/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/060927.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, September 27, 2006, Vol. 7, Issue 192 Headlines A R G E N T I N A ACXIOM CORP: Charles Morgan Adopts New 10b5-1 Trading Plan VALEANT PHARMA: Moody's Assigns Loss-Given-Default Ratings BALLY TECH: Providing Casino Management System to Mohegan Sun CEREALTAIM SA: Verification of Proofs of Claim Is Until Nov. 17 FINGERENT SA: Deadline for Verification of Claims Is on Nov. 10 IMC GROUP: Extends Verification of Proofs of Claim Until Nov. 24 GRUPO ELEKTRA: Will Run Banco Azteca Stores in Argentina in 2007 NOVA DONNA: Trustee Verifies Proofs of Claim Until Nov. 28 RODALIA SCA: Last Day for Verification of Claims Is on Oct. 16 SEFRI SRL: Seeks for Court Approval to Reorganize Business B A H A M A S COMPLETE RETREATS: Panel Wants DIP Objection Extended to Oct. 26 COMPLETE RETREATS: Selects CIT Capital as Real Estate Advisor WINN-DIXIE: Wants Court to Retroactively Approve 12 Agreements WINN-DIXIE: Wants 26 Contracts & Leases Rejected on Oct. 5 B E L I Z E * BELIZE: Central American Bank to Invest US$2 Bil. in Country B O L I V I A * BOLIVIA: Issues Positive Report on Eaglecrest's Project B R A Z I L BANCO BRADESCO: Unit Finalizes Services Pact with Luigi Bertolli BANCO MERCANTIL: Moody's Rates US$300M Global Note Program at B1 BRASKEM SA: Declares Pricing of Tender Offer for 12.50% Notes GERDAU SA: Antitrust Agency Ruling on Fines on Hold GULFMARK OFFSHORE: Moody's Lifts Rating on US$160M Notes to B1 IWT TESORO: Bank of America Credit Line Increased to US$26.5 Mln SANTANDER BANESPA: Lending BRL1B to Small Enterprises This Year VARIG S.A.: Appeals Court Allows ANAC to Redistribute Routes VARIG S.A.: Cuts Fare on Five Local & Two International Flights * BRAZIL: Russky Alyuminiyum to Implement Bauxite Projects C A Y M A N I S L A N D S AATRIUM FUND: Shareholders Gather for a Final Meeting on Oct. 16 A.T.S. ARGUS: Deadline for Proofs of Claim Filing Is on Oct. 18 CML FUND: Creditors Have Until Oct. 18 to File Proofs of Claim DALAV LIMITED: Last Day for Proofs of Claim Filing Is on Oct. 18 DIGIMARC ID: Creditors Must Submit Proofs of Claim by Oct. 18 FFP WEST: Shareholders Convene for a Final Meeting on Oct. 11 HENDERSON UK: Last Day to File Proofs of Claim Is on Oct. 11 LINK INVESTMENTS: Liquidator Presents Wind up Accounts on Oct. 9 NOTTINGHAM LIMITED: Final Shareholders Meeting Is Set for Oct. 9 PEACE TECH: Extraordinary Shareholders Meeting Will be Tomorrow PHYSICIANS SECURITY: Proofs of Claim Filing Is Until Oct. 18 PROGRESSIVE GROWTH: Sets Final Shareholders Meeting on Oct. 11 SCL NAUTILUS: Proofs of Claim Filing Deadline Is Set for Oct. 18 SPHERIC INTERNATIONAL: Last Shareholders Meeting Is on Oct. 11 TAMARIX INVESTMENTS: Final Shareholders Meeting Is on Oct. 9 C H I L E ARAMARK CORP: Included in InformationWeek 500 List DIRECTV GROUP: Chilean Unit Plans Growth Through New Alliances HERBALIFE INT'L: Moody's Assigns Loss-Given-Default Rating C O L O M B I A ANIXTER INT'L: Settling Income Tax Liabilities with the IRS C O S T A R I C A DENNY'S CORP: Moody's Withdraws B2 Corporate Family Rating C U B A * CUBA: Heads of Two Cos. Fired to Strengthen State Control D O M I N I C A N R E P U B L I C EMPRESA GENERADORA: Fitch Rates Proposed US$125 Mil. Notes at B- JETBLUE AIRWAYS: Launches Discount Card from American Express E L S A L V A D O R TARGUS GROUP: Moody's Assigns Loss-Given-Default Rating G U A T E M A L A * GUATEMALA: Will Strengthen Bilateral Relations with Russia H A I T I * HAITI: Minister Visits Brazil to Learn About Biodiesel Program H O N D U R A S * HONDURAS: Expects Patuca Hydro Project Impact Study in Feb. J A M A I C A * JAMAICA: Russky Alyuminiyum to Implement Bauxite Projects M E X I C O AMSCAN HOLDINGS: Moody's Assigns Loss-Given-Default Rating CINRAM INT'L: Board Says No to Amaranth's Sale Advice CINRAM INTERNATIONAL: Paying Cash Distributions on Oct. 16 DELTA AIR: Adds Daily Nonstop Service to Guadalajara, Mexico DIRECTV INC: Opens New Technical Call Center to Support Growth GRUPO MEXICO: Blockade on Southern Copper's Railroad Ends GUESS? INC: Enters Into a Joint Venture with Grupo Axo in Mexico GRUPO TMM: Closes US$200MM Securitization Facility of 2007 Notes MERIDIAN AUTOMOTIVE: Asks Court to Approve Disclosure Statement MERIDIAN AUTO: Wants Uniform Solicitation Procedures Approved NEWPARK RESOURCES: Names James Braun as Vice President and CFO VITRO SA: Plans to Swap US$225MM in 11.75% Notes Due 2013 * MEXICO: IFC Grants MXN130.5MM to Irapuato-La Piedad Highway P A N A M A CHIQUITA BRANDS: Says Spinach Issue to Hurt Quarterly Profit CHIQUITA BRANDS: Suspending Quarterly Dividend to Reduce Debt GRUPO BANISTMO: Acquisition May Open Doors for Competitors P E R U * PERU: Fonafe Will Sell 39.95% Stake in Local Power Firm * PERU: IDB Picks ICF Int'l to Perform Audit on Camisea Project P U E R T O R I C O DRESSER INC: Commences Cash Tender Offer for 9-3/8% Sr. Notes NBTY INC: Moody's Assigns Loss-Given-Default Rating RENT-A-CENTER: Elects Leonard Roberts to Board of Directors SIMMONS BEDDING: Buying Simmons Canada from SCI for CDN$130MM ZALE CORP: U.S. SEC Terminates Investigation T R I N I D A D & T O B A G O BRITISH WEST: Gov't to Spend Over US500MM to Start New Airline ROYAL CARIBBEAN: Redeeming Zero Coupon Convertible Notes U R U G U A Y PETROLEO BRASILEIRO: Launches First Service Station in Uruguay V E N E Z U E L A PETROLEOS DE VENEZUELA: Launches Cigma Gas Complex Construction PETROLEOS DE VENEZUELA: Supplying Half of Carribean's Oil Needs * VENEZUELA: Introduces New Industrial Complex * VENEZUELA: Trinidad Business Sector Mulls Gas Importation * PricewaterhouseCoopers Launches Valuation Services in the U.S. * Large Companies with Insolvent Balance Sheets - - - - - ================= A R G E N T I N A ================= ACXIOM CORP: Charles Morgan Adopts New 10b5-1 Trading Plan ---------------------------------------------------------- Charles D. Morgan. Acxiom Corp.'s head has adopted a new pre-arranged stock trading plan to sell a portion of his company stock over a 10-month period to retire personal debt. The stock trading plan was adopted in accordance with the guidelines specified under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934. Under the rules of the plan, Mr. Morgan may sell 50,000 shares per month between September 2006 and June 2007, amounting to 15% of the approximately 3,368,000 shares he currently holds. Mr. Morgan has not sold any stock since April 2005. He entered into a 10b5-1 sales plan in April 2004 that called for the sale of 50,000 shares per month through July 2005. He terminated the plan in April 2005, leaving 150,000 shares unsold. All of Mr. Morgan's trades will be publicly reported on Forms 144 and Forms 4 filed with the Securities and Exchange Commission. 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. VALEANT PHARMA: 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. pharmaceutical sector last week, the rating agency confirmed its B1 Corporate Family Rating for Valeant Pharmaceuticals International, and its Ba3 rating on the company's US$300 million issue of 7% senior unsecured notes due 2011. Additionally, Moody's assigned an LGD3 rating to those bonds, suggesting noteholders will experience a 39% loss in the event of a default. 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%). Headquartered in Costa Mesa, California, Valeant Pharmaceuticals International -- http://www.valeant.com-- is a global specialty pharmaceutical company with US$823 million of 2005 revenues. The company has offices in Argentina. BALLY TECH: Providing Casino Management System to Mohegan Sun ------------------------------------------------------------- Bally Technologies, Inc., has signed a contract with Mohegan Sun at Pocono Downs to provide a complete casino management system, an advanced suite of Bally Power Bonusing products and an initial order of 1,100 iVIEW touch-screen displays for all of the slot machines planned for the racino resort's opening later this year. In addition, Bally secured an order for more than 20 percent of the initial slot mix, including premium titles such as: -- Hot Shot Progressive, -- Cash Wheel, -- Hee Haw and -- S&H Green Stamps. Mohegan Sun at Pocono Downs also became the first casino to order Bally's new ALPHA Elite S9C games, which are powered by a breakthrough technology that allows dozens of classic Bally reel-spinning titles from its legacy S6000 line to run on the advanced ALPHA OS without any additional game development. The Bally game mix also includes a variety of S9000 reel-spinners, M9000 upright video slots and CineVision wide-screen video slots. Mohegan Sun at Pocono Downs is currently a harness racing facility located on 400 acres in Wilkes-Barre, Pa., and plans to be among the first racing locations in the state to open with slot machines. Currently undergoing a major expansion that will allow for the eventual installation of 2,000 machines, Mohegan Sun at Pocono Downs conducted a thorough competitive review before selecting Bally CMS(R) / SMS(R) and its Bally Power Bonusing technology. Mohegan Sun at Pocono Downs plans to place a high level of emphasis on its player's club, player tracking and player marketing capabilities, including the implementation of Bally Power Rewards, a configurable player-centric bonusing technology that rewards guests using their player's club cards. To complement Bally Power Rewards, Mohegan Sun at Pocono Downs will integrate the iVIEW displays to create a personalized multimedia experience for each patron as they play at the slot machine. "We looked at a number of vendors in our evaluation process and assessed a very detailed list of systems criteria," said Robert Soper, President and General Manager of Mohegan Sun at Pocono Downs. "We chose Bally because of its long-term demonstrated commitment to gaming systems technology, product enhancements and customer service. The Bally Power Bonusing features are excellent tools for creating excitement on the floor, and Bally's comprehensive CMS technology will allow multi-site player card functionality to be used in conjunction with Mohegan Sun, one of the nation's premier gaming destinations located in Uncasville, Conn." "We're very proud to extend our long-standing relationship with Mohegan Sun and help its team succeed in a new market," said Ramesh Srinivasan, Executive Vice President of Systems. "Mohegan Sun is obviously one of the most highly respected names in the gaming industry, partly because of their innovative thinking and creative use of technology. Bally's player-centric design enables them to capitalize on the concept of tailored bonuses for the patron, thereby effectively managing marketing expenses and enhancing the player experience." Headquartered in Las Vegas, Bally Technologies, Inc., -- http://www.BallyTech.com/-- designs, manufactures, operates and distributes advanced gaming devices, systems and technology solutions worldwide. Bally's product line includes reel- spinning slot machines, video slots, wide-area progressives and Class II, lottery and central determination games and platforms. Bally also offers an array of casino management, slot accounting, bonusing, cashless and table management solutions. The company also owns and operates Rainbow Casino in Vicksburg, Miss. Bally Technologies' South American operations is located in Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 18, 2006, Standard & Poor's Ratings Services held its ratings on Bally Technologies Inc., including the 'B' corporate credit rating, on CreditWatch with negative implications. CEREALTAIM SA: Verification of Proofs of Claim Is Until Nov. 17 --------------------------------------------------------------- Ricardo Norberto Belli, the court-appointed trustee for Cerealtaim S.A.'s bankruptcy proceeding, will verify creditors' proofs of claim until Nov. 17, 2006. Mr. Belli will present the validated claims in court as individual reports on Feb. 2, 2007. A court 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 Cerealtaim and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Cerealtaim's accounting and banking records will follow on March 16, 2007. Mr. Belli is also in charge of administering Cerealtaim's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Ricardo Norberto Belli Avenida Santa Fe 962 Buenos Aires, Argentina FINGERENT SA: Deadline for Verification of Claims Is on Nov. 10 --------------------------------------------------------------- Carlos Menendez, the court-appointed trustee for Fingerent S.A. Sociedad Gerente de Fondos Comunes de Inversion's bankruptcy case, will verify creditors' proofs of claim until Nov. 10, 2006. Under the Argentine bankruptcy law, Mr. Menendez 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 Fingerent S.A. and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Menendez will also submit a general report that contains an audit of Fingerent's accounting and banking records. The report submission dates have not been disclosed. Fingerent S.A. was forced into bankruptcy at the behest of Carlos Scheatenger, whom it owes US$12,249. Clerk No. 38 assists the court in the proceeding. The debtor can be reached at: Fingerent S.A. Sociedad Gerente de Fondos Comunes de Inversion Esmeralda 288 Buenos Aires, Argentina The trustee can be reached at: Carlos Menendez Ventura Bosch 7098 Buenos Aires, Argentina IMC GROUP: Extends Verification of Proofs of Claim Until Nov. 24 ---------------------------------------------------------------- Court No. 17 in Buenos Aires extended the verification of creditors' proofs of claim against bankrupt company IMC Group S.A. until Nov. 24, 2006. The verification phase was previously set to end on Sept. 14, 2006. Ruben Angel Scaletta remains as the court-appointed trustee for the case. Mr. Scaletta will submit the validated claims in court as individual reports on Dec. 26, 2006. Court No. 17 will determine if the verified claims are admissible, taking into account the trustee's opinion and the challenges and objections raised by IMC Group and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of IMC Group's accounting and banking records will follow on Feb. 23, 2007. As reported in the Troubled Company Reporter-Latin America on Aug. 10, 2006, IMC Group was forced into bankruptcy at the request of Diseno Grafico Sociedad de Hecho, which it owes US$26,239.12. Clerk No. 33 assists the court in the proceeding. The debtor can be reached at: IMC Group S.A. Florida 826 Buenos Aires, Argentina The trustee can be reached at: Ruben Angel Scaletta Piedras 1077 Buenos Aires, Argentina GRUPO ELEKTRA: Will Run Banco Azteca Stores in Argentina in 2007 ---------------------------------------------------------------- A spokesperson of Grupo Elektra told Business News Americas that the company plans to operate its Banco Azteca banking franchise and retail stores in Argentina in 2007. BNamericas relates that the spokesperson said that Grupo Elektra is considering putting up banking and retail stores businesses in Brazil, Guatemala, El Salvador and Peru. Grupo Elektra had requested in May a banking license from CNBS -- the Honduran financial regulator -- in a second attempt to enter the nation's banking system, after the first request was denied in January, 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. NOVA DONNA: Trustee Verifies Proofs of Claim Until Nov. 28 ---------------------------------------------------------- Jose Maria Colace, the court-appointed trustee for Nova Donna S.R.L.'s bankruptcy proceeding, will verify creditors' proofs of claim until Nov. 28, 2006. Mr. Colace will present the validated claims in court as individual reports on Feb. 13, 2007. A court 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 Nova Donna and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of Nova Donna's accounting and banking records will follow on March 27, 2007. Mr. Colace is also in charge of administering Nova Donna's assets under court supervision and will take part in their disposal to the extent established by law. The trustee can be reached at: Jose Maria Colace Bernardo de Irigoyen 330 Buenos Aires, Argentina RODALIA SCA: Last Day for Verification of Claims Is on Oct. 16 -------------------------------------------------------------- Roque Alberto Pepe, the court-appointed trustee for Rodalia S.C.A.'s reorganization proceeding, will verify creditors' proofs of claim until Oct. 16, 2006. Under the Argentine bankruptcy law, Mr. Pepe is required to present the validated claims in court as individual reports. Court No. 22 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 Rodalia and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Pepe will also submit a general report that contains an audit of Rodalia's accounting and banking records. The report submission dates have not been disclosed. On June 30, 2007, Rodalia's creditors will vote on a settlement plan that the company will lay on the table. Clerk