/raid1/www/Hosts/bankrupt/TCRLA_Public/060719.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
Wednesday, July 19, 2006, Vol. 7, Issue 142
Headlines
A R G E N T I N A
AGROPECUARIA INDIA: Seeks Court Approval to Reorganize Business
ALFREDO ROMEO: Individual Reports Due in Court on Aug. 4
BRINGAS SRL: Trustee Will Verify Creditors' Claims Until Aug. 16
CENTRO DE EXPOSICIONES: Individual Reports Due on Aug. 25
CENTRO INTEGRAL: Trustee Submits Individual Reports on Aug. 25
CENTRO MEDICO: Last Day for Claims Verification Is on Sept. 22
CEVISER SA: Claims Verification Deadline Is Set for Sept. 18
DATECO SRL: Verification of Proofs of Claim Is Until Sept. 4
EMELI SA: Deadline for Verification of Claims Is on Sept. 29
NUTRAR SA: Trustee to Deliver Individual Reports on Aug. 29
* ARGENTINA: Local Coop Invites Venezuela to Issue Cabal Cards
* ARGENTINA: Halt Request on Mill Construction Denied
B A H A M A S
PINNACLE ENT: Enters Pact with President Casinos' Official Panel
B E R M U D A
REFCO: Dag Seim Wants US$443,311 Severance Payment from RCM
REFCO: Chapter 11 Trustee Says Dag Seim's Claims are Unsecured
REFCO: Judge Drain Issues Protective Order on Panel Subpoenas
B R A Z I L
CENTRAIS ELETRICAS DE MATO: Fitch Rates US$100MM 6-Yr Notes at B
CENTRAIS ELETRICAS DO PARA: Fitch Rates US$100MM 6-Yr Notes at B
FIDELITY NATIONAL: Launches Fidelity BPO Brazil Operations
GRUPO REDE: Fitch Assigns B Local & Foreign Currency Ratings
NET SERVICOS: Shareholders Approve 15-1 Reverse Split of Shares
SADIA SA: Discloses Voluntary Public Offer to Acquire Perdigao
SADIA SA: Perdigao Bid Cues S&P to Place BB Rating on NegWatch
* BRAZIL: Pres. Lula Happy with Venezuela's Entry into Mercosur
C A Y M A N I S L A N D S
ADMIRAL CBO: Moody's Upgrades Rating on US$48-Mil. Notes to Baa3
ENERGIA DE ARGENTINA: Proofs of Claim Filing Is Until Aug. 10
ENERGIA TOTAL: Creditors Must File Proofs of Claim by Aug. 10
ENRON GLOBAL: Creditors Have Until Aug. 10 to Present Claims
KBRDC CNC: Deadline for Proofs of Claim Filing Is on Aug. 10
KBRDC NITROGEN: Filing of Proofs of Claim Is Until Aug. 10
MCM CAPITAL: Last Day to File Proofs of Claim Is on Aug. 10
NEW SKIES: Creditors Have Until Aug. 10 to File Proofs of Claim
SEAGATE TECHNOLOGY: Moody's Affirms Ba1 Corp. Family Rating
SEVERN RIVER CAPITAL: Proofs of Claim Must be Filed by Aug. 10
SEVERN RIVER MASTER: Claims Filing Deadline Is Set for Aug. 10
UNOCAL FAR: Proofs of Claim Filing Deadline Is Set for Aug. 10
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Shell Considers Selling Assets in Country
G U A T E M A L A
EMPRESA ELECTRICA: S&P Affirms Low B Currency Ratings
* GUATEMALA: S&P Ups Long-Term Foreign Currency Rating to BB
H O N D U R A S
* HONDURAS: World Bank Pardons US$1.293-Billion Debt
J A M A I C A
KAISER ALUMINUM: Court Sets Aug. 5 as Admin. Claims Bar Date
KAISER ALUMINUM: Earns US$9.8 Million in May 2006
KAISER ALUMINUM: Wants US$32MM Deal with TIG Insurance Approved
M E X I C O
BALLY TOTAL: Federal Court Shelves Securities Class Action
ECU SILVER: Inks US$5 Million Refinancing Deal with IIG Capital
GENERAL MOTORS: Reviewing Nissan-Renault Deal, Toyota Might Bid
MERIDIAN AUTOMOTIVE: Incurs US$10.7 Million Net Loss in May 2006
* MEXICO: Selling 30-Year Peso-Denominated Bonds
P E R U
* PERU: IFC Inks Financing Pact With Banco de la Microempresas
P U E R T O R I C O
ADELPHIA: Court Confirms Century-TCI & Parnassos Chapter 11 Plan
KMART CORP: Wants Court to Compel Discovery from Ashland
KMART CORP: Wants Unclaimed Shares Reverted for Redistribution
OCA INC: Idaho Unit Files Schedules of Assets and Liabilities
T R I N I D A D & T O B A G O
DIGICEL: Launches Services in Bonaire to Link the ABC Islands
U R U G U A Y
* URUGUAY: Can Proceed with Pulp Mills Construction Along Border
V E N E Z U E L A
INT'L PAPER: Board Approves US$3 Bil. Share Repurchase Program
PETROLEOS DE VENEZUELA: Oil Import to US Drop 6%
* VENEZUELA: Exports to Colombia Amounts to US$388M in 1Q
* VENEZUELA: Mulls Purchase of US$100M Paraguayan Foreign Bonds
* VENEZUELA: State-Run Banks Fund Firms Exporting to Cuba
- - - - -
=================
A R G E N T I N A
=================
AGROPECUARIA INDIA: Seeks Court Approval to Reorganize Business
---------------------------------------------------------------
Court No. 23 in Buenos Aires is studying the merits of
Agropecuaria India Muerta S.R.L.'s petition to reorganize its
business after defaulting on its obligations on Nov. 28, 2005.
The petition, once approved by the court, will allow
Agropecuaria India to negotiate a settlement with its creditors
in order to avoid a straight liquidation.
Clerk No. 46 assists the court in the proceeding.
The debtor can be reached at:
Agropecuaria India Muerta S.R.L.
Parana 378
Buenos Aires, Argentina
ALFREDO ROMEO: Individual Reports Due in Court on Aug. 4
--------------------------------------------------------
Leon Sergio Fuks, the court-appointed trustee for Alfredo Romeo
Agazzi S.A.C.I.'s bankruptcy proceeding, will deliver in court
individual reports based on creditors' verified claims on
Aug. 4, 2006. A general report that contains an audit of the
company's accounting and banking records will follow on
Oct. 18, 2006.
Mr. Fuks verified creditors' proof of claim against Alfredo
Romeo until July 4, 2006.
The debtor can be reached at:
Alfredo Romeo Agazzi S.A.C.I.
Ramon Freire 2331
Buenos Aires, Argentina
The trustee can be reached at:
Leon Sergio Fuks
Bouchard 644
Buenos Aires, Argentina
BRINGAS SRL: Trustee Will Verify Creditors' Claims Until Aug. 16
----------------------------------------------------------------
Maria Della Prono, the court-appointed trustee for Bringas
S.R.L.'s reorganization proceeding, will verify creditors'
proofs of claim until Aug. 16, 2006.
After the claims are verified, Ms. Prono is expected to submit
individual reports and a general report that contains an audit
of Bringas S.R.L.'s accounting and banking records. The report
submission dates have not been disclosed.
A court in San Jorge, Santa Fe, handles the proceeding.
The debtor can be reached at:
Bringas S.R.L.
Dorrego 151
Santa Fe, Argentina
The trustee can be reached at:
Maria Della Prono
9 de Julio 684, San Jorge
Santa Fe, Argentina
CENTRO DE EXPOSICIONES: Individual Reports Due on Aug. 25
---------------------------------------------------------
Alfonso Raul Badaracco, the court-appointed trustee for Centro
de Exposiciones y Congresos S.R.L.'s bankruptcy proceeding, will
deliver in court individual reports based on creditors' verified
claims on Aug. 25, 2006. A general report that contains an
audit of the company's accounting and banking records will
follow on Oct. 9, 2006.
Mr. Badaracco verified creditors' proof of claim against Centro
de Expociones until June 30, 2006.
The debtor can be reached at:
Centro de Exposiciones y Congresos S.R.L.
Avenida J. B. Alberdi 4550
Buenos Aires, Argentina
The trustee can be reached at:
Alfonso Raul Badaracco
Esmeralda 980
Buenos Aires, Argentina
CENTRO INTEGRAL: Trustee Submits Individual Reports on Aug. 25
--------------------------------------------------------------
Griselda Isabel Eidelstein, the court-appointed trustee for
Centro Integral de Carrocerias Blindadas S.R.L.'s bankruptcy
proceeding, will deliver in court individual reports based on
the verified claims on Aug. 25, 2006. A general report that
contains an audit of the company's accounting and banking
records will follow on Oct. 6, 2006.
Ms. Eidelstein verified creditors' proof of claim against Centro
Integral until June 29, 2006.
The debtor can be reached at:
Centro Integral de Carrocerias Blindadas S.R.L.
Combatientes de Malvinas 3495
Buenos Aires, Argentina
The trustee can be reached at:
Griselda Isabel Eidelstein
Lambare 1140
Buenos Aires, Argentina
CENTRO MEDICO: Last Day for Claims Verification Is on Sept. 22
--------------------------------------------------------------
Court-appointed trustee Oscar Chapiro will verify creditors'
proofs of claim against Centro Medico de Diagnostico S.A. until
Sept. 22, 2006.
Creditors who fail to present their proofs of claims won't
receive any post-liquidation distribution that Mr. Chapiro will
make.
Under Argentine bankruptcy law, Mr. Chapiro will present
individual reports and a general report that contains an audit
of Centro Medico's accounting and banking records after the
claims verification. The report submission dates have not been
disclosed.
Court No. 4 in Buenos Aires declared Centro Medico bankrupt
after it has defaulted on its obligations on March 15, 2005.
Clerk No. 8 assists the court in this case.
The debtor can be reached at:
Centro Medico de Diagnostico S.A.
Virrey Ceballos 592
Buenos Aires, Argentina
The trustee can be reached at:
Oscar Chapiro
Avenida Raul Scalabrini Ortiz 151
Buenos Aires, Argentina
CEVISER SA: Claims Verification Deadline Is Set for Sept. 18
------------------------------------------------------------
Court-appointed trustee Pablo L. Peregal will verify creditors'
proofs of claim against bankrupt company Ceviser S.A. until
Sep. 18, 2006.
Creditors who fail to present proofs of their claims won't
receive any post-liquidation distribution that Mr. Peregal will
make.
The verified claims will be submitted in court as individual
reports on Oct. 31, 2006. A general report that contains an
audit of Ceviser's accounting and banking records will follow on
Dec. 13, 2006.
The trustee can be reached at:
Pablo L. Peregal
Leandro N. Alem 651
Buenos Aires, Argentina
DATECO SRL: Verification of Proofs of Claim Is Until Sept. 4
------------------------------------------------------------
Carlos Menendez, the court-appointed trustee for Dateco S.R.L.'s
bankruptcy case, will verify creditors' proofs of claim until
Sept. 4, 2006.
Creditors who fail to submit proofs of their claims won't
receive any post-liquidation distribution that Mr. Menendez will
make.
Court No. 19 in Buenos Aires declared Dateco S.R.L. bankrupt at
the request of Lautaro Paz, whom it owes US$30,000.
Clerk No. 37 assists the court in this case.
The debtor can be reached at:
Dateco S.R.L.
Dorrego 1476/78
Buenos Aires, Argentina
The trustee can be reached at:
Carlos Menendez
Ventura Bosch 7098
Buenos Aires, Argentina
EMELI SA: Deadline for Verification of Claims Is on Sept. 29
------------------------------------------------------------
Alberto Samsolo, the court-appointed trustee for Emeli S.A.'s
bankruptcy case, will verify creditors' proofs of claim until
Sept. 29, 2006.
Creditors who fail to submit proofs of their claims won't
receive any post-liquidation distribution that Mr. Samsolo will
make.
Court No. 11 in Buenos Aires ordered that Emeli S.A.'s
insolvency case must be converted into a bankruptcy proceeding.
Consequently, all of the company's assets will be liquidated and
proceeds distributed to creditors.
Clerk No. 22 assists the court in this case.
The debtor can be reached at:
Emeli S.A.
Lavalle 730
Buenos Aires, Argentina
The trustee can be reached at:
Alberto Samsolo
Paraguay 1225
Buenos Aires, Argentina
NUTRAR SA: Trustee to Deliver Individual Reports on Aug. 29
-----------------------------------------------------------
Jorge Tasanis, the court-appointed trustee for Nutrar S.A.'s
bankruptcy proceeding, will deliver in court individual reports
based on creditors' verified claims on Aug. 29, 2006. A general
report that contains an audit of the company's accounting and
banking records will follow on Oct. 10, 2006.
Mr. Tasanis verified creditors' proof of claim against Nutrar
until July 4, 2006.
The Troubled Company Reporter-Latin America reported on
May 30, 2006, that Court No. 25 in Buenos Aires declared Nutrar
S.A. bankrupt at the behest of Obra Social de Empleados de
Comercio y Actividades Civiles, which it owes US$929.
Clerk No. 50 assists the court in the proceeding.
The debtor can be reached at:
Nutrar S.A.
Cordoba 557
Buenos Aires, Argentina
The trustee can be reached at:
Jorge Tasanis
Tte. Gral. Juan Domingo Peron 1410
Buenos Aires, Argentina
* ARGENTINA: Local Coop Invites Venezuela to Issue Cabal Cards
--------------------------------------------------------------
Juan Angel Ciolli, president of Argentine autonomous cooperative
Cabal, proposed to the Venezuelan goverment incorporation to the
regional cooperative credit card program, El Universal reports,
citing the official news agency ABN.
El Universal says that the cooperative credit card program is
considered as a mechanism boosting the new South American
solidary integration model.
Mr. Ciolli was quoted by El Universal as saying that he already
held talks with Venezuelan state-run banks, Bank for Economic
and Social Development and Industrial Bank of Venezuela, and the
Andean Bank for Development for them to start issuing Cabal
credit cards.
Cabal, founded in Argentina 26 years ago, is the only
cooperative credit card around the world. Uruguay, Paraguay and
Brazil have joined this system, for a total of 53 associated
banking institutions, Mr. Ciolli told El Universal. Cabal has
around 1 million credit card holders.
* * *
Fitch Ratings assigned these ratings on Argentina:
Rating Rating Date
------ -----------
Country Ceiling RD Dec. 14, 2005
Long Term IDR B Dec. 14, 2005
Short Term IDR B- Jun. 3, 2005
Local Currency
Long Term Issuer
Default Rating B Jun. 3, 2005
* ARGENTINA: Halt Request on Mill Construction Denied
-----------------------------------------------------
The International Court of Justice at The Hague rejected last
week Argentina's petition to suspend Uruguay's construction of
two pulp mills along their river border.
Argentina filed the suit asserting that Uruguay did not provide
sufficient time for a thorough environmental impact study on the
pulp mills. Uruguay argued that studies were conducted and that
the mills will use modern pollution control system.
