foreign
Debtors in an amount to be determined by the Court.
Seven of the leased engines have expired by their terms, and two
are in default, William J. Rochelle, III, Esq., at Fulbright &
Jaworski L.L.P., informs the Court.
The Foreign Debtors have refused to return any of the engines
and continues using them to generate income without even
offering to make payment or extend the leases, Willis complains.
As of April 17, 2006, Willis estimates that the Foreign Debtors
owe it US$2.1 million for the use of the engines under the
expired and defaulted leases.
By refusing to pay usage fees due under the leases, the Foreign
Debtors are consuming the engines each hour they operate them,
Mr. Rochelle contends.
TRO Request
Willis further asks the Court for temporary and preliminary
injunction. Specifically, Willis asks Judge Drain for:
1. a temporary injunction:
-- directing the Foreign Debtors to immediately remove
the engines from the aircraft to which they are
attached and to deliver the engines immediately to
an independent, third-party repair facility chosen
by Willis not under the control of VARIG or any of
its affiliates;
-- enjoining all of the Foreign Debtors' officers,
directors, employees and agents from asserting any
dominion or control over the engines when they have
been delivered to the Third Party, and from removing
any items or parts from the engines; and
2. a preliminary injunction requiring the Foreign Debtors to:
-- deliver the engines to Willis at a location of
Willis' choosing in the United States in compliance
with the pertinent provisions of the leases;
-- execute all documents necessary to acknowledge the
termination of the leases; and
-- secure any export permits and licenses necessary to
remove the engines from Brazil.
Foreign Rep. Wants Complaint Dismissed
Rick B. Antonoff, Esq., at Pillsbury Winthrop Shaw Pittman LLP,
in New York, asserts that a case pursuant to Section 304 of the
Bankruptcy Code is a limited one, designed to function in aid of
a proceeding pending in a foreign court. In contrast, courts
have recognized that in applying the principles of Section 304,
"the foreign court presiding over the original proceeding is in
the better position to decide when and where claims should be
resolved in a manner calculated to conserve resources and
maximize assets," Mr. Antonoff points out, citing In re Bird,
222 B.R. at 233 (quoting In re Gercke, 122 B.R. 621 (Bankr. D.C.
1991)).
On behalf of VARIG, S.A., Foreign Representative Eduardo Zerwes,
Mr. Antonoff says the Preliminary Injunction existing in the
Foreign Debtors' cases does not prohibit Willis from commencing
action against the Foreign Debtors. Mr. Antonoff notes that
Willis has commenced two actions, both seeking return of the
engines, in:
1. the Civil Court in Rio de Janeiro, Brazil; and
2. the Circuit Court of the 11th Judicial Circuit in and for
Miami-Dade County, Florida.
According to Mr. Antonoff, the question is not whether Willis is
able to exercise its rights and remedies -- it is. The question
is whether the complaint should be sustained in view of:
-- the limited purposes of a Section 304 case; and
-- the actions already brought by Willis pending in Brazil
and Florida.
So as not to require the Foreign Debtors to expend resources
responding to the complaint, the Foreign Representative asks the
Judge Drain to dismiss the complaint.
The complaint should not have been brought in the Bankruptcy
Court, Mr. Antonoff maintains.
Florida Court Directs VARIG to Return Engines
Willis Lease Finance Corporation informs the U.S. Bankruptcy
Court that the Circuit Court of the 11th Judicial Circuit in and
for Miami-Dade County, Florida, on June 12, 2006, ordered the
Foreign Debtors to:
-- immediately remove all of Willis engines from their
aircraft;
-- cease further operation of the Willis engines; and
-- promptly return the engines to Willis pursuant to the
terms of the leases.
The Florida Court issued the order pursuant to a replevin action
that Willis initiated.
Willis relates that the Foreign Debtors initially agreed to the
entry of an order by the Florida Court dated May 17, 2006.
Under the May 17 Florida Order, Willis is entitled to immediate
possession of the engines. To stave of repossession, the
Foreign Debtors agreed to cure all defaults in installments by
June 5, 2006.
The Foreign Debtors, however, missed a payment deadline on
June 9, which pursuant to the May 17 Florida Order compels them
to immediately remove and promptly return the engines to Willis.
The Foreign Debtors have until July 12, 2006, to return the
engines.
About VARIG
Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin
America. VARIG's principal business is the transportation of
passengers and cargo by air on domestic routes within Brazil and
on international routes between Brazil and North and South
America, Europe and Asia. VARIG carries approximately 13
million passengers annually and employs approximately 11,456
full-time employees, of which approximately 133 are employed in
the United States.
The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a
competitive landscape, high fuel costs, cash flow deficit, and
high operating leverage. The Debtors may be the first case
under the new law, which took effect on June 9, 2005. Similar
to a chapter 11 debtor-in-possession under the U.S. Bankruptcy
Code, the Debtors remain in possession and control of their
estate pending the Judicial Reorganization. Sergio Bermudes,
Esq., at Escritorio de Advocacia Sergio Bermudes, represents the
carrier in Brazil.
Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative. In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States. As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 21; Bankruptcy
Creditors' Service, Inc., 215/945-7000)
===========================
C A Y M A N I S L A N D S
===========================
DB FOG: Proofs of Claim Filing Deadline Is Set for July 21
----------------------------------------------------------
DB Fog Investments Limited's creditors are required to submit
proofs of claim by July 21, 2006, to the company's liquidator:
Jeremy Simon Spratt
Richard Heis
KPMG LLP, 8 Salisbury Square, London
EC4Y 8BB, United Kingdom
Creditors who are not able to comply with the July 21 deadline
won't receive any distribution that DB Fog will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
DB Fog's shareholders agreed on May 31, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law
(2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Ray Levy
8 Salisbury Square, London
EC4Y 8BB, United Kingdom
Tel: 01144 207 694 3201
Fax: 01144 207 694 3533
DB HOK: Last Day to File Proofs of Claim Is on July 21
------------------------------------------------------
DB Hok Investments Limited's creditors are required to submit
proofs of claim by July 21, 2006, to the company's liquidator:
Jeremy Simon Spratt
Richard Heis
KPMG LLP, 8 Salisbury Square, London
EC4Y 8BB, United Kingdom
Creditors who are not able to comply with the July 21 deadline
won't receive any distribution that DB Hok will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
DB Hok's shareholders agreed on May 31, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law
(2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Ray Levy
8 Salisbury Square, London
EC4Y 8BB, United Kingdom
Tel: 01144 207 694 3201
Fax: 01144 207 694 3533
DB TAP: Sets July 21 as Last Day to File Proofs of Claim
--------------------------------------------------------
DB Tap Investments Limited's creditors are required to submit
proofs of claim by July 21, 2006, to the company's liquidator:
Jeremy Simon Spratt
Richard Heis
KPMG LLP, 8 Salisbury Square, London
EC4Y 8BB, United Kingdom
Creditors who are not able to comply with the July 21 deadline
won't receive any distribution that DB Tap will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
DB Tap's shareholders agreed on June 5, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law
(2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Ray Levy
8 Salisbury Square, London
EC4Y 8BB, United Kingdom
Tel: 01144 207 694 3201
Fax: 01144 207 694 3533
DESERT (FINANCE): Proofs of Claim Filing Deadline Is on July 21
---------------------------------------------------------------
Desert Passage Finance Limited's creditors are required to
submit proofs of claim by July 21, 2006, to the company's
liquidator:
Westport Services Ltd.
P.O. Box 1111
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 21 deadline
won't receive any distribution that Desert Passage will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Desert Passage Finance's shareholders agreed on June 7, 2006,
for the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Bonnie Willkom
P.O. Box 1111
Grand Cayman, Cayman Islands
Tel: (345) 949-5122
Fax: (345) 949-7920
DESERT (FUNDING): Filing of Proofs of Claim Will End on July 21
---------------------------------------------------------------
Desert Passage Funding Limited's creditors are required to
submit proofs of claim by July 21, 2006, to the company's
liquidator:
Westport Services Ltd.
P.O. Box 1111
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 21 deadline
won't receive any distribution that Desert Passage will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Desert Passage Funding's shareholders agreed on June 7, 2006,
for the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Bonnie Willkom
P.O. Box 1111
Grand Cayman, Cayman Islands
Tel: (345) 949-5122
Fax: (345) 949-7920
DL CHINA: Last Day to File Proofs of Claim Is on July 13
--------------------------------------------------------
DL China International Limited's creditors are required to
submit proofs of claim by July 13, 2006, to the company's
liquidator:
Yoshinobu Ushioda
Yasuhisa Tsuruhashi
Caledonian Bank & Trust Limited
Caledonian House, 69 Dr. Roy's Drive
P.O. Box 1043, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 13 deadline
won't receive any distribution that DL China will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
DL China's shareholders agreed on May 29, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Janeen Aljadir
Caledonian Bank & Trust Limited
Caledonian House, 69 Dr. Roy's Drive
P.O. Box 1043, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-4943
Fax: (345) 814-4859
FAIRFIELD MASTER: Holds Final Shareholders Meeting on July 10
-------------------------------------------------------------
Fairfield Saxo Master Fund Ltd.'s shareholders will convene for
a final meeting on July 10, 2006, at:
Stuarts Walker Hersant
4th Floor, Cayman Financial Centre
36a Dr. Roy's Drive, George Town
P.O. Box 2510 GT
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidators can be reached at:
Chris Humphries
Sophia A.Dilbert
c/o Messrs. Stuarts Walker Hersant, Attorneys-at-law
P.O. Box 2510GT, Cayman Financial Centre
36a Dr. Roy's Drive, George Town
Grand Cayman, Cayman Islands
FAIRFIELD SAXO: Liquidator Presents Wind Up Accounts on July 10
---------------------------------------------------------------
Fairfield Saxo Fund Ltd.'s shareholders will convene for a final
meeting on July 10, 2006, at:
Stuarts Walker Hersant
4th Floor, Cayman Financial Centre
36a Dr. Roy's Drive, George Town
P.O. Box 2510 GT
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidators can be reached at:
Chris Humphries
Sophia A.Dilbert
c/o Messrs. Stuarts Walker Hersant, Attorneys-at-law
P.O. Box 2510GT, Cayman Financial Centre
36a Dr. Roy's Drive, George Town
Grand Cayman, Cayman Islands
HARTVILLE GROUP: March 31 Balance Sheet Upside-Down by US$4 Mil.
