/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/060703.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, July 3, 2006, Vol. 7, Issue 130 Headlines A R G E N T I N A ESTUDIO DI FIORI: Claims Verification Deadline Is on Sept. 20 HEFAISTOS SA: Proofs of Claim Verification Is Until Sept. 4 HERNATAL SA: Trustee Will Verify Proofs of Claim Until Sept. 4 MCC SRL: Claims Verification Deadline Moved to Sept. 19 OLDEAR S.R.L.: Last Day for Claims Verification Is on July 5 PASTORINO, STEIREINSIS: Claims Verification Ends on Sept. 28 PUMBA SA: Trustee Will Verify Proofs of Claim Until Aug. 31 SEMILLERIA FLORENSA: Trustee Will Verify Claims Until Aug. 4 WAISCO SA: Trustee Has Until Sept. 6 to Verify Creditors' Claims YESAY SA: Last Day for Verification of Claims Is on Sept. 1 B A H A M A S WINN-DIXIE STORES: Files Chapter 11 Reorganization Plan B E R M U D A FOSTER WHEELER: Unit Inks Steam Generator Pact with Shanghai LORAL SPACE: Names Patrick Dewitt as CEO of Space Systems/Loral LORAL SPACE: Promotes John Celli to Pres. of Space Systems/Loral B R A Z I L ARACRUZ CELULOSE: Fitch Ups Foreign Currency Rating to BBB- BRASKEM INT'L: Fitch Ups Rating on US$150MM Senior Notes to BB+ BRASKEM SA: Fitch Ups Foreign Currency Rating to BB+ from BB COMPANHIA SIDERURGICA: Fitch Ups Foreign Currency Rating to BBB- CST OVERSEAS: Fitch Ups Foreign Curr. Rating to BBB- from BB+ COMPANHIA VALE: Fitch Ups Foreign Curr. Rating to BBB- from BB+ GERDAU ACOMINAS: Fitch Ups Foreign Curr. Rating to BBB- from BB+ GERDAU SA: Fitch Maintains BB+ Foreign Currency Issuer Rating GOL LINHAS: Fitch Ups Foreign Currency Rating to BB from BB- MRS LOGISTICA: Fitch Ups Foreign Currency Rating to BB from BB- PETROLEO BRASILEIRO: Fitch Ups Foreign Currency Rating to BB+ RIPASA SA: Fitch Upgrades Foreign Currency Rating to BB from BB- SAMARCO MINERACAO: Fitch Ups Foreign Currency Rating to BBB- TELE NORTE: Fitch Ups Foreign Currency Rating to BB from BB- TELEMAR NORTE: Fitch Ups Foreign Currency Rating to BB from BB- VOTORANTIM PARTICIPACOES: Fitch Ups Foreign Curr. Rating to BBB- C A Y M A N I S L A N D S AVENIR MASTER: Last Day to File Proofs of Claim Is on July 26 COMMONWEALTH INVESTMENTS: Proofs of Claim Must be In by July 26 CORNICE (LEVEL I): Shareholders Vote to Liquidate Business CORNICE (LEVEL II): Shareholders Voluntarily Liquidate Company CORNICE (LEVEL III): Shareholders Vote to Liquidate Company INDAIR LEASING: Deadline to File Proofs of Claim Is on July 26 HARTVILLE GROUP: Posts US$2MM Net Loss in Quarter Ended March 31 MESPIL FUND: Sets July 26 Deadline for Proofs of Claim Filing MESPIL MASTER: Creditors Must File Proofs of Claim by July 26 MPC COMMODITY: Proofs of Claim Must be Submitted by July 26 MPC COMMODITY FUND: Proofs of Claim Must be Filed by July 26 PRIMUS JAPAN: Proofs of Claim Filing Deadline Is on July 26 SUCCESSOR II: Moody's Rates US$73.2MM Class A Notes at B3 SUCCESSOR IV: Moody's Rates US$30MM Series 1 Class A Notes at B3 SUCCESSOR CAL: Moody's Rates US$47.5MM Notes Due 2008 at Ba3 SUCCESSOR EURO: Moody's Assigns Low B Ratings on Variable Notes SUCCESSOR HURRICANE: Moody's Puts Low B Ratings on Three Notes SUCCESSOR JAPAN: Moody's Puts Low B Ratings on Variable Notes C H I L E CELLSTAR CORP: Extends Agreements with Motorola in LatAm & US C O L O M B I A AES CHIVOR: S&P Says B+ Ratings Reflect Volatile Cash Flow BAVARIA SA: To Sell Juice Business for US$55.3MM to Postobon CENTRAGAS-TRANSPORTADORA: Enron Sells 50% Stake in Company COLOMBIA TELECOM: Investing COP6BB for Barranguilla Maintenance * COLOMBIA: Moody's Retains Ba2 Foreign Currency Rating C U B A * CUBA: Says Sugar Sector Won't Attain Harvest Goals D O M I N I C A N R E P U B L I C BANCO INTERCONTINENTAL: Fraud Trial Continues FALCONBRIDGE LTD: Contests Xstrata Application to Superior Court E C U A D O R PETROECUADOR: Increasing Windfall Revenue by at Least 50% * ECUADOR: Banana Growers Mulls Possibility of Holding Strike G U A T E M A L A * GUATEMALA: Faces Anti-FTA Demonstrations H A I T I * HAITI: President Wants Re-Entry to Caribbean Community H O N D U R A S * HONDURAS: Banana Growers Want to Sell Crops to China J A M A I C A KAISER ALUMINUM: Court Approves ACE Insurers Settlement Accord M E X I C O BALLY TOTAL: Files 2005 Annual & First Quarter 2006 Fin. Results EAGLEPICHER INC: Ohio Court Confirms Plan of Reorganization EMPRESAS ICA: Delays Filing of Annual Report on Form 20-F GENERAL MOTORS: S&P Holds Neg. Watch on B Corp. Credit Rating MERIDIAN AUTOMOTIVE: Has Until July 31 to File Chapter 11 Plan P A N A M A * PANAMA: Wants to Negotiate Payment Terms with Chiquita Brands P U E R T O R I C O ADELPHIA COMMS: Files May 2006 Monthly Operating Report MERIDIAN AUTO: Filing 3rd Amended Plan & Disclosure Statement PREFERRED HEALTH: Moody's Rates Proposed US$185-Mil. Loan at B1 UNIVISION COMMS: S&P Downgrades Senior Unsecured Notes to BB- T R I N I D A D & T O B A G O BWIA WEST: Lacks Proper Managerial Systems, Says Union Head U R U G U A Y PETROLEO BRASILEIRO: Acquires 51% Share in Gaseba for US$11 Mil. * URUGUAY: State Firm Invests US$2.16MM to Set Up Power Meters V E N E Z U E L A PETROLEOS DE VENEZUELA: Inks Training Accord with University SIDERURGICA DEL TURBIO: Concludes US$113 Million Refinancing - - - - - ================= A R G E N T I N A ================= ESTUDIO DI FIORI: Claims Verification Deadline Is on Sept. 20 ------------------------------------------------------------- Gisela Mara Corradini, the court-appointed trustee for Estudio Di Fiori Hermanos S.R.L.'s bankruptcy case, will verify creditors' proofs of claim until Sept. 20, 2006, La Nacion reports. Creditors who fail to present their proofs of claims won't receive any post-liquidation distribution. Court No. 6 in Buenos Aires declared Estudio de Fiori bankrupt at the request of Silvia De Carrere, whom it owes US$23,914.32. Clerk No. 11 assists the court in this case. The debtor can be reached at: Estudio de Fiori S.R.L. Peru 457 Buenos Aires, Argentina The trustee can be reached at: Gisela Mara Corradini Albania 4518 Buenos Aires, Argentina HEFAISTOS SA: Proofs of Claim Verification Is Until Sept. 4 ----------------------------------------------------------- Court-appointed trustee Ruben Leonardo Kwasniewski will verify creditors' proofs of claim against bankrupt company Hefaistos S.A. until Sept. 4, 2006, Infobae reports. Mr. Kwasniewski will present the validated claims in court as individual reports on Oct. 17, 2006. A general report that contains an audit of Hefaistos' accounting and banking records will follow on Nov. 28, 2006. The debtor can be reached at: Hefaistos S.A. Tte. Gral. Juan Domingo Peron 318 Buenos Aires, Argentina The trustee can be reached at: Ruben Leonardo Kwasniewski Montevideo 536 Buenos Aires, Argntina HERNATAL SA: Trustee Will Verify Proofs of Claim Until Sept. 4 -------------------------------------------------------------- Juan Carlos Alvarez, the court-appointed trustee for Hernatal S.A.'s bankruptcy case, will verify creditors' proofs of claim until Sept. 4, 2006, La Nacion reports. Creditors who fail to present their proofs of claim won't receive any post-liquidation distribution. Court No. 8 in Buenos Aires declared Hernatal S.A. bankrupt at the behest of Union Cortadores de la Indumentaria, which it owes US$2,163.44. Clerk No. 16 assists the court in this case. The debtor can be reached at: Hernatal S.A. A.Olmos 1239 Buenos Aires, Argentina The trustee can be reached at: Juan Carlos Alvarez Cordoba 1522 Buenos Aires, Argentina MCC SRL: Claims Verification Deadline Moved to Sept. 19 ------------------------------------------------------- Rut Noemi Alfici, the court-appointed trustee for MCC S.R.L.'s bankruptcy case, will verify proofs of claim until Sept. 19, 2006. The verification deadline was previously set for May 31, 2006, Infobae reports. The submission of the individual reports on the verified claims has been moved to Nov. 2, 2006, from July 27, 2006. The presentation of the general report on the case has also been rescheduled to Dec. 15, 2006, from Sept. 8, 2006. The trustee can be reached at: Rut Noemi Alfici Rodriguez Pena 565 Buenos Aires, Argentina OLDEAR S.R.L.: Last Day for Claims Verification Is on July 5 ------------------------------------------------------------ A court-appointed trustee, overseeing Oldear S.R.L.'s bankruptcy proceeding, will verify creditors' proofs of claim until July 5, 2006. Creditors who fail to present their proofs of claim won't receive any post-liquidation distribution. The verified claims will be submitted in court as individual reports on Sept. 1, 2006. A general report containing an audit of Oldear's accounting and banking records will follow on a date that is yet to be disclosed. A court in San Lorenzo, Santa Fe, handles the proceeding. The debtor can be reached at: Oldear S.R.L. Avenida San Martin 1490, San Lorenzo Santa Fe, Argentina PASTORINO, STEIREINSIS: Claims Verification Ends on Sept. 28 ------------------------------------------------------------ Ernesto Higueras, the court-appointed trustee for Pastorino, Steireinsis y Cabrera S.R.L.'s bankruptcy case, will verify creditors' proofs of claim until Sept. 28, 2006, La Nacion reports. Creditors who fail to present their proofs of claims won't receive any post-liquidation distribution. Court No. 3 in Buenos Aires declared Pastorino, Steireinsis bankrupt at the request of Miguel Garcia, whom it owes US$16,292. Clerk No. 5 assists the court in this case. The debtor can be reached at: Pastorino, Steireinsis y Cabrera S.R.L. Chile 1165/67 Buenos Aires, Argentina The trustee can be reached at: Ernesto Higueras Sanchez de Loria 1944 Buenos Aires, Argentina PUMBA SA: Trustee Will Verify Proofs of Claim Until Aug. 31 ----------------------------------------------------------- Court-appointed trustee Pablo Ernesto Aguilar will verify creditors' proofs of claim against bankrupt company Pumba S.A. until Aug. 31, 2006, Infobae reports. Mr. Aguilar will present the validated claims in court as individual reports on Oct. 13, 2006. A general report that contains an audit of Pumba's accounting and banking records will follow on Nov. 24, 2006. Court No. 3 in Buenos Aires declared Pumba S.A. bankrupt after it has defaulted on its obligations on November 2004. Clerk No. 5 assists the court in the proceeding. The debtor can be reached at: Pumba S.A. Montevideo 666 Buenos Aires, Argentina The trustee can be reached at: Pablo Ernesto Aguilar Hipolito Yrigoyen 1516 Buenos Aires, Argentina SEMILLERIA FLORENSA: Trustee Will Verify Claims Until Aug. 4 ------------------------------------------------------------ Julio Esteban Gavatorta, the court-appointed trustee for Semilleria Florensa S.A.'s reorganization proceeding, will verify creditors' proofs of claim until Aug. 4, 2006, Infobae reports. Mr. Gavatorta will present the validated claims in court as individual reports on Sept. 15, 2006. A general report that contains an audit of Semilleria Florensa's accounting and banking records will follow on Oct. 27, 2006. Creditors will cast their votes on a settlement plan that Semilleria Florensa will lay on the table during an informative assembly. The debtor can be reached at: Semilleria Florensa S.A. Dean funes 669, Ciudad de Cordoba Cordoba, Argentina The trustee can be reached at: Julio Esteban Gavatorta 9 de Julio 151 Galeria Libertad, Ciudad de Cordoba Cordoba, Argentina WAISCO SA: Trustee Has Until Sept. 6 to Verify Creditors' Claims ---------------------------------------------------------------- Marcelo Carlos Rodriguez, the court-appointed trustee for Waisco S.A.'s bankruptcy case, will verify creditors' proofs of claim until Sept. 6, 2006, La Nacion reports. Creditors who fail to present their proofs of claim won't receive any post-liquidation distribution. Court No. 5 in Buenos Aires declared Waisco S.A. bankrupt at the request of Florencio Padilla, whom it owes US$13,771.91. Clerk No. 10 assists the court in this case. The debtor can be reached at: Waisco S.A. San Benito de Palermo 1686 Buenos Aires, Argentina The trustee can be reached at: Marcelo Carlos Rodriguez Cerrito 146 Buenos Aires, Argentina YESAY SA: Last Day for Verification of Claims Is on Sept. 1 ----------------------------------------------------------- Silvia Trombetta, the court-appointed trustee for Yesay S.A.'s bankruptcy case, will verify creditors' proofs of claim until Sept. 1, 2006, La Nacion reports. Creditors who fail to present their proofs of claim won't receive any post-liquidation distribution. Court No. 12 in Buenos Aires declared Yesay S.A. bankrupt at the behest of Jose Beneyto, whom it owes US$28,722.30. Clerk No. 23 assists the court in this case. The debtor can be reached at: Yesay S.A. Padre Monte Carballo 1628 Buenos Aires, Argentina The trustee can be reached at: Silvia Trombetta Sarmiento 2226 Buenos Aires, Argentina ============= B A H A M A S ============= WINN-DIXIE STORES: Files Chapter 11 Reorganization Plan ------------------------------------------------------- Winn-Dixie Stores, Inc. filed its proposed Plan of Reorganization and related Disclosure Statement with the U.S. Bankruptcy Court for the Middle District of Florida on June 29, 2006. With this filing, Winn-Dixie is positioned to emerge from Chapter 11 protection as soon as late October. Winn-Dixie expects to emerge from its reorganization with sufficient financing and liquidity to make significant investments in its current store base, to selectively open new stores, and to take other actions to position the business to compete effectively in its markets over the next several years. The company also expects to emerge with only a minimal amount of long- term debt on its balance sheet. The proposed Plan of Reorganization represents the culmination of extensive negotiations with various creditors and creditor groups in Winn- Dixie's Chapter 11 cases. Creditors have been divided over whether these cases should be substantively consolidated or not. Litigation of that issue would have been complex and expensive, delaying Winn-Dixie's emergence from Chapter 11 for a substantial period of time. Accordingly, the Official Committee of Unsecured Creditors, with Winn-Dixie's support, successfully negotiated a settlement of the substantive consolidation issue. The Creditors Committee and the company have garnered the support of ad hoc committees representing the interests of trade vendors and retirees. Winn- Dixie's Plan of Reorganization incorporates the substantive consolidation settlement. US$725 Million Exit Financing Winn-Dixie received a commitment for up to US$725 million in exit financing from Wachovia Bank. The exit financing, which will replace the company's current debtor-in-possession credit facility on the effective date of a Plan of Reorganization, will increase Winn-Dixie's cash availability substantially. The financing is subject to the satisfaction of customary conditions. "The filing of the Plan of Reorganization and Disclosure Statement represents an important milestone in our Chapter 11 cases," Winn-Dixie President and Chief Executive Officer Peter Lynch said. "We are hopeful that all parties involved in our Chapter 11 cases will agree that this plan represents an appropriate resolution of a variety of complex issues, including potential disputes regarding substantive consolidation." "Winn-Dixie now is positioned to emerge from bankruptcy as soon as late October," Mr. Lynch continued. "Upon emergence, Winn- Dixie will be in a stronger and more financially stable position. We will have only a minimal amount of long- term debt on our balance sheet and, between our projected cash flow and new exit financing, we will be able to make significant investments in our stores and our business to ensure that we can continue to provide outstanding service and products to our customers and compete effectively in our markets. "I want to thank our Associates for their unwavering support during this process. Their perseverance and commitment to help Winn-Dixie get better all the time played a significant role in positioning us to emerge in such a positive way. We are also extremely appreciative of our customers and our partners in the vendor and real estate communities for their continued loyalty to Winn-Dixie." Business Plan The Disclosure Statement filed includes a discussion of Winn- Dixie's five-year business plan, which is designed to position the company to compete successfully by delivering high-quality products and customer service with competitive pricing. The business plan highlights the many actions the company has already taken to enhance its operational and financial performance. These include numerous merchandising and marketing initiatives, such as a focus on improving the perishables offering to reinforce the stores' image of freshness and quality and communicating the branding message of "Getting better all the time" to reflect the improvements that are being made in the stores and throughout the company. Other major completed actions include a reduction of the store footprint to focus on regions where Winn-Dixie's market share and profitability provide the best foundation for growth, a major redesign of the field and corporate overhead structure, and an annual cost reduction of approximately