Argentina insisted Uruguay violated their 1975 River Treaty,
which requires mutual agreement for any project that has an
effect on the river. Uruguay said it kept Argentina informed
about plans for the mills, and its neighbor raised no objection
until Gualeguaychu officials began to complain last year.
Gualeguaychu environmental groups, according to Bloomberg News,
believe that the pulp mills will affect their livelihood.
Fishing and tourism are the main industries in the district.
The river is home to blue and yellow cardinals that are unique
to the region, as well as catfish, carp and fresh water dorados
that local officials say will be endangered by the plants'
waste.
However, Judge Rosalyn Higgins said in published reports that
the construction posed no "imminent threat" to Argentina's
environment.
The court will consider a permanent ruling in a year or two
after both countries submit further arguments, Judge Higgins was
quoted by Bloomberg as saying.
"The court stated how concerned it was to protect the
environment and at the same time protect the sovereign rights of
governments to pursue economic development. But I would not say
that the court chose economic development in favor of
environmental protection," Paul S. Reichler at Foley Hoag LLP
told the Financial Times in an interview. He added, Argentina
had simply failed to present sufficient evidence to justify the
suspension of construction.
The court's decision gave rise to concerns of environmental
groups resuming roadblocks across bridges linking the two
countries, which cause Uruguay to lose about US$400 million.
"The roadblocks should not return, as they have only made
matters more complicated," Paula Brufman of Greenpeace in
Argentina told the FT. "We support the fight against Uruguay,
but there is also a need to resolve the critical situation of
Argentina's own paper mills. There is serious contamination
going on in our own rivers too."
The US$1.6 billion mills are being built by Metsae-Botnia Oy and
Grupo Empresarial Ence SA.
Uruguay is represented by:
Paul S. Reichler, Esq.
Foley Hoag LLP
1875 K Street, NW, Suite 800
Washington, District of Columbia 20006-1238
Tel: 202-223-1200
Telecopier: 202-785-6687
Argentina is represented by:
Susana Myrta Ruiz Cerutti
Esmeralda 212, Piso 8
C1007ABP Buenos Aires, Argentina
Phone: (54-11) 4819-7227/7001/7109
Fax: (54-11) 4819-7226
* * *
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
* * *
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
=============
PINNACLE ENT: Enters Pact with President Casinos' Official Panel
----------------------------------------------------------------
Pinnacle Entertainment entered into an agreement with members of
the Official Committee of Unsecured Creditors in President
Casinos Inc.'s chapter 11 case in the United States, to make a
tender offer for all the outstanding 13% senior exchange notes
and 12% notes of President Casinos. Pinnacle also will offer to
purchase all other prepetition general unsecured claims allowed
as of July 12, 2006, asserted against President Riverboat
Casino-Missouri, Inc., in an amount not to exceed US$2 million.
As reported in the Troubled Company Reporter on June 2, 2006,
Pinnacle agreed to acquire President Riverboat Casino-Missouri,
Inc., which does business as President Casino St. Louis
Riverfront, for US$31.5 million subject to a working capital
adjustment. The completion of the acquisition is subject to
licensing by the Missouri Gaming Commission, as well as the
implementation of a bankruptcy-court reorganization plan for
President Casinos and/or PRC-MO.
Members of the creditors' committee, including the two major
holders of President Casinos' notes and who hold or control more
than 80% of the note claims outstanding, have agreed to tender
their notes to Pinnacle. Pinnacle will begin the note tender
within the next few days, and will begin the offer to purchase
the unsecured claims shortly thereafter. Under the agreement
with the major noteholders and other members of the creditors'
committee, the offers must be closed by Aug. 18, 2006.
The tender offer for the notes will be at US$809.07 per US$1,000
original principal amount in cash, and the other offer will be
at 100% of the allowed amount of each general unsecured claim.
If the two offers are fully subscribed, Pinnacle would pay
approximately US$62.6 million. At May 31, 2006, PRC-MO listed
in a bankruptcy filing a cash balance of approximately US$29
million and post-petition liabilities of approximately US$6
million. The holders of the bonds, which pursuant to the tender
offer should include Pinnacle, are expected to receive a large
portion of the distribution to creditors in the final plan of
reorganization.
"We're pleased to take this step to facilitate our acquisition
of the President Casino St. Louis Riverfront," said Daniel R.
Lee, Pinnacle's Chairman and Chief Executive Officer. "By
acquiring these debt claims, we can help support a planned
bankruptcy-court reorganization." Pinnacle anticipates closing
the transaction in the second half of 2006.
Holders of the President Casinos notes are urged to read the
tender offer documents when they are available. Investors may
obtain a copy of the tender offer documents by directing a
request to:
Pinnacle Entertainment, Inc.
Attention: Investor Relations
3800 Howard Hughes Parkway
Las Vegas, NV 89109
About President Casinos
Headquartered in St. Louis, Missouri, President Casinos Inc.
-- http://www.presidentcasino.com/-- currently owns and
operates a dockside gaming casino in St. Louis, Missouri through
its wholly owned subsidiary, President Missouri. The Debtor
filed for chapter 11 protection on June 20, 2002 (Bankr. S.D.
Miss. Case No. 02-53055). On July 11, 2002, substantially all
of Debtor's other operating subsidiaries filed for chapter 11
protection in the same Court. The Honorable Judge Edward Gaines
ordered the transfer of President Casino's chapter 11 cases from
Mississippi to Missouri. The case was reopened on Nov. 5, 2002
(Bankr. E.D. Mo. Case No. 02-53005). Brian Wade Hockett, Esq.,
at Hockett Thompson Coburn LLP, represents the Debtors in their
restructuring efforts. David A. Warfield, Esq., at Blackwell
Sanders Peper Martin LLP, represents the Official Committee of
Unsecured Creditors. The Company's balance sheet at
Nov. 30, 2005, showed assets totaling US$66,292,000 and debts
totaling US$75,531,000.
About Pinnacle
Headquartered in Las Vegas, Nevada, Pinnacle Entertainment, Inc.
(NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates
casinos in Nevada, Louisiana, Indiana and Argentina, owns a
hotel in Missouri, receives lease income from two card club
casinos in the Los Angeles metropolitan area, has been licensed
to operate a small casino in the Bahamas, and owns a casino site
and has significant insurance claims related to a hurricane-
damaged casino previously operated in Biloxi, Mississippi.
Pinnacle opened a major casino resort in Lake Charles, Louisiana
in May 2005 and a new replacement casino in Neuquen, Argentina,
in July 2005.
* * *
As reported in the Troubled Company Reporter on May 24, 2006,
Standard & Poor's Ratings Services revised its CreditWatch
implications on Las Vegas-based casino owner and operator
Pinnacle Entertainment Inc. to positive from negative.
As reported in the Troubled Company Reporter on March 20, 2006,
Moody's Investors Service placed the ratings of Pinnacle
Entertainment, Inc. on review for possible upgrade. Pinnacle
ratings affected include its B2 corporate family rating, B1
senior secured bank loan rating, and Caa1 senior subordinated
debt rating.
As reported in the Troubled Company Reporter on Mar. 15, 2006,
Fitch Ratings has placed the ratings of Pinnacle Entertainment
on Rating Watch Negative. The ratings affected include 'B'
issuer default rating; 'BB/RR1' senior secured credit facility
rating; and 'CCC+/RR6' senior subordinated note rating.
=============
B E R M U D A
=============
REFCO: Dag Seim Wants US$443,311 Severance Payment from RCM
-----------------------------------------------------------
Dag Seim asks the Honorable Robert Drain of the U.S. Bankruptcy
Court for the Southern District of New York to direct Refco
Capital Markets, Ltd., to pay his US$443,311 administrative
expense claim for postpetition severance.
Mr. Seim held a senior vice president position at RCM pursuant
to a letter agreement dated June 15, 2005.
Mr. Seim's position was terminated after the Debtors filed for
bankruptcy, triggering the severance clause in the Agreement,
Nicholas F. Kajon, Esq., at Stevens & Lee, P.C., in New York,
relates.
According to Mr. Kajon, the Employment Agreement expressly
provides that Mr. Seim is entitled to:
(1) US$250,000 severance payment;
(2) an additional US$250,000 if terminated without cause
during the first year of his employment, less any amounts
received as salary from his start date to the date of
termination. Mr. Seim has received US$104,166, leaving a
balance due of US$145,833; and
(3) relocation expenses of US$5,000 per month during his
first year of employment, of which US$12,521 has already
been reimbursed, leaving a balance due of US$47,478.
To date, neither RCM nor any of the other Debtors have paid Seim
the severance owed, despite repeated informal requests for
payment.
A claim for severance based on postpetition termination is
entitled to administrative expense priority in the Second
Circuit, Mr. Kajon reminds Judge Drain, citing Rodman v. Rinier
(In re W.T. Grant Co.), 620 F.2d 319 (2d Cir.), cert. denied,
446 U.S. 983 (1980); and Straus-Duparquet, Inc. v. Local Union
No. 3, Int'l Bhd. of Elec. Workers, 386 F.2d 649 (2d Cir. 1967).
Mr. Kajon also notes that Mr. Seim is the holder of customer
account No. 4622 with RCM. The Seim Account had an US$118,295
balance as of October 31, 2005, but has subsequently been
frozen.
Because all legal and equitable interests with respect to the
Seim Account are held by Mr. Seim, Mr. Kajon contends that the
Seim Account cannot be property of RCM's estate under Section
541 of the Bankruptcy Code.
Mr. Seim reserves all rights and remedies concerning the Seim
Account, and may seek redress concerning the Account in a future
proceeding.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada. Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc. Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.
On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner
is represented by Bingham McCutchen LLP. RCM is Refco's
operating subsidiary based in Bermuda.
Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News,
Issue No. 34; Bankruptcy Creditors' Service, Inc., 215/945-
7000).
REFCO: Chapter 11 Trustee Says Dag Seim's Claims are Unsecured
--------------------------------------------------------------
Marc S. Kirschner, the Chapter 11 Trustee of Refco Capital
Markets, Ltd., contends that Dag Seim's Claims are prepetition
general unsecured claims and not entitled to administrative
expense priority on these grounds:
(i) Mr. Seim has failed to carry his burden of proof because
he provided not a single fact to support his entitlement
to administrative claim priority for the Claims. He
failed entirely to show -- among other things -- that he
has provided any postpetition consideration that
benefited the RCM estate, as required under Section
503(b) of the Bankruptcy Code and relevant case law in
the Second Circuit, including:
-- Trustees of Amalgamated Ins. Fund v. McFarlin's, Inc.,
789 F.2d 98, 101 (2d Cir. 1986);
-- In re Mammoth Mart, Inc., 536 F.2d 950, 954 (1st Cir.
1976); and
-- In re AppliedTheory Corp., 312 B.R. 225, 237-40
(Bankr. S.D.N.Y. 2004;
(ii) The Claims are prepetition obligations under the
Agreement, and so are prepetition claims for damages;
(iii) Straus-Duparquet, Inc. v. Local Union No. 3 Int'l
Brotherhood of Elec. Workers (In re Straus-Duparquet,
Inc.), 386 F.2d 649 (2d Cir. 1967) and Rodman v. Rinier
(In re W.T. Grant Co.), 620 F.2d 319 (2d Cir. 1980), do
not apply because the Severance Claim falls far outside
the type of "severance pay" authorized by the Second
Circuit in those cases; and
(iv) Mr. Seim is not entitled to the Claims under the terms of
the Employment Agreement. Mr. Seim would only be
entitled to the Severance Payment Claim in exchange for
his signing RCM's standard Separation and Release
Agreement. However, Mr. Seim has submitted no evidence
that he has executed RCM's standard Separation and
Release Agreement.
The RCM Trustee is currently in the midst of extensive
negotiations of a global settlement that would resolve numerous
issues in the case, Jared R. Clark, Esq., at Bingham McCutchen
LLP, in New York, tells the U.S. Bankruptcy Court for the
Southern District of New York. It is unclear at this time the
amount of administrative claims against the RCM estate and the
funds available to satisfy those administrative claims, among
other claims against the estate. Immediate payment of the
Claims, if allowed administrative priority, would be premature
and disruptive to the administration of the assets of the RCM
estate at this critical period, Mr. Clark asserts.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada. Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc. Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.
On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner
is represented by Bingham McCutchen LLP. RCM is Refco's
operating subsidiary based in Bermuda.
Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News,
Issue No. 34; Bankruptcy Creditors' Service, Inc., 215/945-
7000).
REFCO: Judge Drain Issues Protective Order on Panel Subpoenas
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
issued a protective order governing the production, review and
handling of materials produced in response to subpoenas served
by the Official Committee of Unsecured Creditors appointed in
Refco Inc. and its debtor-affiliates chapter 11 cases.
Judge Drain rules that parties producing documents in response
to a Rule 2004 Subpoena may designate as "Confidential" any
material produced to the Committee, which the Producing Party
believes is a non-public material that is subject to bank
secrecy laws of a foreign country or contains confidential
information.
The Committee's counsel, Milbank, Tweed, Hadley & McCloy LLP,
will comply with the limitations imposed by any Court order, for
as long as that order remains in effect, regarding access to all
material served by a Producing Party.
Materials designated "Confidential" will only be disclosed to:
* the Bankruptcy Court;
* Milbank and the Committee's conflicts counsel, Kasowitz,
Benson, Torres & Friedman LLP;
* the Committee and officers and employees of the Committee
members as the panel's outside counsel deem necessary to
assist in connection with the Debtors' bankruptcy cases;
* non-party experts or consultants retained in good faith to
assist the Committee in connection with the Debtors' cases;
* individuals who have been noticed for depositions or
subpoenaed for trial testimony;
* any person reflected as an author, addressee, or recipient
of the Confidential material being disclosed or any person
to whom Milbank believes likely received the materials in
the ordinary course of business;
* the Debtors and their officers and employees who may be
necessary to assist the Committee in connection with the
Debtors' cases;
* Court reporters, stenographers or video operators at
depositions, court or arbitral proceedings at which
Confidential material is disclosed;
* clerical and data processing personnel involved in the
production and review of Confidential Information;
* the United States Attorney for the Southern District of
New York;
* any examiner appointed by the Bankruptcy Court; and
* any other person designated by the Bankruptcy Court,
subject to terms as may be deemed proper.
Nothing in the Protective Order will require disclosure of any
material that a Producing Party contends is protected from
disclosure by attorney-client privilege, work-product doctrine
immunity or any other legally recognized privilege.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base. Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the
most active members of futures exchanges in Chicago, New York,
London and Singapore. In addition to its futures brokerage
activities, Refco is a major broker of cash market products,
including foreign exchange, foreign exchange options, government
securities, domestic and international equities, emerging market
debt, and OTC financial and commodity products. Refco is one of
the largest global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported US$16.5 billion in assets and US$16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134). Refco, LLC,
is a regulated commodity futures company that has businesses in
the United States, London, Asia and Canada. Refco, LLC, filed
for bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc. Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.
On April 13, 2006, the Court appointed Marc S. Kirschner as
Refco Capital Markets Ltd.'s chapter 11 trustee. Mr. Kirschner
is represented by Bingham McCutchen LLP. RCM is Refco's
operating subsidiary based in Bermuda.