----------------------------------------------------------------
Hartville Group, Inc., filed its financial statements for the
quarter ended March 31, 2006, with the US Securities and
Exchange Commission.
Hartville Group reported a US$2,479,978 net loss on US$1,336,632
of gross revenues for the three months ended March 31, 2006,
versus a US$2,093,903 net loss on US$1,090,796 of gross revenues
for the three months ended March 31, 2005.
At March 31, 2006, Hartville Group's balance sheet showed
US$7,191,820 in total assets and US$3,821,686 in total
liabilities resulting in a stockholders' equity of US$3,370,134.
Full-text copies of Hartville Group's financial statements for
the quarter ended March 31, 2006, are available for free at:
http://ResearchArchives.com/t/s?c73
As reported in the Troubled Company Reporter on May 4, 2006,
BDO Seidman, LLP, raised substantial doubt about the ability of
Hartville Group, Inc., to continue as a going concern after
auditing the company's consolidated financial statements for the
years ended Dec. 31, 2004, and 2005. The auditing firm pointed
to the company's recurring losses from operations, substantial
accumulated deficit, and impending due dates of some material
financial obligations.
At March 31, 2006, the Company reported an accumulated deficit
of US$19,760,975 and negative cash flows from operations during
the three months ended March 31, 2006 of US$1,189,773.
About Hartville Group
Hartville Group, Inc. -- http://www.hartvillegroup.com/-- is a
holding company whose wholly owned subsidiaries include
Hartville Re Ltd. and Petsmarketing Insurance.com Agency, Inc.
Hartville is a reinsurance company that is registered in the
Cayman Islands, British West Indies. Hartville was formed to
reinsure pet health insurance that is being marketed by the
Agency. The Agency is primarily a marketing/administration
company concentrating on the sale of its proprietary health
insurance plans for domestic pets. Its business plan calls for
introducing its product effectively and efficiently through a
variety of distribution systems. The company accepts
applications, underwrites and issues policies.
LATIN AMERICAN SMALL: Proofs of Claim Filing Ends on July 10
------------------------------------------------------------
Latin American Small Cap Holdings' creditors are required to
submit proofs of claim by July 10, 2006, to the company's
liquidator:
Emerging Markets Management, L.L.C.
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309GT, Ugland House
South Church Street, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 10 deadline
won't receive any distribution that Latin American Small Cap
will make. Creditors are required to present proofs of claim
personally or through their solicitors.
Latin American Small Cap's shareholders agreed on June 14, 2006,
for the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
NEW STRATUS: Sets July 21 Deadline for Proofs of Claim Filing
-------------------------------------------------------------
New Stratus Investments Limited's creditors are required to
submit proofs of claim by July 21, 2006, to the company's
liquidator:
Westport Services Ltd.
P.O. Box 1111
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 21 deadline
won't receive any distribution that New Stratus will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
New Stratus' shareholders agreed on June 8, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Bonnie Willkom
P.O. Box 1111
Grand Cayman, Cayman Islands
Tel: (345) 949-5122
Fax: (345) 949-7920
RSG DISCRETIONARY: Declares Voluntary Liquidation of Business
-------------------------------------------------------------
RSG Discretionary Ltd.'s shareholders decided on Feb. 28, 2006,
to place the company in voluntary liquidation under the
Companies Law (2004 Revision) of the Cayman Islands.
Cititrust (Bahamas) Limited was appointed as liquidator to
facilitate the winding up of RSG Discretionary's business.
The liquidator can be reached at:
Cititrust (Bahamas) Limited
P.O. Box N-1576, Citibank Building
Thompson Boulevard, Oakes Field
Nassau, Bahamas
RSG EQUITY: Shareholders Place Company in Voluntary Liquidation
---------------------------------------------------------------
RSG Equity Arbitrage Ltd.'s shareholders decided on
Feb. 28, 2006, to place the company in voluntary liquidation
under the Companies Law (2004 Revision) of the Cayman Islands.
Cititrust (Bahamas) Limited was appointed as liquidator to
facilitate the winding up of RSG Equity's business.
The liquidator can be reached at:
Cititrust (Bahamas) Limited
P.O. Box N-1576, Citibank Building
Thompson Boulevard, Oakes Field
Nassau, Bahamas
RSG EVENT: Shareholders Declare Company's Voluntary Liquidation
---------------------------------------------------------------
RSG Event Driven Plus Ltd.'s shareholders decided on
Feb. 28, 2006, to place the company in voluntary liquidation
under the Companies Law (2004 Revision) of the Cayman Islands.
Cititrust (Bahamas) Limited was appointed as liquidator to
facilitate the winding up of RSG Event's business.
The liquidator can be reached at:
Cititrust (Bahamas) Limited
P.O. Box N-1576, Citibank Building
Thompson Boulevard, Oakes Field
Nassau, Bahamas
RSG FIXED: Shareholders Place Business in Voluntary Liquidation
---------------------------------------------------------------
RSG Fixed Income Arbitrage Ltd.'s shareholders decided on
Feb. 28, 2006, to place the company in voluntary liquidation
under the Companies Law (2004 Revision) of the Cayman Islands.
Cititrust (Bahamas) Limited was appointed as liquidator to
facilitate the winding up of RSG Fixed Income's business.
The liquidator can be reached at:
Cititrust (Bahamas) Limited
P.O. Box N-1576, Citibank Building
Thompson Boulevard, Oakes Field
Nassau, Bahamas
SOGASIA: Creditors Have Until July 19 to File Proofs of Claim
-------------------------------------------------------------
Sogasia's creditors are required to submit proofs of claim by
July 19, 2006, to the company's liquidator:
David A.K. Walker
Lawrence Edwards
PricewaterhouseCoopers
Strathvale House, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 19 deadline
won't receive any distribution that Sogasia will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Sogasia's shareholders agreed on June 7, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law
(2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Jodi Jones
P.O. Box 258, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914-8694
Fax: (345) 949-4590
UNIQUE LATIN: Creditors Must Submit Proofs of Claim by July 17
--------------------------------------------------------------
Unique Latin Roses, Ltd.'s creditors are required to submit
proofs of claim by July 17, 2006, to the company's liquidator:
Ing. Pablo Viteri
P.O. Box 268, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the July 17 deadline
won't receive any distribution that Unique Latin will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Unique Latin's shareholders agreed on June 1, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Simon Courtney
P.O. Box 268, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-2648
Fax: (345) 949-8613
=========
C H I L E
=========
ENDESA CHILE: Begins Environmental Studies on Aysen Project
-----------------------------------------------------------
Endesa Chile has tendered and awarded to Chilean academic
institutions various technical and scientific investigations for
identifying the present environmental and social situation of
the zone where the plants of the Aysen Hydroelectric project is
intended to be built, which is near Cochrane in Chile's Region
XI. The studies are expected to go on until mid-2007.
The Environmental Base Line studies are being prepared by
recognized academic institutions in Chile that took part in
various tenders supervised by Endesa Chile's subsidiary,
Ingendesa.
The studies awarded to date are:
-- "Implementation of the Geographic Information System,
SIG", to be carried out by Universidad Mayor until August
this year;
-- "Terrestrial vegetation and flora", to be carried out by
Universidad Austral de Chile until May 2007;
-- "Terrestrial Fauna", to be carried out by Universidad de
Concepcion until the middle of next year;
-- "Water Quality, Aquatic Fauna and Aquatic Vegetation and
Flora", awarded to the Centro de Ecologia Aplicada
(applied ecology center) to be completed by April 2007;
-- "Population, Socio-Economic Aspects, Quality of Life and
Tourist Activities" and "Land Ownership, Infrastructure
and Equipment" to be carried out by Pontificia Universidad
Catolica de Chile, both by the end of this year; and
-- "Cultural Heritage (Historic, Archaeological, Anthropo-
Archaeological, Religious, National Monuments)", to be
carried out by Universidad Bolivariana, also by the end
of this year.
Meanwhile, offers from various institutions are being evaluated
for other studies including:
-- "Oceanography, marine flora and fauna (in Puerto Yungay
and Rampa Rio Bravo)," and
-- "Landscapes, Territorial Planning and Protected Areas".
Endesa Chile has also invited different academic institutions
and specialized entities to carry out studies of the "Physical
Surroundings."
Conscious of the scientific importance of the above
environmental and social studies, Endesa Chile has felt it
important to contract an independent auditor to certify the
tender processes and the preparation of the studies. The audit
work was awarded in February 2006 to PriceWaterhouseCoopers.