US$100 million. As a result of these initiatives, Winn-Dixie has reported improved financial results and sales growth in recent periods. For the quarters ended Jan. 11, 2006, and April 15, 2006, the company reported year-over-year increases in identical store sales of 7.3% and 6.7%, respectively. In its business plan, Winn-Dixie projects additional growth in revenue (fueled by continued increases in identical store sales and, beginning in 2008, new store openings), gross margin and EBIDTA (earnings before interest, taxes, depreciation and amortization) during the five-year period. The Disclosure Statement also includes information about the proposed Plan of Reorganization, financial estimates regarding the company's reorganized business enterprise value, and events leading up to and during the company's Chapter 11 cases. Approval of the Disclosure Statement and related voting solicitation procedures, which Winn-Dixie will seek at a Bankruptcy Court hearing scheduled for Aug. 4, 2006, will permit the company to solicit acceptances for the proposed Plan of Reorganization and seek confirmation of the proposed Plan of Reorganization by the Bankruptcy Court. Assuming these milestones are achieved, Winn-Dixie expects to emerge from Chapter 11 reorganization as soon as late October 2006. The company's Chapter 11 cases are being presided over by the Honorable Jerry A. Funk, U.S. Bankruptcy Judge for the Middle District of Florida. "In the 16 months since Winn-Dixie filed for Chapter 11 protection, the company has made tremendous progress in addressing its operational and financial challenges," Mr. Lynch said. "In particular, there has been a tangible improvement in customer service, Associate morale, and the quality of the product offering -- particularly in perishables. All of this has led to significant increases in identical store sales in recent months and improving gross margin. I look forward to seeing what our talented and dedicated Associates can accomplish once they are no longer held back by the constraints of Chapter 11." Details of Proposed Plan of Reorganization The Plan of Reorganization and Disclosure Statement may be modified prior to the approval of the Disclosure Statement and as a result of the confirmation process. Key elements of the Plan of Reorganization, as currently proposed and subject to approval by the Bankruptcy Court, include: * The company and its subsidiaries will be deemed substantively consolidated for purposes of the Plan of Reorganization and distribution under the Plan of Reorganization in accordance with the settlement negotiated by the Creditors Committee, which include different levels of recovery for different categories of unsecured creditors, based on their relative rights and the strengths of their positions on the substantive consolidation issue and other matters. * Substantially all of the unsecured liabilities of the company will be discharged in exchange for distribution of common equity of the reorganized company, allocated to the unsecured creditors in accordance with the substantive consolidation compromise. * A portion of the common equity of the reorganized company will be set aside for use in a long-term incentive plan to be provided to certain key Winn-Dixie Associates. That plan may consist of a combination of stock grants and options. The participants in that plan and the awards for each participant will generally be determined by a newly constituted Board of Directors. * On the effective date of the Plan of Reorganization, a new Board of Directors will be appointed. The initial New Board will be comprised of nine directors. * Administrative claims and priority claims will be paid in full as required by the Bankruptcy Code, unless otherwise agreed by the holders of such claims. Secured claims may be reinstated on original terms, satisfied on deferred payment terms, or paid in full at the election of the company. * Certain creditors with claims under US$3,000, including creditors who elect to reduce their claims to US$3,000, will receive cash payments equal to 67% of the amount of their claims. Creditors with claims under US$100 will be paid in cash, in full. * Current holders of Winn-Dixie's equity will not receive any distributions following emergence and their equity interests will be cancelled once the Plan of Reorganization becomes effective. Similarly, subordinated claims, including stock-related claims, will not receive any distributions and will be discharged. CEO Retention The Winn-Dixie Board believes it is in the best interest of the reorganized company to enter into a new employment agreement with Mr. Lynch, pursuant to which he will continue to serve as the President and Chief Executive Officer of Winn-Dixie after the Effective Date of the Plan of Reorganization. Mr. Lynch has expressed a strong desire to continue serving in these roles after the company emerges from Chapter 11. To this end, the Winn-Dixie Board, Creditors Committee and Mr. Lynch are negotiating the terms of a new employment agreement for Mr. Lynch. His current retention agreement expires on Aug. 31, 2006. About Winn-Dixie 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. ============= B E R M U D A ============= FOSTER WHEELER: Unit Inks Steam Generator Pact with Shanghai ------------------------------------------------------------ Foster Wheeler Ltd. disclosed that Foster Wheeler North America Corp., a unit of its Global Power Group, has entered into a contract with Shanghai Boiler Works, Ltd., a unit of Shanghai Electric Corporation, to provide an advanced technology license for arch-fired subcritical and supercritical steam generators. The value of the initial fees will be included in the company's second-quarter 2006 bookings, and ongoing royalty payments will be booked over the fifteen-year agreement period. Foster Wheeler's leading arch-fired design steam generator technology and overall boiler design "know-how" offers China's growing power market a state-of-the-art solution for firing difficult-to-burn low volatile coals in large-scale utility-size steam generators, with high efficiency and reduced emissions. In addition to the Chinese market where Shanghai Boiler Works Ltd. will lead the contracting activities, Foster Wheeler and Shanghai Boiler Works Ltd. have agreed to cooperate for projects outside China, with Foster Wheeler providing design packages and other project support. "The award of this contract further extends the relationship between Foster Wheeler and Shanghai Boiler Works, which dates back over 15 years for projects in China, Asia and other parts of the world," said Raymond J. Milchovich, chairman, president and CEO of Foster Wheeler Ltd. "This contract opens up additional markets for Foster Wheeler in China and also enhances our overall capability and cost-competitiveness for projects outside China. Our two companies each bring complementary strengths: Foster Wheeler has considerable arch-fired experience in China, including the direct sale and license sale of over 40 boilers and 15,000 electric megawatts of power, and Shanghai Boiler Works Ltd. is a leading presence in the Chinese power market, having placed over 60,000 MWe of capacity in service over the past several years." About Foster Wheeler Headquartered in Hamilton, Bermuda, Foster Wheeler Ltd. -- http://www.fwc.com/-- is a global company offering, through its subsidiaries, a broad range of engineering, procurement, construction, manufacturing, project development and management, research and plant operation services. Foster Wheeler serves the refining, upstream oil and gas, LNG and gas-to-liquids, petrochemical, chemicals, power, pharmaceuticals, biotechnology and healthcare industries. At Dec. 31, 2005, Foster Wheeler's balance sheet showed a US$341,796,000 equity deficit compared to a US$525,565,000 equity deficit on Dec. 31, 2004. * * * As reported in the Troubled Company Reporter on May 25, 2006, Standard & Poor's Ratings Services raised Foster Wheeler's corporate credit rating to to B+ from B- and its senior secured notes rating to B+ from CCC+. At the same time, Standard & Poor's assigned its 'BB-' bank loan rating and '1' recovery rating to the company's five-year, US$250 million credit facility due 2010. * * * On May 26, 2006, Moody's Investors Service upgraded Foster Wheeler's corporate family rating to B1 from B3 and assigned a Ba3 rating to FWC's US$250 million senior secured bank revolving credit facility. The rating outlook is changed to Positive. LORAL SPACE: Names Patrick Dewitt as CEO of Space Systems/Loral --------------------------------------------------------------- Loral Space & Communications Inc. named Patrick DeWitt as chief executive officer of Loral's satellite manufacturing subsidiary, Space Systems/Loral or SS/L. Mr. DeWitt, was most recently president of SS/L, where he has led the company through one of its most successful periods in the company's history. Since 2003, SS/L has booked 12 new commercial satellite awards, more than any other satellite manufacturer. He has held senior management positions with SS/L and its predecessor companies since 1973. Mr. DeWitt earned his degree in business administration from San Jose State University. "Pat DeWitt successfully led SS/L through a difficult period in the satellite manufacturing industry, marked by an adverse economic environment, strong competition and ever-evolving technologies," said Michael B. Targoff, chief executive officer, Loral Space & Communications. "In his new role as CEO, I'm confident Pat will keep leading SS/L to continued successful growth." About Space/Systems Loral Headquartered in Palo Alto, Calif., Space Systems/Loral - http://www.ssloral.com/ -- is a premier designer, manufacturer, and integrator of powerful satellites and satellite systems. SS/L also provides a range of related services that include mission control operations and procurement of launch services. The company has an international base of commercial and governmental customers whose applications include broadband digital communications, direct-to-home broadcast, defense communications, environmental monitoring, and air traffic control. SS/L satellites have amassed more than 1,300 years of reliable on-orbit service. SS/L is ISO 9001:2000 certified. About Loral Space Loral Space & Communications -- http://www.loral.com/-- is a satellite communications company. It owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, distribute broadband data, and provide access to Internet services and other value-added communications services. Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to- home television, broadband communications, wireless telephony, weather monitoring and air traffic management. The Company and various affiliates filed for chapter 11 protection (Bankr. S.D.N.Y. Case No. 03-41710) on July 15, 2003. Stephen Karotkin, Esq., and Lori R. Fife, Esq., at Weil, Gotshal & Manges LLP, represented the Debtors in their successful restructuring and prosecution of their Fourth Amended Joint Plan of Reorganization to confirmation on Aug. 1, 2005. As of Dec. 31, 2004, the Company listed assets totaling approximately US$1.2 billion and liabilities totaling approximately US$2.3 billion. LORAL SPACE: Promotes John Celli to Pres. of Space Systems/Loral ---------------------------------------------------------------- Loral Space & Communications Inc. promoted John Celli to president and chief operating officer of Loral's satellite manufacturing subsidiary, Space Systems/Loral (SS/L). John Celli, previously executive vice president of the company, will succeed Mr. Patrick DeWitt, who has been promoted chief executive officer of SS/L, as president. With nearly 30 years of experience, Mr. Celli, is a veteran of the satellite industry. Starting in 2001, Celli served as SS/L's senior vice president of engineering, manufacturing and test operations, where he was responsible for the development, manufacturing, testing and procurement for all SS/L satellites, as well as managing the company's materiel, information systems and facilities organizations. He originally joined the company in 1981 as an antenna mechanical engineer and has held increasingly important roles with the company. Before joining SS/L, Mr. Celli held various engineering and project management roles with the Space and Ground Systems division of Alenia S.P.A. In addition, from 1975 to 1980 he taught mechanical engineering at the University of Rome. Mr. Celli holds a master's degree in mechanical engineering from the University of Rome. About Space/Systems Loral Headquartered in Palo Alto, Calif., Space Systems/Loral - http://www.ssloral.com/ -- is a premier designer, manufacturer, and integrator of powerful satellites and satellite systems. SS/L also provides a range of related services that include mission control operations and procurement of launch services. The company has an international base of commercial and governmental customers whose applications include broadband digital communications, direct-to-home broadcast, defense communications, environmental monitoring, and air traffic control. SS/L satellites have amassed more than 1,300 years of reliable on-orbit service. SS/L is ISO 9001:2000 certified. About Loral Space Loral Space & Communications -- http://www.loral.com/-- is a satellite communications company. It owns and operates a fleet of telecommunications satellites used to broadcast video entertainment programming, distribute broadband data, and provide access to Internet services and other value-added communications services. Loral also is a world-class leader in the design and manufacture of satellites and satellite systems for commercial and government applications including direct-to- home television, broadband communications, wireless telephony, weather monitoring and air traffic management. The Company and various affiliates filed for chapter 11 protection (Bankr. S.D.N.Y. Case No. 03-41710) on July 15, 2003. Stephen Karotkin, Esq., and Lori R. Fife, Esq., at Weil, Gotshal & Manges LLP, represented the Debtors in their successful restructuring and prosecution of their Fourth Amended Joint Plan of Reorganization to confirmation on Aug. 1, 2005. As of Dec. 31, 2004, the Company listed assets totaling approximately US$1.2 billion and liabilities totaling approximately US$2.3 billion. =========== B R A Z I L =========== ARACRUZ CELULOSE: Fitch Ups Foreign Currency Rating to BBB- ----------------------------------------------------------- Fitch Ratings upgraded Aracruz Celulose S.A.'s foreign currency rating to BBB- with a stable outlook, from BB+ with a positive outlook. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. BRASKEM INT'L: Fitch Ups Rating on US$150MM Senior Notes to BB+ --------------------------------------------------------------- Fitch Ratings upgraded its rating on Braskem International Ltd.'s US$150 million senior unsecured notes due 2015 to BB+ from BB. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. BRASKEM SA: Fitch Ups Foreign Currency Rating to BB+ from BB ------------------------------------------------------------ Fitch Ratings upgraded these ratings of Braskem S.A.: -- Foreign Currency IDR: To BB+ Rating with Stable Outlook, from BB Rating with Positive Outlook; -- US$525 million Sr. Unsecured notes due 2008, 2014: To BB+, from BB; -- US$350 million Perpetual Bonds: To BB+, from BB; -- National Long-term Rating: To 'AA(bra)' from 'AA-(bra)'; and -- BRL600 million 12th and 13th Debenture Issuances due 2009 and 2010: To 'AA(bra)' from 'AA-(bra)'. These rating actions follow Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. COMPANHIA SIDERURGICA: Fitch Ups Foreign Currency Rating to BBB- ---------------------------------------------------------------- Fitch Ratings upgraded these ratings of Companhia Siderurgica de Tubarao aka CST: -- Foreign Currency IDR: To BBB- with Stable Outlook, from BB+ with Positive Outlook; and -- National Long-term Rating: To 'AA(bra)' from 'AA-(bra)'; These rating actions follow Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. CST OVERSEAS: Fitch Ups Foreign Curr. Rating to BBB- from BB+ ------------------------------------------------------------- Fitch Ratings upgraded CST Overseas' foreign currency rating to BBB- with a stable outlook, from BB+ with a positive outlook. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. COMPANHIA VALE: Fitch Ups Foreign Curr. Rating to BBB- from BB+ --------------------------------------------------------------- Fitch Ratings upgraded Companhia Vale do Rio Doce aka CVRD's foreign currency rating to BBB- with a stable outlook, from BB+ with a positive outlook. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. GERDAU ACOMINAS: Fitch Ups Foreign Curr. Rating to BBB- from BB+ ---------------------------------------------------------------- Fitch Ratings upgraded these ratings of Gerdau Acominas S.A.: -- Foreign Currency IDR: To BBB- with Stable Outlook, from BB+ with Positive Outlook; and -- National Long-term Rating: To 'AA+(bra)' from 'AA(bra)'. These rating actions follow Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. GERDAU SA: Fitch Maintains BB+ Foreign Currency Issuer Rating ------------------------------------------------------------- Fitch Ratings upgraded to 'BBB-' from 'BB+' the US$600 million 8.875% guaranteed perpetual senior notes issued by Gerdau S.A. in September 2005. Fitch has also upgraded to 'BBB-' from 'BB+' the rating of the proposed senior unsecured 10-year bond to be issued by GTL Trade Finance Inc., a wholly owned subsidiary of Gerdau. In addition, Fitch maintains a 'BB+' foreign currency IDR for Gerdau. The Rating Outlook is Stable. These ratings actions follow Fitch's upgrade of the foreign currency issuer default rating of Gerdau's Brazilian operating subsidiary, Gerdau Acominas S.A. to 'BBB-' from 'BB+'. Gerdau and its four majority-owned Brazilian operating subsidiaries: -- Acominas, -- Gerdau Acos Longos S.A., -- Gerdau Acos Especiais S.A. and -- Gerdau Comercial de Acos S.A.; unconditionally and irrevocably, jointly and severally guarantee the perpetual notes and bonds. The retained BB+ foreign currency rating reflects the favorable business positions of Gerdau's main steel production subsidiaries, Acominas, Acos Longos and Gerdau Ameristeel Corporation, as well as the group's strong consolidated financial profile characterized by low leverage and healthy liquidity. In 2005, Gerdau continued its strong performance, generating consolidated net revenues of US$8.9 billion and operating EBITDA of US$2.0 billion. Compared with the prior year, revenues and operating EBITDA increased by 28% and 3%, respectively mainly due to the continuing high spread between steel prices and scrap prices as well as the inclusion in consolidated 2005 results of acquired assets such as North Star Steel, Diaco and Sipar. With total consolidated debt of about US$3.4 billion (including an adjustment of about US$200 million for operating leases and guaranteed debt) and cash of US$2.3 billion at Dec. 31, 2005, Gerdau's leverage, as measured by net debt to operating EBITDA, decreased to 0.6 times from 1.0x in 2004, and the ratio of total debt to operating EBITDA increased to 1.7x from 1.3x. Liquidity remains manageable, as cash and marketable securities cover short-term debt by 4.1x. Although Gerdau is geographically well diversified, with 54% of its total production capacity outside Brazil, approximately 64% of the company's consolidated operating EBITDA was generated by its Brazilian operating subsidiaries. This exposure, as well as the overall risk of the cyclical steel industry, is factored into Gerdau's ratings and the credit assessment of its operating subsidiaries. Gerdau's 'BB+' foreign currency IDR exceeds Brazil's country ceiling rating of 'BB' due to: -- the benefits of owning 65.2% of Ameristeel, the second largest producer of long-steel products in North America; -- significant exports by its Brazilian subsidiaries; and -- substantial cash balances both in Brazil and outside of the country. The combination of these three factors, plus management's long- term commitment to maintaining a conservative credit profile, should allow the company to make payment on its foreign currency obligations in a timely manner in the event of capital and exchange controls being imposed by the Brazilian government during a sovereign crisis. Headquartered in Porto Alegre, Brazil, Gerdau is a holding company for the group's steel production facilities in North and South America and Europe. The Gerdau companies operate mini- mill and integrated-steel facilities in Brazil, Argentina, Chile, Colombia, Uruguay, the United States, Canada, and Spain and have a crude steel production capacity of 18.7 million tons in 2006. Gerdau owns 89.3% of its Brazilian operating companies, which consist primarily of the Acominas and Acos Longos and have a combined production capacity of about 9.0 million tons of crude steel. In North America, Gerdau owns 65.2% of Ameristeel that ranks as the second-largest producer of long-steel products with an annual production capacity of 8.3 million tons, including the Gallatin Steel joint venture. GOL LINHAS: Fitch Ups Foreign Currency Rating to BB from BB- ------------------------------------------------------------ Fitch Ratings upgraded the foreign currency rating of GOL Linhas Aereas Inteligentes S.A. to BB from BB-, with positive outlook. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. MRS LOGISTICA: Fitch Ups Foreign Currency Rating to BB from BB- --------------------------------------------------------------- Fitch Ratings upgraded the foreign currency rating of MRS Logistica S.A. to BB from BB-, with positive outlook. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. PETROLEO BRASILEIRO: Fitch Ups Foreign Currency Rating to BB+ ------------------------------------------------------------- Fitch Ratings upgraded the foreign currency rating of Petroleo Brasileiro S.A. to BB+ from BB, with positive outlook. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. RIPASA SA: Fitch Upgrades Foreign Currency Rating to BB from BB- ---------------------------------------------------------------- Fitch Ratings upgraded these ratings of Ripasa S.A. Celulose e Papel: -- Foreign Currency IDR: To BB with Stable Outlook, from BB- with Positive Outlook; and -- National Long-term Rating: To 'AA-(bra)' from 'A+(bra)'. These rating actions follow Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. SAMARCO MINERACAO: Fitch Ups Foreign Currency Rating to BBB- ------------------------------------------------------------ Fitch Ratings upgraded Samarco Mineracao S.A.'s foreign currency rating to BBB- with a stable outlook, from BB+ with a positive outlook. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. TELE NORTE: Fitch Ups Foreign Currency Rating to BB from BB- ------------------------------------------------------------ Fitch Ratings upgraded the foreign currency rating of Tele Norte Leste Participacoes S.A. to BB from BB-, with positive outlook. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. TELEMAR NORTE: Fitch Ups Foreign Currency Rating to BB from BB- --------------------------------------------------------------- Fitch Ratings upgraded the foreign currency rating of Telemar Norte Leste S.A. to BB from BB-, with positive outlook. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. VOTORANTIM PARTICIPACOES: Fitch Ups Foreign Curr. Rating to BBB- ---------------------------------------------------------------- Fitch Ratings upgraded Votorantim Participacoes S.A.'s foreign currency rating to BBB- with a stable outlook, from BB+ with a positive outlook. This rating action follows Fitch's upgrade of the long-term foreign and local currency IDRs of the Federative Republic of Brazil to BB, from BB- on June 29, 2006. "Our foreign currency corporate upgrades reflect Brazil's improving external balance sheet, which translates to lower risk for the Brazilian corporates", said Daniel R. Kastholm, head of Latin America Corporate Ratings at Fitch. "Lower transfer and convertibility risk and a more robust sovereign and economic environment bode well for corporate fundamentals. Exporters in particular have benefited from a favorable global environment and maintained strong performance despite the strengthening of the Brazilian Real." "Brazilian corporates have taken advantage of strong global liquidity to extend maturities, lower financing costs and increase equity capital which collectively have strengthened many corporate balance sheets," said Rafael Guedes, Managing Director of Fitch Brasil. "Lower nominal and real interest rates in Brazil, further underpin economic recovery in Brazil, which should benefit many of the private sector corporates. Improvement in regulated industries and high commodity prices have also helped bolster corporate credit fundamentals. These factors, among others are reflected in our national scale long- term rating upgrades." Fitch's upgrade of the Federative Republic of Brazil's ratings are a result of the country's on-going improvement in public and private external finances and a macroeconomic policy framework that has proved robust in the face of political and financial market pressures. The rating upgrades also reflect Brazil's enhanced external balance sheet and the fact that the country has weathered the latest storm affecting the capital markets in emerging countries. Fitch believes that Brazil's next administration will continue to maintain prudent fiscal and monetary policies but that it is unlikely to implement deep structural reforms. Many Brazilian corporate ratings continue to be linked to the BB foreign currency IDR of the sovereign. =========================== C A Y M A N I S L A N D S =========================== AVENIR MASTER: Last Day to File Proofs of Claim Is on July 26 ------------------------------------------------------------- Avenir Master Fund Limited's creditors are required to submit proofs of claim by July 26, 2006, to the company's liquidator: Geoffrey Varga Brian Forrester Kinetic Partners Cayman LLP Strathvale House P.O. Box 10387APO Grand Cayman, Cayman Islands Tel: (345) 623-9901 Fax: (345) 623-0007 Creditors who are not able to comply with the July 26 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Avenir Master'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. COMMONWEALTH INVESTMENTS: Proofs of Claim Must be In by July 26 --------------------------------------------------------------- Commonwealth Investments Associates Limited's creditors are required to submit proofs of claim by July 26, 2006, to the company's liquidator: Sandy Perez P.O. Box 191818, San Juan Puerto Rico, 00919-1818 Creditors who are not able to comply with the July 26 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Commonwealth Investments' 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: Lesley Walker P.O. Box 707, George Town Grand Cayman, Cayman Islands Tel: (345) 945-4777 Fax: (345) 945-4799 CORNICE (LEVEL I): Shareholders Vote to Liquidate Business ---------------------------------------------------------- Cornice Portfolios Level I 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 Cornice Portfolios' business. The liquidator can be reached at: Cititrust (Bahamas) Limited P.O. Box N-1576, Citibank Building Thompson Boulevard, Oakes Field Nassau, Bahamas CORNICE (LEVEL II): Shareholders Voluntarily Liquidate Company -------------------------------------------------------------- Cornice Portfolios Level II 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 Cornice Portfolios' business. The liquidator can be reached at: Cititrust (Bahamas) Limited P.O. Box N-1576, Citibank Building Thompson Boulevard, Oakes Field Nassau, Bahamas CORNICE (LEVEL III): Shareholders Vote to Liquidate Company ----------------------------------------------------------- Cornice Portfolios Level III 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 Cornice Portfolios's business. The liquidator can be reached at: Cititrust (Bahamas) Limited P.O. Box N-1576, Citibank Building Thompson Boulevard, Oakes Field Nassau, Bahamas INDAIR LEASING: Deadline to File Proofs of Claim Is on July 26 -------------------------------------------------------------- Indair Leasing (Cayman) Limited's creditors are required to submit proofs of claim by July 26, 2006, to the company's liquidator: John Cullinane Derrie Boggess c/o Walkers SPV Limited P.O. Box 908, George Town Grand Cayman, Cayman Islands Tel: (345) 914-6305 Creditors who are not able to comply with the July 26 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Indair Leasing's shareholders agreed on June 12, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. HARTVILLE GROUP: Posts US$2MM Net Loss in Quarter Ended March 31 ---------------------------------------------------------------- Hartville Group, Inc., filed its financial statements for the quarter ended March 31, 2006, with the US Securities and Exchange Commission. Hartville 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'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's financial statements for the quarter ended March 31, 2006, are available for free at: http://ResearchArchives.com/t/s?c73 Going Concern Doubt 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. About Hartville Corporation 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. MESPIL FUND: Sets July 26 Deadline for Proofs of Claim Filing ------------------------------------------------------------- Mespil Fund Limited's creditors are required to submit proofs of claim by July 26, 2006, to the company's liquidator: Geoffrey Varga Brian Forrester Kinetic Partners Cayman LLP Strathvale House P.O. Box 10387APO Grand Cayman, Cayman Islands Tel: (345) 623-9901 Fax: (345) 623-0007 Creditors who are not able to comply with the July 26 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Mespil Fund'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. MESPIL MASTER: Creditors Must File Proofs of Claim by July 26 ------------------------------------------------------------- The Mespil Master Fund Limited's creditors are required to submit proofs of claim by July 26, 2006, to the company's liquidator: Geoffrey Varga Brian Forrester Kinetic Partners Cayman LLP Strathvale House P.O. Box 10387APO Grand Cayman, Cayman Islands Tel: (345) 623-9901 Fax: (345) 623-0007 Creditors who are not able to comply with the July 26 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Mespil Master'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. MPC COMMODITY: Proofs of Claim Must be Submitted by July 26 ----------------------------------------------------------- MPC Commodity (General Partner) Inc.'s creditors are required to submit proofs of claim by July 26, 2006, to the company's liquidators: Linburgh Martin John Sutlic P.O. Box 1034, George Town Grand Cayman,Cayman Islands Creditors who are not able to comply with the July 26 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. MPC Commodity's shareholders agreed on Apr. 28, 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: Thiry Gordon Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949-8455 Fax: (345) 949-8499 MPC COMMODITY FUND: Proofs of Claim Must be Filed by July 26 ------------------------------------------------------------ MPC Commodity Fund Inc.'s creditors are required to submit proofs of claim by July 26, 2006, to the company's liquidators: Linburgh Martin John Sutlic P.O. Box 1034, George Town Grand Cayman,Cayman Islands Creditors who are not able to comply with the July 26 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. MPC Commodity Fund's shareholders agreed on Apr. 28, 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: Thiry Gordon Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949-8455 Fax: (345) 949-8499 PRIMUS JAPAN: Proofs of Claim Filing Deadline Is on July 26 ----------------------------------------------------------- Primus Japan Funding 03-B Holding Company's creditors are required to submit proofs of claim by July 26, 2006, to the company's liquidator: John Cullinane Derrie Boggess c/o Walkers SPV Limited P.O. Box 908, George Town Grand Cayman, Cayman Islands Tel: (345) 914-6305 Creditors who are not able to comply with the July 26 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Primus Japan's shareholders agreed on June 13, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. SUCCESSOR II: Moody's Rates US$73.2MM Class A Notes at B3 --------------------------------------------------------- Moody's Investors Service assigned a B3 rating to the US$73,200,000 Series 1 Class A Principal At-Risk Variable Rate Notes due June 6, 2008, issued by Successor II Ltd., a special purpose Cayman Islands exempted company for the benefit of Swiss Reinsurance Company In addition, Successor II Ltd. issued US$154,250,000 Series 1 Class E Principal At-Risk Variable Rate Notes due June 6, 2008 that was not rated by Moody's. Investors in the Notes effectively provide reinsurance coverage to Swiss Reinsurance Company from four perils: -- certain hurricanes in the North Atlantic, -- certain windstorms in Europe, -- certain earthquakes in California, and -- certain earthquakes in Japan. Moody's ratings address the ultimate cash receipt of all required interest and principal payments as provided by the governing documents, and is based on the expected loss posed to the note holders relative to the promise of receiving the present value of such payments. The rating is based on Moody's analysis of the probability of occurrence of qualifying events, their timing and the severity of losses experienced by investors should those events occur during the risk period. Moody's review of the transaction has included extensive review of the technical basis, methodology and historical data used to develop the probabilistic risk model used by EQECAT for the analysis of potential losses and sensitivity analysis of critical parameters of the model. This review, together with a detailed analysis of the transaction's legal structure and the financial strength of the various parties to the transaction, provided Moody's with sufficient comfort that the resulting ratings adequately captures the risk to investors in these securities. SUCCESSOR IV: Moody's Rates US$30MM Series 1 Class A Notes at B3 ---------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to to the US$30,000,000 Series 1 Class A Principal At-Risk Variable Rate Notes