/raid1/www/Hosts/bankrupt/TCRLA_Public/060714.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
Friday, July 14, 2006, Vol. 7, Issue 139
Headlines
A R G E N T I N A
AGRITECH INVERSORA: Shareholders To Decide New Share Issuance
BANCO GALICIA: Introduces New SMS Banking Service
CEPA SA: Trustee Presents Individual Reports in Court on Aug. 23
CEVISER SA: Trustee Will Verify Creditors' Claims Until Oct. 31
DELLTECH SA: Deadline for Verification of Claims Is on Oct. 10
DIAZ Y QUIRINI: Seeks Court Approval to Reorganize Business
EXPRESO ATLAS: Enters Bankruptcy on Court Orders
INTEGRATED CUSTOM: Court Appoints Trustee for Bankruptcy Case
MALI DEL NORTE: Individual Reports Due in Court on Aug. 10
METROGAS: British Gas Presses US$200MM Claim Against Argentina
MULTICANAL: S&P Puts D Ratings on US$719-Million Debts
NUEVO LIDER: Last Day for Verification of Claims Is on Oct. 17
RESTAURANT LIGURE: Asks Bankruptcy Protection from Court
SUPPLY-STORE: Trustee Will Verify Proofs of Claim Until Oct. 13
* ARGENTINA: Faces US$200-Mil. Suit from MetroGAS Shareholder
B A H A M A S
WINN-DIXIE: Rejects 23 Executory Contracts & Unexpired Leases
B A R B A D O S
SECUNDA INT'L: Receives Tenders & Consents on US$125MM Sr. Notes
B E L I Z E
* BELIZE: Inks Central American Border Accord
* BELIZE: Posts Increase in Tourism Arrivals in Jan-May 2006
B E R M U D A
CARISMA LIMITED: Last Day to File Proofs of Claim Is on July 26
CARISMA TRADING: Proofs of Claim Filing Is Until July 26
B O L I V I A
PETROLEOS DE VENEZUELA: Launches Exploration with Bolivian YPFB
* BOLIVIA: State Firm Launches Exploration with PDVSA
B R A Z I L
BANCO NACIONAL: Loans US$27.4 Million to Norskan Offshore
EMBRATEL PARTICIPACOES: CAF Grants US$100MM Loan for Expansion
PETROLEO BRASILEIRO: Discovers Light Oil in the Santos Basin
C A Y M A N I S L A N D S
MIDWAY INVESTMENT: Final Shareholders Meeting Is Set for Sept.13
PROMO SPORTCAR: Final Shareholders Meeting Is on Sept. 13
PULSAR PROPERTIES: Last Shareholders Meeting Is Set for Sept. 13
C H I L E
FRESH DEL MONTE: Declares US$0.05 Per Share Quarterly Dividend
C O L O M B I A
BANCOLOMBIA: Net Income Reaches COP290.93 Bil. In First 6 Mos.
* COLOMBIA: IDB Loans US$200 Mil. to Boost Competitiveness
C O S T A R I C A
* COSTA RICA: Yearly Caffeine Imports Reaches 500 Tons
* COSTA RICA: Inks Central American Border Accord
D O M I N I C A N R E P U B L I C
FALCONBRIDGE: Inco CEO Says Offer Still Better Than Xstrata's
E C U A D O R
* ECUADOR: Posts US$2.95 Bil. Jan-May Oil Export Revenues
E L S A L V A D O R
* EL SALVADOR: Approves Central American Border Accord
G U A T E M A L A
* GUATEMALA: Inks Central American Border Agreement
H O N D U R A S
* HONDURAS: Inks Central American Border Accord
J A M A I C A
DIGICEL LTD: Moody's Rates US$150-Million Notes Offering at B3
KAISER ALUMINUM: Court Approves Zurich Settlement Pact
MIRANT CORP: Gov't Halts Public Listing of Stake in Unit
M E X I C O
GREAT PANTHER: KPMG Raises Going Concern Doubt
GREAT PANTHER: Company Says It's Now in "Best Shape" Ever
KERR-MCGEE: Will Hold Special Stockholders Meeting on Aug. 10
NEWPARK: Filing Delay Cues S&P to Retain BB- Rating on NegWatch
N I C A R A G U A
* NICARAGUA: President Hesitates on Oil Accord with Venezuela
P A N A M A
* PANAMA: Inks Central American Border Accord
P A R A G U A Y
* PARAGUAY: Farmers Demanding Land Reform Occupy Private Farms
P E R U
* PERU: US Congress Urged to Ratify Free Trade Pact With Country
P U E R T O R I C O
ADELPHIA COMMS: Court Confirms Century-TCI & Parnassos Plan
ADELPHIA COMMS: FCC Votes on Sale to Comcast & Time Warner
ADVANCED MEDICAL: Alcon Settles Patent Suit with $121MM Payment
OCA INC: BofA & Secured Lenders Want Equity Committee Disbanded
U R U G U A Y
* URUGUAY: President Okays Puntas del Chileno Port Construction
V E N E Z U E L A
CITGO PETROLEUM: Says No More Station Cuts After Refinery Sale
PETROLEOS DE VENEZUELA: Increasing Oil Export to China
* VENEZUELA: OPEC Boosted Production in June by 200,000 B/D
- - - - -
=================
A R G E N T I N A
=================
AGRITECH INVERSORA: Shareholders To Decide New Share Issuance
-------------------------------------------------------------
Agritech Inversora's shareholders will decide July 27 if they'll
increase capital and absorb accumulated losses, Nosis reports.
The company's board has proposed raising capital from
ARS4,142,968.71 to ARS9 million. Once approved, the company
will issue 485,703,129 of ordinary shares, of 0.01 pesos of
nominal value each. The new titles holders will be entitled to
vote and receive dividends.
Also, the shareholders will have to decide if they'll absorb the
company's ARS22,992,418 accumulated losses.
Agritech Inversora S.A. markets irrigation machines and products
for the farming industry in Argentina. The Company also grows
crops and invests in farming businesses.
On June 25, 2004, Evaluadora Latinoamericana S.A. Calificadora
de Riesgo maintained its 'D' rating on ARS4.5 million of
corporate bonds issued by Agritech Inversora S.A., according to
Argentina's securities regulator, the Comision Nacional de
Valores.
The rating, which was given based on the Company's financial
status as of March 31, 2004, affected bonds described as
"Primera Serie de obligaciones negociables." The bonds will
mature on Oct. 5, 2007.
A 'D' rating is issued to bonds that are in default.
BANCO GALICIA: Introduces New SMS Banking Service
-------------------------------------------------
Banco de Galicia y Buenos Aires' clients can now send and receive
bank-related information through its new short-message-sending
service, La Nacion reports.
America Movil's subsidiary, CTI Movil, and Sony Ericsson set-up the
SMS service for Banco Galicia, Business News Americas says.
According to BNamericas, the service allows the bank's customers
to:
-- make payments;
-- make bank transfers;
-- request for information; and
-- receive alerts regarding payment dues, balances, automatic
debits and fixed-term deposits.
* * *
As reported on Apr. 12, 2006, the Argentine arm of Standard &
Poor's assigned these ratings to Banco de Galicia y Buenos
Aires' debts:
-- Obligaciones negociables, serie 6, emitted on July 19,
2002 for US$73,000,000, emitted under the program for
US$1000 million
* Last due: Aug. 3, 2007
* Rate: raA
-- Obligaciones Negociables, clase 7 for US$43,000,000,
included under the US$1000 million program
* Last due: Aug. 3, 2007
* Rate: raA
-- Program of obligaciones negociables, media term, for
US$2,000,000,000
* Rate: raA
-- Obligaciones Negociables simples 8-11-93, for
US$21,400,000
* Last due: Nov. 1, 2004
* Rate: raD
-- Obligaciones negociables simples for US$21,400,000
* Last due: Nov. 1, 2004
* Rate: raD
-- Obligaciones Negociables emitted for US$9,000,000,
included under the US$1000 million program.
* Last due: Dec. 20, 2005
* Rate: raD
CEPA SA: Trustee Presents Individual Reports in Court on Aug. 23
----------------------------------------------------------------
Lucas Bernardo Oddo, the court-appointed trustee for Cepa S.A.'s
reorganization proceeding, will present individual reports in
court on Aug. 23, 2006. A general report that contains an audit
of the company's accounting and banking records will follow on
Oct. 4, 2006.
Mr. Oddo validated creditors' proofs of claim until
June 27, 2006.
On April 10, 2007, creditors will vote on a settlement plan that
Cepa S.A. will lay on the table.
A court in La Plata, Buenos Aires, handles the case.
The debtor can be reached at:
Cepa S.A.
Calle 27 Numero 627, La Plata
Buenos Aires, Argentina
The trustee can be reached at:
Lucas Bernardo Oddo
Plaza Paso 92, La Plata
Buenos Aires, Argentina
CEVISER SA: Trustee Will Verify Creditors' Claims Until Oct. 31
---------------------------------------------------------------
Pablo Luis Perla, the court-appointed trustee for Ceviser S.A.'s
bankruptcy case, will verify creditors' proofs of claim until
Oct. 31, 2006.
Creditors who fail to submit their proofs of claims won't
receive any post-liquidation distribution that Mr. Perla will
make.
Court No. 8 in Buenos Aires declared Ceviser bankrupt at the
request of Maria Marcos de Paldino, whom it owes US$8,334.54.
Clerk No. 16 assists the court in the proceeding.
The debtor can be reached at:
Ceviser S.A.
Bolivar 187
Buenos Aires, Argentina
The trustee can be reached at:
Pablo Luis Perla
Avenida Leandro N. Alem 651
Buenos Aires, Argentina
DELLTECH SA: Deadline for Verification of Claims Is on Oct. 10
--------------------------------------------------------------
Court-appointed trustee Roberto Jose Massacane will verify
creditors' proofs of claim against bankrupt company Delltech
S.A. until Oct. 10, 2006.
Creditors who fail to present their proofs of claims won't
receive any post-liquidation distribution that Mr. Massacane
will make.
Mr. Massacane will present the validated claims in court as
individual reports on Nov. 22, 2006. A general report that
contains an audit of Delltech's accounting and banking records
will follow on Feb. 6, 2007.
The trustee can be reached at:
Roberto Jose Massacane
Roque Saenz Pena 846
Buenos Aires, Argentina
DIAZ Y QUIRINI: Seeks Court Approval to Reorganize Business
-----------------------------------------------------------
Court No. 3 in Buenos Aires is studying the merits of Diaz y
Quirini S.A.I.C. y F.'s petition to reorganize its business.
The company filed a "Concurso Preventivo" petition after
defaulting on its obligations.
The petition, once approved by the court, will allow Diaz y
Quirini to negotiate a settlement with its creditors in order to
avoid a straight liquidation.
Clerk No. 6 assists the court in the case.
The debtor can be reached at:
Diaz y Quirini S.A.I.C. y F.
Los Patos 2948
Buenos Aires, Argentina
EXPRESO ATLAS: Enters Bankruptcy on Court Orders
------------------------------------------------
Expreso Atlas S.R.L. enters bankruptcy protection after a court
in Rosario, Santa Fe, ordered the company's liquidation. The
order transfers control of the company's assets to a court-
appointed trustee who will supervise the liquidation
proceedings.
Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of Expreso Atlas' accounting
and business records. The report submissin dates have not been
disclosed.
The debtor can be reached at:
Expreso Atlas S.R.L.
San Martin 1274, Rosario
Santa Fe, Argentina
INTEGRATED CUSTOM: Court Appoints Trustee for Bankruptcy Case
-------------------------------------------------------------
A court in Rosario, Santa Fe, appointed Marcelo Anibal Fernandez
to supervise the bankruptcy proceeding of Integrated Custom
Services S.R.L.
As trustee, Mr. Fernandez will:
-- verify creditors' proofs of claim; and
-- prepare and present individual reports based on the
verified claims and a general report that contains an
audit of Integrated Custom's accounting and banking
records.
The deadline for verification of claims and the report
submission dates have not been disclosed.
The debtor can be reached at:
Integrated Custom Services S.R.L.
Entre Rios 779, Rosario
Santa Fe, Argentina
The trustee can be reached at:
Marcelo Anibal Fernandez
Avebida San Martin 3533, Rosario
Santa Fe, Argentina
MALI DEL NORTE: Individual Reports Due in Court on Aug. 10
----------------------------------------------------------
Adriana Beatriz Benzer, the court-appointed trustee for Mali del
Norte S.A.'s bankruptcy case, will present individual reports in
court on Aug. 10, 2006. A general report that contains an audit
of the company's accounting and banking records will follow on
Sept. 21, 2006.
Ms. Benzer validated creditors' proofs of claim until
June 15, 2006.
A court in San Isidro, Buenos Aires, declared Mali del Norte
bankrupt after defaulting on its obligations.
The debtor can be reached at:
Mali del Norte S.R.L.