Empresa Nacional de Electricidad S.A. aka Endesa Chile and its
subsidiaries generate and supply electricity. The company owns
and operates generating plants, and offers civil, mechanical,
and electrical engineering, architectural environmental, and
project management services.
* * *
Moody's Investor Service assigned a Ba1 foreign currency long-
term debt rating to Empresa Nacional de Electricidad SA (Chile)
on Jan. 26, 2005.
ENDESA CHILE: Says Canela Wind Park Will Generate 9.9MW to SIC
--------------------------------------------------------------
Endesa Chile, through its subsidiary Endesa Eco, presented to
the Fourth Region National Environmental Commission its
Environmental Impact Declaration for the Canela wind-generating
park, an initiative that will generate 9.9 MW to the Central
Grid or SIC.
The project, the first wind-generating park to be connected to
the SIC, will cost around US$17 million and will be located in
the Canela district in Chile's fourth region of Coquimbo. It
will produce an average annual generation of 26,000 MWh and is
expected to come into service in mid-2007.
The park will be built on a site acquired from Centinela S.A., a
company having wind measuring studies certified by the wind-
generating consultants Garrad Hassan and Partner. The zone is
one of highly stable wind forces averaging 6.3 m/s and with a
capacity fluctuating between 60 and 80 MW.
The park's production will supply clean energy and expand the
medium with the incorporation of non-conventional renewable
energy, consequently conserving electricity supplies.
Being a coastal site with small variations in contours, Canela
is favorable for the installation of a wind-generating park. It
is exposed to dominant southerly winds and is easily accessible
from the 5 North Highway. It will also take advantage of its
proximity to the existing 2x220 kV Los Vilos - Pan de Azucar
power line (approximately 600 m) for transmitting its
production.
Wind-Generating Projects
Endesa Eco implemented two lines of action for developing wind-
generating projects, one at short term and the other at medium
term:
Short Term
-- Research for the first wind-generating park to be
connected to the SIC for which several potential
developments were registered that had the possibility
of providing information in both the north and south of
the country.
Medium Term
-- Preparation of a detailed wind-generating map indicating
the country's wind-generating potential, with accurate
measurements of the resource's characteristics and its
precise location for the evaluation of future initiatives.
In August 2005, Endesa Eco signed an agreement with Universidad
de Magallanes or UMAG for the study of Chile's wind-generating
potential in order to prepare a ranking of fourteen zones of
interest for the company and simulation in mesoscale of the
wind-generating resource in four zones in the country.
Empresa Nacional de Electricidad S.A. aka Endesa Chile and its
subsidiaries generate and supply electricity. The company owns
and operates generating plants, and offers civil, mechanical,
and electrical engineering, architectural environmental, and
project management services.
* * *
Moody's Investor Service assigned a Ba1 foreign currency long-
term debt rating to Empresa Nacional de Electricidad SA (Chile)
on Jan. 26, 2005.
===============
C O L O M B I A
===============
ECOPETROL: Sues Occidental Petroleum for Environmental Damages
--------------------------------------------------------------
Colombia's state-run oil firm Ecopetrol filed a US$7 million
suit against Occidental Petroleum alleging nonpayment of
environmental damages to Venezuela in connection with the
blasting of a border oil pipeline by Colombian guerrillas, El
Universal reports, citing AFP.
Petroleos de Venezuela SA paid for about US$14 million for the
decontamination of the Venezuelan river basins and Lake
Maracaibo in 1997-2000, according to El Espectador.
Ecopetrol filed the suit at the end of 2005 with an arbitration
court of the Bogota Commerce Chamber.
Ecopetrol is an integrated-oil company that is wholly owned by
the Colombian government. The company's activities include
exploration for and production of crude oil and natural gas, as
well as refining, transportation, and marketing of crude oil,
natural gas and refined products. Ecopetrol is Latin America's
fourth-largest integrated-oil concern. Operations are organized
into Exploration & Production, Refining & Marketing,
Transportation, and International Commerce & Gas.
On June 27, 2006, Fitch Ratings revised the rating outlook of
the long-term foreign currency issuer default rating of
Ecopetrol S.A. to Positive from Stable. This rating action
follows the recent revision in the Rating Outlook to Positive
from Stable of the 'BB' foreign currency IDR of the Republic of
Colombia. Ecopetrol's IDR remain strongly linked with the
credit profile of the Republic of Colombia.
* COLOMBIA: Accepting Bids for Landfill Operation Concession
------------------------------------------------------------
The bidding on a concession to operate a new landfill for Cali
is still ongoing even though the deadline for the presentation
of the bids was set on June 22, Business News Americas reports,
citing an official from Superservicios, the services regulator
in Colombia.
The official told BNamericas that the bidding has been postponed
indefinitely. The official said that a new schedule of
deadlines will be released in 2-3 weeks.
According to BNamericas, the winner of the bidding will be
granted a contract to build and operate the landfill for 20
years.
The project is estimated to need up to COP20 billion investment,
BNamericas 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
* COLOMBIA: Power Demand Increases 4.3% to 4,287GWh in May
----------------------------------------------------------
Figures released by XM, a unit of state transmission firm
Interconexion Electrica SA, show that Colombia's power demand
rose 4.3% to 4,287GWh, compared with the same month in 2005,
Business News Americas reports.
According to BNamericas, daily power demand was 138GWh. In the
12 months ending May 2006, demand averaged 136GWh.
XM said in a statement the increase in demand was due to non-
regulated demand that increased 7.67% due to a 6.02% increase in
new users.
BNamericas relates that power in May was taken from:
-- 78.6% from hydro sources,
-- 16.1% from thermo generation, and
-- 5.4% from other sources.
* * *
On May 30, 2005, Fitch Ratings affirmed Colombia's ratings as:
-- Long-term foreign currency 'BB';
-- Country ceiling 'BB';
-- Local currency 'BBB-';
-- Short-term 'B'.
Fitch said the Rating Outlook is Stable.
===================
C O S T A R I C A
===================
* COSTA RICA: May Face Another Gasoline Price Hike
--------------------------------------------------
Costa Rica's Refineria Costarrincense de Petroleo or Recope has
requested another increase in gasoline prices, Inside Costa Rica
reports.
According to Inside Costa Rica, technicians from Costa Rica's
Autoridad Reguladora de los Servicios Publicos or Aresep are
recommending the approval of the request.
The request, if approved, would implement the fifth price hike
in gasoline in Costa Rica, Inside Costa Rica relates.
Inside Costa Rica states that there have been no price hikes for
public services for some time as Aresep was waiting for a new
regulator. Fernando Herrero was then appointed to the post.
Mr. Herrero, says Inside Costa Rica, is now ready to sign a
series of increases for public services that included gasoline
prices, which had been postponed since May.
Inside Costa Rica reports that price hikes asked include:
-- CRC30 increase per liter of "super" and "regular"
gasoline, resulting to:
* "super" gasoline increasing to CRC556 per liter from
CRC526 per liter,
* "regular" gasoline rising to CRC534 per liter to
CRC504 per liter; and
-- the CRC344 current price per liter of diesel gasoline
increasing CRC36 to CRC380 per liter.
Mr. Herrero's approval is expected this week. It will be
published in La Gaceta, the official publication, within five
days. The new prices are expected in the middle of next week,
Inside Costa Rica reports.
* * *
Costa Rica is rated by Moody's:
-- CC LT Foreign Bank Depst Ba2
-- CC LT Foreign Curr Debt Ba1
-- CC ST Foreign Bank Depst NP
-- CC ST Foreign Curr Debt NP
-- Foreign Currency LT Debt Ba1
-- Local Currency LT Debt Ba1
Fitch assigned these ratings to Costa Rica:
-- Foreign currency long-term debt, BB
-- Local currency long-term debt, BB
-- Foreign currency short-term debt, B
Costa Rica carries these ratings from Standard & Poor's:
-- Foreign Currency LT Debt BB
-- Local Currency LT Debt BB+
-- Foreign Currency ST Debt B
-- Local Currency ST Debt B
* COSTA RICA: Moody's Revises Ba1 Ratings Outlook to Stable
-----------------------------------------------------------
Moody's Investors Service has changed the outlook on Costa
Rica's Ba1 foreign- and local-currency government bond ratings
to stable from negative in light of declining debt ratios and
diminishing concerns about financial dollarization.
The outlook on the Baa3 foreign-currency country ceiling for
bonds and the Ba2 foreign-currency country ceiling for bank
deposits was also changed to stable from negative. Costa Rica's
local-currency deposit ceiling remains at Aa3 with a stable
outlook, and the local-currency guideline, which represents the
highest possible rating that could be assigned to obligors and
obligations denominated in local currency within the country,
remains at Aa2.
"One of the key factors behind the outlook change is Costa
Rica's improved fiscal position, mostly driven by expenditure
restraint that has allowed the central government's primary
balance to reach its highest level in several years," said
Moody's Assistant Vice President-Analyst Alessandra Alecci.
"Strong economic growth and a stronger fiscal position helped
lower Costa Rica's public debt ratios to levels that now compare
favorably to similarly rated peers," explained the analyst. "A
vibrant external sector should continue supporting the current
trend in economic growth."
Moody's analysis of the incremental default risk posed by
financial dollarization, combined with a crawling peg exchange
rate regime suggests that the likelihood of a balance of
payments or systemic banking crisis is low. The rating agency
found that this view is supported by Costa Rica's decades-long
adherence to a sound macroeconomic framework.