Three more affiliates of Refco, Westminster-Refco Management
LLC, Refco Managed Futures LLC, and Lind-Waldock Securities LLC,
filed for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y.
Case Nos. 06-11260 through 06-11262). (Refco Bankruptcy News,
Issue No. 34; Bankruptcy Creditors' Service, Inc., 215/945-
7000).
===========
B R A Z I L
===========
CENTRAIS ELETRICAS DE MATO: Fitch Rates US$100MM 6-Yr Notes at B
----------------------------------------------------------------
Fitch Ratings has assigned a 'B' rating to the US$100-million
six-year notes issued in February 2006 by Empresas Centrais
Eletricas de Mato Grosso aka Cemat and Centrais Eletricas do
Para aka Celpa. The issuance has been assigned an 'RR4'
Recovery Rating, indicating an expected average recovery
(31%-50%) given a default and an assumed jurisdictional 'RR4'
cap on instrument ratings in Brazil.
The issuance was split between notes to Cemat (US$50 million)
and notes to Celpa (US$50 million). In addition, Fitch has
assigned Local and Foreign Currency Issuer Default Ratings of
'B' and Brazilian national scale ratings of 'BBB(bra)' to Cemat,
Celpa, and their holding company, Grupo Rede Empresas de Energia
Eletrica S.A. All ratings have a Stable Rating Outlook.
The proceeds were used to refinance existing debt and for
working capital and general corporate purposes. The notes
units' underlying securities are separate, standalone
indebtedness of each entity; however, the senior notes are
nondetachable and contain cross-default provisions, essentially
linking the creditworthiness of the two issuers. As a result,
the ratings reflect the combined credit quality of the two
issuers. Fitch has also considered the consolidated credit
strength of Rede in assigning the ratings given the importance
of these two companies to the group.
Celpa and Cemat represented a combined 67% of the consolidated
EBITDA of Rede in 2005; Rede owns eight distribution companies
in Brazil, which also contribute to consolidated credit quality.
The ratings reflect the improvement in credit protection
measures of Cemat and Celpa, and on a consolidated basis, Rede.
These measures should continue to strengthen over the next few
years supported by projected growth in operational results and
cash flow and a reduction of annual debt service with the notes
issuance. Still, Rede has relatively high leverage when
compared to other electricity companies in the Brazilian market.
Rede's companies should also benefit from an improved regulatory
environment in Brazil and sufficient annual tariff adjustments.
The distributors operate as natural monopolies in the regulated
distribution market with long-term contracts with generators
companies. The new model for the sector allows for the pass-
through of all noncontrollable costs for distribution companies.
Although regulatory risks remain an ongoing credit concern, the
current electric energy industry model is generally positive and
should support growth and stability in the sector.
The ratings are also supported by Rede and its subsidiary
companies' successful leverage reduction program. From 2004 to
2006, sale of generation assets and higher operational cash
generation enabled Rede to reduce its leverage significantly.
The ratings consider the improvement in Rede's liquidity with
the sale in June 2006 of BRL450 million in generation assets in
addition to an expected US$250 million in loans from Inter-
American Development Bank. The proceeds coming from the IDB
loan to Celpa (US$135 million) and Cemat (US$115 million), to be
used for capital expenditures, are expected to be utilized by
the companies in 2006 (US$180 million) and 2007. There is also
the planned public offering by Rede up to September, which could
further improve the credit quality of Rede and its subsidiaries,
as a large part of these resources may be used for debt
reduction.
A broad, diversified and stable customer base supports the
combined credit profiles of Rede, Cemat, Celpa, and other
distribution companies. Average consumption growth in the
territories of the three operating companies has exceeded the
national average over the past five years. Future improvement
in operating cash flow should also benefit from improving
operating efficiencies and a more favorable economic
environment.
Rede's consolidated leverage, measured by adjusted gross debt-
to-EBITDA, of 3.8x at December 2005, is acceptable for the
assigned ratings. Leverage at Celpa and Cemat was 4.2x and
2.0x, respectively. In 2005, Rede reported total consolidated
debt of BRL3.1 billion. The recent notes issuance, sale of
assets, and the IDB loan should lower refinancing risk and
reduce interest expense, allowing the group to lower its
leverage through amortization of its short-term debt, as well as
by growing EBITDA and equity. In addition, the companies have
mitigated currency risk associated with the new issuance via a
currency swap.
In May 2006, Rede completed a reorganization process of its
corporate structure, according to legal requirements in the New
Energy Model. After the reorganization, the group holds eight
operational assets in the distribution segment and a small
portfolio in generation assets. Combined, Rede is one of the
largest distribution groups in Brazil, serving approximately 3
million customers and distributing 12,613 GWh of electricity.
CENTRAIS ELETRICAS DO PARA: Fitch Rates US$100MM 6-Yr Notes at B
----------------------------------------------------------------
Fitch Ratings has assigned a 'B' rating to the US$100 million
six-year notes units issued in February 2006 by Empresas
Centrais Eletricas de Mato Grosso aka Cemat and Centrais
Eletricas do Para aka Celpa. The issuance has been assigned an
'RR4' Recovery Rating, indicating an expected average recovery
(31%-50%) given a default and an assumed jurisdictional 'RR4'
cap on instrument ratings in Brazil.
The issuance was split between notes to Cemat (US$50 million)
and notes to Celpa (US$50 million). In addition, Fitch has
assigned Local and Foreign Currency Issuer Default Ratings of
'B' and Brazilian national scale ratings of 'BBB(bra)' to Cemat,
Celpa, and their holding company, Grupo Rede Empresas de Energia
Eletrica S.A. All ratings have a Stable Rating Outlook.
The proceeds were used to refinance existing debt and for
working capital and general corporate purposes. The notes
units' underlying securities are separate, standalone
indebtedness of each entity; however, the senior notes are
nondetachable and contain cross-default provisions, essentially
linking the creditworthiness of the two issuers. As a result,
the ratings reflect the combined credit quality of the two
issuers. Fitch has also considered the consolidated credit
strength of Rede in assigning the ratings given the importance
of these two companies to the group.
Celpa and Cemat represented a combined 67% of the consolidated
EBITDA of Rede in 2005; Rede owns eight distribution companies
in Brazil, which also contribute to consolidated credit quality.
The ratings reflect the improvement in credit protection
measures of Cemat and Celpa, and on a consolidated basis, Rede.
These measures should continue to strengthen over the next few
years supported by projected growth in operational results and
cash flow and a reduction of annual debt service with the notes
issuance. Still, Rede has relatively high leverage when
compared to other electricity companies in the Brazilian market.
Rede's companies should also benefit from an improved regulatory
environment in Brazil and sufficient annual tariff adjustments.
The distributors operate as natural monopolies in the regulated
distribution market with long-term contracts with generators
companies. The new model for the sector allows for the pass-
through of all noncontrollable costs for distribution companies.
Although regulatory risks remain an ongoing credit concern, the
current electric energy industry model is generally positive and
should support growth and stability in the sector.
The ratings are also supported by Rede and its subsidiary
companies' successful leverage reduction program. From 2004 to
2006, sale of generation assets and higher operational cash
generation enabled Rede to reduce its leverage significantly.
The ratings consider the improvement in Rede's liquidity with
the sale in June 2006 of BRL450 million in generation assets in
addition to an expected US$250 million in loans from Inter-
American Development Bank. The proceeds coming from the IDB
loan to Celpa (US$135 million) and Cemat (US$115 million), to be
used for capital expenditures, are expected to be utilized by
the companies in 2006 (US$180 million) and 2007. There is also
the planned public offering by Rede up to September, which could
further improve the credit quality of Rede and its subsidiaries,
as a large part of these resources may be used for debt
reduction.
A broad, diversified and stable customer base supports the
combined credit profiles of Rede, Cemat, Celpa, and other
distribution companies. Average consumption growth in the
territories of the three operating companies has exceeded the
national average over the past five years. Future improvement
in operating cash flow should also benefit from improving
operating efficiencies and a more favorable economic
environment.
Rede's consolidated leverage, measured by adjusted gross debt-
to-EBITDA, of 3.8x at December 2005, is acceptable for the
assigned ratings. Leverage at Celpa and Cemat was 4.2x and
2.0x, respectively. In 2005, Rede reported total consolidated
debt of BRL3.1 billion. The recent notes issuance, sale of
assets, and the IDB loan should lower refinancing risk and
reduce interest expense, allowing the group to lower its
leverage through amortization of its short-term debt, as well as
by growing EBITDA and equity. In addition, the companies have
mitigated currency risk associated with the new issuance via a
currency swap.
In May 2006, Rede completed a reorganization process of its
corporate structure, according to legal requirements in the New
Energy Model. After the reorganization, the group holds eight
operational assets in the distribution segment and a small
portfolio in generation assets. Combined, Rede is one of the
largest distribution groups in Brazil, serving approximately 3
million customers and distributing 12,613 GWh of electricity.
FIDELITY NATIONAL: Launches Fidelity BPO Brazil Operations
----------------------------------------------------------
Fidelity National Information Services, Inc., established a
back-office outsourcing and item processing operation in Brazil.
This new outsourcing operation, which will be named Fidelity BPO
Brazil Ltda., will provide a comprehensive range of back office
processing and support services, check imaging, check clearing
and custody, and consumer loan processing through more than 40
processing centers in Brazil.
Two of Brazil's top four non-government banks, including
Unibanco, have signed new 10-year contracts with Fidelity BPO
Brazil Ltda. for these services. To support the outsourcing
operation, FIS has acquired Proservvi Empreendimentos e Servicos
Ltda. for US$2.8 million in cash and the assumption of US$13.3
million in debt. Additionally, FIS anticipates investing
approximately US$13.6 million to support the working capital
needs of the new operation. Revenues from Proservvi clients
transferring to Fidelity as part of the transaction totaled
approximately US$16.0 million in 2005. The cumulative revenue
for new and existing processing contracts is estimated at more
than US$1.0 billion over the next 10 years.
"This agreement, which includes contract relationships with
three of the top five private banks in Brazil, greatly increases
our market presence," Michael Sanchez, president of the FIS
International division said. "Today's announcement, coupled
with the recent announcement of the creation of Fidelity
Processadora e Servicos S.A., for card and payment services,
will position FIS as the leading credit card processor and back-
office outsourcing provider in Brazil."
In March of this year, FIS announced that it had formed a joint
venture with leading banks in Brazil to provide end-to-end
outsourced credit and prepaid card processing services to
Brazilian card issuers. Once the existing portfolios are fully
converted, Fidelity will process more than 20 million cards in
Brazil, and more than 63 million cards worldwide.
"We have established a significant and growing international
footprint," Lee Kennedy, president and chief executive officer
for FIS said. "This transaction and the associated new
contracts further strengthen our global competitive position and
illustrate our ability to leverage the multi-product
capabilities of our company with new and existing customers."
FIS expects the transaction to be neutral to diluted earnings
per share in 2006 and accretive to diluted earnings per share
beginning in 2007. Additional details regarding the financial
impact of the transaction will be provided with the company's
second quarter earnings report.
About Fidelity National
Headquartered in Jacksonville, Florida, Fidelity National
Information Services, Inc. --
http://www.fidelityinfoservices.com/-- is a provider of core
processing for financial institutions; card issuer and
transaction processing services; mortgage loan processing and
mortgage-related information products; and outsourcing services
to financial institutions, retailers, mortgage lenders and real
estate professionals. FIS has processing and technology
relationships with 35 of the top 50 global banks, including nine
of the top ten. Nearly 50 percent of all U.S. residential
mortgages are processed using FIS software. FIS maintains a
strong global presence, serving over 7,800 financial
institutions in more than 60 countries worldwide.
* * *
Standard & Poor's Ratings Services raised on March 8, 2006, the
corporate credit and senior secured ratings of Fidelity
National Information Services Inc. to 'BB+' from 'BB', and
removed it from CreditWatch where it was placed on Sept. 15,
2005.
Moody's upgraded on March 18, 2006, Fidelity National
Information Solutions' senior secured credit facility to Ba1
from Ba3, Assigned a corporate family rating of Ba1 and a
speculative grade liquidity rating of SGL-1. The outlook is
stable.
GRUPO REDE: Fitch Assigns B Local & Foreign Currency Ratings
------------------------------------------------------------
Fitch Ratings has assigned a 'B' rating to the US$100 million
six-year notes units issued in February 2006 by Empresas
Centrais Eletricas de Mato Grosso aka Cemat and Centrais
Eletricas do Para aka Celpa. The issuance has been assigned an
'RR4' Recovery Rating, indicating an expected average recovery
(31%-50%) given a default and an assumed jurisdictional 'RR4'
cap on instrument ratings in Brazil. The issuance was split
between notes to Cemat (US$50 million) and notes to Celpa (US$50
million). In addition, Fitch has assigned Local and Foreign
Currency Issuer Default Ratings of 'B' and Brazilian national
scale ratings of 'BBB(bra)' to Cemat, Celpa, and their holding
company, Grupo Rede Empresas de Energia Eletrica S.A. All
ratings have a Stable Rating Outlook.
The proceeds were used to refinance existing debt and for
working capital and general corporate purposes. The notes
units' underlying securities are separate, standalone
indebtedness of each entity; however, the senior notes are
nondetachable and contain cross-default provisions, essentially
linking the creditworthiness of the two issuers. As a result,
the ratings reflect the combined credit quality of the two
issuers. Fitch has also considered the consolidated credit
strength of Rede in assigning the ratings given the importance
of these two companies to the group.
Celpa and Cemat represented a combined 67% of the consolidated
EBITDA of Rede in 2005; Rede owns eight distribution companies
in Brazil, which also contribute to consolidated credit quality.
The ratings reflect the improvement in credit protection
measures of Cemat and Celpa, and on a consolidated basis, Rede.
These measures should continue to strengthen over the next few
years supported by projected growth in operational results and
cash flow and a reduction of annual debt service with the notes
issuance. Still, Rede has relatively high leverage when
compared to other electricity companies in the Brazilian market.
Rede's companies should also benefit from an improved regulatory
environment in Brazil and sufficient annual tariff adjustments.
The distributors operate as natural monopolies in the regulated
distribution market with long-term contracts with generators
companies. The new model for the sector allows for the pass-
through of all noncontrollable costs for distribution companies.
Although regulatory risks remain an ongoing credit concern, the
current electric energy industry model is generally positive and
should support growth and stability in the sector.
The ratings are also supported by Rede and its subsidiary
companies' successful leverage reduction program. From 2004 to
2006, sale of generation assets and higher operational cash
generation enabled Rede to reduce its leverage significantly.
The ratings consider the improvement in Rede's liquidity with
the sale in June 2006 of BRL450 million in generation assets in
addition to an expected US$250 million in loans from Inter-
American Development Bank. The proceeds coming from the IDB
loan to Celpa (US$135 million) and Cemat (US$115 million), to be
used for capital expenditures, are expected to be utilized by
the companies in 2006 (US$180 million) and 2007. There is also
the planned public offering by Rede up to September, which could
further improve the credit quality of Rede and its subsidiaries,
as a large part of these resources may be used for debt
reduction.