Del Arca y Rio Lujan, San Fernando
Buenos Aires, Argentina
The trustee can be reached at:
Adriana Beatriz Benzer
Ituzaingo 349 Casillero 4029, San Isidro
Buenos Aires, Argentina
METROGAS: British Gas Presses US$200MM Claim Against Argentina
--------------------------------------------------------------
British Gas Group, 45% owner of Metrogas SA, asserts a
US$200-million claim against Argentina for freezing public rates
during the country's financial crisis in 2001.
British Gas filed its suit with the Washington office of the
International Centre for Settlement of Investment Disputes. The
hearing started last week and will last for 10 days.
Additionally, British Gas asks Argentina to increase power
rates. The Argentine government has not included power
providers among those which can implement a 25% rate hike.
Headquartered in Buenos Aires, Argentina, MetroGAS S.A. --
http://www.metrogas.com.ar/-- distributes gas to Buenos Aires
and southern and eastern greater metropolitan Buenos Aires. The
Company has a 35-year concession that began in 1992 to provide
natural gas in this area. The concession is renewable for an
additional 10 years. MetroGAS supplies some 2 million customers
in Buenos Aires through 15,840 km of pipelines, representing
about 26% of all gas retailed in Argentina. MetroGAS is 45%
owned by a subsidiary of UK gas production company BG Group and
26% owned by a unit of Spanish oil company Repsol YPF.
* * *
As reported on June 29, 2006, the Argentine arm of Standard &
Poor's assigned these ratings on Metrogas S.A.'s four debts:
-- Program of Obligaciones Negociables for US$600 million
* Rate: raD
* Date of balance: Mar. 31, 2006
-- Obligaciones Negociables
i) Serie 2-A for US$6,254,764
* Rate: raBB
* Date of balance: Mar. 31, 2006
ii) Serie 2-B for EUR26,070,450
* Rate: raBB
* Date of balance: Mar. 31, 2006
iii) Serie 1 for US$236,285,638
* Rate: raBB
* Date of balance: Mar. 31, 2006
* * *
As reported in the Troubled Company Reporter-Latin America on
July 6, 2006, Metrogas S.A.'s four debts were rated by Moody's
Latin America:
-- Obligaciones Negociables Serie 2-A for US$6,254,764, B1
-- Serie A for US$100 million included under the global
program for US$600 million
* Last due: April 1, 2003
* Rate: D
-- ON Serie 1 for US$236,285,638, B1
-- ONs Serie B for EUR110 million
* Last due: Sept. 27, 2002
* Rate: D
The ordinary class B shares had been included in category 4.
The ratings actions were based on the financial status of
Metrogas at Mar. 31, 2006.
MULTICANAL: S&P Puts D Ratings on US$719-Million Debts
------------------------------------------------------
The Argentine arm of Standard & Poor's assigned these ratings on
Multicanal SA based on its financial results for the period
ended Mar. 31, 2006:
-- Serie E of Obligaciones Negociables for US$175 million,
included under the program for US$1.050 billion:
* Last due: April 15, 2009
* Rate: raD
-- Serie J of the ON for US$144 million, included under the
ON program for US$1.050 billion:
* Last due: no date
* Rate: raD
-- Obligaciones Negociables simples, with due in 10 years for
US$125 million:
* Last due: Feb. 1, 2007
* Rate: raD
-- Obligaciones Negociables simples, with due in 5 years for
US$125 million:
* Last due: Feb. 1, 2002
* Rate: raD
-- SERIE C, for US$150 million, under the US$1.05 billion
program:
* Last due: April, 15, 2018
* Rate: raD
Multicanal S.A. -- http://www.multicanal.com.ar/-- is an
Argentinean multiple cable systems operator with its principal
operations in Argentina and smaller operations in Uruguay and
Paraguay. Grupo Clarin SA owns Multicanal.
NUEVO LIDER: Last Day for Verification of Claims Is on Oct. 17
--------------------------------------------------------------
Clara Auerhan, the court-appointed trustee for Nuevo Lider
S.A.'s bankruptcy proceeding, will verify creditors' proofs of
claim until Oct. 17, 2006.
Creditors who fail to submit their proofs of claims won't
receive any post-liquidation distribution that Ms. Auerhan will
make.
Court No. 6 in Buenos Aires declared Nuevo Lider bankrupt at the
request of Union Cortadores de la Indumentaria, which it owes
US$8,668.36
Clerk No. 11 assists the court in the proceeding.
The debtor can be reached at:
Nuevo Lider S.A.
Tonelero 6160
Buenos Aires, Argentina
The trustee can be reached at:
Clara Auerhan
Uruguay 872
Buenos Aires, Argentina
RESTAURANT LIGURE: Asks Bankruptcy Protection from Court
--------------------------------------------------------
Court No. 17 in Buenos Aires is currently reviewing the merits
of the bankruptcy petition filed by Restaurant Ligure S.A.
Argentine daily La Nacion reports that the company filed the
request after defaulting on its debt payments on July 18, 2004.
The petition, once granted by the court, will allow Restaurant
Ligure to negotiate a settlement with its creditors in order to
avoid a straight liquidation.
Clerk No. 33 assists the court on this case.
The debtor can be reached at:
Restaurant Ligure S.A.
Paraguay 764
Buenos Aires, Argentina
SUPPLY-STORE: Trustee Will Verify Proofs of Claim Until Oct. 13
---------------------------------------------------------------
Juan Jose Romanelli, the court-appointed trustee for Supply-
Store S.R.L.'s bankruptcy case, will verify creditors' proofs of
claim until Oct. 13, 2006.
Creditors who fail to submit their proofs of claims won't
receive any post-liquidation distribution that Mr. Romanelli
will make.
Court No. 8 in Buenos Aires declared Supply-Store bankrupt at
the behest of Ernesto Rodriguez e Hijos S.A., which it owes
US$21,251.79.
Clerk No. 16 assists the court in the proceeding.
The debtor can be reached at:
Supply-Store S.R.L.
H. Yrigoyen 2251
Buenos Aires, Argentina
The trustee can be reached at:
Juan Jose Romanelli
Gandara 2700
Buenos Aires, Argentina
* ARGENTINA: Faces US$200-Mil. Suit from MetroGAS Shareholder
-------------------------------------------------------------
British Gas Group, 45% owner of MetroGAS SA, asserts a US$200-
million claim against Argentina for freezing public rates during
the financial crisis in 2001.
British Gas filed its suit with the Washington office of the
International Centre for Settlement of Investment Disputes. The
hearing started last week and will last for 10 days.
Additionally, British Gas asks Argentina to increase power
rates. The Argentine government has not included power
supplier among those who can implement a 25% rate hike.
Headquartered in Buenos Aires, Argentina, MetroGAS S.A. --
http://www.metrogas.com.ar/-- distributes gas to Buenos Aires
and southern and eastern greater metropolitan Buenos Aires. The
Company has a 35-year concession that began in 1992 to provide
natural gas in this area. The concession is renewable for an
additional 10 years. MetroGAS supplies some 2 million customers
in Buenos Aires through 15,840 km of pipelines, representing
about 26% of all gas retailed in Argentina. MetroGAS is 45%
owned by a subsidiary of UK gas production company BG Group and
26% owned by a unit of Spanish oil company Repsol YPF.
* * *
As reported on June 29, 2006, the Argentine arm of Standard &
Poor's assigned these ratings on Metrogas S.A.'s four debts:
-- Program of Obligaciones Negociables for US$600 million
* Rate: raD
* Date of balance: Mar. 31, 2006
-- Obligaciones Negociables
i) Serie 2-A for US$6,254,764
* Rate: raBB
* Date of balance: Mar. 31, 2006
ii) Serie 2-B for EUR26,070,450
* Rate: raBB
* Date of balance: Mar. 31, 2006
iii) Serie 1 for US$236,285,638
* Rate: raBB
* Date of balance: Mar. 31, 2006
* * *
As reported in the Troubled Company Reporter-Latin America on
July 6, 2006, Metrogas S.A.'s four debts were rated by Moody's
Latin America:
-- Obligaciones Negociables Serie 2-A for US$6,254,764, B1
-- Serie A for US$100 million included under the global
program for US$600 million
* Last due: April 1, 2003
* Rate: D
-- ON Serie 1 for US$236,285,638, B1
-- ONs Serie B for EUR110 million
* Last due: Sept. 27, 2002
* Rate: D
The ordinary class B shares had been included in category 4.
The ratings actions were based on the financial status of
Metrogas at Mar. 31, 2006.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling RD Dec. 14, 2005
Long Term IDR B Dec. 14, 2005
Short Term IDR B- Jun. 3, 2005
Local Currency
Long Term Issuer
Default Rating B Jun. 3, 2005
=============
B A H A M A S
=============
WINN-DIXIE: Rejects 23 Executory Contracts & Unexpired Leases
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida
authorized Winn-Dixie Stores, Inc., and its debtor-affiliates to
reject 23 executory contracts and unexpired leases, effective
as of June 29, 2006.
As reported in the Troubled Company Reporter on June 26, 2006,
the Debtors said that the contracts were no longer necessary to
their operations.
A list of the Contracts rejected is available for free at
http://ResearchArchives.com/t/s?c16
By rejecting the Contracts, the Debtors will avoid unnecessary
expenses and burdensome obligations that provide no tangible
benefit to their estates and creditors, D. J. Baker, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, in New York, asserted.
According to the Debtors, some of the Contracts are unnecessary
because they relate to facilities that have been sold or closed.
These contracts consist of:
(a) a warehouse service agreement with American Cold
Storage-North America, L.P., for the Debtors former
Louisville warehouse;
(b) a copier equipment lease with Great America Leasing
Corporation;
(c) a transportation agreement with Kenan Advantage Group,
Inc., for shipping services to stores that are now
closed;
(d) an inventory agreement between Deep South Products,
Inc., and Phoenix Closures; and
(e) a service agreement with Waste Management for a
closed store in Alabama.
The rest of the Contracts consist of:
(1) several pharmacist service agreements;
(2) several information technology contracts;
(3) a uniform rental agreement with Cintas Corporation;
(4) a service agreement with Safety-Kleen Corp.;
(5) a security guard service agreement with Wackenhut
Corporation; and
(6) a merchant processing agreement with Nova Information
Systems, Inc., and Wachovia Bank.
The Debtors either no longer need these agreements or they can
obtain similar services from alternative sources at a lower
cost.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates stores across the
Southeastern United States and in the Bahamas and employs
approximately 90,000 people. The Company, along with 23 of its
U.S. subsidiaries, filed for chapter 11 protection on Feb. 21,
2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14,
2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840).
D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and
Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King
& Spalding LLP, represent the Debtors in their restructuring
efforts. Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 43; Bankruptcy Creditors' Service, Inc., 215/945-
7000).
===============
B A R B A D O S
===============
SECUNDA INT'L: Receives Tenders & Consents on US$125MM Sr. Notes
----------------------------------------------------------------
Secunda International Limited received tenders and consents from
holders of US$125.0 million in aggregate principal amount of its
Senior Secured Floating Rate Notes due 2012 (CUSIP No.
81370FAB4), representing 100.0% of the outstanding Notes, as of
5:00 p.m., New york City time, on July 12, 2006, which was the
deadline for holders to tender their Notes in order to receive
the consent payment in connection with the tender offer.
Accordingly, the requisite consents to adopt the proposed
amendments to the indenture governing the Notes have been
received, and a supplemental indenture to effect the proposed
amendments will be executed shortly. The proposed amendments to
be effected by the supplemental indenture, among other things,
eliminate substantially all of the restrictive covenants and
certain events of default in the indenture governing the Notes.
The supplemental indenture will not become operative until the
Initial Settlement Date, which will be after the Consent Time
but no earlier than July 20, 2006, as specified by the company,
and is subject to the conditions. Adoption of the proposed
amendments required the consent of holders of at least a
majority of the aggregate principal amount of the outstanding
Notes. Notes tendered prior to the Consent Time may no longer
be withdrawn and consents delivered prior to the Consent Time
may no longer be revoked, except in the limited circumstances
described in the Offer to Purchase.
The tender offer and consent solicitation are subject to the
satisfaction of certain conditions, including the receipt of
tenders from holders of a majority in principal amount of the
outstanding Notes, entering into a new credit facility or
another financing vehicle that provides Secunda International
with sufficient cash to fund the tender offer and consent
solicitation, the successful pricing of the initial public
offering of the company's common shares in Canada, and
satisfaction of customary conditions.
Holders of the Notes who validly tendered their Notes by the
Consent Time and consented to the proposed amendments will
receive the total consideration as described in the Offer to
Purchase per US$1,000 principal amount of Notes accepted for
purchase. Holders who validly tender their Notes after the
Consent Time, but on or prior to the expiration date of the
tender offer, will receive the total consideration per US$1,000
principal amount of Notes accepted for purchase, less the
consent payment of US$30.00 per US$1,000 principal amount of
Notes. The total consideration is expected to be determined as
of 2:00 p.m., New York City time, today, July 14, 2006.