"Costa Rica's ratings continue to be constrained by important
structural weaknesses," said Ms. Alecci.
She enumerated those weaknesses to include:
-- a lack of fiscal flexibility in the event of a negative
shock;
-- limited room for policy adjustment due to financial
dollarization; and
-- a slow and inefficient legislative process that has
prevented the approval of key reforms, including an
overhaul of the tax system and the Central American Free
Trade Agreement.
=======
C U B A
=======
* CUBA: Solcar Forms Consortium with Instituto Autonomo
-------------------------------------------------------
Solcar -- Cuba's state railway company -- has forged the
Ferrolasa consortium with Instituto Autonomo de Ferrocarriles
del Estado or IAFE, its Venezuelan counterpart, Agencia
Bolivariana de Noticias, Venezuela's state news agency, reports.
ABN relates that Solcar will advise the Venezuelan government on
the execution of a plan to improve the nation's railway network.
Ferrolasa will be based in Caracas and will launch operations in
August, Business News Americas reports.
BNamericas states that as agreed, Ferrolasa will:
-- conduct feasibility studies,
-- carry out new investment projects,
-- rehabilitate deteriorated sections of the Venezuelan rail
network,
-- oversee bidding processes, and
-- supervises negotiation of contracts with private firms.
IAFE will have a 51% share of Ferrolasa, says BNamericas.
Solcar will hold a 49% share.
Initial efforts under the consortium will be on the Puerto
Cabello-Barquisimeto railway, BNamericas 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
===================================
TRICOM SA: Lowers Price of US Calls to DOP0.95 Per Minute
---------------------------------------------------------
Tricom SA has reduced the rate of international long distance
calls to the United States to DOP0.95 per minute, Jose Salce,
the company's marketing vice president, told the DR1 Newsletter.
DR1 relates that the price -- which is the same as that of a
local call, according to Diario Libre -- is applicable if made
from residential lines.
Dominican Today states that Tricom has eliminated additional
charges for long distance o the US.
Mr. Salce, says Dominican Today, emphasized the benefits the new
measure grants to Dominican clients with relatives in the US.
Tricom had removed in 2005 additional charges on calls between
Dominican provinces. It is a benefit that still continues being
exclusive, Dominican Today reports.
Tricom, S.A. -- http://www.tricom.net/-- is a full service
communications services provider in the Dominican Republic. The
Company offer local, long distance, mobile, cable television and
broadband data transmission and Internet services. Through
Tricom USA, the Company is one of the few Latin American based
long distance carriers that is licensed by the U.S. Federal
Communications Commission to own and operate switching
facilities in the United States. Through its subsidiary, TCN
Dominicana, S.A., the Company is the largest cable television
operator in the Dominican Republic based on its number of
subscribers and homes passed. The Company's securities are
traded in the United States.
* * *
Moody's Investors Service assigned a Ca issuer and senior
unsecured ratings to Tricom SA. Moody's said the outlook is
stable.
=============
E C U A D O R
=============
PETROECUADOR: Will Auction Crude from Block 15 on June 29
---------------------------------------------------------
Petroecuador, the state-owned oil firm of Ecuador, will hold a
bidding process at 3:00 p.m. on June 29 for two million barrels
of crude produced on block 15, as stated in a statement posted
in the presidential Web site.
Block 15 was among the oil fields stripped from US oil firm
Occidental Petroleum Corp., Business News Americas relates.
The crude will be sold on the spot market in five separate loads
of 400,000 gallons to firms that are pre-qualified by
Petroecaudor, BNamericas states.
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.
=============
G R E N A D A
=============
* GRENADA: Inks Oil Supply Pact with Petroleos de Venezuela Unit
----------------------------------------------------------------
Petrocaribe Grenada, a state-owned firm of Grenada, has signed
an agreement with PDV Caribe -- a unit of Petroleos de Venezuela
-- for a yearly supply of 340,000 barrels of diesel, gasoline
and fuel oil, Business News Americas reports.
BNamericas relates that as part of the Petrocaribe energy
integration initiative, Grenada will get from Venezuela:
-- 55,000 barrels of diesel,
-- 85,000 barrels of gasoline, and
-- 200,000 barrels of fuel oil.
Grenada will be able to pay up to 60% of the bill over 90 days.
The remaining 40% will be paid over 25 years with a two-year
grace period and annual interest rates of 1%. Grenada will also
be able to use local foodstuffs to pay for the fuel, BNamericas
states.
* * *
As reported by the Troubled Company Reporter on March 21, 2006,
Standard & Poor's Ratings Services affirmed its 'B-' long-term
and 'C' short-term sovereign credit ratings on Grenada. S&P
said the outlook on the long-term ratings remains stable.
The ratings on Grenada are constrained by large government debt,
which, at an estimated 118% of GDP in 2006 (98% of GDP on a net
basis), is one of the highest among the 110 sovereigns rated by
Standard & Poor's. The debt burden has been partly alleviated
by the restructuring completed in November 2005, which extended
the maturity of roughly US$261 million (or 44% of the total) in
debt to 2025 and reduced the interest payment by more than half,
to about 2.5% of GDP in 2006.
=================
G U A T E M A L A
=================
* GUATEMALA: Inks Partial Trade Accords with Belize
---------------------------------------------------
Guatemala entered into partial agreements with Belize on
relations, exchange and investments, Prensa Latina reports.
Marcio Cuevas -- Guatemala's economy minister -- signed the
agreements with Eamon Courtney, his counterpart from Belize, on
Monday after 12 months of negotiations on tax and custom
exemption, Lorena Colom, the international trade specialist from
Guatemala's Chamber of Commerce, told Prensa Latina
The agreement, says Prensa Latina, has over 70 beneficiaries in
Guatemala, among them are those of:
-- livestock,
-- oils,
-- timber,
-- plastic articles, and
-- latex.
Prensa Latina states that Belize's exemption cover:
-- fisheries,
-- tropical fruits,
-- preserves, and
-- jellies.
Guatemala's exports to Belize totaled US$29 million while
imports was less than US$3 million, Prensa Latina relates.
* * *
Fitch Ratings assigned these ratings on Guatemala:
Rating Rating Date
------ -----------
Country Ceiling BB+ Feb. 22, 2006
Long Term IDR BB+ Feb. 22, 2006
Short Term IDR B Feb. 22, 2006
Local Currency
Long Term Issuer
Default Rating BB+ Feb. 22, 2006
* * *
Fitch also rated Guatemala's senior unsecured bonds:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
Aug. 3, 2007 US$150,000,000 8.5% BB+
Nov. 8, 2011 US$325,000,000 10.25% BB+
Aug. 1, 2013 US$300,000,000 9.25% BB+
Oct. 6, 2034 US$330,000,000 8.125% BB+
===============
H O N D U R A S
===============
* HONDURAS: State Firm Starts Fighting Power Theft
--------------------------------------------------
Leo Starkman -- the manager of Empresa Nacional de Energia
Electrica aka ENEE, the state power company of Honduras -- told
the local press that the company has started cracking down on
power theft.
The press states that power theft represents 28% -- HNL2.80
billion -- of ENEE's annual billing.
Mr. Starkman told Business News Americas that ENEE expects to
recover about HNL600 million this year through the initiative.
The manager said that ENEE has six months to carry out the
operations, BNamericas reports.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
------ -----------
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
KAISER ALUMINUM: Wants Asbestos Escrow Funds Returned
-----------------------------------------------------
Kaiser Aluminum & Chemical Corporation asks the U.S. Bankruptcy
Court for the District of Delaware to authorize the return of
funds held in escrow pursuant to a prepetition asbestos claims
settlement processing agreement.
Before the Debtor filed for bankruptcy, KACC was named as a
party-defendant in actions instituted in state and federal
courts in New York by asbestos-related personal injury claimants
represented by Weitz & Luxenberg, P.C.
In March 2000, KACC and W&L entered into the Settlement
Agreement to resolve the pending asbestos litigation. KACC
agreed to make certain payments on specified dates to KACC's
attorney Raymond J. Heslin, acting as escrow agent.
KACC also agreed not to disclose the contents of the Settlement
Agreement due to the sensitive and confidential nature of
information regarding settlement amounts.
As of KACC's bankruptcy filing, nearly US$3,700,000 was held in
trust by Mr. Heslin. Neither W&L nor KACC has taken any further
action with respect to the Settlement Agreement and no
processing or claim payments have occurred, Daniel J.
DeFranceschi, Esq., at Richards, Layton & Finger, in Wilmington,
Delaware, relates.
Mr. Heslin has indicated that he will return the funds to KACC
if W&L agrees or the Court authorizes the return. KACC has
requested W&L to permit Mr. Heslin to return the funds. As of
June 19, 2006, W&L has refused to do so, Mr. DeFranceschi says.
The Confirmation Order approves the rejection of the Settlement
Agreement, and any claim in respect of the rejection will
automatically be treated as a Channeled Personal Injury Claim,
Mr. DeFranceschi notes.
Claimants may seek payment only from the Asbestos PI Trust that
will be established on the Effective Date. To preserve equality
of treatment among similarly situated creditors, the funds
should be returned to KACC, Mr. DeFranceschi asserts.
In accordance with confidentiality restrictions contained in a
Settlement Agreement, KACC also requests authority to file a
copy of the Settlement Agreement under seal.