A broad, diversified and stable customer base supports the
combined credit profiles of Rede, Cemat, Celpa, and other
distribution companies. Average consumption growth in the
territories of the three operating companies has exceeded the
national average over the past five years. Future improvement
in operating cash flow should also benefit from improving
operating efficiencies and a more favorable economic
environment.
Rede's consolidated leverage, measured by adjusted gross debt-
to-EBITDA, of 3.8x at December 2005, is acceptable for the
assigned ratings. Leverage at Celpa and Cemat was 4.2x and
2.0x, respectively. In 2005, Rede reported total consolidated
debt of BRL3.1 billion. The recent notes issuance, sale of
assets, and the IDB loan should lower refinancing risk and
reduce interest expense, allowing the group to lower its
leverage through amortization of its short-term debt, as well as
by growing EBITDA and equity. In addition, the companies have
mitigated currency risk associated with the new issuance via a
currency swap.
In May 2006, Rede completed a reorganization process of its
corporate structure, according to legal requirements in the New
Energy Model. After the reorganization, the group holds eight
operational assets in the distribution segment and a small
portfolio in generation assets. Combined, Rede is one of the
largest distribution groups in Brazil, serving approximately 3
million customers and distributing 12,613 GWh of electricity.
NET SERVICOS: Shareholders Approve 15-1 Reverse Split of Shares
---------------------------------------------------------------
Net Servicos de Comunicacao S.A. disclosed that at the
Extraordinary General Meeting, held on April 28, 2006, the
shareholders approved the reverse split of each lot of fifteen
shares to one share.
In conjunction with the reverse split on the preferred shares,
the ADR ratio will be changed from one ADR to ten preferred
shares to a new ratio of one ADR to one preferred share. Also,
the units traded at Latibex ratio will be changed from one
trading unit to ten preferred shares to a new ratio of one
trading unit to one preferred share. The effective date of the
ratio change is expected to be August 1, 2006.
As a result of the events mentioned above, registered holders of
ADR certificates will be required to exchange their existing
ADSs for new ADSs on the basis of two new ADSs for every three
ADSs surrendered, effective August 1, 2006. JPMorgan, as
Depositary, expects to be in a position to distribute the new
ADSs to DTC on or around August 4, 2006. JPMorgan's issuance and
cancellation books will be closed from the close of business
July 28, 2006 until the close of business August 4, 2006.
If the aggregate number of ADSs or trading unit to which a
holder is entitled results in a fractional ADS or trading unit,
such fractions will be sold, if possible, and the net proceeds,
if any, will be distributed to such holder.
NET's total shares will be of 267,987,468 shares, out of which
109,320,070 nominative common shares and 158,667,398 nominative
preferred shares, after the reverse split.
About Net Servicos
Headquartered in Sao Paulo, Brazil, NET Servicos de Comunicacao
-- http://Nettv.globo.com/NETServ/br/home/indexNet.jsp?id=1--
is the largest subscriber TV multi-operator in Brazil, as it
operates the NET brand in major cities, including operations in
the 4 largest cities: Sao Paulo, Rio de Janeiro, Belo Horizonte
and Porto Alegre.
NET also offers Broadband InterNet services through its NET
VIRTUA brand name.
* * *
Moody's America Latina assigned on May 22, 2006, a Baa2.br
Brazilian National Scale Rating and a B1 Global Local Currency
Rating to Net Servicos de Comunicacao S.A.'s BRL650 million
debentures due in 2011 issued in September 2005. Concurrently,
Moody's Investors Service affirmed Net's B1 global local
currency scale corporate family rating. The ratings outlook is
stable.
* * *
As reported in the Troubled Company Reporter on March 15, 2006,
Standard & Poor's Rating Services raised on its foreign and
local currency corporate credit ratings on Brazilian cable pay-
TV and broadband operator Net Servicos de Comunicacao S.A to
'BB-' from 'B+'. The Brazil National Scale rating assigned to
NET and its BRL650 million debentures due 2011 was also revised
to 'brA' from 'brBBB+'. S&P said the outlook on the ratings was
revised to stable from positive.
"The upgrade reflects NET's improved operational and financial
performance over the past several quarters and our expectation
that NET should be able to maintain its current performance over
the next few years," said Standard & Poor's credit analyst Jean-
Pierre Cote Gil.
SADIA SA: Discloses Voluntary Public Offer to Acquire Perdigao
--------------------------------------------------------------
Sadia S.A. made a voluntary public offer to acquire control of
Perdigao S.A. The offer is extensive to all shareholders of
Perdigao. The purpose of the offer is to create a historical
partnership between two traditional Brazilian companies, in
order to compete in equal terms with their competitors in a
strategic sector of Brazil.
Once the transaction is completed, Sadia and Perdigao will join
forces to face a possible denationalization of a sector in which
Brazil has important competitive advantages. The net revenues
of the two companies should be greater than BRL12 billion, of
which 50% is accounted for exports. The new corporation will
have around 81,000 employees. In addition to 16,000 integrated
agro-producers, it will be one of the largest global exporters
of animal protein and will be the fourth largest exporter in
Brazil. The union of the two companies will also ascertain
greater growth capacity and financial strength allowing a
greater employment generation and wealth to Brazil.
The voluntary public offer is valid until October 24, 2006, and
the offered price per share is BRL27.88, which corresponds to
the highest price in the criteria established by the
shareholders of Perdigao in its bylaws.
Furthermore, Sadia intends to, as soon as possible, submit for
the appraisal of the shareholders of the two companies a
corporate restructuring proposal, which consists of the merger
of the totality of the shares of Perdigao that are not
eventually sold in the public offer.
This transaction is unprecedented in the Brazilian market and is
based on the fact that Sadia and Perdigao share similar cultural
identity and values, among which are:
-- the respect for its consumers,
-- the use of corporate governance policies,
-- social responsibility and
-- commitment to community.
Sadia considers this a historical moment in which a competitor
worth its respect is being invited to become a partner in the
achievement of a strategic and contemporary position in the
global scenario. By means of the alliance of strengths of
executives and employees, and the use of better management
policies and excellence in corporate governance standards, ideal
conditions are present for the creation of a Brazilian
corporation that will be a global reference in economic and
social areas.
Sadia will file a tender offer statement under Schedule with the
U.S. Securities and Exchange Commission. Copies of the offer to
purchase and other documents relating to the tender offer may be
obtained for free when they become available, at the SEC's Web
site at http://www.sec.gov/or from the U.S. Information Agent
to be appointed in connection with the tender offer.
Headquartered in Sao Paulo, Brazil, Sadia S.A. --
http://www.sadia.com-- operates in the agro industrial and food
processing sectors in Brazil and primarily produces a range of
processed products, poultry, and pork. The company distributes
around 1,000 different products through distribution and sales
centers located in Brazil, Latin America, the Middle East, Asia,
and Europe.
* * *
As reported by Troubled Company Reporter on Feb. 1, 2006,
Standard & Poor's Ratings Services affirmed its 'BB' foreign and
local currency corporate credit rating on Sadia S.A. The
ratings affirmation followed Sadia's announcement of a Brazilian
reais 1.5 billion (about US$650 million) capital investment for
the construction of a new production plant in the Brazilian
state of Mato Grosso. The outlook on the ratings is stable.
Moody's Investors Service assigned on April 4, 2006, a Ba2
global local currency scale corporate family rating to Sadia.
SADIA SA: Perdigao Bid Cues S&P to Place BB Rating on NegWatch
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB' corporate
credit rating on Brazil-based Sadia S.A. on CreditWatch with
negative implications following the announcement of Sadia's
unsolicited takeover bid for the control of Perdigao S.A. The
acquisition price can reach about BRL3.7 billion (about US$1.7
billion) if Sadia acquires 100% of Perdigao's shares. Sadia
and Perdigao are Brazil's two biggest poultry and pork meat
producers, with combined sales of about US$5.2 billion in 2005.
Sadia has about US$1.4 billion debt outstanding, and about
US$1.05 cash as of March 31, 2006.
The CreditWatch indicates that the ratings on Sadia may be
lowered or affirmed depending on the final arrangement of the
acquisition, ultimate financial leverage of the combined entity,
and a more detailed analysis of potential gains from the
integration. The acquisition is subject to certain conditions,
including acceptance by shareholders representing more than 50%
of Perdigao's shares. In addition, the transaction will need to
be approved by antitrust regulators. However, according to
Sadia, less than 4% of total sales come from market segments
where the combined sales of Sadia and Perdigao would represent
more than 50% of market share.
Sadia is willing to acquire up to 100% of Perdigao and a minimum
of 50% plus one share. If the bid were to be accepted by 100%
of Perdigao's shareholders, Sadia's financial profile after the
deal would be weakened by the significant additional debt burden
deriving from the acquisition debt, which Standard & Poor's
believes will more than offset business risk improvements. As
proposed, the acquisition will result in additional debt of
about US$1.3 billion and a reduction in cash reserves of about
US$350 million, on top of the assumption of about US$750 million
of Perdigao's own debt. Sadia's cash offer of BRL$27.88 per
share values 100% of Perdigao at BRL$3.7 billion (US$1.7
billion), which represents an enterprise value to EBITDA at 9.2x
(based on Sadia's estimates of Perdigao's EBITDA in 2006).
The company has already secured bank credit to finance 100% of
the acquisition. ABN Amro has agreed to provide a two-year
bridge loan facility for the acquisition of up to 100% of
Perdigao's shares if the transaction is successful. In
addition, ABN Amro has also provided firm commitment for the
refinancing of the bridge loan with a long-term facility, which
moderates refinancing risks throughout the
transition/integration period. Nevertheless, the final terms of
the financing loan are still to be defined and may equally have
an impact on the ratings.
Resolution of the CreditWatch will follow the completion of the
proposed transaction, if successful. Standard & Poor's believes
that Sadia could be downgraded by one notch if it acquires 100%
of Perdigao's shares exclusively on a debt-funded basis. While
the company has not made express comments about it, the rating
agency believes there is risk that the offer price may be
revised upwards, resulting in a larger cash disbursement and
further leverage to Sadia. Scenarios that could soften the
potential for a rating downgrade include:
-- lower acceptance of the takeover bid by Perdigao's
shareholders;
-- an understanding of potential synergies that the
consolidation of the business could bring; and
-- a financial takeout of the bridge loan that include
equity-like instruments.
Still, the transaction raises integration challenges as a
relevant credit risk in the medium term.
Standard & Poor's expects the transaction to influence both the
business and financial profiles of Sadia, which we expect to
reassess in the next few weeks.
Although there is limited information available on the potential
gains from the combination of Sadia's and Perdigao's operations,
the combined entity would be better positioned to face the
highly competitive local and global meat and food processing
industry. Potential synergies could include optimization of
production facilities, freight costs, and distribution.
Perdigao is Sadia's major competitor in important segments of
the Brazilian food market, including higher-margin processed
food, and is also a major exporter of poultry and pork meat, as
well as processed products.
However, Sadia will still face the challenges of tilting its
export product mix toward more value-added products, as the bulk
of Sadia's export volumes would remain associated with volatile,
lower-margin commodity-type products such as whole poultry, cuts
of poultry, and pork. In addition, the transaction will not
significantly mitigate risks that we associate with the
industry, including the impact of volatile commodity prices and
foreign exchange rates on its cost structure and revenues; and
the exposure to the domestic market (which will continue to
represent about 50% of the company's total sales) due to the
relatively low purchasing power and unstable demand patterns in
Brazil.
* BRAZIL: Pres. Lula Happy with Venezuela's Entry into Mercosur
---------------------------------------------------------------
Brazilian President Inacio Lula da Silva is pleased with the
formal acceptance of Venezuela as a member of the Southern
Common Market or Mercosur.
The president told the Financial Times that Venezuelan oil
resources could strengthen the possibilities to fund
infrastructure projects.
When asked about Venezuelan President Hugo Chavez's diplomatic
spat with the United States, President da Silva asserted both
need each other for economic reasons. He added that together
with Argentine President Nestor Kirchner, they are putting
pressure on President Chavez to maintain cordial ties with other
countries, El Universal relates.
* * *
Fitch Ratings assigned these ratings on Brazil:
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
===========================
C A Y M A N I S L A N D S
===========================
ADMIRAL CBO: Moody's Upgrades Rating on US$48-Mil. Notes to Baa3
----------------------------------------------------------------
Moody's Investors Service upgraded these notes issued by Admiral
CBO (Cayman) Ltd.:
(1) The US$171,500,000 Class A-1 Senior Secured Floating
Rate Notes Due 2011
Prior Rating: Baa3 (on watch for possible upgrade)
Current Rating: Aaa
(2) The US$47,500,000 Class A-2 Senior Secured Fixed
Rate Notes Due 2011
Prior Rating: Caa3 (on watch for possible upgrade)
Current Rating: Baa3
According to Moody's, the rating actions are the result of
significant delevering of the A-1 notes and improvement in the
senior coverage tests.
ENERGIA DE ARGENTINA: Proofs of Claim Filing Is Until Aug. 10
-------------------------------------------------------------
Energia de Argentina Ltd.'s creditors are required to submit
proofs of claim by Aug. 10, 2006, to the company's liquidator:
Michael P. Borom
Impala Partners, LLC
18 Marshall Street, Suite 112
Norwalk, CT 06854, U.S.A.,
Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Energia de Argentina's shareholders agreed on June 23, 2006, for
the company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
ENERGIA TOTAL: Creditors Must File Proofs of Claim by Aug. 10
-------------------------------------------------------------
Energia Total de Argentina Ltd.'s creditors are required to
submit proofs of claim by Aug. 10, 2006, to the company's
liquidator:
Michael P. Borom
Impala Partners, LLC
18 Marshall Street, Suite 112
Norwalk, CT 06854, U.S.A.,
Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the company will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Energia Total's shareholders agreed on June 23, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
ENRON GLOBAL: Creditors Have Until Aug. 10 to Present Claims
------------------------------------------------------------
Enron Global Equity Ltd.'s creditors are required to submit
proofs of claim by Aug. 10, 2006, to the company's liquidator:
Michael P. Borom
Impala Partners, LLC
18 Marshall Street, Suite 112
Norwalk, CT 06854, U.S.A.,
Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Enron Global's shareholders agreed on June 23, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
KBRDC CNC: Deadline for Proofs of Claim Filing Is on Aug. 10
------------------------------------------------------------
KBRDC CNC (Cayman) Ltd.'s creditors are required to submit
proofs of claim by Aug. 10, 2006, to the company's liquidator:
Art Weigand
c/o Walkers
Walker House, P.O. Box 265 GT
Mary Street, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
KBRDC CNC's shareholders agreed on June 27, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Jonathan Culshaw
c/o Walkers
Walker House, P.O. Box 265 GT
Mary Street, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-6341
Fax: (345) 814-8341
KBRDC NITROGEN: Filing of Proofs of Claim Is Until Aug. 10
----------------------------------------------------------
KBRDC Nitrogen 2000 (Cayman) Ltd.'s creditors are required to
submit proofs of claim by Aug. 10, 2006, to the company's
liquidator:
Art Weigand
c/o Walkers
Walker House, P.O. Box 265 GT
Mary Street, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
KBRDC Nitrogen's shareholders agreed on June 27, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Jonathan Culshaw
c/o Walkers
Walker House, P.O. Box 265 GT
Mary Street, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-6341
Fax: (345) 814-8341
MCM CAPITAL: Last Day to File Proofs of Claim Is on Aug. 10
-----------------------------------------------------------
MCM Capital Advisors Limited's creditors are required to submit
proofs of claim by Aug. 10, 2006, to the company's liquidator:
Andrei Ostrovskiy
115172, Russia, Moscow
Koltelnicheskaya nav. 33 bld.1, MCM Bank
Tel: +7 495 795 2521 ext. 2507
Fax: +7 495 960 2250
Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
MCM Capital's shareholders agreed on May 1, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Ian Gobin
Walkers
P.O. Box 265, George Town
Grand Cayman, Cayman Islands
Tel: (345) 814-4604
Fax: (345) 949-7886
NEW SKIES: Creditors Have Until Aug. 10 to File Proofs of Claim
---------------------------------------------------------------
New Skies (Cayman) Limited's creditors are required to submit
proofs of claim by Aug. 10, 2006, to the company's liquidator:
Daniel Goldberg
Frederick Henrikplein 46
2582 BA The Hague, The Netherlands
Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
New Skies' shareholders agreed on June 28, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Jonathan Culshaw
c/o Walkers
Walker House, P.O. Box 265 GT
Mary Street, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-6341
Fax: (345) 814-8341
SEAGATE TECHNOLOGY: Moody's Affirms Ba1 Corp. Family Rating
-----------------------------------------------------------
Moody's Investors Service has confirmed the ratings of Seagate
Technology HDD Holdings and upgraded the ratings of Maxtor
Corporation, now a wholly owned subsidiary of Seagate Technology
US Holdings, following the completion of its acquisition on
May 19, 2006, and subsequent guaranteeing of Maxtor's debt by
Seagate. This concludes the review initiated by Moody's on
Dec. 21, 2005. The review was prompted by the company's
announcement of its intention to acquire Maxtor in an all-stock
transaction for approximately US$1.9 billion. The ratings
outlook is stable.