Acceptance of and payment for Notes validly tendered before the
Consent Time will be on the Initial Settlement Date. The tender
offer is scheduled to expire at 5:00 p.m., New York City time,
on July 28, 2006, unless extended or earlier terminated.
The complete terms and conditions of the tender offer and
consent solicitation are described in the Offer to Purchase and
Consent Solicitation Statement of Secunda International dated
June 27, 2006, copies of which may be obtained by contacting the
information agent for the tender offer:
D.F. King and Co., Inc.
Tel: (212) 269-5550 (collect)
(800) 758-5378 (U.S. toll-free)
Banc of America Securities LLC is the exclusive dealer manager
and solicitation agent for the tender offer and consent
solicitation. Additional information concerning the tender offer
and consent solicitation may be obtained by contacting:
Banc of America Securities LLC
High Yield Special Products
Tel: (212) 847-5836 (collect)
(888) 292-0070 (U.S. toll-free)
Headquartered in Nova Scotia, Secunda International Limited
-- http://www.secunda.com/-- is a wholly owned Canadian vessel
owner/ operator with locations in the UK and Barbados. Secunda
is the leading supplier of marine support services to oil and
gas companies in one of the world's harshest marine environments
-- off the East Coast of Canada.
* * *
Standard & Poor's Ratings Services placed on June 28, 2006, its
'B-' long-term corporate credit and senior secured debt ratings
on offshore support vessel provider Secunda International Inc.
on CreditWatch with positive implications, where they were
placed Sept. 29, 2005.
===========
B E L I Z E
===========
* BELIZE: Inks Central American Border Accord
---------------------------------------------
Belize has entered, along with other Central American nations,
into an agreement to lessen border controls and set up a common
customs system on the way to negotiating a free trade agreement
with the European Union, according to a report by the Associated
Press.
AP notes that the signing of the agreement, which would allow
residents to cross borders without passports or visas, was also
participated by leaders of:
-- Guatemala,
-- El Salvador,
-- Nicaragua,
-- Honduras,
-- Panama, and
-- Costa Rica.
Panama's President Martin Torrijos told AP, "This accord will
open huge opportunities to boost the development and well-being
of the Central American people."
The accord is yet to be ratified in each of the participating
countries, AP relates.
AP underscores that except for Panama, Costa Rica and Belize,
the countries already have a common customs system, with only
one common checkpoint at their border crossings, speeding the
movement of people and goods.
Heeding to measures that the European Union has asked for free
trade negotiations, the leaders of the Central American nations
also agreed a reform on the Central American Court of Justice
and the Central American Parliament, AP states.
Costa Rica's President Oscar Arias, who is also the current
leader of the Central American Integration group, told AP that
he thought it was unfair of the European Union to put those
kinds of conditions on trade talks.
However, Honduras' President Manuel Zelaya told AP that the
group has to be clear when it comes to integration. It has to
strengthen the "largely toothless court and the parliament as
worthy and symbolic instruments."
Both the Central American countries and the European Union had
announced in May that they hoped to start trade negotiations
before the year 2006 ends, AP states.
* * *
Moody's Investor Service assigned these ratings to Belize:
-- CC LT Foreign Bank Depst Caa3
-- CC LT Foreign Curr Debt Caa3
-- CC ST Foreign Bank Depst NP
-- CC ST Foreign Curr Debt NP
-- LC Curr Issuer Rating Caa3
-- FC Curr Issuer Rating Caa3
-- Foreign Currency LT Debt Caa3
-- Local Currency LT Debt Caa3
Standard & Poor's Rating Service assigned these ratings to
Belize:
-- Foreign Currency LT Debt CCC-
-- Local Currency LT Debt CCC+
-- Foreign Currency ST Debt C
-- Local Currency ST Debt C
* BELIZE: Posts Increase in Tourism Arrivals in Jan-May 2006
------------------------------------------------------------
As indicated by statistics obtained from the Immigration
Department, Belize has seen an increase in the number of visits
for the period of January to May 2006.
Arrivals from all border points -- PGIA, Santa Elena Border
Station, Belize Western Border Station, Dangriga Town Seaport,
Punta Gorda Seaport -- for the period, increased by 4.3%
accounting for 119,645 overnight stays.
The Phillip Goldson International Airport represents 73.8% of
the total arrivals. The total number of tourists documented at
PGIA for January thru May was 90,918 visitors. During this same
period last year the total arrivals was 86,864 visitors, which
represents a 4.7% increase this year.
The cruise sector welcomed 159 ships to port, accounting for a
total of 341,731 passengers on board from January thru May 2006.
This represents a 21.5% decrease in cruise passengers, compared
to this same period for last year. One of the major reasons for
the decline was the removal of the Carnival Elation from its
Western-Caribbean itinerary. This vessel, which was a year-
round, weekly vessel, has since been taken out of commission as
it served to house Katrina victims in the Louisiana area. For
the months of June thru November, 2006, cruise ship calls will
continue to show decreased numbers in comparison to the same
period last year.
The updated 2006 forecast of Travel Industry Association or TIA
predicts another record year for consumer spending on travel.
According to TIA's Summer Forecast, Americans will take 325.6
million leisure-person trips during June, July, and August 2006.
Americans expect to stay away an average of six nights on their
longest pleasure trip. Travelers plan to spend an average of
US$1,033 on their longest pleasure trip this summer, essentially
unchanged from the summer of 2005, which was at US$1,019. This
proves beneficial to Belize as the North American Market
accounts for approximately 62% of the total tourism arrivals in
Belize throughout the year.
* * *
Moody's Investor Service assigned these ratings to Belize:
-- CC LT Foreign Bank Depst Caa3
-- CC LT Foreign Curr Debt Caa3
-- CC ST Foreign Bank Depst NP
-- CC ST Foreign Curr Debt NP
-- LC Curr Issuer Rating Caa3
-- FC Curr Issuer Rating Caa3
-- Foreign Currency LT Debt Caa3
-- Local Currency LT Debt Caa3
Standard & Poor's Rating Service assigned these ratings to
Belize:
-- Foreign Currency LT Debt CCC-
-- Local Currency LT Debt CCC+
-- Foreign Currency ST Debt C
-- Local Currency ST Debt C
=============
B E R M U D A
=============
CARISMA LIMITED: Last Day to File Proofs of Claim Is on July 26
---------------------------------------------------------------
Carisma Limited's creditors are given until July 26, 2006, to
prove their claims to Beverly Mathias, the company's liquidator,
or be excluded from receiving any distribution or payment.
Creditors are required to send by the July 26 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mathias.
A final general meeting will be held at the liquidator's place
of business on Aug. 23, 2006, at 9:30 a.m.
Carisma Limited's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed. Furthermore, the shareholders will decide whether
or not Carisma Limited will be dissolved.
Carisma Limited's shareholders agreed on July 7, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Beverly Mathias
Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
CARISMA TRADING: Proofs of Claim Filing Is Until July 26
--------------------------------------------------------
Carisma Trading Limited's creditors are given until
July 26, 2006, to prove their claims to Beverly Mathias, the
company's liquidator, or be excluded from receiving any
distribution or payment.
Creditors are required to send by the July 26 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Mr. Mathias.
A final general meeting will be held at the liquidator's place
of business on Aug. 23, 2006, at 9:30 a.m.
Carisma Trading Limited's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed. Furthermore, the shareholders will decide whether
or not Carisma Trading Limited will be dissolved.
Carisma Trading Limited's shareholders agreed on July 7, 2006,
to place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Beverly Mathias
Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9, Bermuda
=============
B O L I V I A
=============
PETROLEOS DE VENEZUELA: Launches Exploration with Bolivian YPFB
---------------------------------------------------------------
Petroleos de Venezuela, the state-run oil company of Venezuela,
disclosed on Wednesday the launching of exploration with
Yacimientos Petroliferos Fiscales Bolivianos, its Bolivian
counterpart, Prensa Latina reports.
Prensa Latina states that as part of the US$1.2 billion
investment, the two firms will conduct exploration on their
first hydrocarbon areas.
Manuel Morales, a spokesperson of Yacimientos Petroliferos, told
Prensa Latina that joint projects would start in the Bolivian
provinces of Iturralde and Franz Tamayo.
Prensa Latina notes that mining projects are also part of the
joint work and investment.
Yacimientos Petroliferos' accords with Petroleos de Venezuela
include forging a joint venture, Prensa Latina relates, citing
Jorge Alvarado, the director of Yacimientos Petroliferos.
According to him, the Bolivian state firm will hold a 51% stake
in the project while its Venezuelan counterpart will have 49%.
The cooperation accords, says Prensa Latina, are part of the
plan signed in Caracas by Venezuela's President Hugo Chavez and
Bolivia's Evo Morales.
Each Venezuelan investment in the hydrocarbon sector of Bolivia
is stronger, after the industry's nationalization on May 1,
analysts told Prensa Latina.
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.
* BOLIVIA: State Firm Launches Exploration with PDVSA
-----------------------------------------------------
Yacimientos Petroliferos Fiscales Bolivianos, the state-owned
oil company of Bolivia, disclosed on Wednesday the launching of
exploration with Petroleos de Venezuela, its Venezuelan
counterpart, Prensa Latina reports.
Prensa Latina states that as part of the US$1.2 billion
investment, the two firms will conduct exploration on their
first hydrocarbon areas.
Manuel Morales, a spokesperson of Yacimientos Petroliferos, told
Prensa Latina that joint projects would start in the Bolivian
provinces of Iturralde and Franz Tamayo.
Prensa Latina notes that mining projects are also part of the
joint work and investment.
Yacimientos Petroliferos' accords with Petroleos de Venezuela
include forging a joint venture, Prensa Latina relates, citing
Jorge Alvarado, the director of Yacimientos Petroliferos.
According to him, the Bolivian state firm will hold a 51% stake
in the project while its Venezuelan counterpart will have 49%.
The cooperation accords, says Prensa Latina, are part of the
plan signed in Caracas by Venezuela's President Hugo Chavez and
Bolivia's Evo Morales.
Each Venezuelan investment in the hydrocarbon sector of Bolivia
is stronger, after the industry's nationalization on May 1,
analysts told Prensa Latina.
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.
* * *
Fitch Ratings assigned these ratings on Bolivia:
Rating Rating Date
------ -----------
Country Ceiling B- Jun. 17, 2004
Long Term IDR B- Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating B- Dec. 14, 2005
===========
B R A Z I L
===========
BANCO NACIONAL: Loans US$27.4 Million to Norskan Offshore
---------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved a financing of US$37.4 million, for the construction of
a maritime offshore support vessel by Norskan Offshore Ltda.
The project, to be built by shipyard Aker Promar S.A, will also
be financed by Merchant Navy Fund. Oil exploration and
production companies will use the vessel.
Construction of the vessel will generate 300 direct jobs and
during operation, 32 new jobs will be created.
The vessel construction will make way for the technological
training and development of the Brazilian shipyard park,
increasing its competitiveness. Additionally, it will expand
the offshore vessel fleet with national flag.
From 2002 to 2004, the global fleet increased from 2.5% to 3%
per year, having support vessels orders reaching 168
vessels/year. One of the accelerating factors of the renewal is
due to the fact that only 25% of the global fleet properly meets
the specifications to render services in deep waters. Thus, the
shifting of the oil production from shallow to deep and ultra-
deep waters has prioritized the vessels with major cargo and
hoist capacity, major potency, efficiency in the maneuvers,
besides autonomy, safety and agility in the service to platforms
in high seas.
The Norwegian companies Solstad and DOF that hold 50% each of
the share control of Norskan control Norskan Offshore Ltda. The
Solstad Group ranks 7th in the world's market of maritime
support, counting on an own fleet of 29 vessels, while DOF group
ranks 8th in that market, with an own fleet of 25 vessels. The
new vessel, of AHTS - 15.000 UT 7222 L type, will be used in the
maneuver of anchors, tow and supply to the platforms.
Norskan Offshore Ltda has already signed two agreements for the
construction of two vessels of PSV type, with shipyard Aker
Promar, in the amount of US$33.2 million. BNDES financing was
obtained using resources from the Merchant Navy Fund. The first
vessel was completed in July 2003 and, the second one, in
February 2004. Both are operating for Petrobras, with
agreements of two renewable years, for equal period.
* * *
As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook. The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.
EMBRATEL PARTICIPACOES: CAF Grants US$100MM Loan for Expansion
--------------------------------------------------------------
The Andean Development Fund or CAF disclosed in a statement that
it has granted a US$100-million loan to Embratel Participacoes
S.A. for financing expansion and other corporate purposes,
Business News Americas reports.
"With this financing we collaborate with Embratel's financing
needs, supporting its solid and competitive position in the
country," CAF's president Enrique Garcia told BNamericas.
