/raid1/www/Hosts/bankrupt/TCRLA_Public/060926.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
Tuesday, September 26, 2006, Vol. 7, Issue 191
Headlines
A R G E N T I N A
ACXIOM CORP: Elects R. Halsey Wise to Board of Directors
FERRETERIA AGROPECUARIA: Claims Verification Is Until Nov. 30
LEDSEN SRL: Asks for Court Approval to Reorganize Business
NUEVO BANCO: Moody's Assigns Ba3 Currency Deposit Ratings
PINNACLE ENT: Eyeing US$250 Million Credit Facility Increase
STANDARD BANK: Moody's Puts Caa1 Rating on Currency Deposits
TALLER SU: Verification of Proofs of Claim Is Until Oct. 18
TIPHARET SA: Trustee Verifies Proofs of Claim Until Dec. 6
VALSONA SRL: Claims Verification Deadline Is Set for Nov. 13
B A H A M A S
COMPLETE RETREATS: Wants De Minimis Asset Sale Process Approved
COMPLETE RETREATS: Committee Hires Bingham as Lead Counsel
WINN-DIXIE: Four Parties Want Leesburg & Edgewood Taxes Attached
WINN-DIXIE: Wants to Walk Away from 26 Contracts
B E R M U D A
BUTTERFLY MCQUEEN: Proofs of Claim Filing Is Until Oct. 25
LUNDIN SUDAN: Creditors Must File Proofs of Claim by Oct. 5
MUTUAL REINSURANCE: Scheme Administrators Pay Creditors
B R A Z I L
AMRO REAL: Unit Seeks Regulatory Approval on Debenture Issuance
BANCO NACIONAL: Grants BRL93-Million Financing to Energy Sector
BRASKEM SA: Fitch Rates Proposed US$275 Million Sr. Notes at BB+
BERTIN LTDA: S&P Rates US$150 Mil. Senior Unsecured Notes at B+
CHEMTURA CORP: Increasing Epoxy Soybean Oil Capacity by 15%
CHEMTURA CORP: Increasing Fatty Acid Prices by US$0.02 Per Pound
CHEMTURA CORP: Names Janet Chetland as Business Director
DURA AUTOMOTIVE: Receives Nasdaq Notice of Price Non-Compliance
ELETROPAULO METROPOLITANA: S&P Puts B+ Ratings on Positive Watch
LAZARD LTD: Names Georges Ralli as Chief Executive Officer
NOVELIS INC: 2006 First Quarter Financials Filing Cures Default
PETROLEO BRASILEIRO: Says Price Talks with Bolivia Going Well
C A Y M A N I S L A N D S
ARES TOTAL: Final Shareholders Meeting Scheduled for Oct. 6
KENMAR-NIHON EQUITY: Final Shareholders Meeting Set for Oct. 6
KENMAR-NIHON (FUND): Last Shareholders Meeting Is Set for Oct. 6
KENMAR-NIHON (SERIES): Final Shareholders Meeting Is on Oct. 6
KRAKOW LEASING: Liquidator Presents Wind Up Accounts on Oct. 6
LOT LEASING: Shareholders Gather for a Final Meeting on Oct. 6
MARINE OPERATOR: Last Day to File Proofs of Claim Is on Oct. 9
MARYLEBONE ROAD: Sets Final Shareholders Meeting on Oct. 6
ORICO MILLENNIUM: Proofs of Claim Filing Deadline Is on Oct. 9
PASADENA CDO: Calls Shareholders for a Final Meeting on Oct. 6
TARNOW LEASING: Calls Shareholders for a Last Meeting on Oct. 6
TEXEL FIXED (HEDGE): Proofs of Claim Filing Is Until Oct. 10
TEXEL FIXED (MASTER): Proofs of Claim Must be Filed by Oct. 10
WHARTON ASIAN: Shareholders Vote to Liquidate Business
WINDHOEK AVIATION: Creditors Must File Proofs of Claim by Oct. 9
C O L O M B I A
BANCO DEL CAFE: Government Sells 1% Stake for COP10.05 Billion
CENTRAGAS-TRANSPORTADORA: S&P Says BB Rating Show Liquidity Risk
* COLOMBIA: Posts US$12-Mil. Profit from Power Sold to Ecuador
D O M I N I C A N R E P U B L I C
AES DOMINICANA: Says Unit Shut Down for Scheduled Maintenance
BANCO INTERCONTINENTAL: Defense Seeks to Suspend Court Trial
E C U A D O R
DEL MONTE: Declares Cash Dividend of US$0.04 Per Share
* ECUADOR: Gets 137 Gigawatt Hours of Power from Colombia
* ECUADOR: Internet Service Providers to Register Bandwidth
E L S A L V A D O R
DELL INC: Faces NASDAQ Delisting Due to Form 10-Q Late Filing
G U A T E M A L A
* GUATEMALA: Ministry Says Maximum Electricity Demand Drops
* GUATEMALA: Awards Exploration & Production Contract to US Oil
H A I T I
* HAITI: IDB Approves US$15MM Loan for Rural Water & Sanitation
H O N D U R A S
* HONDURAS: Providing Updated Hydrocarbons Information by 2007
J A M A I C A
DIGICEL LIMITED: Venturing Into U.S. Market in 2007
DYOLL INSURANCE: Senator Urges Farmers to Appeal on Payments
NATIONAL COMMERCIAL: Unit Lists 11.75% Shares on Stock Exchange
M E X I C O
BERRY PLASTICS: Company Sale Prompts S&P to Lower Rating to B
DESARROLLADORA HOMEX: S&P Affirms BB- Corporate Credit Rating
FORD MOTOR: Vice President A.J. Wagner to Retire on January 2007
FREESCALE SEMICONDUCTOR: Fitch Lowers Sr. Debt's Rating to BB+
GENERAL MOTORS: Progress on Nissan-Renault Alliance Talks Slow
GLOBAL CROSSING: Opens Telecommunications Facility in Monterrey
GRUPO ELEKTRA: Unit Posts MXN9 Million First Half Earnings
KRISPY KREME: Appoints Andrew J. Schindler to Board of Directors
KRISPY KREME: Hires Charles A. Blixt as Interim General Counsel
UNITED RENTALS: Moody's Assigns Loss-Given-Default Ratings
P E R U
CONNACHER OIL: Moody's Assigns B1 Rating to Credit Facilities
PETROLEO BRASILEIRO: Signing Development Accord with Petroperu
* PERU: China Mulls Investing US$1.5 Billion in Mining Sector
P U E R T O R I C O
ALLIED WASTE: Moody's Assigns Loss-Given-Default Ratings
ORIENTAL FINANCIAL: Posts Second Quarter Net Income of US$1.32MM
PEP BOYS: Seeks to Expand Credit Facility by US$120 Million
T R I N I D A D & T O B A G O
BRITISH WEST: Trade Unions to Sign Workers' Separation Accord
U R U G U A Y
* URUGUAY: Grupo Empresarial Mulls Relocation of Plant
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Unit Inks Cooperation Accord with Bandes
* VENEZUELA: Russky Alyuminiyum to Implement Bauxite Projects
* VENEZUELA: Tax Authority Advises BP & Chevron of Back Taxes
* BOND PRICING: For the Week of Sept. 18 -- Sept. 22, 2006
- - - - -
=================
A R G E N T I N A
=================
ACXIOM CORP: Elects R. Halsey Wise to Board of Directors
--------------------------------------------------------
Acxiom(R) Corp. selected R. Halsey Wise, president and chief
executive officer of Intergraph Corp., to join the company's
board of directors, effective immediately. ValueAct Capital,
Acxiom's largest shareholder, nominated Mr. Wise and the Acxiom
board unanimously elected him.
"We are very pleased to add a director of Halsey Wise's stature
to our board," said Charles D. Morgan, Acxiom's chairman and
company leader. "He brings a wealth of technology-related,
business-to-business company experience and has an excellent
track record of achievement. Halsey has a strong financial
background, coupled with proven organizational leadership
experience. We look forward to his helping Acxiom continue to
grow and meet our clients' needs."
"I am pleased to join the board of directors at Acxiom," Mr.
Wise said. "The Company has established an outstanding
reputation for delivering innovative and differentiated
solutions to clients across a variety of industries. Acxiom has
a very bright future, and I look forward to working with the
management team and board to contribute to the Company's
success."
Mr. Wise joined Intergraph, a leading global provider of spatial
information management software, in July 2003 as President, CEO
and a member of the board. Prior to joining Intergraph, he
served as CEO, North America, for Solution 6 Holdings, Ltd., the
largest software company in Australia. Mr. Wise formerly was
President and COO of Computer Management Sciences, Inc., an
information technology services company that was later acquired
by Computer Associates International. At Computer Associates, he
was General Manager, North America, for Global Professional
Services.
Mr. Wise holds a master's degree in finance and marketing from
the J.L. Kellogg Graduate School of Management at Northwestern
University and a B.A. degree in history from the University of
Virginia.
About Acxiom Corp.
Based in Little Rock, Arkansas, Acxiom Corp. (Nasdaq: ACXM)
-- http://www.acxiom.com/-- integrates data, services and
technology to create and deliver customer and information
management solutions for many of the largest, most respected
companies in the world. The core components of Acxiom's
innovative solutions are Customer Data Integration technology,
data, database services, IT outsourcing, consulting and
analytics, and privacy leadership. Founded in 1969, Acxiom has
locations throughout the United States, Europe, Australia and
China. Acxiom has a team of specialists with sales and business
development associates based in the largest Latin American
markets: Brasil, Argentina and Mexico.
* * *
Standard & Poor's Ratings Services assigned on Sept. 6, 2006,
its loan and recovery ratings to Little Rock, Arkansas-based
Acxiom Corp.'s proposed US$800 million secured first-lien
financing. The first-lien facilities consist of a US$200
million revolving credit facility and a US$600 million term
loan. They are rated 'BB' with a recovery rating of '2'.
As reported in the Troubled Company Reporter on Aug. 25, 2006,
Moody's Investors Service assigned a Ba2 rating to Acxiom
Corporation's US$800 million senior secured credit facilities,
while affirming its corporate family rating of Ba2. The outlook
is stable.
FERRETERIA AGROPECUARIA: Claims Verification Is Until Nov. 30
-------------------------------------------------------------
Graciela Lema de Muino, the court-appointed trustee for
Ferreteria Agropecuaria S.A.'s bankruptcy proceeding, will
verify creditors' proofs of claim until Nov. 30, 2006.
Under the Argentine bankruptcy law, Ms. de Muino is required to
present the validated claims in court as individual reports.
Court No. 20 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Ferreteria
Agropecuaria and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Ms. de Muino will also submit a general report that contains an
audit of Ferreteria Agropecuaria's accounting and banking
records. The report submission dates have not been disclosed.
Ferreteria Agropecuaria was forced into bankruptcy at the behest
of Daniel Gomez, whom it owes US$4500.
Clerk No. 40 assists the court in the proceeding.
The debtor can be reached at:
Ferreteria Agropecuaria S.A.
Mexico 2031
Buenos Aires, Argentina
The trustee can be reached at:
Graciela Lema de Muino
Basualdo 1064
Buenos Aires, Argentina
LEDSEN SRL: Asks for Court Approval to Reorganize Business
----------------------------------------------------------
Court No. 9 in Buenos Aires is studying the merits of Ledsen
S.R.L.'s petition to reorganize is business after it stopped
paying its debts on Aug. 1, 2006.
The petition, once approved by the court, will allow Ledsen to
negotiate a settlement plan with its creditors in order to avoid
a straight liquidation.
Clerk No. 18 assists the court in the proceeding.
The debtor can be reached at:
Ledsen S.R.L.
Senillosa 526
Buenos Aires, Argentina
NUEVO BANCO: Moody's Assigns Ba3 Currency Deposit Ratings
---------------------------------------------------------
Moody's Investors Service assigned a bank financial strength
rating of E+ to Nuevo Banco Bisel S.A. Moody's also assigned
long- and short-term global local-currency deposit ratings of
Ba3 and Not Prime, and long- and short-term foreign-currency
deposit ratings of Caa1 and Not Prime. Bisel's foreign currency
deposit ratings are thus constrained by Moody's country ceilings
for Argentina.
In addition, Moody's assigned Argentine national scale ratings
for its local- and foreign-currency deposits of Aa2.ar and
Ba1.ar to Bisel, based on the corresponding global scale
ratings.
Bisel's first-time ratings are based on its 93.7% ownership by
Banco Macro Bansud S.A. or BMB, acquired in August 2006. The
ratings, therefore, are aligned to those of Banco Macro and its
other rated subsidiaries. The BFSR's positive outlook is based
on the growth potential and additional product and business
diversification that the group can achieve by full integration
of its acquisitions. All other ratings have stable outlooks.
Bisel's ratings reflect Moody's opinion that the bank is an
integral part of BMB, which controls and is closely managing its
new acquisition to its own standards. BMB has been closely
assessing Bisel beginning in May 2006 when the bank won the
government auction to take over Bisel from Banco de la Naci¢n
Argentina.
Although Bisel is expected to remain a separate unconsolidated
subsidiary, from a credit perspective, Moody's views the two
banks as having the same credit risk. Bisel is being centrally
managed by BMB's senior management in all operational matters
including financial management, credit, treasury, and marketing
strategy. Bisel is to share the BMB brand-image, retaining the
traditional Bisel name.
The agency also warned, however, that Bisel has weak financial
fundamentals, which derive from its poor asset quality, broad
exposure to the public sector, and weak core earnings. High
administrative expenses arising from the bank's temporary
ownership must be adapted to the new business structure and
BMB's market-driven policies and procedures.
The analysts noted that as in the case of BMB, Bisel's Ba3
global local-currency deposit rating primarily reflects the view
that due to its important deposit franchise the bank would enjoy
certain priority for liquidity support to cover its local
currency deposit obligations, if needed, from the Central Bank
of the Argentine Republic. The relatively high global local-
currency rating therefore points to the predictability of
institutional support, thereby benefiting from several notches
of lift above the group's stand alone rating.
Bisel's foreign currency NSR of Ba1.ar is much lower than the
local currency NSR of Aa2.ar as it reflects foreign currency
transferability and convertibility risk, and is similar to that
of the other Argentine banks rated for foreign currency
deposits. The NSRs are designed for local market use only, and
are not opinions on absolute default risks as in the case of the
global scale ratings.
Headquartered in Rosario, Province of Santa Fe, Argentina, Nuevo
Banco Bisel S.A.had ARS1.9 billion in assets and ARS1.3 billion
in deposits as of June 2006.
These ratings were assigned to Nuevo Banco Bisel S.A.:
-- Bank Financial Strength Rating: E+, positive outlook;
-- Long-Term Global Local-Currency Deposits Rating: Ba3,
stable outlook;
-- Short-Term Local-Currency Deposits Rating: Not Prime,
stable outlook;
-- Long-Term Foreign-Currency Deposits Rating: Caa1, stable
outlook;
-- Short-Term Foreign-Currency Deposits Rating: Not Prime,
stable outlook;
-- National Scale Rating for Local-Currency Deposits: Aa2.ar,
stable outlook; and
-- National Scale Rating for Foreign-Currency Deposits:
Ba1.ar, stable outlook.
PINNACLE ENT: Eyeing US$250 Million Credit Facility Increase
------------------------------------------------------------
Pinnacle Entertainment intends to ask the lenders under its
US$750 million credit facility for, among other things, an
increase in the amount of its credit facility by US$250 million.
Pinnacle also intends to amend certain covenants and other
conditions of the credit facility to improve overall financing
flexibility, in particular as it relates to the Company's
agreement to acquire the entities that own The Sands and
Traymore sites in Atlantic City, NJ.
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 Sept. 8, 2006
Moody's Investors Service affirmed the ratings and positive
outlook of Pinnacle Entertainment following the signing of a
definitive agreement under which Pinnacle agreed to purchase the
entities that own The Sands and Traymore sites in Atlantic City
for approximately US$250 million, plus an additional US$20
million for certain tax-related benefits and real estate.
Pinnacle has a B2 corporate family rating, B1 senior secured
bank debt rating, and Caa1 senior subordinated debt rating.
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 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.
STANDARD BANK: Moody's Puts Caa1 Rating on Currency Deposits
------------------------------------------------------------
Moody's Investors Service assigned first-time ratings to
Standard Bank Argentina S.A. These are a bank financial
strength rating of E+ and long- and short- term global local-
currency deposit ratings of Ba1 and Not Prime. Moody's also
assigned long- and short-term global foreign-currency deposit
ratings of Caa1 and Not Prime to Standard Bank Argentina.
First-time national scale ratings for local-currency deposits of
Aaa.ar and Ba1.ar for foreign-currency deposits were also
awarded. The outlooks on all of these ratings are stable.
Moody's said that the bank financial strength rating for
Standard reflects its relatively small market position in the
investment banking business, and the bank's weak core-earnings
generation, which indicates its modest business activity in
Argentina and relatively high expenses. The low BFSR also
reflects Moody's expectations that management is challenged to
develop the bank's franchise in a still recovering wholesale
market.
Standard Bank Argentina S.A. is a subsidiary of Standard Bank
International Corporation Investments S.A. (SBIC Investments
S.A.). As such, it represents an integral part of Standard Bank
strategy, and it enjoys the group's support in terms of its
business model, and strategies. Standard Bank replicates its
parent's risk-management procedures and controls.
The local-currency deposit ratings reflect Standard's status as
a subsidiary of SBIC Investments S.A., London. The foreign-
currency deposit ratings are constrained by the Argentine
country ceiling for foreign-currency deposits. The foreign-
currency national scale rating is much lower than the rating for
the local currency national scale because it reflects foreign
currency transferability and convertibility risk, which
continues to be high in the case of Argentina.
Headquartered in Buenos Aires, Argentina, Standard Bank
Argentina, was recently granted regulatory approval to operate a
commercial bank, upon which the bank acquired certain assets and
liabilities of ING Bank Argentina. As of June 2006, the bank did
not hold deposits.
These ratings were assigned to Standard Bank Argentina S.A.
-- Bank Financial Strength Rating: E+, stable outlook;
-- Long- Term Global Local-Currency Deposits Rating: Ba1,
stable outlook;
-- Short- Term Local- Currency Deposits Rating: Not Prime,
stable outlook;
-- Long -Term Foreign-Currency Deposits Rating: Caa1, stable
outlook;
-- Short -Term Foreign-Currency Deposits Rating: Not Prime,
stable outlook;
-- National Scale Rating for Local-Currency Deposits: Aaa.ar,
stable outlook; and
-- National Scale Rating for Foreign-Currency Deposits:
Ba1.ar, stable outlook.
TALLER SU: Verification of Proofs of Claim Is Until Oct. 18
-----------------------------------------------------------
Mauricio Rosenblum, the court-appointed trustee for Taller Su
Motor S.A.'s reorganization proceeding, will verify creditors'
proofs of claim until Oct. 18, 2006.
Under the Argentine bankruptcy law, Mr. Rosenblum is required to
present the validated claims in court as individual reports.
Court No. 19 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Taller Su and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Rosenblum will also submit a general report that contains an
audit of Taller Su's accounting and banking records. The report
submission dates have not been disclosed.
On July 11, 2007, Taller Su's creditors will vote on a
settlement plan that the company will lay on the table.
Clerk No. 38 assists the court in the proceeding.
The debtor can be reached at:
Taller Su Motor S.A.
Andalgala 1728
Buenos Aires, Argentina
The trustee can be reached at:
Mauricio Rosenblum
B. Mitre 2296
Buenos Aires, Argentina
TIPHARET SA: Trustee Verifies Proofs of Claim Until Dec. 6
----------------------------------------------------------
Alberto G. Hosselet, the court-appointed trustee for Tipharet
S.A.'s bankruptcy case, will verify creditors' proofs of claim
until Dec. 6, 2006.
Under the Argentine bankruptcy law, Mr. Hosselet is required to
present the validated claims in court as individual reports.
Court No. 2 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Tipharet and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Hosselet will also submit a general report that contains an
audit of Tipharet's accounting and banking records. The report
submission dates have not been disclosed.
Tipharet was forced into bankruptcy at the request of Envagraf,
which it owes US$10,727.38.
Clerk No. 4 assists the court in the proceeding.
The debtor can be reached at:
Tipharet S.A.
Cespedes 2437
Buenos Aires, Argentina
The trustee can be reached at:
Alberto G. Hosselet
Avenida Luis M. Campos 1160
Buenos Aires, Argentina
VALSONA SRL: Claims Verification Deadline Is Set for Nov. 13
------------------------------------------------------------
Adolfo J. Santos, the court-appointed trustee for Valsona
S.R.L.'s bankruptcy case, will verify creditors' proofs of claim
until Nov. 13, 2006.
Under the Argentine bankruptcy law, Mr. Santos is required to
present the validated claims in court as individual reports.
Court No. 4 in Buenos Aires will determine if the verified
claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by Valsona and its
creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
Mr. Santos will also submit a general report that contains an
audit of Valsona's accounting and banking records. The report
submission dates have not been disclosed.
Valsona was forced into bankruptcy at the request of Quimica
Estrella, which it owes US$52,259.83.
Clerk No. 8 assists the court in the proceeding.
The debtor can be reached at:
Valsona S.R.L.
B. Encalada 3757
Buenos Aires, Argentina
The trustee can be reached at:
Adolfo J. Santos
Junin 55
Buenos Aires, Argentina
=============
B A H A M A S
=============
COMPLETE RETREATS: Wants De Minimis Asset Sale Process Approved
---------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates seek permission
from the U.S. Bankruptcy Court for the District of Connecticut
to implement uniform procedures for the sale of their de minimis
assets, free and clear of liens, claims, and encumbrances.
In connection with their reorganization efforts, the Debtors
will be exiting several properties in various geographic
locations throughout the duration of their bankruptcy cases,
Jeffrey K. Daman, Esq., at Dechert LLP, in Hartford,
Connecticut, informs the Court. Consequently, the Debtors need
to relocate or dispose their furnishings or assets located at
those properties.
According to Mr. Daman, the Debtors' assets are typically
modeled on "high-end" luxury furniture but no longer have
significant monetary value due to usage and minor cosmetic
damages sustained during relocations. The Debtors do not
anticipate a future need for the assets and it will cost several
thousand dollars for them to move or store the assets, Mr. Daman
relates.
Moreover, filing individual motions to sell the assets or
conducting a public auction could limit the net proceeds of any
sale, Mr. Daman says.