No. 43 assists the court in the proceeding. The debtor can be reached at: Rodalia S.C.A. Montevideo 451 Buenos Aires, Argentina The trustee can be reached at: Roque Alberto Pepe Avenida Argentina 5785 Buenos Aires, Argentina SEFRI SRL: Seeks for Court Approval to Reorganize Business ---------------------------------------------------------- A court in Buenos Aires is studying the merits of Sefri S.R.L.'s petition to reorganize its business after defaulting on its obligations. The petition, once approved by the court, will allow Sefri to negotiate a settlement with its creditors in order to avoid a straight liquidation. The debtor can be reached at: Sefri S.R.L. La Rioja 636 Buenos Aires, Argentina ============= B A H A M A S ============= COMPLETE RETREATS: Panel Wants DIP Objection Extended to Oct. 26 ---------------------------------------------------------------- The Official Committee of Unsecured Creditors in Complete Retreats LLC and its debtor-affiliates' chapter 11 cases asks the U.S. Bankruptcy Court for the District of Connecticut to further extend, until Oct. 26, 2006, the period for the Committee to object to the Debtors' DIP financing pact with The Patriot Group, LLC, and LPP Mortgage, Ltd. The Committee says it needs the extension to enable it to carry out a thorough investigation of matters relevant to the Debtors' prepetition financing. The Honorable Alan H.W. Shiff previously gave the Committee and any party-in-interest with requisite standing until Oct. 3, 2006, to object to the validity of the Prepetition Obligations or assert any Lender Claims. Kate K. Simon, Esq., at Bingham McCutchen LLP, in Hartford, Connecticut, notes that the Court may, however, extend the Objection Period for up to two successive periods of not more than 30 days each for good cause shown. Ms. Simon emphasizes that among other tasks, the Committee needs to: -- gather information and analyze numerous real estate transactions, many of which involve overseas properties and documentation in foreign languages; and -- conduct examinations of individuals with knowledge of the estate transactions. The Patriot and LPP Mortgage, the lenders for the US$10,000,000 DIP Financing Facility, consent to the Committee's request, Ms. Simon informs the Court. About Complete Retreats Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor- affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed US$308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) COMPLETE RETREATS: Selects CIT Capital as Real Estate Advisor ------------------------------------------------------------- Complete Retreats LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Connecticut for permission to employ CIT Capital USA, Inc., as their exclusive real estate advisor and disposition agent, nunc pro tunc to Aug. 18, 2006. The Debtors are exiting certain of their properties. In connection with reorganization efforts, the Debtors hope to sell the Properties in the near future. Holly Felder Etlin, the Debtors' chief restructuring officer, relates that the Properties are not popular with the Debtors' members and are often vacant. Ms. Etlin notes that the Debtors do not have the internal expertise, infrastructure, or staff necessary to analyze or market the Properties competently and cost-effectively. Members of CIT's Commercial Real Estate group have significant experience in the disposal of real property assets, Ms. Etlin tells the Court. Moreover, CIT has a good reputation, which will lend credibility to the contemplated sale process. The Debtors will employ CIT pursuant to the terms of a Letter Agreement dated Aug. 18, 2006, between the parties. The CIT Letter Agreement is the result of arm's-length negotiations between the Debtors and CIT. Ms. Etlin states that the Debtors selected CIT only after considering several other candidates with similar expertise. Among others, CIT will: -- provide an experienced team to value the Properties; -- craft appropriate marketing, disposition, and auction processes to sell the Properties; -- hire local brokers to assist in the sale process and save the Debtors from having to employ brokers under Section 327 of the Bankruptcy Code; -- meet and negotiate with parties who are interested in acquiring the Properties; -- negotiate stalking horse sale contracts, as necessary; and -- identify target buyers for the Properties. CIT will also establish a "fast-track" disposition for the Properties. Specifically, for certain properties in Nevis, Abaco, the Dominican Republic, and the United States, CIT will complete its due diligence, review the Debtors' objectives, and market or auction those Properties within 120 days. Upon the closing of a sale of each of the Properties, the Debtors will pay CIT a Transaction Fee equal to 7% of the gross proceeds from that sale. Any fees for local brokers retained will be included in the Transaction Fee. If the Debtors were to enter into a strategic partnership or merger that does not include the sale of any Property, CIT will be entitled to a US$75,000 Incentive Fee for advisory services performed. The Debtors will also reimburse CIT for all its out-of-pocket expenses, including marketing and travel expenses and reasonable attorneys' fees. The Debtors further ask the Court not to subject the Transaction Fees to any holdbacks and not to require CIT to file and serve detailed time reports or timesheets since the firm is not seeking any monthly fees for its services. Dennis R. Irvin, CIT's executive vice president, assures the Court that the firm has no connection with, and holds no interests adverse to, the Debtors, their creditors, or any other party-in-interest. Accordingly, CIT is a "disinterested person" as referenced in Section 327(a) of the Bankruptcy Code and as defined by Sections 101(14) and 1107(b) of the Bankruptcy Code. About Complete Retreats Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor- affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed US$308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) WINN-DIXIE: Wants Court to Retroactively Approve 12 Agreements -------------------------------------------------------------- Winn-Dixie Stores, Inc., and its debtor-affiliates ask the U.S. Bankruptcy Court for the Middle District of Florida to approve certain agreements either terminating or assigning the Debtors' Leases and Subleases, retroactively to the date these agreements were executed. Before their bankruptcy filing, the Debtors leased each of these stores from the landlords and subleased them to other parties: Store No. Landlord Subtenant --------- -------- --------- 62 (FL) John C. Strougo N/A 692 (FL) Crystal Beach Plaza Investors Nielsen Media Research 992 (MA) WBFV, Inc. Food Lion LLC 1487 (MS) 145 Associates, Ltd. Piggly Wiggly Alabama Distributing Co. 1563 (LA) P.S. Franklin, Ltd. N/A 1564 (LA) W-D Oakdale, LLC Real Estate, Inc. 1682 (KY) Chester Dix Pikeville Corp. K-VA-T Food Stores 1838 (GA) JA-Rivermont, et al. (building) N/A 1838 (GA) Rivermont Square Assoc. (land) N/A 1987 (GA) Holbrook Heritage Hills LP All American Quality Foods, Inc. 1991 (GA) Marketplace Club LLC Goodwill Industries of North Georgia, Inc. 2047 (NC) BHBS, Inc. Philip & Karen Lawson & Michael & Tammy Page D.J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, relates that, during the pendency of the Debtors' Chapter 11 cases, each of the Landlords and Subtenants have entered into agreements with the Debtors either terminating or assigning the Leases and Subleases. The postpetition agreements are: Store No. Agreement Effective Date --------- --------- -------------- 62 Lease Termination Agreement 11/30/2005 692 Assignment and Release of Lease Obligations Agreement 8/31/2006 992 Sublease Termination Agreement 9/09/2005 1487 Assignment and Lease Assumption; Sublease Termination Agreement & Notice of Lease Assignment 10/31/2005 1563 Lease Termination Agreement 8/19/2005 1564 Assignment and Lease Assumption & Sublease Assignment 10/31/2005 1682 Assignment and Lease Assumption; Sublease Termination Agreement & Notice of Lease Assignment 12/31/2005 1838-Bldg. Land Lease Modification & Sublease Termination Agreement; Assignment & Assumption of Land Lease & Sublease 6/01/2006 1838-land Land Lease Modification & Sublease Termination Agreement; Assignment & Assumption of Land Lease & Sublease 6/01/2006 1987 Assigment & Lease Assumption; Sublease Termination Agreement 12/28/2005 1991 Lease Termination Agreement; Sublease Termination Agreement 12/31/2005 2047 Sublease Termination Agreement 8/10/2005 Pursuant to the Agreements, the Landlords and Subtenants have also waived all claims they may have against the Debtors. Mr. Baker tells the Court that, by entering into the Agreements, Winn-Dixie will avoid any and all claims by the Landlords and Subtenants for any damages arising under the Leases and Subleases. 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. 53; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) WINN-DIXIE: Wants 26 Contracts & Leases Rejected on Oct. 5 ---------------------------------------------------------- Pursuant to Sections 105(a) and 365 of the Bankruptcy Code, Winn-Dixie Stores, Inc., and its debtor-affiliates seek consent from the U.S. Bankruptcy Court for the Middle District of Florida 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 for free at: http://ResearchArchives.com/t/s?122a 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, 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 L I Z E =========== * BELIZE: Central American Bank to Invest US$2 Bil. in Country -------------------------------------------------------------- The Central American Bank for Economic Integration aka CABEI will invest US$2 billion in Belize for poverty alleviation, globalization, and integration process, Love FM reports. Love FM relates that the Association Agreement was signed between the government of Belize and CABEI on Sept. 25 in Belmopan, Belize. Belize's Ministry of National Security collaborates directly with CABEI, Love FM notes. Mark Espat -- the Minister of National Security -- told Love FM on Monday, "The Government of Belize has been interested for sometime to non-founding beneficiary member of the Central American Bank for Economic Integration and for today's signing confirms Belize's membership. We are please to have in the country the president of CABEI who is here along with the Prime Minister and Minister of Finance to sign this agreement. The three areas of focus of CABEI are as you said poverty alleviation the process of integration and the trade and the trade competitiveness for globalization. Belize, the Government as well as the Private Sectors with respect to benefit from our membership in this bank, the investments that they will make will be across all member countries not just in Belize and at this point, we are signing the agreement to confirm our membership." "In the coming months and years the specific programs that Belize will be able to participate in will be stretched out and we will know a lot more of exactly which areas these investments will take place," Minister Espat told Love FM. * * * Moody's Investor Service assigned these ratings to Belize: -- CC LT Foreign Bank Depst Caa3 -- CC LT Foreign Curr Debt Caa3 -- CC ST Foreign Bank Depst NP -- CC ST Foreign Curr Debt NP -- LC Curr Issuer Rating Caa3 -- FC Curr Issuer Rating Caa3 -- Foreign Currency LT Debt Caa3 -- Local Currency LT Debt Caa3 * * * As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2006, Standard & Poor's lowered its long-term foreign currency sovereign credit rating on Belize to 'CC' from 'CCC-' while leaving its outlook on the rating at negative. Standard & Poor's affirmed its 'CCC+' long-term local currency sovereign credit rating on Belize and revised its outlook on the rating to stable from negative. The 'C' short-term sovereign credit ratings on the sovereign were affirmed by S&P. ============= B O L I V I A ============= * BOLIVIA: Issues Positive Report on Eaglecrest's Project --------------------------------------------------------- The Mining Corporation of Bolivia -- Corporacion Minera de Bolivia aka COMIBOL -- recently conducted a full inspection of the facilities and operations at Eaglecrest's San Simon project on orders from Bolivian President Evo Morales. The company is pleased to report that it was found to be in complete compliance with all Bolivian laws and regulations, including mining and environmental regulations and tax laws. The COMIBOL inspection team visited Eaglecrest's Santa Cruz office and then spent a week monitoring the company's operations at the San Simon project. Tor Bruland, the company's Vice President of Operations, provided assistance to COMIBOL's inspectors, who also reviewed documents related to the technical operation of the project. The Ministry of Mines and COMIBOL also had their lawyer examine all of Eaglecrest's legal documents, including Joint Venture agreements, concession information, tax receipts and annual financial statements. COMIBOL subsequently issued a report confirming that all of Eaglecrest Exploration's operations are being conducted in accordance with the laws of Bolivia, that the Company holds all permits required for diamond drilling, underground exploration development, bulk sampling and operation of the gold recovery plant, and that all taxes due have been paid. The report further stipulated that Eaglecrest was paying appropriate attention to the local communities' needs. President Morales' order for inspection is in keeping with his policy to ensure that all international companies are operating legally and according to the laws in Bolivia. Dr. Jorge Forgues Valverde, the President of Eaglecrest Exploration Bolivia S.A. and the Company's Bolivian legal counsel, welcomed President Morales' inspection order, reporting, "In my opinion, this was a great opportunity for the Company to officially demonstrate to the highest level of the government that we do operate fully within the laws in all parts of our operations. As expected, the inspection confirmed this and the outcome established once and for all that the company is in compliance with the law. Now, the Bolivian President and all the mining and environmental authorities know that our Company is in compliance with all aspects of Bolivian laws. They also know that the company has full support from all residents within a 50 kilometer radius of our San Simon project." Eaglecrest's San Simon project includes a total area of approximately 300 square km and is located in northeast Bolivia. Corporacion Minera de Bolivia aka Comibol is undergoing a restructuring initiated by the Bolivian government. Bolivian President Evo Morales' initiative for the company's restructuring would take time as currently Comibol mines are under joint venture contracts or leasing agreements. Comibol has US$85 million in assets including equipment and machinery, which cannot be used by small and medium-scale miners and cooperatives. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date ------ ----------- Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 =========== B R A Z I L =========== BANCO BRADESCO: Unit Finalizes Services Pact with Luigi Bertolli ---------------------------------------------------------------- Wagener Aguado -- the executive director of Finasa, Banco Bradesco SA's consumer finance unit -- told Business News Americas that the company has finalized a financial services accord with Luigi Bertolli, the regional clothing retailer. Luigi Bertolli runs over 20 stores in the southeast region of Brazil. Finasa has extended its private label agreement with Panvel pharmacy chain to include personal loans, BNamericas says, citing Mr. Aguado. It has also made an arrangement with Comper supermarket chain to include the Visa-branded credit cards service. Mr. Aguado told BNamericas, "We are set to announce another partnership next month and will probably announce two more before the end of the year." BNamericas underscores that Banco Bradesco disclosed in 2005 the creation of consumer finance joint ventures with retailers Magazine Leader and Lojas Colombo, which still has to be approved by the central bank. Banco Bradesco then switched its focus to operating accords with regional retailers. "Creating a consumer finance company is not necessary. It costs more and it doesn't give any advantage to the retailer. We can form a partnership and have the same control and the results," Mr. Aguado told BNamericas. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, two in the Bahamas, and four in the Cayman Islands. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 21, 2006, Fitch Ratings took these rating actions on Banco Bradesco S.A.: -- Foreign Currency Issuer Default Rating upgraded to 'BB+' from 'BB', Outlook remains Stable; -- Short-term Foreign Currency rating affirmed at 'B'; -- Local Currency Issuer Default Rating affirmed at 'BBB-', Outlook Stable; -- Short-term Local Currency rating affirmed at 'F3'; -- Individual rating affirmed at 'B/C'; -- Support rating affirmed at '4'; -- National Long-term affirmed at 'AA+(bra)', Outlook remains Stable; and -- National Short-term affirmed at 'F1+(bra)'. BANCO MERCANTIL: Moody's Rates US$300M Global Note Program at B1 ---------------------------------------------------------------- Moody's Investors Service assigned a B1 foreign currency rating to Banco Mercantil do Brasil S.A.'s US$300,000,000 Global Medium Term Note Program and a B3 long-term foreign currency debt rating to the US$125,000,000 subordinated notes due 2016 issued under the program. The outlook on the ratings is stable. Moody's said that the B1 foreign currency bond rating incorporates Banco Mercantil do Brasil's fundamental credit quality, which is reflected by its B1 global local-currency deposit rating and which includes all relevant country risks. At this rating level, Moody's notching guidelines determine a two-notch differential from the B1 base rating for the subordinated tranches. Banco Mercantil do Brasil is headquartered in Minas Gerais, Brazil, and had BRL5.4 billion (US$2.5 billion) in total assets and BRL486 million (US$225million) in equity as of June 2006. These ratings were assigned to Banco Mercantil do Brasil S.A.: -- US$300 million Global Medium Term Note Program: B1 foreign-currency senior unsecured debt rating, with stable outlook; and -- US$125 million Subordinated Notes: B3 foreign currency subordinated debt rating, with stable outlook. BRASKEM SA: Declares Pricing of Tender Offer for 12.50% Notes ------------------------------------------------------------- Braskem S.A. disclosed the pricing information for its cash tender offer for any and all of its outstanding US$275,000,000 principal amount of 12.50% Notes due 2008 (CUSIP Nos.: 10553H AD 4 and 10553J AD 0; ISIN Nos. US10553HAD44 and US10553JAD00; Common Code Nos. 018005328 and 018005484). The tender offer is scheduled to expire at 5:00 p.m., New York City time, today, unless extended or earlier terminated. Settlement of the offer is expected to occur on the third business day following the Expiration Date, which is expected to be Oct. 2, 2006. Braskem will pay the total consideration in the manner described in the Offer to Purchase, dated Aug. 29, 2006, plus accrued and unpaid interest from the last interest payment date to, but excluding, the Settlement Date, for the Notes accepted pursuant to the Offer to Purchase. The total consideration includes an early tender premium in the amount of US$20 per U.S.US$1,000 principal amount of Notes. Noteholders who did not validly tender their Notes prior to 5:00 p.m., New York City time, on Sept. 18, 2006, will receive the tender offer consideration, which does not include the early tender premium. The table below shows the relevant pricing information for the consideration payable for the Notes: Reference U.S. Bloomberg Fixed Spread Actual Reference Treasury Reference Yield Security Page 3-1/8% U.S. PX5 0.450% 4.625% Treasury note due Oct. 15, 2008 Tender Tender Offer Total Offer Consideration Consideration Yield Per US$1,000 Per US$1,000 Principal Amount Principal Amount of Notes of Notes 5.075% US$1,125.48 US$1,145.48 The pricing information for the Total Consideration was calculated by the Dealer Managers in the manner described in the Offer to Purchase at 2:00 p.m., New York City time, on Sept. 25, 2006. Braskem has retained ABN AMRO Bank N.V., London Branch, and Citigroup Global Markets Inc. to act as Dealer Managers for the tender offer, JPMorgan Chase Bank, N.A. to act as the depositary for the tender offer, and D.F. King & Co., Inc. to act as information agent for the tender offer. Questions or requests for assistance or additional copies of the Offer to Purchase and the related Letter of Transmittal may be directed to the Information Agent at: D.F. King & Co., Inc. Tel: (800) 290-6431 (toll free) (212) 269-5550)(banks and brokers call collect) Braskem -- http://www.braskem.com.br/-- is a thermoplastic resins producer in Latin American, and is among the three largest Brazilian-owned private industrial companies. The company operates 13 manufacturing plants located throughout Brazil, and has an annual production capacity of 5.8 million tons of resins and other petrochemical products. * * * Standard & Poor's Ratings Services assigned on Sept. 22, 2006, its 'BB' senior unsecured debt rating to the proposed up to US$275 million bonds due Jan. 2017 to be issued by Brazil-based petrochemical company Braskem S.A. (BB/Stable/--). The bonds will rank pari passu with the company's other senior unsecured notes. Fitch assigned on Sept. 20, 2006, a rating of 'BB+' to Braskem S.A.'s proposed issuance of US$275 million senior unsecured notes due to 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 maintains 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. GERDAU SA: Antitrust Agency Ruling on Fines on Hold --------------------------------------------------- The ruling of Cade, the antitrust agency in Brazil, regarding the fining of Gerdau SA -- along with Belgo-Mineiro and Barra Mansa -- is on hold, Business News Americas reports, citing a press official of Cade. BNamericas relates that the companies had been required by Cade to pay a combined fine of BRL345 million by Sept. 18. Cade had ruled in September 2005 that the firms had broken anti-trust rules in rebar sales, fining each firm 7% of their gross revenues from rebar sales in 1999. Gerdau would have to pay BRL245 million. The press official told BNamericas that the firms delivered to Cade an escrow guarantee. Gerdau, Belgo and Barra will have to wait for a court decision on the antitrust agency ruling, BNamericas says, citing the press official. "If the court rules in favor of Cade's decision, the fine amount would go to its supervisory board," the press official told BNamericas. Headquartered in Porto Alegre, Brazil, Gerdau S.A. -- http://www.gerdau.com.br-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay and the United States. Gerdau's four majority-owned Brazilian operating subsidiaries are: -- Acominas, -- Gerdau Acos Longos S.A., -- Gerdau Acos Especiais S.A. and -- Gerdau Comercial de Acos S.A.; * * * Gerdau SA's US$600 million 8-7/8% perpetual bond is rated Ba1 by Moody's, BB+ by S&P, and BB- by Fitch. * * * 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. GULFMARK OFFSHORE: Moody's Lifts Rating on US$160M Notes to B1 -------------------------------------------------------------- Moody's Investors Service upgraded GulfMark Offshore, Inc.'s corporate family rating from B1 to Ba3 and its US$160 million senior unsecured notes due 2014 from B2 to B1. The outlook is stable. The upgrade of GulfMark's ratings reflects its fleet's growth and improved quality and diversity and the enhanced forward revenues and earnings visibility. While adding 13 newbuilds since 2000, GulfMark has divested of older vessels to improve its overall asset mix. Moody's believes that GulfMark's younger, high specification fleet is well-suited for its core markets while increasing its flexibility to mobilize its vessels to other attractive international regions. Furthermore, management's strategic decision to increase the term portion of it contract portfolio and reduce spot rate exposure provides more stability in its cash flows than past years. GulfMark has further solidified its strong position in the North Sea offshore production support market, grown its presence in the growing Asian market and expanded into the Mexican Gulf of Mexico and Brazilian offshore markets. These developments combined with robust market conditions have enabled the company to make substantial reductions in its operating leverage and improve liquidity. This higher quality fleet is more likely to be employed in a market downturn, albeit at lower dayrates, when compared to the older fleets of some of its competitors. Outlook The ratings have limited upside in the near to medium term due to the company's relatively small scale and market position outside of its key North Sea market, particularly its lack of participation in the U.S. Gulf of Mexico. The current ratings contemplate GulfMark's recently initiated speculative newbuild program that is expected to add 10 more vessels by 2008 at a total cost of approximately US$225 million. While this expansion is comparable in size to its 2000-2005 build out and will further strengthen its fleet, it represents a much smaller addition relative to its present scale which makes the risks more manageable. The majority of the deliveries and expenditures will occur during 2007, requiring expenditures nearing US$150 million. The company plans to fund these expenditures largely through operating cash flows and from borrowings on its revolving credit facilities. The company has good visibility into the remainder of 2006 and 2007 through forward contract cover and should have significant capacity on its US$175 million secured revolver following an expected US$60 million of repayments during 2006. While current market conditions look strong into 2007, recent commodity price declines and the substantial quantity of new vessels to be added by GulfMark and its competitors could portend weaker conditions in the latter half of 2007 into 2008. In that case, Moody's would expect that GulfMark could need to finance a much larger portion of its vessel expansion using its revolving credit facilities. While this could elevate the company's debt levels and leverage measures, Moody's would expect these levels to remain within a range consistent with a Ba3 rating. If market demand severely contracted in the face of this additional capacity for a prolonged period, the company's earnings and cash flows could decline to levels that could pressure the ratings or outlook. In addition, the rating is predicated on the company not materially increasing its speculative fleet expansion and continuing its policies of devoting operating cash flows to funding capital expenditures and reducing borrowings in order to weather cyclical downturns. GulfMark Offshore, Inc., headquartered in Houston, Texas, is a provider of offshore marine services primarily to oil and gas exploration production firms in the North Sea, India, Southeast Asia, Brazil and West Africa. IWT TESORO: Bank of America Credit Line Increased to US$26.5 Mln ---------------------------------------------------------------- IWT Tesoro Corp. entered into an agreement with Bank of America to increase the company's credit line to US$26.5 million. "Bank of America has been a strong financial partner of IWT Tesoro for the last three years, and we are pleased to have their ongoing financial support as the company continues to manage its double digit growth," Tesoro's CEO, Henry J. Boucher, said. About IWT Tesoro Headquartered in Westport, Connecticut, IWT Tesoro Corp. (OTCBB: IWTT) -- http://www.iwttesoro.com/-- is as a wholesale distributor of building materials, specifically hard floor and wall coverings, which consist of ceramic, porcelain and natural stone floor, wall and decorative tile. The Company imports a majority of these products from suppliers and manufacturers in Europe, South America, and the Near and Far East. IWT is growing into a focused, large, national distributor of premium tiles from Italy, Spain, Brazil, Turkey, and China. At June 30, 2006, the Company's balance sheet showed a stockholders' deficit of US$1,042,936, compared to a deficit of US$4,176,802 at Dec. 31, 2005. Going Concern Doubt As reported in the Troubled Company Reporter on May 31, 2006, McGladrey & Pullen, LLP, in New Haven, Connecticut, raised substantial doubt about IWT Tesoro Corporation's ability to continue as a going concern after auditing the Company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the Company's recurring losses from operations, and working capital and stockholders' deficiencies. SANTANDER BANESPA: Lending BRL1B to Small Enterprises This Year --------------------------------------------------------------- Banco Santander Banespa SA expects to lend about BRL1 billion to small and medium-sized enterprises before the end of 2006, Business News Americas reports. Marcelo Villaca Carvalho -- the planning and product manager of Santander Banespa -- told BNamericas that the company generally increases lending to small and medium-sized enterprises at the start of the fourth quarter to help firms cover obligatory year- end bonuses the Brazilian law requires. Mr. Carvalho told BNamericas of Spanish parent firm Grupo Santander, "This bank has a tradition of lending to SMEs (small and medium-sized enterprises). It's important to expand the same loan operations here in Brazil." Santander Banespa sees a boost of up to 30% in its small and medium-sized enterprise loan book before the end of the year, BNamericas notes, citing Mr. Carvalho. Mr. Carvalho said that Santander Banespa also expects to add about 56,000 new borrowers from the small and medium-sized enterprise, BNamericas underscores. Mr. Carvalho told BNamericas that he could not disclose the size of the loan portfolio for these enterprises in terms of reais or number of customers. Meanwhile, Mr. Carvalho said that Santander Banespa is also considering issuing a card for the enterprises in conjunction with national development bank BNDES, BNamericas says. BNamericas emphasizes that Santander Banespa could launch a corporate version of its Light credit card, which charges half the market average in interest rates. However, the launching would not be in this year. Santander Banespa also expects annual revenues of BRL20 million for the year 2006, BNamericas states. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 8, 2006, Standard & Poor's Ratings Services assigned its 'BB/B' counterparty credit rating to Banco Santander Banespa S.A. VARIG S.A.: Appeals Court Allows ANAC to Redistribute Routes ------------------------------------------------------------ Minister Nacy Andrighi of the Federal Court of Appeals in Brazil authorized the Brazilian Civil Aviation Agency to continue the redistribution of routes, airport slots and schedules formerly used by VARIG, S.A., to other airline companies, Investnews (Brazil) reports. According to the Appeals Court, distribution of slots and routes was "the exclusive preserve of ANAC" as the industry regulator, Dow Jones Newswires relates. As previously reported, ANAC filed a formal complaint against Judge Marcia Cunha Silva de Carvalho of the Commercial Bankruptcy and Reorganization Court in Rio de Janeiro for stopping the redistribution of VARIG's former routes and slots. ANAC argued before the Brazilian Justice Council that only the federal justice could suspend the redistribution of routes and slots. The Brazilian Bankruptcy Court fined ANAC BRL1,000,000 -- $467,500 -- for violating an injunction imposed in VARIG's case. The Injunction allowed ANAC to act only if VARIG fails to resume service on its 272 routes within 30 days of receiving a new route permit. At that time, VARIG had not received new permits. ANAC redistributed VARIG's routes to TAM Linhas Aereas, S.A.; Gol Linhas Aereas Inteligentes; and BRA. Judge Cunha lifted the fine after ANAC agreed to stop its action. Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's largest air carrier and the largest air carrier in Latin America. VARIG's principal business is the transportation of passengers and cargo by air on domestic routes within Brazil and on international routes between Brazil and North and South America, Europe and Asia. VARIG carries approximately 13 million passengers annually and employs approximately 11,456 full-time employees, of which approximately 133 are employed in the United States. The Company, along with two affiliates, filed for a judicial reorganization proceeding under the New Bankruptcy and Restructuring Law of Brazil on June 17, 2005, due to a competitive landscape, high fuel costs, cash flow deficit, and high operating leverage. The Debtors may be the first case under the new law, which took effect on June 9, 2005. Similar to a chapter 11 debtor-in-possession under the U.S. Bankruptcy Code, the Debtors remain in possession and control of their estate pending the Judicial Reorganization. Sergio Bermudes, Esq., at Escritorio de Advocacia Sergio Bermudes, represents the carrier in Brazil. Each of the Debtors' Boards of Directors authorized Vicente Cervo as foreign representative. In this capacity, Mr. Cervo filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the United States. As of March 31, 2005, the Debtors reported BRL2,979,309,000 in total assets and BRL9,474,930,000 in total debts. (VARIG Bankruptcy News, Issue No. 32; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) VARIG S.A.: Cuts Fare on Five Local & Two International Flights --------------------------------------------------------------- VARIG, S.A., offers more than 50% discount on airfares to five local and two international destinations, according to Investnews (Brazil). One of those discounted routes is from Manaus, Brazil, to Caracas, Venezuela. VARIG has obtained four new aircraft and re-established its routes towards Caracas early this month. The airline will also resume flights to Brasilia, Curitiba and Fernando de Noronha, in Brazil. It also plans to resume services to New York and Miami, in the U.S. Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's largest air carrier and the largest air carrier in Latin America. VARIG's principal business is the transportation of passengers and cargo by air on domestic routes within Brazil and on international routes between Brazil and North and South America, Europe and Asia. VARIG carries approximately 13 million passengers annually and employs approximately 11,456 full-time employees, of which approximately 133 are employed in the United States. The Company, along with two affiliates, filed for a judicial reorganization proceeding under the New Bankruptcy and Restructuring Law of Brazil on June 17, 2005, due to a competitive landscape, high fuel costs, cash flow deficit, and high operating leverage. The Debtors may be the first case under the new law, which took effect on June 9, 2005. Similar to a chapter 11 debtor-in-possession under the U.S. Bankruptcy Code, the Debtors remain in possession and control of their estate pending the Judicial Reorganization. Sergio Bermudes, Esq., at Escritorio de Advocacia Sergio Bermudes, represents the carrier in Brazil. Each of the Debtors' Boards of Directors authorized Vicente Cervo as foreign representative. In this capacity, Mr. Cervo filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the United States. As of March 31, 2005, the Debtors reported BRL2,979,309,000 in total assets and BRL9,474,930,000 in total debts. (VARIG Bankruptcy News, Issue No. 32; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) * BRAZIL: Russky Alyuminiyum to Implement Bauxite Projects ---------------------------------------------------------- Russky Alyuminiyum or RusAl plans to develop bauxite projects in Brazil, Venezuela, Vietnam, 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. * * * As reported on Sept. 4, 2006, Brazil's foreign currency country ceiling was upgraded to Ba1 from Ba2 while the government's foreign- and local-currency bond ratings were changed to Ba2 from Ba3. =========================== C A Y M A N I S L A N D S =========================== AATRIUM FUND: Shareholders Gather for a Final Meeting on Oct. 16 ---------------------------------------------------------------- Aatrium Fund's shareholders will gather for a final meeting at 10:00 a.m. on Oct. 16, 2006, at: Harmonic Fund Services 4th Floor, Cayman Corporate Centre 27 Hospital Road, 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: Allen Bernardo Anne Mervyn Harmonic Fund Services 4th Floor, Cayman Corporate Centre 27 Hospital Road P.O. Box 940GT, George Town Grand Cayman, Cayman Islands Aatrium Fund is an open-ended fund incorporated in the Cayman Islands. The fund's objective is high annual returns by simultaneously trading in selected non-correlated and correlated asset classes and where investment takes place in other Fund of Hedge Fund portfolio, applying rigorous scrutiny to selection. A.T.S. ARGUS: Deadline for Proofs of Claim Filing Is on Oct. 18 --------------------------------------------------------------- A.T.S. Argus Fund Ltd.'s creditors are required to submit proofs of claim by Oct. 18, 2006, to the company's liquidators: Ian Wight Stuart Sybersma P.O. Box 1787, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Oct. 18 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. A.T.S. Argus' shareholders agreed on Sept. 5, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Nicole Ebanks Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Tel: (345) 949 7500 Fax: (345) 949 8258 A.T.S. Argus Fund is an open-ended fund incorporated in the Cayman Islands. Its objective is long-term capital appreciation while seeking to minimize corresponding levels of risk. The fund seeks to achieve this objective by investing in a variety of non-traditional funds that are managed by a divers group of external investment managers. CML FUND: Creditors Have Until Oct. 18 to File Proofs of Claim -------------------------------------------------------------- CML Fund's creditors are required to submit proofs of claim by Oct. 18, 2006, to the company's liquidator: Francois Buclez Cube Capital HK Limited 2119 ICBC Tower Citibank Plaza, 3 Garden Road Central, Hong Kong Creditors who are not able to comply with the Oct. 18 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. CML Fund's shareholders agreed on Aug. 28, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Ian Gobin Walkers P.O. Box 265 GT, Walker House Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 814 4604 Fax: (345) 949 7886 DALAV LIMITED: Last Day for Proofs of Claim Filing Is on Oct. 18 ---------------------------------------------------------------- Dalav Limited's creditors are required to submit proofs of claim by Oct. 18, 2006, to the company's liquidators: Royhaven Secretaries Limited Coutts (Cayman) Limited Coutts House, 1446 West Bay Road P.O. Box 707, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Oct. 18 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Dalav Limited's shareholders agreed on Sept. 6, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Lesley Walker P.O. Box 707, George Town Grand Cayman, Cayman Islands Tel: (345) 945-4777 Fax: (345) 945-4799 DIGIMARC ID: Creditors Must Submit Proofs of Claim by Oct. 18 ------------------------------------------------------------- Digimarc ID Systems International's creditors are required to submit proofs of claim by Oct. 18, 2006, to the company's liquidator: Michael McConnell 19801 S.W. 72nd Avenue, Suite 250 Tualatin, Oregon 97062, USA Creditors who are not able to comply with the Oct. 18 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Digimarc ID's shareholders agreed on Aug. 23, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. Parties-in-interest may contact: Ian Gobin Walkers P.O. Box 265 GT, Walker House Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 814 4604 Fax: (345) 949 7886 FFP WEST: Shareholders Convene for a Final Meeting on Oct. 11 ------------------------------------------------------------- FFP West International Limited's final shareholders meeting will be at 10:00 a.m. on Oct. 11, 2006, at: Close Brothers (Cayman) Limited 4th Floor Harbour Place, George Town 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: Jeff Arkley Attention: Neil Gray Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 HENDERSON UK: Last Day to File Proofs of Claim Is on Oct. 11 ------------------------------------------------------------ Henderson UK Fundamental Long Short Fund Limited's creditors are required to submit proofs of claim by Oct. 11, 2006, to the company's liquidators: David A. K. Walker Lawrence Edwards PwC Corporate Finance and Recovery (Cayman) Limited P.O. Box 258, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Oct. 11 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Henderson UK'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. Parties-in-interest may contact: Jyoti Choi P.O. Box 258, George Town Grand Cayman, Cayman Islands Tel: (345) 914 8657 Fax: (345) 949 4590 Henderson UK is an open-end fund incorporated in the Cayman Islands. The fund's objective is capital growth. The fund invests in equities of UK companies and their related securities. Athe fund uses derivatives, short positions, and other investment strategies to enhance absolute returns. LINK INVESTMENTS: Liquidator Presents Wind up Accounts on Oct. 9 ---------------------------------------------------------------- Link Investments Limited's final shareholders meeting will be at 10:30 a.m. on Oct. 9, 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 liquidator can be reached at: David Singleton Herald Trust Company Ltd. P.O. Box 501, 8 Hill Street St. Helier Jersey, JE4 9XB Channel Islands Tel: 011 44 1534 610 610 Fax: 011 44 1534 610 611 NOTTINGHAM LIMITED: Final Shareholders Meeting Is Set for Oct. 9 ---------------------------------------------------------------- Nottingham Limited's final shareholders meeting will be at 10:00 a.m. on Oct. 9, 2006, at: Deloitte Fourth Floor, Citrus Grove P.O. Box 1787, George Town 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: Stuart Sybersma Attention: Nicole Ebanks Deloitte P.O. Box 1787, George Town Grand Cayman, Cayman Islands Tel: (345) 949-7500 Fax: (345) 949-8258 PEACE TECH: Extraordinary Shareholders Meeting Will be Tomorrow --------------------------------------------------------------- Peace Technology Fund Limited's ordinary and participating shareholders will convene for an extraordinary general meeting at 1:00 p.m. on Sept. 28, 2006, at: P.O. Box 72, 44 Esplanade St. Hellier, Jersey, JE4 8PN Channel Islands These agendas will be taken during the meeting: 1) placing the company into voluntary liquidation, 2) appointing Scott Stupay and Ofer Neeman as joint voluntary liquidators for the purpose of winding up the company, and 3) indemnifying and holding harmless to the fullest extent permissible under the Cayman Islands law out of the assets of the company in respect of all acts properly undertaken, and reimbursing for all expenses reasonably incurred in the winding up of the company. A member entitled to attend and vote at the meeting may appoint a proxy, who need not be a member, in his stead. Parties-in-interest may contact: Mark Holligon c/o Walkers, 87 Mary Street P.O. Box 265GT, George Town Grand Cayman, Cayman Islands Fax: +1 345 814 8339 PHYSICIANS SECURITY: Proofs of Claim Filing Is Until Oct. 18 ------------------------------------------------------------ Physicians Security Insurance Company's creditors are required to submit proofs of claim by Oct. 18, 2006, to the company's liquidator: Global Captive Management Ltd. Genesis Building P.O. Box 1363, George Town Grand Cayman, Cayman Islands Creditors who are not able to comply with the Oct. 18 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. Physicians Security's shareholders agreed on Aug. 24, 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: Peter Mackay Global Captive Management Ltd. Genesis Building P.O. Box 1363, George Town Grand Cayman, Cayman Islands Tel: (345) 949 7966 PROGRESSIVE GROWTH: Sets Final Shareholders Meeting on Oct. 11 -------------------------------------------------------------- Progressive Growth Fund's final shareholders meeting will be at 10:00 a.m. on Oct. 11, 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 liquidator can be reached at: Merk Investments AG Attention: Sydney J. Coleman P.O. Box 1111, George Town Grand Cayman, Cayman Islands Tel: (345) 949 5122 Fax: (345) 949 7920 SCL NAUTILUS: Proofs of Claim Filing Deadline Is Set for Oct. 18 ---------------------------------------------------------------- SCL Nautilus Ltd.'s creditors are required to submit proofs of claim by Oct. 18, 2006, to the company's liquidators: John Cullinane Derrie Boggess c/o Walkers SPV Limited P.O. Box 908, George Town Grand Cayman, Cayman Islands Tel: (345) 914-6305 Creditors who are not able to comply with the Oct. 18 deadline won't receive any distribution that the liquidator will make. Creditors are required to present proofs of claim personally or through their solicitors. SCL Nautilus' shareholders agreed on Sept. 4, 2006, for the company's voluntary liquidation under Section 135 of the Companies Law (2004 Revision) of the Cayman Islands. SPHERIC INTERNATIONAL: Last Shareholders Meeting Is on Oct. 11 -------------------------------------------------------------- Spheric International, Ltd.'s final shareholders meeting will be at 10:00 a.m. on Oct. 11, 2006, at: Close Brothers (Cayman) Limited 4th Floor Harbour Place, George Town 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: Linburgh Martin Attention: Thiry Gordon Close Brothers (Cayman) Limited Fourth Floor, Harbour Place P.O. Box 1034, George Town Grand Cayman, Cayman Islands Tel: (345) 949 8455 Fax: (345) 949 8499 TAMARIX INVESTMENTS: Final Shareholders Meeting Is on Oct. 9 ------------------------------------------------------------ Tamarix Investments Limited's final shareholders meeting will be at 9:30 a.m. on Oct. 9, 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 liquidator can be reached at: Raymond E. Whittaker FCM Ltd. P.O. Box 1982 Grand Cayman, Cayman Islands Tel: 345-946-5125 Fax: 345-946-5126 ========= C H I L E ========= ARAMARK CORP: Included in InformationWeek 500 List -------------------------------------------------- For the fifth consecutive year, ARAMARK Corp. was named to the InformationWeek 500, a list of the most innovative information technology organizations in the United States. This honor demonstrates the company's leadership in the use of technology to help deliver world-class experiences, environments and outcomes for its clients and customers. The InformationWeek 500, developed by InformationWeek magazine, tracks organizations' information technology agendas, providing a unique opportunity to understand and examine business practices across core areas of technology operations. ARAMARK was among the top 25 percent of companies listed for 2006. "This recognition is, yet again, a testament to our continual drive toward excellence and creativity in the development and deployment of IT solutions," said David Kaufman, chief information officer of ARAMARK. "I am grateful to all of our IT employees for their critical role in helping ARAMARK achieve this distinction for the fifth year in a row." About ARAMARK Headquartered in Philadelphia, ARAMARK Corp. -- http://www.aramark.com/-- is a leader in professional services, providing food services, facilities management, and uniform and career apparel to health care institutions, universities and school districts, stadiums and arenas, and businesses around the world. It has approximately 240,000 employees serving clients in 20 countries, including Mexico, Brazil and Chile. * * * Standard & Poor's Ratings Services lowered on Aug. 8, 2006, its ratings on Philadelphia-based ARAMARK Corp. and its subsidiary, ARAMARK Services Inc., including its corporate credit rating to 'BB+' from 'BBB-'. Fitch downgraded on Aug. 8, 2006, the Issuer Default Rating and senior unsecured debt ratings for both ARAMARK Corporation and its wholly owned subsidiary, ARAMARK Services, Inc., to 'BB-' from 'BBB'. The ratings remain on Rating Watch Negative. Moody's Investors Service downgraded on Sept. 20, 2006, the 5% senior notes due 2012 of ARAMARK Services, Inc., to B2 from Baa3, confirmed the Baa3 ratings on the senior notes due 2007 and 2008, and assigned a corporate family rating of Ba3 to ARAMARK Corp., ARAMARK Services' holding company parent. The B2 rating on the 5% senior notes due 2012 and the Ba3 corporate family rating are under review for possible downgrade. DIRECTV GROUP: Chilean Unit Plans Growth Through New Alliances -------------------------------------------------------------- Francisco Madiola -- the general manager of the Directv Group's unit in Chile -- told El Mercurio that the company will focus its growth on new alliances with telephony operators, aiming to boost its client base to 120,000 in 2007 from this year's 80,000. El Mercurio relates that Directv expects that its alliances with local operators Telsur and GTD Manquehue would be mainly responsible for the increase of its clients. Directv is aiming to end 2006 with about 90,000 users. According to Business News Americas, about 30% of Directv's revenue this year comes from sales through partners. Last year, sales through its alliances accounted for 13% of its revenue. Directv's strategy for 2006 includes expanding content, which will set it apart from its rivals, triple play service provider VTR and Telefonica Chile, Mr. Madiola told BNamericas. The DIRECTV Group, Inc., formerly Hughes Electronics Corp., headquartered in El Segundo, California, is a world-leading provider of multi-channel television entertainment, and broadband satellite networks and services. The DIRECTV Group, Inc. with sales in 2004 of approximately US$11.4 billion is 34% owned by Fox Entertainment Group, Inc., which is owned by News Corp. DIRECTV is currently available in Latin American countries: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago, Uruguay, Venezuela and several Caribbean island nations. * * * On June 8, 2005, Moody's assigned a Ba2 rating to DIRECTV's US$1 billion senior unsecured notes. Moody's said the rating outlook is stable. HERBALIFE INT'L: Moody's Assigns Loss-Given-Default Rating ---------------------------------------------------------- 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. natural product processors sector last week, the rating agency raised its Corporate Family Rating for Herbalife International Inc. to Ba2 from Ba1, and confirmed its Ba1 ratings on the company's US$100 million Guaranteed Senior Secured Revolving Credit Facility Due 2012 and US$200 million Guaranteed Senior Secured Term Loan B Due 2013. Additionally, Moody's assigned an LGD2 rating to those bonds, suggesting lenders will experience a 27% loss in the event of a default. 