The US100-million loan is summed up from CAF's tranche A of
US$34 million and Banco Santander Central Hispano's tranche B
US$66 million, BNamericas relates.
According to BNamericas, CAF also loaned US$32.6 million for
infrastructure operations in Santa Catarina that will boost
interstate and regional links in the state and endorse tourism,
highway and economic development.
Embratel Participacoes S.A. offers a range of complete
telecommunications solutions to the market all over Brazil,
including local, long distance domestic and international
telephone services, data, video and Internet transmission, and
is present all over the country with its satellite solutions.
Embratel is the market leader in revenues with Long Distance,
Domestic and International calls.
Embratel Participacoes is rated by Moody's:
* local currency issuer rating -- B1; and
* senior unsecured debt -- B2.
PETROLEO BRASILEIRO: Discovers Light Oil in the Santos Basin
------------------------------------------------------------
A consortium formed by Petroleo Brasileiro S.A. aka Petrobras,
BG, and by Portuguese Petrogal found light oil in the 1-BRSA-
369A-RJS (1-RJS-628A) well, located in the ultradeep Santos
Basin waters.
The well, which is still being drilled, is located in a new
exploratory frontier area, where water depth reaches 2,140
meters.
The well, the first one drilled in the BM-S-11 block, is located
250 kilometers away from the southern coast of the city of Rio
de Janeiro, and 280 kilometers away from the Duque de Caxias
Refinery or Reduc. It represents a historical landmark for oil
exploration in Brazil since it is the first one to surpass a
layer of salt that is more than 2,000 meters thick, in the
marine subsoil, and find oil.
Petrobras operates the block, holding 65% of the participation;
meanwhile, BG holds 25% and Petrogal 10%.
Because this is a new exploratory frontier, preliminary results
are very important. However, additional investments are
required to evaluate these reservoirs' volume and productivity.
As required by the legislation in effect, the National Petroleum
Agency has been informed on the discovery.
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.
* * *
Fitch Ratings 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+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with 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.
===========================
C A Y M A N I S L A N D S
===========================
MIDWAY INVESTMENT: Final Shareholders Meeting Is Set for Sept.13
----------------------------------------------------------------
Midway Investment Int. Inc.'s final shareholders meeting will be
at 12:00 noon on Sept. 13, 2006, at:
MBT Trustees (Cayman) Ltd.
3rd Floor, Piccadilly Center
Elgin Avenue, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Paolo Giacomelli
MBT Trustees Ltd.
P.O. Box 30622 S.M.B.
Grand Cayman, Cayman Islands
Tel: 945-8859
Fax: 949-9793/4
PROMO SPORTCAR: Final Shareholders Meeting Is on Sept. 13
---------------------------------------------------------
Promo Sportcar Corp.'s final shareholders meeting will be at
12:00 noon on Sept. 13, 2006, at:
MBT Trustees (Cayman) Ltd.
3rd Floor, Piccadilly Center
Elgin Avenue, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Paolo Giacomelli
MBT Trustees Ltd.
P.O. Box 30622 S.M.B.
Grand Cayman, Cayman Islands
Tel: 945-8859
Fax: 949-9793/4
PULSAR PROPERTIES: Last Shareholders Meeting Is Set for Sept. 13
----------------------------------------------------------------
Pulsar Properties Ltd.'s final shareholders meeting will be at
12:00 noon on Sept. 13, 2006, at:
MBT Trustees (Cayman) Ltd.
3rd Floor, Piccadilly Center
Elgin Avenue, George Town
Grand Cayman, Cayman Islands
These agenda will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Paolo Giacomelli
MBT Trustees Ltd.
P.O. Box 30622 S.M.B.
Grand Cayman, Cayman Islands
Tel: 945-8859
Fax: 949-9793/4
=========
C H I L E
=========
FRESH DEL MONTE: Declares US$0.05 Per Share Quarterly Dividend
--------------------------------------------------------------
Fresh Del Monte Produce Inc. declared the regular quarterly cash
dividend of US$0.05 per share, payable on September 12, 2006, to
shareholders of record on August 17, 2006.
Fresh Del Monte Produce Inc. -- http://www.freshdelmonte.com/--
is one of the world's leading vertically integrated producers,
marketers and distributors of high-quality fresh and fresh-cut
fruit and vegetables, as well as a leading producer and
distributor of prepared fruit and vegetables, juices, beverages,
snacks and desserts in Europe, the Middle East and Africa.
Fresh Del Monte markets its products worldwide under the Del
Monte(R) brand, a symbol of product quality, freshness and
reliability since 1892.
Del Monte Fresh Produce Company has 3 distribution centers in
Latin America (Argentina, Brazil, Chile) that provide a variety
of services including ripening, sorting, repacking, fresh-cut
processing, and delivery.
* * *
Standard & poor's Ratings Services assigned on June 28, 2006,
its 'BB' bank loan rating and '2' recovery rating on Fresh Del
Monte Produce, Inc.'s term loan, indicating an expected
substantial recovery of principal (80%-100%) in the event of a
payment default, and a '2' recovery rating to the revolving
credit facility. The rating agency also affirmed its 'BB'
rating on Fresh Del Monte's senior secured credit facilities
following the addition of a new US$150 million term loan to its
existing US$600 million revolving credit facility. Existing
ratings on the company, including its 'BB' corporate credit
rating, have been affirmed. The outlook is negative. About
US$434 million total debt was outstanding at March 31, 2006.
===============
C O L O M B I A
===============
BANCOLOMBIA: Net Income Reaches COP290.93 Bil. In First 6 Mos.
--------------------------------------------------------------
Bancolombia reported accumulated unconsolidated net income of
COP290.933 billion at June 30, 2006. For the first six months
of 2006, total net interest income, including investment
securities amounted to COP453.303 billion. Additionally, total
net fees and income from services amounted to COP277.434
million.
Bancolombia's total assets amounted to COP25.33 trillion in June
2006, total deposits totaled COP15.72 trillion and total
shareholders' equity amounted to COP3.00 trillion.
Bancolombia's (unconsolidated) level of past due loans as a
percentage of total loans was 2.79% as of June 30, 2006, and the
level of allowance for past due loans was 127.12%.
Market Share
According to Asociacion Bancaria e Entidades Financieras de
Colombia or ASOBANCARIA, Colombia's national banking
association, Bancolombia's market share of the Colombian
Financial System in June 2006 was:
-- 17.7% of total deposits,
-- 20.4% of total net loans,
-- 18.0% of total savings accounts,
-- 20.3% of total checking accounts and
-- 14.6% of total time deposits.
* * *
The Troubled Company Reporter-Latin America reported on
April 28, 2006, that Moody's Investors Service upgraded
Bancolombia's bank financial strength ratings to D+ from D with
a stable outlook.
Moody's added that the action concludes the review for possible
upgrade that was announced on October 13, 2005. Moreover,
Bancolombia's Ba3/Not Prime long- and short-term foreign
currency deposit ratings were affirmed. Moody's said the
outlook on all ratings is stable.
* * *
On Dec. 22, 2005, Fitch affirmed the ratings assigned on
Bancolombia, as:
-- Long-term/short-term foreign currency at 'BB/B';
-- Long-term/short-term local currency at 'BBB-/F3';
-- Individual at 'C';
-- Support at '3'.
* COLOMBIA: IDB Loans US$200 Mil. to Boost Competitiveness
----------------------------------------------------------
The IDB approved a US$200-million loan for a competitive
enhancement program in Colombia.
The objective of this 20-year loan is to help boost the
country's competitiveness by reducing legal, regulatory and
institutional barriers to international trade and business
development. The Ministry of Finance and Public Credit will
execute the loan with technical support from Colombia's National
Planning Department.
"The program seeks to strengthen the institutional framework for
implementing the Domestic Agenda for Productivity and
Competitiveness and to improve the business climate through
targeted interventions," Hunt Howell, project team leader, said.
The Domestic Agenda is an expression of common resolve on the
part of government, the regions and the private sector with
respect to the strategic actions that the country must take over
the short, medium and long terms to improve the productivity and
competitiveness of its productive apparatus.
"The Bank's country strategy for Colombia recognizes the
importance of the Domestic Agenda as a mechanism whereby the
Government of Colombia seeks to reach agreement with subnational
entities and the private sector on the strategic direction and
actions that must be taken to support and improve the
competitiveness environment," Mr. Howell said.
Some of the specific objectives of the competitiveness
enhancement program include enhancing the institutional capacity
to implement and administer trade agreements, helping the labor
force respond promptly to the productive sector's changing needs
in the face of free trade, and reducing the red tape burden on
businesses in their dealings with government, all in the context
of a macroeconomic framework conducive to growth and
productivity.
* * *
On May 30, 2005, Fitch Ratings affirmed Colombia's ratings as:
-- Long-term foreign currency 'BB';
-- Country ceiling 'BB';
-- Local currency 'BBB-';
-- Short-term 'B'.
Fitch said the Rating Outlook is Stable.
===================
C O S T A R I C A
===================
* COSTA RICA: Yearly Caffeine Imports Reaches 500 Tons
------------------------------------------------------
Costa Rica imports about 500 tons of caffeine every year to be
used in pharmaceuticals and drinks, even though one of its major
exports include coffee, A.M. Costa Rica reports, citing Orlando
Hernandez -- a lawmaker affiliated with the Partido Accion
Ciudadana.
A.M. Costa Rica notes that there is a lack of caffeine as no one
extracts the substance in the country.
Mr. Hernandez told A.M. Costa Rica that sometimes the caffeine
that is imported is taken from the same beans that Costa Rica
exported.
According to A.M. Costa Rica, Mr. Hernandez said that the
extraction process is simple. Lawmakers will be asked to ratify
an accord with Brazil and Colombia.
Money would be saved in not pushing the beans around, Mr.
Hernandez told A.M. Costa Rica. Costa Rica would produce a less
expensive product because it would not have to buy caffeine
outside the country.
* * *
Costa Rica is rated by Moody's:
-- CC LT Foreign Bank Depst Ba2
-- CC LT Foreign Curr Debt Ba1
-- CC ST Foreign Bank Depst NP
-- CC ST Foreign Curr Debt NP
-- Foreign Currency LT Debt Ba1
-- Local Currency LT Debt Ba1
Fitch assigned these ratings to Costa Rica:
-- Foreign currency long-term debt, BB
-- Local currency long-term debt, BB
-- Foreign currency short-term debt, B
Costa Rica carries these ratings from Standard & Poor's:
-- Foreign Currency LT Debt BB
-- Local Currency LT Debt BB+
-- Foreign Currency ST Debt B
-- Local Currency ST Debt B
* COSTA RICA: Inks Central American Border Accord
-------------------------------------------------
Costa Rica's President Oscar Arias has signed with other heads
of Central American nations an agreed to lessen border controls
and set up a common customs system on the way to negotiating a
free trade agreement with the European Union, according to a
report by the Associated Press.
AP notes that the signing of the agreement, which would allow
residents to cross borders without passports or visas, was also
participated by leaders of:
-- Guatemala,
-- El Salvador,
-- Nicaragua,
-- Honduras,
-- Panama, and
-- Belize.
Panama's President Martin Torrijos told AP, "This accord will
open huge opportunities to boost the development and well-being
of the Central American people."
The accord is yet to be ratified in each of the participating
countries, AP relates.
AP underscores that except for Panama, Costa Rica and Belize,
the countries already have a common customs system, with only
one common checkpoint at their border crossings, speeding the
movement of people and goods.
Heeding to measures that the European Union has asked for free
trade negotiations, the leaders of the Central American nations
also agreed a reform on the Central American Court of Justice
and the Central American Parliament, AP states.
President Arias, who is also the current leader of the Central
American Integration group, told AP that he thought it was
unfair of the European Union to put those kinds of conditions on
trade talks.
However, Honduras' President Manuel Zelaya told AP that the
group has to be clear when it comes to integration. It has to
strengthen the "largely toothless court and the parliament as
worthy and symbolic instruments."
Both the Central American countries and the European Union had
announced in May that they hoped to start trade negotiations
before the year 2006 ends, AP states.
* * *
Costa Rica is rated by Moody's:
-- CC LT Foreign Bank Depst Ba2
-- CC LT Foreign Curr Debt Ba1
-- CC ST Foreign Bank Depst NP
-- CC ST Foreign Curr Debt NP
-- Foreign Currency LT Debt Ba1
-- Local Currency LT Debt Ba1
Fitch assigned these ratings to Costa Rica:
-- Foreign currency long-term debt, BB
-- Local currency long-term debt, BB
-- Foreign currency short-term debt, B
Costa Rica carries these ratings from Standard & Poor's:
-- Foreign Currency LT Debt BB
-- Local Currency LT Debt BB+
-- Foreign Currency ST Debt B
-- Local Currency ST Debt B
===================================
D O M I N I C A N R E P U B L I C
===================================
FALCONBRIDGE: Inco CEO Says Offer Still Better Than Xstrata's
-------------------------------------------------------------
Inco Chairman and CEO Scott Hand commented on the revised bid
from Xstrata plc for Falconbridge Limited:
"Inco's offer for Falconbridge remains the best alternative on
the table for Falconbridge shareholders, both in terms of
immediate and long-term value creation. The implied value of
our offer for Falconbridge under our friendly three-way
agreement with Falconbridge and Phelps Dodge is CUS$61.65 per
share, based on [Tuesday's] mid-day share price for Phelps
Dodge. This represents a premium of 4.5% above the Xstrata
offer.