These ratings were confirmed;
-- Corporate Family Rating: Ba1; and
-- SGL Rating of 1.
These ratings have been upgraded;
Seagate Technology HDD Holdings:
-- US$400 million senior notes 8%, due 2009: to Ba1
Maxtor Corp:
-- remaining US$135 million of the US$230 million 6.8%
convertible senior notes, due 2010: to Ba1 from B2;
and
-- US$60 million 5-3/4% convertible subordinated
debentures, due 2012: to Ba2 from Caa1.
Rating outlook is stable.
The ratings reflect Seagate's dominant position in the disk
drive industry and incorporate the sector's capital intensity,
volatility, and the highly commoditized nature of the disk drive
business that is characterized by short product life cycles and
maturation linked ASP declines. Recent performance by
standalone Seagate has been stable to improving, with what
appears to be a reversal in its previously declining gross
margin trend in fiscal 2006. The ratings also incorporate
increased leverage from the Maxtor acquisition, technology and
execution risk from product transitioning to perpendicular
technology, as well as risks from emerging competing
technologies. The rating also considers the company's moderate
leverage and potential for a decline in its liquidity from
possible increased share buyback activities.
What Could Move the Ratings Up
1) Consistent ability to generate free cash flow partly as
a result of ability to turn around profitability and
control fixed cost;
2) Continued ability to capture growth in demand for
electronic storage by maintaining if not growing its
market share in HDD; and
3) Increase in product and technology diversity.
What Could Move the Ratings Down
1) Significant decline in cash flow generation as a result
of product transitioning issues vis-a-vis perpendicular
technology, Maxtor integration, and emerging technology
becoming a more meaningful threat;
2) Significant increase in leverage as a result of
dividends and additional share buyback program; and
3) Significant decline in its liquidity position as a
result of operating issues and/or funds returned to
shareholders.
Seagate, with primary offices in Scotts Valley, California, and
registered in the Cayman Islands, is a worldwide leader in the
design, manufacture and marketing of rigid disc drive products
used as the primary medium for storing electronic information in
systems ranging from personal computers and consumer electronics
to data centers delivering information over corporate networks
and the Internet.
SEVERN RIVER CAPITAL: Proofs of Claim Must be Filed by Aug. 10
--------------------------------------------------------------
Severn River Capital Fund, Ltd.'s creditors are required to
submit proofs of claim by Aug. 10, 2006, to the company's
liquidators:
Ian Wight
Stuart Sybersma
Deloitte
P.O. Box 1787, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Severn River's shareholders agreed on June 28, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Mark Pulvirenti
Deloitte
P.O. Box 1787, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-7500
Fax: (345) 949-8258
SEVERN RIVER MASTER: Claims Filing Deadline Is Set for Aug. 10
--------------------------------------------------------------
Severn River Master Fund, Ltd.'s creditors are required to
submit proofs of claim by Aug. 10, 2006, to the company's
liquidators:
Ian Wight
Stuart Sybersma
Deloitte
P.O. Box 1787, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Severn River's shareholders agreed on June 28, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Mark Pulvirenti
Deloitte
P.O. Box 1787, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949-7500
Fax: (345) 949-8258
UNOCAL FAR: Proofs of Claim Filing Deadline Is Set for Aug. 10
--------------------------------------------------------------
Unocal Far East Development, Ltd.'s creditors are required to
submit proofs of claim by Aug. 10, 2006, to the company's
liquidator:
Reid Services Limited
Clifton House, 75 Fort Street
P.O. Box 1350, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Aug. 10 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Unocal Far's shareholders agreed on April 22, 2005, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
Parties-in-interest may contact:
Reid Services Limited
Clifton House, 75 Fort Street
P.O. Box 1350, George Town
Grand Cayman, Cayman Islands
==================================
D O M I N I C A N R E P U B L I C
==================================
* DOMINICAN REPUBLIC: Shell Considers Selling Assets in Country
---------------------------------------------------------------
Royal Dutch Shell PLC's assets in the Dominican Republic may be
up for sale, including a 50% stake in Refineria Dominicana de
Petroleo S.A., the country's only oil refinery.
According to the Associated Press, this move is aimed at Shell's
focusing on fewer, larger-scale businesses. The company has
already completed sales of certain assets in the United States
and in some Pacific Islands in recent days. AP adds that
France's Rubis S.A. is currently in negotiation with Shell to
acquire its assets in Bermuda.
Shell has been operating in the country for almost 80 years.
Its involvement in the country include:
-- managing 137 service stations, and
-- maintaining fuel distribution and facilities.
"Shell will initiate a process of evaluation and revision of its
complete business portfolio to determine if the interest shown
will add value for the company's shareholders," the company's
Dominican representative, Rafael Maradiaga, said in a statement.
Mr. Maradiaga made it clear that no final decision has yet been
made by the company although he disclosed that some companies
have already expressed their interest in acquiring the Dominican
assets.
According to the Dominican Today, Shell first settled in the
Dominican Republic in 1927, since then the company took on the
distribution of its products. In 1971, Shell and the government
made a 50-50 joint venture in the establishment of Refineria
Dominicana to:
-- lower import prices,
-- offer more security satisfying consumption and
-- create a source of permanent technology.
* * *
The Troubled Company Reporter-Latin America reported on May 9,
2006, that Fitch Ratings upgraded these debt and issuer Default
Ratings of the Dominican Republic:
-- Long-term foreign currency Issuer Default Rating
to B from B-;
-- Country ceiling upgraded to B+ from B-;
-- Foreign currency bonds due 2006 to B-/RR4 from CCC+/RR4;
-- Foreign currency Brady bonds due 2009 to B/RR4
from B-/RR4;
-- Foreign currency bonds due 2011 to B/RR4 from B-/RR4;
-- Foreign currency bonds due 2013 to B-/RR4 from CCC+/RR4;
-- Foreign currency bonds due 2018 to B/RR4 from B-/RR4; and
-- Foreign currency collateralized Brady bonds due 2024
to B+/RR3 from B/RR3.
Fitch also affirmed these ratings:
-- Long-term local currency Issuer Default Rating: B; and
-- Short-term Issuer Default Rating: B.
Additionally, Fitch assigned a debt and Recovery Rating to this
issue:
-- Foreign currency bonds due 2027: B/RR4.
Fitch said the rating outlook for the long-term foreign and
local currency IDRs is Stable.
=================
G U A T E M A L A
=================
EMPRESA ELECTRICA: S&P Affirms Low B Currency Ratings
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' foreign
currency and 'BB' local currency issuer ratings on Empresa
Electrica de Guatemala S.A. or EEGSA. The outlook is stable.
The ratings on distribution company EEGSA are constrained by the
inherent challenges associated with the operating environment in
the Republic of Guatemala (foreign currency BB-/Stable/B; local
currency BB/Stable/B).
"In our opinion, the issuer faces a certain level of uncertainty
operating in a competitive market for electricity in a country
that, while stable today, has experienced periods of
macroeconomic instability," said Standard & Poor's credit
analyst Fabiola Ortiz.
The ratings are supported by the company's strong cash flow
protection measures and adequate liquidity. EEGSA benefits from
a strong market position through its natural monopoly, as it
provides services to 70% of the total customers and covers 30%
of the total demand for energy in the most important regions in
Guatemala.
Another credit strength is the favorable regulatory framework
for the energy companies, particularly the favorable tariff
structure, proven under the current economic environment. The
ratings also reflect management's experience and success in
Latin America.
The local currency outlook reflects Standard & Poor's
expectation that EEGSA will maintain its financial profile,
continuing to improve operating efficiencies in a regulated
market. The foreign currency outlook reflects that on the
Republic of Guatemala. A negative rating action could be
considered if the company's cash flow protection measures
experience a significant deterioration.
* GUATEMALA: S&P Ups Long-Term Foreign Currency Rating to BB
------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency sovereign credit rating on the Republic of Guatemala to
'BB' from 'BB-' and its long-term local currency rating to 'BB+'
from 'BB'. Standard & Poor's also affirmed its 'B' short-term
foreign and local currency sovereign credit ratings on the
republic. The outlook on the ratings is stable.
According to Standard & Poor's credit analyst Roberto Sifon
Arevalo, the upgrades reflect continuing progress toward
political pluralism that is reducing uncertainty over economic
policy, along with improved economic performance and a long
track record of cautious fiscal policies. "Congress recently
passed the 'Anti Evasion Law' and the needed legislation to
implement DR-CAFTA," Mr. Sifon Arevalo said. "The former aims
to close loopholes in the current tax legislation, and gives the
tax administration office the tools to reduce and prosecute tax
evasion. The latter modifies current legislation to comply with
the free trade agreement with the U.S. that was ratified by
Congress in the first quarter of 2005," he added.
Mr. Sifon Arevalo explained that progress in these two key and
highly controversial issues is a clear sign of the growing
ability of the political class, across all parties, to negotiate
and achieve consensus on key economic policies. At the same
time, he noted that Guatemala had a better-than-expected
economic performance in 2005 despite the negative effect on
competitiveness due to a significant real appreciation of the
quetzal exchange rate.
Standard & Poor's said that GDP grew by 3.3% in 2005, above
expectations, and is forecasted to grow at 4.4% in 2006-bringing
per capita growth to 0.6% in 2005 and 1.7% in 2006.
"Another key factor supporting the ratings upgrade is the
continued strengthening of financial system regulations,
including onsite visits to offshore banks," Mr. Sifon Arevalo
said. "In addition, while Guatemala's ratings continue to be
constrained by a very low level of tax revenue, the government
is committed to continuing its long track record of broad fiscal
balance. It maintained the deficit below 2% of GDP even after
Hurricane Stan severely damaged parts of Guatemala in the second
half of 2005."
Mr. Sifon Arevalo said that the stable outlook reflects Standard
& Poor's view that economic policy will continue on a stable
path after the 2007 presidential election. "Further steps to
improve transparency and political cohesion, along with
increases in the tax base, should result in better
creditworthiness," Mr. Sifon Arevalo noted. "On the other hand,
fiscal slippage and a return to political polarization that
limits the government's ability to apply effective economic
policies could place downward pressure on the ratings," he
concluded.
===============
H O N D U R A S
===============
* HONDURAS: World Bank Pardons US$1.293-Billion Debt
----------------------------------------------------
The World Bank cancelled US$1.293 billion of Honduras'
US$5.5-billion debt. The debt relief was made under the Highly
Indebted Poor Countries Initiative.
Honduras This Week says that while the move was applauded,
concerns were raised over how the money will be spent. It is
expected that this money will be used to promote development and
alleviate poverty.
"Additional debt relief will help Honduras channel resources
into programs that directly help the people who need it most,"
Paul Wolfowitz, President of the World Bank, was quoted by
Honduras This Week as saying.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
------ -----------
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
KAISER ALUMINUM: Court Sets Aug. 5 as Admin. Claims Bar Date
------------------------------------------------------------
In light of the emergence from bankruptcy of Kaiser Aluminum
Corporation, Kaiser Aluminum and Chemical Corp. and their
debtor-affiliates on July 6, 2006, Judge Fitzgerald orders that:
(i) requests for payments of administrative claims must be
filed by August 5, 2006; and
(ii) applications for final allowance of claims for pre-
Effective Date services rendered by professions to the
Reorganizing Debtors must be filed by September 4, 2006.
Parties failing to file their fee applications or administrative
claim requests with the U.S. Bankruptcy Court for the District
of Delaware and serve on the Reorganized Debtors and other
parties on or before the Bar Dates will be forever barred from
asserting their claims.
Objections to payment requests of administrative claims or any
professional fee claims must be filed and served on the
Reorganized Debtors and other interested parties by the later
of:
(a) October 4, 2006; or
(b) 30 days after the filing of the applicable request for
payment of the administrative or professional fee claims.
The Court also orders that claims for damages arising from the
rejection of executory contracts pursuant to Section 6.3 of the
Second Amended Plan of Reorganization must be filed by August 5,
2006.
The proofs of claim must be filed with Logan & Company, Inc.,
the Reorganized Debtors' claims and noticing agent, and served
on the Reorganized Debtors and other parties.