due June 6, 2008, issued by Successor IV Ltd., a special purpose Cayman Islands exempted company for the benefit of Swiss Reinsurance Company. Investors in the Notes effectively provide reinsurance coverage to Swiss Reinsurance Company from two perils: certain hurricanes in the North Atlantic and certain windstorms in Europe. Moody's ratings address the ultimate cash receipt of all required interest and principal payments as provided by the governing documents, and is based on the expected loss posed to the note holders relative to the promise of receiving the present value of such payments. The rating is based on Moody's analysis of the probability of occurrence of qualifying events, their timing and the severity of losses experienced by investors should those events occur during the risk period. Moody's review of the transaction has included extensive review of the technical basis, methodology and historical data used to develop the probabilistic risk model used by EQECAT for the analysis of potential losses and sensitivity analysis of critical parameters of the model. This review, together with a detailed analysis of the transaction's legal structure and the financial strength of the various parties to the transaction, provided Moody's with sufficient comfort that the resulting ratings adequately captures the risk to investors in these securities. SUCCESSOR CAL: Moody's Rates US$47.5MM Notes Due 2008 at Ba3 ------------------------------------------------------------ Moody's Investors Service assigned a Ba3 rating to the US$47,500,000 Series 1 Class A Principal At-Risk Variable Rate Notes due June 6, 2008 by Successor Cal Quake Parametric Ltd., a special purpose Cayman Islands exempted company for the benefit of Swiss Reinsurance Company. Investors in the Notes effectively provide reinsurance coverage to Swiss Reinsurance Company from certain earthquakes in California. Moody's ratings address the ultimate cash receipt of all required interest and principal payments as provided by the governing documents, and is based on the expected loss posed to the note holders relative to the promise of receiving the present value of such payments. The rating is based on Moody's analysis of the probability of occurrence of qualifying events, their timing and the severity of losses experienced by investors should those events occur during the risk period. Moody's review of the transaction has included extensive review of the technical basis, methodology and historical data used to develop the probabilistic risk model used by EQECAT for the analysis of potential losses and sensitivity analysis of critical parameters of the model. This review, together with a detailed analysis of the transaction's legal structure and the financial strength of the various parties to the transaction, provided Moody's with sufficient comfort that the resulting ratings adequately captures the risk to investors in these securities. SUCCESSOR EURO: Moody's Assigns Low B Ratings on Variable Notes --------------------------------------------------------------- Moody's Investors Service assigned ratings to the following Notes issued by Successor Euro Wind Ltd., a special purpose Cayman Islands exempted company for the benefit of Swiss Reinsurance Company: -- Ba3 to the US$97,130,000 Series 1 Class A Principal At-Risk Variable Rate Notes due June 6, 2008; -- B1 to the US$18,500,000 Series 1 Class B Principal At-Risk Variable Rate Notes due June 6, 2008; -- B3 to the US$110,750,000 Series 1 Class C Principal At-Risk Variable Rate Notes due June 6, 2008; -- Ba3 to the US$3,000,000 Series 2 Class A Principal At-Risk Variable Rate Notes due June 6, 2007; and -- B3 to the US$3,000,000 Series 2 Class C Principal At-Risk Variable Rate Notes due June 6, 2007. Investors in the Notes effectively provide reinsurance coverage to Swiss Reinsurance Company from certain windstorms in Europe. Moody's ratings address the ultimate cash receipt of all required interest and principal payments as provided by the governing documents, and is based on the expected loss posed to the note holders relative to the promise of receiving the present value of such payments. The rating is based on Moody's analysis of the probability of occurrence of qualifying events, their timing and the severity of losses experienced by investors should those events occur during the risk period. Moody's review of the transaction has included extensive review of the technical basis, methodology and historical data used to develop the probabilistic risk model used by EQECAT for the analysis of potential losses and sensitivity analysis of critical parameters of the model. This review, together with a detailed analysis of the transaction's legal structure and the financial strength of the various parties to the transaction, provided Moody's with sufficient comfort that the resulting ratings adequately captures the risk to investors in these securities. SUCCESSOR HURRICANE: Moody's Puts Low B Ratings on Three Notes -------------------------------------------------------------- Moody's Investors Service assigned ratings to the following Notes issued by Successor Hurricane Industry Ltd., a special purpose Cayman Islands exempted company for the benefit of Swiss Reinsurance Company: -- B1 to the US$14,000,000 Series 1 Class B Principal At-Risk Variable Rate Notes due December 6, 2007; -- B2 to the US$7,250,000 Series 1 Class C Principal At-Risk Variable Rate Notes due December 6, 2007; and -- B2 to the US$54,000,000 Series 1 Class F Principal At-Risk Variable Rate Notes due December 6, 2007. In addition, Successor Hurricane Industry Ltd. issued: -- US$34,250,000 Series 1 Class D Principal At-Risk Variable Rate Notes due December 6, 2007; -- US$5,000,000 Series 1 Class E Principal At-Risk Variable Rate Notes due December 6, 2007; -- US$10,250,000 Series 2 Class D Principal At-Risk Variable Rate Notes due June 6, 2007; and -- US$35,000,000 Series 2 Class E Principal At-Risk Variable Rate Notes due June 6, 2007 that were not rated by Moody's. Investors in the Notes effectively provide reinsurance coverage to Swiss Reinsurance Company from certain hurricanes in the North Atlantic. Moody's ratings address the ultimate cash receipt of all required interest and principal payments as provided by the governing documents, and is based on the expected loss posed to the note holders relative to the promise of receiving the present value of such payments. The rating is based on Moody's analysis of the probability of occurrence of qualifying events, their timing and the severity of losses experienced by investors should those events occur during the risk period. Moody's review of the transaction has included extensive review of the technical basis, methodology and historical data used to develop the probabilistic risk model used by EQECAT for the analysis of potential losses and sensitivity analysis of critical parameters of the model. This review, together with a detailed analysis of the transaction's legal structure and the financial strength of the various parties to the transaction, provided Moody's with sufficient comfort that the resulting ratings adequately captures the risk to investors in these securities. SUCCESSOR JAPAN: Moody's Puts Low B Ratings on Variable Notes ------------------------------------------------------------- Moody's Investors Service assigned ratings to the following Notes issued by Successor Japan Quake Ltd., a special purpose Cayman Islands exempted company for the benefit of Swiss Reinsurance Company: -- Ba3 to the US$103,470,000 Series 1 Class A Principal At-Risk Variable Rate Notes due June 6, 2008; -- B1 to the US$26,250,000 Series 1 Class B Principal At-Risk Variable Rate Notes due June 6, 2008; -- B3 to the US$70,750,000 Series 1 Class C Principal At-Risk Variable Rate Notes due June 6, 2008; and -- B3 to the US$3,000,000 Series 2 Class C Principal At-Risk Variable Rate Notes due June 6, 2007. Investors in the Notes effectively provide reinsurance coverage to Swiss Reinsurance Company from certain earthquakes in Japan. Moody's ratings address the ultimate cash receipt of all required interest and principal payments as provided by the governing documents, and is based on the expected loss posed to the note holders relative to the promise of receiving the present value of such payments. The rating is based on Moody's analysis of the probability of occurrence of qualifying events, their timing and the severity of losses experienced by investors should those events occur during the risk period. Moody's review of the transaction has included extensive review of the technical basis, methodology and historical data used to develop the probabilistic risk model used by EQECAT for the analysis of potential losses and sensitivity analysis of critical parameters of the model. This review, together with a detailed analysis of the transaction's legal structure and the financial strength of the various parties to the transaction, provided Moody's with sufficient comfort that the resulting ratings adequately captures the risk to investors in these securities. ========= C H I L E ========= CELLSTAR CORP: Extends Agreements with Motorola in LatAm & US ------------------------------------------------------------- CellStar Corp. extended its current distribution agreements with Motorola, Inc., in the U.S. and Latin America. Negotiations pertaining to a new agreement between the two companies will continue. The U.S. extension automatically renews monthly until a new agreement is in place. The Latin American extension expires on August 31, 2006. The extensions will allow the companies more time to complete a new agreement. Under the current agreement CellStar is the primary distributor for Motorola's wireless products to certain carriers and dealers throughout the United States. The strategic relationship between Motorola and CellStar began in 1989 and encompasses a wide array of wireless handsets and accessories offered by Motorola's Personal Communications Sector. About CellStar Corporation CellStar Corporation -- http://www.cellstar.com-- is a leading provider of logistics and distribution services to the wireless communications industry. CellStar has operations in North America and Latin America, and distributes handsets, related accessories and other wireless products from leading manufacturers to an extensive network of wireless service providers, agents, MVNO's, insurance/warranty providers and big box retailers. CellStar specializes in completely integrated forward and reverse logistics solutions, repair and refurbishment services, and in some of its markets, provides activation services that generate new subscribers for wireless service providers. CellStar's Latin America Region includes offices in Chile and Mexico with the Regional Headquarters located in Miami, Florida USA. * * * Moody's Investor Service assigned these ratings to CellStar Corporation: * subordinated debt -- Ca; and * long-term corporate family rating -- B3. =============== C O L O M B I A =============== AES CHIVOR: S&P Says B+ Ratings Reflect Volatile Cash Flow ---------------------------------------------------------- The 'B+' ratings on AES Chivor & CIA SCA ESP reflect the challenges of operating in the highly competitive and largely hydro-based Colombian electricity system as well as the company's relatively volatile cash flow generation. These weaknesses are partly offset by the company's sizable portfolio of short- and medium-term power sales contracts (42% of revenues in fiscal 2005), mainly with local electric distribution companies at a fixed price in Colombian pesos and indexed by local inflation. In addition, Chivor benefits from low variable power generation cost, a relatively large dam, and favorable hydrology within its region. Chivor generates about 4,000 gigawatt-hours per year, and has short-and medium-term sales contracts (of up to three years) for about 2,000 GWh to 2,500 GWh. In addition, the company seeks to optimize the use of available water and cash flow generation by purchasing power in the spot market (1,642 GWh in 2004 and 2,134 GWh in 2005) to meet part of its contractual obligations, as well as use its own generation to sell in the spot market, depending on the spread between contract and spot prices. Chivor's total sales reached 5,944 GWh and 6,350 GWh in fiscal 2004 and 2005, respectively. Also, Chivor derives about 10%-15% of revenues from ancillary services such as frequency control. Chivor's financing structure has changed significantly since a restructuring process in 2002. In November 2004, Chivor refinanced its restructured debt with proceeds from a US$170 million 10-year bullet 9.75% fixed-rate secured bond and a Colombian peso 210 billion (about US$90 million) seven-year amortizing syndicated bank loan. While the new debt significantly extended Chivor's maturity schedule and lowered its relatively high foreign exchange risk, it resulted in increased interest costs. However, Chivor's good financial performance in 2005, coupled with favorable market conditions, allowed it to prepay part of its syndicated bank loan and to renegotiate the outstanding balance in December 2005 at a lower cost (reducing the cost of the bank debt by about 300 basis points). Chivor's funds from operations interest coverage deteriorated to 3.1x in fiscal 2005 from 3.7x in 2004 due to the significant increase in interest expenses, and FFO to total average debt increased to 22.8% in 2005 from 16.8% in 2004, mainly due to the higher FFO coupled with the decrease in debt. These ratios should continue to benefit from further debt reductions and from the lower cost of the latest bank debt, becoming about 3.5x and 25% in the 2006-2007 period. Chivor is the fourth-largest power generator in Colombia through its ownership of a 1,000 MW hydropower plant that represents about 8% of the country's total installed capacity. Chivor was privatized and acquired by Chile's largest thermal generator, AES Gener S.A. (BBB-/Stable/--) in December 1996. The AES Corp. (BB-/Stable/--) acquired AES Gener in January 2001. Liquidity Chivor's liquidity significantly improved during 2005, as evidenced by a cash position of US$50 million as of March 31, 2006, which largely exceeded its US$18 million short-tem financial debt. In addition, the company's financial improvement resulted in more financial flexibility, as evidenced by the refinancing of its bank debt at a lower cost in December 2005. However, the company's cash position is expected to decrease during fiscal 2006 as a result of the projected relatively large dividend payments. Still, Chivor should have relatively good cash flow generation that should allow it to finance its low capital expenditure needs (about US$2 million to US$3 million per year), comfortably face the quarterly amortization of its bank debt (about US$3 million per quarter), and make additional prepayments. Outlook The stable outlook reflects Standard & Poor's Ratings Services' expectations that, by reducing debt and improving cash flow, Chivor will maintain a financial risk profile commensurate with the rating category. The ratings could be raised if the company's debt-service coverage ratios further improve to more than 3.5x and 25% when measured by FFO interest coverage and FFO to average total debt, and if financial flexibility continues improving. However, a deterioration of market conditions in Colombia or an increase in debt levels could pressure the current ratings. BAVARIA SA: To Sell Juice Business for US$55.3MM to Postobon ------------------------------------------------------------ Postobon S.A. entered into a purchase agreement under which it will acquire Productora de Jugos S.A., the Colombian-based juice business of Bavaria, S.A., a subsidiary of SABMiller plc, for US$55.3 million in an all-cash transaction. Postobon will purchase 100% of the shares of Productora de Jugos including the Tutti Frutti and Orense trademarks and certain assets associated with juice production. Completion of the transaction is subject to approval by the Colombian regulatory authorities and Postobon's bondholders. Carlos Ardila Lulle, Productora de Jugos S.A. chairman stated, "With this investment, Postobon will combine its expertise in the agro-industry to develop an export platform for fruits and related products, a sector in which Colombia has lagged, compared to peer countries, despite itsagro-industrial strength. The acquisition of SABMiller's Colombian juice operation strengthens our objective of attaining an ideal business platform in both distribution and manufacturing of tropical fruit drinks and allows us to capitalize on the growing demand for tropical fruit-related products as worldwide consumers become more health-conscious." Separately, SABMiller plc, the majority shareholder of Bavaria S.A., has signed a co-operation agreement with Carbe, the majority shareholder of Postobon, which includes an intention to assist Postobon in the development of its international markets. This will enable Organizacion Ardila Lulle to take advantage of the U.S.