"Xstrata's offer also remains subject to a variety of
conditions, including receipt of necessary regulatory approvals,
and accordingly, Xstrata may not be able to close its offer on
July 21 as they have stated. By contrast, Inco has obtained all
of the regulatory clearances required to complete its
transaction.
"Only Inco's offer gives both current Inco and Falconbridge
shareholders the opportunity to participate in the great
earnings, cash flow and growth potential of Phelps Dodge Inco.
Phelps Dodge Inco will be the world's number one producer of
nickel, and the second largest producer of copper - the two
metals with the best fundamentals going forward. It will also
be one of the strongest super-majors in the global mining
industry, with an impressive portfolio of greenfield and
brownfield growth projects, and the financial firepower to
pursue a wide range of future options.
"Inco's offer, unlike Xstrata's, also provides the only
opportunity to fully capture the outstanding synergies available
in the Sudbury Basin and elsewhere. To date, the synergies
identified through the Phelps Dodge Inco combination are
estimated at US$900 million annually, with a net present value
of US$5.8 billion. By bringing Inco and Falconbridge operations
together in Sudbury, Phelps Dodge Inco is the only transaction
that offers significant new opportunities for investment, growth
and employment in the Sudbury Basin.
"For these reasons and others we strongly encourage Falconbridge
shareholders to tender their shares to the Inco offer."
As reported in yesterday's Troubled Company Reporter, Xstrata
plc, through its wholly-owned subsidiary Xstrata Canada Inc.,
increased its fully underwritten all-cash offer to acquire all
of the outstanding common shares of Falconbridge Limited not
already owned by the Xstrata group from CUS$52.50 to CUS$59 in
cash per Falconbridge share, or a total consideration of
CUS$18.1 billion (US$16.2 billion). The expiry time for the
increased Xstrata offer is on July 21, 2006, at midnight
(Vancouver time).
About Inco
Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N)
-- http://www.inco.com/-- is the world's #2 producer of nickel,
which is used primarily for manufacturing stainless steel and
batteries. Inco also mines and processes copper, gold, cobalt,
and platinum group metals. It makes nickel battery materials
and nickel foams, flakes, and powders for use in catalysts,
electronics, and paints. Sulphuric acid and liquid sulphur
dioxide are produced as byproducts. The company's primary
mining and processing operations are in Canada, Indonesia, and
the UK.
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 CDNUS$150 million 5% convertible and callable
bonds due April 30, 2007, carries Standard & Poor's BB+ rating.
=============
E C U A D O R
=============
* ECUADOR: Posts US$2.95 Bil. Jan-May Oil Export Revenues
---------------------------------------------------------
Ecuador's central bank told Dow Jones Newswire that the
country's oil export revenues increased 58% to US$2.95 billion
between the months of January and May this year, compared with
the US$1.87 billion recorded in the same period last year.
Dow Jones reports that Ecuador's exports increased 9% to 59
million barrels in the first five months of 2006, compared with
the 54 million barrels recorded last year. Daily exports
between January and May therefore increased to 390,728 barrels
from the daily export 357,616 barrels registered in the same
period of 2005.
The average price of crude in the five months starting January
rose 43% to US$49.89 per barrel from the US$34.84 a barrel in
the same period last year, Dow Jones relates, citing the central
bank.
The official data show that of Ecuador's total exports between
January and May, private firms in Ecuador sold about 32.02
million barrels or 54%. This means revenue of about US$1.56
billion. Petroecuador, Ecuador's state-owned oil company,
exported the remaining 46%, Dow Jones states.
* * *
Fitch assigned these ratings on Ecuador:
Rating Rating Date
------ -----------
Country Ceiling B- Aug. 29, 2005
Long Term IDR B- Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
=====================
E L S A L V A D O R
=====================
* EL SALVADOR: Approves Central American Border Accord
------------------------------------------------------
El Salvador's President Elias Antonio Saca has signed with other
heads of Central American nations an agreement to lessen border
controls and set up a common customs system on the way to
negotiating a free trade agreement with the European Union,
according to a report by the Associated Press.
AP notes that the signing of the agreement, which would allow
residents to cross borders without passports or visas, was also
participated by leaders of:
-- Guatemala,
-- Costa Rica,
-- Nicaragua,
-- Honduras,
-- Panama, and
-- Belize.
Panama's President Martin Torrijos told AP, "This accord will
open huge opportunities to boost the development and well-being
of the Central American people."
The accord is yet to be ratified in each of the participating
countries, AP relates.
AP underscores that except for Panama, Costa Rica and Belize,
the countries already have a common customs system, with only
one common checkpoint at their border crossings, speeding the
movement of people and goods.
Heeding to measures that the European Union has asked for free
trade negotiations, the leaders of the Central American nations
also agreed a reform on the Central American Court of Justice
and the Central American Parliament, AP states.
Costa Rica's President Oscar Arias, who is also the current
leader of the Central American Integration group, told AP that
he thought it was unfair of the European Union to put those
kinds of conditions on trade talks.
However, Honduras' President Manuel Zelaya told AP that the
group has to be clear when it comes to integration. It has to
strengthen the "largely toothless court and the parliament as
worthy and symbolic instruments."
Both the Central American countries and the European Union had
announced in May that they hoped to start trade negotiations
before the year 2006 ends, AP states.
* * *
Fitch Ratings assigned these ratings on El Salvador:
Rating Rating Date
------ -----------
Country Ceiling BB+ Jun. 18, 2004
Long Term IDR BB+ Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=================
G U A T E M A L A
=================
* GUATEMALA: Inks Central American Border Agreement
---------------------------------------------------
Guatemala's President Oscar Jose Rafael Berger Perdomo has
signed with other heads of Central American nations an agreement
to lessen border controls and set up a common customs system on
the way to negotiating a free trade agreement with the European
Union, according to a report by the Associated Press.
AP notes that the signing of the agreement, which would allow
residents to cross borders without passports or visas, was also
participated by leaders of:
-- Panama,
-- Costa Rica,
-- Nicaragua,
-- El Salvador,
-- Honduras, and
-- Belize.
Panama's President Martin Torrijos told AP, "This accord will
open huge opportunities to boost the development and well-being
of the Central American people."
The accord is yet to be ratified in each of the participating
countries, AP relates.
AP underscores that except for Panama, Costa Rica and Belize,
the countries already have a common customs system, with only
one common checkpoint at their border crossings, speeding the
movement of people and goods.
Heeding to measures that the European Union has asked for free
trade negotiations, the leaders of the Central American nations
also agreed a reform on the Central American Court of Justice
and the Central American Parliament, AP states.
Costa Rica's President Oscar Arias, who is also the current
leader of the Central American Integration group, told AP that
he thought it was unfair of the European Union to put those
kinds of conditions on trade talks.
However, Honduras' President Manuel Zelaya told AP that the
group has to be clear when it comes to integration. It has to
strengthen the "largely toothless court and the parliament as
worthy and symbolic instruments."
Both the Central American countries and the European Union had
announced in May that they hoped to start trade negotiations
before the year 2006 ends, AP states.
* * *
Fitch Ratings assigned these ratings on Guatemala:
Rating Rating Date
------ -----------
Country Ceiling BB+ Feb. 22, 2006
Long Term IDR BB+ Feb. 22, 2006
Short Term IDR B Feb. 22, 2006
Local Currency
Long Term Issuer
Default Rating BB+ Feb. 22, 2006
* * *
Fitch also rated Guatemala's senior unsecured bonds:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
Aug. 3, 2007 US$150,000,000 8.5% BB+
Nov. 8, 2011 US$325,000,000 10.25% BB+
Aug. 1, 2013 US$300,000,000 9.25% BB+
Oct. 6, 2034 US$330,000,000 8.125% BB+
===============
H O N D U R A S
===============
* HONDURAS: Inks Central American Border Accord
-----------------------------------------------
Honduras' President Manuel Zelaya Rosales has signed with other
heads of Central American nations an agreement to lessen border
controls and set up a common customs system on the way to
negotiating a free trade agreement with the European Union,
according to a report by the Associated Press.
AP notes that the signing of the agreement, which would allow
residents to cross borders without passports or visas, was also
participated by leaders of:
-- Guatemala,
-- Costa Rica,
-- Nicaragua,
-- El Salvador,
-- Panama, and
-- Belize.
Panama's President Martin Torrijos told AP, "This accord will
open huge opportunities to boost the development and well-being
of the Central American people."
The accord is yet to be ratified in each of the participating
countries, AP relates.
AP underscores that except for Panama, Costa Rica and Belize,
the countries already have a common customs system, with only
one common checkpoint at their border crossings, speeding the
movement of people and goods.
Heeding to measures that the European Union has asked for free
trade negotiations, the leaders of the Central American nations
also agreed a reform on the Central American Court of Justice
and the Central American Parliament, AP states.
Costa Rica's President Oscar Arias, who is also the current
leader of the Central American Integration group, told AP that
he thought it was unfair of the European Union to put those
kinds of conditions on trade talks.
However, President Zelaya told AP that the group has to be clear
when it comes to integration. It has to strengthen the "largely
toothless court and the parliament as worthy and symbolic
instruments."
Both the Central American countries and the European Union had
announced in May that they hoped to start trade negotiations
before the year 2006 ends, AP states.
* * *
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
=============
DIGICEL LTD: Moody's Rates US$150-Million Notes Offering at B3
--------------------------------------------------------------
Moody's Investors Service assigned a B3 senior unsecured rating
to the US$150 million add-on Notes offering of Digicel Limited
and affirmed the company's existing B3 senior unsecured and B1
Corporate Family Ratings. The outlook has been changed to
stable from positive.
The outlook change to stable reflects Moody's opinion that
Digicel's execution risks have increased following its plans to
raise EBITDA leverage by approximately three quarters of a turn
and consume a significant amount of cash over the next year in
pursuit of accelerating new market growth opportunities. As a
result, Moody's believes the company's ratings are no longer
likely to move higher during this time period.
The B1 Corporate Family Rating reflects Digicel's strong market
position as the largest wireless telecommunications carrier in
the Caribbean as well as its successful track record at gaining
significant market share and producing solid operating results
relatively quickly after new markets are launched. The rating
also incorporates an increase in restricted group EBITDA-based
leverage to just over 4x (pro-forma fiscal 2006) and the fact
that the incremental debt proceeds are not being used within the
restricted group. Finally, although Moody's expects the company
to consume a significant amount of cash in fiscal 2007, we also
expect continued strong operating momentum, coupled with reduced
capital expenditure requirements in its mature markets. This
should enable the company's restricted group to improve its free
cash flow to debt and debt to EBITDA to roughly 6% and 3.5x
respectively by the end of fiscal 2008.
Headquartered in Hamilton, Bermuda, Digicel is the largest
provider of wireless telecommunication services in the Caribbean
with approximately 1.9 million subscribers as at March 31, 2006.
KAISER ALUMINUM: Court Approves Zurich Settlement Pact
------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware:
(i) approved Kaiser Aluminum & Chemical Corporation and its
affiliates' settlement agreement with Zurich Insurance
Company (Switzerland), and Zurich International
(Bermuda), Ltd.; and
(ii) authorized the sale of certain Zurich-issued policies
back to Zurich free and clear of liens, claims,
encumbrances or other interests.
As reported in the Troubled Company Reporter on June 15, 2006,
Zurich agreed to make a US$1,600,000 settlement payment not
later than June 30, 2006, pursuant to the Settlement Agreement.
Zurich will deliver the settlement amount to U.S. Bank National
Association, as settlement account agent, unless a Trigger Date
has occurred, in which case, payment will be made to Wells Fargo
Bank, N.A., as insurance escrow agent, for distribution to the
Funding Vehicle Trust.