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 alphanumeric 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%). Headquartered in Inglewood, California, Herbalife International Inc. sells more than 100 products containing herbal and other natural ingredients. The company's products include weight- control mixes and tablets, nutritional supplements specifically designed for men and women, food, shampoos, lotions, sunscreens, and body oils. The multi-level marketer sells its products through a network of independent distributors in nearly 60 countries; salespeople earn money from their own efforts, as well as from the sales of those whom they have recruited into the organization. In Latin America, the company operates in Argentina, Bolivia, Brazil, Chile, Colombia, Panama and Venezuela. =============== C O L O M B I A =============== ANIXTER INT'L: Settling Income Tax Liabilities with the IRS ----------------------------------------------------------- Anixter International Inc. has entered into a settlement with the U.S. Internal Revenue Service as to the federal income tax liabilities of Anixter and its subsidiaries for the tax years 1996 through 1998. Under the terms of this settlement, the company will be able to deduct certain losses on its U.S. tax return arising from changes in the IRS regulations that became effective in 1996. The refund associated with this tax issue will be approximately US$13.7 million, plus applicable interest, and will be recorded in the company's third quarter results. As a result of this settlement and the completion of the 2005 federal tax return, the company will also be adjusting its income tax reserves and payables during the third quarter of 2006 (currently expected to be approximately US$4.4 million of additional income tax benefit). The total estimated effect on the third quarter tax provision will be approximately US$18.1 million or 41 cents per diluted share. At the same time Anixter will record as income, net of applicable tax thereon, approximately US$4.8 million or 11 cents per diluted share as the estimated amount of interest to be received on the settlement. The 1996-1998 refund has been approved by the Joint Committee on Taxation of the U. S. Congress and is expected to be received in the next few weeks. About Anixter Headquartered in Glenview, Illinois, Anixter International, is the world's largest distributor of communication products and electrical and electronic wire and cable, and a leading distributor of fasteners and other small parts to original equipment manufacturers. Anixter has physical presence in 45 countries and has over 5,000,000 square feet of warehouse space. For its Latin American operations, its has offices in Mexico, the Dominican Republic, Costa Rica, Puerto Rico, Venezuela, Colombia, Peru, Brazil, Argentina and Chile. * * * Fitch Ratings affirmed on Sept. 9, 2006, these ratings for Anixter International Inc. and its wholly owned operating subsidiary, Anixter Inc. aka AI: Anixter -- Issuer Default Rating: 'BB+'; -- Senior unsecured debt 'BB-'. AI -- Issuer Default Rating: 'BB+'; -- Senior unsecured notes 'BB+'; and -- Senior unsecured bank credit facility at 'BB+'. =================== C O S T A R I C A =================== DENNY'S CORP: Moody's Withdraws B2 Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service moved Denny's Corp.'s corporate family rating to Denny's Holdings, Inc., due to the fact that Holdings is the highest ranking entity in the Denny's legal organizational chart that has rated debt, represented by Holdings' Caa1 rated US$175 million senior unsecured notes due in 2012. In addition, Denny's Corp., the ultimate parent company of the Denny's brand, does not have any rated debt. The 1st lien (B2) and 2nd lien (B3) credit facilities were issued at Denny's, Inc., the operating subsidiary. Therefore, the credit facility ratings were moved to Denny's, Inc. from Denny's Corp. Ratings and stable outlook withdrawn: -- Denny's Corp: B2 corporate family rating. Rating assigned with stable outlook: -- Denny's Holdings, Inc: B2 corporate family rating. Denny's Corp., a family-style restaurant chain headquartered in Spartanburg, South Carolina, owned and operated 543 and franchised 1,023 full-service family dining restaurants as of June 28, 2006. Domestic locations are scattered throughout 49 states and the District of Columbia with concentrations in California, Florida and Texas. Revenues for fiscal 2005 totaled US$979 million. ======= C U B A ======= * CUBA: Heads of Two Cos. Fired to Strengthen State Control ----------------------------------------------------------- Ramiro Valdes -- the Information Technology and Communications Minister of Cuba -- fired the executives of Empresa de Telecomunicaciones de Cuba SA and Copextel in a bid to strengthen state control on the computing and telecommunications firms amid a drive against corruption, Reuters reports, citing industry sources. According to Reuters, Minister Valdes fired: -- Jose Antonio Fernandez, the president of Empresa de Telecomunicaciones; -- Nelson Ferrer, the vice minister for information, and -- the president of Copextel. Mr. Ferrer was dismissed for failing to control the fixed-line and mobile services monopoly, Reuters says, citing the sources. Foreign and local sources told Reuters that the shake-up at Emmpresa de Telecomunicaciones and Copextel did not appear to be aimed at opening the sector to foreign capital or to information and entertainment from abroad. Reuters underscores that the sources said Minister Valdes was not happy with the independence shown by some directors of the companies. The minister was also displeased with the directors' inability to control subordinates despite an ongoing drive to boost state control over the economy, improve efficiency and fight corruption. According to the report, Copextel has been caught up in corruption scandals involving kickbacks from foreign firms. Maimir Mesa Ramos was appointed as Etecsa's new head while Antonio Orta Rodriguez became Copextel's new president, Reuters notes. The Cuban government blames the US trade embargo for its poor communications infrastructure, Reuters states. * * * Moody's assigned these ratings to Cuba: -- CC LT Foreign Bank Depst, Caa2 -- CC LT Foreign Curr Debt, Caa1 -- CC ST Foreign Bank Depst, NP -- CC ST Foreign Curr Debt, NP -- Issuer Rating, Caa1 =================================== D O M I N I C A N R E P U B L I C =================================== EMPRESA GENERADORA: Fitch Rates Proposed US$125 Mil. Notes at B- ---------------------------------------------------------------- Fitch Ratings has assigned a 'B-' international foreign and local currency Issuer Default Rating to Empresa Generadora de Electricidad Itabo, S.A. aka Itabo. Fitch has also assigned a 'B-' to the proposed issuance of US$125 million notes to be issued by Itabo Finance S.A. The new notes have also been assigned a recovery rating of 'RR4'. The proceeds from the proposed issuance are expected to be used to refinance existing debt, for general corporate purposes and to pay dividends. Fitch rates Itabo 'BBB(dom)' on the national scale. The Rating Outlook for all ratings is Positive. Itabo's ratings incorporate the risks of operating electric generation assets in the Dominican Republic, its strong competitive position as the lowest cost thermoelectric generator in the country, as well as its solid financial profile and experienced management team. Itabo operates two low-cost, carbon-fueled electric generation units and sells electricity to three distribution companies through well-structured, long-term U.S-dollar-denominated purchase power agreements or PPAs. While multiple offtakers diversify its revenue stream, and long- dated PPAs mitigate price and volume risks, Itabo could face collection risks from the electric distribution companies, which are still in the process of improving their own losses and collection rates. Although low collection rates led distribution companies to defer their payments to generation companies, Itabo's collection rates have been improving mainly due to the government support to the sector. The current Dominican government is supporting the power sector by providing subsidies to the distribution companies to cover their energy costs. This committed financial support, along with distribution companies' initiatives to reduce losses, are helping to stabilize the system. The new debt issuance is expected to increase leverage, although credit protection measures are expected to remain solid for the rating category. Following the issuance, EBITDA-to-interest expense is expected to be between 3.0x and 3.5x, total debt-to- EBITDA is expected to be between 2.5x and 3.0x, and net debt-to- EBITDA between 1.0x and 2.0x. High initial cash balances as well as a six-month debt service reserve provide substantial liquidity, although potential increases in dividends could erode cash balances and liquidity over time. Although long-term refinancing risk remains a concern given the recent volatility of the Dominican economy and energy sector, short- and medium- term refinancing risks are mitigated by the long tenure of the new notes. The company's credit metrics are considered strong for the rating category with relatively low leverage and healthy interest coverage compared to other generation companies in the region. Itabo's fuel mix of coal and pet coke as well as its baseload operating characteristics provides it with competitive advantages versus other thermoelectric generators in the country. Itabo is a low-cost thermoelectric generator, which is usually the first unit to be dispatched in the system after the hydroelectric plants. Should new hydroelectric or other cost- efficient generation units come on-line, Itabo's competitive advantage is expected to be only marginally affected, and to still be dispatched as a baseload unit. Itabo's well-structured PPAs also mitigate competitive risk. Recently, the Dominican government announced the construction of two new coal-fired generation plants. These new plants are expected to come on- line in three to five years and to add an approximate 1,200 megawatts of installed capacity to the country. The final construction of these units remains uncertain. The company has an experienced management team with an average of 20 years of experience working in the energy industry in different countries. Itabo is managed by affiliate New Caribbean Investments, S.A. or NCI, another AES Corp affiliate in the DR, under a management contract. Itabo also benefits from the operational experience of its parent AES Corp, a leading global power company with revenues of US$11.1 billion during 2005. AES Corp. operates in 26 countries, generating 44,000 MW of electricity through 127 power facilities and delivering electricity through 14 distribution companies. Itabo takes advantage of AES Corp.'s broad corporate network by transferring employees from other parts of the AES group in order to benefit from their experience and to train local staff. The DR electricity sector remains highly dependent on government support and subsidies. The administration has recognized the importance of solving the challenges facing the power sector and, at the end of 2004, announced a strategy for this sector to reach financial sustainability that was also included in the country's agreement with the International Monetary Fund. Key initiatives to support the sector include improving the cash recovery of distribution companies by reducing energy losses and improving collections, increasing the average revenue of distribution companies through tariff adjustments, and improving the regulatory framework. The Positive Rating Outlook reflects the favorable operating conditions of the company within the local market, the Dominican government's continued support of the sector, the different steps taken by the government and sector participants in an effort to bolster the sector, and the country's recent economic recovery. An upgrade of the company's rating could be triggered if the sector continues its current path to recovery and self- sustainability, thereby lowering its dependency upon government's subsidies. Itabo is a thermo-electric generator in the DR and the second largest generation plant in the country. The company has a total installed capacity 472 MW of thermo-electric generation. The company is currently owned 50% by AES Corp.'s subsidiaries and 49.97% by the DR government. The balance is owned by former employees of CDE (Corporacion Dominicana de Electricidad). As previously noted, AES Dominicana manages the company under a management contract, for a fee of 2.95% of Itabo's sales, while AES Corp. indirectly controls Itabo's management board. JETBLUE AIRWAYS: Launches Discount Card from American Express ------------------------------------------------------------- American Express and JetBlue Airways introduces the JetBlue Business Card from American Express, which offers small business owners an automatic 5% discount on JetBlue flights, plus an easy way to earn awards travel. Cardmembers automatically receive an OPEN Savings discount of 5% off the total cost of their JetBlue flight when they make the purchase with the new JetBlue Business Card. Cardmembers who purchase their JetBlue flight with any other American Express Business Card receive an automatic 3% discount on the total purchase. These discounts are Business Card benefits -- not limited-time offers -- and apply to all flights purchased with the JetBlue Business Card through any JetBlue channel. The JetBlue Business Card offers small businesses one Award Dollar on virtually every purchase, and double Awards Dollars on select small business purchases, including JetBlue travel, gasoline, office supplies, wireless phone charges, and car rentals. To welcome new Cardmembers to the program, JetBlue Business Cardmembers will receive 5,000 Award Dollars with their first purchase, which equals 25% of a JetBlue award flight. The JetBlue Business Card is an expansion of the cobrand relationship between JetBlue and American Express and follows the launch of the consumer JetBlue Card from American Express in July 2005. The move brings new benefits to Business Cardmembers and makes it easier than ever for them to take advantage of JetBlue's business-friendly offerings. JetBlue and American Express have enjoyed a strong partnership since JetBlue's launch in 2000, when the airline began accepting American Express Cards. "The JetBlue Business Card from American Express is a great way for us to add value for small business owners who depend on JetBlue for business travel, through easier and faster award travel and savings," said Tim Claydon, senior vice president of Sales and Marketing for JetBlue Airways. "This is a meaningful way to show JetBlue's commitment to our business customers, especially in the 14 new cities we have started service in this year." "We recognize that small business owners choose JetBlue for its value and service, and we're pleased to make it easier and more affordable for our Business Cardmembers to fly JetBlue," added Raymond Joabar, senior vice president and general manager, OPEN from American Express. "By offering significant savings upfront with a 5% discount on JetBlue flights and a convenient way to earn awards travel, we're giving small business customers the bottom-line benefit of reduced travel expenses." The new Card is particularly suited to time-starved small businesses since Award Dollars are automatically transferred to TrueBlue, JetBlue's flight gratitude program. TrueBlue is a paperless, automatically managed program. Awards are automatically sent to TrueBlue members when the account reaches 100 TrueBlue points. Awards are designed for full flexibility as well -- each TrueBlue Award is made up of two TruePasses, each valid for a one-way flight, and can be used together or individually, giving small business owners the travel flexibility they need. Another benefit exclusive to Cardmembers holding either a JetBlue Card from American Express, or the new JetBlue Business Card is continuously extending TrueBlue points. Every time Cardmembers earn the equivalent of one TrueBlue point or purchase travel on JetBlue before their points expire, all the points in their account extend another 12 months. About JetBlue's Business Card Business Cardmembers earn Award Dollars on virtually every dollar spent on the Business Card, and double Award Dollars on JetBlue flights, gas, car rental, office supplies and equipment, and wireless phone charges. With the Business Card, business owners can earn one TrueBlue point for every 200 Award Dollars and can redeem 100 TrueBlue