To facilitate and effectuate cost-efficient and timely sales of
the de minimis assets, the Debtors propose these procedures:
(a) The Debtors are authorized to conduct separate sales of
de minimis assets up to an aggregate value of US$75,000
per Sale Transaction.
(b) The Debtors are authorized to consummate a sale without
further notice if:
* sale proceeds are less than US$25,000;
* the buyer is not an insider, employee, or affiliate
of the Debtors;
* no event of default exists under the DIP Credit
Agreement; and
* neither the de minimis asset nor the place where it
is located is subject to a prepetition mortgage lien
in favor of one of the Debtors' prepetition lenders.
(c) The Debtors will deliver a written notice of each
proposed sale to the counsels for the Official Committee
of Unsecured Creditors, The Patriot Group, LLC, and LPP
Mortgage, Ltd., if no Event of Default exists under the
DIP Credit Agreement and:
* the de minimis assets will be sold for more than
US$25,000;
* the de minimis assets will be sold to an insider,
employee, or affiliate of the Debtors; or
* the de minimis assets or its location is subject to
a prepetition mortgage lien in favor of one of the
Debtors' prepetition lenders.
If the DIP Credit Agreement has been replaced and all the
Debtors' obligations to Patriot and LPP Mortgage have
been satisfied, the Debtors will deliver the Notice to:
* the counsel for the agent or lenders under a
replacement DIP agreement;
* the office of the United States Trustee; and
* any holder of a known lien, claim, or encumbrance
relating to the de minimis asset to be sold or its
location.
(d) Notices will be served on the date of service and will
contain:
* a brief, reasonably detailed description of the de
minimis asset to be sold;
* the identity of the proposed purchaser and a
description of its relationship, if any, to the
Debtors;
* the proposed purchase price;
* a statement indicating whether or not the Debtors
have received offers from other parties and the
range of the offers, if any; and
* a brief, reasonably detailed explanation of the
Debtors' efforts in marketing the de minimis asset
and why the Debtors chose the proposed purchaser's
offer.
The Debtors will have the right to make non-material
amendments to the proposed sale's terms without serving
an amended notice on the notice parties.
(e) Objections to a proposed sale and any alternative offers
for the de minimis assets should be filed and served, or
delivered, by the seventh business day after the notice
is served, to Joel H. Levitin, Esq., at the offices of
Dechert LLP, at 30 Rockefeller Plaza, in New York.
Otherwise, the Debtors will be authorized to consummate
the sale without further notice or court order.
(f) If an objection is properly filed, the Debtors and the
objecting notice party will use good faith efforts to
resolve it. If the Debtors and the objecting notice
party are unable to achieve a consensual resolution, the
Debtors will not proceed with the proposed sale unless
and until the court approves the sale.
(g) The Debtors, in their sole and absolute discretion, may
seek court approval at any time of any proposed sale.
(h) Within three business days after the closing of any sale,
the Debtors will deliver to the notice parties a
settlement statement.
The proposed procedures will minimize administrative costs,
speed the necessary sales of the de minimis assets, create value
for the Debtors' estates, increase the Debtors' liquidity and
preserve the rights of interested parties to object to, or make
higher or better offers with respect to, the proposed
transaction, Mr. Daman asserts.
The proceeds of any sales will be applied to reduce the balance
of the DIP Credit Agreement, pursuant to which Patriot and LPP
Mortgage have senior liens on the de minimis assets, Mr. Daman
tells the Court.
About Complete Retreats
Complete Retreats, LLC, Preferred Retreats, LLC, and their
subsidiaries were founded in 1998. Owned by Robert McGrath and
four minority owners, the companies operate a five-star
hospitality and real estate management business and are a
pioneer and market leader of the "destination club" industry.
Under the trade name "Tanner & Haley Resorts," Complete
Retreats, et al.'s destination clubs have numerous individual
and company members.
Destination club members pay up-front membership deposits,
annual dues, and daily usage fees. In return, members and their
guests enjoy the use of first-class private residences, and
receive an array of luxurious services and amenities in certain
exotic vacation destinations in the United States and locations
around the world, including: Abaco, Bahamas; Cabo San Lucas,
Mexico; Nevis, West Indies; Telluride, Colorado; and Jackson
Hole, Wyoming.
Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306). Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts. Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor. When
the Debtors filed for chapter 11 protection, they listed total
debts of US$308,000,000. (Complete Retreats Bankruptcy News,
Issue No. 8; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
COMPLETE RETREATS: Committee Hires Bingham as Lead Counsel
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Connecticut gave
the Official Committee of Unsecured Creditors in Complete
Retreats LLC and its debtor-affiliates' chapter 11 cases
permission to retain Bingham McCutchen LLP as its lead counsel,
nunc pro tunc to Aug. 3, 2006.
As reported in the Troubled Company Reporter on Aug. 24, 2006,
Committee Chair Joel S. Lawson III informed that Court that
Bingham has since represented the Committee in the Debtors'
cases.
Among other things, Bingham:
-- reviewed and analyzed the Debtors' first-day motions and
proposed orders;
-- was involved in the discussions of the Debtors' proposed
postpetition financing arrangements, including discussions
of the terms and conditions for repayment of the Debtors'
prepetition financing facility; and
-- consulted with the Debtors and their legal, financial and
restructuring advisors in connection with their
operations, management and administration of the
bankruptcy cases.
As the Committee's lead counsel, Bingham will:
(a) provide legal advice with respect to the Committee's
rights, powers, and duties;
(b) represent the Committee at all hearings and other
proceedings;
(c) advise and assist in the Committee's discussions with the
Debtors and other parties in interest, regarding the
overall administration of the bankruptcy cases;
(d) assist the Committee in analyzing the claims of the
Debtors' creditors and negotiate with the creditors;
(e) assist with the Committee's investigation of the assets,
liabilities, and financial condition of the Debtors and
of the operations of the Debtors' businesses;
(f) assist the Committee in its analysis of, and negotiations
with, the Debtors or any third party concerning matters
related to, among other things, formulating the terms of
a plan or plans of reorganization;
(g) assist and advise the Committee with respect to its
communications with the general creditor body regarding
matters in the bankruptcy cases;
(h) review and analyze all pleadings, orders, statements of
operations, schedules, and other legal documents;
(i) prepare, on behalf of the Committee, all pleadings,
orders, reports and other legal documents as may be
necessary to further the Committee's interests and
objectives; and
(j) perform all other legal services for the Committee that
may be necessary and proper to facilitate the discharge
by the Committee of its duties in the bankruptcy cases
and any related proceedings.
Mr. Lawson said Bingham has had extensive Chapter 11 creditors'
committee experience and knowledge and is particularly well
suited for the type of representation required
by the Committee.
"[Bingham] has both a national and international practice, with
more than 950 lawyers in 12 offices throughout the United
States, as well as in London and Tokyo," Mr. Lawson noted, "and
has experience in all aspects of the law that are likely to
arise in the bankruptcy cases."
The Debtors will pay Bingham based on its customary hourly
rates:
Professional Hourly Rate
------------ -----------
Partners & Counsel US$445 - US$850
Counsel & Associates US$175 - US$535
Paraprofessionals US$100 - US$315
Attorney Hourly Rate
-------- -----------
Michael J. Reilly, Partner US$750
Jonathan B. Alter, Partner 550
Daniel McGillycuddy, Partner 525
William F. Govier, Counsel 435
Kurt A. Mayr, Counsel 400
Richard H. Agins, Associate 340
Peter H. Bruhn, Associate 255
Michael J. Reilly, a partner at Bingham McCutchen LLP, told
the Court that the firm has represented, and will likely
continue to represent, certain creditors of the Debtors and
various other parties adverse to the Debtors in matters
unrelated to the Debtors' bankruptcy cases.
A list of the Interested Parties that Bingham currently
represents in matters unrelated to the Debtors' cases is
available for free at http://researcharchives.com/t/s?1028
Other than the identified Interested Parties, Mr. Reilly assured
the Court that Bingham has no other connection with the Debtors,
their creditors, the Acting United States Trustee for Regions 2
and any other parties-in-interest.
Mr. Reilly also assured the Court that Bingham is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code, and does not hold or represent any interest
adverse to the Debtors' estates with respect to the matters for
which it is to be retained.
About Complete Retreats
Complete Retreats, LLC, Preferred Retreats, LLC, and their
subsidiaries were founded in 1998. Owned by Robert McGrath and
four minority owners, the companies operate a five-star
hospitality and real estate management business and are a
pioneer and market leader of the "destination club" industry.
Under the trade name "Tanner & Haley Resorts," Complete
Retreats, et al.'s destination clubs have numerous individual
and company members.
Destination club members pay up-front membership deposits,
annual dues, and daily usage fees. In return, members and their
guests enjoy the use of first-class private residences, and
receive an array of luxurious services and amenities in certain
exotic vacation destinations in the United States and locations
around the world, including: Abaco, Bahamas; Cabo San Lucas,
Mexico; Nevis, West Indies; Telluride, Colorado; and Jackson
Hole, Wyoming.
Complete Retreats and its debtor-affiliates filed for chapter 11
protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245
through 06-50306). Nicholas H. Mancuso, Esq., Jeffrey K. Daman,
Esq., Joel H. Levitin, Esq., David C. McGrail, Esq., Richard A.
Stieglitz Jr., Esq., at Dechert LLP, are representing the
Debtors in their restructuring efforts. Xroads Solutions Group,
LLC, is the Debtors financial and restructuring advisor. When
the Debtors filed for chapter 11 protection, they listed total
debts of US$308,000,000. (Complete Retreats Bankruptcy News,
Issue No. 8; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)
WINN-DIXIE: Four Parties Want Leesburg & Edgewood Taxes Attached
----------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates want to sell
their Leesburg Outparcel to the State of Florida Department of
Transportation and the Edgewood Outparcel to AJDC LLC or to a
party submitting a higher or better offer.
The Duval County Tax Collector and the Lake County Tax Collector
assert that their liens for ad valorem real estate taxes for
fiscal 2006 and subsequent years are included as permitted
encumbrances attached to the sale of the Leesburg and Edgewood
Outparcels.
Brian T. FitzGerald, Esq., at the Hillsborough County Attorney's
Office, in Tampa, Florida, relates that the 2004 and 2005 ad
valorem real estate taxes for the Edgewood Outparcel are due and
have not been paid. Winn-Dixie Stores, Inc., and its debtor-
affiliates' total amount of outstanding, delinquent 2004 and
2005 ad valorem real estate taxes if paid in September 2006 is
US$23,221.
The full amount of the outstanding real estate taxes, with
statutory interest, should be paid at the closing of the
Edgewood Outparcel sale in accordance with state law and
customary business practice or, alternatively, Duval County's
statutory liens will be attached to the proceeds of the sale,
Mr. FitzGerald states.
Lake County says that the Debtors' real estate taxes are paid
through 2005 on the Leesburg Outparcel. The lien for the 2006
real estate taxes, however, arose on Jan. 1, 2006, and the
liquidated amount of the taxes will not be known until
Nov. 1, 2006.
In addition, the Florida Administrative Code requires that taxes
be paid when property is acquired by any government unit and
requires current taxes to be prorated and placed in escrow with
the Lake County Tax Collector at closing, according to
Mr. FitzGerald.
Since the proposed purchaser of the Leesburg Outparcel is the
Florida Department of Transportation, the Debtors should be
ordered to pay the taxes at closing or the Tax Collector's lien
will be attached to the sale proceeds, Mr. FitzGerald says.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi. The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840). D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 52; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
WINN-DIXIE: Wants to Walk Away from 26 Contracts
------------------------------------------------
Pursuant to Sections 105(a) and 365 of the Bankruptcy Code,
Winn-Dixie Stores Inc. and its debtor-affiliates seek the U.S.
Bankruptcy Court for the Southern District of New York consent
to reject 26 executory contracts and unexpired leases effective
as of Oct. 5, 2006.
The Contracts are for goods and services that are no longer
necessary to the Debtors' businesses. A list of the Contracts
to be rejected can be downloaded free of charge at:
http://bankrupt.com/misc/WDix_RejectedContracts.pdf
By rejecting the Contracts, the Debtors will avoid unnecessary
expenses and burdensome obligations that provide no tangible
benefit to their estates or creditors, Cynthia C. Jackson, Esq.,
at Smith Hulsey & Busey, in Jacksonville, Florida, says.
In addition, the Debtors ask the Court to establish
Oct. 16, 2006, as the deadline for filing of claims arising from
the rejection of the Contracts.
The Debtors believe that several of the Contracts may not be
contracts or leases or be otherwise executory or non-expired,
but have sought to reject them out of an abundance of caution to
obtain certainty as to rejection damages that may be brought.
The Debtors reserve the right to challenge the contractual,
executory or unexpired nature of any of the Contracts.
Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers. The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi. The company
completed in August the sale of its 12 stores in the Bahamas.
The company, along with 23 of its U.S. subsidiaries, filed for
chapter 11 protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No.
05-11063, transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case
Nos. 05-03817 through 05-03840). D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors. Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors. Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee. When the Debtors filed for protection from their
creditors, they listed US$2,235,557,000 in total assets and
US$1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News,
Issue No. 53; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
=============
B E R M U D A
=============
BUTTERFLY MCQUEEN: Proofs of Claim Filing Is Until Oct. 25
----------------------------------------------------------
Butterfly McQueen Ltd.'s creditors are given until
Oct. 25, 2006, to prove their claims to Eva Vestergaard, the
company's liquidator, or be excluded from receiving any
distribution or payment.
Creditors are required to send by the Oct. 25 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Ms. Vestergaard.
A final general meeting will be held at the offices of Mello
Jones & Martin on Nov. 3, 2006, at 10:00 a.m.
Butterfly McQueen's shareholders will determine during the
meeting, through a resolution, the manner in which the books,
accounts and documents of the company and of the liquidator will
be disposed.
Butterfly McQueen's shareholders agreed on Sept. 18, 2006, to
place the company into voluntary liquidation under Bermuda's
Companies Act 1981.
The liquidator can be reached at:
Eva Vestergaard
c/o Thistle House
4 Burnaby Street
Hamilton HM11, Bermuda
LUNDIN SUDAN: Creditors Must File Proofs of Claim by Oct. 5
-----------------------------------------------------------
Lundin Sudan Ltd.'s creditors are given until Oct. 5, 2006, to
prove their claims to Jennifer Y. Fraser, the company's
liquidator, or be excluded from receiving any distribution or
payment.
Creditors are required to send by the Oct. 5 deadline their
full names, addresses, the full particulars of their debts or
claims, and the names and addresses of their lawyers, if any, to
Ms. Fraser.
A final general meeting will be held at the liquidators' place
of business on Oct. 25, 2006, at 9:30 a.m.
Lundin Sudan's shareholders will determine during the meeting,
through a resolution, the manner in which the books, accounts
and documents of the company and of the liquidator will be
disposed.
Lundin Sudan's shareholders agreed on Sept. 15, 2006, to place
the company into voluntary liquidation under Bermuda's Companies
Act 1981.
The liquidator can be reached at:
Jennifer Y. Fraser
Cannon's Court
22 Victoria Street
Hamilton, Bermuda
MUTUAL REINSURANCE: Scheme Administrators Pay Creditors
-------------------------------------------------------
Ian Bond and Chris Hughes, in their capacities as the scheme
administrators of:
-- Kingscroft Insurance Company Ltd.,
-- Walbrook Insurance Company Ltd.,
-- El Paso Insurance Company Ltd.,
-- Lime Street Insurance Company Ltd. and
-- Mutual Reinsurance Company Ltd. (KWELM Companies),
made the increased payments to their creditors on
Sept. 14, 2006.
The increased payment percentages were subject to 100% on
aggregate Scheme and Adjusting Payments under the Scheme of
Arrangement
The scheme administrators will pay the interest to the Scheme
Creditors of Walbrook and El Paso in October.
Revised Payment Percentages
Substantive Closure Revised Payment
Distribution Percentage
Percentage
(Dec. 15, 2005) (Sept. 14, 2006)
Kingscroft 81% 83%
Walbrook 100% 100%
El Paso 95% 100%
Lime Street 83% 86%
Mutual 72% 74%
Inquiries can be addressed to:
KWELM Companies
c/o KMS Insurance Management Limited
America House
2 America Square
London EC3N 2LU
Tel: +44 (0) 20 7488 5488
Fax: +44 (0) 20 7488 5478
E-mail: scheme.administrator@kwelm.com
Web: http://www.kwelm.com/
The five companies known collectively as KWELM are insurance
companies incorporated in England (other than Mutual, which is
incorporated in Bermuda).
Kingscroft Insurance Co. Ltd., (formerly Kraft Insurance Co.
Ltd., and Kraft Insurance Co. Ltd. and Dart Insurance Co. Ltd.),
Walbrook Insurance Co. Ltd., El Paso Insurance Co. Ltd., Lime
Street Insurance Co. Ltd. (formerly Louisville Insurance Co.
Ltd.), and Mutual Reinsurance Co. Ltd. were subsidiaries of the
insolvent London United Investments Plc (in Administration),
carrying on business principally through HS Weavers
(Underwriting) Agencies Limited and CR Driver & Co. Ltd.
The KWELM companies used to underwrite U.S. Casualty,
Professional Indemnity and other liability business from as
early as 1972. They are no longer authorized to underwrite any
Insurance business.
The companies has been declared insolvent, having insufficient
assets to meet all its liabilities, including estimated future
claims in 1992.
===========
B R A Z I L
===========
AMRO REAL: Unit Seeks Regulatory Approval on Debenture Issuance
---------------------------------------------------------------
ABN Amro Real's leasing unit has sought the permission of
Comissao de Valores Mobiliarios -- Brazil's securities regulator
-- on the issuance of BRL4.10 billion in debentures, Business
News Americas reports.
BNamericas says that Amro Real will handle the issue.
The report says that the debt to be sold comes from:
-- six electricity firms,
-- Gol Linhas Aereas,
-- Gafisa, and
-- Braskem.
ABN AMRO is an international bank with European roots. It
focuses on consumer and commercial clients in local markets and
focus globally on select multinational corporations and
financial institutions, as well as private clients. As an
international bank, it has more than 4,500 branches in 53
countries. In South America, ABN has branches in: Argentina,
Brazil, Chile, Colombia, Ecuador, Paraguay, Uruguay and
Venezuela.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept 4, 2006, Moody's Investors Service upgraded Banco ABN AMRO
Real S.A.'s long-term foreign currency deposits to Ba3, from B1.
The rating outlook is stable.
BANCO NACIONAL: Grants BRL93-Million Financing to Energy Sector
---------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social aka BNDES
approved two financing operations under the Program for Support
to Electric Energy Transmission Public Service Concessionaries.
The total value of the financings is BRL93.2 million, of which
BRL48.4 million is allocated to Companhia Transudeste de
Transmissao and BRL44.8 million is for Companhia Transirape de
Transmissao, which are both located in the State of Minas
Gerais.
Companhia Transudeste's project, with a total investment of
BRL77.9 million, aims to implement and operate a transmission
line that interlinks the substations of Itutinga, which is owned
by Furnas, and Juiz de Fora, owned by Cemig, at the southeast
region of the State of Minas Gerais. The line will have an
extension of about 140 kilometers and will transport energy
under a tension of 345 kV.
The project will generate 700 direct jobs at the work's peak and
45 permanent jobs during the operation phase.
Companhia Transirape's project, with a total investment of
BRL64.8 million, aims to implement the Aracuai 2 substation,
which will expand the Irape substation and calls for the
construction of a 230 kV transmission line with an extension of
about 65 kilometers. The Aracuai 2 and Irape substations will
be interlinked through the Municipalities of Berilo, Virgem da
Lapa and Aracuai, in Vale do Jequitinhonha, northeast region of
the State of Minas Gerais.
During the phase of construction, about 600 direct and indirect
jobs will be generated. At the operating phase, the project
should require 40 direct and indirect jobs.
The two projects are complementary and have as a main social-
economic impact an improvement to the energetic infrastructure
of the regions supplied, which will contribute to the
development of new endeavors and, consequently, to an increase
in the offer of jobs and in living conditions of the population.
Companhia Transudeste de Transmissao and Companhia Transirape de
Transmissao are Specific Purpose Enterprises or SPEs composed
of:
-- Companhia Tecnica de Engenharia Eletrica aka Alusa,
-- Furnas Centrais Eletricas,
-- Companhia Energetica de Minas Gerais aka Cemig and
-- Orteng Equipamentos e Sistemas Ltda.
* * *
As reported in the Troubled Company Reporter on March 3, 2006,
Standard & Poor's Ratings Services raised its foreign currency
counterparty credit rating on Banco Nacional de Desenvolvimento
Economico e Social S.A. aka BNDES to 'BB' with a stable outlook
from 'BB-' with a positive outlook. The company's local
currency credit rating was also shifted to 'BB+' with a stable
outlook from 'BB' with a positive outlook.
BRASKEM SA: Fitch Rates Proposed US$275 Million Sr. Notes at BB+
----------------------------------------------------------------
Fitch assigned a rating of 'BB+' to Braskem S.A.'s proposed
issuance of US$275 million senior unsecured notes due 2017. The
notes are being offered under Rule 144A Regulation S. The
proceeds of the offering are expected to be used to prepay
existing debts and extend debt maturities.
Fitch also maintained foreign currency and local currency Issuer
Default Ratings of 'BB+' and a national scale rating of
'AA(bra)' for Braskem. The Rating Outlook is Stable.
Braskem's ratings are supported by:
* the company's moderate leverage;
* strong liquidity and debt composition; and
* solid but highly volatility operating cash flow.
Braskem also benefits from its leadership position in the
petrochemical industry in Latin America and Brazil.
The integration of its first and second-generation activities
provides the company with a competitive advantage within the
Brazilian petrochemical industry and has allowed Braskem to
achieve substantial synergies and lower costs.
In addition, growing sales volumes and a strong pricing
environment has enabled the company to lower debt leverage and
increase liquidity over the last several years.
Braskem is exposed to volatile naphtha prices, which are linked
to the price of a barrel of oil, and represent one of the
company's largest cost components. Fluctuations in the price of
oil and naphtha may directly impact Braskem's profitability and
sales volumes given the difficulties of passing on price
increases along the petrochemical chain in the international
markets.
In the first half of 2006, Braskem's financial performance was
negatively affected as a result of increasing feedstock
(naphtha) costs that have significantly weakened credit
protection measures to the weaker end of the category. During
the first half of 2006, Braskem reported a 50% reduction in
EBITDA and resulted in leverage measured by Gross Debt/EBITDA of
4.0x versus 2.4x in 2005 and 2.2 x in 2004, while Net
Debt/EBITDA was 3.0x at June 30, 2006, compared to 1.4x in 2005
and 1.5x in 2004.