Other terms of the Settlement Agreement are:
(a) Zurich will receive all benefits of being designated as a
Settling Insurance Company in the Plan of Reorganization,
including the benefits of the Personal Injury Channeling
Injunctions;
(b) KACC releases all its rights with respect to Zurich's
participation under the Subject Policies and other rights
under additional policies, and will dismiss Zurich from
the Products Coverage Action;
(c) KACC will sell the Subject Policies back to Zurich, and
Zurich will buy back the Policies free and clear of all
liens, claims, or interests, with Zurich's payment of the
Settlement Amount constituting the consideration for the
buy-back;
(d) If any claim is brought against any of the Zurich that is
subject to a PI Channeling Injunction, the Funding
Vehicle Trust will exercise all reasonable efforts to
establish that the claim is enjoined as to Zurich; and
(e) Zurich will not seek from any entity other than its
reinsurers or retrocessionaires:
* reimbursement of any payments that it is obligated
to make under the Settlement Agreement;
* any other payments Zurich has made to or for the
benefit of KACC or, upon its creation, the Funding
Vehicle Trust, under the Subject Policies, whether by
way of contribution, subrogation, indemnification or
otherwise.
In no event will Zurich make any claim for or relating to
the insurance, reinsurance or retrocession against any
KACC Party.
About Kaiser Aluminum
Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications. The Company, along with its Jamaican subsidiaries
-- Alpart Jamaica Inc. and Kaiser Jamaica Corporation -- filed
for chapter 11 protection on Feb. 12, 2002 (Bankr. Del. Case No.
02-10429), and has sold off a number of its commodity businesses
during course of its cases. Corinne Ball, Esq., at Jones Day,
represents the Debtors in their restructuring efforts. Lazard
Freres & Co. serves as the Debtors' financial advisor. Lisa G.
Beckerman, Esq., H. Rey Stroube, III, Esq., and Henry J. Kaim,
Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, and William P.
Bowden, Esq., at Ashby & Geddes represent the Debtors' Official
Committee of Unsecured Creditors. The Debtors' Chapter 11 Plan
became effective on July 6, 2006. 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. 100; Bankruptcy Creditors'
Service, Inc., 609/392-0900)
MIRANT CORP: Gov't Halts Public Listing of Stake in Unit
--------------------------------------------------------
The Jamaican government has put off preparations for a public
listing of its 20% stake in the Jamaica Public Service Company
Ltd., which is owned Mirant Corp., the Jamaica Gleaner reports.
According to The Gleaner, the government is considering its
response to Mirant's announcement of selling a majority stake in
the Jamaica Public Service.
Phillip Paulwell, the technology and energy minister, told The
Gleaner, "We were just going to hire the consultants to prepare
for the IPO (initial public offer). The Cabinet will now have
to look at if, when, and how we dispose our 20%."
The government will also consider reacquiring Mirant's 80% stake
in the Jamaica Public Service, The Gleaner states, citing Mr.
Paulwell.
The Gleaner notes that Mirant acquired the majority stake in the
Jamaica Public Service five years ago when it paid the
government US$183 million.
To repurchase the Jamaica Public Service, the government would
have to find the cash for the buy-back. However, it is yet
under pressure to reduce the public sector deficit and return to
a fiscal surplus, The Gleaner relates.
Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- is a competitive energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines. Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally. Mirant Corporation filed for chapter 11 protection on
July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the
terms of a confirmed Second Amended Plan on January 3, 2006.
Thomas E. Lauria, Esq., at White & Case LLP, represented the
Debtors in their successful restructuring. When the Debtors
filed for protection from their creditors, they listed
US$20,574,000,000 in assets and US$11,401,000,000 in debts.
===========
M E X I C O
===========
GREAT PANTHER: KPMG Raises Going Concern Doubt
----------------------------------------------
Auditors working for KPMG LLP in Vancouver, Canada, raised
substantial doubt about Great Panther Resources Limited's
ability to continue as a going concern after auditing the
Company's consolidated financial statements for the years ended
Dec. 31, 2005, and 2004. The auditors pointed to the Company's
recurring losses and operating cash flow deficiencies.
Great Panther reported a net loss of CDN5,231,685 for the year
ended Dec. 31, 2005, compared to a net loss of CDN2,893,657 for
the same period in 2004. The Company had no revenues in 2004
and 2005.
At Dec. 31, 2005, the Company's balance sheet showed
CDN19,218,970 in total assets, CDN5,836,542 in total
liabilities, and CDN13,382,428 in shareholders' equity. On that
date, the Company had CDN9,842,741 accumulated deficit.
Topia Mine Project
The Company purchased on June 30, 2005, 100% of the ownership
rights for US$2,551,678 in all the fixed assets, machinery,
equipment and Topia Mining Concessions pursuant to the Topia
Purchase Agreement located in the Municipality of Topia, State
of Durango, Mexico.
Guanajuato Mine Project
The Company purchased on Oct. 25, 2005, a 100% ownership
interest for US$7,250,000 in a group of producing silver-gold
mines in Guanajuato, Mexico, which includes two main properties,
a plant, workshops and administration facilities, mining
infrastructure, equipment, and certain surface rights (real
estate).
Subsequent Events
Subsequent to Dec. 31, 2005, the Company raised gross cash
proceeds of approximately US$5,600,000 from the exercise of
warrants and options, closed a US$2.02 million convertible loan
private placement and also raised gross cash proceeds of
US$15,000,000 through a private placement.
A full-text copy of the Company's annual report is available for
free at http://ResearchArchives.com/t/s?d96
Great Panther Resources Limited, through its acquisition of the
Topia and Guanajuato Mines in Mexico, has transformed itself
from a company that was exclusively focused on mineral
exploration to a company involved in the mining of precious and
base metals.
GREAT PANTHER: Company Says It's Now in "Best Shape" Ever
---------------------------------------------------------
In a Memo dated July 13, 2006, Kaare Foy, Executive Chairman and
Chief Financial Officer for Great Panther Resources Limited,
says the Company "has never been in a better financial condition
in its 26 year history, than it is now."
KPMG LLP raised substantial doubt about Great Panther's ability
to continue as a going concern after completing its review of
the company's financial statements for the year ending
Dec. 31, 2005. Subsequent to that date, the Company raised
gross cash proceeds of approximately US$5,600,000 from the
exercise of warrants and options, closed a US$2.02 million
convertible loan private placement and also raised gross cash
proceeds of US$15,000,000 through a private placement
transaction.
"Having just closed a US$10 million dollar underwritten
placement which was over-subscribed by an additional US$5
million, Great Panther has never been in a more sound and liquid
financial condition," Mr. Foy says.
Mr. Foy provides these additional facts about how well the
company is doing in his July 13 Memo:
A. Producing Properties
* The Company has 100% ownership of the Santa Fe
Silver-Gold Mines in Guanajuato Mexico, with no
NSR. Property includes the Valenciana Mine, once
described at the "richest silver mine in the
world", a 1,200 tonne per day mill on site,
increasing production having recommenced during
June 2006 following refurbishing of the plant.
* Great Panther also has 100% ownership of the high
grade Topia Silver Mine in Durango, Mexico, with
no NSR, past production of over 15 million ounces
of silver and a 200 tonne per day mill on site,
where mining recommenced in September 2005, and
production recommenced during November 2005.
B. Exploration Properties
* Virimoa Project, Mexico: Option to acquire 100%
of the 148-hectare Virimoa Gold Property near
the Topia Silver Mine.
* San Antonio Gold Project, Mexico: Option to
acquire 100%, over 10,000 hectares, high grade
veins and lower grade zone with bulk tonnage
potential.
* Km 66 Project: Signed Letter of Intent for an
option to acquire a 100% interest in the Km 66
Project in eastern Durango State, Mexico,
consisting of 17 concessions comprising 3,508
hectares and which hosts significant
silver-lead-zinc-gold mineralization with
excellent potential for a large bulk tonnage
deposit.
C. Debt:
* Other than a Cdn. US$2,020,000 convertible debenture
which matures in 2010, the Company has no debt,
no lines of credit, does not hedge its production
at this time, and its minimal payables are current
or better.
D. Cash on Hand is in excess of US$14 million.
E. Market
* There is currently a world-wide bull market for
the Company's main products of silver and gold,
as well as its copper, lead and zinc by-products.
A full-text copy of the Company's latest annual report is
available for free at http://ResearchArchives.com/t/s?d96
Great Panther Resources Limited, through its acquisition of the
Topia and Guanajuato Mines in Mexico, has transformed itself
from a company that was exclusively focused on mineral
exploration to a company involved in the mining of precious and
base metals.
KERR-MCGEE: Will Hold Special Stockholders Meeting on Aug. 10
-------------------------------------------------------------
Kerr-McGee Corp. will hold a special meeting with its
stockholders to vote on the proposed merger with Anadarko
Petroleum Corp. on August 10, 2006, at 2:00 p.m. CDT at:
Robert S. Kerr Auditorium
Kerr-McGee Center
123 Robert S. Kerr Ave.
Oklahoma City, Oklahoma
Stockholders who hold shares of Kerr-McGee Corp. common stock at
the close of business on July 6, 2006, the record date of the
special meeting, will be entitled to vote on the proposed
merger.
Kerr-McGee announced on June 23, 2006, that its board of
directors had unanimously approved an all cash offer of US$70.50
per common share to merge into Anadarko. The merger agreement
and the merger are described in the company's definitive proxy
statement, which was filed with the United States Securities and
Exchange Commission and sent to stockholders on July 12, 2006.
Headquartered in Oklahoma City, Kerr-McGee Corp. --
http://www.kerr-mcgee.com/-- is an oil and natural gas
exploration and production company focused in the U.S. onshore,
deepwater Gulf of Mexico, as well as in Africa, Asia, and Latin
America.
* * *
Moody's Investors Service upgraded on May 2, 2006, Kerr-McGee
Corp.'s long-term debt ratings to Ba2 from Ba3. The upgrade
reflected improved operating performance and reduced financial
risk following repayment of US$4.25 billion in term loans
borrowed in 2005.
Standard & Poor's Ratings Services affirmed on May 10, 2006, its
'BB+' corporate credit rating on Kerr-McGee Corp. and revised
its outlook on the company to stable from negative.
Fitch Ratings placed on June 26, 2006, these ratings of Kerr-
McGee Corp. on Rating Watch Positive following the company's
announcement that it has agreed to be acquired by Anadarko
Petroleum Corporation:
-- Long-term Issuer Default Rating 'BB';
-- Senior unsecured credit facility 'BB'; and
-- Senior unsecured notes 'BB'.
NEWPARK: Filing Delay Cues S&P to Retain BB- Rating on NegWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services retained its 'BB-' corporate
credit rating on oilfield services company Newpark Resources
Inc. on CreditWatch with negative implications following the
company's announcement that it will restate the financial
filings for the previous five years and further delay filing
statements for the first quarter of 2006.
"Newpark's ability to file these statements is crucial to
maintaining the current ratings," said Standard & Poor's credit
analyst Ben Tsocanos. "Conversely, findings of material or
widespread accounting problems, extended delays in the process,
or deterioration in relations with its credit counterparties
would almost certainly lead to a downgrade," said Mr. Tsocanos.
The rating on Newpark was placed on CreditWatch on April 17,
2006, after the company announced that it had put its CFO and
certain other personnel on administrative leave pending an
internal examination of accounting irregularities.
The investigation determined that a subsidiary of Newpark had
made improper payments to a supplier and that Newpark failed to
account for related transactions appropriately. The company
expects to make the necessary accounting adjustments in restated
financial filings. Following the completion of the
investigation, management terminated the employment of the CFO
and former CEO.
Standard & Poor's expects to revisit the CreditWatch listing
following the filing of restated financial statements, or by the
end of September in the event that filing is delayed.
The CreditWatch listing for Newpark reflects the likelihood that
ratings will be either affirmed or lowered in the near term.
Newpark Resources Inc. is headquartered in Metairie, Louisiana.
The company provides its products and services principally to
the oil and gas exploration and production industry in the
United States Gulf Coast, west Texas, the United States Mid-
continent, the United States Rocky Mountains, Canada, Mexico,
and areas of Europe and North Africa.
=================
N I C A R A G U A
=================
* NICARAGUA: President Hesitates on Oil Accord with Venezuela
-------------------------------------------------------------
Nicaragua's President Enrique Bolanos is hesitant to support an
oil contract with Venezuela, Prensa Latina reports.
Prensa Latina notes that the energy crisis the country has been
experiencing is affecting hospitals, businesses, production
sectors and even State institutions. Still President Bolanos
refused to support an accord the Nicaraguan Municipalities
Association had signed with Venezuelan state-run Petroleos de
Venezuela in April, which establishes a yearly supply of almost
10 million oil barrels under preferential payment conditions.
Under the agreement, 60% of the gasoline and diesel purchased
from Venezuela would have a 90-day term at the international
market price. The rest would have a two-year grace period and a
23-year credit at 1% interest, Prensa Latina states.
According to Prensa Latina, President Bolanos refuses to support
the agreement, fearing the political return that would bounce
back to the Sandinista National Liberation Front -- which
controls 87 of the 154 city halls of Nicaragua and whose leader
Daniel Ortega was one of the main agents of the accord.
The Nicaraguan leader had declared that he was willing to
reactivate The Caracas Agreement, Prensa Latina relates.