-Colombia Free Trade Agreement that will allow the export of agro-industrial products to the United States under highly favorable conditions. The agreement includes, inter alia, that SABMiller has the right of first refusal in the event of a sale of the Postobon beverage business. Hector Fernando Garcia, Postobon's CEO added, "We hope to enjoy a trajectory similar to that of Colombia's fresh cut flower export industry, a sector which didn't exist 30 years ago and now amounts to US$1 billion per year in sales, positioning Colombia as the second-largest exporter of fresh flowers in the world. Our goal is to do the same with the tropical fruit sector." About Postobon Postobon S.A., a flagship company of the Organizacion Ardila Lulle, is one of the market leaders in the carbonated soft drinks sector in Colombia. The company's brands include Colombiana, Postobon and Pepsi. About Bavaria S.A. Bavaria S.A., through its subsidiaries, produces and distributes beer, bottled water, juice drinks, malt beverages, and soft drinks. In Colombia and Peru, it owns nearly 1005 of both countries' beer market with the brands Aguila and Cristal respectively. Its operations in Ecuador involve suds production. In Panama, controls the market for suds and bottles Pepsi brands. The company also has operations in Bolivia, Chile and Costa Rica. Brands include Aguila cerveza, Costena, Cerveza Clara Pilsen, Poker, Club Colombia, Cerveza Aguila Light, Aguila Imperial, Leona Cerveza, Cola y Pola, Cerveza Bahia, Agua Brisa, Agua Brisa con Gas, Pony Malta, Malta Leona Cool, Tutti Frutti and Malta Leona. Julio Mario Santo Domingo's family sold more than 75% of their ownership of Bavaria to SABMiller in 2005. * * * On April 24, 2006, Fitch Ratings assigned its BB long-term issuer default and local currency long-term issuer default ratings to Bavaria S.A., both with positive outlook. * * * On Nov. 22, 2005, Standard & Poor's Ratings Services raised its corporate credit ratings on Bavaria S.A. and its senior unsecured debt rating on the 8.875% US$500 million bonds issued by Bavaria due 2010, which have the guarantee of several of Bavaria's non-rated subsidiaries, to 'BB+' from 'BB'. The ratings remain on CreditWatch with positive implications, where they were placed on July 21, 2005. * * * Moody's Investor Services assigned these ratings to Productora de Jugos S.A.: * subordinated debt -- Ca; and * long-term corporate family rating -- B3. CENTRAGAS-TRANSPORTADORA: Enron Sells 50% Stake in Company ---------------------------------------------------------- Enron sold its 50% stake in Centragas-Transportadora de Gas de la Region Central de Enron Development and Cia. S.C.A., a gas distributor in Colombia, to Arctas-Paragon Investments, a private equity group, LatinLawyer Online reports. LatinLawyer relates that the transfer of the stake concluded on June 7, 2006. The amount for which the stake was sold, however, was not disclosed. Enron also handed to Arctas-Paragon its role as managing partner in Centragas-Transportadora, LatinLawyer states. Adrian Rodriguez of Lewin & Wills Abogados, who advised Arctas- Paragon, told LatinLawyer, "This deal was a very interesting one due to the multi-tiered corporate structure, cross-border financing and intercompany loans previously adopted by the seller to which the buyers needed to adapt. Further complexities were added by agreements involving other partners and third parties with interests in Centragas, that all needed to be reconciled with the interests of both the sellers and the buyers." The sale had to be negotiated with Ecogas, the state gas firm of Colombia, to decide on the continuing relationship between the company and Centragas, given the impending privatization of Ecogas, LatinLawyer reports. * * * As reported in the Troubled Company Reporter on July 29, 2005, Standard and Poor's Ratings Services placed a 'BB' foreign currency rating on the US$172 million senior secured notes due 2010 issued by Centragas-Transportadora de Gas de la Region Central de Enron Development and Cia. S.C.A. (Centragas). COLOMBIA TELECOM: Investing COP6BB for Barranguilla Maintenance --------------------------------------------------------------- Colombia Telecomunicaciones aka Colombia Telecom will invest COP6.19 billion for the maintenance of Barranguilla network, El Heraldo reports. Business News Americas relates that the amount also covers the upgrade of telephony systems and cabling to increase the quality of voice service and prepare the platform to offer broadband services. Departamento Administrativo Nacional de Estad�stica, Colombia's national statistics agency told BNamericas that Colombia Telecom previously disclosed a COP80 billion-investment plan for the expansion of fixed telephony and broadband services. Barranquilla's fixed line penetration is below the national average, BNamericas reports, citing DANE. * * * Telefonica SA acquired a majority stake in Colombia Telecom from the government in April. The Colombian government said that it's better to be the owner of a minority stake of a thriving business than a majority holder of a dying one, in defense to criticisms from various sectors. The purchase included the assumption of COP7.58 trillion debt, which included a US$3.26 billion pension liability and other debts totaling US$449 million. * COLOMBIA: Moody's Retains Ba2 Foreign Currency Rating ------------------------------------------------------- Moody's Investors Service downgraded the domestic currency bond rating of the government of Colombia to Baa3 from Baa2 in order to more closely align the country's foreign and domestic currency bond ratings. The outlook for the new rating is stable. The country's other ratings, including the foreign-currency country ceilings for bonds and bank deposits and the government's Ba2 foreign-currency bond rating were unaffected by the action. Colombia's local currency guideline, which reflects the highest possible rating that could be assigned to obligors and obligations denominated in the local currency, and local currency bank deposit ceiling both remain at A1. "Moody's has come to see the need for a closer alignment of foreign and domestic currency bond ratings although they need not always be identical, because of the increasing amount of local-currency issuance by governments and the wider ownership of these instruments by non-residents," said Moody's Vice President-Senior Credit Officer Steven Hess. In general, having more local currency debt can be a positive for a government's creditworthiness, according to the rating agency, because of the reduced exposure to foreign exchange movements. "While the Colombian government's successful debt management during the recent past has reduced the proportion of foreign currency government bonds to about 30%, at the same time central government deficits are likely to remain sizable over the next decade. This indicates a higher debt burden, according to the government's own medium-term fiscal framework," said Hess. "Although the consolidated public sector has recorded much better fiscal balances than the central government, it is the central government deficit that is increasing the level of debt," said Moody's Hess. ======= C U B A ======= * CUBA: Says Sugar Sector Won't Attain Harvest Goals ---------------------------------------------------- The Cuban government told The Miami Herald the country's sugar sector won't accomplish the harvest goals it has set for 2006 due to inefficient mills and a delayed start. The Herald relates that President Castro announced in February that the Cuban government, to make up for losses when 71 sugar mills were shut down in 2002 because the industry had been heavily subsidized, had aimed to increase harvest for three million tons. Sugar prices at that time increased to US$0.17 per pound. As reported in the Troubled Company Reporter-Latin America on June 23, 2006, Cuba hopes to increase the yearly production of ethanol five times to 500 million liters by 2010. According to The Herald, aiming for a boost in ethanol production makes the increase in sugar harvest a must. However, experts told The Herald that the sugar sector is currently making 1.3 tons yearly. According to them, it was less than a fifth of what was produced in the 1950s. Granma International says that the recent harvest indicated that hard work and final results don't always correspond. The government admitted to The Herald that the obstacles are hard to overcome. Cuba currently has 42 operating mills while it had about 156 four years ago, Granma states. About 28 of those mills started operating late. Granma relates that of the 22 low-production mills, eight could not grind the same amount of sugar cane that had been expected while two were closed down because of repeated inefficiency cases as well as high cost. About 15% of the mills produced high quality sugar. The country could have produced another 43,800 tons had all the mills operated at capacity, according to Granma. However, the paper did not reveal any figures on this year's production. Nicolas J. Gutierrez -- the head of the National Association of Sugar Mill Owners of Cuba, a group of exiled sugar growers -- told The Herald, "There are always excuses -- 'no spare parts, it's the weather. Even before this decline in production, Cuba was producing at 1907 levels. Maybe now with the decline, they are at 1800s levels." The Herald reports that Cuba had to import sweetener just to meet domestic needs and global demand. Antonio Jorge, an economist at Florida International University, told The Herald, "The industry is devastated. It has collapsed. It requires an investment in the order of $6 or $7 billion. I don't think he has the money, and I don't think he'd spend it even if he had it. He has other priorities." President Castro is more interested in tourism, biotechnology and mining, which are the more profitable areas, The Herald relates, citing Mr. Jorge. * * * 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 =================================== BANCO INTERCONTINENTAL: Fraud Trial Continues --------------------------------------------- The fraud trial of Ramon Baez Figueroa, the former company president and the main shareholder of Banco Intercontinental aka Baninter, continued on June 29 at the National District Court of First Instance in the Dominican Republic, DR1 Newsletter reports. Clave Digital relates that Mr. Figueroa was accused of fraud and asset laundering. According to Diario Libre, the case is being handled by: -- Antonio Sanchez Mejia, -- Pilar Rufino Diaz, and -- Giselle Mendez. DR1 states that the hearing is expected to last for many hours and that the case would take an undetermined number of days, as indicated by a list of 300 witnesses and a lengthy documentation. On March 17, 2006, Mr. Figueroa granted power of attorney to lawyers Julio Cury and Jose Guerrero, authorizing them to negotiate an agreement with the authorities so he would not have to appear in court to face the charges. The power of attorney specifically indicates that this kind of negotiation does not mean acceptance of the charges, Clave Digital states. BanInter collapsed in 2003 as a result of massive fraud that drained it of about US$657 million in funds. As a consequence, all of its branches were closed. The bank's current and savings accounts holders were transferred to the bank's new owner -- Scotiabank. FALCONBRIDGE LTD: Contests Xstrata Application to Superior Court ---------------------------------------------------------------- Falconbridge Limited intends to aggressively oppose an Application to the Superior Court of Justice that was filed by Xstrata against Falconbridge. The Application was filed on June 28, just one day after Xstrata had argued before the Ontario Securities Commission to have Falconbridge's shareholder rights protection plan terminated. Xstrata's Application to the Court demands that Falconbridge be forced to call an early Annual General Meeting of Shareholders on the basis of alleged violations of the Ontario Business Corporations Act by Falconbridge. Falconbridge had previously received approval from the TSX to hold its Annual General Meeting on October 9, 2006 in accordance with the provisions of the rules of the TSX. "In our view this is yet another attempt by Xstrata to avoid the fair and open auction process currently underway for Falconbridge. We remain committed to acting in the best interests of all Falconbridge shareholders," said Derek Pannell, Chief Executive Officer of Falconbridge Limited. About Xstrata Xstrata plc -- http://www.xstrata.com/-- is a major global diversified mining group, listed on the London and Swiss stock exchanges. The Group is and has approximately 24,000 employees worldwide, including contractors. Xstrata does business in six major international commodities markets: copper, coking coal, thermal coal, ferrochrome, vanadium and zinc, with additional exposures to gold, lead and silver. The Group's operations and projects span four continents and nine countries: Australia, South Africa, Spain, Germany, Argentina, Peru, Colombia, the U.K. and Canada. About Falconbridge Headquartered in Toronto, Ontario, Falconbridge Limited (TSX:FAL.LV)(NYSE: FAL) -- http://www.falconbridge.com/-- is a leading copper and nickel company with investments in fully integrated zinc and aluminum assets. Its primary focus is the identification and development of world-class copper and nickel orebodies. It employs 14,500 people at its operations and offices in 18 countries. The Company owns nickel mines in Canada and the Dominican Republic and operates a refinery and sulfuric acid plant in Norway. It is also a major producer of copper (38% of sales) through its Kidd mine in Canada and its stake in Chile's Collahuasi mine and Lomas Bayas mine. Its other products include cobalt, platinum group metals, and zinc. * * * Falconbridge's CDN$150 million 5% convertible and callable bonds due April 30, 2007, carries Standard & Poor's BB+ rating. ============= E C U A D O R ============= PETROECUADOR: Increasing Windfall Revenue by at Least 50% --------------------------------------------------------- The Ecuadorean government said in a statement that state oil firm Petroecuador will be granted at least 50% of windfall revenues from local oil production. According to the statement, President Alfredo Palacio has signed a decree to establish a regulation framework for the hydrocarbons law that would grant the windfall revenues to Petroecuador. Windfall revenues are the difference between monthly revenue generated with the present oil prices compared to the income that would have been generated using reference prices. The statement explained that reference prices will be established in accords signed with the state. It will vary from company to company. Business News Americas relates that the decree will be implemented once published in Ecuador's official register. Firms will then be given 60 days to sign the complementary agreements or be required to hand in at least 60% of their windfall revenues to Petroecuador, the government said in its statement. 