About Kaiser Aluminum
Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications. The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corporation -- filed
for chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No.
02-10429), and has sold off a number of its commodity businesses
during course of its cases. Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts. Lazard
Freres & Co. serves as the Debtors' financial advisor. Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors. On June 30, 2004, the Debtors
listed US$1.619 billion in assets and US$3.396 billion in debts.
(Kaiser Bankruptcy News, Issue No. 99; Bankruptcy Creditors'
Service, Inc., 609/392-0900)
===========
M E X I C O
===========
EL POLLO: Extends Expiration on Tender Offer to July 27, 2006
-------------------------------------------------------------
El Pollo Loco Inc. and EPL Intermediate Inc. disclosed that in
connection with the previously announced tender offer and
consent solicitation by El Pollo Loco for its 11 3/4% Senior
Notes Due 2013 and by Intermediate for its 14 1/2% Senior
Discount Notes Due 2014, the companies are extending the
expiration time of the offer to 5 p.m., New York City time, on
July 27, 2006.
As of June 26, 2006, El Pollo Loco had received tenders and
consents for US$125.726 million in aggregate principal amount of
the 11 3/4% Notes, representing approximately 100% of the
outstanding 11 3/4% Notes and Intermediate had received tenders
and consents for US$39.342 million in principal amount at
maturity of the 14 1/2% Notes, representing 100% of the
outstanding 14 1/2% Notes.
As previously announced, the requisite consents to adopt the
proposed amendments to the indentures governing the Notes have
been received, and supplemental indentures to effect the
proposed amendments described in the Offer to Purchase and
Consent Solicitations Statement, dated May 15, 2006 have been
executed. However, the amendments will not become operative
until the Notes are accepted for payment under the terms of the
offer.
The offer is subject to the satisfaction of certain conditions,
including:
-- consummation of the Common Stock Offering,
-- El Pollo Loco entering into a new credit facility,
-- a requisite consent condition,
-- minimum tender condition,
-- condition that each of the Offers be consummated and
-- that each of El Pollo Loco and Intermediate receives
consents from a majority of holders of each of the
11 3/4% Notes and the 14 1/2% Notes.
The detailed terms and conditions of the Offer are contained in
the Offer to Purchase. Requests for documents may be directed
to the information agent for the offer at:
Global Bondholder Services Corporation,
Tel: 866-937-2200.
Additional information concerning the Offer may be obtained by
contacting the dealer manager and solicitation agent for the
offer at:
Merrill Lynch, Pierce, Fenner & Smith Incorporated,
Tel: 212-449-4914 (collect)
888-ML4-TNDR (U.S. toll-free)
About El Pollo Loco
El Pollo Loco -- http://www.elpolloloco.com/-- pronounced
"L Po-yo Lo-co" and Spanish for "The Crazy Chicken," is the
United States' leading quick-service restaurant chain
specializing in flame-grilled chicken and Mexican-inspired
entrees. Founded in Guasave, Mexico, in 1975, El Pollo Loco's
long-term success stems from the unique preparation of its
award-winning "pollo" -- fresh chicken marinated in a special
recipe of herbs, spices and citrus juices passed down from the
founding family.
* * *
As reported in the Troubled Company Reporter on May 23, 2006,
Standard & Poor's Ratings Services expected to raise its
corporate credit rating on El Pollo Loco Inc. to 'B+' from 'B'
upon the successful completion of the company's planned IPO.
S&P said the outlook is stable.
Standard & Poor's also assigned a 'B+' rating, same as the
expected corporate credit rating, to the company's planned
US$200 million senior secured bank loan. A recovery rating of
'2' is also assigned to the loan, indicating the expectation for
substantial (80%-100%) recovery of principal in the event of a
payment default.
* * *
Moody's Investors Service upgraded El Pollo Loco, Inc.'s
corporate family rating to B1 from B3 and assigned B1 ratings to
the company's proposed US$200 million senior secured credit
facility following the company's proposed initial public
offering of shares of its common stock and planned refinancing
of its existing debt. At the same time, the SGL-2 Speculative
Grade Liquidity rating was affirmed. Moody's said the outlook
remains stable.
EMPRESAS ICA: Unit Inks 20-Yr. Concession to Modernize Highway
--------------------------------------------------------------
Empresas ICA, S.A. de C.V., disclosed that its subsidiary
Concesionaria de Vias Irapuato Queretaro, S.A. de C.V. aka
COVIQSA, signed a 20-year concession and service contract that
includes the modernization, widening, and conservation of the
Queretaro-Irapuato highway in the states of Queretaro and
Guanajuato. The Ministry of Transport and Communications --
Secretaria de Communicaciones y Transportes or SCT, awarded the
concession after an international public bidding process under
the Public/Private Partnership Structure mechanism. The total
value of the project is MXN1.465 billion, including MXN1.172
million in engineering, procurement, and construction work for
the modernization and widening. The balance includes financing,
maintenance, and operation costs during the modernization phase.
The Queretaro-Irapuato highway as a length of 108km, of which
93km will be modernized; it will be a toll-free road under the
PPS mechanism. Recovery of the investment will be accomplished
through an integrated quarterly payment made directly by the
SCT. Two parts make up the payment:
(1) payment for highway availability, based on achieving
minimum performance standards, established in the
concession and the services agreements; and
(2) payment based on traffic volume pursuant to the
concession agreement, which provides that the SCT will
pay a shadow tariff.
The SCT has divided the highway into 10 sections. It will pay
the concessionaire the availability payment for completion of
each section. The concessionaire will charge the second payment
based on traffic volume to SCT once the entire highway is
modernized and fully operational.
The contract includes:
-- the development of an overall plan,
-- the modernization and widening of the highway, and
its operation, maintenance, and conservation for the next
20 years by the concessionaire; and
-- the acquisition of the rights of way by the SCT.
The modernization and widening of the highway is scheduled to be
completed in October 2009.
ICA has established a special purpose company, Concesionaria de
Vias Irapuato Queretaro, S.A. de C.V., which will be the
concessionaire and will contract for the modernization,
operation, maintenance, and conservation of the highway. The
project will be financed principally by a project finance loan
that has been approved by an international financial institution
with operations in Mexico. The balance will be provided by ICA
as an equity contribution to the concessionaire. The integrated
quarterly payment from the SCT will provide the resources for
both the return on the investment in modernization, operation,
maintenance, and conservation, as well as the repayment of the
financing.
Since construction of the highway will be undertaken by ICA
subsidiaries, construction work will be reported as supplemental
information to the company's backlog, in order to reflect the
total volume of the work to be executed.
As announced last year, ICA is currently modernizing the 74km
Irapuato-La Piedad highway under the same PPS mechanism, which
is expected to create synergies with the Queretaro-Irapuato
highway.
Empresas ICA -- http://www.ica.com.mx/-- the largest
engineering, construction, and procurement company in Mexico,
was founded in 1947. ICA has completed construction and
engineering projects in 21 countries. ICA's principal business
units include civil construction and industrial construction.
Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.
* * *
Standard & Poor's assigned these ratings to Empresas ICA, with
stable outlook:
-- LT Foreign Issuer Credit B; and
-- LT Local Issuer Credit B.
GENERAL MOTORS: S&P Retains Negative Watch Despite Buyout Plan
--------------------------------------------------------------
Standard & Poor's Ratings Services disclosed that all its
ratings on General Motors Corp. --including the 'B' corporate
credit rating and the 'B+' bank loan rating, but excluding the
'1' recovery rating--remain on CreditWatch with negative
implications, where they were placed March 29, 2006.
The CreditWatch update follows General Motors' announcement that
approximately 35,000 hourly employees have agreed to participate
in its accelerated attrition program. Although up to 5,000
Delphi Corp. employees can return to General Motors, General
Motors seems poised to reach its 2008 goal of reducing 30,000
manufacturing jobs about two years early. The program will
reduce greatly the number of idled employees currently in the
long-term layoff pool known as the "JOBS Bank." General Motors
expects to take a net after-tax charge in the second quarter of
about US$3.8 billion, most of which is not expected to be cash.
The attrition program announcement bolsters General Motors'
progress in reducing labor costs as part of turning around its
troubled North American operations.
"Still, market share losses, and the need to execute on the
other cost-based aspects of the plan such as plant closings,
remain concerns," said Standard & Poor's credit analyst Robert
Schulz.
The most pressing near-term issue is resolving several issues
concerning General Motors' exposure to Delphi, its former unit
and an important supplier.
"We expect General Motors' ratings to remain on CreditWatch for
several more months," Mr. Schulz continued, "because court
hearings on Delphi's motion to reject its labor contracts were
adjourned until Aug. 11, and hearings on Delphi's request to
reject unprofitable supply contracts with General Motors have
also been postponed until the same date. But, we expect
negotiations between Delphi, the United Auto Workers, and
General Motors to continue."
Delphi has offered its employees an attrition program similar to
General Motors', and preliminary acceptance rates seem strong.
A lower Delphi headcount is likely to be an important factor
toward resolving General Motors' exposure to Delphi.
General Motors' pending secured bank deal is considered an
incremental positive for its liquidity, even prior to
establishment of the new bank facility. Standard & Poor's
believes General Motors' liquidity is adequate to meet near-term
funding requirements, including payments to participants in the
accelerated attrition program.