* * *
Moody's Investor Service assigned these ratings to Nicaragua:
Rating Rating Date
------ -----------
Long Term Caa1 June 30, 2003
Senior Unsecured
Debt B3 June 30, 2003
===========
P A N A M A
===========
* PANAMA: Inks Central American Border Accord
---------------------------------------------
Panama's President Martin Torrijos has signed with other heads
of Central American nations an agreement to lessen border
controls and set up a common customs system on the way to
negotiating a free trade agreement with the European Union,
according to a report by the Associated Press.
AP notes that the signing of the agreement, which would allow
residents to cross borders without passports or visas, was also
participated by leaders of:
-- Guatemala,
-- Costa Rica,
-- Nicaragua,
-- El Salvador,
-- Honduras, and
-- Belize.
President Torrijos told AP, "This accord will open huge
opportunities to boost the development and well-being of the
Central American people."
The accord is yet to be ratified in each of the participating
countries, AP relates.
AP underscores that except for Panama, Costa Rica and Belize,
the countries already have a common customs system, with only
one common checkpoint at their border crossings, speeding the
movement of people and goods.
Heeding to measures that the European Union has asked for free
trade negotiations, the leaders of the Central American nations
also agreed a reform on the Central American Court of Justice
and the Central American Parliament, AP states.
Costa Rica's President Oscar Arias, who is also the current
leader of the Central American Integration group, told AP that
he thought it was unfair of the European Union to put those
kinds of conditions on trade talks.
However, Honduras' President Manuel Zelaya told AP that the
group has to be clear when it comes to integration. It has to
strengthen the "largely toothless court and the parliament as
worthy and symbolic instruments."
Both the Central American countries and the European Union had
announced in May that they hoped to start trade negotiations
before the year 2006 ends, AP states.
* * *
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 A R A G U A Y
===============
* PARAGUAY: Farmers Demanding Land Reform Occupy Private Farms
--------------------------------------------------------------
Paraguayan farmers occupied 20 private farms on Wednesday,
demanding that the government fulfill its promise of a land
reform, Prensa Latina reports.
Luis Aguayo, the head of the Farmer Organizations Coordination
Table, told Prensa Latina that the move may not be legal, but it
is lawful as it is the only way to let get the Paraguayan
officials' attention.
In 2005 the Farmer Organizations had proposed to President
Nicanor Duarte a program of expropriation of large idle farms of
foreign ownership, Prensa Latina relates, citing Mr. Aguayo.
However, until now the group has not received a response.
There are 300,000 landless families in Paraguay. Any Paraguayan
family has the right to a piece of land to cultivate and live
on, but the authorities remain indifferent to these needs, Mr.
Aguayo told Prensa Latina.
Protest organizers said that groups of people sympathizing with
the farmers have gathered in seven provinces to protect the
latter from any violent government reaction, Prensa Latina
states.
* * *
Moody's assigned these ratings on Paraguay:
-- CC LT Foreign Bank Deposit, Caa2
-- CC LT Foreign Curr Debt, Caa1
-- CC ST Foreign Bank Deposit, NP
-- CC ST Foreign Currency Debt, NP
-- LC Currency Issuer Rating, Caa1
-- FC Curr Issuer Rating, Caa1
-- Local Currency LT Debt, WR
* * *
Standard & Poor's assigned these ratings on Paraguay:
-- Foreign Currency LT Debt B-
-- Local Currency LT Debt B-
-- Foreign Currency ST Debt C
-- Local Currency ST Debt C
=======
P E R U
=======
* PERU: US Congress Urged to Ratify Free Trade Pact With Country
----------------------------------------------------------------
After two and a half years of arduous negotiations between the
governments of Peru and the United States, the free trade
agreement was signed in Washington before Peruvian President,
Alejandro Toledo, who later returned to Peru to present it
before the national congress for consideration, amidst a full
electoral process.
The Peruvian-American Chamber of Commerce applauded the Peruvian
Congress' lawmakers -- from all sides of the political spectrum
-- who understood the treaty's historical significance, which
has given Peru the opportunity to be one of the region's first
countries, along with Chile, to sign the agreement. The free-
trade agreement originated heated and sometimes fiery debates
between promoters and retractors, but in the end lawmakers
recognized that the agreement opens a very encouraging economic
and commercial future for the development of Peru and
substantiates the direction the country is taking.
However, the process is far from over. Peruvians who have
placed their expectations on the signing of this treaty now must
wait for the approval by both houses of the U.S. Congress. The
Peruvian-American Chamber of Commerce publicly urges lawmakers
from both houses of congress to support this accord and give
Peru the opportunity to turn this goal into an agreement that
will open the doors of American markets to Peruvian products,
providing employment and a future for thousands of Peruvians.
Similarly the Peruvian-American Chamber of Commerce requests
that the media make this appeal known and to join forces on
behalf of a country that has demonstrated responsibility in its
economic management and legal stability during the past years.
According to estimates by Peruvian authorities, this treaty will
provide employment during the next few years to over a million
Peruvians and will double exports in just four years,
consolidating the sustained growth of the last 5 years. This in
turn, will alleviate the needs of thousands of Peruvians and
will strengthen democracy in the region. It will cut down on
the number of people living in extreme poverty and create a
social environment that will allow Peru to consolidate its
ranking as one of the leaders in the region.
Minister Alfredo Ferrero and his team of negotiators and their
counterparts in the US worked painstakingly at the negotiating
table for 30 months, overcoming differences in such
controversial topics as medical products (pharmaceuticals),
copyrights and agricultural products, which at one point put the
agreement at risk.
Peruvian American Chamber of Commerce
The Peruvian-American Chamber of Commerce is a non-profit
organization with over 15 years promoting trade between the
United States and Peru. It works closely together with other
Peruvian Chambers, Hispanic Chambers and Bi-National Chambers of
Commerce throughout the United States that have expressed their
support for this Agreement.
* * *
Fitch Ratings assigned these ratings on Peru:
Rating Rating Date
------ -----------
Country Ceiling BB Nov. 18, 2004
Long Term IDR BB Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB+ Dec. 14, 2005
=====================
P U E R T O R I C O
=====================
ADELPHIA COMMS: Court Confirms Century-TCI & Parnassos Plan
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
entered a formal order confirming the Third Modified Fourth
Amended Joint Plan of Reorganization for the Century-TCI Debtors
and the Parnassos Debtors on June 29, 2006.
A full-text copy of the Confirmation Order is available for free
at http://ResearchArchives.com/t/s?d9e
The Century-TCI Debtors and the Parnassos Debtors are debtor-
affiliates of Adelphia Communications Corporation.
The Century-TCI Debtors are comprised of:
* Century-TCI California, L.P.,
* Century-TCI California Communications, L.P.,
* Century-TCI Distribution Company, LLC, and
* Century-TCI Holdings, LLC,
The Parnassos Debtors are comprised of:
* Parnassos Communications, L.P.,
* Parnassos Distribution Company I, LLC,
* Parnassos Distribution Company II, LLC,
* Parnassos, L.P.,
* Parnassos Holdings, LLC, and
* Western NY Cablevision, L.P.
Judge Gerber finds that the Joint Venture Plan satisfies the 13
statutory requirements under Section 1129(a) of the Bankruptcy
Code.
Judge Gerber clarifies that the confirmation or consummation of
the Joint Venture Plan will not have any probative effect,
evidentiary value or affect the rights, claims or defenses of
the Debtors or any parties-in-interest with respect to any plan
for the Affiliated Debtors.
Specifically, Judge Gerber rules that confirmation or
consummation of the Joint Venture Plan will have no impact with
respect to the Bank Lender Avoidance Complaint unless expressly
resolved by the Plan and the parties reserve all their rights,
claims, defenses and arguments.
Judge Gerber further rules that the Official Committee of
Unsecured Creditors' pending Holdback Motion and Estimation
Motion will be deemed withdrawn with prejudice as of the
Effective Date solely in respect of distributions in respect of
the Bank Claims, the Bank Lender Fee Claims and the Bank Lender
Post-Effective Date Fee Claims in Class P-Bank and Class-TCI
Bank. Each of the Holdback Motion and the Estimation Motion
otherwise will remain pending and unaffected by the Joint
Venture Plan and the Confirmation Order with respect to the
other ACOM Debtors.
With respect to the Securities Class Action, the issue of
whether the releases provided by Section 12.08(b)(vi) of the
Joint Venture Plan are permissible under applicable law will be
subject to further Court decision.
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. 139;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
ADELPHIA COMMS: FCC Votes on Sale to Comcast & Time Warner
----------------------------------------------------------
The Federal Communications Commission held a public meeting
July 13 to consider approval of Adelphia Communication Corp.'s
sale of substantially all its assets to Time Warner, Inc., and
Comcast Corp.
In a notice dated July 6, 2006, the FCC said it will consider a
memorandum opinion and order regarding the applications of
Adelphia Communications Corporation and subsidiaries, Time
Warner, Inc., Time Warner Cable, Inc., and Comcast
Communications Corp. for consent to the acquisition by Time
Warner Cable and Comcast Communications of substantially all of
the domestic cable systems owned or managed by Adelphia.
According to Bloomberg News, FCC approval is among the final
hurdles remaining for ACOM's sale to Comcast and Time Warner
Cable.
FCC Urged to Require Arbitration
in Comcast/MASN Dispute
Congressman Tom Davis (R-VA-11th), Albert Wynn (D-MD-4th), and
Jim Moran (D-VA-8th) have asked the Federal Communications
Commission to make Comcast Communications' proposed merger with
Adelphia Cable contingent on Comcast entering into binding
arbitration to settle the controversy over airing Washington
Nationals baseball games.
Comcast, the Washington region's largest cable provider, has
refused to carry the Mid-Atlantic Sports Network (MASN), which
has the rights to broadcast all but a handful of Nationals
games. This dispute has denied millions of fans the opportunity
to follow their team on a day-to-day basis.
Requiring the two sides to enter into binding arbitration would
"address both the concern of lack of televised exposure of the
Nationals from a fan's perspective, and the concern of the
significant expenditure of public funds by the District of
Columbia in the hope that a successful team will spur urban
revitalization efforts in the Nations' Capital," the Congressmen
wrote.
In an e-mailed statement to Bloomberg, Comcast Executive Vice
President David Cohen said they have proposed multiple solutions
to resolve the issue. "We continue to seek a resolution that
protects our customers and National fans to get the Nationals
games on TV as quickly as possible."
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. 139;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
ADVANCED MEDICAL: Alcon Settles Patent Suit with $121MM Payment
---------------------------------------------------------------
Advanced Medical Optics, Inc., reached a settlement with Alcon,
Inc., Alcon Manufacturing, Ltd., and Alcon Laboratories, Inc.,
resolving all pending patent infringement lawsuits between the
companies on technologies used in ophthalmic surgery.
Terms of the Agreement
Under the agreement, which has an effective date of
June 30, 2006, Alcon will pay AMO a lump sum of US$121 million.
The parties agree to dismiss all existing patent litigation and
not to sue on the patents at issue, including the use of
multiple viscoelastics in one surgical procedure. In addition,
each company is granted a license to the patents covering its
existing phacoemulsification equipment features, which allows
them to market their current products without the threat of
litigation.
The settlement resolves four pending patent lawsuits between the
companies, including the December 2003 complaint filed against
Alcon in the U.S. District Court for the District of Delaware
for infringement of two AMO phacoemulsification patents for
which a judge upheld a May 2005 jury decision of infringement by
Alcon. Alcon had subsequently filed an appeal and motion for a
new trial in connection with this judgment.
"We invest substantial resources and energies to develop new
ophthalmic technologies and are pleased to bring these legal
matters to a swift and successful close for the benefit of our
stockholders and customers," said Jim Mazzo, AMO chairman,
president and chief executive officer.
About Advanced Medical Optics
Based in Santa Ana, California, Advanced Medical Optics, Inc.
(NYSE: EYE) -- http://wwwamo-inc.com/-- develops, manufactures
and markets ophthalmic surgical and contact lens care products.
AMO employs approximately 3,600 worldwide. The company has
operations in 24 countries and markets products in 60 countries.
The company's Latin American operations are in Brazil and Puerto
Rico.
* * *
As reported in the Troubled Company Reporter on June 12, 2006,
Moody's Investors Service affirmed Advanced Medical Optics,
Inc.'s existing ratings, following the company's announcement
that it is issuing, through a Rule 144A offering, up to US$500
million of convertible senior subordinated notes due 2026.
The affirmed ratings include the Company's B1 Corporate Family
Rating; B1 rating on US$300 million Sr. Secured Revolver due
2009; and B3 rating on US$350 million Convertible Senior
Subordinated Notes due 2024. The rating outlook remains stable.
OCA INC: BofA & Secured Lenders Want Equity Committee Disbanded
---------------------------------------------------------------
Bank of America, N.A., as agent for the secured lenders of OCA,
Inc., and its debtor-affiliates, asks the U.S. Bankruptcy Court
for the Eastern District of Louisiana to disband the Official
Committee of Equity Security Holders.