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 alleging that Petroecuador has been inefficient and non-transparent in its accounts. * ECUADOR: Banana Growers Mulls Possibility of Holding Strike -------------------------------------------------------------- Ecuadorean banana growers are considering the possibility of holding a strike if the government won't guarantee its vigilance on exporters' payment behavior, Fresh Plaza reports, citing Paul Gonzalez, the head of Centro Agricola Cantonal de Machala. Mr. Gonzalez told Fresh Plaza that the unrest resulting from the reduction and withholding of payments to workers in some cases, has been blamed on Russian owners of plantations and exporters. It will be unviable to pay the US$3.25 per box reference price as market prices have decreased too far, Eduardo Ledesma, the Executive Director of the Ecuadorian Banana Expor-ters Association, told Fresh Plaza. Fresh Plaza relates that Freddy Serrano -- the director of Aproban -- recalls the past year with contentment as the European Union market opened up and good prices have been made during the first part of 2006. According to him, this has helped 6000 growers to reach a better financial condition with their bank as many had overdue payments to suppliers to resolve. * * * Fitch Ratings assigned these ratings on Ecuador: Rating Rating Date ------ ----------- Country Ceiling B- Aug. 29, 2005 Long Term IDR B- Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 ================= G U A T E M A L A ================= * GUATEMALA: Faces Anti-FTA Demonstrations ------------------------------------------ Guatemala's Colectivo de Organizaciones Sociales or COS has planned to hold a protest against Guatemala's membership in the Free Trade Agreement for Central America with the US or CAFTA, Prensa Latina relates. The protest began on July 1 in Guatemala City, Cesar Davila, a member COS, told Prensa Latina. According to him, the group planned to expand the demonstration to other provinces within the week. According to Prensa Latina, Mr. Davila said that CAFTA would make many sectors like farming as well as workers at the informal sector more vulnerable. Prensa Latina relates that COS reaffirmed its appeal against the CAFTA approval. Attorney Ramon Cadenas, who represents the group, said enough evidence has been submitted to show that CAFTA violates the Guatemalan Constitution. CAFTA was implemented in the absence of compensatory laws to counter its impact, making Guatemala compete to the US economy, Attorney Cadenas told Prensa Latina. * * * 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 A I T I ========= * HAITI: President Wants Re-Entry to Caribbean Community -------------------------------------------------------- Haiti's President Rene Garcia Preval plans to reenter his country to the Caribbean Community and Common Market or Caricom, Hard Beat News reports. Caricom was established by the Treaty of Chaguaramas, which came into effect on Aug. 1, 1973. It is aimed at the eventual integration of its members and economies, as well as the creation of a common market. Caricom has concentrated on the promotion of the integration of the economies of members, coordinating the foreign policies of the independent states and in functional cooperation, especially in relation to various areas of social and human endeavor. Hard Beat relates that President Preval disclosed his plan on June 23 to: -- Edwin Carrington, the Caricom Secretary-General, -- Ambassador Colin Granderson, the Assistant Secretary- General for Foreign and Community Relations, and -- Hugh Cholmondeley, the Chairman of the Caricom Task Force on Haiti, Hugh Cholmondeley. The Haitian president is expected in the Caricom summit to be held at St Kitts and Nevis from July 3-6, Hard Beat states. It will mark the official return of Haiti to Caricom. According to Hard Beat, Haiti was expelled from Caricom after the 2004 uprising that forced the resignation of Jean Bertrand Aristide, the country's former president. President Preval also asked Caricom to send representatives to Haiti immediately after the summit to work with Haitian authorities on facilitating and providing aid for the country's restoration of participation in Caricom operations, Hard Beat says. Secretary-General Carrington assured President Preval that Caricom would be willing to lend aid as requested by Haiti, Hard Beat states. * * * Haiti is currently seeking international help to spur economic development in the country. President Rene Preval submitted that the country's poverty, widespread unemployment and the dilapidated state of infrastructures will be alleviated with increased international assistance. =============== H O N D U R A S =============== * HONDURAS: Banana Growers Want to Sell Crops to China ------------------------------------------------------ A group of Honduran banana growers aimed to enter the Chinese market, Fresh Plaza reports. According to Fresh Plaza, the banana growers are not worried of the increasing produce exports from China though the latter may become a threat to Latin American fruit growers. Ecuador is shipping surplus production to China, along with Philippines and Taiwan, Fresh Plaza relates. * * * Moody's Investor Service assigned these ratings on Honduras: Rating Rating Date ------ ----------- Senior Unsecured B2 Sept. 29, 1998 Long Term IDR B2 Sept. 29, 1998 ============= J A M A I C A ============= KAISER ALUMINUM: Court Approves ACE Insurers Settlement Accord -------------------------------------------------------------- Judge Judith K. Fitzgerald overrules the objections to Kaiser Aluminum Corporation and its debtor-affiliates' Settlement Agreement with the ACE Insurers and grants the Debtors' requests in all respects. Judge Fitzgerald notes that: (1) the KACC Parties are not stayed, restrained or enjoined from asserting any claims that are not released under the Settlement Agreement; and (2) the ACE Parties may assert any and all defenses, claims, interests, rights and remedies to any claims. The U.S. Bankruptcy Court for the District of Delaware also clarifies that the ACE Parties will not be deemed successors to the Kaiser Parties or the Debtors' bankruptcy estates as a result of the consummation of the transactions in the Settlement Agreement. The ACE Parties will not assume any liabilities of the Kaiser Parties. As reported in the Troubled Company Reporter on Jun 5, 2006, KACC asked the Court to: (i) approve the ACE Insurers Settlement Agreement; (ii) authorize the sale of the Subject Policies to the ACE Related Companies, free and clear of liens, claims, interests and other encumbrances; and (iii) enjoin all Claims against the ACE Parties relating to or attributable in any way to the Subject Policies, including, but not limited to, any Claims in the nature of, or sounding in, tort, contract, warranty, or any other theory of law, equity or admiralty. A full-text copy of the Settlement Agreement is available for free at http://researcharchives.com/t/s?a68 Headquartered in Foothill Ranch, California, Kaiser Aluminum Corporation -- http://www.kaiseraluminum.com/-- is a leading producer of fabricated aluminum products for aerospace and high- strength, general engineering, automotive, and custom industrial applications. The Company , along with its Jamaican subsidiaries -- Alpart Jamaica Inc. and Kaiser Jamaica Corporation -- filed for chapter 11 protection on February 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a number of its commodity businesses during course of its cases. Corinne Ball, Esq., at Jones Day, represents the Debtors in their restructuring efforts. On June 30, 2004, the Debtors listed US$1.619 billion in assets and US$3.396 billion in debts. (Kaiser Bankruptcy News, Issue No. 99; Bankruptcy Creditors' Service, Inc., 215/945-7000) =========== M E X I C O =========== BALLY TOTAL: Files 2005 Annual & First Quarter 2006 Fin. Results ---------------------------------------------------------------- Bally Total Fitness Holding Corporation reported financial results for the fourth quarter and year ended December 31, 2005, as well as for the first quarter ended March 31, 2006. The company also filed its 2005 Annual Report on Form 10-K and its Quarterly Report on Form 10-Q for the first quarter 2006 with the SEC ahead of the July 10, 2006, deadline agreed to by the company's bondholders and lenders. Bally Total Fitness Holding Corp.'s turnaround plan drives improvement revenue per member while reducing operating costs. The highlights of results for the year ended Dec. 31, 2005: -- posts record revenue of US$1.071 billion, up 2.2% over prior year; -- operating income of US$75.7 million, almost double compared to 2004 amount; -- EBITDA Before Non-Cash Impairment Charges of US$149.6 million, increases 21.4% over 2004; -- net loss of US$9.6 million, improves almost 70% from US$30.3 million net loss in 2004; -- new joining members increase 3.3% to 1.2 million in 2005, tops record of 2004; and -- average monthly revenue per member grows 2.8% to US$19.56. The highlights for Fourth Quarter 2005: -- revenue of US$258.3 million, even with prior year; and -- operating income of US$9.2 million, up significantly over US$1.8 million in Fourth Quarter 2004; The highlights for First Quarter 2006 (excludes crunch fitness from operating results): -- revenue increases 1% to US$255.2 million, compared to First Quarter 2005; -- operating income of US$18.3 million, down US$4.8 million from First Quarter 2005 on higher general and administrative and advertising expenses; -- gain on disposition of crunch fitness of US$38.4 million drives net income of US$32.7 Million; -- new joining members decrease 2.2% from First Quarter 2005; and -- average monthly revenue per member grows 1.8% to US$19.34. Paul Toback, Chairman and Chief Executive Officer, said, "Our new business model drives growth through stable membership sales, improved retention, higher average monthly revenue per member and lower costs. The results released today reflect the progress we are making in successfully implementing our turnaround. Our 'Build Your Own Membership' or BYOM plan continues to receive a favorable response from new members, and has allowed us to eliminate, in just about all markets, the considerably discounted renewal dues historically sold by the Company. This will be an important driver of revenue per member when these members leave their initial term." Mr. Toback continued, "We are also seeing that members joining under BYOM stay longer, as short term attrition has already improved by over 25% from 23% at the beginning of 2005 to 16.9% today. This combination of improved retention and built in price increases will drive future average yield per member. When combined with the lower costs, higher efficiencies and better club service experience for our members under our New Club Model, I am excited about the potential for Bally Total Fitness over the next few years." Full Year 2005 Financial Results Net revenues for the year ended December 31, 2005 increased to a record US$1,071.0 million, up 2.2%, from US$1,048.0 million in 2004. Membership services revenue increased by US$27.9 million, driven by a 2.8% increase in average monthly revenue recognized per member to US$19.56 in 2005, and a US$9.2 million, or 7.3%, growth in personal training revenue. Revenue from retail products declined US$2.7 million, or 5.0%, for the year, as a result of the planned conversion of 45 lower performing full- size in-club retail stores to a more cost-effective, efficient model integrated into front-desk operations. Miscellaneous revenue decreased 11.9%, or US$2.2 million, primarily due to lower sponsorship revenue and franchise fees. Cash collections of membership services revenue, exclusive of personal training, in 2005 were $834.0 million, an increase of US$7.9 million, or 1%, compared to 2004. This increase is the result of higher receipts from paid-in-full membership fees, advance payments of dues and membership fees, and monthly payments from month-to- month memberships, partially offset by a decrease in payments from financed members and renewal term monthly dues. Operating income for the year increased 98.0% to US$75.7 million from US$38.2 million in 2004, driven by US$23.0 million in revenue growth and a US$14.4 million, or 1.4%, reduction in operating costs and expenses. Cost reductions were driven by a: -- US$5.8 million decrease in membership services expenses, reflecting the initial impact of the Bally Total's New Club operating model and other expense management initiatives, offset in part by increases in occupancy and insurance costs; -- US$2.5 million decrease in retail product expenses, consistent with the decrease in retail revenue; -- US$6.6 million decrease in advertising expense due primarily to a planned reduction in media spending and a deferral of production costs; -- US$3.8 million reduction in non-cash impairment charges; and -- US$7.2 million lower depreciation expense, reflecting fewer depreciable assets resulting from fixed asset impairment charges in 2004 and prior years, and lower capital spending. These cost reductions were partially offset by a: -- US$3.0 million increase in information technology spending associated with implementing new business initiatives, improved controls and compliance and security enhancements; -- US$8.5 million increase in other general and administrative costs, reflecting higher levels of spending for professional fees relating to various ongoing legal matters and the audit of the company's financial statements, a US$4.0 million increase in stock-based compensation, and a US$4.6 million write-off of equipment discussed below. For the year 2005, the Bally Total reported a net loss of US$9.6 million, or US$0.28 per share, versus a net loss of US$30.3 million, or US$0.92 per share, in 2004. The lower net loss reflects the favorable effects of the higher revenue and lower expenses discussed previously, partially offset by an approximate US$18.1 million increase in interest expense in 2005. Bally Total uses EBITDA (operating income plus depreciation and amortization) plus non cash impairment charges as a measure of operating performance. This performance measurement for 2005 was US$149.6 million, up 21.4%, or US$26.4 million, compared to US$123.2 million in 2004. New joining members in 2005 increased to a record 1.203 million, up 3.3% over a record 2004. The total number of members at December 31, 2005, was 3.610 million, slightly down from the prior year end due in part to increases in attrition prior to implementing the BYOM program and a growing percentage of month- to-month members, who have historically higher attrition rates than value plan members. On January 20, 2006, Bally Total completed the sale of Crunch Fitness and certain other fitness centers. The results of operations for 2005 include the operations of these clubs, which will be reported as discontinued operations in the company's 2006 financial statements, beginning with the first quarter 2006, discussed below. As part of the 2005 closing process, Bally Total restated the results of each of the first three quarters of 2005, cumulatively increasing revenue for the nine months ended September 30, 2005, by US$5.3 million to US$812.7 million, increasing operating income by US$4.7 million to US$66.4 million, and increasing net income by US$4.2 million to US$6.0 million. Further, certain errors in the application of generally accepted accounting principles were identified that reduced the company's accumulated deficit balance as of December 31, 2002 by approximately US$2.2 million. The impact of the identified errors was deemed not material to the company's consolidated statements of operations for the years 2003 and 2004, and, accordingly, no changes were made to those previously reported results of operations. Fourth Quarter 2005 Financial Results Fourth quarter net revenue of US$258.3 million was even with the fourth quarter in 2004. Membership services revenue was flat with the fourth quarter of the prior year with a modest increase in membership revenue, US$1.3 million, offsetting a decline in personal training revenue. Cash collections of membership services revenue in the fourth quarter of US$199.9 million, exclusive of personal training, were even with the fourth quarter last year. Operating income for the quarter of US$9.2 million increased fivefold over the fourth quarter of 2004, reflecting a US$7.8 million reduction in operating costs and expenses. Lower fourth quarter non cash impairment charges in 2005, down US$3.8 million compared to the fourth quarter 2004, were more than offset by a US$4.6 million write-off of equipment at various clubs. Bally Total reported a net loss of US$15.6 million, or US$0.45 per share, for the fourth quarter of 2005 versus a net loss of US$17.0 million, or US$0.52 per share, in 2004. The effects of higher revenue and lower operating expenses in the fourth quarter were partially offset by increased interest expense, up US$6.3 million, or 35.4%, to US$24.3 million. First Quarter 2006 Financial Results Operating results for the first quarter 2005 have been reclassified to exclude Crunch Fitness, which is presented as a discontinued operation. Net revenues for the first quarter ended March 31, 2006, increased 1% to US$255.2 million from US$253.8 million in first quarter of 2005. Lower retail and miscellaneous revenues offset growth in membership revenue, driven by a 6.3% increase in personal training revenue, or US$1.8 million. Cash collections of membership services revenue, exclusive of personal training, for the first three months of US$200.6 million declined US$6.4 million, or 3.1%, from the same period last year. This decrease is the result of lower advance payments of dues and membership fees. Operating income in the first quarter 2006 of US$18.3 million declined by US$4.8 million, or 20.8%, from the prior year quarter, reflecting higher expenses mostly associated with audit fees and litigation expense. These were included in general and administrative expenses that increased 18.7%, or US$3.4 million. In addition, advertising expenses were up 10.4%, or US$1.8 million, to US$18.9 million, reflecting planned spending and the impact of deferred production costs from the fourth quarter of 2005. Net income of US$32.7 million increased from US$4.6 million in the first quarter 2005, reflecting the operating results, a US$38.4 million gain on the disposition of Crunch Fitness, and an increase of 27.4%, or US$5.0 million, in interest expense to US$23.0 million due to higher interest rates and increased amortization of deferred financing costs related to consent solicitations. Cash and Liquidity At December 31, 2005, Bally Total had US$35 million of borrowings and US$13.6 million in letters of credit outstanding under its US$100 million revolving credit facility. At May 31, 2006, Bally had US$39.5 million of borrowings and US$14.1 million in letters of credit outstanding under the revolving credit facility, and the balance on its term loan was US$143.3 million versus US$173.3 million at December 31, 2005, reflecting a US$30 million mandatory repayment from the proceeds of the sale of Crunch Fitness. In June 2006, US$1.8 million of funds were released from the Crunch Fitness escrow account and applied as an additional repayment on the term loan. Capital Expenditures Capital expenditures for the year 2005 of US$37.9 million were down approximately 24% from 2004. First quarter 2006 capital expenditures