MERIDIAN AUTO: Files Compendium to First Amended Joint Plan
-----------------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates
delivered to the U.S. Bankruptcy Court for the District of
Delaware a compendium to their First Amended Joint Plan of
Reorganization on June 16, 2006.
The Plan Compendium contains Reorganized Meridian's:
1. Certificate of Incorporation, a full-text copy of which is
available for free at http://ResearchArchives.com/t/s?c5a
2. By-Laws
Meridian's By-Laws provides for the meetings of
stockholders, the designation of directors, the duties of
the officers, parties' right to indemnification and certain
corporate actions.
A full-text copy of the By-Laws is available for free at
http://ResearchArchives.com/t/s?c5b
3. Preferred Equity Offering Subscription Agreement
Each holder of an Allowed Class 4 Claim is entitled to
subscribe for a Pro Rata Share of Preferred Equity Offering
Shares.
A full-text copy of the Subscription Agreement for the
Preferred Equity Offering is available for free at
http://ResearchArchives.com/t/s?c5d
4. Preferred Equity Funding Agreement
The Debtors and Additional Committed Holders agree that:
-- Each of the Committed Holders will elect the Cash/Equity
Treatment and the Alternate Cash/Equity Treatment with
respect to its Committed First Lien Claims, and the
Debtors will cause cash and shares of Class A Convertible
Preferred Stock to be issued to each of the Committed
Holders in respect of its Committed First Lien Claims on
the Effective Date.
-- Meridian will cause to be issued to each of the Committed
Holders, on the Effective Date, shares of Class A
Convertible Preferred Stock having an aggregate Class A
Stated Value equal to the product of:
(A) US$1,400,000 and
(B) a fraction,
-- the numerator of which is the sum of:
(a) 20% of the amount of its Committed First Lien
Claims, and
(b) the product of:
(x) a fraction, the numerator of which is the
amount of its Committed Second Lien
claims and the denominator of which is
the aggregate amount of All Committed
Second Lien Claims, and
(y) US$15,000,000, and
-- the denominator of which is the sum of:
(a) 20% of the aggregate amount of All Committed
First Lien Claims, and
(b) US$15,000,000.
A copy of the Preferred Equity Funding Agreement is
available for free at http://ResearchArchives.com/t/s?c5e
5. Certificate of Designation for the Series A Cumulative
Convertible Preferred Stock, a copy of which is available
for free at http://ResearchArchives.com/t/s?c5f
6. Operative Terms of the Contingent Value Payment, a copy of
which is available for free at
http://ResearchArchives.com/t/s?c60
7. Principal Terms of the New Shareholders Agreement, a copy of
which is available for free at
http://ResearchArchives.com/t/s?c61
8. Litigation Trust Agreement (Avoidance Actions)
The Litigation Trust is established for the purposes of
pursuing all Avoidance Actions and all Reserved Actions and
distributing proceeds derived to the Beneficiaries.
A full-text copy of the Litigation Trust Agreement
(Avoidance Actions) is available for free at
http://ResearchArchives.com/t/s?c62
9. Litigation Trust Agreement (Committee Avoidance Action)
The Litigation Trust is established for the purposes of
pursuing the Lien Avoidance Action and distributing any
proceeds to:
(A) Holders of Prepetition First Lien Claims,
(B) Prepetition Second Lien Claims, and
(C) Prepetition General Unsecured Claims.
A full-text copy of the Litigation Trust Agreement
(Committee Avoidance Action) is available for free at
http://ResearchArchives.com/t/s?c63
10. Agreement of Plan and Merger entered into by the Michigan
and Delaware corporations of Meridian Automotive Systems,
Inc.
Michigan Meridian is the sole stockholder of Delaware
Meridian. The two parties agree that Michigan Meridian will
be merged with and into Delaware Meridian and the separate
existence of Michigan Meridian will cease.
A full-text copy of the Michigan-Delaware Merger is ]
available for free at http://ResearchArchives.com/t/s?c64
11. Michigan Merger Certificate, a full-text copy of which is
available for free at http://ResearchArchives.com/t/s?c65
12. Delaware Merger Certificate, a full-text copy of which is
available for free at http://ResearchArchives.com/t/s?c66
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. 31; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
MERIDIAN AUTO: Projected Data Underpinning 1st Amended Plan
-----------------------------------------------------------
The projected consolidated financial statements of Reorganized
Meridian Automotive Systems, Inc., and its debtor-affiliates
have been prepared based on a scenario, which would arise only
if the Plan is not consensual and the Class of Prepetition First
Lien Claims does not accept the Plan and the Debtors seek
confirmation of the Plan pursuant to Section 1129(b) of the
Bankruptcy Code.
Under Scenario II:
-- the emergence capital structure would be different than
the capital structure reflected in the projections filed
on May 26, 2006;
-- interest expense is based on:
(A) an estimated drawn Exit Term Loan A Credit Facility
in the aggregate principal amount of US$125,000,000,
(B) an Exit Term Loan B Credit Facility in the aggregate
principal amount of US$63,000,000,
(C) New Third Lien Notes in the aggregate principal
amount of US$106,000,000, and
(D) interest incurred on other funded indebtedness;
-- the Debtors assume that 50% of the Prepetition First
Lien Claims would elect the Cash/Equity Treatment of the
Alternate Cash/Equity Treatment under the Plan, and that
50% of the Prepetition First Lien Claims would elect or
the Cash/Note Treatment under the Plan; and
-- US$46,000,000 of Class A Convertible Preferred Stock
would be outstanding on the Effective Date,
US$15,000,000 of which would be issued pursuant to the
Equity offering.
Meridian Automotive Systems, Inc.
Projected Consolidated Balance Sheet (Unaudited)
(US$ in millions)
Projected Projected Projected
Emergence Dec. 2006 Dec. 2007
--------- --------- ---------
Total Current Assets $198.0 $177.2 $207.0
Property, Plant
& Equipment, net $187.8 $171.4 $146.9
Intangible & Other Assets $136.0 $135.2 $133.6
--------- --------- ---------
Total Assets $521.8 $483.7 $487.4
Total Current Liabilities $89.2 $69.9 $78.2
Total Debt $280.6 $284.3 $290.1
Other Non-Current
Liabilities $36.6 $36.6 $36.6
Stockholders' Equity $115.3 $93.0 $82.5
--------- --------- ---------
Total Liabilities &
Stockholders' Equity $521.8 $483.7 $487.4
Projected Projected
Dec. 2008 Dec. 2009
--------- ---------
Total Current Assets $222.1 $234.9
Property, Plant
& Equipment, net $118.3 $86.5
Intangible & Other Assets $132.0 $130.3
--------- ---------
Total Assets $472.4 $451.7
Total Current Liabilities $84.9 $87.9
Total Debt $304.8 $295.7
Other Non-Current
Liabilities $36.6 $36.6
Stockholders' Equity $46.1 $31.5
--------- ---------
Total Liabilities &
Stockholders' Equity $472.4 $451.7
Meridian Automotive Systems, Inc.
Projected Consolidated Statements of Operations (Unaudited)
(US$ in millions)
Projected Projected Projected Projected
Jul-Dec 06 Dec. 2007 Dec. 2008 Dec. 2009
---------- --------- --------- ---------
Total Sales $343.1 $803.6 $861.6 $854.5
Cost of Sales $326.9 $751.4 $802.7 $801.3
---------- --------- --------- ---------
Gross Profit $16.3 $52.1 $58.9 $53.2
Sales and
Administrative $10.9 $22.6 $22.7 $22.8
Other admin
expenses $1.9 $4.9 $5.7 $6.1
---------- --------- --------- ---------
Income from
Operations $3.4 $24.6 $30.5 $24.3
---------- --------- --------- ---------
Other Income $0.0 $0.0 $0.0 $0.0
Interest
Expense $21.8 $38.8 $39.6 $38.6
Restructuring
Expense $5.9 $0.0 $0.0 $0.0
---------- --------- --------- ---------
Income (Loss)
before tax ($24.3) ($14.1) ($9.0) ($14.3)
---------- --------- --------- ---------
Taxes $0.6 $1.2 $0.7 $0.2
---------- --------- --------- ---------
Net Income ($24.8) ($15.3) ($9.7) ($14.5)
Adjusted
EBITDAR $27.2 $74.6 $81.8 $76.4
Meridian Automotive Systems, Inc.
Projected Consolidated Statements of Cash Flows (Unaudited)
(US$ in millions)
Projected Projected Projected Projected
Jul-Dec 06 Dec. 2007 Dec. 2008 Dec. 2009
---------- --------- --------- ---------
Net income ($24.8) ($15.3) ($9.7) ($14.5)
Depreciation
& Other
Non-Cash
Adjustments $23.8 $50.0 $51.3 $52.1
Changes in
Working Capital ($11.5) ($19.9) ($6.9) $15.0
---------- --------- --------- ---------
Cash Flow from
Operations ($12.5) $14.8 $34.7 $52.6
Capital
Expenditures ($7.5) ($25.5) ($22.7) ($20.2)
---------- --------- --------- ---------
Cash Flow from
Investing ($7.5) ($25.5) ($22.7) ($20.2)
Debt
Borrowings $4.6 $12.0 ($10.8) ($7.9)
Other Debt
Changes $15.4 ($1.3) ($1.3) ($1.3)
---------- --------- --------- ---------
Cash Flow from
Financing $20.0 $10.7 ($12.0) ($9.1)
---------- --------- --------- ---------
Net Change in
Cash $0.0 $0.0 $0.0 $23.2
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. 31; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
PORTRAIT CORP: Eisner LLP Raises Going Concern Doubt
----------------------------------------------------
Eisner LLP in New York raised substantial doubt about Portrait
Corp. of America, Inc.'s ability to continue as a going concern
after auditing the company's consolidated financial statements
for the year ended Jan. 29, 2006. The auditor pointed to the
company's substantial net loss, negative working capital,
stockholders' deficiency, default of certain obligations, which
were due on June 15, 2006 and insufficient liquidity to meet
those obligations.