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. 101; Bankruptcy Creditors'
Service, Inc., 609/392-0900)
KAISER ALUMINUM: Earns US$9.8 Million in May 2006
-------------------------------------------------
Kaiser Aluminum Corporation -- All Debtors
Unaudited Balance Sheet
As of May 31, 2006
(In Thousands)
ASSETS
Cash US$30,700
Receivables:
Trade 129,530
Other 17,827
----------
Total Receivables 147,357
Inventories 146,785
Prepaid expenses and other current assets 34,609
----------
Total current assets 359,451
Investments in and advances to subsidiaries 22,236
Intercompany receivables/payables, net (4,165)
Property, plant, and equipment - net 240,059
Deferred income taxes -
Restricted proceeds from sale of commodity interests -
Other assets 1,028,332
----------
Total Assets US$1,645,913
==========
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities not subject to compromise:
Accounts payable US$89,101
Accrued interest 1,148
Accrued salaries, wages and related expenses 34,908
Accrued post retirement benefit - current -
Other accrued liabilities 66,273
Payable to affiliates 18,674
Long term debt - current portion 1,132
----------
Total current liabilities 211,236
Long-term liabilities 51,473
Accrued postretirement benefit obligation 1
Long-term debt 1,212
Liabilities subject to compromise 4,457,543
Minority interests 655
Stockholders' equity:
Preference stock -
Common stock 789
Additional capital 538,009
Accumulated deficit - As of filing date (931,402)
Accumulated deficit - Post filing date (2,674,835)
Accumulated other comprehensive income (loss) (8,768)
Note receivable from parent -
----------
Total Liabilities & Stockholders' Equity US$1,645,913
==========
Kaiser Aluminum Corporation -- All Debtors
Unaudited Statement of Operations
For the Month Ending May 31, 2006
(In Thousands)
Net Sales US$127,429
Costs and expenses:
Cost of products sold 105,789
Depreciation & amortization 1,596
Selling, administrative, R&D and general 5,245
Other operating charges (benefits), net -
----------
Total costs and expenses 112,630
----------
Operating income (loss) 14,799
Other income (expense):
Interest expenses, net 63
Reorganization items (2,860)
Other-net (302)
----------
Income (loss) before
income taxes and minority interest 11,700
(Provision) benefit for income taxes (1,897)
Minority interests -
Equity in income (loss) of subsidiaries 5
----------
Net income (loss) US$9,808
==========
Kaiser Aluminum Corporation -- All Debtors
Schedule of Consolidated Cash Receipts and Disbursements
For the Month Ending May 31, 2006
(In Thousands)
Receipts:
Trade Receivables
KACC and Certain Other Entities' Receivables US$97,682
KAII Receivables 35,433
----------
Total Trade Receivables 133,115
Asbestos Insurance Recoveries 351
COBRA Receipts 705
Proceeds from Hedging Settlements 697
----------
Total Receipts 134,868
Disbursements:
Inventory/Raw Materials 66,641
Capital Expenditures 6,878
Maintenance, Materials, etc. 5,541
Freight 5,187
Utilities/Energy 4,097
Hourly Payroll 7,251
Salaried Payroll 3,408
Hedging Activities 162
Pension Contributions 167
VEBA Advances 1,904
Medical - Current Employees 2,680
Annual Insurance Premiums 1,272
Workmen's Compensation 420
Corporate General and Administrative 5,187
JV Fundings - Primary, Net of Reimbursements 15,565
Other Disbursements 7,219
----------
Total Operating and G&A Disbursements 133,579
Reorganization Items 4,375
----------
Total Disbursements 137,954
----------
Net Cash Flow (3,086)
Beginning Bank Cash Balances 37,075
----------
Ending Bank Cash Balances 33,989
Reconciling Items (3,289)
----------
Ending Book Cash Balances US$30,700
==========
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)
KAISER ALUMINUM: Wants US$32MM Deal with TIG Insurance Approved
---------------------------------------------------------------
Kaiser Aluminum & Chemical Corporation asks the U.S. Bankruptcy
Court for the District of Delaware to:
(i) approve its settlement agreement with TIG Insurance
Company;
(ii) authorize the sale of certain TIG-issued insurance
policies back to TIG free and clear or liens, claims,
encumbrances or other interests; and
(iii) enjoin all claims against TIG relating to the policies.
TIG, as successor by mergers to International Insurance Company
and International Surplus Lines Insurance Company, issued
certain policies to KACC with policy periods covering between
1976 and 1982.
The TIG policies are at issue in KACC's insurance coverage
action against certain insurers, including TIG, pending before
the Superior Court of California for the County of San
Francisco. In the Products Coverage Action, KACC is seeking:
-- a declaratory judgment that the insurers are obligated to
cover the asbestos-related bodily injury products
liability claims that have been asserted against KACC;
and
-- damages for breach of contract and breach of the covenant
of good faith and fair dealing against several of the
insurers.
Kimberly D. Newmarch, Esq., at Richards, Layton & Finger, in
Wilmington, Delaware, relates that KACC and TIG have engaged in
negotiations to resolve all claims with respect to the Subject
Policies and other insurance policies issued by TIG to KACC.
Under the Settlement Agreement, TIG will make a US$32,200,000
settlement payment before July 15 of each year at these amounts:
(a) US$2,415,000 from 2006 to 2008;
(b) US$3,220,000 from 2009 to 2012; and
(c) US$4,025,000 from 2013 to 2015.
Payment of the settlement amounts will be made to U.S. Bank
National Association, as settlement account agent, unless a
Trigger Date has occurred, in which case, to Wells Fargo Bank,
N.A., as insurance escrow agent, for distribution to the Funding
Vehicle Trust. The Trigger Date is the day that the last of
these events has occurred:
(1) the order approving the settlement agreement becomes a
Final Order;
(2) the Confirmation Order becomes final; and
(3) the occurrence of the Plan Effective Date.
Other terms of the Settlement Agreement are:
(a) TIG 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 the Subject
Policies and other rights under additional policies
issued by TIG, and will dismiss TIG from the Products
Coverage Action;
(c) KACC will sell the Subject Policies back to TIG, and TIG
will buy back the Policies free and clear of all liens,
claims, or interests, with TIG's payment of the
settlement amount constituting the consideration for the
buy-back;
(d) If any claim is brought against TIG 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 TIG; and
(e) TIG 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 TIG 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 TIG make any claim for or relating to
the insurance, reinsurance or retrocession against any
KACC Party.
The Settlement Agreement also contains certain rights to
adjustment of the settlement amount if asbestos legislation is
enacted into law prior to the time that the last scheduled
payment is due from TIG.
If the legislation eliminates the obligation of the Funding
Vehicle Trust, the Asbestos PI Trust and the KACC Parties to
make payments to all holders of Asbestos PI Claims, then TIG
will have no obligation to make any additional payments not yet
due under the Settlement Agreement. However, TIG must continue
to make payments equivalent to 6% of the amount owed to the
Silica PI claims, unless the asbestos legislation also
eliminates the obligation of the Silica PI Trust, the Funding
Vehicle Trust and KACC.
If the asbestos legislation is enacted then ceases to be in
force and effect, TIG's obligation to pay the remaining
settlement amount will be reinstated nunc pro tunc to the time
of the enactment, unless TIG demonstrates to the Court that the
balance should be adjusted.
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. 101; Bankruptcy Creditors'
Service, Inc., 609/392-0900)
===========
M E X I C O
===========
BALLY TOTAL: Federal Court Shelves Securities Class Action
----------------------------------------------------------
Bally Total Fitness Holding Corp. disclosed that on
July 12, 2006, the United States District Court for the Northern
District of Illinois dismissed the consolidated class action
complaint alleging securities fraud by the company and certain
of its current and former officers. The Court previously
consolidated ten separate actions into this consolidated class
action complaint. The Court dismissed the complaint without
prejudice, allowing the plaintiffs until August 14, 2006, to
file an amended complaint.
Between May and July 2004, 10 putative securities class actions,
now consolidated and designated, "In re Bally Total Fitness
Securities Litigation," were filed in the U.S. District Court
for the Northern District of Illinois.
Each of these substantially similar lawsuits alleged that the
defendants violated Sections 10(b) and/or 20(a) of the
Securities Exchange Act of 1934, as amended, as well as the
associated Rule 10b-5, in connection with the company's proposed
restatement.
On March 15, 2005, the court appointed a lead plaintiff and on
May 23, 2005 the court appointed lead plaintiff's counsel. By
stipulation of the parties, the consolidated lawsuit was stayed
pending restatement of the company's financial statements in
November 2005.
On Dec. 30, 2005, plaintiffs filed an amended consolidated
complaint, asserting claims on behalf of a putative class of
persons who purchased Bally stock between Aug. 3, 1999 and
April 28, 2004.
The various defendants filed motions to dismiss the amended
consolidated complaint on Feb. 24, 2006, which motions are
currently pending, according to the company's June 27, 2006,
Form 10-Q filing with the U.S. Securities and Exchange
Commission for the period ended March 31, 2006.
The suit is titled "In re Bally Total Fitness Securities
Litigation, Case No. 1:04-cv-03530," filed in the U.S. District
Court for the Northern District of Illinois under Judge John F.
Grady.
About Bally Total
Bally Total Fitness -- http://www.ballyfitness.com/-- is the
largest and only U.S. commercial operator of fitness centers,
with approximately four million members and 390 facilities
located in 29 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Crunch Fitness(SM),
Gorilla Sports(SM), Pinnacle Fitness(R), Bally Sports Clubs(R)
and Sports Clubs of Canada(R) brands.
* * *
As reported in the Troubled Company Reporter on March 17, 2006,
Standard & Poor's Ratings Services held its ratings on Bally
Total Fitness Holding Corp., including the 'CCC' corporate
credit rating, on CreditWatch with developing implications,
where they were placed on Dec. 2, 2005. The CreditWatch update
followed Bally's announcement that it will not meet the
March 16, 2006, deadline for filing its annual report on SEC
Form 10-K for the year ending Dec. 31, 2005.
ECU SILVER: Inks US$5 Million Refinancing Deal with IIG Capital
---------------------------------------------------------------
ECU Silver Mining Inc. reached a definitive agreement pursuant
to which it will refinance its current line of credit with IIG
Capital LLC bearing interest at 15% per annum.
Under the terms of the new agreement, ECU will issue to IIG a
US$5,000,000 convertible five-year debenture bearing interest at
8% per annum. If the Debenture is converted by IIG within the
first two years following its issuance, it will be convertible
into units, at a price of CDN$4.25 per Unit. Each Unit will
consist of one Common Share of the Company and one-half of a
Common Share purchase warrant, with each whole Purchase Warrant
entitling IIG to acquire one Common Share at a price of CDN$5.00
at any time before the expiry of two years following the date of
issuance of the Debenture. If the debenture is converted after
the initial two years following its issuance, it will be
convertible into Common Shares at a price of CDN$4.25 per Common
Share.
Subject to the approval of the TSX Venture Exchange, accrued and
unpaid interest on the principal amount of the Debenture may be
converted at the option of the Holder; provided that if the
market price of the Common Shares at the time of the request for
conversion is less than CDN$4.25, the Company may, at its
discretion, pay such interest in cash instead of securities. If
such conversion takes place within the first two years following
the issuance of the Debenture, the interest will be convertible
into units comprising of one Common Share and one-half of a
Common Share purchase warrant exercisable for a period of two
years following its issuance; thereafter, it will be convertible
into Common Shares. The issuance price of the units and the
Common Shares, as well as the exercise price of the purchase
warrants, will be equal to the market price of the Common Shares
at the time of conversion, less, in the case of the issuance
prices of the units and the Common Shares, the maximum discount
permitted by the TSX Venture Exchange.
The remaining portion of the existing line of credit with IIG,
being approximately US$5,000,000, will be transformed into a
one-year loan bearing interest at a rate of 10% per annum.
"We would like to thank IIG for their continued confidence and
support in our Company over the past eight years," noted Michel
Roy, President and Chief Executive Officer of ECU Silver Mining
Inc.
The issuance of the Debenture is subject to approval of the TSX
Venture Exchange.
About ECU Silver Mining
ECU Silver Mining Inc. (TSX VENTURE: ECU) -- http://www.ecu.ca/
-- is a junior Gold, Silver, Zinc and Lead producer in the
prolific mining district of Velardena, Mexico where historically
over 500,000 ounces of gold and 250,000,000 ounces of silver
have been mined.
At Dec. 31, 2005, ECU Silver Mining's balance sheet showed a
stockholders' deficit of CDN$416,372, compared to a deficit of
CDN$3,426,901 at Dec. 31, 2004.
GENERAL MOTORS: Reviewing Nissan-Renault Deal, Toyota Might Bid
---------------------------------------------------------------
General Motors Corp. and Nissan-Renault are reviewing a
proposed three-way alliance for 90 days, published reports say.
Renault-Nissan is a collaboration between Nissan Motor Co.,
Ltd., and Renault S.A. GM shareholder Kirk Kerkorian broached
the idea of pulling in GM into the two-way tie-up. Mr.
Kerkorian owns 9.9% equity stake in GM through his investment
firm Tracinda Corp.
Toyota Motor Corp., USA, however, might throw a wrench to
the possible deal as it is likely to put a bid to ally with
GM, the Business Week reports. But, as reported in CNN Money,
Toyota was quick to quell rumors that it's interested in GM.
GM and Toyota jointly operate an assembly plant in Freemont,
California. GM Chairman and CEO G. Richard Wagoner, Jr., said a
deal with another automaker besides Renault-Nissan was possible,
according to Automotive News. The scenario is a likely
possibility since the US$3-billion proposed alliance is seen as
a hostile move by some of GM's management even after Renault-
Nissan's President and CEO Carlos Ghosn publicly declared that
the ball is in GM's hands.
Talks of a possible alliance surfaced amidst GM's troubles as it
faces market, production and cost issues. GM is currently
implementing a turnaround plan that involves plant closures and
job cuts. Analysts opined that all these talks about alliances
are just distracting GM from doing what it should be doing,
create a good product and increase market share.
Though still number one in the world, GM's market share is
continually eroding. Based on 2005 new vehicles sales, GM sold
14.2% of the total number of vehicles sold. Toyota has 13%.
Ford comes in third with 12.4%. Renault-Nissan has 9.6% of the
pie.
About General Motors
General Motors Corp. -- http://www.gm.com/-- the world's
largest automaker, has been the global industry sales leader for
75 years. Founded in 1908, GM today employs about 327,000
people around the world. With global headquarters in Detroit,
GM manufactures its cars and trucks in 33 countries including
Mexico. In 2005, 9.17 million GM cars and trucks were sold
globally under the following brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall. GM operates one of the world's leading finance
companies, GMAC Financial Services, which offers automotive,
residential and commercial financing and insurance. GM's OnStar
subsidiary is the industry leader in vehicle safety, security
and information services.
* * *
As reported in the Troubled Company Reporter on June 30, 2006,
Standard & Poor's Ratings Services held all its ratings on
General Motors Corp. -- including the 'B' corporate credit
rating and the 'B+' bank loan rating, but excluding the '1'
recovery rating -- on CreditWatch with negative implications,
where they were placed March 29, 2006.
As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1'
to General Motor's new US$4.48 billion senior secured bank
facility. The 'RR1' is based on the collateral package and
other protections that are expected to provide full recovery in
the event of a bankruptcy filing.