totaled US$11.6 million, up US$3.2 million, over the first quarter 2005 as a result of a large, scheduled replacement of exercise equipment. Bally Total has focused its capital spending primarily on maintenance and improvement of existing clubs and limited new club growth. New clubs were opened in Huntington Park, California in early 2005 and in Carrollton, Texas in April 2006. Three clubs currently in development are planned to open in 2006, two of which replace existing clubs. The Company expects to continue controlled capital spending and is currently planning US$35 million to US$40 million of capital spending in 2006. Strategic Alternatives Process The strategic process, led by outside financial advisors J.P. Morgan Securities Inc. and The Blackstone Group L.P. under the direction of the Strategic Alternatives Committee of the Board of Directors, continues to progress. About Bally Total Bally Total Fitness -- http://www.ballyfitness.com/-- is the largest and only U.S. commercial operator of fitness centers, with approximately four million members and 390 facilities located in 29 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Crunch Fitness(SM), Gorilla Sports(SM), Pinnacle Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada(R) brands. * * * As reported in the Troubled Company Reporter on March 17, 2006, Standard & Poor's Ratings Services held its ratings on Bally Total Fitness Holding Corp., including the 'CCC' corporate credit rating, on CreditWatch with developing implications, where they were placed on Dec. 2, 2005. The CreditWatch update followed Bally's announcement that it will not meet the March 16, 2006, deadline for filing its annual report on SEC Form 10-K for the year ending Dec. 31, 2005. EAGLEPICHER INC: Ohio Court Confirms Plan of Reorganization ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Ohio has entered an order confirming the joint plan of reorganization for EaglePicher Inc. and its debtor-affiliates under Chapter 11 of the U.S. Bankruptcy Code. Effectiveness of the plan is conditioned on bankruptcy court approval of settlement agreements entered into with the U.S. Environmental Protection Agency and several states after a mandatory period of public comment. The Company expects that the settlement agreements will receive the requisite approval in time to complete the reorganization by July 31, 2006. The confirmation order is also conditioned on EaglePicher's obtaining sufficient financing to complete its plan of reorganization. DIP Credit Facilities As reported in the Troubled Company Reporter on January 4, 2006, the Company obtained new debtor-in-possession credit facilities consisting of a US$230 million first lien facility, which includes a US$70 million revolving credit facility and a US$160 million term loan, a US$65 million second lien term loan and a US$50 million third lien term loan. These credit facilities are convertible at EaglePicher's option into financing pursuant to the approved plan of reorganization and will provide sufficient funding to complete the reorganization. Terms of the Plan EaglePicher's plan of reorganization provides for the transfer of substantially all of the assets of the EaglePicher entities to newly formed companies. The consideration for the transferred assets will be paid to each debtor in amounts equal to the value of the assets transferred by that debtor. Under the plan, unsecured creditors of each debtor will receive their pro rata share of that value available for unsecured creditors after satisfaction of all secured, administrative and priority claims. Holders of the Company's 9.75% Senior Notes will receive their distributions in the form of all of the common stock in the new holding company. All other general unsecured creditors of each debtor will receive their distributions at their option either in the form of cash payments over time or a single discounted cash payment. "This is a very significant milestone towards completing EaglePicher's reorganization," Stuart B. Gleichenhaus, interim Chairman, President and CEO of EaglePicher, said. "We now have all the elements in place to complete our reorganization in the very near future. We look forward to continuing to serve our customers with high value products from the EaglePicher group of companies." About EaglePicher Headquartered in Phoenix, Arizona, EaglePicher Incorporated -- http://www.eaglepicher.com/-- is a diversified manufacturer and marketer of innovative advanced technology and industrial products for space, defense, automotive, filtration, pharmaceutical, environmental and commercial applications worldwide. The company has 3,900 employees and operates more than 30 plants in the United States, Canada, Mexico and Germany. EaglePicher Inc., along with its affiliates and parent, company, EaglePicher Holdings, Inc., filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Ohio Case No. 05-12601). Stephen D. Lerner, Esq., at Squire, Sanders & Dempsey L.L.P, represents the Debtors in their restructuring efforts. Houlihan Lokey Howard & Zukin is the Debtors' financial advisor. The Official Committee of Unsecured Creditors is represented by Thomas R. Kreller of Milbank, Tweed, Hadley & McCloy LLP. Miller Buckfire & Co., LLC is financial advisor to the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed US$535 million in consolidated assets and US$730 in consolidated debts. EMPRESAS ICA: Delays Filing of Annual Report on Form 20-F --------------------------------------------------------- Empresas ICA, S.A. de C.V., disclosed that it will delay the filing of its annual report, including the annual report on Form 20-F. The company expects to file its annual report with the Mexican and New York Stock Exchanges and the US Securities and Exchange Commission by July 15, 2006. This decision has been taken as a result of Empresas Ica's continued evaluation of the accounting treatment under U.S. GAAP for consolidating certain of its joint venture subsidiaries, solely for purposes of the U.S. GAAP reconciliation of its financial statements that must be included in its annual report on Form 20-F. Although Empresas Ica's management has been working diligently to complete all of the required information for its annual report on Form 20-F for the year ended December 31, 2005, and a substantial portion has been completed as of this date, the company will not be able to complete its 2005 Form 20-F within the prescribed time period without unreasonable effort or expense. 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 Holds Neg. Watch on B Corp. Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services held 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 -- on CreditWatch with negative implications, where they were placed March 29, 2006. The CreditWatch update follows GM's announcement that approximately 35,000 hourly employees have agreed to participate in GM's accelerated attrition program. Although up to 5,000 Delphi Corp. employees can return to GM, GM 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." GM 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 GM's 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 GM's exposure to Delphi, its former unit and an important supplier. "We expect GM's 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 GM have also been postponed until the same date. But, we expect negotiations between Delphi, the United Auto Workers, and GM to continue." Delphi has offered its employees an attrition program similar to GM's, and preliminary acceptance rates seem strong. A lower Delphi headcount is likely to be an important factor toward resolving GM's exposure to Delphi. GM's pending secured bank deal is considered an incremental positive for GM's liquidity, even prior to establishment of the new bank facility. Standard & Poor's believes GM's liquidity is adequate to meet near-term funding requirements, including payments to participants in the accelerated attrition program. MERIDIAN AUTOMOTIVE: Has Until July 31 to File Chapter 11 Plan -------------------------------------------------------------- Meridian Automotive Systems, Inc., and its debtor-affiliates obtained authority from the U.S. Bankruptcy Court for the District of Delaware to further extend their exclusive periods to: (a) file a plan of reorganization through and including July 31, 2006; and (b) obtain acceptances of that plan through and including Sept. 30, 2006. The Debtors delivered their Second Amended Joint Plan of Reorganization and Disclosure Statement to the Bankruptcy Court on June 23, 2006. 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). =========== P A N A M A =========== * PANAMA: Wants to Negotiate Payment Terms with Chiquita Brands --------------------------------------------------------------- The Panamanian government has requested a negotiation with Chiquita Brands regarding payment terms in the sales contract on Cooperativa de Servicios Multiples de Puerto Armuelles RL aka Coosemupar bananas, Fresh Plaza reports. Fresh Plaza relates that a special government commission that attends Coosemupar's financial crisis received a notice from Chiquita saying that the latter's executives had not yet defined their position towards the negotiation. According to Fresh Plaza, Chiquita will disclose its position this week. The delay of Chiquita's decision, says Fresh Plaza, may pose a problem as the Sitrachilco, a workers union, has set the deadline at the start of July. A rupture would result between Chiquita and Coosemupar, Fresh Plaza states. Prism Business Media Inc. reported on Oct. 1, 2003, that Chiquita had signed an accord with union leaders and the Panamanian government to sell the assets of its Puerto Armuelles Fruit Co division to worker cooperative Coosemupar for US$19.8 million. About Coosemupar M�ltiple Services Cooperative (Coosemupar) produces half the bananas exported from Panama on 3,000 hectares of land. The workers formally own it. Members of the Armuelles banana workers union, Sindicato Industrial de Trabajadores de la Chiriqui Land Co y Empresas Afines or Sitrachilco, lead this cooperative. About Chiquita Brands Chiquita Brands International is a Cincinnati, Ohio-based producer and distributor of bananas and other produce, under a variety of subsidiary brand names, collectively known as Chiquita. Chiquita is the successor to the United Fruit Company and is the leading distributor of bananas in the United States. The company also owns a German produce distribution company, Atlanta AG, which it acquired in 2003. It markets, produces and distributes fresh fruits, processed fruits and vegetable products. * * * Fitch Ratings assigned these ratings on Panama: Rating Rating Date ------ ----------- Country Ceiling BBB Apr. 8, 2005 Long Term IDR BB+ Dec. 14, 2005 Short Term IDR B Dec. 14, 2005 Local Currency Long Term Issuer Default Rating BB+ Dec. 14, 2005 ===================== P U E R T O R I C O ===================== ADELPHIA COMMS: Files May 2006 Monthly Operating Report ------------------------------------------------------- Adelphia Communications Corporation, et al. Unaudited Consolidated Balance Sheet As of May 31, 2006 (US Dollars in thousands) ASSETS Cash and cash equivalents $521,411 Restricted cash 266,382 Accounts receivables - net 108,401 Receivable for securities 10,029 Other current assets 159,105 ----------- Total current assets 1,065,328 Restricted cash 2,742 Investments in equity affiliates 5,870 Property and equipment - net 4,249,227 Intangible assets - net 7,487,660 Other non-current assets - net 115,501 ----------- Total Assets $12,926,328 =========== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $199,860 Subscriber advance payments and deposits 32,568 Payable to non-filing entities 1,554 Accrued liabilities 429,819 Deferred income 21,114 Current portion of parent and subsidiary debt 951,360 ----------- Total current liabilities 1,636,275 Other liabilities 32,014 Deferred income 53,715 Deferred income taxes 883,135 ----------- Total non-current liabilities 968,864 Liabilities subject to compromise 18,398,170 ----------- Total liabilities 21,003,309 Minority interests in equity of subsidiary 74,423 Stockholders' equity: Series preferred stock 397 Class A and Class B common stock 2,548 Additional paid-in capital 9,516,510 Accumulated other comprehensive income 94 Accumulated deficit (17,643,016) Treasury stock, at cost (27,937) ----------- Total stockholders' equity (8,151,404) ----------- Total liabilities and stockholders' equity $12,926,328 ============ Adelphia Communications Corporation, et al. Unaudited Consolidated Statement of Operations Month Ended May 31, 2006 (Dollars in thousands) Revenue $401,166 Cost and expenses: Direct operating and programming 229,579 Selling, general and administrative 33,553 Investigation, re-audit and sale transaction costs 3,514 Depreciation and amortization 73,336 Impairment of long-lived assets - Provision for uncollectible amounts from Rigases - Gains on dispositions of long-lived assets - ----------- Operating income (loss) 61,184 Other income (expense): Interest expense (58,018) Impairment of cost & available for sale investment - Other income (expense) - net 1,376 ---------- Total other expense - net (56,642) ----------- Loss from continuing operations before reorganization 4,542 Reorganization expenses due to bankruptcy 114,471 ----------- Loss from continuing operations before income taxes 119,013 Income tax benefit - Share of losses of equity affiliates - net 53 Minority's interest in subsidiary losses - net (4,617) ----------- Net loss 114,449 Beneficial conversion feature - ----------- Net loss applicable to common stockholders $114,449 =========== Adelphia Communications Corporation, et al. Unaudited Consolidated Statement of Cash Flows For the Month Ended May 31, 2006 (Dollars in thousands) Cash flows from operating activities: Net loss $114,449 Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 73,336 Impairment of long-lived assets - Provision for uncollectible amounts from Rigases - Gains on disposition of long-lived assets - Amortization of debt issuance costs 225 Impairment of cost & available for sale investments - Reorganization expenses due to bankruptcy (114,471) Deferred tax expense (benefit) - Share in losses of equity affiliates - net (53) Minority interest in losses of subsidiaries 4,617 Other non-cash gains - Depreciation, amortization and other non-cash items from discontinued operations - Change in operating assets & liabilities 12,433 ----------- Net cash provided by operating activities before payment of reorganization expenses 90,536 Reorganization expenses paid during the period (15,225) ----------- Net cash provided by (used in) operating activities 75,311 Cash flows from investing activities: Expenditures for property, plant and equipment (37,145) Changes in restricted cash (1,267) Proceeds from sale of investments - Other (829) ----------- Net cash used in investing activities (39,241) Cash flows from financing activities: Proceeds from debt 11,000 Repayments of debt (879) Payment of debt issuance costs - ----------- Net cash provided by financing activities 10,121 Change in cash and cash equivalents cash 46,191 Cash, beginning of period 475,220 ----------- Cash, end of period $521,411 =========== Based in Coudersport, Pa., Adelphia Communications Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth largest cable television company in the country. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, high-speed Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the ACOM Debtors. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. (Adelphia Bankruptcy News, Issue No. 138; Bankruptcy Creditors' Service, Inc., 215/945-7000) MERIDIAN AUTO: Filing 3rd Amended Plan & Disclosure Statement ------------------------------------------------------------- Meridian Automotive Systems, Inc.. reached a consensual agreement with its major creditor constituency classes and will be filing a Third Amended Plan of Reorganization and an Amended Disclosure Statement with the United States Bankruptcy Court for the District of Delaware in the near future to reflect the new arrangement. Therefore, Meridian has asked the Bankruptcy Court to continue the Disclosure Statement hearing currently scheduled for June 27, 2006, until July 17, 2006. Richard E. Newsted, Meridian's President and CEO, said, "We are extremely pleased to have achieved a consensual plan supported by our major creditor constituencies. This will enable us to emerge from Chapter 11 in a quick, uncontested and orderly manner. We also are committed to completing the remaining steps to emerge from Chapter 11 as efficiently as possible." 