Over the last several years, Braskem's credit protection
measures had shown significant improvement, which should enable
Braskem to operate satisfactorily during this challenging
period.
Additionally, Fitch expects that Braskem will maintain adequate
liquidity, which should limit its exposure to refinancing risk,
and that in 2007 the company should improve leverage to levels
more consistent with historical levels. Financial performance
is expected to remain under pressure under the remainder of the
year.
The Brazilian petrochemical industry began experiencing pressure
in the fourth quarter of 2005 due to:
* increasing naphtha prices;
* a larger additional supply of polyethylene from the
entrance of a new player in the domestic market;
* limited ability to pass on prices within the chain, which
pressures margins; and
* appreciation of the local currency, which negatively
influenced the sector's revenues and exports.
The average price of naphtha increased 31% in H106 (US$570.00
per ton) compared with the same period in 2005 (US$436.00 per
ton).
In addition, the entrance into the market of a new producer with
a high polyethylene capacity contributed to make the passing on
of greater price increases more difficult.
As of June 30, 2006, Braskem had BRL5.9 billion (US$2.7 billion)
in total debt and BRL1.3 billion (US$621 million) in cash and
financial investments.
During the first half of 2006, the company generated an EBITDA
of BRL670 million, including BRL112 million of non-recurring
income, a sharp reduction compared with the BRL1.3 billion
EBITDA registered in the first half of 2005.
The company's free cash flow in this period was also
significantly affected due to its weak performance and
registered a negative value of BRL1billion. Cash flow was
affected by smaller business margins:
* by an increase in the need for working capital (BRL444
million) due to increased exports, by the acquisition of
shares in Politeno (BRL238 million);
* by the greater acquisition of naphtha in the local market;
and
* by the disbursement of dividends (BRL363 million).
Free cash flow is expected to improve in second half of 2006 due
to a decline in exports, a reduction in the volume of
investments in 2006 from BRL900 million to BRL750 million.
Over the next quarters, Braskem's credit profile will come under
pressure due to the increase in its leveraging and the
challenging scenario that the petrochemical industry should face
in 2006 and 2007. Braskem is concluding studies to realize
investments in a new petrochemical complex in Venezuela. The
project, in partnership with Pequiven, could involve new risks
for Braskem, depending on the volume of resources required by
the project.
Braskem is the largest petrochemical company in Latin America,
producing 6 million tons of primary, secondary and intermediary
petrochemical products, with an integrated production of first
and second-generation petrochemicals. The company has grown in
the past four years due to the integration of six Brazilian
petrochemical companies:
* Copene Petroquimica do Nordeste S.A.,
* OPP Quimica S.A.,
* Polialden Petroquimica S.A.,
* Trikem S.A.,
* Proppet S.A., and
* Nitrocarbono S.A.
At present the company is organized into four business units:
basic inputs, polyolefins, vinyls and business development.
Braskem is controlled by the Odebrecht Group and Norquisa, which
have 47.5% and 25.4%, respectively, of its voting capital.
BERTIN LTDA: S&P Rates US$150 Mil. Senior Unsecured Notes at B+
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' senior
unsecured debt rating to Brazil-based meat processing company
Bertin Ltda.'s proposed US$150 million, 10-year senior unsecured
notes to be issued under Rule 144A.
The proceeds will be used to refinance short-term debt
maturities, to fund capital expenditures, and for other general
corporate purposes. At June 30, 2006, the company had US$918
million of total debt outstanding (net debt of US$526 million).
"Bertin's initiative to use long-term debt instruments to fund
its growth plans partly mitigates the risks associated with the
company's currently highly leveraged capital structure," noted
Standard & Poor's credit analyst Jean-Pierre Cote Gil. "This
provides appropriate time for the cash flows of its investments
to materialize."
Bertin has been able to report growing funds from operations in
the past few quarters, supported by its enlarged capacity and
stronger operating margins. Nevertheless, that has been
practically offset by the significant increase in debt levels
associated with its growing capital expenditure and working
capital requirements.
Bertin's high cash balances serve as a liquidity cushion for
potential market volatility (cash balances of US$392 million
compared to short-term debt of US$432 million at June 2006), and
for potential acquisition opportunities in Brazil and in other
Latin American countries. The company is under negotiations to
acquire Frigor¡fico Canelones, a slaughterhouse located in
Uruguay (the deal is still subject to a due diligence process)
and is actively seeking new opportunities to develop its product
portfolio and geographic diversification. In addition, Bertin
has invested sizable amounts in the expansion and improvement of
its plants in Brazil, with investments of some US$110 million in
the first six months of 2006 (expectation of some US$200 million
for the full year).
CHEMTURA CORP: Increasing Epoxy Soybean Oil Capacity by 15%
----------------------------------------------------------
Chemtura Corp. will increase capacity for epoxy plasticizers by
15% at its Taft, Louisiana, manufacturing facility, beginning
January 2007.
"Chemtura has been servicing the vinyl industry for more than 50
years, and we are committed to grow with our customers into the
future. This new capacity means that Chemtura will be even
better positioned to supply customers, especially those needing
epoxidized soybean oil for production of flexible PVC," said
Diana Peninger, Global Business Director -- Vinyl Additives.
Chemtura is a leading global producer of vinyl additives, with a
broad portfolio of plasticizers; lubricants for PVC; UV
absorbers; organotin, mixed-metal, phosphite and organic-based
heat stabilizers; antistatic agents; blowing agents; impact
agents and flame retardants.
About Chemtura Corp.
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection and pool, spa and home care products. The Company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries. In Latin America, Chemtura
has facilities in Brazil and Mexico.
* * *
As reported in the Troubled Company Reporter on April 21, 2006,
Moody's Investors Service assigned a Ba1 rating to Chemtura
Corp.'s US$400 million of senior notes due 2016 and affirmed
the Ba1 ratings for its other debt and the corporate family
rating.
As reported in the Troubled Company Reporter on April 21, 2006,
Standard & Poor's Ratings Services assigned its 'BB+' senior
unsecured debt rating to Chemtura Corp.'s US$400 million notes
due 2016. Standard & Poor's affirmed Chemtura's 'BB+' long-term
corporate credit rating. The outlook remains positive.
CHEMTURA CORP: Increasing Fatty Acid Prices by US$0.02 Per Pound
----------------------------------------------------------------
As a result of increasing costs and declining by-product
glycerin prices, effective Oct. 15, 2006, or as contracts
permit, Chemtura Corp. will increase all Fatty Acid prices by
US$0.02/lb. Prices for Fatty Acid powder grades will be
increased an additional US$0.03/lb.
About Chemtura Corp.
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection and pool, spa and home care products. The Company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries. In Latin America, Chemtura
has facilities in Brazil and Mexico.
* * *
As reported in the Troubled Company Reporter on April 21, 2006,
Moody's Investors Service assigned a Ba1 rating to Chemtura
Corp.'s US$400 million of senior notes due 2016 and affirmed
the Ba1 ratings for its other debt and the corporate family
rating.
As reported in the Troubled Company Reporter on April 21, 2006,
Standard & Poor's Ratings Services assigned its 'BB+' senior
unsecured debt rating to Chemtura Corp.'s US$400 million notes
due 2016. Standard & Poor's affirmed Chemtura's 'BB+' long-term
corporate credit rating. The outlook remains positive.
CHEMTURA CORP: Names Janet Chetland as Business Director
--------------------------------------------------------
Chemtura Corp. has appointed Janet Chetland as its Business
Director, Phosphorous Flame Retardants.
Dr. Chetland will have responsibility for leadership and
strategic direction of the Phosphorous Flame Retardant business
team, from offices in Trafford Park, U.K.
Dr. Chetland brings extensive technical and business experience
to her new role. She has been serving as Chemtura's Product
Manager for Phosphorous Flame Retardants. Dr. Chetland began
her career in the laboratories at Associated Octel; when that
company was purchased by Great Lakes Chemical Corporation (now
Chemtura), she joined its Brominated Performance Products
business, serving as Product Manager for Bromine Derivatives;
European Marketing Manager; Bromine & Intermediates Business
Manager; and Product Manager, EMEA/ROW.
Dr. Chetland holds a joint honors degree in Chemistry and
Physiology from Salford University and a Ph.D. in Chemistry from
Liverpool University.
About Chemtura Corp.
Headquartered in Middlebury, Connecticut, Chemtura Corp.
(NYSE: CEM) -- http://www.chemtura.com/-- is a global
manufacturer and marketer of specialty chemicals, crop
protection and pool, spa and home care products. The Company
has approximately 6,400 employees around the world and sells its
products in more than 100 countries. In Latin America, Chemtura
has facilities in Brazil and Mexico.
* * *
As reported in the Troubled Company Reporter on April 21, 2006,
Moody's Investors Service assigned a Ba1 rating to Chemtura
Corp.'s US$400 million of senior notes due 2016 and affirmed
the Ba1 ratings for its other debt and the corporate family
rating.
As reported in the Troubled Company Reporter on April 21, 2006,
Standard & Poor's Ratings Services assigned its 'BB+' senior
unsecured debt rating to Chemtura Corp.'s US$400 million notes
due 2016. Standard & Poor's affirmed Chemtura's 'BB+' long-term
corporate credit rating. The outlook remains positive.
DURA AUTOMOTIVE: Receives Nasdaq Notice of Price Non-Compliance
---------------------------------------------------------------
Dura Automotive Systems, Inc., has received a letter from The
Nasdaq Stock Market notifying the company that, for 30
consecutive business days, the bid price of the company's Class
A common stock closed below the minimum US$1.00 per share
requirement for continued inclusion under Nasdaq Marketplace
Rule 4450(b)(4).
Dura Automotive has 180 days to regain compliance with the
Nasdaq's Global Market US$1.00 minimum bid price rule. If at
any time before March 12, 2007, the bid price of the company's
common stock closes at US$1.00 per share or more for a minimum
of 10 consecutive business days, Nasdaq may notify the company
that it is in compliance with the Rule. However, Nasdaq has the
discretion to require a period in excess of 10 business days
before determining that the ability to maintain long-term
compliance has been demonstrated. If the company does not
regain compliance by March 12, 2007, and it meets the Nasdaq
Capital Market initial inclusion requirements except for bid
price, it may apply to transfer from the Nasdaq Global Market to
the Nasdaq Capital Market. If the Nasdaq Capital Market
application is approved, pursuant to Nasdaq Capital Market rules
the company would be granted an additional 180-day period to
regain compliance with the minimum bid price requirement.
Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies,
structural door modules and exterior trim systems for the global
automotive and recreation & specialty vehicle industries. DURA,
which operates in 63 locations, sells its products to every
major North American, Asian and European automotive original
equipment manufacturer and many leading Tier 1 automotive
suppliers. It currently operates in 63 locations including
joint venture companies and customer service centers in 14
countries including Brazil.
* * *
As reported in the Troubled Company Reporter on Aug. 1, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'. The
rating outlook is negative.
As reported in the Troubled Company Reporter-Latin America on
Sept. 25, 2006, Moody's Investors Service lowered the ratings of
Dura Operating Corporation, and its direct parent, Dura
Automotive Systems, Inc. Dura Automotive's Corporate Family
Rating has been lowered to Ca from Caa1. Moody's also assigned
a probability of default rating of Caa3 to Dura Automotive.
Dura Operating Corp.'s senior secured second lien ratings were
lowered to Caa2 (LGD 3, 35%) from Caa1, the senior unsecured
notes were lowered to Ca (LGD 4, 61%) from Caa3; and the senior
subordinated notes were lowered to C (LGD 6, 92%) from Ca. Dura
Automotive Systems Capital Trust's preferred securities also
were lowered to C (LGD 6, 98%) from Ca.
The lowered ratings reflect the company's ongoing operating
pressures in the automotive supplier sector, which have recently
been exacerbated by the announcement of additional production
declines in the second half of 2006.
ELETROPAULO METROPOLITANA: S&P Puts B+ Ratings on Positive Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B+' corporate
credit rating on Brazil-based Eletropaulo Metropolitana
Eletricidade de Sao Paulo and its 'B+' issue rating on
Eletropaulo's US$200 million bonds on CreditWatch with positive
implications.
Underpinning this action are the recent extension of the
amortization schedule on Eletropaulo's pension fund debts
(equivalent to roughly 45% of the company's total debt) and the
deleveraging that will take place on Eletropaulo's holding
company Brasiliana Energia S.A., which will use the proceeds
from Eletropaulo's secondary share offer (BrR1.17 billion) to
prepay debts with Banco Nacional de Desenvolvimento Economico e
Social aka BNDES.
"Those two factors will result in reduced debt amortization
requirement for Eletropaulo through 2008, will smoothen out the
company's dividend upstream pressure to Brasiliana, and will
reduce the group's overall foreign currency exposure, since
Brasiliana's debt with BNDES is in U.S. dollars," said Standard
& Poor's credit analyst Marcelo Costa.
The CreditWatch listing indicates that the ratings on
Eletropaulo may be raised to 'BB-' within three months,
depending on how much those two factors positively affect the
company's cash generation prospects, coupled with its continuing
efforts to extend debt amortizations and cost of debt. Most
important, a potential upgrade will take into consideration
Brasiliana's strategy regarding dividend upstream to ultimate
shareholders, and capital structure and overall financial policy
established for Eletropaulo.
LAZARD LTD: Names Georges Ralli as Chief Executive Officer
----------------------------------------------------------
Lazard Ltd. reported that Georges Ralli has been named Chief
Executive and William Rucker, Deputy Chief Executive, of
Lazard's European investment banking business, effective
immediately.
"Georges is the right leader, and this is the right team, to
accelerate our growth in Europe," said Bruce Wasserstein,
Chairman and Chief Executive Officer of Lazard. "With these
important steps, we integrate our European investment banking
business under clear leadership, and advance the next generation
of management."
Senior management of Lazard Europe will include Mr. Ralli, Mr.
Rucker, Bruno Roger and Jeffrey Rosen. In addition, Erik Maris,
Matthieu Pigasse and Antonio Weiss have been appointed as Vice
Chairmen of Lazard European Investment Banking, with senior
management responsibilities in Europe.
"We have made great progress since our announcement last year of
plans to reorganize and unify our European investment banking
business, based on clients and our expertise," said Mr. Ralli.
"This reinforces Lazard's ability to conduct business as one
firm throughout Europe."
Mr. Ralli will continue as Chief Executive of Lazard Paris and
Mr. Rucker will continue as Chief Executive of Lazard London.
Mr. Bruno Roger also is Chairman of Global Investment Banking
for Lazard and Chairman of Lazard Paris. Mr. Rosen is a Deputy
Chairman of Lazard.
"I'm delighted to be working with Georges to build on our
success to date across Europe, while continuing to lead London,"
said Mr. Rucker. "Lazard is distinct in its ability to offer
our clients premier advice through the combination of industry
knowledge, local intelligence and geographic reach."
Lazard Ltd. -- http://www.lazard.com/-- one of the world's
preeminent financial advisory and asset management firms,
operates from 29 cities across 16 countries in North America,
Europe, Asia, Australia and Brazil. With origins dating back to
1848, the firm provides services including mergers and
acquisitions advice, asset management, and restructuring advice
to corporations, partnerships, institutions, governments, and
individuals.
* * *
At June 30, 2006, Lazard's balance sheet showed US$2.1 billion
in total assets and US$2.8 billion in total liabilities,
resulting in US$745 million stockholders' deficit.
NOVELIS INC: 2006 First Quarter Financials Filing Cures Default
---------------------------------------------------------------
Novelis Inc. filed its financial results for the first quarter
ended March 31, 2006, with the U.S. Securities and Exchange
Commission on Sept. 15, 2006.
At March 31, 2006, Novelis's balance sheet showed US$5.743
million in total assets, US$5.210 million in total liabilities,
US$150,000 in minority interests, and US$383,000 in total
shareholders' equity.
Through strong operating cash flows, the Company reduced its
debt by US$103 million during the first quarter, which was in
excess of its principal payment obligations. Cash and cash
equivalents at March 31, 2006, were US$124 million compared with
US$100 million at the end of 2005.
While Novelis generated positive cash flow during the quarter,
it incurred a net loss of US$74 million on sales of US$2.3
billion compared with the first quarter of 2005 when it reported
net income of US$22 million on sales of US$2.1 billion. Total
rolled product shipments increased to 741 kilotonnes (kt) from
713 kt in the first quarter of 2005, an increase of
approximately 4%.
Included in the net loss for the first quarter of 2006 is
US$102 million of income tax expense. Significant tax expense
items in the quarter include:
-- a US$33 million increase in valuation allowances primarily
related to tax losses in certain jurisdictions where the
Company believes, based on current facts and
circumstances, it is more likely than not that it will not
be able to utilize those losses;
-- US$13 million of exchange translation and re-measurement
items; and
-- US$44 million due to foreign tax rate differences
resulting from the application of an estimated annual
effective tax rate to profit and loss entities.
Of the US$102 million of tax expense for the quarter,
approximately US$10 million is current tax expense. Cash taxes
paid during the first quarter of 2006 were US$12 million.
"We have incurred significant deferred tax expense during our
first five quarters as a public company," Chief Financial
Officer Rick Dobson said. "While we expect our tax expense to
decline by year-end, we are taking proactive tax planning
actions to develop the most efficient tax structure for the
Company."
Mr. Dobson added that Novelis plans to host an investor
conference call on Friday, September 29, in which the Company
will provide earnings and cash flow guidance for 2006 and 2007.
Earnings before income taxes in the first quarter of 2006 were
US$28 million, compared with US$57 million for the year-earlier
period. The 2006 pre-tax earnings were negatively impacted by a
number of items, including higher metal prices that the Company
was unable to pass through to certain customers as a result of
metal price ceilings, higher energy and transportation costs,
the adverse effects of currency exchange rates, and expenses
related to the Company's restatement and review process and
delayed financial reporting.
As a result of metal price ceilings on a portion of the
Company's can sheet sales in North America, Novelis was unable
to pass on approximately US$95 million of metal price increases
in the first quarter. This was partially offset by the positive
change in the fair market value of derivatives purchased to
hedge this risk.
"Novelis business operations remain strong," William T. Monahan,
chairman and interim chief executive officer, said, "and we
continue to generate solid cash flow as we remain focused on
debt reduction, efficient use of our global assets, and
investments to upgrade our product portfolio. We also continue
to work toward removing the remaining price ceilings."
Filing Cures Default
Under the indenture governing the Novelis's Senior Notes,
Novelis is required to deliver to the trustee a copy of its
periodic reports filed with the U.S. Securities and Exchange
Commission within the time periods specified by SEC rules.
Novelis received an effective notice of default on
July 21, 2006, from the trustee with respect to its 2005 Annual
Report and its 2006 first quarter financial statements. The
notice required the Company to file the financial report by
Sept. 19, 2006. By filing the Form 10-Q for the first quarter
of 2006, the Company has cured this default.
Novelis also received an effective notice of default from the
trustee on Aug. 24, 2006, with respect to its Form 10-Q for the
second quarter of 2006, and is required to file this report by
Oct. 23, 2006. The Company expects to file its Form 10-Q for
the second quarter before the deadline and to be current with
its filings after it files its third-quarter report during the
fourth quarter of the year.
"We have made progress in improving the quality of our financial
reporting process and we expect this progress to continue
through the balance of the year as we work toward becoming
current with our SEC filings," Mr. Monahan stated.
About Novelis Inc.
Based in Atlanta, Georgia, Novelis, Inc., (NYSE: NVL) (TSX: NVL)
-- http://www.novelis.com/-- provides customers with a regional
supply of technologically sophisticated rolled aluminum products
throughout Asia, Europe, North America, and South America. The
company operates in 11 countries and has approximately 13,000
employees. Through its advanced production capabilities, the
company supplies aluminum sheet and foil to the automotive and
transportation, beverage and food packaging, construction and
industrial, and printing markets.
Novelis South America operates two rolling plants and primary
production facilities in Brazil. The company's Pindamonhangaba
rolling and recycling facility in Brazil is the largest aluminum
rolling and recycling facility in South America and the only one
capable of producing can body and end stock. The plant recycles
primarily used beverage cans, and is engaged in tolling recycled
metal for its customers.
Full-text copies of the Company's first quarter financials are
available for free at http://ResearchArchives.com/t/s?1221
* * *
As reported in the Troubled Company Reporter on Sept. 7, 2006,
Moody's Investors Service downgraded Novelis Inc.'s corporate
family rating to B1 from Ba3, the bank revolver rating to Ba3
from Ba2, the bank term loan rating to Ba3 from Ba2, and senior
unsecured notes to B2 from B1. Moody's also downgraded Novelis
Corp.'s bank term loan rating to Ba3 from Ba2.
PETROLEO BRASILEIRO: Says Price Talks with Bolivia Going Well
-------------------------------------------------------------
Milton Costa Filho, Petroleo Brasileiro SA's general manager in
Mexico told Bloomberg News that oil price negotiations with
Bolivia are "moving in the right direction."
The two parties concluded last week the fifth round of talks
concerning the price of Bolivia's gas exports. The Andean
nation demands doubling the price of the gas it supplies to
Brazil, while the latter insists on following the terms of their
old agreement.
"I think we will find a solution that is good for the company
and the country," Mr. Costa Filho told Bloomberg. "I don't know
when talks will be concluded but they are moving in the right
direction."
The neighboring countries' relations almost reached crisis-point
over a Sept. 12 decree that should have stripped the Brazilian
firm of its Bolivian assets. The decree was later suspended to
give way for talks, which resulted to the sacking of Andrez
Solis, Bolivia's former hydrocarbons minister, The Financial
Times reports.
"I've told President Evo Morales: You can't hang a sword over
Brazil's head because you have gas, or we'll also hang a sword
over your head because we are the ones who buy the gas,"
Brazilian President Inacio Lula da Silva said in an interview on
TV Globo.
The two parties will meet again on Sept. 29 in Santa Cruz de la
Sierra in Bolivia.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953. The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in the country.