B. Franklin Martin, III, Esq., at McGlinchey Stafford, PLLC, in
New Orleans, Louisiana, asserts that the Court should disband
the Equity Committee for these reasons, among others:
(a) the Debtors' equity security holders are not entitled to
a distribution under the absolute priority rule;
(b) the Debtors are on the eve of soliciting votes on a plan
that provides for contingent payments to equity holders,
notwithstanding their lack of legal entitlement to that
distribution;
(c) the Equity Committee's promised litigation tactics and
delay will destabilize the Debtors' cases and business
operations, thereby jeopardizing value and risking the
loss of the current plan payments to equity security
holders;
(d) tremendous recent trading volume in the delisted common
stock of OCA has resulted in a number of investment funds
and other sophisticated parties, who can adequately
represent themselves, becoming some of the largest
equityholders of OCA; and
(e) the costs of the Equity Committee will be borne only by
the senior creditors and not the equity class, creating a
"no risk, all upside" dynamic for the Equity Committee
that is disruptive to the Debtors' attempts to stabilize
their operations.
Appointment of an equity committee is only justified when there
is a substantial likelihood that shareholders will receive a
meaningful distribution pursuant to the strict application of
the absolute priority rule and the shareholders are unable to
represent their interests in the case without an official
committee.
Upon the Debtors' emergence, their obligations to the secured
lenders would amount to US$103 million. The Debtors currently
estimate its unsecured claims to aggregate US$6 million. The
Debtors have prepared a valuation of the Reorganized Debtors'
enterprise value, estimated to be between US$73 million and
US$94 million. The Debtors clarified that a significant portion
of this projected value is entirely speculative and may not be
realized by the Reorganized Debtors for a considerable time
after their emergence, if at all. The estimated value of what
the Debtors call "core assets" -- assets directly related to the
operation of servicing orthodontists -- is only in the range of
US$46 million and US$68 million.
BofA and the secured lenders believe the Debtors' actual value
is materially lower than the Debtors' projections.
About OCA
Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices. The Debtor's client practices provide
treatment to patients throughout the United States and in Japan,
Mexico, Spain, Brazil and Puerto Rico.
The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No.
06-10179). Three Debtors also filed for bankruptcy protection
on June 1, 2006 (Bankr. E.D. La. Case No. 06-10503). William H.
Patrick, III, Esq., at Heller Draper Hayden Patrick & Horn, LLC,
represents the Debtors. Patrick S. Garrity, Esq., and William
E. Steffes, Esq., at Steffes Vingiello & McKenzie LLC represent
the Official Committee of Unsecured Creditors. Carmen H.
Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B. Cheatham,
Esq., at Adams and Reese LLP represent the Official Committee of
Equity Security Holders. When the Debtors filed for protection
from their creditors, they listed US$545,220,000 in total assets
and US$196,337,000 in total debts.
=============
U R U G U A Y
=============
* URUGUAY: President Okays Puntas del Chileno Port Construction
---------------------------------------------------------------
Uruguayan President Tabare Vazquez ratified the construction of
a port at Puntas del Chileno, El Pais reports, citing Victor
Rossi -- the public works minister.
Juan Trinchitella, the ministry's national topography director,
told Business News Americas, "This is a US$300 million project
proposed by the private sector as part of the program to
reactivate Uruguay's economy."
The program has three parts:
-- a cruise ship terminal capable of servicing yachts and
ferries;
-- real estate development; and
-- a five-star hotel/casino.
The port will be capable of handling more than 500 ships per
year, BNamericas relates, citing Mr. Trinchitella. Dredging
works will be necessary to create the required depths for the
cruise ships to dock.
The national government accepted the proposal on the project in
2005, Mr. Trinchitella BNamericas relates.
The national hydrography department, Maldonado state and the
economy ministry are now analyzing the project, Mr. Rossi told
BNamericas. The idea is to call for bids on the project as soon
as possible.
* * *
Fitch Ratings assigned these ratings on Uruguay:
Rating Rating Date
------ -----------
Country Ceiling BB- Mar. 7, 2005
Long Term IDR B+ Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
Local Currency
Long Term Issuer
Default Rating BB- Mar. 7, 2005
=================
V E N E Z U E L A
=================
CITGO PETROLEUM: Says No More Station Cuts After Refinery Sale
--------------------------------------------------------------
Citgo Petroleum Corp. told Reuters on Wednesday that there
should be no more cuts in its retail service station network
after Lyondell-Citgo Refining L.P., which it jointly owns with
Lyondell Chemical Co., is sold.
As reported in the Troubled Company Reporter-Latin America on
April 10, 2006, Citgo had signed a letter of intent with
Lyondell to jointly explore the sale of their Lyondell-Citgo
Refining L.P. Petroleos de Venezuela -- a Venezuelan state-run
oil firm and Citgo's parent company -- had said in September
2005 that it wanted to sell its stake in the refinery to recover
its US$5 billion investment. Venezuela's President Hugo Chavez
had said the Citgo refineries have been a bad deal for his
country because they buy Venezuelan oil at a discount while
paying taxes in the US, the largest buyer of Venezuelan crude.
As reported in the The Troubled Company Reporter-Latin America
on July 13, 2006, Citgo disclosed plans to stop selling gasoline
to stations in 14 states in the United States. Affected
customers were given until March 2007 to look for other
suppliers. Citgo's action stemmed from its decision to only
sell fuel refined at its US plants, instead of buying gas from
other sources to supply its customers all over the country. The
oil-refining firm's three facilities can process up to 750,000
barrels of crude oil per day. Felix Rogriquez, the chief
executive officer of Citgo, said in a statement that buying
gasoline from other sources strained the company's resources and
it can also potentially compromise its ability to provide
optimum service to customers.
According to Reuters, Bill Hatch -- Citgo's vice president of
supply and marketing -- said in a conference call that the cut
will bring demand from Citgo's branded stations in line with the
gasoline produced by Citgo and US joint venture plants of
Petroleos de Venezuela.
"Our footprint had gotten to the point we just had to cut back,"
Mr. Hatch told Reuters.
Reuters relates that supplying the Citgo's service stations
beyond the capacity of its refineries means Citgo needs to
purchase 130,000 barrels of gasoline each day in open markets.
Mr. Hatch admitted to Reuters that the situation was going to
get worse with the sale of Lyondell-Citgo, which supplies up to
120,000 barrels per day of gasoline to Citgo as part of the
partnership accord.
Reuters states that once Lyondell-Citgo is sold, a supply of
120,000 barrels per day would be gone.
"So we would be talking about a 250,000 (bpd) shortfall," Mr.
Hatch told Reuters.
Reuters notes that Citgo has also disclosed earlier plans to
sell two US asphalt plants as well as its interests in the two
largest US refined products pipelines.
Mr. Hatch explained to Reuters that with the decrease in
stations, Citgo's service station network will be in balance
with its production.
Mr. Hatch said, in behalf of Citgo, that there would be no other
divestitures, Reuters states.
Headquartered in Houston, Texas, CITGO Petroleum Corporation
-- http://www.citgo.com/-- is owned by PDV America, an
indirect, wholly owned subsidiary of Petroleos de Venezuela
S.A., the state-owned oil company of Venezuela.
PDVSA is Venezuela's state oil company in charge of the
development of the petroleum, petrochemical and coal industry,
as well as planning, coordinating, supervising and controlling
the operational activities of its divisions, both in Venezuela
and abroad.
* * *
As reported in the Troubled Company Reporter on Feb. 16, 2006,
Standard and Poor's Ratings Services assigned a 'BB' rating on
CITGO Petroleum Corp.
PETROLEOS DE VENEZUELA: Increasing Oil Export to China
------------------------------------------------------
Petroleos de Venezuela SA will increase its oil supply to China
to 300,000 as contemplated by the Oil and Energy Ministry early
this year, sources familiar with the matter told El Universal.
When this will happen was not disclosed.
The state oil firm currently sells 100,000 bpd of crude oil and
60,000 bpd of fuel oil to China under two contracts signed in
2005.
The increase won't result to lower oil shipments to the United
States, which consumes about 1.4 million barrels of Venezuelan
oil, EFE reported, citing a press release from the Ministry of
Communication and Information.
Petroleos de Venezuela's vice president for exploration and
drilling, Luis Vierma, told El Universal that the move is in
anticipation of higher production in 2012. The company, Mr.
Vierma added, needs a market for a projected daily output of
5.85 million barrels of oil.
"If we are to grow by almost two million barrels over the next
few years, then they should find a definite market. We cannot
put them in the freezer," Mr. Vierma underscored to El
Universal.
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 exports receivable
future flow securitization, PDVSA Finance Ltd, was also upgraded
to 'BB+' from 'BB'. In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating. Fitch said the Rating Outlook
is Stable. Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.
* VENEZUELA: OPEC Boosted Production in June by 200,000 B/D
-----------------------------------------------------------
OPEC boosted its overall production in June by 200,000 barrels
per day to 29.95 million b/d from 29.75 million b/d in May,
thanks largely to a boost in Iraqi volumes as crude flows
resumed along the pipeline linking Iraq's northern fields with
Turkish port Ceyhan, a Platts survey of OPEC and oil industry
officials showed July 7.
Excluding Iraqi volumes, production from the ten members with
quotas under a notional 28 million b/d ceiling edged up by
40,000 b/d, to 27.83 million b/d in June from 27.79 million b/d
in May, the survey showed.
Iraqi production rose by 160,000 b/d, from 1.96 million b/d in
May to 2.12 million b/d, the highest level since October 2004.
The higher volumes were the result of increased exports,
including some 4 million barrels of Kirkuk crude lifted from
Ceyhan on the Turkish Mediterranean in the last few days of the
month.
Smaller production increases came from Nigeria, Saudi Arabia,
Libya, Qatar and the UAE.
Nigerian production climbed by 50,000 b/d to 2.35 million b/d as
higher output from offshore fields helped offset the 500,000 b/d
of crude production shut in since early this year by militant
attacks on oil facilities in the Niger Delta.
The group's biggest producer, Saudi Arabia, increased output by
50,000 b/d to 9.25 million b/d. Although the kingdom claims
total current production capacity of 11.3 million b/d, it cut
back its output over the spring from long-held levels of around
9.5 million b/d, saying there was little demand for its heavier
crudes.
The increases, which totaled 320,000 b/d, were partly offset by
120,000 b/d of output decreases from Algeria, Indonesia, Iran,
and Venezuela.
Most OPEC members, including Algeria, overproduced their
notional output quotas in June, but Indonesia, Iran and
Venezuela significantly underproduced theirs.
Indonesian production averaged just 920,000 b/d in June, 531,000
b/d under its 1.451 million b/d quota. Iran claims to be able
to pump more than 4 million b/d, although it admits it has had
problems selling heavier crudes such as Soroush and Nowruz, but
the survey showed Iranian production at just 3.79 million b/d in
June, 320,000 b/d below Tehran's 4.11 million b/d quota.
Venezuelan production, which has never recovered after the
crippling two-month oil strike of the winter of 2002-2003,
declined further to 2.55 million b/d, which is 673,000 b/d below
the country's 3.223 million b/d quota.
John Kingston, Global Director of Oil at Platts, said, "In a $75
market, it is worrying that three significant producers -- Iran,
Indonesia and Venezuela -- showed drops in output. These
countries are not even near their OPEC-designated quotas, which
are not as significant as they once were, but the failure to
even be at that level is a sign of both poor operational
performance and declining geology. It's particularly striking
that these countries had declines in the same month that a
country racked by turmoil, Iraq, managed to turn in a
significant upturn in output, and now looks like it will be
regularly exporting crude from the Mediterranean port of
Ceyhan."
Country June May Apr Mar Feb Jan Quota
Algeria 1.350 1.370 1.370 1.370 1.370 1.370 0.894
Indonesia 0.920 0.930 0.930 0.920 0.920 0.920 1.451
Iran 3.790 3.850 3.880 3.860 3.860 3.900 4.110
Iraq 2.120 1.960 2.010 1.820 1.790 1.530 N/A
Kuwait 2.540 2.540 2.540 2.540 2.540 2.540 2.247
Libya 1.690 1.670 1.670 1.670 1.670 1.660 1.500
Nigeria 2.350 2.300 2.200 2.150 2.370 2.400 2.306
Qatar 0.820 0.810 0.810 0.810 0.800 0.800 0.726
Saudi
Arabia 9.250 9.200 9.100 9.500 9.500 9.480 9.099
UAE 2.570 2.540 2.530 2.500 2.480 2.540 2.444
Venezuela 2.550 2.580 2.590 2.600 2.600 2.580 3.223
Total 29.950 29.750 29.630 29.760 29.920 29.680 28.000
OPEC 10 27.830 27.790 27.620 27.940 28.130 28.150 28.000
(excluding Iraq)
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
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