points (20,000 Award Dollars) for one award flight on JetBlue. Award Dollars earned on the JetBlue Business Card are converted to TrueBlue points at the end of each billing cycle. JetBlue Business Card benefits include: -- Discount of 5% discount off the total cost of JetBlue flights through the OPEN Savings program; -- 5,000 Award Dollars (equals 25 TrueBlue points) welcome bonus with first business purchase on the Card; -- One Award Dollar for every eligible dollar spent on the Card; -- Double Award Dollars for JetBlue flights, gas, car rental, office supplies and equipment, and wireless phone charges; -- No caps on the amount of Award Dollars Cardmembers can earn; -- Three Card designs for Cardmembers to choose from when they apply online: Mosaic, Harlequin, and Bubbles -- inspired by the JetBlue airplane tailfins; -- Automatic enrollment in JetBlue's TrueBlue program; -- 12-month extended life on TrueBlue points by simply purchasing a JetBlue flight or earning one TrueBlue point with the JetBlue Business Card annually, before current points expire; -- A US$40 annual fee and unlimited, fee-free additional Cards; -- JetBlue's CompanyBlue tool, enabling small business owners to track ticket activity, spending, and flight credits. In addition, low change fees, transferable flight credits, free same-day standby, and confirmed seats provide travel flexibility for small business owners; -- The OPEN Savings program, which offers savings at select travel and service providers, and business suppliers; -- Retail and travel protections such as Global Assist, Car Rental Loss & Damage Insurance, Purchase Protection Insurance, Travel Accident Insurance, American Express Card Baggage Insurance, Buyers Assurance Plan, Automatic Bill Payment, Express Cash Emergency Card Replacement, Emergency Check Cashing, and 24-hour customer service. About OPEN from American Express OPEN is the American Express team dedicated exclusively to the success of small business owners and their companies. The OPEN Team supports business owners with exceptional service. With tailored products and services, the team delivers purchasing power, flexibility, control and rewards to help customers run their business. Specifically, business owner customers can leverage an enhanced set of products, tools, services and savings, including charge and credit cards, convenient access to working capital, robust online account management capabilities and savings on business services from an expanded lineup of partners. Based in Forest Hills, New York, JetBlue Airways Corp. (Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger air transportation services primarily in the United States. As of Feb. 14, 2006, the Company operated approximately 369 daily flights serving 34 destinations in 15 states, Puerto Rico, the Dominican Republic, and the Bahamas. The Company also provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems and Internet services, through its wholly owned subsidiary, LiveTV, LLC. * * * Fitch Ratings downgraded on Sept. 17, 2006, the debt ratings of JetBlue Airways Corp. as: -- Issuer Default Rating to 'B' from 'B+'; and -- Senior unsecured convertible notes to 'CCC/RR6' from 'B-/RR6.' This action affects approximately US$425 million of outstanding debt. The Rating Outlook for JetBlue is 'Stable'. ===================== E L S A L V A D O R ===================== TARGUS GROUP: Moody's Assigns Loss-Given-Default Rating ------------------------------------------------------- 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. consumer product sector last week, the rating agency affirmed its B2 Corporate Family Rating for Targus Group International Inc., and raised its rating on the company's US$40 million Guaranteed First Lien Senior Secured Revolver Due 2011 to Ba3 from B2. Moody's assigned an LGD2 rating to those bonds suggesting lenders will experience a 27% loss in the event of a default. 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%). Headquartered in Anaheim, California, Targus Group International Inc. -- http://www.targus.com/-- supplies notebook carrying cases and accessories. The company has offices on every continent and distributes in over 145 countries including Argentina, Barbados, Costa Rica and El Salvador. ================= G U A T E M A L A ================= * GUATEMALA: Will Strengthen Bilateral Relations with Russia ------------------------------------------------------------ Guatemala will build up bilateral relations with Russia, Prensa Latina reports. Prensa Latina underscores that after the visit of Serguei Kislayak -- the Russian Assistant Foreign Affairs Minister -- to Guatemala, the two nations decided to intensify their relations, especially on trade and investments. Commercial exchange is quite low, at US$40 dollars per year. The Russian government considers it could be much greater than that, Prensa Latina says, citing Minister Kislayak. Minister Kislayak told Prensa Latina, "We have scheduled signing a promotion and protection agreement, with the possibility that Russian entrepreneurs will come here to invest." Luis Fernando Andrade, the Assistant Foreign Affairs Minister of Guatemala, told Prensa Latina that the strengthening of relations could start now. The Guatemalan government is particularly keen on strengthening the sugar industry. Martha Altoaguirre -- also an Assistant Foreign Affairs Minister of Guatemala -- said that trade and cooperation in fields like science and mining were discussed, Prensa Latina notes. * * * Fitch Ratings assigned these ratings on Guatemala: Rating Rating Date ------ ----------- Country Ceiling BB+ Feb. 22, 2006 Long Term IDR BB+ Feb. 22, 2006 Short Term IDR B Feb. 22, 2006 Local Currency Long Term Issuer Default Rating BB+ Feb. 22, 2006 Fitch also rated Guatemala's senior unsecured bonds: Maturity Date Amount Rate Ratings ------------- ------ ---- ------- Aug. 3, 2007 US$150,000,000 8.5% BB+ Nov. 8, 2011 US$325,000,000 10.25% BB+ Aug. 1, 2013 US$300,000,000 9.25% BB+ Oct. 6, 2034 US$330,000,000 8.125% BB+ ========= H A I T I ========= * HAITI: Minister Visits Brazil to Learn About Biodiesel Program ---------------------------------------------------------------- Joanas Gue, the agriculture minister of Haiti, will visit a prototype biodiesel plant at the federal university of Brasilia UnB in Brazil, according to a statement from Brazil's agrarian development ministry. According to Business News Americas, Minister Gue aims to learn about biodiesel to use it in promoting income generation in poor rural areas in Haiti. BNamericas relates that Brazil's biodiesel program includes tax incentives for producers that buy oilseeds from small-scale farmers. Minister Gue has visited a public transport program in Fortaleza that partially runs on biodiesel, BNamericas reports. * * * 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: Expects Patuca Hydro Project Impact Study in Feb. ------------------------------------------------------------- A project official of Enee, the state-run power firm of Honduras, told Business News Americas that the environmental impact study for the 100-megawatt Patuca III hydro project is expected in February 2007. BNamericas notes that the official said Enee will launch an international tender to draft the project's final design and construct the plant, once the environmental studies have been completed. According to BNamericas, the project would be constructed on the river Patuca in Olancho. Construction is expected to take up to seven years at a cost of US$150 million. Honduras' President Jose Zelaya will be visiting Taiwan in October to secure funding for the final design and construction of Patuca, the official told BNamericas. Honduras and Taiwan will discuss on the possibility of Taiwan Power Company's involvement in the project, BNamericas reports. * * * Moody's Investor Service assigned these ratings on Honduras: Rating Rating Date ------ ----------- Senior Unsecured B2 Sept. 29, 1998 Long Term IDR B2 Sept. 29, 1998 ============= J A M A I C A ============= * JAMAICA: Russky Alyuminiyum to Implement Bauxite Projects ----------------------------------------------------------- Russky Alyuminiyum or RusAl plans to develop bauxite projects in Jamaica, Brazil, Venezuela, and Vietnam, 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 * * * On May 26, 2006, Moody's Investors Service upgraded Jamaica's rating under a revised foreign currency ceiling: -- Long-term foreign currency rating: Ba3 from B1 with stable outlook. =========== M E X I C O =========== AMSCAN HOLDINGS: Moody's Assigns Loss-Given-Default Rating ---------------------------------------------------------- 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. toy company sector last week, the rating agency confirmed its B2 Corporate Family Rating for Amscan Holdings Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on these loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$85mm Gtd. Sr. Sec. First Term Revolver Due 2011 B1 Ba3 LGD2 27% US$325mm Gtd. Sr. Sec. First Term Loan Due 2012 B1 Ba3 LGD2 27% US$60mm Gtd. Sr. Secured 2nd Lien Term Loan Due 2013 B3 B3 LGD4 64% US$175mm 8.75% Gtd. Sr. Sub. Notes Due 2014 Caa1 Caa1 LGD5 85% 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%). About Amscan Holdings Headquartered in Elmsford, New York, Amscan Holdings Inc. makes more than 400 specially designed ensembles of party accessories and novelties, including balloons, invitations, pinatas, stationery, and tableware. Amscan sells to more than 40,000 retail outlets worldwide, mainly party goods superstores, mass merchandisers, and other distributors. Party City accounted for about 13% of sales before the firm bought it in 2005. Amscan itself makes party items (which bring in about 60% of sales) and buys the rest from other manufacturers, primarily in Asia. It has production and distribution facilities in Asia, Australia, Europe, and North America. Berkshire Partners and Weston Presidio are Amscan's principal owners. The company has a wholly owned metallic balloon distribution operations located in Mexico. CINRAM INT'L: Board Says No to Amaranth's Sale Advice ----------------------------------------------------- Cinram International Income Fund informed Amaranth Advisors that its Board of Directors has no intention of selling, or exploring the possibility of selling, the Fund or any of its operating subsidiaries or their respective businesses. The statement came in response to a memorandum issued by Amaranth Canada Trust urging Cinram to immediately retain financial advisors to explore a sale of the Fund, including a going private transaction. Amaranth had issued the memorandum after the Amaranth investment fund group announced significant trading losses in its natural gas trading business. Following Amaranth's disclosure, the trust units of Cinram came under intense selling pressure. Amaranth Canada Trust has beneficial ownership of 8,000,000 trust units of Cinram representing approximately 15.3% of the issued and outstanding trust units, and is the largest equity holder in the fund. Amaranth LLC indirectly beneficially owns all units beneficially owned by Amaranth Canada Trust. In addition, Amaranth has an economic interest in 2,654,895 units. Henri Aboutboul, chairman of Cinram's board reminded Amaranth that the selling pressure on the Fund's units last week was attributable to problems within the Amaranth organization, and was in no way caused by the Fund, which, he claims, remains on track with its business plans. Mr. Aboutboul said that the Board will continue to explore opportunities and strategies for growth and value maximization, with a view to protecting and furthering the long term interests of the Fund and its unit holders, as well of those of its operating subsidiaries and their employees, customers and other stakeholders. Gene Laverty at Bloomberg News reports that Cinram has turned to the Credit Suisse Group for advice on certain acquisitions. About Cinram Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/ -- an indirect wholly owned subsidiary Cinram International Income Fund, provides pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, VHS video cassettes, audio CDs, audio cassettes and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. The company has sales offices in Mexico. * * * As reported in the Troubled Company Reporter on Aug. 3, 2006, Moody's Investors Service assigned a definitive B1 senior secured rating to the US$825 million credit facility of Cinram International Inc. dated May 5, 2006, removing the provisional status from this rating. Moody's also withdrew the B1 senior secured rating from Cinram's prior credit facility, originally dated October 2003. Cinram's Corporate Family Rating is B1 and the outlook is stable. As reported in the Troubled Company Reporter on May 11, 2006, Standard & Poor's Ratings Services lowered its corporate credit rating on prerecorded multimedia manufacturer Cinram International Inc. to 'BB-' from 'BB' following the company's announcement that it had successfully converted into an income trust. The ratings were removed from CreditWatch with negative implications, where they were placed March 3, 2006. CINRAM INTERNATIONAL: Paying Cash Distributions on Oct. 16 ---------------------------------------------------------- Cinram International Income Fund has declared a cash distribution of CDN$0.2708 per unit. This distribution will be paid on or about Oct. 16, 2006, to unitholders of record at the close of business on Sept. 29, 2006. Cinram International Limited Partnership also announced that it will be making a cash distribution of CDN$0.2708 per Class B limited partnership unit. This distribution will also be paid on or about Oct. 16, 2006 to unitholders of record at the close of business on Sept. 29, 2006. The distribution policy of both the Fund and the Partnership is that unitholders of record at the close of business on the last business day of each calendar month will receive a distribution on or about the 15th day of the following month. The monthly distribution will be CDN$0.2708 per unit, representing CDN$3.25 per unit on an annualized basis. About Cinram Cinram International Inc. (TSX: CRW.UN) - http://www.cinram.com/ -- an indirect wholly owned subsidiary Cinram International Income Fund, provides pre-recorded multimedia products and related logistics services. With facilities in North America and Europe, Cinram International Inc. manufactures and distributes pre-recorded DVDs, VHS video cassettes, audio CDs, audio cassettes and CD-ROMs for motion picture studios, music labels, publishers and computer software companies around the world. The company has sales offices in Mexico. * * * As reported in the Troubled Company Reporter on Aug. 3, 2006, Moody's Investors Service assigned a definitive B1 senior secured rating to the US$825 million credit facility of Cinram International Inc. dated May 5, 2006, removing the provisional status from this rating. Moody's also withdrew the B1 senior secured rating from Cinram's prior credit facility, originally dated October 2003. Cinram's Corporate Family Rating is B1 and the outlook is stable. As reported in the Troubled Company Reporter on May 11, 2006, Standard & Poor's Ratings Services lowered its corporate credit rating on prerecorded multimedia manufacturer Cinram International Inc. to 'BB-' from 'BB' following the company's announcement that it had successfully converted into an income trust. The ratings were removed from CreditWatch with negative implications, where they were placed March 3, 2006. DELTA AIR: Adds Daily Nonstop Service to Guadalajara, Mexico ------------------------------------------------------------ Delta Air Lines will add two new routes from its fastest growing domestic hub with new daily nonstop service between Salt Lake City and Winnipeg, Canada and Guadalajara, Mexico. Delta Connection carrier SkyWest Airlines will offer customers two daily nonstop round-trip flights between Salt Lake City and Winnipeg on Jan. 8, 2007. Delta also was awarded Department of Transportation approval for its three-times weekly service between Salt Lake City and Guadalajara, starting Dec. 2, 2006. Bob Cortelyou, the vice president of Network Planning at Delta, said, "We're pleased to provide customers with convenient nonstop service from Delta's fastest growing domestic hub to Manitoba's capital and Mexico's second largest city. With the addition of these two markets, our Salt Lake City hub will offer customers access to 105 cities, further solidifying Salt Lake City's position as one of the largest airline hubs in the West in terms of destination served." The new service to Winnipeg marks Delta's first-ever service to this growing Canadian market and the airline's 11th destination in Canada. To Mexico, Delta's service between Salt Lake City and Guadalajara complements existing daily flights from Atlanta and Los Angeles, in addition to Delta service between the United States and 10 