* * *
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
* * *
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
===========================
C A Y M A N I S L A N D S
===========================
ARES TOTAL: Final Shareholders Meeting Scheduled for Oct. 6
-----------------------------------------------------------
Ares Total Value (Cayman) Feeder Fund, Ltd.'s final shareholders
meeting will be at 10:00 a.m. on Oct. 6, 2006, at:
Kroll (Cayman) Limited
4th Floor, Bermuda House
Dr. Roy's Drive
Grand Cayman, Cayman Islands
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidator can be reached at:
Gordon I. Macrae
Attention: Korie Drummond
Kroll (Cayman) Limited
4th Floor, Bermuda House
Dr. Roy's Drive
Grand Cayman, Cayman Islands
Tel: (345) 946-0081
Fax: (345) 946-0082
KENMAR-NIHON EQUITY: Final Shareholders Meeting Set for Oct. 6
--------------------------------------------------------------
Kenmar-Nihon Equity Holdings Ltd.'s final shareholders meeting
will be at 1:30 p.m. on Oct. 6, 2006, at the company's
registered office.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
P.O. Box 908, George Town
Grand Cayman, Cayman Islands
KENMAR-NIHON (FUND): Last Shareholders Meeting Is Set for Oct. 6
----------------------------------------------------------------
Kenmar-Nihon Premier Managers Fund I Ltd.'s final shareholders
meeting will be at 1:00 p.m. on Oct. 6, 2006, at the company's
registered office.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
P.O. Box 908, George Town
Grand Cayman, Cayman Islands
KENMAR-NIHON (SERIES): Final Shareholders Meeting Is on Oct. 6
--------------------------------------------------------------
Kenmar-Nihon Premier Managers Series SPC's final shareholders
meeting will be at 12:30 p.m. on Oct. 6, 2006, at the company's
registered office.
These agendas will be taken during the meeting:
1) accounting of the liquidation process showing how the
winding up has been conducted during the preceding year,
2) requesting the members' approval of the liquidation fees
incurred to date, approval of the liquidator's estimated
costs to completion, and
3) hearing any explanation that may be given by the
liquidator.
A member entitled to attend and vote at the meeting may appoint
a proxy, who need not be a member, in his stead.
The liquidators can be reached at:
John Cullinane
Derrie Boggess
c/o Walkers SPV Limited
Walker House
P.O. Box 908, George Town
Grand Cayman, Cayman Islands
KRAKOW LEASING: Liquidator Presents Wind Up Accounts on Oct. 6
--------------------------------------------------------------
Krakow Leasing Limited's shareholders will convene for a final
meeting on Oct. 6, 2006, at:
Deutsche Bank (Cayman) Limited
Elizabethan Square, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidators can be reached at:
David Dyer
P.O. Box 1984, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949 8244
Fax: (345) 949 5223
LOT LEASING: Shareholders Gather for a Final Meeting on Oct. 6
--------------------------------------------------------------
Lot Leasing Limited's shareholders will convene for a final
meeting on Oct. 6, 2006, at:
Deutsche Bank (Cayman) Limited
Elizabethan Square, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidators can be reached at:
David Dyer
P.O. Box 1984, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949 8244
Fax: (345) 949 5223
MARINE OPERATOR: Last Day to File Proofs of Claim Is on Oct. 9
--------------------------------------------------------------
Marine Operator Two Ltd.'s creditors are required to submit
proofs of claim by Oct. 9, 2006, to the company's liquidator:
David A. Bodden
c/o M&C Corporate Services Limited
P.O. Box 309, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Oct. 9 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Marine Operator's shareholders agreed on Aug. 31, 2006, for the
company's voluntary liquidation under Section 135 of the
Companies Law (2004 Revision) of the Cayman Islands.
MARYLEBONE ROAD: Sets Final Shareholders Meeting on Oct. 6
----------------------------------------------------------
Marylebone Road CBO I Ltd.'s shareholders will convene for a
final meeting on Oct. 6, 2006, at:
Deutsche Bank (Cayman) Limited
Elizabethan Square, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidators can be reached at:
David Dyer
P.O. Box 1984, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949 8244
Fax: (345) 949 5223
ORICO MILLENNIUM: Proofs of Claim Filing Deadline Is on Oct. 9
--------------------------------------------------------------
Orico Millennium Funding Corp.'s creditors are required to
submit proofs of claim by Oct. 9, 2006, to the company's
liquidator:
Griffin Management Limited
Caledonian Bank & Trust Limited
Caledonian House, 69 Dr. Roy's Drive
P.O. Box 1043, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Oct. 9 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Orico Millenium's shareholders agreed on Sept. 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:
Janeen Aljadir
Caledonian Bank & Trust Limited
Caledonian House, 69 Dr. Roy's Drive
P.O. Box 1043, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914 4943
Fax: (345) 949 8062
PASADENA CDO: Calls Shareholders for a Final Meeting on Oct. 6
--------------------------------------------------------------
Pasadena CDO Pass Through Notes Ltd.'s shareholders will convene
for a final meeting on Oct. 6, 2006, at:
Deutsche Bank (Cayman) Limited
Elizabethan Square, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidators can be reached at:
David Dyer
P.O. Box 1984, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949 8244
Fax: (345) 949 5223
TARNOW LEASING: Calls Shareholders for a Last Meeting on Oct. 6
---------------------------------------------------------------
Tarnow Leasing Inc.'s shareholders will convene for a final
meeting on Oct. 6, 2006, at:
Deutsche Bank (Cayman) Limited
Elizabethan Square, George Town
Grand Cayman, Cayman Islands
Accounts on the company's liquidation process will be presented
during the meeting.
The liquidators can be reached at:
David Dyer
P.O. Box 1984, George Town
Grand Cayman, Cayman Islands
Tel: (345) 949 8244
Fax: (345) 949 5223
TEXEL FIXED (HEDGE): Proofs of Claim Filing Is Until Oct. 10
------------------------------------------------------------
Texel Fixed Income Hedge Fund Limited's creditors are required
to submit proofs of claim by Oct. 10, 2006, to the company's
liquidator:
David A. K. Walker
Lawrence Edwards
PricewaterhouseCoopers
Strathvale House, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Oct. 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.
Texel Fixed's shareholders agreed on Aug. 30, 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:
Aysha Jackson
P.O. Box 258, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914 8695
Fax: (345) 949 4590
TEXEL FIXED (MASTER): Proofs of Claim Must be Filed by Oct. 10
--------------------------------------------------------------
Texel Fixed Income Master Fund Limited's creditors are required
to submit proofs of claim by Oct. 10, 2006, to the company's
liquidator:
David A. K. Walker
Lawrence Edwards
PricewaterhouseCoopers
Strathvale House, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Oct. 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.
Texel Fixed's shareholders agreed on Aug. 30, 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:
Aysha Jackson
P.O. Box 258, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914 8695
Fax: (345) 949 4590
WHARTON ASIAN: Shareholders Vote to Liquidate Business
------------------------------------------------------
Wharton Asian Equity Linked Co. Ltd.'s shareholders decided on
Aug. 31, 2006, to place the company in voluntary liquidation
under the Companies Law (2004 Revision) of the Cayman Islands.
David Post was appointed as liquidator to facilitate the winding
up of Wharton Asian's business.
The liquidator can be reached at:
David Post
Wharton Investment Advisors Limited
Suite 38-39, Level 3
Three Pacific Place, 1 Queen's Road East
Hong Kong
WINDHOEK AVIATION: Creditors Must File Proofs of Claim by Oct. 9
----------------------------------------------------------------
Windhoek Aviation, Ltd.'s creditors are required to submit
proofs of claim by Oct. 9, 2006, to the company's liquidator:
Griffin Management Limited
Caledonian Bank & Trust Limited
Caledonian House, 69 Dr. Roy's Drive
P.O. Box 1043, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Oct. 9 deadline
won't receive any distribution that the liquidator will make.
Creditors are required to present proofs of claim personally or
through their solicitors.
Windhoek Aviation's shareholders agreed on Sept. 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:
Janeen Aljadir
Caledonian Bank & Trust Limited
Caledonian House, 69 Dr. Roy's Drive
P.O. Box 1043, George Town
Grand Cayman, Cayman Islands
Tel: (345) 914 4943
Fax: (345) 949 8062
===============
C O L O M B I A
===============
BANCO DEL CAFE: Government Sells 1% Stake for COP10.05 Billion
--------------------------------------------------------------
Andres Florez -- the president of Fogafin, a government
institution that insures bank deposits -- told Dow Jones
Newswires that it sold a 1% stake of state-run Banco del Cafe
aka Bancafe.
Dow Jones relates that Mr. Florez said the stake was sold to:
-- current Bancafe employees,
-- former workers of Bancafe, and
-- privately-owned Colombian pension funds.
Mr. Florez told Dow Jones, "The purchase from these social
groups came in much higher than expected as pension funds,
former workers bought everything they could."
The local unit of pension fund Skandia Forsakrings AB and the
finance and health cooperative Coomeva each purchased COP3
billion worth of Bancafe's shares, Dow Jones says, citing Mr.
Florez.
Dow Jones underscores that the government, as stated in the
Colombian privatization rules, had to give a first option to:
-- labor unions,
-- cooperative associations,
-- privately-owned pension funds, and
-- employees.
The private investors would then be given the chance to purchase
Bancafe shares, Dow Jones notes. The government will auction
the remainder of Bancafe for a minimum price of COP1.097
trillion on Oct. 12.
Dow Jones emphasizes that Mr. Florez said that eight banks paid
a US$20,000 fee for Bancafe's financial information.
"These include local banks, foreign banks that are currently
here and some that haven't arrived yet," Mr. Florez told Dow
Jones.
Dow Jones reports that these banks are considering participating
in the Bancafe auction:
-- Banco Santander Central Hispano SA,
-- Banco Davivienda,
-- Bancolombia, and
-- Banco Colpatria Red Multibanca SA.
Meanwhile, HSBC Holdings Plc told Dow Jones it is open to
looking at acquisitions in Colombia.
According to Dow Jones, the winner will be the bank that offers
to pay the highest amount for Bancafe.
Potential buyers of the remaining shares in Bancafe will have to
present their bids on Oct. 9, Dow Jones states.
Bancafe was formed by the merging of Bancafe assets and part of
Granahorrar, a local mortgage bank, in March 2005. To save them
from bankruptcy when the country was hit by a financial crisis
in the late 90s, the government had taken control of the banks.
CENTRAGAS-TRANSPORTADORA: S&P Says BB Rating Show Liquidity Risk
----------------------------------------------------------------
The 'BB' foreign currency rating on Centragas-Transportadora de
Gas de la Region Central de Enron Development and Cia. SCA's
notes reflects the one-source revenue stream, liquidity risk
from Centragas' bondholders' put option, and nonrecourse to
either the sponsors or off-taker. However, the pipeline's
strategic position in Colombia, its adequate tariff and
bankruptcy-remote structure, and its healthy operation and debt
service coverage records strengthen its credit profile and
partially offset the risks.
The bondholders have a put option by which Centragas buys the
bonds from them if Enron Corp.'s ownership in Centragas,
directly or through affiliates, falls below 25%; if Enron's
ownership in Enron Development Corp. falls below 51%; or if
Enron Development ceases to be Centragas' general partner.
Standard & Poor's Ratings Services believes that, given present
conditions, bondholders are unlikely to exercise the put option,
but instead would trigger the need for Centragas to refinance
debt under stressed market conditions, which would also subject
them to Colombian law and uncertainties inherent to bankruptcy
if their right to exercise the put option causes solvency
problems for Centragas.
Centragas can distribute dividends from the distribution account
only when the debt service reserve is fully funded and the debt
service coverage ratio exceeds 1.2x. In recent years, Centragas
distributed part of its excess cash to shareholders in the form
of intercompany loans. In 2002, Centragas and its shareholders
signed an agreement under which future dividends paid to Enron
or its affiliates will be utilized to reduce the outstanding
balance on the aforementioned intercompany loans. The balance
on these loans has successfully been reduced to approximately
US$35 million, as of Aug. 31, 2006.
Centragas continues to operate according to standards set in the
project's contracts. The pipeline continues to generate tariff
revenues that are adequate to cover operating expenses and
fulfill all financial obligations. The pipeline has not
suffered any interruptions recently, and has met all maintenance
specifications. Operating margin for the first half of 2006 was
adequate at 40%, as was the DSCR for the 12 months ended June
30, 2006, at 1.66x, compared with the projected 1.4x.
Bondholders are well protected against cash shortfalls by the
project's financial structure because the two-quarter debt
service reserve is in place. Standard & Poor's believes that
DSCRs will remain above 1.2x because operations are meeting the
original estimates, and that Promigas' satisfactory operating
performance will continue.
Centragas is an Enron Development special-purpose entity that
built, owns, operates, and will eventually transfer a natural
gas pipeline to Empresa Colombiana de Gas. The pipeline is
about 578 kilometers long and runs from Ballena to
Barrancabermeja, Colombia.
The positive outlook reflects the outlook assigned to the
Republic of Colombia, due to the government's ownership of
Ecopetrol, the importance of the oil company to public-sector
revenues and to the country's economy, and the considerable
government oversight of the company's activities. A shift in
the Republic of Colombia's creditworthiness, reduced support
from the Colombian government for its gas plan, or another
unforeseeable event that could jeopardize complete and timely
payments to the project would result in a negative rating action
by Standard & Poor's. In addition, any rating action on the
Republic of Colombia could also lead to a rating action on
Centragas.
* COLOMBIA: Posts US$12-Mil. Profit from Power Sold to Ecuador
--------------------------------------------------------------
The 137 gigawatt hours of electricity that Colombia supplied to
Ecuador in August brought in US$12 million, Business News
Americas reports, citing XM -- a Colombian wholesale power
market firm.
XM is a subsidiary of state transmission company ISA.
BNamericas relates that Colombia has been supplying power to
Ecuador since 2003 under short-term international electricity
transactions.
XM said in a statement that Colombia's electric power sector has
collected about US$447 million under the arrangement.
According to the statement about US$235 million of the US$447
million correspond to congestion profits produced by differing
energy prices between Colombia and Ecuador.
Colombia has allocated 72.7% of congestion profits to FOES, its
social energy fund, BNamericas states.
* * *
On July 25, 2006, Fitch rated the Republic of Colombia's US$1
billion issue of fixed-rate Global Bonds maturing
Jan. 27, 2017, 'BB'. The rating is in line with Fitch's long-
term foreign currency rating on Colombia. Fitch said the Rating
Outlook is Positive.
===================================
D O M I N I C A N R E P U B L I C
===================================
AES DOMINICANA: Says Unit Shut Down for Scheduled Maintenance
-------------------------------------------------------------
AES Dominicana, a subsidiary of AES Corp. in the Dominican
Republic, explained to Dominican Today that the 300-megawatt
unit AES Andres was shut down for maintenance at a scheduled
date.
The problem affecting electricity production in various systems
was due to the 69,000-volt transmission network failure, AES
Dominicana said in a statement.
Dominican Today relates that Ege Haina -- an energy-generating
firm -- said that the recent energy cuts occurring in Santo
Domingo are the consequence of unexpected technical failures.
The blackouts have nothing to do with the payments that the
state owes the energy sector, Dominican Today says, citing Ege
Haina.
DR1 Newsletter notes that the power-generating firms assured
that they had informed the nation's Superintendence of
Electricity's Coordinating Office about the planned shutdown.
The firms rejected Segura's statement that they failed to
explain the reasons for the power outages in the nation, DR1
states.
About AES Corp.
AES Corp. -- http://www.aes.com/-- is a global power
company. The Company operates in South America, Europe, Africa,
Asia and the Caribbean countries. Generating 44,000 megawatts
of electricity through 124 power facilities, the Company
delivers electricity through 15 distribution companies.
AES's Latin America business group is comprised of generation
plants and electric utilities in Argentina, Brazil, Chile,
Colombia, Dominican Republic, El Salvador, Panama and Venezuela.
Fuels include biomass, diesel, coal, gas and hydro. The group
also pursues business development activities in the region. AES
has been in the region since May 1993, when it acquired the CTSN
power plant in Argentina.
About AES Dominicana
AES Dominicana is a special-purpose financing entity of AES
Corp. in the Dominican Republic. It manages two of AES Corp.'s
wholly owned generating facilities, Andres and DPP. Andres is
incorporated under the laws of the Netherlands, and it owns a
304 MW gas-fired, combined-cycle plant outside of Santo Domingo.
The facility also includes an LNG regasification terminal.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 21, 2006, Standard & Poor's Ratings Services' 'B-' rating
on AES Dominicana Energia Finance S.A.'s US$160 million senior
notes due 2015 reflects the challenges of operating in the
electric sector in the Dominican Republic, and a legacy
liquefied natural gas contract that could be burdensome, offset
by the contractual nature of the revenue stream, and continued
support of the electricity sector by the Dominican government.
The outlook is stable.
BANCO INTERCONTINENTAL: Defense Seeks to Suspend Court Trial
------------------------------------------------------------
Eric Raful -- the legal representative of Luis Alvarez Renta,
the former financial adviser of Banco Intercontinental SA --
filed a motion to the National District's 1st Collegiate Court
in the Dominican Republic to postpone court proceedings on the
fraud case, as his client is being subpoenaed to appear before a
court in Miami, Dominican Today reports.
Dominican Today relates that Mr. Raful said that he was forced
to make the request after Mr. Renta was subpoenaed by the
Florida South District Federal Court to appear in a hearing on
Oct. 11.
Mr. Raful told Dominican Today, "The purpose of this hearing is
to determine if Alvarez Renta has totally complied with the
requirements of the Court Order dated May 9, 2006 and,
otherwise, to determine if consequently, she (he) must be
declared in civil contempt."
A federal jury in Miami found Mr. Renta liable of civil
racketeering and illegal money transfers in a conspiracy to
plunder Banco Intercontinental during its final months in 2003.
Dominican Today relates that Mr. Raful asked that the court
suspend the civil persecutions and any of other nature promoted
in the United States. The lawyer asked that the order be
implemented until the conclusion of the penal process in the
Dominican Republic.
Mr. Raful told the Dominican court that this type of persecution
puts his client's freedom in the US at risk. It also hinders
his right to a suitable defense in Santo Domingo, Dominican
Today states.
Baninter collapsed in 2003 as a result of a massive fraud
that drained it of about US$657 million in funds. As a
consequence, all of its branches were closed. The bank's
current and savings accounts holders were transferred to the
bank's new owner -- Scotiabank. The bankruptcy of Baninter was
considered the largest in world history, in relation to the
Dominican Republic's Gross Domestic Product. It cost Dominican
taxpayers DOP55 billion and resulted to the country's worst
economic crisis.
=============
E C U A D O R
=============
DEL MONTE: Declares Cash Dividend of US$0.04 Per Share
------------------------------------------------------
Del Monte Foods Co. has declared a cash dividend on its common
stock of US$0.04 per share. The dividend is payable on
Nov. 2, 2006, to stockholders of record as of the close of
business on Oct. 19, 2006.
About Del Monte Foods
Headquartered in San Francisco, Calif., Del Monte Foods Co.
-- http://www.delmonte.com/-- produces and distributes
processed vegetables, fruit and tomato products, and pet
products. The products are sold under Del Monte, Contadina,
S&W, Starkist, College Inn, 9Lives, Kibbles 'n Bits, Meow Mix,
Milk-Bone, Pup-Peroni, Snausages, Pounce, and Meaty Bone. The
Group has food-processing plants in South America and has
subsidiaries in Venezuela, Colombia, Ecuador and Peru. The
production facilities are operated in California, the Midwest,
Washington and Texas, as well as 7 distribution centers.
* * *
Moody's Investors Service confirmed on April 26, 2006, Del Monte
Corp.'s Ba3 senior secured debt and corporate family ratings, as
well as its B2 subordinated debt rating. Moody's also assigned
Ba3 ratings to two senior secured term B loans being established
by the company, as well as a Ba3 rating to a US$50 million step-
up in its senior secured revolving credit facility.
* * *
Standard & Poor's Ratings Services assigned on April 26, 2006,
its 'BB' bank loan ratings and '1' recovery ratings to Del Monte
Corp.'s proposed US$975 million add-on to its existing senior
secured term loan facilities, indicating the expectation of full
(100%) recovery of principal in the event of a payment default.
At the same time, Standard & Poor's affirmed its 'BB-' long-term
and 'B-1' short-term corporate credit ratings. S&P said the
ratings outlook is negative.
* * *
Fitch Ratings revised on March 21, 2006, the Ratings Outlook for
Del Monte Food Company and Del Monte Corp. to Negative from
Stable. The ratings have been affirmed as:
Del Monte Foods Company (Parent):
-- Issuer default rating 'BB'
Del Monte Corp. (Operating Subsidiary):
-- IDR 'BB'
-- Senior secured bank facility 'BB+'
-- Senior subordinated notes 'BB-'
Fitch's rating actions affect Del Monte's US$1.3 billion of debt
outstanding as of Jan. 29, 2006.
* ECUADOR: Gets 137 Gigawatt Hours of Power from Colombia
---------------------------------------------------------
Ecuador received 137 gigawatt hours of electricity from Colombia
in August, Business News Americas reports, citing XM -- a
Colombian wholesale power market firm.
XM is a subsidiary of state transmission company ISA.
BNamericas underscores that XM said Colombia was able to earn
about US$12 million from Ecuador.
BNamericas relates that Colombia has been supplying power to
Ecuador since 2003 under short-term international electricity
transactions.
XM said in a statement that Colombia's electric power sector has
collected about US$447 million under the arrangement.
According to the statement about US$235 million of the US$447
million correspond to congestion profits produced by differing
energy prices between Colombia and Ecuador.
Colombia has allocated 72.7% of congestion profits to FOES, its
social energy fund, BNamericas states.
* * *
Fitch assigned these ratings on Ecuador:
Rating Rating Date
------ -----------
Country Ceiling B- Aug. 29, 2005
Long Term IDR B- Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
* ECUADOR: Internet Service Providers to Register Bandwidth
-----------------------------------------------------------
Conatel -- the telecom regulator of Ecuador -- said in a
statement that it will require Internet service providers to
register their bandwidth speed.
The new initiative is aimed at helping telecom development of
the Ecuador, which has an Internet penetration of 4.5-5.5%,
analyst Hugo Carrion told Santa Fe.
El Comercio relates that the 112 registered Internet providers
in Ecuador will be given 45 days to meet the new regulation,
which defines broadband speed at 256 kilobits per second.
Business News Americas underscores that each provider will have
to provide a free program allowing users to monitor the speed at
which their connection is running.
Internet providers who operate at speed that is slower than 256
kbps have to define their service "as narrow band", El Comercio
states.
* * *
Fitch assigned these ratings on Ecuador:
Rating Rating Date
------ -----------
Country Ceiling B- Aug. 29, 2005
Long Term IDR B- Dec. 14, 2005
Short Term IDR B Dec. 14, 2005
=====================
E L S A L V A D O R
=====================
DELL INC: Faces NASDAQ Delisting Due to Form 10-Q Late Filing
-------------------------------------------------------------
Dell Inc. has reported plans to request a hearing before a
NASDAQ Listing Qualifications Panel in response to its receipt,
on Sept. 15, of a NASDAQ Staff Determination letter indicating
Dell is not in compliance with the filing requirement for
continued listing as set forth in Marketplace Rule 4310(c)(14).