MERIDIAN AUTOMOTIVE: Incurs US$10.7 Million Net Loss in May 2006
----------------------------------------------------------------
Meridian Automotive Systems - Composites
Operations, Inc. and Subsidiaries
Unaudited Consolidated Balance Sheet
As of May 31, 2006
(In Thousands)
CURRENT ASSETS:
Cash -
Accounts receivable, net
US$78,824
Intercompany receivable 15,421
Inventories 65,343
Tooling costs in excess of billings and others 31,020
--------
TOTAL CURRENT ASSETS 190,608
--------
Property, plant and equipment, net 221,660
Intangible assets 15,263
Investment in subsidiaries 23,863
Other assets 11,851
--------
TOTAL ASSETS US$463,245
========
CURRENT LIABILITIES NOT SUBJECT TO COMPROMISE:
Current portion of long term debt US$329,796
Accounts payable 47,509
Accrued expenses 43,804
Tooling billings in excess of costs 2,168
--------
TOTAL CURRENT LIABILITIES 423,277
--------
Liabilities subject to compromise 482,929
Non-Current Liabilities Not Subject to Compromise:
Other long-term liabilities 9,016
Accumulated post-retirement benefit obligation 24,041
--------
TOTAL LIABILITIES 939,263
SHAREHOLDERS' EQUITY (476,018)
--------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY US$463,245
========
Meridian Automotive Systems - Composite
Operations, Inc. and Subsidiaries
Unaudited Statement of Operations
May 1 to 31, 2006
(In Thousands)
Net sales US$70,463
Cost of sales 65,386
-------
Gross profit 5,077
Selling, general and administrative expenses 2,696
Restructuring charges 2,629
-------
Operating income (loss) (248)
Interest expense, net 8,793
Other (expense) income -
Chapter 11 and related reorganization items 1,735
-------
Loss before provision for income taxes (10,776)
(Benefit) Provision for income taxes 18
-------
NET LOSS (US$10,794)
=======
Meridian Automotive Systems - Composite
Operations, Inc. and Subsidiaries
Unaudited Statement of Cash Flows
May 1 to 31, 2006
(In Thousands)
OPERATING ACTIVITIES:
Net loss (US$10,794)
Adjustments required to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation, amortization, and impairment 4,305
Change in working capital and other operating
items 25,510
----------
Net cash provided by (used for) operating
activities before reorganization items 19,021
----------
Operating cash flows from reorganization items:
Chapter 11 and related reorganization items 1,735
Payments on Chapter 11 and related reorg items (1,739)
----------
Net cash provided by Chapter 11 and related
reorg items (4)
Net cash provided by (used for) operating
activities 19,017
INVESTING ACTIVITIES:
Additions to property and equipment (1,217)
Proceeds from sale or property and equipment -
----------
Net cash used for investing activities (1,217)
----------
FINANCING ACTIVITIES:
Proceeds from prepetition borrowings -
Repayments of prepetition borrowings -
Proceeds from DIP credit facility 36,400
Repayments of DIP credit facility (54,200)
Repayments on prepetition long-term debt -
Deferred financing costs capitalized -
----------
Net cash (used for) provided by financing activities (US$17,800)
----------
Net increase (decrease) in cash -
----------
Cash and Cash Equivalents, beginning of period -
Cash and Cash Equivalents, end of period -
==========
Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and
other interior systems to automobile and truck manufacturers.
Meridian operates 22 plants in the United States, Canada and
Mexico, supplying Original Equipment Manufacturers and major
Tier One parts suppliers. The Company and its debtor-affiliates
filed for chapter 11 protection on April 26, 2005 (Bankr. D.
Del. Case Nos. 05-11168 through 05-11176). James F. Conlan,
Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan
Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S.
Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq.,
and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor,
LLP, represent the Debtors in their restructuring efforts. Eric
E. Sagerman, Esq., at Winston & Strawn LLP represents the
Official Committee of Unsecured Creditors. The Committee also
hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti,
Biden & Balick, P.A., to prosecute an adversary proceeding
against Meridian's First Lien Lenders and Second Lien Lenders to
invalidate their liens. When the Debtors filed for protection
from their creditors, they listed US$530 million in total assets
and approximately US$815 million in total liabilities.
(Meridian Bankruptcy News, Issue No. 32; Bankruptcy Creditors'
Service, Inc., 215/945-7000).
* MEXICO: Selling 30-Year Peso-Denominated Bonds
------------------------------------------------
Bloomberg News reports that Mexico will sell its first 30-year
peso-denominated bond in the fourth quarter.
Deputy finance minister Alonso Garcia Tames said that the move
is part of a strategy to cut the nation's borrowing costs by
shifting obligations into local currency, Bloomberg News says.
The finance minister is confident that yields on Mexico's peso
bonds will continue to decline after the country controlled
inflation and erased its budge deficit, Bloomberg relates.
"With the evolution we're seeing in the local and international
markets, I think there's easily room for issuing this 30-year
bond," the finance minister told Bloomberg.
Specifics of the sale will be disclosed in September, Bloomberg
says. In the initial phase, about US$90.4 million (MXN1
billion) of the 30-year bonds will be sold.
Mexico currently has 1.34 trillion pesos of domestic debt. The
government hopes to attract Asian investors by adding its peso
bonds to Citigroup Inc.'s World Government Bond Index, Gerardo
Rodriguez, Mexico's public credit director, disclosed to
Bloomberg.
The finance minister underscored that during former president
Vicent Fox's term, the country saved about US$35 billion by
swapping foreign debt with domestic securities and stretching
out maturities. The Mexican government's foreign-currency debt
is equivalent to 8% of gross domestic product, the lowest in at
least four decades, compared with 32% percent in 1995, Bloomberg
states.
* * *
As reported in the Troubled Company Reporter on April 17, 2006,
Standard & Poor's Ratings Services placed an mxBB+ long-term
rating with stable outlook on the state of Mexico.
=======
P E R U
=======
* PERU: IFC Inks Financing Pact With Banco de la Microempresas
--------------------------------------------------------------
The International Finance Corp., the private sector arm of the
World Bank Group, has signed a financing agreement to help Banco
de la Microempresas S.A., or MIBANCO, bring quality financial
services to even more microenterprises in Peru.
IFC's long-term loan of up to US$29 million was disbursed this
month in both U.S. dollars and Peruvian soles, the first soles
disbursement in the country by IFC. The blend of local and US
dollar financing allows MIBANCO to match its funding needs in
each currency with its growing range of financial products. The
soles funding allows MIBANCO to provide longer-term local
currency loans, which protect both the bank and its customers
from foreign currency risk.
MIBANCO is Peru's largest specialized microfinance bank with
more than 170,000 clients across the country. To date, MIBANCO
has provided more than one million loans to low-income
individuals and small businesses in Peru, many of whom had
little or no prior access to formal credit institutions. IFC,
which has worked with MIBANCO for more than five years, supports
microfinance in line with its commitment to broadening the range
of financial services offered to smaller businesses.
Atul Mehta, IFC director for Latin America and the Caribbean,
said, "Peru's microfinance market is one of the most vibrant in
the region, and MIBANCO has done well in making basic financial
services available to those left out of the traditional banking
system. We look forward to continuing to support MIBANCO in
filling these important gaps in the banking sector."
According to Ricardo Gordillo, MIBANCO's finance manager, "This
is MIBANCO's second agreement with the IFC, and we value IFC's
support as a long-term partner and the international expertise
they provide."
About MIBANCO
MIBANCO is the leading private financial institution serving
microenterprises in Peru. MIBANCO has 70 offices nationwide and
over 850 million nuevos soles en its lending portfolio. In
2005, one in every three microenterprise borrowers was a MIBANCO
client.
In 2005, one of every two new banking offices to open belonged
to MIBANCO, thus extending financial services to all
microenterprises and low-income individuales with limited access
to credit. With loans starting at 300 nuevos soles, MIBANCO has
enabled thousands of people to access financial services.
* * *
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: Court Confirms Century-TCI & Parnassos Chapter 11 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.
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.
The Hon. Robert D. 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.
A full-text copy of the Confirmation Order is available for free
at http://ResearchArchives.com/t/s?d9e
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)
KMART CORP: Wants Court to Compel Discovery from Ashland
--------------------------------------------------------
On April 30, 2002, Ashland, Inc., filed Claim No. 14688 for
US$1,303,004 against Kmart Corp. for goods sold.
The Debtors objected to the claim. The Objection was continued,
creating a contested matter and entitling the parties to
conduct discovery in accordance with the Federal Rules of
Bankruptcy Procedure.
Kmart served its first set of interrogatories on Ashland on
April 18, 2006. Responses were due by May 18.
On May 22, 2006, Kmart asked Ashland to respond to the Discovery
Requests. Kmart further advised that if Ashland failed to
respond by June 1, Kmart would file a motion to compel
compliance with the Discovery Requests and seek appropriate
remedy, including total disallowance of the Claim.
Ashland failed to respond.
Kmart again advised Ashland on June 15, 2006, that if it did not
respond by June 20, Kmart would file the motion to compel
discovery.
Kmart has not since received a response to its correspondence.
For this reason, Kmart asks the U.S. Bankruptcy Court for the
Northern District of Illinois to compel Ashland to answer
the First Set of Interrogatories and comply with the request for
production of documents.
If the Court approves the discovery request, and Ashland fails
to comply, Kmart asks the Court strike Ashland's claim and enter
summary judgment in its favor.
About Kmart Corp.
Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam. The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474). Kmart emerged from chapter 11 protection on
May 6, 2003. John Wm. "Jack" Butler, Jr., Esq., at Skadden,
Arps, Slate, Meagher & Flom, LLP, represented the retailer in
its restructuring efforts. The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection. Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues. The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice. (Kmart Bankruptcy News,
Issue No. 113; Bankruptcy Creditors' Service, Inc., 215/945-
7000)
KMART CORP: Wants Unclaimed Shares Reverted for Redistribution
--------------------------------------------------------------
On June 23, 2006, Kmart Corp. delivered to the U.S. Bankruptcy
Court for the Northern District of Illinois a status report
indicating the names of the Unclaimed Distribution Claimholders
who have claimed their Unclaimed Shares, as of June 20, from the
Account.
William J. Barrett, Esq., at Barack Ferrazzano Kirschbaum
Perlman & Nagelberg LLP, in Chicago, Illinois, discloses that
the Status Report informs all parties what relief Kmart intends
to seek at the July omnibus hearing with respect the Unclaimed
Shares.
By the Status Report, Kmart asks the Court to provide that the
Unclaimed Shares, which have not been claimed, be deemed to
revert back to the Reorganized Debtors for redistribution to
other holders of allowed Class 5 claims as part of the final
distribution to be made at the conclusion of the claims
reconciliation process.
Mr. Barrett notes that 142,308 Unclaimed Shares fall within the
relief sought.
Kmart agrees to hold the stock reversion process in abeyance
until July 17, 2006, to allow Unclaimed Distribution
Claimholders a final opportunity to effectuate the transfer or
sale of their Unclaimed Shares.
A complete list of Claimholders who have claimed the Unclaimed
Shares or who have contacted Kmart or Computershare, Ltd., to
begin transferring the Unclaimed Shares is available for free
at:
http://researcharchives.com/t/s?dcf
A complete list of Claimholders who have not claimed the
Unclaimed Shares is available for free at:
http://researcharchives.com/t/s?dd0
Objections
(A) 7UP Companies
7UP RC Bottling Companies of Southern California and Seven Up
Bottling Company of Fresno collectively hold 1,378 shares of
stock in Sears Holding Corporation on account of their claim
against Kmart Corporation.
7UP California is entitled to receive 760 shares of the Stock.
Seven Up Fresno is entitled to receive 618 shares of the Stock.
The 7UP Companies object to the Reorganized Debtors' request.
According to the 7UP Companies, they are in the process of
transferring the Stock from Computershare to their personal
brokerage accounts.
In this regard, the 7UP Companies ask the Court to:
-- direct the Reorganized Debtors to remove their Stock from
the Status Report as "Unclaimed Shares;" and
-- rule that their Stock is not deemed reverted back to the
Reorganized Debtors.
(B) Revenue Management
Liquidity Solutions, Inc., doing business as Revenue Management,
is the holder of certain claims implicated in the Status Report:
* Claim No. 474 for US$84,062, as assignee of Colomer &
Suarez, Inc.; and
* Claim No. 19856 for US$37,948, as assignee of Trimfoot
Co., doing business as Wee Kids.
According to the Status Report, Revenue Management is to receive
643 shares of stock in Sears Holding Corporation on account of
its Claims, specifically, 375 shares for Claim No. 474 and 268
shares for Claim No. 19856.
Jay Elrich, Esq., at Jay Elrich & Associates, in Chicago,
Illinois, informs the Court that the notices of transfer of
claim in connection with Revenue Management's Claims were just
recently filed and the objection period with respect to both
transfers will not expire until July 28, 2006.
Mr. Elrich assures the Court that upon the passage of the
Transfer Objection Deadline, Revenue Management will take all
necessary steps to ensure that its Stock is transferred to its
account.
Thus, Revenue Management asks the Court to either deny the
request in the Status Report to designate its shares as
Unclaimed Shares, or remove it's shares from the list of
Unclaimed Shares deemed to revert back to the Reorganized
Debtors.
(C) USA Today
Gregory Mascitti, Esq., at Nixon Peabody LLP, in Rochester, New
York, notes that although USA Today is correctly listed under
"Claimed Shares", the number of shares distributed to, and being
claimed by USA Today, is incorrect.
The Status Report states that USA Today is claiming 339 shares.
Mr. Mascitti relates that pursuant to Kmart's Plan of
Reorganization, USA Today is claiming 586 shares in satisfaction
of its Allowed Class 5 Claim.
About Kmart Corp.
Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or
Kmart Supercenter format, in all 50 United States, Puerto Rico,
the U.S. Virgin Islands and Guam. The Company filed for chapter
11 protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474). Kmart emerged from chapter 11 protection on May 6,
2003. John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps,
Slate, Meagher & Flom, LLP, represented the retailer in its
restructuring efforts. The Company's balance sheet showed
US$16,287,000,000 in assets and US$10,348,000,000 in debts when
it sought chapter 11 protection. Kmart bought Sears, Roebuck &
Co., for US$11 billion to create the third-largest U.S.
retailer, behind Wal-Mart and Target, and generate US$55 billion
in annual revenues. The waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act expired on Jan. 27, without
complaint by the Department of Justice. (Kmart Bankruptcy News,
Issue No. 113; Bankruptcy Creditors' Service, Inc., 215/945-
7000)
OCA INC: Idaho Unit Files Schedules of Assets and Liabilities
-------------------------------------------------------------
Orthodontic Centers of Idaho, Inc, Oca, Inc.'s debtor-affiliate,
delivered to the U.S. Bankruptcy Court for the Eastern District
of Louisiana its schedules of assets and liabilities,
disclosing:
Name of Schedule Assets Liabilities
---------------- ------ -----------
A. Real Property
B. Personal Property
C. Property Claimed
as Exempt
D. Creditors Holding
Secured Claims US$92,255,022
E. Creditors Holding
Unsecured Priority Claims
F. Creditors Holding
Unsecured Nonpriority
Claims
--- -----------
Total US$0 US$92,255,022
A copy of the 22-page document containing the schedules is
available for free at http://ResearchArchives.com/t/s?dd3
Based in Metairie, Louisiana, OCA, Inc. -- http://www.ocai.com/
-- provides a full range of operational, purchasing, financial,
marketing, administrative and other business services, as well
as capital and proprietary information systems to approximately
200 orthodontic and dental practices representing approximately
almost 400 offices. The Debtor's client practices provide
treatment to patients throughout the United States and in Japan,
Mexico, Spain, Brazil and Puerto Rico.
The Debtor and its debtor-affiliates filed for Chapter 11
protection on March 14, 2006 (Bankr. E.D. La. Case No.
06-10179). Three Debtors also filed for bankruptcy protection
on June 1, 2006 (Bankr. E.D. La. Case No. 06-10503). William H.
Patrick, III, Esq., at Heller Draper Hayden Patrick & Horn, LLC,
represents the Debtors. Patrick S. Garrity, Esq., and William
E. Steffes, Esq., at Steffes Vingiello & McKenzie LLC represent
the Official Committee of Unsecured Creditors. Carmen H.