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). PREFERRED HEALTH: Moody's Rates Proposed US$185-Mil. Loan at B1 --------------------------------------------------------------- Moody's Investors Service assigned a B1 senior debt rating to the proposed US$185 million term loan of Preferred Health Management Corporation. The term loan is being issued under an amendment to the existing credit facility of Aveta Inc. The ratings of the co-borrowers under the existing facility, MMM Holdings, Inc. and NAMM Holdings, Inc. were both affirmed at B1. The outlook on all the ratings is stable. According to Moody's, the proceeds of the bank loan will be used by Aveta to fund the purchase of Preferred Medicare Choice, Inc., a licensed HMO operating in Puerto Rico and PHMC, an administrative services company. The new facility will be guaranteed by Aveta on the same basis as the existing facility and is considered to be pari passu with the existing term loans. The existing facility is secured with the pledge of the stock and assets of Aveta, as well as the pledge of the stock of each of the borrowers and their regulated subsidiaries and all assets of the non-regulated entities. The new loan, which matures on the same date as the existing term loans, will have the same pledge. According to Moody's, PHMC and PMC will become subsidiaries of MMM, alongside MMM Healthcare which also operates in Puerto Rico. MMM Healthcare and PMC are the two largest providers of Medicare Advantage products in Puerto Rico, with 118,000 members and 61,000 members, respectively. PMC offers its products in all 78 municipalities, with a stronger concentration in the western portion of the island, compared to MMM Healthcare which is more concentrated in the south and east. Combined, they will service approximately 75% of the Medicare Advantage enrolled population in Puerto Rico. Moody's B1 senior secured bank credit facility rating is based on the consolidated results of MMM and NAMM and reflects the companies' highly leveraged capital structure, including the large amount of goodwill, the companies' short operating history, dependence on the Medicare Advantage product and geographic concentration in Puerto Rico, as well as the uncertainty which surrounds the future financial prospects of the Medicare program. Although the companies comply with the regulatory capital requirements of each jurisdiction in which they operate, Moody's believes that the targeted consolidated capital adequacy on an NAIC risk-based capital basis is relatively weak at approximately 50% of company action level. However, the rating agency noted that the results for 2005 were solid with combined Medicare membership growth in Puerto Rico exceeding 30% and operating margins of approximately 10%. The rating agency added that given the current Medicare reimbursement rates for Puerto Rico and the combined marketing potential of MMM Healthcare and PMC, similar results are expected during 2006. Moody's ratings are based on the expectation that there are no changes in the methodology used by the Centers for Medicare and Medicaid Services in determining the Medicare Advantage reimbursement rates, that 100% of excess unregulated cash is used for debt repayment, and the companies maintain a consolidated RBC of at least 50% of company action level. Moody's also expects that there are no significant changes to the financial covenants contained in the secured bank credit facility and all covenants will be met or exceeded. Moody's stated that the ratings could move up if NAIC RBC grows to 100% of company action level, debt to EBIT falls below 2 times, EBIT interest coverage is at least 5 times, there is additional product and geographic diversification, and there is successful integration with PMC measured by net margins of at least 4% and organic membership growth in Puerto Rico of at least 10%. However, if there is a significant adverse change in Medicare reimbursement levels, if NAIC RBC falls below 50% of company action level, if debt to EBIT exceeds 5 times, if EBIT to interest expense falls below 3.5 times, or if a significant portion of debt is not retired each year, then Moody's said, the ratings could be moved down. MMM Healthcare offers Medicare Advantage products exclusively to eligible participants in Puerto Rico. Moody's notes that the company currently enjoys being the market leader in providing Medicare Advantage products in Puerto Rico and being reimbursed at a very favorable rate from CMS, which determines the rates that health benefit companies are paid to provide a Medicare Advantage product. As a result of these circumstances, Moody's stated, the company has been able to record impressive growth and earnings margins since it was established in 2001. However, while CMS reimbursement rates are in place for 2006, and rates for 2007 have been announced, rates for subsequent years are susceptible to unpredictable shifts in Medicare policy emanating from Washington. NAMM is a medical management company that operates in California and Illinois. Its regulated operating subsidiary, PrimeCare Medical Network, Inc., consists of 10 owned IPAs in Southern California that contract with major health care benefit companies on a capitated basis to provide medical care to commercial and Medicare members. This rating was assigned with a stable outlook: * Preferred Health Management Corporation -- senior secured debt rating at B1 These ratings were affirmed with a stable outlook: * MMM Holdings, Inc. -- senior secured debt rating at B1; corporate family rating at B1; * NAMM Holdings, Inc. -- senior secured debt rating at B1, * MMM Healthcare, Inc. -- insurance financial strength rating at Ba2; * PrimeCare Medical Network, Inc. -- insurance financial strength rating at Ba2. Aveta, Inc. is headquartered in Fort Lee, NJ. As of December 31, 2005, Aveta reported stockholders' equity of $38 million and approximately 130,500 Medicare members. For full year 2005, pro-forma total revenues were US$938 million. Moody's health insurance financial strength ratings are opinions about the ability of life and health insurance companies to punctually repay senior policyholder claims and obligations. Because IFSRs are applied to operating life and health insurance companies, the cash flows of which are regulated by the applicable state insurance department, the IFSR is typically the highest rating within a corporate group. Moody's corporate family rating is an opinion of a corporate family's ability to honor all of its financial obligations and is assigned to a corporate family as if it had a single class of debt and a single consolidated legal entity structure. UNIVISION COMMS: S&P Downgrades Senior Unsecured Notes to BB- ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured notes ratings on Los Angeles-based Univision Communications Inc. to BB- from BBB-, based on the company's agreement in principle to a US$12.3 billion (excluding existing debt) LBO led by investor group Madison Dearborn Partners LLC. All ratings, including the BBB- rating on the company's credit facility, remain on CreditWatch, with implications revised to negative from developing. The ratings were originally placed on CreditWatch on Feb. 9, 2006, after the company announced it was exploring strategic alternatives. Terms of the credit agreement require debt to be repaid upon a change of control of Univision. Therefore, upon completion of the announced buyout and repayment of the bank debt, we will withdraw this rating. However, if the transaction becomes derailed, we will reassess overall credit quality and the position of bank creditors relative to all other creditors. "We anticipate a significant debt burden and deterioration of key credit measures upon completion of the transaction," said Standard & Poor's credit analyst Heather M. Goodchild. "An important element of this review is whether Univision and its principal programming supplier, Grupo Televisa S.A., will restore their working relationship." In resolving the CreditWatch listing, Standard & Poor's will review the company's business strategy, capital structure, and liquidity. Univision, a Spanish-language broadcaster, owns and operates more than 60 television stations in the US and Puerto Rico offering a variety of news, sports, and entertainment programming. The company had about US$1.4 billion in debt at March 31, 2006. ================================= T R I N I D A D & T O B A G O ================================= BWIA WEST: Lacks Proper Managerial Systems, Says Union Head ----------------------------------------------------------- British West Indies Airways aka BWIA lacks proper managerial systems and style and a calculated move to withdraw staff benefits, Curtis John -- the head of the Aviation Communication and Allied Workers Union -- told the Trinidad and Tobago Express. Mr. John denied that unions associated with BWIA workers were undermining the service at the airline, The Express relates. He however maintained that the workers continue to be left out of the loop by management. Industry sources told The Express in April that BWIA was losing in the vicinity of about US$1 million per week. On June 28, BWIA released a statement saying that it continues to suffer significant losses. Its business recovery plan, which was submitted to the government of Trinidad and Tobago, is at risk. The plan was designed to cut BWIA's losses. BWIA also said that the industrial action taken by workers also worsened the loss position of the airline and has ruined its reputation to its clients. As reported in the Troubled Company Reporter-Latin America on June 14, 2006, BWIA workers held demonstrations outside BWIA's offices in Piarco and Port of Spain over stalled wage talks, saying that they could not wait any long for an agreed compensation package and threatening to intensify action against BWIA if an agreement would not be reached soon. Furthermore, four flights were cancelled at BWIA after a number of its employees failed to show up, saying they were sick. Mr. John had denied that the move was part of a strategy to pressure the BWIA management to settle outstanding wage negotiations. BWIA resorted to hiring Service Air to deal with transportation of passengers. BWIA also wet leased airlines Miami Air and North American Air to handle flights to New York and London. A meeting held between the BWIA management and ACAWU on June 2 at the airline's Sunjet House offices in Spain to explore ways to address workers' grievances on dismissals, suspensions and unlawful terminations of employment of officers since 2001. BWIA's executives had accepted the union's proposals and suggestions for a new collective agreement, promising to analyze them and to inform the union of their decision in July. BWIA was founded in 1940, and for more than 60 years has been serving the Caribbean islands from Trinidad and Tobago, the hub of the Americas, linking the twin island republic and many other Caribbean islands with North America, South America, the United Kingdom and Europe. The airline has reportedly been losing US$1 million a week due to poor operational management. An employee survey revealed that lack of responsibility by the management is a major issue in the company. ============= U R U G U A Y ============= PETROLEO BRASILEIRO: Acquires 51% Share in Gaseba for US$11 Mil. ---------------------------------------------------------------- Petroleo Brasileiro SA, Brazil's state-run oil company, has paid US$11 million to Gaz de France International for a 51% share in Gaseba Uruguay, a gas distribution concessionaire in Montevideo, LatinLawyer Online reports. Nicaolas Piaggio of Guyer & Regules -- the advisor of Petroleos de Brasileiro -- told LatinLawyer, "The acquisition of Gaseba ratifies Petrobras's interest in the development of the Uruguayan energy matrix and infrastructure in particular, and reaffirms Petrobras's interest in investing in Uruguay." According to LatinLawyer, the deal was closed on June 1. Alberto Fodere of Sanguinetti, Fodere & Bragard Abogados -- Gaz de France's advisor -- told LatinLawyer, "This was a challenging deal to work on as it encompassed very different aspects of Gaseba Uruguay's corporate activity, which demanded a profound knowledge of the company." LatinLawyer relates that the purchase must be approved by Uruguayan President Tabare Vazquez and the Ministry of Energy and Mining, as required by Unidad Reguladora de Servicios de Energ�a y Agua or URSEA -- the country's gas regulator -- and by the Tribunal de Cuentas de la Republica, the Uruguayan internal comptroller. URSEA and Tribunal de Cuentas also required that Gaseba appoint a new technical director for the deal, according to LatinLawyer. Sanguinetti, Fodere & Bragard -- the local counsel of Gaz de France -- was selected through a recommendation from local representatives. "Mr. Fodere's pragmatic approach to solving issues and very good knowledge of local players brought a real added value in conducting this deal," LatinLawyer states, citing Cyril Perroy - - Gaz de France's in-house counsel. Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. aka Petrobras was founded in 1953. The company explores, produces, refines, transports, markets, distributes oil and natural gas and power to various wholesale customers and retail distributors in the country. * * * Petroleo Brasileiro SA's long-term corporate family rating is rated Ba3 by Moody's and its foreign currency long-term debt is rated BB by Fitch. * * * Fitch assigned these ratings on Petroleo Brasileiro's senior unsecured notes: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- April 1, 2008 US$400,000,000 9% BB+ July 2, 2013 US$750,000,000 9.125% BB+ Sept. 15, 2014 US$650,000,000 7.75% BB+ Dec. 10, 2018 US$750,000,000 8.375% BB+ * URUGUAY: State Firm Invests US$2.16MM to Set Up Power Meters -------------------------------------------------------------- Administracion Nacional de Usinas y Trasmisiones Electricas aka UTE, the state-run energy firm of Uruguay, said in a statement that it invested about US$2.16 million in the first five months for the installation of electricity meters. According to the statement, about US$1.47 million were used to install meters for 24,500 residential customers. Some US$685,000 went to meters for 3,060 "strategic" clients like firms. The US$2.16 million is 71.4% of the total amount invested in 2004 and 2005 combined. UTE invested as much as US$2.83 million in meter installations for residential clients in 2004 and 2005 combined, with US$1.92 million for strategic clients. Business News Americas relates that the company's customers experience losses in energy, 9% are from technical losses due to the physical process of the energy's transformation and distribution. About 10% of energy is lost through non-technical means like theft and fraud, UTE said in its statement. * * * As reported in the Troubled Company Reporter-Latin America 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 ================= PETROLEOS DE VENEZUELA: Inks Training Accord with University ------------------------------------------------------------ Petroleos de Venezuela, the state-owned oil company in Venezuela, told Business News Americas that it has signed an agreement with Robert Gordon University of Scotland for the training of firm workers in the oil and gas engineering areas. About 60 Petroleos de Venezuela employees will benefit from the accord, BNamericas relates. According to BNamericas, Luis Vierma -- Petroleos de Venezuela deputy E&P head -- and Andrew McCreath, the university director of technological information at Robert Gordon, joined the signing ceremony. Petroleos de Venezuela aims to train 600 workers at Robert Gordon over the next five years, BNamericas states. 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. SIDERURGICA DEL TURBIO: Concludes US$113 Million Refinancing ------------------------------------------------------------ Siderurgica del Turbio aka Sidetur has concluded a US$113 million refinancing, LatinLawyer Online reports. LatinLawyer relates that on April 26 this year, Sidetur Finance BV, a unit of Sidetur in Holland, issued US$100 million in bonds. Sidetur guarantees the 10% notes, which will be due in 2016. Deutsche Bank Securities was the underwriter for the issuance, LatinLawyer says. According to LatinLawyer, the US$100 million was used to purchase a participation interest in a loan held by Deutsche Bank's subsidiary in London. The loan, says LatinLawyer, would also mature in 2016. It consolidated all the external debt owed by Sidetur and its majority shareholder, Sivensa, to a banking syndicate headed by ING. The debt would due in 2009. Carlos Omana of D'Empaire Reyna Bermudez Abogados, the advisor of Deutsche Bank, told LatinLawyer Online, "The importance of this issuance is that it is only the second international debt issue from a private Venezuelan issuer since foreign exchange controls were imposed here in 2003." According to LatinLawywer, CA La Electricidad de Caracas made the first issuance. Deutsche Bank also granted Sidetur a US$13 million short-term loan, LatinLawyer states. The loan matured on March 31, 2006. * * * As reported in the Troubled Company Reporter on April 19, 2006, Standard & Poor's Rating Services said that it assigned its 'B' long-term corporate credit rating to Caracas, Venezuela-based Siderurgica del Turbio S.A. -- Sidetur. In addition, Standard & Poor's assigned its 'B' senior unsecured debt rating to the company's proposed US$100 million fixed-rate notes due 2016. The outlook is stable. *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella Mae Hechanova, and Christian Toledo, Editors. Copyright 2006. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. 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