As anticipated, the letter was issued in accordance with NASDAQ
rules due to the delayed filing of the company's Form 10-Q for
the quarter ended Aug. 4, 2006. Pending a decision by the
panel, Dell shares will remain listed on The NASDAQ Stock
Market.
As previously announced, Dell is unable to file its Form 10-Q
for the quarterly period ended Aug. 4, 2006, because of
questions raised in connection with an informal investigation by
the U.S. Securities and Exchange Commission into certain
accounting and financial reporting matters, and the subsequently
initiated independent investigation by the audit committee of
its board of directors.
The SEC requests for information were joined by a similar
request from the United States Attorney for the Southern
District of New York, who has subpoenaed documents related to
the company's financial reporting from 2002 to the present. The
company said it will file the report as soon as possible.
Dell, Inc. (NASDAQ: DELL) -- http://www.dell.com-- designs,
develops, manufactures, markets, sells, and provides support for
various computer systems and services to customers worldwide.
One of its customer-contact facilities is located in El Salvador
The company manage its business in three geographic segments:
the Americas, EMEA, and APJ regions. The Americas region covers
the U.S., Canada, and Latin America.
=================
G U A T E M A L A
=================
* GUATEMALA: Ministry Says Maximum Electricity Demand Drops
-----------------------------------------------------------
The energy and mines ministry of Guatemala told Business News
Americas that the nation's average maximum electricity demand
decreased 41 megawatts five months after implementing the
daylight saving time.
As reported in the Troubled Company Reporter-Latin America on
May 10, 2006, Guatemala implemented a daylight saving time,
advancing official schedule by one hour.
Daylight saving time aka DST is a system of adjusting the
official local time forward -- usually one hour -- from its
official standard time for the summer months, to provide a
better match between the hours of daylight and the active hours
of work and school.
The ministry said in a statement that power generation May-
August dropped 36GWh, representing savings of GTQ33 million
through not having to buy 2.4 million gallons of fossil fuels.
BNamericas relates that about GTQ31 million was also saved from
transactions not made on the wholesale market.
BNamericas notes that the ministry reported reduced emissions
due to a decrease in thermal generation.
The Guatemalan government will maintain daylight saving time
through the end of September, BNamericas states.
* * *
Fitch Ratings assigned these ratings on Guatemala:
Rating Rating Date
------ -----------
Country Ceiling BB+ Feb. 22, 2006
Long Term IDR BB+ Feb. 22, 2006
Short Term IDR B Feb. 22, 2006
Local Currency
Long Term Issuer
Default Rating BB+ Feb. 22, 2006
Fitch also rated Guatemala's senior unsecured bonds:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
Aug. 3, 2007 $150,000,000 8.5% BB+
Nov. 8, 2011 $325,000,000 10.25% BB+
Aug. 1, 2013 $300,000,000 9.25% BB+
Oct. 6, 2034 $330,000,000 8.125% BB+
* GUATEMALA: Awards Exploration & Production Contract to US Oil
---------------------------------------------------------------
The Guatemalan government has ratified an oil exploration and
production contract for the A1-2003 block in Peten awarded to US
Oil Guatemala, according to a report by the country's official
gazette.
According to Business News Americas, US Oil Guatemala and the
Guatemalan ministry signed the contract for the 39,500-hectare
block on June 28.
Jorge Silva -- the energy and mines ministry's hydrocarbons
director -- told BNamericas that the approval opens the door for
US Oil Guatemala to start the 25-year contract's six-year
exploratory phase.
US Oil Guatemala will then draft an environmental impact study,
BNamericas notes, citing Mr. Silva. The study must have the
approval of the natural resources and environment ministry.
If oil is found, US Oil Guatemala will have to pay a 20% royalty
of net production to the government if it decides to continue
the subsequent phase, BNamericas relates.
* * *
Fitch Ratings assigned these ratings on Guatemala:
Rating Rating Date
------ -----------
Country Ceiling BB+ Feb. 22, 2006
Long Term IDR BB+ Feb. 22, 2006
Short Term IDR B Feb. 22, 2006
Local Currency
Long Term Issuer
Default Rating BB+ Feb. 22, 2006
Fitch also rated Guatemala's senior unsecured bonds:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
Aug. 3, 2007 $150,000,000 8.5% BB+
Nov. 8, 2011 $325,000,000 10.25% BB+
Aug. 1, 2013 $300,000,000 9.25% BB+
Oct. 6, 2034 $330,000,000 8.125% BB+
=========
H A I T I
=========
* HAITI: IDB Approves US$15MM Loan for Rural Water & Sanitation
---------------------------------------------------------------
The Inter-American Development Bank announced the approval of a
US$15 million soft loan for a program to expand drinking water
and sanitation services to rural communities in Haiti the
country with the lowest level of domestic water consumption in
the Western Hemisphere.
The program, which will be carried out by the National Potable
Water Service or SNEP, is expected to directly benefit some
90,000 people in the departments of Artibonite, Grand' Anse,
Nippes and Ouest, including the island of La Gonave, where
average consumption of water is around seven liters per person a
day, nearly one-third of the basic minimum recommended by the
World Health Organization.
The SNEP and the Ministry of Public Works, Transport and
Communication or MTPTC selected these departments based on their
critical situation and low levels of investment in this sector
over the past decade.
"Low coverage of potable water and sanitation limits economic
development and takes a huge toll on the poor, especially women
and children in rural areas who have the chore of fetching
water. This is why the program targets specifically small rural
communities without access to these services," said IDB project
team leader Diego Arias.
Priority for investments will be given to communities with fewer
than 5,000 inhabitants and lacking improved water and sanitation
systems. Communities will decide through a participatory process
whether they want to take part in the program, choose the
systems best suited to their needs and capacity to operate and
maintain them, and establish local water user committees to run
the services.
To ensure the sustainability of the systems, communities will
establish cost recovery mechanisms to cover operation and
maintenance expenses. The program will finance training in basic
management skills for local committee members as well as promote
women's participation and awareness of public health and
environmental issues.
The program will also provide resources for strengthening the
SNEP, which is responsible for drinking water and sanitation
services in Haiti's interior. Another government agency, CAMEP,
is responsible for the capital region of Port-au-Prince.
Through previous loans to Haiti the IDB is currently supporting
a program to expand drinking water and sanitation services in
five secondary cities. It has also financed small-scale water
and sanitation projects under a local development program run by
the Haitian government's Fund for Social and Economic Assistance
or FAES.
In preparing the new program the IDB coordinated closely with
other international agencies and donors involved in expanding
water and sanitation services in Haiti, in particular the World
Bank, which may provide up to US$5 million in parallel financing
for this new initiative.
The IDB loan is for 40 years, with a 10-year grace period.
Interest rates will be 1 percent a year during the first decade
and 2 percent a year thereafter.
* * *
Haiti is currently seeking international help to spur economic
development in the country. President Rene Preval submitted
that the country's poverty, widespread unemployment and the
dilapidated state of infrastructures will be alleviated with
increased international assistance.
===============
H O N D U R A S
===============
* HONDURAS: Providing Updated Hydrocarbons Information by 2007
--------------------------------------------------------------
An official from the energy department of Honduras told Business
News Americas that the agency aims to have updated information
on the nation's hydrocarbons potential ready in the first
quarter of 2007.
According to BNamericas, the government aims to develop the
Honduras' hydrocarbons resources to lessen dependence on imports
due to high prices.
BNamericas relates that the official said Japan's Japex
Geoscience Institute has indexed and cataloged existing energy
department information.
The official told BNamericas that the energy department will
hire additional personnel and a consultant to verify the data,
which include those that go back 20 years. The hiring is
pending the release of government funds.
Meanwhile, the China National Petroleum visited Honduras earlier
this month. Honduran authorities will wait for the firm to
review existing information, BNamericas states, citing the
official.
* * *
Moody's Investor Service assigned these ratings on Honduras:
Rating Rating Date
------ -----------
Senior Unsecured B2 Sept. 29, 1998
Long Term IDR B2 Sept. 29, 1998
=============
J A M A I C A
=============
DIGICEL LIMITED: Venturing Into U.S. Market in 2007
---------------------------------------------------
Digicel Ltd. plans to enter the United States market in 2007
after its expansion in the Caribbean and Latin America this
year.
According to The Wall Street Journal, Digicel will have to take
a different approach in entering the U.S. market. Instead of
building its own network, like what it has been currently doing,
Digicel will have to rent space on an existing network.
While most industry experts view the U.S. wireless market as
highly competitive, Digicel chairman Denis O'Brien sees an
underserved population and lackluster incumbents, The Journal
says.
"The U.S. market is boring," presenting opportunity for Digicel,
Mr. O'Brien was quoted by The Journal as saying. "We go where
people have been underserved and gouged."
Wally Swain, senior vice president for emerging markets at
consulting firm Yankee Group in Boston said that Digicel has
done an impressive job of branding and marketing. It emphasizes
reliability and customer service, and sometimes sharply
undercuts rivals' prices, The Journal relates.
"What they do a great job at is tapping into latent frustration
with the incumbent" service provider, Mr. Swain told The
Journal. "I suspect that their business model sort of depends on
having a sleepy incumbent."
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 Caribbean countries 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.
DYOLL INSURANCE: Senator Urges Farmers to Appeal on Payments
------------------------------------------------------------
Senator Norman Grant -- the head of the Jamaica Agricultural
Society -- has encouraged coffee farmers who insured their crops
with Dyoll Insurance Company, and denied of insurance benefits
from Hurricane Ivan to make appeals to fight their cases, the
Jamaica Observer reports.
As reported in the Troubled Company Reporter-Latin America on
Sept. 14, 2006, Derrick Simon -- the representative of the
farmers -- said that about 40% of the almost 6,000 claims had
been referred for appeal due to discrepancies with the method of
computation used to determine the amount each farmer would get,
saying that some farmers received payment while others got
nothing due to lack of information or on the grounds that they
were not qualified for any payment at all. As previously
reported, the farmers affected by Hurricane Ivan in Sept. 2004
received on Aug. 11 J$100 million interim payment from Jamaica's
agriculture ministry. Robert Clarke, the agriculture minister,
said that the individual claims were being reconciled and the
funds would be distributed.
Senator Grant told The Observer, "I think there is still a
window of opportunity, and I am advocating the use of the
appeals process because I believe that even if these farmers do
not benefit from the current payments, they should be able to
access subsequent payments."
The Observer underscores that Senator Grant -- who is also the
chief executive officer and managing director of Mavis Bank --
said that his firm was pleased that 65% of its suppliers had
benefited from recent payments.
However, Senator Grant admitted to The Observer that he was
concerned about the others who were disqualified for producing
above a cap worked out by the trustees, or because of
insufficient information in their claims.
"Processing companies, like Mavis Bank, had nothing to do with
how the claims were processed or how the funds were distributed.
But, I will be seeking clarification from the Ministry of
Agriculture, and I will be demanding that a way must be found to
assist the disqualified farmers in subsequent distribution of
funds," Senator Grant told The Observer.
The Financial Services Commission of Jamaica took over control
of Dyoll Insurance in Mar. 7, 2005, in order to establish the
true position of the Company, address the matter of settlement
to its claimants and ensure that its policies will remain in
force after a high level of insurance claims were levelled on
the company as a result of the hurricane Ivan. Kenneth Tomlison
was appointed temporary manager. Jamaica's Supreme Court
ordered for the distribution of a US$653 million fund held by
the FSC in accordance with the Insurance Act 2001, section
59, which says that the prescribed deposit, on the winding up of
an insurance company, should be applied first to settle the
claims of local policyholders.
NATIONAL COMMERCIAL: Unit Lists 11.75% Shares on Stock Exchange
---------------------------------------------------------------
NCB Capital Markets Limited -- the stockbrokerage and funds
management unit of the National Commercial Bank -- placed its
11.75% preference shares on the Jamaica Stock Exchange late last
week, The Jamaica Observer reports.
The listing, says The Observer, allows preference shareholders
the benefit of earning tax-free dividends and brings in the
opportunity to freely trade the stocks.
Christopher Williams -- the managing director of Capital Markets
-- praised the move. He told The Observer that the listing had
significant implications for both the firm and its investors.
The Observer relates that Mr. Williams said, "The listing of the
NCB Capital Markets' preference stock units on the Jamaica Stock
Exchange increases our capital base allowing us to be a bit more
aggressive in our proprietary investment strategy. It also
presents the investors with an alternative investment with a
predictable yield and the option to trade the stock as they wish
along with the potential for capital appreciation".
Many financial analysts called Capital Market's preference share
offer as a good move and was regarded as innovative as it was
believed that the structure of preference stocks is expected to
attract investors, according to The Observer.
The preference share offer has limited risks due to its
redeemable feature. It also has a fixed dividend, The Observer
states.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 13, 2006, Fitch initiated rating coverage on Jamaica's
National Commercial Bank Jamaica, Ltd., by assigning 'B+'
ratings on the bank's long-term foreign currency. Other ratings
assigned by Fitch include:
-- Long-term local currency 'B+';
-- Short-term foreign currency 'B';
-- Short-term local currency 'B';
-- Individual 'D';
-- Support '4'.
Fitch said the ratings have a stable outlook.
===========
M E X I C O
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BERRY PLASTICS: Company Sale Prompts S&P to Lower Rating to B
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Berry Plastics Holding Corp. to 'B' from 'B+'
following successful completion of the acquisition of the
company by private equity firms, Apollo Management L.P. and
Graham Partners. The rating agency removed the ratings from
CreditWatch, where they were placed with negative implications
on Aug. 3, 2006. The outlook is stable.
Pro forma for the transaction, Evansville, Ind.-based Berry had
total debt outstanding of about US$1.9 billion at July 1, 2006.
Berry Plastics Holding Corp. is the parent of Berry Plastics
Corp.
"The ratings reflect Berry's highly leveraged financial profile
which is partially offset by the company's fair business profile
with large market shares in niche segments, a well-diversified
customer base, and strong customer relationships," said Standard
& Poor's credit analyst Liley Mehta.
With annual sales of about US$1.4 billion, privately held Berry
is a leading manufacturer and supplier of:
-- plastic injection-molded and thermoformed open-top
containers,
-- aerosol overcaps,
-- drinking cups,
-- housewares,
-- closures for the health care and food and beverage
segments,
-- pharmaceutical bottles, and
-- prescription vials.
The bulk of Berry's output is sold to dairy, food, beverage,
health care, and other consumer product segments, a relatively
recession-resistant customer base. Still, some of its key
markets are relatively small and mature. The continuing
conversion to plastic containers from paper and other materials
in the company's end markets is an important growth driver. In
particular, Berry is expanding its thermoforming capacity to
meet the growing demand for thermoformed drink cups driven by
conversion from other materials.
About 60% of Berry's revenues are under contractual arrangements
that allow for passing through raw material price fluctuations
to customers. The company has successfully passed through
fluctuations in raw material prices (namely plastic resins such
as polypropylene, high-density polyethylene, and linear low-
density polyethylene) to customers with a few months' time lag,
and operating margins have been maintained in the still-
attractive high teens percentage area. However, competitive
pressures have limited the company's ability to pass through
higher raw material costs in the smaller housewares segment.
Following completion of the transaction, Berry's total debt has
increased substantially and the company is very aggressively
leveraged. Pro forma total debt (adjusted for capitalized
operating leases) to EBITDA is above 7x for the 12 months ended
July 1, 2006. Steady volume growth and operating margins
remaining in the high teens percentage area should support
consistent free cash generation, which is expected to be
prioritized for debt reduction in the near to intermediate term.
DESARROLLADORA HOMEX: S&P Affirms BB- Corporate Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit ratings on Desarrolladora Homex S.A.B. de C.V.
Standard & Poor's also said that it affirmed its 'BB-' rating on
Homex's US$250 million, 7.5% senior unsecured notes due 2015.
The outlook on Homex remains stable.
"The ratings on Homex are constrained by the company's
aggressive growth plans, our expectation that these plans could
demand additional indebtedness, and high working-capital
requirements that have restricted free operating cash-flow
generation," said Standard & Poor's credit analyst Raul Marquez.
"The ratings also reflect the concentration of mortgage
origination in the public housing agencies and increased
competition, which are inherent risk factors to the Mexican
homebuilding industry."
Positive factors supporting the rating include Homex's position
as one of the leading homebuilders in Mexico, broad geographic
diversity, a comfortable maturity schedule, and the favorable
trend in Homex's financial performance during the past couple of
years. The rating assigned to its senior notes also considers
the guarantee of its restricted subsidiaries avoiding structural
subordination between parent-subsidiary creditors. The payment
of all the company's guaranteed debt has eliminated
subordination between unsecured and secured debt. Nevertheless,
future issuance of secured debt could lead to structural
subordination.
Although Homex's growth plan has somewhat tempered, we believe
that the double-digit growth expected by the company in coming
years is still aggressive. Nevertheless, the ratings consider
that if an industry slowdown occurs, Homex will take a
conservative approach on its revenue and EBITDA growth rates.
The absence of free operating cash flow during the past couple
of years is a consequence of the intense working-capital
requirements to sustain its high growth rates; nevertheless
Homex has generated free operating cash flow in first half of
2006. Standard & Poor's believes this trend could continue for
the next couple of years if the company's working-capital needs
remain at less than US$160 million, including land purchases to
maintain its increased objective of 2.5 years in middle cities
and 4.7 years in large metropolitan areas.
Conversely, Standard & Poor's also believes that if working-
capital requirements and cash-flow generation are not matched
and Homex continues with its projected growth rate, the company
could demand additional indebtedness. Collection has presented
an important improvement, which is reflected in the trade
receivables turnover of around 164 days for the past 12 months
ended the second quarter of 2006 and an accounts receivable-to-
sales ratio of about 45% compared with about 223 days and 62%,
respectively, in the same period of 2005. Tha rating agency
believes that receivables could remain lower than 200 days if
the company effectively keeps implementing current initiatives
to speed up collections.
Homex is a vertically integrated homebuilder focused on the
affordable and middle-income housing segments. Headquartered in
Culiac n, Sinaloa, Homex is one of the largest homebuilders in
Mexico, with operations in 26 cities in 17 states across the
country. For the 12 months ended June 30, 2006, Homex sold
40,395 houses and reported revenues of US$991 million. The
company had total land reserves under title of approximately
25.8 million square meters as of June 2006, on which it is
estimated the group could build about 116,000 affordable entry-
level homes and approximately 30,000 middle-income homes.
The stable outlook reflects Standard & Poor's expectations that
the company should report satisfactory financial ratios, that a
prudent operating and financial strategy will be sustained
(especially if a slowdown in the collections occurs), and that
Homex will continue to maintain an adequate liquidity position.
A positive rating action will require consistent positive free
operating cash-flow generation for the next couple of years. A
weakening in the company's liquidity or its key financial
ratios, or an increase in management's tolerance for risk, could
lead to a negative rating action.
FORD MOTOR: Vice President A.J. Wagner to Retire on January 2007
----------------------------------------------------------------
A.J. Wagner, president of Ford Motor Credit Co. North America
and a vice president of Ford Motor Co., has elected to retire
after 33 years with the company. His retirement is effective
Jan. 1, 2007.
Since October 2003, Mr. Wagner has led the sales, marketing,
credit and brand functions for Ford Motor Credit's business in
the United States and Canada, which accounts for 75% of the
company's receivables. Ford Motor Credit's North American
operations provides retail and lease vehicle financing, dealer
inventory financing and commercial lending for the Ford,
Lincoln, Mercury, Aston Martin, Jaguar, Land Rover, Volvo and
Mazda brands.
"A.J.'s outstanding dealer relations and business skills have
made a major contribution to our credit organization in North
America," said Ford Executive Chairman Bill Ford. "He is an
excellent sales leader who has used his considerable energy to
support our product sales and our profitable financial
operations. He also has been a strong advocate for our dealers
and for the value that Ford Motor Company provides to them."
Mr. Wagner joined the company in 1973 and held numerous
positions throughout the Ford Motor Credit organization in
leasing, marketing, dealer credit, operations services, field
operations and strategic planning. He was executive vice
president of Ford Credit North America handling the Ford,
Lincoln and Mercury brands. He served as senior vice president
of Western U.S. Operations, vice president of Major Accounts and
vice president of Marketing. Mr. Wagner was also Field
Operations manager and regional manager at Ford Motor Company's
Ford Division.
Mr. Wagner served on three company boards: Ford Motor Credit
Company, Ford Credit Canada, of which he was chairman, and Ford
Direct, LLC.
Mr. Wagner holds a bachelor's degree in finance from the
University of Wisconsin and a master's degree in business
administration and finance from the University of Detroit.
About Ford Motor
Headquartered in Dearborn, Michigan, Ford Motor Co.
-- http://www.ford.com/-- manufactures and distributes
automobiles in 200 markets across six continents including
Brazil and Mexico. With more than 324,000 employees worldwide,
the company's core and affiliated automotive brands include
Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury
and Volvo. Its automotive-related services include Ford Motor
Credit Company and The Hertz Corp.
* * *
As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of
Ford Motor Co. under review with negative implications
following announcement that Ford will sharply reduce its North
American vehicle production in 2006. DBRS lowered on
July 21, 2006, Ford Motor Co.'s long-term debt rating to B from
BB, and lowered its short-term debt rating to R-3 middle from R-
3 high. DBRS also lowered Ford Motor Credit Co.'s long-term
debt rating to BB(low) from BB, and confirmed Ford Credit's
short-term debt rating at R-3(high).
Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Co. to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to
'B+/RR3' from 'BB-/RR3' and Ford Credit's senior unsecured
rating to 'BB- /RR2' from 'BB/RR2'. The Rating Outlook remains
Negative.
Standard & Poor's Ratings Services also placed its 'B+' long-
term and 'B-2' short-term ratings on Ford Motor Co., Ford Motor
Credit Co., and related entities on CreditWatch with negative
implications.
As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and
senior unsecured ratings of Ford Motor Company to B2 from Ba3
and the senior unsecured rating of Ford Motor Credit Company to
Ba3 from Ba2. The Speculative Grade Liquidity rating of Ford
has been confirmed at SGL-1, indicating very good liquidity over
the coming 12 month period. The outlook for the ratings is
negative.