Lonstein, Esq., at Bell Boyd & Lloyd LLC and Robin B. Cheatham,
Esq., at Adams and Reese LLP represent the Official Committee of
Equity Security Holders. When the Debtors filed for protection
from their creditors, they listed US$545,220,000 in total assets
and US$196,337,000 in total debts.
=================================
T R I N I D A D & T O B A G O
=================================
DIGICEL: Launches Services in Bonaire to Link the ABC Islands
-------------------------------------------------------------
Digicel Ltd. launched services in the Netherlands Antilles
island of Bonaire, heralding a new era of choice and competition
for mobile customers. The company's launch marks a significant
milestone for Aruba, Bonaire and Curacao, connecting for the
first-time ever the three (ABC) islands under one seamless GSM
network.
With an initial investment of US$2 million, Digicel is
delivering to customers high value offerings, such as:
-- pre-paid roaming,
-- "Call Me" text messaging option,
-- multi-media messaging,
-- free activation and
-- cutting-edge handsets for as low as NaFl49 (US$28.00).
The Caribbean company is focused on becoming Bonaire's number
one mobile provider of choice and recently opened three retail
stores and 110-top up locations on the island. In celebration
of the launch, a "Digicel is Here!" free public concert was
hosted on July 14 in the island's capital of Kralendijk with
thousands in attendance.
"We are pleased to bring to the Netherlands Antilles ABC islands
superior choice, reliable nationwide coverage, high value mobile
services and the best in technology innovation," said Hans Lute,
CEO of Digicel Netherlands Antilles. "We are very committed to
growing our business operations, bringing mobile competition to
this region and delivering on our goal of becoming the number
one mobile provider of choice."
In April 2006, Digicel entered the Bonaire market through its
acquisition of majority shareholding in Antilliano Por NV. The
company has operated in the Netherlands Antilles since its 2002
launch in Aruba. In March 2005, Digicel acquired Curacao
Telecom, which was recently re-branded as Digicel.
Kenneth Gijsbertha, Minister of Transport and Communications for
the Netherlands Antilles, commended Digicel for building a pan-
Netherlands Antilles network that bridges the technology divide
from one country to the next.
"We welcome Digicel to Bonaire; finally the ABC islands are now
united and Digicel's entry into the Bonaire market represents
the fall of monopoly and the rise of real competition," said
Gijsbertha. "Competition promises to bring better service, more
innovation and most importantly of all, lower rates for the
mobile customer in Bonaire."
Digicel's Bonaire operations are led by Bert Schreuders, former
Digicel Head of Customer Relations Netherlands Antilles.
Digicel currently has operations in 20 Caribbean markets. With
more than 2 million subscribers, the company's investment in the
Caribbean currently stands at more than US$1 billion.
About Digicel Limited
Digicel Limited is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in 13 countries of the Caribbean
including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada,
Barbados, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
On July 12, 2006, Moody's Investors Service assigned a B3 senior
unsecured rating to the US$150 million add-on Notes offering of
Digicel Limited and affirmed Digicel's existing B3 senior
unsecured and B1 Corporate Family Ratings. The outlook has been
changed to stable from positive.
Fitch Ratings assigned on July 14, 2006, a 'B' rating to Digicel
Limited's proposed add-on offering of US$150 million 9.25%
senior notes due 2012. These notes are an extension of the
US$300 million notes issued in July 2005. In addition, Fitch
also affirms Digicel's foreign currency Issuer Default Rating
and the existing US$300 million senior notes due 2012 at 'B'.
Fitch said the Rating Outlook is Stable.
=============
U R U G U A Y
=============
* URUGUAY: Can Proceed with Pulp Mills Construction Along Border
----------------------------------------------------------------
The International Court of Justice rejected last week
Argentina's petition to suspend Uruguay's construction of two
pulp mills along their river border, Bloomberg News reports.
Argentina filed the suit asserting that Uruguay did not provide
sufficient time for a thorough environmental impact study on the
pulp mills. Uruguay argued that studies were conducted and that
the mills will use modern pollution control system.
Argentina insisted Uruguay violated their 1975 River Treaty,
which requires mutual agreement for any project that has an
effect on the river. Uruguay said it kept Argentina informed
about plans for the mills, and its neighbor raised no objection
until Gualeguaychu officials began to complain last year.
Gualeguaychu environmental groups, according to Bloomberg,
believe that the pulp mills will affect their livelihood.
Fishing and tourism are the main industries in the district.
The river is home to blue and yellow cardinals that are unique
to the region, as well as catfish, carp and fresh water dorados
that local officials say will be endangered by the plant's
waste.
However, the International Court said that the construction
posed no "imminent threat" to Argentina's environment, Bloomberg
says. The court will consider a permanent ruling after both
countries submit further arguments, Court President Rosalyn
Higgins was quoted by Bloomberg as saying.
"The court stated how concerned it was to protect the
environment and at the same time protect the sovereign rights of
governments to pursue economic development. but I would not say
that the court chose economic development in favour of
environmental protection," Paul S. Reichler at Foley Hoag LLP
told the Financial Times in an interview. He added, Argentina
had simply failed to present sufficient evidence to justify the
suspension of construction.
The court's decision gave rise to concerns of environmental
groups resuming roadblocks across bridges linking the two
countries, which cause Uruguay to lose about US$400 million.
"The roadblocks should not return, as they have only made
matters more complicated," Paula Brufman of Greenpeace in
Argentina told the FT. "We support the fight against Uruguay,
but there is also a need to resolve the critical situation of
Argentina's own paper mills. There is serious contamination
going on in our own rivers too."
Metsae-Botnia Oy and Grupo Empresarial Ence SA are building the
US$1.6 billion mills.
Argentina is represented by:
Susana Myrta Ruiz Cerutti
Esmeralda 212, Piso 8
C1007ABP Buenos Aires, Argentina
Phone: (54-11) 4819-7227/7001/7109
Fax: (54-11) 4819-7226
Uruguay is represented by:
Paul S. Reichler, Esq.
Foley Hoag LLP
1875 K Street, NW, Suite 800
Washington, District of Columbia 20006-1238
Tel: 202-223-1200
Telecopier: 202-785-6687
* * *
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
* * *
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
=================
INT'L PAPER: Board Approves US$3 Bil. Share Repurchase Program
--------------------------------------------------------------
International Paper Company disclosed that its board of
directors has authorized a share repurchase program to acquire
up to US$3 billion of the company's stock.
The Company said the US$3 billion share repurchase amounts to
approximately 20% of its outstanding shares. It plans to begin
the program in the third quarter of 2006 and it intends to
complete the program before the end of 2007.
Balance Sheet Strengthening
The Company plans to spend approximately US$6 billion to US$7
billion to strengthen its balance sheet, through debt repayment
and voluntary cash contributions to its U.S. pension fund in the
range of US$500 million to US$1 billion. As of the end of the
first quarter of 2006, the Company said it had reduced its debt
by approximately US$600 million to approximately US$11.5 billion
and further expects to reduce its annual interest expense by
about US$350 million.
The Company is exploring to sell its Tres Lagoas forestlands and
mill site in Brazil and build one or two 220,000 ton-per-year
uncoated paper machines on the Tres Lagoas site, at a cost of
less than US$300 million each. It expects to make a decision on
this opportunity by the end of 2006.
The Company has completed the sale of its majority share of
Carter Holt Harvey Ltd and reported it has entered into sale
agreements for 5.7 million acres of U.S. forestland and its
coated papers and kraft papers businesses, expected to close in
the second half of 2006 with expected proceeds of approximately
US$9.3 billion.
The Company's other business units being evaluated for possible
sale include its beverage packaging, wood products and Arizona
Chemical businesses, as well as its Inpacel assets in Brazil.
It expects total divestiture proceeds to exceed US$11 billion.
About International Paper
Based in Stamford, Connecticut, International Paper Company
-- http://www.internationalpaper.com/-- is a leader in the
forest products industry for more than 100 years. The company
is currently transforming its operations to focus on its global
uncoated papers and packaging businesses, which operate and
serve customers in the U.S., Europe, South America and Asia.
Its South American operations include, among others, facilities
in Argentina, Brazil, Bolivia, and Venezuela. These businesses
are complemented by an extensive North American merchant
distribution system. International Paper is committed to
environmental, economic and social sustainability, and has a
long-standing policy of using no wood from endangered forests.
* * *
Moody's Investors Service assigned a Ba1 senior subordinate
rating and Ba2 Preferred Stock rating on International Paper
Company in Dec. 5, 2005.
PETROLEOS DE VENEZUELA: Oil Import to US Drop 6%
------------------------------------------------
Bloomberg News reports that Petroleos de Venezuela SA's oil
shipments to the United States fell 6% in the first four months
of 2006. The state-oil firm sent 178.2 million barrels of crude
and petroleum products, down from 190.1 million barrels for the
same period in 2005.
The decrease, according to Bloomberg, is the result of
Venezuela's move to find new markets for its oil. Petroleos de
Venezuela has been sending more oil and fuel to India and China,
despite being seven times more distant than the U.S. As a
result, oil revenues drop US$3 per barrel.
"Two things are clear," Roger Tissot, an oil analyst with PFC
Energy, a consulting firm in Washington, told Bloomberg.
"Venezuela wants to reduce its dependence on the U.S., and it
wants to position itself in the world's fastest growing markets,
such as India and China."
For six months without crude from Venezuela, oil prices in the
U.S. would gain as much as US$11 per barrel and reduce the
country's gross domestic product by US$23 billion, Bloomberg
says, citing a report by the General Accountability Office, the
non-profit research arm of the US Congress.
"We better understand the vulnerabilities that our economy and
our very lives have when we're dependent on Iranian mullahs, and
whackos in Venezuela," Senator John McCain said in a Jan. 22
interview on Fox News Sunday.
Oil to Asia
Petroleos de Venezuela inked a long-term sales pact with India
in April for 2 million barrels of oil a month. The company is
also in talks with Reliance Industries Ltd., India's largest
non-state oil refiner, for additional shipments, Bloomberg says.
Previously, Venezuelan oil and energy minister, Rafael Ramirez,
said that his country aims to deliver 300,000 barrels per day to
China. Currently, Petroleos de Venezuela sells 100,000 bpd of
crude oil and 60,000 bpd of fuel oil to China under two
contracts signed in 2005.
Petroleos de Venezuela said in May that it planned to buy 18 oil
tankers from Chinese shipyards at US$1.3 billion to allow for
increased shipments to Asia.
Industry analysts quoted by Bloomberg explained that Chinese
refineries couldn't process heavy crude from Venezuela.
Building those kind of refineries would take years, the analsyts
said.
Bloomberg says that most supertankers can't fit through Panama
Canal, forcing them to go around South America to reach China
after loading at Caribbean ports.
Analysts added that if Venezuela will build a pipeline that will
cross Colombia to the Pacific, sales to Asia then would make
sense. Still, building those pipelines would cost up to US$4.7
billion, Bloomberg relates.
Bilateral Relations
According to analysts quoted by Bloomberg, President Hugo Chavez
is laying down the foundation of his threat to cut oil supplies
to the United States.
President Chavez accused the US of wanting to assassinate him
and overthrow his government. US officials called Mr. Chavez a
"destabilizing force" in Latin America.
At the moment, Venezuela can't simply suspend sales to the U.S.
without damaging its own economy. Petroleos de Venezuela would
be unable to find buyers for most of the 2.1 million barrels of
crude oil it exports daily, Bloomberg cites Juan Carlos Sosa,
president of Grupo Petroleo YV, a Caracas-based energy
consultant.
About Petroleos de Venezuela
Petroleos de Venezuela SA is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and
coal industry, as well as planning, coordinating, supervising
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
* * *
On Jan. 23, 2006, Fitch Ratings upgraded the local and foreign
currency ratings of Petroleos de Venezuela S.A. aka PDVSA to
'BB-' from 'B+'. The rating of PDVSA's export receivable future
flow securitization, PDVSA Finance Ltd, was also upgraded to
'BB+' from 'BB'. In addition, Fitch has assigned PDVSA a
'AAA(ven)' national scale rating. Fitch said the Rating Outlook
is Stable. Both rating actions followed Fitch's November 2005
upgrade of Venezuela's sovereign rating.
* VENEZUELA: Exports to Colombia Amounts to US$388M in 1Q
---------------------------------------------------------
Venezuela's export to Colombia for the first quarter of 2006
amounted to US$388 million, El Universal reports, citing data
from the Venezuelan-Colombia Chamber for Economic Integration
Bilateral trade between the two nations totalled US$904 million.
The trade group estimates final trade balance at US$3 billio for
this year, El Universal says.
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* VENEZUELA: Mulls Purchase of US$100M Paraguayan Foreign Bonds
---------------------------------------------------------------
The Venezuelan government may purchase up to US$100 million of
Paraguay's bonds in order to set-up a development bank in
Paraguay, El Universal reports, citing Venezuelan Finance
minister Nelson Merentes.
Venezuela is "assessing purchase of such bonds to create an
institution in that country," the Venezuelan finance minister
told El Universal. The operation would be handled by the
Venezuelan Bank for Economic and Social Development -- Bandes.
The government, the officiald disclosed to El Universal, plans
to establish a branch of Bandes in Paraguay, as it did in
Uruguay, where the Venezuelan Government purchased a savings
cooperative that is to grant loans as of July 24.
Additionally, Venezuela may include buying debt instruments from
the Itaipu hydro-electric project. However, the proposed Itaipu
bond sale may meet resistance from Brazilian officias since the
project is jointly run by Brazil and Paraguay.
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* VENEZUELA: State-Run Banks Fund Firms Exporting to Cuba
---------------------------------------------------------
To reinforce the signing ot the Bolivarian Alternative for the
Americas, Venezuela's state-run banks are providing financing to
companies willing to export goods to Cuba, El Universal reports.
Venezuela, Cuba and Bolivia signed the agreement in May as an
alternative to US-sponsore Free Trade Area of the Americas.
Banco de Comercio Exterior hasprovided about US$230 million to
firms that send goods to Cuba, according to El Unviersal.
Meanwhile, Cuba is making room for Venezuelan goods by
displacing imports from other countries.
"Cuba is considering a plan to substitute imports and import
from Venezuela rather than from other countries, with prior
assessment of quality and prices, of course. President Castro
himself has become the architect of this policy. He has
Venezuelan goods in his office," Gustavo Marquez, Venezuelan
minister for Integration and Foreign Commerce, who is also the
head of Bancoex, told El Universal.
Cuba-based Banco Industrial de Venezuela is also granting loans
to Cuban importers. "We have granted US$23 million, with US$8.8
million actually delivered," Luis Quiaro, Banco Industrial's
president, disclosed to El Universal.
Additonally, El Universal says that four Cuban financial
institutions are granting loans to Cuban public firms purchasing
goods from Venezuelan companies.
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella
Mae Hechanova, and Christian Toledo, Editors.
Copyright 2006. All rights reserved. ISSN 1529-2746.
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delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial
subscription or balance thereof are $25 each. For subscription
information, contact Christopher Beard at 240/629-3300.
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