Portrait Corp. reported US$34,442,000 net loss on US$325,516,000
of sales for the year ended Jan. 29, 2006, compared to
US$29,740,000 net loss on US$323,553,000 of sales for the year
ended Jan. 30, 2005.
At Jan. 29, 2006, the Company's balance sheet showed
US$161,310,000 in total assets and US$351,130,000 in total
liabilities, resulting in a US$204,820,000 stockholders'
deficit.
The Company's Jan. 29 balance sheet also showed strained
liquidity with US$27,349,000 in total current assets available
to pay US$346,051,000 in total current liabilities coming due
within the next 12 months.
AgfaPhoto Default
Portrait Corp.'s total indebtedness to AgfaPhoto is
approximately US$22.8 million. About US$2.1 million is on open
account and is currently due and payable. Approximately US$20.7
million is subject to a letter agreement dated June 15, 2005, in
which AgfaPhoto agreed, under certain conditions, to defer any
collection action until June 15, 2006.
Further, AgfaPhoto has agreed to subordination terms with
respect to other debt of the Company that effectively limits
AgfaPhoto's ability to collect any of the US$22.8 million as a
secured creditor. On June 15, 2006, the Company's standstill
agreement with AgfaPhoto USA ended.
In that agreement, AgfaPhoto USA agreed that it would not take
any action to collect certain amounts owed by the Company for
photographic paper, film and chemicals.
The Company has asked AgfaPhoto USA to extend this agreement to
Sept. 30, 2006. While AgfaPhoto has stated that it would
request that extension from the bankruptcy trustee of its parent
company in Germany, there can be no assurance that an extension
will be given.
Also, to date, AgfaPhoto USA has been working with the Company
to resolve amounts owed to them, but there can be no assurance
that AgfaPhoto will not institute legal action to collect those
amounts.
Senior Notes Default
Each of the Senior Notes and Senior Subordinated Notes contain
cross-default provisions that can be triggered in the event the
agent, trustee, or holders, as applicable, should exercise their
rights to accelerate the due date of principal and interest
under any one of such notes or the prior senior secured credit
facility.
On June 15, 2006, Portrait Corp. did not make a US$687,500
interest payment due on its 133/4% Senior Subordinated Notes Due
2010. The 30-day grace period for payment of those interest
expired on June 14, 2006.
As a result, an event of default occurred with respect to the
Notes, which default also causes a cross-default under the
Company's credit agreement with its senior lender.
Portrait Corp. is currently in discussions with the holders of
the Notes and its senior lender regarding obtaining a
forbearance or similar agreement with respect to this interest
payment.
In the event that an agreement is not reached with the holders
of the Notes and Portrait Corp.'s senior lender, those holders
or senior lender will have the right to submit a notice to the
Company declaring all principal and interest and other amounts
due in respect of the Notes immediately due and payable.
A full-text copy of the Portrait Corp.'s annual report is
available for free at http://ResearchArchives.com/t/s?c41
Portrait Corporation of America, Inc., provides professional
portrait photography products and services to children, adults
and families in North America. The Company operates portrait
studios within Wal-Mart stores and Supercenters in the United
States, Canada, Mexico, Germany and the United Kingdom. The
Company also operates a modular traveling business providing
portrait photography services in additional retail locations and
to church congregations and other institutions.
=================
N I C A R A G U A
=================
* NICARAGUA: Inks Geothermal Development Accord with Iceland
------------------------------------------------------------
Nicaragua's foreign ministry told Business News Americas that
Foreign Minister Norman Caldera Cardenal has signed a
cooperation framework accord for geothermal development with
Gudmundur Eirksson, Iceland's ambassador to Nicaragua.
Minister Caldera told BNamericas that under the agreement, which
would last for five years, Iceland will collaborate with
Comision Nacional de Energia as well as with other government
agencies to establish the capacity for geothermal exploration
and generation.
"Iceland is an authority when it comes to geothermal power, not
only because it has abundant thermal deposits due its volcanic
topography, but above all because it knows how to take advantage
and develop these natural resources," BNamericas relates, citing
Minister Caldera.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
===========
P A N A M A
===========
* PANAMA: Inks Free Trade Accord with Chile
-------------------------------------------
Alejandro Ferrer, Panama's minister for commerce and industry,
has signed a free trade accord with Alejandro Foxley -- Chile's
foreign minister -- to cut 98% trade tariffs for 15 years in
Panama and 10 years in Chile, Prensa Latina reports.
Prensa Latina relates that among things the agreement covers
are:
-- access to markets,
-- trade,
-- investments,
-- transborder services,
-- bilateral cooperation, and
-- environment and conflict settlement.
The accord confirms Chile's political will to improve ties with
Latin American nations, Prensa Latina states, citing Minister
Foxley.
* * *
Fitch Ratings assigned these ratings on Panama:
Rating Rating Date
------ -----------
Country Ceiling BBB Apr. 8, 2005
Long Term IDR BB+ Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=====================
P U E R T O R I C O
=====================
ADELPHIA COMMUNICATIONS: Files Modified Plan of Reorganization
--------------------------------------------------------------
Adelphia Communications Corporation executed amendments to its
purchase agreements with Time Warner NY Cable and Comcast and is
filing a modified Chapter 11 bankruptcy Plan of Reorganization
with the U.S. Bankruptcy Court for the Southern District of New
York relating to the two joint ventures it holds with Comcast
Corporation.
Adelphia's Third Modified Fourth Amended Joint Plan of
Reorganization includes changes intended to facilitate
confirmation by addressing certain concerns expressed by various
bankruptcy constituents of the joint ventures, including their
prepetition lenders and the Creditors' Committee. The execution
of the amendments to the purchase agreements and the filing of
the modified Plan are a further step in facilitating completion
of the sale of substantially all of Adelphia's assets to Time
Warner NY Cable and Comcast as expeditiously as possible.
As reported in the Troubled Company Reporter on June 9, 2006,
under the expedited sale process, Adelphia's majority interests
in the joint ventures, Parnassos and Century-TCI, will be sold
to Comcast in connection with a confirmed Chapter 11 Plan of
Reorganization that provides for payment in full to the
creditors of the joint ventures, while substantially all of
Adelphia's remaining cable assets will be sold to Comcast and
Time Warner NY Cable under a court-approved asset sale under
Section 363 of the Bankruptcy Code. The sales of both the joint
venture interests and the remaining Adelphia assets are
conditioned on one another and expected to occur
contemporaneously.
In a ruling on June 16, 2006, the Court approved amended sale
procedures relating to the Section 363 sale process. On
June 21, 2006, Adelphia, Time Warner NY Cable and Comcast
entered into amendments to their respective purchase agreement,
as well as a Registration Rights Letter Agreement substantially
in the forms previously filed with the Bankruptcy Court. These
agreements provide for certain amended terms required under the
expedited sale transaction process. The termination and breakup
fee provisions included in the amendments to the purchase
agreements were approved in the June 16 ruling. The Court must
approve other terms in these amendments, including the sale of
the assets under Section 363 of the U.S. Bankruptcy Code. The
hearings to approve the terms, and to confirm the modified Plan
of reorganization relating to the two joint ventures, are
expected to be held in late June 2006.
Distributions to creditors of Adelphia entities outside the
Parnassos and Century-TCI joint ventures will not occur until
after the confirmation of separate plans of reorganization
relating to those entities, which Adelphia intends to seek
following completion of the sales. Until confirmation of such
separate plans of reorganization, the non-joint venture Adelphia
entities will remain in bankruptcy.
A full-text copy of the Company's Third Modified Fourth Amended
Joint Plan of Reorganization is available for free at:
http://ResearchArchives.com/t/s?bee
A full-text copy of the Amended Asset Purchase Agreement between
Adelphia Communications Corporation and Time Warner Cable Inc.
is available for free at:
http://ResearchArchives.com/t/s?c1d
A full-text copy of the Amended Asset Purchase Agreement between
Adelphia Communications Corporation and Comcast Corporation is
available for free at:
http://ResearchArchives.com/t/s?c18
About Adelphia
Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth largest
cable television company in the country. Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks. The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002. Those cases
are jointly administered under case number 02-41729. Willkie
Farr & Gallagher represents the ACOM Debtors.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.
=============
U R U G U A Y
=============
* URUGUAY: Wants to Broaden Bilateral Relations with Chile
----------------------------------------------------------
Uruguay told Prensa Latina on Tuesday that it wants to
strengthen bilateral relations with Chile.
According to Prensa Latina, Chile also said it is interested in
doing the same thing.
Prensa Latina reports that Uruguay's Vice President Rodolfo Nin
Novoa and the country's foreign minister, Reinaldo Gargano, met
with Alejandro Foxley -- Chile's foreign minister -- in
Santiago, Chile.
Minister Foxley told Prensa Latina that the meeting is part of
the two countries' common interest in a greater regional
integration and international collaboration, with both Uruguay
and Chile granting aid to the UN Stabilization Mission in Haiti.