FREESCALE SEMICONDUCTOR: Fitch Lowers Sr. Debt's Rating to BB+
--------------------------------------------------------------
Fitch downgraded Freescale Semiconductor Inc.'s Issuer Default
Rating, senior unsecured notes, and senior unsecured bank credit
facility to 'BB+' from 'BBB-' following the company's
confirmation that it has entered into a definitive agreement to
be purchased by a consortium of private equity firms for US$17.6
billion, the largest ever technology leveraged buy-out.
The ratings remain on Rating Watch Negative. Approximately
US$850 million of debt securities are affected by Fitch's
action.
Fitch believes the IDR of the new company would likely be 'B+'
or lower due to:
* the company's increased leverage;
* deteriorated credit protection measures; and
* limited free cash flow pro forma for the anticipated
incremental debt service.
The resolution of Fitch's Rating Watch will be determined by:
* an evaluation of the ultimate financing of the transaction;
* overall mix of securities in the capital structure; and
* the company's ability to generate free cash flow after the
transaction closes.
Fitch believes debt levels will increase to US$8.5-US$11.5
billion, assuming the private equity consortium contributes 35%-
50% of equity as is typical for LBO transactions within the
current market environment.
While the change of control put contained within the indenture
covering the existing senior unsecured notes is effective, Fitch
anticipates Freescale will tender for or repay the existing
US$850 million of senior unsecured notes and ultimately
refinance the current bank facility.
At that time, Fitch will withdraw ratings on these securities
and assign issue-specific and recovery ratings on the new debt
securities.
In Latin America, Freescale has operations in Argentina, Brazil
and Mexico.
GENERAL MOTORS: Progress on Nissan-Renault Alliance Talks Slow
--------------------------------------------------------------
The three-way alliance between General Motors Corp., Renault SA
and Nissan Motor Co. is making slow progress even as the Oct. 15
deadline for the companies to turn up their findings on the
proposed merger approaches.
Monica Langley and Stephen Power at The Wall Street Journal
reports that the merger talks have lost steam because GM is
looking at a less comprehensive alliance than what Renault and
Nissan has in mind. Carlos Ghosn, head of Renault and Nissan,
had indicated that he wanted, among other things, shared equity
stakes among the companies.
In July, the three carmakers agreed to conduct a 90-day study of
the potential benefits of an alliance that could create an
automobile giant with a combined annual production of 15 million
vehicles, The Associated Press reports. The study came after GM
shareholder Kirk Kerkorian, who owns a 9.9% stake in the company
through his investment firm Tracinda Corp., called for the
carmakers to pursue an alliance.
Mr. Ghosn is set to discuss details of the proposed merger with
Rick Wagoner, GM's CEO, in Paris next week, the Journal reports.
About General Motors
General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the
world's largest automaker, has been the global industry sales
leader since 1931. Founded in 1908, GM employs about 317,000
people around the world. It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries including
Mexico.
* * *
As reported in the Troubled Company Reporter on July 28, 2006,
Standard & Poor's Ratings Services held all of its ratings on
General Motors Corp. -- including the 'B' corporate credit
rating, but excluding the '1' recovery rating -- on CreditWatch
with negative implications, where they were placed March 29,
2006. The CreditWatch update followed GM's announcement of
second quarter results and other recent developments involving
its bank facility and progress on the GMAC sale.
As reported in the Troubled Company Reporter on July 27, 2006,
Dominion Bond Rating Service downgraded the long-term debt
ratings of General Motors Corporation and General Motors of
Canada Limited to B. The commercial paper ratings of both
companies are also downgraded to R-3 (low) from R-3.
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.
As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of
up to US$4.5 billion being proposed by General Motors
Corporation, affirmed the company's B3 corporate family and SGL-
3 speculative grade liquidity ratings, and lowered its senior
unsecured rating to Caa1 from B3. The rating outlook is
negative.
GLOBAL CROSSING: Opens Telecommunications Facility in Monterrey
---------------------------------------------------------------
Global Crossing Ltd. opened a new Point-of-Presence or PoP
facility in Monterrey, Mexico. The new PoP will provide carrier
and enterprise customers with direct access to Global Crossing's
Multiprotocol Label Switching or MPLS IP-based network, which
delivers state-of-the-art global IP solutions to more than 600
cities in 60 countries.
"Mexico continues to be a key market within our global strategy
and we're pleased to expand our IP infrastructure in response to
growing customer demand," said John Legere, Global Crossing's
chief executive officer. "Customers increasingly require
bandwidth-intensive applications that require a highly advanced
network, and this is exactly what Global Crossing's network was
built for."
The PoP, which serves as Global Crossing's global
interconnection center in Monterrey, is already operational and
serving customers. Global Crossing also has facilities in
Mexico City and other locations across Central and South
America. The company's IP-based solutions and traditional
services available from the new Monterrey PoP include Private
Line, International Private Line, high-speed Internet access,
Internet Protocol Virtual Private Network (IP VPN),
collaboration services, ATM and Frame Relay.
"Monterrey is a key business capital, and we look forward to
serving the city's many prestigious carriers and companies with
direct international connectivity as we continue strengthening
our IP network presence in Latin America and around the world,"
said Jose Antonio Rios, Global Crossing's chief administrative
officer and international president.
Global Crossing's advanced fiber-optic MPLS-based network in
Mexico runs through a terrestrial system connecting Mexico City,
Monterrey, Guadalajara and Mazatlan. Through its subsea system
in the Pacific, Global Crossing connects facilities in Tijuana
to the rest of its global network. In Latin America and the
Caribbean, the company has facilities in 12 of the region's
major cities, seamlessly connecting South America, Mexico,
Central America and the Caribbean to the rest of its global
network.
"Mexico's economy and its strategic geographic location have
created demand for additions to the infrastructure of next-
generation networks like Global Crossing's," said Ernesto
Piedras, general director of The Competitive Intelligence Unit.
"Previous telecommunication networks were built to support a
limited number of services, but today's networks offer transport
services with capabilities to run all types of traffic and,
thus, any service simultaneously and efficiently. Without a
doubt, building new points of presence such as Global Crossing's
global center in Monterrey benefits the growth and development
of Mexico."
Global Crossing has experienced remarkable IP growth around the
world. The company's IP traffic increased 102 percent in the
second quarter of 2006 compared to the same period in 2005,
while its IP VPN traffic grew by 220 percent, another indicator
of the rapid global adoption of IP convergence. This
extraordinary growth was mirrored in Mexico, where the number of
Global Crossing's enterprise and carrier customers increased 64
percent in the second quarter of 2006 compared to the second
quarter of 2005. Overall IP traffic more than doubled in Mexico
during the same period, outpacing the company's global IP
growth.
"This important investment in Monterrey allows us to give
customers a competitive advantage by providing a global gateway
to our secure, fiber-optic network from one of Mexico's most
important business and industrial districts," added Adrian
Gonzalez, Global Crossing's managing director in Mexico. "We
will continue to solidify our key position in this market by
advancing Mexico's connectivity to the rest of the world."
As a global, Tier-1 Internet Service Provider, Global Crossing
continues to make important investments in its IP network to
meet the increasing demand of customers around the world. The
company is planning a new landing point in Costa Rica to extend
the core network in Latin America, and it recently upgraded the
Mid-Atlantic Crossing by adding wavelengths on this undersea
system, which links North America, Latin America, Europe and the
Pacific. Global Crossing has also strengthened its IP network
and IP service offerings in Austria, Belgium, Germany, Italy,
Russia and Spain.
Global Crossing has more than quadrupled the capacity of its
global IP network backbone with a new IP Supercore platform.
The company has deployed more than 30 new high-capacity Juniper
routers in 17 worldwide locations with Terabit speeds to support
its rapid expansion and quality of service well into the future.
The increased core network capacity supports Global Crossing's
10 Gigabit Ethernet connections, which are now available
worldwide including Buenos Aires, Santiago and Sao Paulo.
With its Latin America network officially completed in 2001,
Global Crossing now serves virtually all of the region's major
carriers as well as many prestigious Latin American companies,
including Odebrecht, Brazil's largest multinational construction
company; Arcor, the world's largest confectionary; Mexicana de
Aviacion and Banco Santander.
About Global Crossing
Headquartered in Florham Park, New Jersey, Global Crossing
Ltd. -- http://www.globalcrossing.com/-- provides
telecommunication services over the world's first integrated
global IP-based network, which reaches 27 countries and more
than 200 major cities around the globe including Bermuda,
Argentina, Brazil, Chile, Mexico, Panama, Peru and Venezuela.
Global Crossing serves many of the world's largest corporations,
providing a full range of managed data and voice products and
services. The company filed for chapter 11 protection on
Jan. 28, 2002 (Bankr. S.D.N.Y. Case No. 02-40188). When the
Debtors filed for protection from their creditors, they listed
US$25,511,000,000 in total assets and US$15,467,000,000 in total
debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003.
At June 30, 2006, Global Crossing Ltd.'s balance sheet showed
US$1.87 billion in total assets and US$1.95 billion in total
liabilities, resulting to a stockholders' deficit of
US$86 million. The company reported a US$173 million
stockholders' deficit on Dec. 31, 2005.
GRUPO ELEKTRA: Unit Posts MXN9 Million First Half Earnings
----------------------------------------------------------
Figures from Mexican pension regulator Consar indicate that the
first half profits of Afore Azteca -- a unit of Grupo Elektra,
SA de CV -- dropped 47% to MXN9.00 million in the first half of
2006, from the MXN16.9 million recorded in the same period in
2005, Business News Americas reports.
BNamericas relates that Afore Azteca's total revenues increased
92% to MXN150 million in the first half of 2006, compared with
the first half of 2005. Its commission income rose MXN145
million. Costs of the company grew 115% to MXN395 million.
According to BNamericas, assets under management at Afore
Azteca's two Siefore investment vehicles increased 223% to
MXN13.3 billion in June 2006, compared with the same month in
2005.
BNamericas notes that Afore Azteca had a 2.1% market share of
the MXN627 billion in assets managed by Mexico's 17 Afores.
Afore Azteca reported that its customer base grew 34% to MXN1.29
million in June 2006, compared with June 2005. Its affiliate
market share increased to 3.6% from 2.8%, BNamericas states.
Grupo Elektra -- http://www.grupoelektra.com.mx-- sells retail
goods and services through its Elektra, Salinas y Rocha, Bodega
de Remates and Elektricity stores and over the Internet. The
Group operates more than 1,000 stores in Mexico, Guatemala,
Honduras, Peru and Panama. Grupo Elektra also sells and markets
its consumer finance, banking and financial products and
services through approximately 1,400 Banco Azteca branches
located within its stores, as a stand-alone, and in other
channels in Mexico and Panama. Banking and financial services
include loans, electronic money transfer services, extended
warranties, demand deposits, pension-fund management, insurance,
and credit information services.
* * *
As reported by Troubled Company Reporter on May 27, 2005, Fitch
Ratings affirmed and withdrew the 'BB-' international scale
foreign and local currency ratings of Grupo Elektra, S.A. de
C.V. Fitch has withdrawn the ratings in consistency with
Fitch's policies due to the paydown of all of the company's
dollar-denominated bonds.
Fitch also affirmed Elektra's national scale short term rating
of 'F2(mex)' and would continue to follow the company on the
national scale.
KRISPY KREME: Appoints Andrew J. Schindler to Board of Directors
----------------------------------------------------------------
Krispy Kreme Doughnuts, Inc., appointed Andrew J. Schindler to
its Board of Directors.
Mr. Schindler was formerly Chairman and Chief Executive Officer
of R.J. Reynolds Tobacco Holdings and Chairman of Reynolds
American Inc., a company formed in 2004 by the merging of R.J.
Reynolds Tobacco Holdings and the U.S. operations of Brown &
Williamson Tobacco Corporation. In over thirty years with
Reynolds, Mr. Schindler held various senior management
positions, including Director of Manufacturing for Nabisco
Foods, Vice President of Personnel, Executive Vice President of
Operations and Chief Operating Officer. In addition to Krispy
Kreme's board, Mr. Schindler currently serves on the board of
directors of ArvinMeritor Inc., Pike Electric Company, and
Hanesbrands Inc.
"We are pleased that Andy is joining our board as a new
independent director," said James H. Morgan, Chairman of the
Board of Krispy Kreme.
"Andy's broad perspective as a chief executive officer and his
skills in marketing, operations, strategic change and personnel
development will serve Krispy Kreme's shareholders well. He is
highly regarded for his leadership skills and we look forward to
his contributions as we continue our progress in the Company's
turnaround."
Mr. Schindler's appointment is the result of a Board resolution
creating an additional directorship, effective as of
Sept. 19, 2006.
About Krispy Kreme
Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed. There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.
Headquartered in Winston-Salem, North Carolina, Freedom Rings
LLC is a majority-owned subsidiary and franchisee partner of
Krispy Kreme Doughnuts, Inc., in the Philadelphia region.
Freedom Rings operates six out of the approximately 360 Krispy
Kreme stores and 50 satellites located worldwide. The Company
filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del.
Case No. 05-14268). M. Blake Cleary, Esq., Margaret B.
Whiteman, Esq., and Matthew Barry Lunn, Esq., at Young Conaway
Stargatt & Taylor, LLP, represent the Debtor in its
restructuring efforts. When the Debtor filed for protection
from its creditors, it estimated US$10 million to US$50 million
in assets and debts.
Headquartered in Oak Brook, Illinois, Glazed Investments, LLC,
is a 97%-owned unit of Krispy Kreme. Glazed filed for chapter
11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No.
06-00932). The bankruptcy filing will facilitate the sale of 12
Krispy Kreme stores, as well as the franchise development rights
for Colorado, Minnesota and Wisconsin, for approximately US$10
million to Westward Dough, the Krispy Kreme area developer for
Nevada, Utah, Idaho, Wyoming and Montana. Daniel A. Zazove,
Esq., at Perkins Coie LLP represents Glazed in its restructuring
efforts. When Glazed filed for protection from its creditors,
it estimated assets and debts between US$10 million to US$50
million.
KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings. The Monitor
is attempting to sell the KremeKo business.
KRISPY KREME: Hires Charles A. Blixt as Interim General Counsel
---------------------------------------------------------------
Krispy Kreme Doughnuts, Inc., appointed Charles A. Blixt, an
attorney with more than 25 years of experience in corporate law,
as general counsel on an interim basis.
Mr. Blixt, was most recently Executive Vice President and
General Counsel of Reynolds American Inc., a company formed in
2004 by the merger of R.J. Reynolds Tobacco Holdings and Brown &
Williamson Tobacco Corporation's U.S. operations. He negotiated
and implemented the merger and then served as Chief Legal
Officer of Reynolds American for the past two years.
Before the merger, Mr. Blixt worked for more than 20 years in
various legal positions for R.J. Reynolds. From 1995 to 2004, he
was Executive Vice President and General Counsel, serving as the
company's Chief Legal Officer and managing all aspects of its
legal affairs. Before joining R.J. Reynolds, Mr. Blixt held
corporate legal positions at Caterpillar Tractor Company and
Fiat-Allis Construction Machinery, and worked as an attorney in
private practice in Illinois and Michigan.
"We are pleased that Chuck Blixt is joining Krispy Kreme," said
Daryl Brewster, President and Chief Executive Officer of Krispy
Kreme. "As we continue to make progress in turning around the
company, we are confident that Chuck's corporate and legal
expertise will contribute to our ongoing efforts to strengthen
our business."
About Krispy Kreme
Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed. There are currently
approximately 320 Krispy Kreme stores and 80 satellites
operating systemwide in 43 U.S. states, Australia, Canada,
Mexico, the Republic of South Korea and the United Kingdom.
Headquartered in Winston-Salem, North Carolina, Freedom Rings
LLC is a majority-owned subsidiary and franchisee partner of
Krispy Kreme Doughnuts, Inc., in the Philadelphia region.
Freedom Rings operates six out of the approximately 360 Krispy
Kreme stores and 50 satellites located worldwide. The Company
filed for chapter 11 protection on Oct. 16, 2005 (Bankr. D. Del.
Case No. 05-14268). M. Blake Cleary, Esq., Margaret B.
Whiteman, Esq., and Matthew Barry Lunn, Esq., at Young Conaway
Stargatt & Taylor, LLP, represent the Debtor in its
restructuring efforts. When the Debtor filed for protection
from its creditors, it estimated US$10 million to US$50 million
in assets and debts.
Headquartered in Oak Brook, Illinois, Glazed Investments, LLC,
is a 97%-owned unit of Krispy Kreme. Glazed filed for chapter
11 protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No.
06-00932). The bankruptcy filing will facilitate the sale of 12
Krispy Kreme stores, as well as the franchise development rights
for Colorado, Minnesota and Wisconsin, for approximately US$10
million to Westward Dough, the Krispy Kreme area developer for
Nevada, Utah, Idaho, Wyoming and Montana. Daniel A. Zazove,
Esq., at Perkins Coie LLP represents Glazed in its restructuring
efforts. When Glazed filed for protection from its creditors,
it estimated assets and debts between US$10 million to US$50
million.
KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings. The Monitor
is attempting to sell the KremeKo business.
UNITED RENTALS: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. rental company sector last week, the
rating agency confirmed its B1 Corporate Family Rating for
United Rentals (North America), Inc. Additionally, Moody's
revised or held its probability-of-default ratings and assigned
loss-given-default ratings on these loans, bond debt obligations
and QUIPS:
Issuer: United Rentals (North America), Inc.
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
Sr. Sec. Revolving
Credit Facility
due 2009 B1 Ba1 LGD2 16%
Sr. Sec.
Institutional
Letter of Credit
Facility due 2011 B1 Ba1 LGD2 16%
Sr. Sec. Term
Loan due 2011 B1 Ba1 LGD2 16%
6.5% Gtd. Sr.
Unsec. Nts due
2012 B2 B1 LGD4 52%
7.75% Gtd. Sr.
Sub. Nts due 2013 B3 B3 LGD5 83%
7.0% Gtd. Sr. Sub.
Nts due 2014 B3 B3 LGD5 83%
1.875% Gtd.
Convertible Nts
due 2023 B3 B3 LGD5 83%
Issuer: United Rentals Trust I
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
6.5% Convertible
Quarterly Income
Pref. Securities
(QUIPS) due 2028 Caa1 B3 LGD6 96%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).
United Rentals, headquartered in Greenwich, Connecticut, is the
world's largest equipment rental company and operates more than
750 rental locations throughout the United States, Canada, and
Mexico.
=======
P E R U
=======
CONNACHER OIL: Moody's Assigns B1 Rating to Credit Facilities
-------------------------------------------------------------
Moody's Investors Service assigned a B1 corporate family rating
to Connacher Finance Corporation (CFC) and B1 ratings to its
US$180 million senior secured 7-year term loan B and US$15
million senior secured bank revolver. The ratings are assigned
subject to a review of final terms and conditions confirming
that lender protections match those built into the rating. The
outlook is stable.
CFC is an unrestricted wholly-owned subsidiary of Connacher Oil
and Gas Limited -- CLL, a small exploration and production firm
located in Calgary, Alberta, Canada. CLL does not guarantee CFC
debt. CFC debt is non-recourse to CLL. CFC is developing a
greenfield oil sands project (Great Divide) involving steam
assisted gravity drainage production of bitumen and sale of
diluted bitumen. Its properties span 79,360 acres of oil sands
leases 50 miles southwest of Fort McMurray, Alberta, Canada.
CFC also recently acquired a small 8,400-barrel per day refinery
in northern Montana.
CLL identifies 6 pods of oil sands deposits with potential
commercial viability. The borrowing "Project" includes the
initial Great Divide Pod 1 project, the Montana refinery, and
undeveloped Pod 2, 3, 4, 5 and 6 acreage. Pod 1 development
received regulatory approval earlier this year and CFC may seek
Pod 2 and 4 approvals next year. The credit facilities are
first secured by CFC's (and its wholly-owned subsidiaries' and
partnerships') assets, lease acreage, contracts, and regulatory
permits.
Together with CAD103 million of first-in Pod 1 cash equity from
CLL, the debt facilities will fund Project Costs totaling at
least US$289 million (CAD318 million), including refinancing
existing CFC debt and assuming a fully drawn bank revolver.
Defined costs include
(i) the Pod 1 central plant and first 15 well pairs,
(ii) refinancing US$51 million in debt incurred to acquire the
Montana refinery from Holly Corporation this year,
(iii) a pre-completion debt service reserve and
(iv) financing transaction costs.
Third party engineer GLJ Petroleum Consultants estimates another
CAD231 million in capital outlays, beginning in 2011, for 65
more well pairs to fully produce Pod 1 probable reserves over
the life of the project. Subject to incurrence tests, assuming
Pod 1 is on plan and CFC submits sound project plans, third
party engineering, and forecasts, TLB permits another US$150
million of pari passu debt to develop the next pod.
GLJ views Pod 1 to have sufficient appraisal well, coring, and
3-D seismic data to assign 71 million net barrels of probable
(2P) bitumen reserves valued at PV10 CAD260 million, with its
low case being approximately 20% less than 71 million barrels.
GLJ estimates 98 million net barrels of Pod 1 probable and
possible (3P) reserves valued at PV10 CAD331 million after
CAD542 million in capital outlays to produce the reserves over
the project life. Insufficient data exists now for the other
Pods on reservoir areal extent, thickness, complexity, quality,
and bitumen saturation, relegating their resource estimates to
speculative contingent and prospective categories. GLJ's high
estimate for commercial recoverable resources is 406 million net
barrels of potential commercial resources, valued at PV10 CAD1
billion after CAD2.8 billion in development capital over the
life of the project.
Moody's has not published an oil sands ratings methodology
though CFC's B1 rating maps to three preceding oil sands ratings
(Western Oil Sands, Ba2 senior secured; OPTI Canada, Ba3 senior
secured; MEG Energy, Ba3 senior secured). Each was also
effectively a project financing rated well in advance of
completion, commercial operation, and cash flow. Each is
substantially larger and farther along than CFC in total
resource evaluation, each tends to hold thicker oil sands pay,
each is much more heavily capitalized with equity in scale
(though CFC's debt to capital approaches the other projects),
and each includes deep pocket shareholders and/or deep pocket
joint venture partners with a strategic interest in project
execution.
CLL believes it has greater Pod 1 reservoir homogeneity and is
less afflicted by permeability barriers difficult to detect by
3-D seismic imaging, heat-dissipating zones, or problematic
underlying water or overlying natural gas formations than other
SAGD projects. This needs to be borne out in performance. As
well, since Pod 1 design steam generation capacity approximates
27,000 bpd, CFC needs to achieve a very attractive 2.7 steam-to-
oil ratio to hit target 10,000 bpd of bitumen production. Given
experience in the region to date, we view that as aggressive and
premature to build into the B1 rating.
As for all oil sands financings, Moody's ran sensitivity cases.
These include price, production rate, diluent cost, steam-oil
ratio, steam capacity, natural gas and non-energy production
costs, project cost overrun, and delayed start up assumptions.
If CFC only achieves a steam-oil ratio of 3.0, with resulting
indicated bitumen production of 9,000 bpd, it still appears the
ratings could be supported if its other expected case
assumptions hold and West Texas Intermediate light sweet crude
oil prices exceed roughly US$37/barrel. However, further
sensitizing key variables (CAD260 of Pod 1 development costs,
20% higher unit production costs, US$7/mmbtu natural gas costs,
US$4/barrel Gulf Coast crack spread), its ability to materially
reduce debt and support the ratings appears challenged at
roughly US$45/barrel WTI. Further sensitizing for a steam-oil
ratio of 3.5 and resulting indicated 7,700 bpd of production,
CFC's ability to reduce debt and support the ratings appears to
be challenged at roughly US$50/barrel WTI.
The rating outlook could be affected if:
(i) tight regional labor, supplier markets, or other factors
unduly harm project timing or costs,
(ii) Pod 1 peak daily production, decline curves per well
pair, energy costs, or the key steam/oil ratio unduly
impact sustainable production, unit costs, or capital
intensity per unit of production,
(iii) expected or realized prices do not stay historically high
in support of inherently high bitumen operating costs and
deep price discounts relative to light sweet oil prices,
or
(iv) Pod 2 financing and development costs overly burden debt
service capacity.
Generally, CFC's B1 ratings reflect:
-- the challenges and timing, development and production
cost, production and recovery rate, and margin
uncertainties of a leveraged greenfield SAGD project,
sponsored by a small though experienced firm, and in the
face of severe sector cost pressures;
-- condensate (diluent) scarcity for incremental sector
bitumen production growth requiring the use of more
expensive synthetic crude oil as diluent or expensive
diluent import logistics costs;
-- highly volatile and cyclical crude oil prices that are
currently softening; and
-- deep bitumen price differentials relative to light sweet
crude oil.
Moody's observes expensive preliminary logistical costs for up
to two years for diluent delivery to the project and for
movement of diluted bitumen for sale until pipeline extensions
and interconnections are in place. Moody's anticipates ongoing
bitumen price pressure as sector production surges prior to
sufficient expansion of bitumen pipeline export capacity beyond
current fairly saturated marketing regions.
Partial risk mitigants include:
-- a 1-year interest reserve account;
-- adequate third party engineered resource base for Pod 1
development and for asset coverage relative to the rating;
-- a potential for an eventually large proven and probable
reserve base; and
-- low reserve replacement risk (though oil sands quality,
reservoir homogeneity, bitumen production rates, total
recovery percentage, and cost and all-in economics will
vary across CFC's acreage).
The ratings benefit by:
-- the project's use of SAGD technology more than 7 years
into commercial status after 20 years of pilot project
experience in the region;
-- the fact that SAGD project cost escalation has so far
been significantly less severe than mining and
integrated oil sands developments; a degree of bitumen
margin protection provided by the Montana refinery that
provides an imperfect hedge for diluent costs and for
price differentials between heavy crude oil and light
crude oil;
-- a natural gas price hedge at the sponsor level due to its
small natural gas reserve and production portfolio; and
-- potential strategic interest in the project by major
producers.
Nevertheless, further support of CFC's current ratings comes
from:
-- tight financing terms; adequate up-front cash equity
funding;
-- comprehensive third party engineering and market
evaluation studies by major recognized consultants;
-- adequate Pod 1 appraisal support from 3-D seismic and
well control from appraisal wells and corings;
-- its attractive location in the midst of ample pipeline,
utilities, and road infrastructures;
-- a seasoned, though lean, project management team, assisted
by a recognized oil sands project contractor; and
-- a seasoned sponsor, with demonstrated access to equity
capital.
To a degree, the project benefits from cash flow from the
Montana refinery assuming volatile refining margins remain
sound. The refinery may also eventually become a source of
diluent for Great Divide in a diluent scarce market. Given an
additional small capital investment, under the existing refinery
configuration, CLL believes the refinery can produce in the
range of 100% low sulfur gasoline and approximately 50% low
sulfur diesel. However, during weak margin environments in the
past, the refinery's comparatively high unit costs and lower
value product yield did render low profitability and losses in
below average to weak margin environments under prior ownership.
Alternatively CFC's ratings are furthermore restrained by:
-- the comparatively small scale of the sponsor;
-- the fact that the great majority of its market value is
derived from Great Divide;
-- no material cash flow until 2008 at earliest; and
-- considerable uncertainty on realized bitumen prices
during the 2008 to 2009 full ramp-up period.
Regarding asset cover, the ratings also reflect the very early
stage of appraisal drilling across Pods 2, 3, 4, 5 and 6 and a
potential for thin asset coverage if third party engineer GLJ's
low case reserve estimate turns out to be more accurate than its
expected case or high cases.
On review of CLL's project data and Shaw/Stone & Webster's and
GLJ's reports, Moody's adopted somewhat more conservative
assumptions on development costs, start-up date; time to full
production; daily production; steam-oil ratio; and expected
total recovered bitumen in place. However, with key bitumen
yield, steam production rate, steam-oil ratio, development and
production costs, price, pipeline interconnect, start-up and
ramp-up timing, and downtime assumptions, GLJ and CLL expect Pod
1 to generate roughly 10,000 bpd (gross) of bitumen. That would
be first attained by completing the first 15 horizontal well
pairs and by subsurface conditions supporting permitting steam
chamber temperatures, dimensions, and bitumen yield adequate to
hit peak average well pair production of 700 bpd, sustain that
for 2 to 3 years, and decline gradually thereafter. Another 65
well pairs are needed, costing C$231 million by roughly 2011
through 2025, to sustain Pod 1 production at roughly 10,000 bpd
and fully produce 3P reserves.
Connacher Oil and Gas and Connacher Finance Corporation are
headquartered in Calgary, Alberta, Canada.
PETROLEO BRASILEIRO: Signing Development Accord with Petroperu
--------------------------------------------------------------
A spokesperson of Petroleo Brasileiro's Peruvian unit told
Business News Americas that the Brazilian parent will sign a
memorandum of understanding with Petroperu -- Peru's state-owned
firm -- on Sept. 27 for the development of joint projects in
Peru.
Jose Gabrielli -- the chief executive officer of Petroleo
Brasilieiro -- will be visiting Lima, Peru, for the agreement,
BNamericas relates, citing the spokesperson.
BNamericas notes that Petroleo Brasileiro disclosed earlier that
it is interested in developing joint ventures with Petroperu for
the exploration and production of natural gas, biofuels,
refining and petrochemicals.
The projects are not included in Petroleo Brasileiro's US$87.1-
billion plan for 2007-11, BNamericas states.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro
S.A. aka Petrobras was founded in 1953. The company explores,
produces, refines, transports, markets, distributes oil and
natural gas and power to various wholesale customers and retail
distributors in Brazil.
* * *
Petroleo Brasileiro SA's long-term corporate family rating is
rated Ba3 by Moody's.
* * *
Fitch Ratings assigned these ratings on Petroleo Brasileiro's
senior unsecured notes:
Maturity Date Amount Rate Ratings
------------- ------ ---- -------
April 1, 2008 US$400,000,000 9% BB+
July 2, 2013 US$750,000,000 9.125% BB+
Sept. 15, 2014 US$650,000,000 7.75% BB+
Dec. 10, 2018 US$750,000,000 8.375% BB+
Fitch upgraded the foreign currency rating of Petrobras to BB+
from BB, with positive outlook, in conjunction with Fitch's
upgrade of the long-term foreign and local currency IDRs of the
Federative Republic of Brazil to BB, from BB- on June 29, 2006.
* PERU: China Mulls Investing US$1.5 Billion in Mining Sector
-------------------------------------------------------------
Ac Group Xie Zhu -- a Chinese consortium -- said it is
interested in investing US$1.5 billion in mining activities in
Peru, according to a report by Andina news agency.
Andina relates that Ac Group is the second largest consortium in
China. It is focused on the mining of nonferrous metals like
nickel and copper.
The consortium had a meeting with Peru's President Alan Garcia
prior the announcement, Business News Americas reports.
* * *
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
=====================
ALLIED WASTE: Moody's Assigns Loss-Given-Default Ratings
--------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. solid waste sector last week, the
rating agency confirmed its B2 Corporate Family Rating for
Allied Waste Industries, Inc., and its Allied Waste North
America, Inc., subsidiary, and that intermediate subsidiary's
subsidiary Browning-Ferris Industries, Inc. Additionally,
Moody's revised its probability-of-default ratings and assigned
loss-given-default ratings on these debt obligations and equity
securities:
Issuer: Allied Waste Industries, Inc.
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$230 million 4.25%
senior subordinated
convertible bonds
due 2034 Caa2 Caa1 LGD5 85%
US$600 million 6.25%
senior mandatory
convertible
preferred stock
due 2008 Caa3 Caa1 LGD6 98%
Issuer: Allied Waste North America, Inc. (Subsidiary)
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$1.575 billion
guaranteed senior
secured revolver
due 2010 B1 Ba3 LGD2 26%
US$1.275 billion
guaranteed senior
secured term loan
due 2012 B1 Ba3 LGD2 26%
US$495 million
guaranteed senior
secured Tranche A
letter of credit
facility due 2012 B1 Ba3 LGD2 26%
US$750 million 8.5%
guaranteed senior
secured notes
due 2008 B2 B2 LGD4 57%
US$595 million 7.125%
guaranteed senior
secured notes
due 2016 B2 B2 LGD4 57%
US$350 million 6.5%
guaranteed senior
secured notes
due 2010 B2 B2 LGD4 57%
US$400 million 5.75%
guaranteed senior
secured notes
due 2011 B2 B2 LGD4 57%
US$275 million
6.375% guaranteed
senior secured
notes due 2011 B2 B2 LGD4 57%
US$251 million 9.25%
guaranteed senior
secured notes
due 2012 B2 B2 LGD4 57%
US$450 million
7.875% guaranteed
senior secured
notes due 2013 B2 B2 LGD4 57%
US$425 million
6.125% guaranteed
senior secured
notes due 2014 B2 B2 LGD4 57%
US$600 million 7.25%
guaranteed senior
secured notes
due 2015 B2 B2 LGD4 57%
US$400 million
7.375% guaranteed
senior unsecured
notes due 2014 Caa1 B3 LGD4 64%
Issuer: Browning-Ferris Industries, Inc.
(assumed by Allied Waste North America, Inc.)
Projected
Old POD New POD LGD Loss-Given
Debt Issue Rating Rating Rating Default
---------- ------- ------- ------ ----------
US$156 million
6.375% senior
secured notes
due 2008 B2 B2 LGD4 57%
US$96 million 9.25%
secured debentures
due 2021 B2 B2 LGD4 57%
US$293 million 7.4%
secured debentures
due 2035 B2 B2 LGD4 57%
US$280 million of
industrial revenue
bonds Caa1 B3 LGD4 64%
Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default. The LGD rating methodology will disaggregate these two
key assessments in long-term ratings. The LGD rating
methodology will also enhance the consistency in Moody's
notching practices across industries and will improve the
transparency and accuracy of Moody's ratings as Moody's research
has shown that credit losses on bank loans have tended to be
lower than those for similarly rated bonds.
Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale. They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.
Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock. Moody's
opinion of expected loss are expressed as a percent of principal
and accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%)
to LGD6 (loss anticipated to be 90% to 100%).
Based in Scottsdale, Arizona, Allied Waste Industries, Inc.
(NYSE: AW) -- http://www.investor.alliedwaste.com/-- provides
collection, recycling and disposal services to residential,
commercial and industrial customers in the United States. As of
Dec. 31, 2005, the Company operated a network of 310 collection
companies, 166 transfer stations, 169 active landfills and 57
recycling facilities in 37 states and Puerto Rico.
ORIENTAL FINANCIAL: Posts Second Quarter Net Income of US$1.32MM
----------------------------------------------------------------
Oriental Financial Group Inc. reported results for the second
quarter ended June 30, 2006.
Net income available to common shareholders totaled US$1.32
million, or US$0.05 per share diluted, compared to US$6.85
million, or US$0.28 per share diluted, in the March 2006 quarter
and US$9.40 million, or US$0.37 per share diluted, in the June
2005 quarter. The year ago quarter reflects a US$3.0 million
reduction in non-cash compensation expense, which increased net
income available to common shareholders for that period by
US$0.12 per share diluted. Book value per share at
June 30, 2006, equaled US$11.08, compared to US$11.19 at
March 31, 2006, and US$10.88 at June 30, 2005. Stockholders'
equity totaled US$340.3 million, versus US$343.6 million at
March 31, 2006, and US$338.8 million at June 30, 2005.
Total financial assets managed and owned amounted to US$7.94
billion at June 30, 2006, compared with US$7.61 billion at
March 31, 2006, and US$7.21 billion at June 30, 2005. Total
loans, net were a record US$1.15 billion, up 22.6% from the
first quarter and 27.7% higher as compared with the year ago
quarter. In line with the Group's strategy, loans as a
percentage of interest earning assets rose to 25% as of
June 30, 2006, compared to 21% as of March 31, 2006 and 22% as
of June 30, 2005.
"Results in the second quarter continued to reflect significant
increases in interest costs over the past year and a half,
including the 2006 second quarter," said Jose Rafael Fernandez,
President and CEO. "At the same time, we achieved continued
strong performance in non-interest income as a result of a 22%
increase in banking service revenues, a 25% rise in financial
service revenues, and more than 5-fold growth in investment
banking revenues, all compared to year ago levels. Financial
and banking services are benefiting from our successful strategy
to increase service levels and recurring revenues from new
customers, expand relationships and business with existing
customers, and cross selling. We also continued to benefit from
cost control efforts, with non-interest expenses down 12.3% year
over year, excluding the year-ago reduction in non-cash
compensation."
"While mortgage production was challenging due to higher
interest rates, a softer local economy and the Group's loan-to-
value standards, we were able to take advantage of our strong
capital position to purchase US$174.2 million in residential
mortgage loans. Credit quality remained strong, with a 35.6%
year over year decline in non-performing commercial loans and
conservative loan to value ratios in our residential mortgage
portfolio. Our favorable capital position also enabled the Group
to continue to declare our US$0.14 per share quarterly
dividend."
Unwinding of Interest Rate Swaps
Mr. Fernandez announced the Group's Asset and Liability
Management Committee or ALCO decided on July 2006 to unwind
interest rate swaps with an aggregate notional amount of US$640
million, which had been designated as cash flow hedges and had
maturity dates ranging from September 2010 to December 2010.
Management concluded that it was beneficial to Oriental to lock-
in the fair value of these swaps at approximately US$11 million.
The net gain of US$11 million on this transaction will continue
to be included in other comprehensive income, and will be
reclassified into earnings during the originally remaining term
of the swaps, starting in the September 2006 quarter and through
December 2010, by reducing the interest expense on borrowings.
ALCO will continue to actively monitor the Group's swap program.
At June 30, 2006, the Group had interest rates swaps with a
notional amount of US$1.3 billion of which US$675 million mature
in less than two years and US$640 million in more than two
years.
Mr. Fernandez noted the Group also is considering calling in
December 2006 its US$35 million of outstanding Oriental
Financial Statutory Trust I redeemable preferred securities,
which could result in annualized interest expense savings of
US$2.5 million.
Outlook
"While we anticipate that results over the balance of 2006 will
continue to be impacted by the interest rate increases during
the most recent quarters, we are encouraged by indications of an
improved interest rate environment that would benefit results in
2007," Mr. Fernandez said. "This would be aided by our program
to transition our investment securities portfolio and funding
sources, continued tight cost controls, and increasing banking
and financial services revenues."
Analysis of Second Quarter Income Statement
Net interest income for the quarter amounted to US$10.7 million
for a Net Interest Margin -- NIM -- of 0.96%, compared to
US$15.2 million (NIM of 1.37%) in the March 2006 quarter and
US$19.3 million (NIM of 1.89%) in the June 2005 quarter. The
decline in net interest income reflected the aforementioned
higher rates on interest bearing liabilities, primarily short-
term borrowings, which in the second quarter continued to
increase faster than yields on interest earning assets.
Interest income for the quarter totaled US$56.9 million, an
increase of 1.6% over the March 2006 quarter and 16.4% over the
June 2005 quarter, while interest expense of US$46.2 million
increased 13.3% quarter over quarter and 56.1% year over year.
Interest income from loans rose 12.7% over the March 2006
quarter and 22.6% over the June 2005 quarter, reflecting higher
volume and yield, in part due to variable rate loans. Interest
income from securities declined 2.9% from the March 2006
quarter, but increased 13.7% over the June 2005 quarter.
Within non-interest income, total banking and financial service
revenues amounted to US$8.1 million, up 6.5% from the March 2006
quarter and 21.4% ahead of the June 2005 quarter. Financial
service revenues of US$4.1 million were approximately 25%
greater than both the preceding and the year ago quarters.
Banking service revenues totaled US$2.5 million, up 15.4% and
21.7% from the preceding and year ago quarters, respectively.
Investment banking revenues of US$0.9 million compared to US$1.7
million in the March 2006 quarter and US$0.2 million in the year
ago quarter, while mortgage banking activities of US$0.6 million
compare to US$0.4 million in the preceding quarter and US$1.2
million in the year ago quarter.
"We've worked with our people to improve customer service and
develop relationship selling and cross selling, and we are now
beginning to benefit from these efforts," said Mr. Fernandez.
"Second quarter financial services revenues were up across the
board in trust, insurance, IRA, Keogh and brokerage. In
banking, revenues benefited from our improved commercial banking
platform for cash management for small to mid size businesses,
and new retail deposit products."
Non-interest expenses totaled US$14.8 million, compared to
US$14.9 million in the March 2006 quarter and US$16.9 million in
the June 2005 quarter (excluding non-cash compensation). Major
reductions occurred in compensation, which totaled US$5.6
million in the June 2006 quarter compared to US$6.2 million in
the March 2006 quarter and US$7.4 million (excluding non-cash
compensation) in the June 2005 quarter. Professional service,
occupancy and communication fees also declined. Non-interest
expenses declined despite higher accounting costs related to the
Group's change in its fiscal year; start-up expenses related to
new and expanded branches; and acceleration of amortization of
existing leasehold improvements as a result of the Group's May
2006 move to new corporate offices, where most non-branch
operations are now consolidated.
June 30 Balance Sheet Analysis
Investment securities at June 30, 2006, were US$3.49 billion,
slightly higher than at March 31, 2006, and 8.2% above
June 30, 2005. The nominal sequential change reflected the
Group's strategy of growing loans faster than investment
securities.
At June 30, 2006, mortgage loans were US$887.6 million, up 30.8%
sequentially and 41.2% year over year. Commercial loans, mainly
secured by real estate, were US$228.0 million, up 2.8%
sequentially, but down 3.7% year over year. Consumer loans were
US$39.1 million, up 2.6% sequentially and 30.1% higher year over
year.
Loan production and purchases amounted to US$262.2 million in
the June 2006 quarter, up 183.0% sequentially and 118.0% year
over year. Production totaled US$88.1 million, up 3.6% from the
March 2006 quarter, but 10.2% lower than a year ago. This
reflected mortgage loans of US$70.8 million versus US$63.2
million in the March 2006 quarter and US$78.0 million in the
June 2005 quarter; commercial loans of US$12.4 million versus
US$15.5 million in the March 2006 quarter and US$13.5 million in
the June 2005 quarter; and consumer loans of US$4.8 million
versus US$6.3 million in the March 2006 quarter and US$6.6
million in the June 2005 quarter.
At June 30, 2006, borrowings of US$3.23 billion were up 10.9%
from the end of the preceding quarter and 24.8% from the end of
the year ago quarter, reflecting increased use of repurchase
agreements. Deposits totaled US$1.21 billion, down 4.7% from
March 31, 2006 and 3.1% from June 30, 2005. The decline
reflected reduced IRA CD balances as the Group's customers
transferred funds into Oriental's Diversified Growth IRA
investment product, partially offset by the success of
Oriental's new savings account products.
Credit Quality
Credit quality continued to be favorable. Provision for loan
losses for the June 2006 quarter remained relatively stable at
US$0.9 million compared to US$1.1 million in the March 2006
quarter and US$0.9 million in the June 2005 quarter. The
provision is based on an analysis by the Group of the credit
quality and composition of its loan portfolio to maintain the
allowance at an adequate level. Net charge offs also remained
relatively small at US$0.6 million (0.26% of average loans
outstanding) for the June 2006 quarter versus US$0.6 million
(0.25%) for the March 2006 quarter and US$1.3 million (0.69%)
for the June 2005 quarter.
At June 30, 2006, non-performing loans were US$29.4 million,
down 1.9% from March 31, 2006, and down 4.9% from June 30, 2005.
Non-performing loans to total loans were 2.53%, compared to
3.16% in the March 2006 quarter and 3.39% in the June 2005
quarter.
Capital
The Group continues to be well-capitalized, with ratios
significantly above regulatory capital adequacy guidelines. At
June 30, 2006, Tier 1 Leverage Capital Ratio was 9.39% (more
than 2.3 times the minimum of 4.00%), Tier 1 Risk-Based Capital
Ratio was 29.60% (more than 7.4 times the minimum of 4.00%), and
Total Risk-Based Capital Ratio was 30.11% (more than 3.7 times
the minimum of 8.00%).
Mr. Fernandez noted that, as previously announced, the reporting
of June 2006 quarter results was delayed because of the extra
time needed earlier this year to complete and file the Group's
10-K report for the six-month transition period ended
Dec. 31, 2005. The current plan calls for the filing of the
second quarter 10-Q report in October, with future periods back
on a normal schedule.
Oriental Financial Group Inc. (NYSE: OFG) --
http://www.OrientalOnline.com/-- is a diversified financial
holding company operating under U.S. and Puerto Rico banking
laws and regulations. Oriental provides comprehensive financial
services to its clients throughout Puerto Rico and offers third
party pension plan administration through its wholly owned
subsidiary, Caribbean Pension Consultants, Inc. The Group's
core businesses include a full range of mortgage, commercial and
consumer banking services offered through 24 financial centers
in Puerto Rico, as well as financial planning, trust, insurance,
investment brokerage and investment banking services.