Uruguay and Chile also discussed during the meeting the
importance of regional energy integration, Prensa Latina says.
Prensa Latina states that Ministers Gargano and Foxley has
committed to support the organization of international meetings,
including:
-- the 3rd Gathering of Foreign Ministers of the South
American Community of Nations in Chile in October, and
-- the Ibero American Summit in Uruguay in November.
Strengthening the relations between the countries broadens
regional integration, achieving a more coordinated international
cooperation, Prensa Latina relates.
* * *
As reported in the Troubled Company Reporter on May 26, 2006,
Fitch Ratings revised the Outlooks on the Oriental Republic
of Uruguay's Sovereign ratings to Positive from Stable. The
long-term foreign currency Issuer Default Rating is affirmed at
'B+', and the long-term local currency IDR is affirmed at 'BB-'.
The Short-term IDR is affirmed at 'B' and the Country Ceiling is
affirmed at 'BB-'.
* * *
Moody's upgraded Uruguay's long-term foreign currency rating to
B1 from B3 under the revised foreign currency ceilings on
May 24, 2006.
=================
V E N E Z U E L A
=================
CITGO PETROLEUM: Borrows Crude from Strategic Petroleum Reserve
-----------------------------------------------------------
Citgo Petroleum Corporation received approval for a small loan
of 250,000 barrels of crude oil from the Strategic Petroleum
Reserve.
The loan would help maintain production rates at Citgo's Lake
Charles Manufacturing Complex while the Calcasieu Ship Channel
remains closed.
The 425,000 barrel-per-day refinery has been producing at
slightly reduced rates in response to the closure of the channel
last week.
Headquartered in Houston, Texas, CITGO Petroleum Corporation
-- http://www.citgo.com/-- is owned by PDV America, an
indirect, wholly owned subsidiary of Petroleos de Venezuela
S.A., the state-owned oil company of Venezuela.
PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical and coal industry,
as well as planning, coordinating, supervising and controlling
the operational activities of its divisions, both in Venezuela
and abroad.
* * *
As reported at the Troubled Company Reporter on Feb. 16, 2006,
Standard and Poor's Ratings Services assigned a 'BB' rating on
CITGO Petroleum Corp.
CITGO PETROLEUM: May be Fined Over Oil Spill in Lake Charles
------------------------------------------------------------
Citgo Petroleum Corporation may be fined over an oil spill in
Lake Charles, MarketWatch reports.
Richard Metcalf -- the health, safety and environmental affairs
coordinator of the Louisiana Mid-Continent Oil and Gas
Association -- told MarketWatch, "Typically, anytime there's a
spill, the Coast Guard and/or state agencies will issue a fine."
According to MarketWatch, Mr. Metcalf said that the fine is
likely to be imposed by the Coast Guard or a state agency like
the Louisiana Department of Environmental Quality.
"Due to the size of this spill, they will review the oil spill
response plan," Mr. Metcalf told MarketWatch. The agencies will
evaluate the response plan of Citgo on the oil spill to decide
if the firm was prepared.
MarketWatch states that Citgo is expected to defend itself by
saying that the spill was resulted from extreme weather.
An investigation is still going on regarding the cause of the
spill, MarketWatch realets, citing a Citgo spokesperson.
Headquartered in Houston, Texas, CITGO Petroleum Corporation
-- http://www.citgo.com/-- is owned by PDV America, an
indirect, wholly owned subsidiary of Petroleos de Venezuela
S.A., the state-owned oil company of Venezuela.
PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical and coal industry,
as well as planning, coordinating, supervising and controlling
the operational activities of its divisions, both in Venezuela
and abroad.
* * *
As reported at the Troubled Company Reporter on Feb. 16, 2006,
Standard and Poor's Ratings Services assigned a 'BB' rating on
CITGO Petroleum Corp.
ELECTRICIDAD DE CARACAS: Issuing 80,781,982 Common Shares
---------------------------------------------------------
Electricidad de Caracas or EDC, AES Corp.'s Venezuelan
subsidiary, will be issuing up to US$3.76 million in shares for
public subscription from June 29 to July 14, El Universal
reports.
Electricidad de Caracas said in a statement that it will issue
80,781,982 common shares with a nominal value of US$0.05 per
unit.
The placing broker is Econoinvest Casa de Bolsa and distribution
agents are Activalores Sociedad de Corretaje, Merinvest Sociedad
de Corretaje and U21 Casa de Bolsa, El Universal says.
El Universal states that shares will be registered in the
Caracas Stock Exchange within five working days after the final
entry in the National Security Registry.
EDC is a vertically integrated utility in Venezuela, operating
in electricity distribution, transmission, and generation in the
capital city of Caracas and its metropolitan area. It is the
largest private electric utility in the country and is owned by
US-based AES Corp. (B+/Positive/--). EDC reported net profits
of US$20.6 million from January to March, versus net losses of
US$26.9 the same period in 2005.
S&P does not expect the support from the parent company to be a
meaningful credit factor for EDC.
* * *
On Feb 9, 2006, Standard & Poor's Ratings Services affirmed its
'B' long-term corporate credit rating on C.A. La Electricidad de
Caracas aka EDC and its 'B' rating on Electricidad de Caracas
Finance B.V.'s $260 million senior unsecured notes. S&P said
the outlook is stable.
On Feb. 3, 2006, S&P raised the long-term local and foreign
currency sovereign credit ratings on the Bolivarian Republic of
Venezuela to 'BB-' from 'B+'. The decision to raise the ratings
on Venezuela was supported by the continued sharp improvements
in Venezuela's external indicators, which are attributable to a
large current account surplus, a high level of international
reserves, and lower external debt in addition to buoyant
economic growth and the potential buyback of external debt.
PETROLEOS DE VENEZUELA: Creates US$100 Million Reserve Fund
-----------------------------------------------------------
Petroleos de Venezuela SA has provided US$100 million capital
for a reserve fund to maintain financial autonomy and
capitalization of social businesses in the oil sector, El
Universal says.
The fund will be managed by the Venezuelan Petroleum Corp. as a
trust. Funding of ventures, capped at US$465,000, will be in
accordance to set conditions and financial prospects of each
project, El Universal relates.
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: Will Supply Fuel Oil to Cammesa
-------------------------------------------------------
Petroleos de Venezuela will supply about 900,000 tons of fuel
oil to Cammesa, the wholesale power market administrator in
Argentina, from July 2006 to April 2007 at the New York price,
Cronista reports.
Cronista relates that Petroleos de Venezuela will also provide
transport from Venezuela.
Business News Americas relates that Argentina has turned to fuel
oil as a substitute to natural gas, which experienced a
shortfall, for its generation park. Fuel oil is less efficient
and dirtier substitute compared to natural gas.
Cronista says that Venezuela's state-run Petroleos de Venezuela
will supply the 60%, or 900,000 tonnes, of the demand,
continuing the supplies it started offering Argentina in 2004.
Repsol YPF's La Plata refinery will produce the oil to cover the
remaining 40%.
Petroleos de Venezuela charges up to US$6 per barrel more than
Repsol, but it offers long-term funding, Cronista relates.
Reports say that Repsol offered the New York reference price
minus US$2.30 a barrel.
Argentina spent about US$280 million on fuel oil last year.
This year, the country is expected to spend about US$390
million, BNamericas reports.
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.
* VENEZUELA: Director Says Country Not Ready for Monetary Reform
----------------------------------------------------------------
Domingo Maza Zavala, Central Bank of Venezuela's director, said
that current conditions do not favor a proposed monetary reform
in the country, El Universal reports.
The National Assembly Finance Committee met with the central
bank's board of directors to propose, among others, an integral
monetary reform that will curb inflation.
The monetary reform involves removing three zeroes off the
exchange value and calling the new currency "nuevo bolivar."
Mr. Maza Zavala asserted: "We have not yet taken the path
towards stable, steady economic growth. We are still fighting
inflation. There are so may things still pending, and taking
such a move at this time, in my view, would be untimely."
"A well-balanced fiscal policy needs to become steady, we need a
monetary policy that is not so expensive, a one-digit inflation
rate, steady economic growth at 4 or 5 percent, unemployment
down to 6 or 7 percent, among other things," Mr. Zavala was
quoted by El Universal as saying.
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* VENEZUELA: State Railway Firm Forms Consortium with Solcar
------------------------------------------------------------
Instituto Autonomo de Ferrocarriles del Estado or IAFE --
Venezuela's state railway firm -- has forged the Ferrolasa
consortium with Solcar, its Cuban counterpart, Agencia
Bolivariana de Noticias, Venezuela's state news agency, reports.
ABN relates that Solcar will advise the Venezuelan government on
the execution of a plan to improve the nation's railway network.
Ferrolasa will be based in Caracas and will launch operations in
August, Business News Americas reports.
BNamericas states that as agreed, Ferrolasa will:
-- conduct feasibility studies,
-- carry out new investment projects,
-- rehabilitate deteriorated sections of the Venezuelan rail
network,
-- oversee bidding processes, and
-- supervises negotiation of contracts with private firms.
IAFE will have a 51% share of Ferrolasa, says BNamericas.
Solcar will hold a 49% share.
Initial efforts under the consortium will be on the Puerto
Cabello-Barquisimeto railway, BNamericas relates.
* * *
Venezuela's foreign currency long-term debt is rated B2 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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