* * *
As reported in the Troubled Company Reporter on Jan. 13, 2006,
Standard & Poor's Ratings Services assigned its 'BB+' long-term
counterparty credit rating to Oriental Financial Group. S&P
also assigned its 'BBB-' counterparty rating to Oriental's
principal operating subsidiary, Oriental Bank & Trust. S&P said
the outlook for both entities is negative.
PEP BOYS: Seeks to Expand Credit Facility by US$120 Million
-----------------------------------------------------------
The Pep Boys - Manny, Moe & Jack has engaged Wachovia Capital
Markets, LLC, to structure, arrange and privately syndicate a
US$120 million increase to its current US$200 million senior
secured term loan facility, expected to be completed in October
or November 2006. The proceeds from the facility will be used
to repay other indebtedness.
The closing of the amendment and restatement of the Wachovia
facility is subject to a successful syndication, the execution
of definitive agreements, the absence of any material adverse
change in the Company's business or the financial markets and
certain other customary closing conditions.
CFO Harry Yanowitz said, "We expect that this facility will be
the final piece of the puzzle to extend the Company's debt
maturity profile."
Quarterly Dividend
On Sept. 7, 2006, the Company announced that its Board of
Directors approved the payment of the next quarterly dividend of
US$.0675 per share payable on Oct. 23, 2006, to shareholders of
record on Oct. 9, 2006. The annual dividend of US$.27 per share
currently yields approximately 2.1%.
The Board of Directors also approved the renewal of its share
repurchase program, which had approximately US$45,000,000 of its
original US$100,000,000 authorization remaining and was set to
expire on Sept. 30, 2006. The Company has not made any share
repurchases during fiscal 2006. Under the renewed program, the
Board reset the authority back to US$100,000,000 for repurchases
to be made from time to time in the open market or in privately
negotiated transactions through Sept. 30, 2007.
About Pep Boys
The Pep Boys - Manny, Moe & Jack -- http://pepboys.com/-- has
593 stores and more than 6,000 service bays in 36 states and
Puerto Rico. Along with its vehicle repair and maintenance
capabilities, the Company also serves the commercial auto parts
delivery market and is one of the leading sellers of replacement
tires in the United States.
* * *
As reported in the Troubled Company Reporter on Sept. 22, 2006,
Standard & Poor's Ratings Services affirmed its 'B+' rating on
Pep Boys-Manny, Moe & Jack's term loan after the company
announced plans to increase the size of the facility by US$120
million to US$320 million. Proceeds from the additional US$120
million term loan will be used to refinance its convertible
notes which mature in June 2007. At the same time, the rating
on the US$357.5 million asset-based revolver was raised to 'B+'
from 'B' to properly realign its ratings with the term loan and
to reflect Standard & Poor's increased comfort with the
collateral and terms securing this facility. The 'B-' corporate
credit and other ratings were affirmed; the outlook is negative.
=================================
T R I N I D A D & T O B A G O
=================================
BRITISH WEST: Trade Unions to Sign Workers' Separation Accord
-------------------------------------------------------------
The trade unions representing the 1,800 workers of British West
Indies Airlines aka BWIA will sign the Voluntary Separation from
Employment Packages with the airline's management, Radio Jamaica
reports.
The Trinidad & Tobago Express underscores that the BWIA
management sent the four unions the proposal on their final
decision for voluntary separation packages late last week. It
took two weeks of negotiations for BWIA and the unions to agree
on the separation packages.
The Express notes that the employees have received a very
favorable Voluntary Separation from Employment Package proposal
from the government.
Clyde Weatherhead -- the representative of the Communications,
Transport and General Workers Trade Union -- told The Express
that the executive discussed the proposals late last week.
Radio Jamaica relates that the employees will get a 50% increase
in their basic salaries for the period 2001-2006. They were
initially offered a 30% raise.
"What they finally offered for the VSEP (voluntary separation)
is a consolidation of the cost of living with the basic salary,
a 20% increase in salary, which will form the base, and then
they applied 30% enhancement on that. They (employees) can
safely say that they have gotten more than a 50% increase. This
is much better than what they (BWIA management) were previously
offering at the beginning of negotiations, which was just a 30%
increase on employees basic salary," aviation industry sources
told The Express.
The Express notes that the unions had proposed provisions like
monthly allowances, and whatever agreement they would have had
for the period 2001 to 2006 added to the fixed salary, with a
75% boost.
The Express emphasizes that the deadline for the agreement on
the separation packages is on Sept. 26. Unless the unions
accept what BWIA proposes for voluntary separation by the
deadline, the offer would be withdrawn and the workers will get
basic severance when the airline shuts down.
The unions did not get exactly what they wanted, according to
The Express. Union leaders, however, were pleased by the
government's offer.
Curtis John -- the head of the Aviation, Communication and
Allied Workers Union -- told The Express, "We got the
management's final decision last (Thursday) night and we are
looking at it. What I can say is that it is much better than
the previous offer and we find it favorable. I have
communicated to the union's membership about what the
management's offer is and well we should be signing on Tuesday.
It is not really a matter of choice at this point, because if we
do not agree by Tuesday we get nothing."
"All the unions have received a VSEP proposal from BWIA and they
are considering it over the weekend and meeting with their
lawyers. We also have meetings with our lawyers tomorrow
(today) and right through the weekend until Tuesday. This is in
an effort to ensure that all the legal issues and concerns will
be addressed so that everybody would understand the details of
the proposals and we are hoping that we can have it resolved on
Tuesday Sept. 26," The Express says, citing Dr. Shafeek Sultan-
Khan -- BWIA Legal/ Management consultant.
"The members are looking on the proposal favorably, but there
are still a few parts of the proposals that we need to clarify
in the document," Mr. Weatherhead told The Express.
The Express adds that the operations of Caribbean Airlines --
the new airline that will take the place of BWIA -- will start
on Jan. 1, 2007.
British West Indies aka BWIA was founded in 1940, and for more
than 60 years has been serving the Caribbean islands from
Trinidad and Tobago, the hub of the Americas, linking the twin
island republic and many other Caribbean islands with North
America, South America, the United Kingdom and Europe.
The airline has reportedly been losing US$1 million a week due
to poor operational management. An employee survey revealed
that lack of responsibility by the management is a major issue
in the company. A number of key employees moved to other
companies caused by a deadlock in the airline's negotiation with
its labor union.
The Trinidad & Tobago government, which owns 97.188% of BWIA,
decided to shut down the airline on Dec. 31, 2006, and reopen a
new airline that will be called Caribbean Airlines. The
government approved a substantial capital injection for the
creation of Caribbean Airlines.
=============
U R U G U A Y
=============
* URUGUAY: Grupo Empresarial Mulls Relocation of Plant
------------------------------------------------------
Grupo Empresarial Ence SA told AFX News Limited that is
considering relocating the pulp mill it is building in river
Uruguay after talking with the Uruguayan government.
Ence told AFX News that it intends to go ahead with the planned
construction of a wood pulp plant in Uruguay, but is planning to
relocate it.
AFX News relates that Ence believed the relocation would improve
logistics and efficiency.
"Ence has never doubted, and does not doubt now, that it will
build a paper mill in Uruguay," Juan Luis Arregui -- the
chairperson of Ence -- told AFX News, in response to claims that
it has plans to pull out of Uruguay.
* * *
On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018 'B+'.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Unit Inks Cooperation Accord with Bandes
----------------------------------------------------------------
PDV Caribe -- a unit of Petroleos de Venezuela, Venezuela's
state-owned oil firm -- signed a cooperation agreement with
Bandes, the nation's economic and social development bank,
Business News Americas reports.
Petroleos de Venezuela said in a statement that the accord is
aimed at strengthening Petrocaribe, which helps give Caribbean
nations access to Venezuelan hydrocarbons. The deal is designed
to provide additional funds for investment in Petrocaribe-
related infrastructure.
Alejandro Granado -- the head of PDV Caribe -- told BNamericas
that resources will help build:
-- terminals,
-- storage yards, and
-- transport and distribution facilities.
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.
* * *
Standard & Poor's said on July 17 that it may lower the
company's B+ foreign-currency debt rating in part because of the
absence of timely financial and operating information.
* VENEZUELA: Russky Alyuminiyum to Implement Bauxite Projects
-------------------------------------------------------------
Russky Alyuminiyum or RusAl plans to develop bauxite projects in
Venezuela, Vietnam, Brazil and Jamaica, El Universal reports,
citing Pavel Ulyanov, director of corporate strategies and
development.
The director said that the company plans to invest US$16.7
billion until 2013 in energy, mining and aluminum projects, El
Universal relates, citing Reuters. The officer added that the
company has enough funds for the projects without trading its
shares in the stock exchange.
"If needed, and if we cannot find the internal resources, we
will have to use an initial public offering as tool. But, under
the estimates we have now, we do not deem it necessary," Mr.
Ulyanov was quoted by Reuters as saying.
About RusAl
Headquartered in Moscow, Russia, Russky Alyuminiyum --
http://www.rusal.com/-- produces and smelts aluminium with
US$6.65 billion in revenues in 2005. The group produced 2.714
million tons of primary aluminium in 2005. RusAl employs about
50,000 people in nine Russian regions and thirteen countries.
About RusAl
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* VENEZUELA: Tax Authority Advises BP & Chevron of Back Taxes
-------------------------------------------------------------
Venezuela's Integrated National Customs and Tax Administration
Service -- Seniat -- advises ChevronTexaco nka Chevron Corp. and
the local subsidiary of British Petroleum, according to El
Universal.
The tax agency wants Chevron to pay US$19.4 million and BP to
pay US$37.2 million for back taxes pending since 2005, the same
report says, citing a press release from Seniat.
The back taxes account for miscalculated income tax in 2005,
Seniat said in the same release.
Since April, the tax authority has been inspecting domestic and
foreign oil firms under 32 operating agreements after the
current administration alleged some of the firms of tax evasion.
About Chevron
Headquartered in San Ramon, Calif., Chevron Corp. is one of the
worlds largest global energy companies operating in more than
180 countries.
About British Petroleum
Headquartered in London, England, BP plc fka British Petroleum
is one of four vertically integrated private sector oil, natural
gas, and petrol (gasoline) "supermajors" in the world.
* * *
Venezuela's foreign currency long-term debt is rated B1 by
Moody's, B+ by Standard & Poor's, and BB- by Fitch.
* BOND PRICING: For the Week of Sept. 18 -- Sept. 22, 2006
----------------------------------------------------------
Issuer Coupon Maturity Price
------ ------ -------- -----
ABC Rail Product 10.500% 01/15/04 1
ABC Rail Product 10.500% 12/31/04 1
Adelphia Comm. 3.250% 05/01/21 0
Adelphia Comm. 6.000% 02/15/06 0
Adelphia Comm. 7.500% 01/15/04 59
Adelphia Comm. 7.750% 01/15/09 60
Adelphia Comm. 7.875% 05/01/09 61
Adelphia Comm. 8.125% 07/15/03 60
Adelphia Comm. 8.375% 02/01/08 61
Adelphia Comm. 9.250% 10/01/02 61
Adelphia Comm. 9.375% 11/15/09 64
Adelphia Comm. 9.500% 02/15/04 59
Adelphia Comm. 9.875% 03/01/05 62
Adelphia Comm. 9.875% 03/01/07 63
Adelphia Comm. 10.250% 06/15/11 64
Adelphia Comm. 10.250% 11/01/06 60
Adelphia Comm. 10.500% 07/15/04 61
Adelphia Comm. 10.875% 10/01/10 61
Allegiance Tel. 11.750% 02/15/08 45
Allegiance Tel. 12.875% 05/15/08 48
Amer & Forgn Pwr 5.000% 03/01/30 59
Amer Color Graph 10.000% 06/15/10 70
Ames Dept. Stores 10.000% 04/15/06 0
Antigenics 5.250% 02/01/25 63
Anvil Knitwear 10.875% 03/15/07 69
Armstrong World 6.350% 08/15/03 66
Armstrong World 6.500% 08/15/05 66
Armstrong World 7.450% 05/15/29 67
Armstrong World 9.000% 06/15/04 66
ATA Holdings 13.000% 02/01/09 4
Autocam Corp. 10.875% 06/15/14 61
Avado Brands Inc 11.750% 06/15/09 1
Bank New England 8.750% 04/01/99 5
Bank New England 9.500% 02/15/96 11
BBN Corp 6.000% 04/01/12 0
Budget Group Inc 9.125% 04/01/06 0
Burlington North 3.200% 01/01/45 57
Calpine Corp 4.000% 12/26/06 25
Calpine Corp 4.750% 11/15/23 47
Calpine Corp 6.000% 09/30/14 39
Calpine Corp 7.625% 04/15/06 73
Calpine Corp 7.750% 04/15/09 72
Calpine Corp 7.750% 06/01/15 37
Calpine Corp 7.875% 04/01/08 74
Calpine Corp 8.500% 02/15/11 50
Calpine Corp 8.625% 08/15/10 50
Calpine Corp 8.750% 07/15/07 72
Calpine Corp 10.500% 05/15/06 72
Charter Comm Hld 10.000% 05/15/11 74
Chic East Ill RR 5.000% 01/01/54 50
CIH 9.920% 04/01/14 67
CIH 10.000% 05/15/14 67
CIH 11.125% 01/15/14 69
Clark Material 10.750% 11/15/06 0
Collins & Aikman 10.750% 12/31/11 9
Color Tile Inc 10.750% 12/15/01 0
Columbia/HCA 7.050% 12/01/27 72
Columbia/HCA 7.500% 11/15/95 70
Comcast Corp 2.000% 10/15/29 39
Comprehens Care 7.500% 04/15/10 65
Cray Research 6.125% 02/01/11 5
Dal-Dflt09/05 9.000% 05/15/16 28
Dana Corp 5.850% 01/15/15 73
Dana Corp 7.000% 03/15/28 75
Delco Remy Intl 9.375% 04/15/12 51
Delco Remy Intl 11.000% 05/01/09 57
Delphi Trust II 6.197% 11/15/33 68
Delta Air Lines 2.875% 02/18/24 26
Delta Air Lines 7.541% 10/11/11 38
Delta Air Lines 7.700% 12/15/05 26
Delta Air Lines 7.900% 12/15/09 26
Delta Air Lines 8.000% 06/03/23 26
Delta Air Lines 8.270% 09/23/07 75
Delta Air Lines 8.300% 12/15/29 27
Delta Air Lines 8.540% 01/02/07 73
Delta Air Lines 9.200% 09/23/14 73
Delta Air Lines 9.250% 03/15/22 26
Delta Air Lines 9.750% 05/15/21 25
Delta Air Lines 10.000% 06/01/11 58
Delta Air Lines 10.000% 06/05/13 74
Delta Air Lines 10.000% 08/15/08 26
Delta Air Lines 10.060% 01/02/16 73
Delta Air Lines 10.080% 06/16/07 65
Delta Air Lines 10.125% 05/15/10 26
Delta Air Lines 10.375% 02/01/11 23
Delta Air Lines 10.375% 12/15/22 22
Deutsche Bank NY 8.500% 11/15/16 69
Dov Pharmaceutic 2.500% 01/15/25 57
Dura Operating 8.625% 04/15/12 67
Dura Operating 9.000% 05/01/09 12
Dura Operating 9.000% 05/01/09 59
Duty Free Int'l 7.000% 01/15/04 0
Dyersburg Corp 9.750% 09/01/07 0
Eagle-Picher Inc 9.750% 09/01/13 74
Encysive Pharmac 2.500% 03/15/12 73
Epix Medical Inc. 3.000% 06/15/24 70
Fedders North AM 9.875% 03/01/14 68
Federal-Mogul Co. 7.375% 01/15/06 55
Federal-Mogul Co. 7.500% 01/15/09 57
Federal-Mogul Co. 8.160% 03/06/03 50
Federal-Mogul Co. 8.330% 11/15/01 58
Federal-Mogul Co. 8.370% 11/15/01 51
Federal-Mogul Co. 8.800% 04/15/07 58
Finova Group 7.500% 11/15/09 29
Ford Motor Co 7.400% 11/01/46 74
Ford Motor Co 7.700% 05/15/97 74
GB Property Fndg 11.000% 09/29/05 51
Graftech Intl 1.625% 01/15/24 74
Graftech Intl 1.625% 01/15/24 74
Gulf Mobile Ohio 5.000% 12/01/56 73
Gulf States Stl 13.500% 04/15/03 0
HNG Internorth 9.625% 03/15/06 36
Home Prod Intl 9.625% 05/15/08 60
Inland Fiber 9.625% 11/15/07 62
Insight Health 9.875% 11/01/11 44
Iridium LLC/CAP 10.875% 07/15/05 26
Iridium LLC/CAP 11.250% 07/15/05 26
Iridium LLC/CAP 13.000% 07/15/05 25
Iridium LLC/CAP 14.000% 07/15/05 23
Isolagen Inc. 3.500% 11/01/24 72
K&F Industries 9.625% 12/15/10 70
Kaiser Aluminum 9.875% 02/15/02 33
Kaiser Aluminum 12.750% 02/01/03 8
Kellstrom Inds 5.500% 06/15/03 0
Kitty Hawk Inc 9.950% 11/15/04 2
Kmart Corp 8.540% 01/02/15 28
Kmart Corp 8.990% 07/05/10 4
Kmart Corp 9.350% 01/02/20 10
Kmart Funding 8.800% 07/01/10 30
Liberty Media 3.750% 02/15/30 60
Liberty Media 4.000% 11/15/29 63
Lifecare Holding 9.250% 08/15/13 74
Macsaver Financl 7.400% 02/15/02 4
Macsaver Financl 7.600% 08/01/07 3
Macsaver Financl 7.875% 08/01/03 0
Merisant Co 9.500% 07/15/13 66
Merrill Lynch 10.000% 08/15/12 72
Movie Gallery 11.000% 05/01/12 62
MSX Int'l Inc. 11.375% 01/15/08 69
Muzak LLC 9.875% 03/15/09 56
New Orl Grt N RR 5.000% 07/01/32 67
Northern Pacific RY 3.000% 01/01/47 57
Northern Pacific RY 3.000% 01/01/47 57
Northwest Airlines 6.625% 05/15/23 50
Northwest Airlines 7.248% 01/02/12 20
Northwest Airlines 7.625% 11/15/23 50
Northwest Airlines 7.875% 03/15/08 51
Northwest Airlines 8.700% 03/15/07 49
Northwest Airlines 8.875% 06/01/06 52
Northwest Airlines 9.179% 04/01/10 23
Northwest Airlines 9.875% 03/15/07 53
Northwest Airlines 10.000% 02/01/09 50
Northwest Stl&Wir 9.500% 06/15/01 0
NTK Holdings Inc 10.750% 03/01/14 67
Oakwood Homes 8.125% 03/01/09 9
Oscient Pharm 3.500% 04/15/11 64
Outboard Marine 7.000% 07/01/02 0
Outboard Marine 9.125% 04/15/17 0
Outboard Marine 10.750% 06/01/08 4
Overstock.com 3.750% 12/01/11 74
Owens Corning 7.000% 03/15/09 55
Owens Corning 7.500% 05/01/05 57
Owens Corning 7.500% 08/01/18 57
Owens Corning 7.700% 05/01/08 57
Owens-Corning Fiber 8.875% 06/01/02 55
PCA LLC/PCA Fin 11.875% 08/01/09 24
Pegasus Satellite 9.625% 10/15/49 11
Pegasus Satellite 9.750% 12/01/06 11
Phar-mor Inc 11.720% 09/11/02 0
Piedmont Aviat 10.250% 01/15/49 1
Pixelworks Inc 1.750% 05/15/24 71
Plainwell Inc 11.000% 03/01/08 2
Pliant Corp 13.000% 07/15/10 40
Polaroid Corp. 7.250% 01/15/07 0
Polaroid Corp. 11.500% 02/15/06 0
Primus Telecom 3.750% 09/15/10 48
Primus Telecom 8.000% 01/15/14 63
PSINET Inc 10.500% 12/01/06 0
PSINET Inc 11.000% 08/01/09 0
Radnor Holdings 11.000% 03/15/10 24
Railworks Corp 11.500% 04/15/09 1
Read-Rite Corp. 6.500% 09/01/04 15
RJ Tower Corp. 12.000% 06/01/13 39
Salton Inc 12.250% 04/15/08 74
Solectron Corp 0.500% 02/15/34 73
Tekni-Plex Inc. 12.750% 06/15/10 74
Tom's Foods Inc 10.500% 11/01/04 9
Toys R Us 7.375% 10/15/18 72
Tribune Co 2.000% 05/15/29 65
Triton Pcs Inc. 8.750% 11/15/11 71
Triton Pcs Inc. 9.375% 02/01/11 72
Tropical Sportsw 11.000% 06/15/08 7
Twin Labs Inc. 10.250% 05/15/06 2
United Air Lines 7.270% 01/30/13 56
United Air Lines 7.870% 01/30/19 54
United Air Lines 9.020% 04/19/12 56
United Air Lines 9.350% 04/07/16 30
United Air Lines 9.560% 10/19/18 61
United Air Lines 10.020% 03/22/14 44
United Air Lines 10.110% 02/19/49 44
United Air Lines 10.125% 03/22/15 50
United Homes Inc 11.000% 03/15/05 0
US Air Inc. 10.300% 07/15/49 6
US Air Inc. 10.550% 01/15/49 45
US Air Inc. 10.700% 01/01/49 22
US Air Inc. 10.700% 01/15/49 23
US Air Inc. 10.700% 01/15/49 44
US Air Inc. 10.700% 01/15/49 45
US Air Inc. 10.700% 01/15/49 45
US Air Inc. 10.700% 01/15/49 45
US Air Inc. 10.750% 01/01/49 0
US Air Inc. 10.750% 01/15/49 24
USAutos Trust 5.100% 03/03/11 75
Venture Holdings 9.500% 07/01/05 1
Venture Holdings 11.000% 06/01/07 0
Vesta Insurance Group 8.750% 07/15/25 10
Werner Holdings 10.000% 11/15/07 22
Westpoint Steven 7.875% 06/15/05 0
Westpoint Steven 7.875% 06/15/08 0
Wheeling-Pitt St 6.000% 08/01/10 69
Winn-Dixie Store 8.875% 04/01/08 70
Winsloew Furniture 12.750% 08/15/07 26
Xerox Corp. 0.570% 04/21/18 34
Ziff Davis Media 12.000% 07/15/10 40
***********
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
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Copyright 2006. All rights reserved. ISSN 1529-2746.
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