other Mexican destinations. Delta is offering special introductory fares for customers traveling between Winnipeg and various US destinations by Oct. 9, and between Salt Lake City and Guadalajara by Oct. 17. Salt Lake City is Delta's fastest growing domestic hub in terms of destinations served. Since 2005 Delta has added flights to almost 30 new nonstop destinations from Salt Lake City, including the airline's 100th destination from Salt Lake City in March 2006. Salt Lake City is Delta's largest gateway to Hawaii. It is the only Delta hub to offer customers year-round service to Alaska. It is also a growing gateway to Mexico with nonstop service to Cancun, Los Cabos, Puerto Vallarta and Mazatlan. Delta and the Delta Connection carriers offer Salt Lake City customers over 330 peak-day departures to 103 nonstop destinations. Headquartered in Atlanta, Georgia, Delta Air Lines -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. The Company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. As of June 30, 2005, the Company's balance sheet showed US$21.5 billion in assets and US$28.5 billion in liabilities. DIRECTV INC: Opens New Technical Call Center to Support Growth -------------------------------------------------------------- DIRECTV, Inc., has opened its fourth owned-and-operated call center to further strengthen its ability to provide technical support for its customers as it continues to expand its advanced products and services, including the roll out of hundreds of local and national HD channels next year. DIRECTV's Missoula, Mont. Customer Contact Center will have the capacity to employ up to 1,000 customer service professionals dedicated to providing technical support to DIRECTV's more than 15.5 million customers. DIRECTV will be among the largest employers in the state and said it expects to hire more than 600 agents by year-end. The new 74,000-square foot call center was officially opened today at a ribbon cutting ceremony attended by DIRECTV executives and state and local officials. In addition to providing support for the expanding base of DIRECTV HD customers, Missoula customer call center representatives will provide technical help for new DIRECTV products and advanced television services, such as standard- definition and HD digital video recorders and interactive services. "With DIRECTV on the threshold of an exponential growth in capacity, products and services, the technical support provided by the Missoula call center is critical to maintaining customers' satisfaction and ensuring they're able to take advantage of the full array of our industry-leading technology and services," said John Suranyi, president, DIRECTV Sales and Service. "Along with our professional service and installation technicians in the field, our call center agents are on the front lines of an increasingly competitive battle among video providers, and how we fare in that fight will be decided in large part on how well we take care of our customers when they dial 1-800-DIRECTV." Mr. Suranyi added, "Through the commitment of the DIRECTV team and close cooperation of the County and State, we constructed and opened this facility in six months. Everyone's involvement with this project has been fantastic. We are really looking forward to being a productive member of this community and sharing what we believe will be an exciting future." DIRECTV continues to expand its offering of new advanced products and services and will more than quadruple its capacity next year, enabling DIRECTV to offer more local and national HD channels than any other multichannel video provider. Coupled with new content, DIRECTV has also rolled out its most advanced set-top receiver, the DIRECTV Plusr HD DVR, which has the ability to record up to 200 hours of standard definition content or up to 50 hours of HD (MPEG4) programming and enables customers to experience the world's first HD interactive content via the NFL SUNDAY TICKET SuperFan subscription. About DIRECTV The DIRECTV Group, Inc., formerly Hughes Electronics Corp., headquartered in El Segundo, California, is a world-leading provider of multi-channel television entertainment, and broadband satellite networks and services. The DIRECTV Group, Inc. with sales in 2004 of approximately US$11.4 billion is 34% owned by Fox Entertainment Group, Inc., which is owned by News Corp. DIRECTV is currently available in Latin American countries: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto Rico, Trinidad & Tobago, Uruguay, Venezuela and several Caribbean island nations. * * * On June 8, 2005, Moody's assigned a Ba2 rating to DIRECTV's US$1 billion senior unsecured notes. Moody's said the rating outlook is stable. GRUPO MEXICO: Blockade on Southern Copper's Railroad Ends --------------------------------------------------------- The blockade on the railroad supplying a smelter of Southern Copper Corp. -- a unit of Grupo Mexico SA de CV -- has stopped after the striking Peruvian peasants agreed to negotiations with the local government, Reuters reports, citing a senior official. According to Reuters, residents started blocking the railway last week, demanding US$400 million in compensation for environmental damage due to mining on Peru's Pacific coast. Southern Copper, however, denied harming the environment, saying that the blockade had political motives, as the regional elections would be in November. The blockade did not affect production, Reuters notes, citing Southern Copper. "The railroad is clear and the trains (to the smelter) are running," Cristala Constantinides -- the president of the southern Moquegua region -- told Reuters. About Southern Copper Southern Copper Corp. is 75% owned by Grupo Mexico SA de CV. It has mines in Peru and Mexico. About Grupo Mexico Grupo Mexico SA de C.V. -- http://www.grupomexico.com/-- through its ownership of Asarco and the Southern Peru Copper Company, Grupo Mexico is the world's third largest copper producer, fourth largest silver producer and fifth largest producer of zinc and molybdenum. * * * Fitch Ratings assigned these ratings to Grupo Mexico SA de C.V.: -- foreign currency long-term debt, BB; and -- local currency long-term debt, BB. GUESS? INC: Enters Into a Joint Venture with Grupo Axo in Mexico ---------------------------------------------------------------- Guess?, Inc., has entered into a joint venture agreement for Mexico with an affiliate of Grupo Axo, a Mexican company that helps the development of internationally known brands, such as Coach, DKNY and Tommy Hilfiger, in Mexico. The joint venture, a majority of which is owned by Guess?, will engage in the manufacture, wholesale distribution and retail sale of Guess? fashion apparel, accessories and other related products in Mexico. The first Guess? retail store under the joint venture opened in May 2006 in Mexico City and the second one opened in Cancun in July 2006. Paul Marciano, Co-Chairman and Co-CEO of Guess?, Inc., commented, "The formation of our new Mexican joint venture is another step forward in our international expansion. The Guess? brand is already well recognized in Mexico as we had an apparel license in this region for over twenty years until 2004. We believe Mexico is an exciting opportunity for Guess?." Mr. Marciano added, "We have experienced incredible success with Guess? In Canada which also started out as a joint venture in 1994 and is now a wholly-owned subsidiary of Guess? and one of our best performing regions. We hope to achieve similar success with our joint venture partners in Mexico." Andres Gomez, Co-CEO of Grupo Axo, stated, "During our first year of operations in Mexico, we plan to position Guess? as one of the top fashion brands as we look to further expand the presence of Guess? in Mexico." Alberto Fasja Cohen, Co-CEO of Grupo Axo, added, "Our growth strategy for Mexico over the next several years includes the opening of several free standing stores and over 50 shop-in- shops within leading department stores." About Grupo Axo Grupo Axo is a leader in the development of prestigious international brands and products in Mexico, with primary focus on the fashion and hospitality industries. At August 31, 2006 Grupo Axo owned and operated 39 retail stores and over 300 shop- in-shops throughout Mexico. Guess?, Inc., -- http://www.guess.com-- designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, accessories and related consumer products. The company owns and operates retail stores in the United States, Canada and Mexico. The company also distributes its products through better department and specialty stores around the world. * * * As reported in the Troubled Company reporter on March 13, 2006, Standard & Poor's Ratings Services revised its rating outlook on Guess? Inc. to positive from stable. At the same time, Standard & Poor's affirmed the company's ratings, including its 'BB-' corporate credit rating. GRUPO TMM: Closes US$200MM Securitization Facility of 2007 Notes ---------------------------------------------------------------- Grupo TMM, S.A., disclosed the closing of a US$200 million securitization facility with Deutsche Bank AG, London. Under the terms of the Transaction, the company will make equal monthly payments of principal and interest of approximately US$3.2 million from October 2006 to September 2010, a balloon payment of US$40 million in October 2010 and equal monthly payments of principal and interest of approximately US$4.2 million from October 2010 to the final maturity on Sept. 25, 2012. Using part of the proceeds from the Transaction, on Sept. 25, 2006, the company redeemed the total outstanding principal amount of US$155,820,539 million and accrued interest of its Senior Secured Notes due 2007. The remainder of the net proceeds from the Transaction will be used in the implementation of the company's business plan including the purchase of vessels and other transportation assets. Deutsche Bank AG, London, acted as structuring agent of this facility, and provided the funding for the Transaction. The Bank of New York is the trustee for the certificates issued under this facility. Axis Capital Management acted as financial advisor to the Company. Javier Segovia, president of Grupo TMM, said, "We are pleased that the Company was successful in extending its debt maturity while at the same time adding financial flexibility to implement its business strategy going forward." Headquartered in Mexico City, Grupo TMM S.A. (NYSE: TMM)(MEX VALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin American multimodal transportation and logistics company. Through its branch offices and network of subsidiary companies, TMM provides a dynamic combination of ocean and land transportation services. * * * Standard & Poor's Ratings Services raised its corporate credit rating on Grupo TMM S.A. to 'B-' from 'CCC.' The rating was removed from Creditwatch, where it was placed on Dec. 15, 2004. S&P said the outlook is positive. MERIDIAN AUTOMOTIVE: Asks Court to Approve Disclosure Statement --------------------------------------------------------------- Meridian Automotive Systems, Inc., and its eight debtor- affiliates ask the U.S. Bankruptcy Court for the District of Delaware to approve their Disclosure Statement, explaining their Fourth Amended Joint Plan of Reorganization, as containing adequate information within the meaning of Section 1125(a)(1) of the Bankruptcy Code. The Court will convene a hearing on Oct. 10, 2006, to consider approval of the Disclosure Statement. Edward J. Kosmowski, Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, notes that Section 1125 requires the Court to approve a written disclosure statement prior to allowing a debtor to solicit acceptances for a plan of reorganization. To approve a disclosure statement, the Court must find that the disclosure statement contains adequate information defined as "information of a kind, and in sufficient detail . . . that would enable a hypothetical reasonable investor typical of holders of claims or interests [of the Debtors] . . . to make an informed judgment about the plan." Headquartered in Dearborn, Mich., Meridian Automotive Systems, Inc. -- http://www.meridianautosystems.com/-- supplies technologically advanced front and rear end modules, lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers. Meridian operates 22 plants in the United States, Canada and Mexico, supplying Original Equipment Manufacturers and major Tier One parts suppliers. The Company and its debtor-affiliates filed for chapter 11 protection on April 26, 2005 (Bankr. D. Del. Case Nos. 05-11168 through 05-11176). James F. Conlan, Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor, LLP, represent the Debtors in their restructuring efforts. Eric E. Sagerman, Esq., at Winston & Strawn LLP represents the Official Committee of Unsecured Creditors. The Committee also hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an adversary proceeding against Meridian's First Lien Lenders and Second Lien Lenders to invalidate their liens. When the Debtors filed for protection from their creditors, they listed US$530 million in total assets and approximately US$815 million in total liabilities. (Meridian Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/or 215/945-7000). MERIDIAN AUTO: Wants Uniform Solicitation Procedures Approved ------------------------------------------------------------- Meridian Automotive Systems, Inc., and its eight debtor- affiliates ask the U.S. Bankruptcy Court for the District of Delaware to establish uniform procedures for the solicitation and tabulation of votes to accept their Fourth Amended Joint Plan of Reorganization. Solicitation Packages After the Court approves the Disclosure Statement, the Debtors propose to distribute or cause to be distributed solicitation packages to those Holders of Claims in Classes entitled to vote on the Plan, containing copies of: (a) a CD-ROM containing the Disclosure Statement, together with the Plan and other exhibits; (b) the Solicitation Order, excluding its exhibits; (c) a notice of the Confirmation Hearing; (d) a ballot together with a return envelope; and (e) other materials as the Court may direct or approve, including supplemental solicitation materials the Debtors may file with the Court. With respect to any transferred Claim, the Debtors propose that the transferee will be entitled to receive a Voting Solicitation Package and cast a ballot on account of the transferred Claim only if: (a) all actions necessary to effect the Claim transfer have been completed by the Record Date; or (b) the transferee files, not later than the Record Date: * the required documentation to evidence that transfer; and * a sworn statement of the transferor supporting the validity of the transfer. In the event a Claim is transferred after the transferor has executed and submitted a ballot to the voting agent, The Trumbull Group, LLC, the transferee will be bound by any vote made on the ballot by the Holder as of the Record Date of the Transferred Claim. Holders of Claims in the Unimpaired Non-Voting Classes will receive: (a) the Confirmation Hearing Notice; and (b) a notice of their non-voting status under the Plan. The Debtors propose that they not be required to transmit a solicitation package to the Rejecting Classes, as these Classes are presumed to have rejected the Plan. The Debtors expect to commence distribution of the Voting Solicitation Packages, the Unimpaired Notices of Non-Voting Status, and the Rejecting Class Notices no later than six days after the Court approves the proposed Solicitation Procedures. Any party wishing to obtain a copy of the Disclosure Statement and the Plan can do so by accessing the documents on the Internet, free of charge, at http://www.trumbullgroup.com/or by contacting the Voting Agent to obtain a copy of the documents at the Debtors' expense. Ballot Forms The Debtors propose to distribute to creditors one or more ballot forms based on Official Form No. 14, but have been modified to address the particular aspects of the Debtors' Chapter 11 cases. The appropriate ballot forms, along with return envelopes, will be distributed to the Voting Classes: Class Type of Claim ----- ------------- 3 Prepetition First Lien Claims 4 Prepetition Second Lien Claims 5 General Unsecured Claims The Plan designates four claim categories as unclassified for purposes of voting on and receiving distributions under the Plan. The Holders of these unclassified Claims are not entitled to vote to accept or reject the Plan: 1. Administrative Expense Claims, 2. DIP Claims, 3. Priority Tax Claims, and 4. Professional Compensation Claims. Voting Deadline The Debtors ask the Court to fix Nov. 10, 2006, at 4:00 p.m. Eastern Time, as the deadline by which all original ballots must be properly executed, completed, delivered to, and received by the Voting Agent. Temporary Allowance The Debtors propose that if any party wishes to have its Claim allowed for voting purposes, that party must serve on the Debtors and file with the Court no later than 10 days before the Voting Deadline a motion temporarily allowing the Claim for purposes of voting. The Debtors ask the Court to fix Nov. 7, 2006, as the date to consider all those motions. Confirmation Hearing The Debtors ask the Court to fix Nov. 17, 2006, at 10:30 a.m. Eastern Time, as the Plan Confirmation Hearing, which may be continued from time to time without further notice to creditors or other parties-in-interest. The Debtors propose to publish the Confirmation Hearing Notice in The Detroit Free Press, USA Today, and the national edition of The Wall Street Journal, not less than 11 days after the Solicitation Commencement Date. Confirmation Objection Deadline The Debtors ask the Court to fix Nov. 10, 2006, at 4:00 p.m. Eastern Time, as the last date for filing and serving written objections to the confirmation of the Plan. Objections, if any, to the confirmation of the Plan must: (i) be made in writing; (ii) state the name and address of the objecting party and the nature of the Claim or the party's interest; (iii) state with particularity the legal and factual basis and nature of any objection to the Plan; and (iv) be filed with the Court, together with proof of service and served so that they are received on or before the Objection Deadline by: * the Debtors' counsel, * the United States Trustee, and * the Creditors' Committee's counsel. Headquartered in Dearborn, Mich., Meridian Automotive Systems, Inc. -- http://www.meridianautosystems.com/-- supplies technologically advanced front and rear end modules, lighting, exterior composites, console modules, instrument panels and other interior systems to automobile and truck manufacturers. Meridian operates 22 plants in the United States, Canada and Mexico, supplying Original Equipment Manufacturers and major Tier One parts suppliers. The Company and its debtor-affiliates filed for chapter 11 protection on April 26, 2005 (Bankr. D. Del. Case Nos. 05-11168 through 05-11176). James F. Conlan, Esq., Larry J. Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at Sidley Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon L. Morton, Esq., Edward J. Kosmowski, Esq., and Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor, LLP, represent the Debtors in their restructuring efforts. Eric E. Sagerman, Esq., at Winston & Strawn LLP represents the Official Committee of Unsecured Creditors. The Committee also hired Ian Connor Bifferato, Esq., at Bifferato, Gentilotti, Biden & Balick, P.A., to prosecute an adversary proceeding against Meridian's First Lien Lenders and Second Lien Lenders to invalidate their liens. When the Debtors filed for protection from their creditors, they listed US$530 million in total assets and approximately US$815 million in total liabilities. (Meridian Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/or 215/945-7000). NEWPARK RESOURCES: Names James Braun as Vice President and CFO -------------------------------------------------------------- Newpark Resources, Inc., named James E. Braun as vice president and chief financial officer, effective Oct. 11, 2006. The Company also disclosed that Mark J. Airola has been named General Counsel and Chief Administrative Officer, newly created position, effective Oct. 2, 2006. Eric Wingerter will relinquish the position of acting chief financial officer and remain as vice president and chief accounting officer. Paul Howes, president and chief executive officer, stated, "We are extremely pleased to welcome both Jim and Mark to our senior leadership team and look forward to benefiting from their broad experience in their respective fields. They bring not only technical skills and expertise to their positions but also strong leadership experience. Eric has done a tremendous job as acting CFO and I am pleased he will continue in his role as our Chief Accounting Officer. Before joining the Company, Mr. Braun served in several management positions at Baker Hughes Incorporated. Since 2002 he was vice president, Finance of Baker Oil Tools, where his responsibilities included financial management of a global oilfield service business and serving as a member of the Leadership Team responsible for the strategic direction of the company. From 1998 until 2002, Mr. Braun was Vice President, Finance and Administration of Baker Petrolite, the oilfield specialty chemical business division of Baker Hughes, also serving on the Leadership Team. He served as vice president and controller of Baker Hughes Incorporated, and he was with Deloitte & Touche for 12 years, where his focus was on the oilfield service industry. Mr. Braun is a Certified Public Accountant and received a BS in Accounting from the University of Illinois. Mr. Airola has practiced law for 22 years, primarily with large, publicly traded companies. Recently he was Assistant General Counsel and Chief Compliance Officer for BJ Services Company, serving as an executive officer since 2003. From 1988 to 1995, he held the position of Senior Litigation Counsel at Cooper Industries, Inc., with initial responsibility for managing environmental regulatory matters and litigation and subsequently managing the company's commercial litigation. He received his JD from the University of Houston Law Center and a combined bachelor's degree in accounting and finance from Baylor University. The terms of the employment agreements with Mr. Braun and Mr. Airola include, among other provisions, an inducement award of 100,000 time-restricted shares, which will vest ratably over three years. The grant of the inducement awards has been approved by the independent Compensation Committee of the Company's board of directors and is exempt from the shareholder approval requirements of the New York Stock Exchange. Newpark Resources, Inc., (NYSE: NR) -- http://www.newpark.com/ -- is a worldwide provider of drilling fluids,environmental waste treatment solutions, and temporary worksites and access roads for oilfield and other commercial markets in the United States Gulf Coast, west Texas, the United States Mid-continent, the United States Rocky Mountains, Canada, Mexico, and areas of Europe and North Africa. * * * As reported in the Troubled Company Reporter on Aug. 15, 2006 Standard & Poor's Ratings Services assigned its 'BB-' rating and '1' recovery rating to oil field services company Newpark Resources Inc.'s (B+/Watch Neg/--) planned US$150 million senior secured term loan. The 'BB-' rating was also placed on CreditWatch with negative implications. All the ratings on the Company are on CreditWatch. As reported in the Troubled Company Reporter on Aug. 14, 2006 Moody's Investors Service assigned a B2 rating to Newpark Resources, Inc.'s new US$150 million five-year senior secured term loan facility. At the same time, Moody's affirmed Newpark's B1 Corporate Family Rating and B3 senior subordinated note rating. The rating outlook remains negative pending the filing of its financial statements for the last five fiscal years, as well as for the fiscal quarters within 2004 and 2005. VITRO SA: Plans to Swap US$225MM in 11.75% Notes Due 2013 --------------------------------------------------------- Vitro SA de CV told Reuters that it plans to exchange up to US$225 million in 11.75% notes due 2013 for a similar debt amount. Reuters relates that a spokesperson of Vitro said that the firm issued the notes in 2003. However, the company decided to register it under the US Securities Act to boost liquidity. Holders of the notes will be given until Oct. 23 to exchange them unless Vitro decides an extension on the deadline, Reuters reports. Headquartered in Nuevo Leon, Mexico, Vitro, S.A. de C.V. -- http://www.vitro.com/-- (NYSE: VTO; BMV: VITROA), through its subsidiary companies, is one of the world's leading glass producers. Vitro is a major participant in three principal businesses: flat glass, glass containers and glassware. Its subsidiaries serve multiple product markets, including construction and automotive glass; food and beverage, wine, liquor, cosmetics and pharmaceutical glass containers; glassware for commercial, industrial and retail uses. Vitro also produces raw materials and equipment and capital goods for industrial use, which are vertically integrated in the Glass Containers business unit. Founded in 1909, Monterrey, Mexico-based Vitro has joint ventures with major world-class partners and industry leaders that provide its subsidiaries with access to international markets, distribution channels and state-of-the-art technology. Vitro's subsidiaries have facilities and distribution centers in eight countries, located in North, Central and South America, and Europe, and export to more than 70 countries worldwide. * * * As reported in the Troubled Company Reporter on Mar. 27, 2006, Standard & Poor's Ratings Services lowered its long-term local and foreign currency corporate credit ratings assigned to glass manufacturer Vitro S.A. de C.V. and its glass containers subsidiary Vitro Envases Norteamerica S.A. de C.V. (Vena) to 'B-' from 'B'. Standard & Poor's also lowered the long-term national scale corporate credit rating assigned to Vitro to 'mxBB+' from 'mxBBB-' with negative outlook. Standard & Poor's also lowered the rating assigned to Vitro's notes due 2013 and Servicios y Operaciones Financieras Vitro S.A. de C.V. notes due 2007 (which are guaranteed by Vitro) to 'CCC' from 'CCC+'. Standard & Poor's also lowered the rating assigned to Vena's notes due 2011 to 'B-' from 'B'. * MEXICO: IFC Grants MXN130.5MM to Irapuato-La Piedad Highway ------------------------------------------------------------- The International Finance Corp., the private sector arm of the World Bank Group, will provide a partial credit guarantee of up to MXN130.5 million to support the expansion, upgrading, operation and maintenance of a 74.3 km road between the cities of Irapuato and La Piedad in central Mexico. IFC will grant the guarantee to Banco Santander, S.A. who will be joined by other banks in a syndicated financing to provide up to 580 Million Pesos to Concesionaria Irapuato La Piedad, S.A. de C.V., a wholly-owned subsidiary of Empresas ICA, S.A.B. de C.V. This operation is the first project in Mexico offered in concession to the private sector under an innovative program for public private partnerships developed by the Government in the last three years. The program's main objectives are: -- developing critical public infrastructure in Mexico; -- increasing the quality and efficiency in the rendering of public services; -- creating new financing sources from the private sector in the development of productive infrastructure; and -- achieving an efficient risk allocation of resources between the Government and the private sector. IFC has played a critical role supporting the Government of Mexico developing its public-private partnership program by funding a technical assistance program that helped develop the new framework. Atul Mehta, IFC's Director for Latin America and the Caribbean, said: "This financing is part of IFC's integrated strategy for Mexico in the infrastructure sector, which included helping develop the necessary framework for the PPP program, and providing financing for the first project to be launched under the program. IFC expects that this project would set a positive precedent that will encourage further private sector participation in the transport sector in Mexico." The modernization of the Irapuato-Piedad road is being done in accordance with a competitively tendered 20-year concession and a 20-year services contract entered into by the Mexican Ministry of Communications and Transportation (SCT) and the company on October 2005. Unlike traditional toll road concessions, under this agreement the Ministry will make quarterly payments to the company for the services effectively rendered based on its performance as well as on the number of vehicles that use the road. Francisco A. Tourreilles, IFC's Director of the Infrastructure Department, also noted, "IFC is pleased to be working with ICA and Banco Santander in this path breaking PPP transaction in Mexico, which will have an important demonstration effect for PPP infrastructure projects in that country and, more broadly, in Latin America. We believe that the successful development of effective private-public partnership models such as this one will play an important role in helping attract critically needed private investments in infrastructure in the region." "IFC's participation in this project confirms PPPs structure's strength and viability. The Mexican government has been developing the PPP mechanism for the past three years, and ICA has participated actively in the process," said Alonso Quintana, ICA's Administration and Finance Director. Octaviano Couttolenc, Santander's Head of Structured Finance Mexico, said, "Santander has a full commitment for financing infrastructure in Mexico, we are grateful to ICA for their confidence in selecting us as Advisor and Bookrunner for the first PPP transaction in Mexico. IFC's participation contributed to the success of this transaction, and we look forward to working together on other transactions in the future." IFC in Mexico Since 1956, IFC has invested US$5.6 billion, including US$2.2 billion in syndications, in sectors ranging from infrastructure and manufacturing to agribusiness and the financial sector in Mexico, making it the third-largest recipient of IFC financing in dollar value, after Brazil and Argentina. IFC committed US$260 million in FY06 in new financing in Mexico, and it held a total portfolio of US$1.1 billion, including syndications, as of July 31, 2006. IFC's strategy for Mexico focuses on: -- enhancing the competitiveness of the private sector; -- further deepening the financial sector with the introduction of specialized products and markets; -- promoting investments in areas newly opened to private sector participation; and -- promoting sustainable environmental and social development and good corporate governance. * * * As reported in the Troubled Company Reporter on April 17, 2006, Standard & Poor's Ratings Services placed an mxBB+ long-term rating with stable outlook on the state of Mexico. =========== P A N A M A =========== CHIQUITA BRANDS: Says Spinach Issue to Hurt Quarterly Profit ------------------------------------------------------------ Chiquita Brands International Inc. told Financialwire that the spinach issue will damage the company's profit in the third quarter. Financialwire relates that the recent E.coli outbreak linked to fresh spinach, which made at least 173 people sick and killed as many as three, has resulted to a cut in sales and a boost in costs to Chiquita Brands, as retailers and restaurants stopped selling fresh spinach, which the company is selling through its Fresh Express unit. Chiquita Brands told Financialwire that it was collaborating with investment bank Fortis Securities on options for its Great White Fleet of 12 refrigerated cargo vessels. Cincinnati, Ohio- based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- operates as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand names in over 60 countries including Panama. It also distributes and markets fresh-cut fruit and other branded, value-added fruit products. On June 15, 2006, Standard & Poor's Ratings Services affirmed its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including the 'B+' corporate credit rating. S&P said the rating outlook is negative. CHIQUITA BRANDS: Suspending Quarterly Dividend to Reduce Debt ------------------------------------------------------------- Chiquita Brands International Inc. said it has come up with two initiatives to enhance financial flexibility and reduce debt. The two actions are the exploration of strategic alternatives for the sale and long-term management of its shipping assets and shipping-related logistics activities, and the suspension of its quarterly dividend. Exploring strategic alternatives for shipping-related assets after several months of evaluation, Chiquita is launching a process to explore strategic alternatives with respect to the sale and long-term management of its overseas shipping assets and shipping-related logistics operations. The Company will consider various structures, including the sale and lease-back of the company's owned ocean-going shipping fleet, the sale or outsourcing of related ocean-shipping assets and container operations, and entry into a long-term strategic partnership to meet all of Chiquita's international cargo transportation needs. Fernando Aguirre, the Company's chairman and chief executive officer, said, "Our Great White Fleet has represented a strong competitive advantage for Chiquita for many years, and continuing to excel in cold-chain management -- delivering our high-quality fresh products quickly and efficiently -- will remain critical to our company. However, we believe there is an opportunity to enhance shareholder value while maintaining high quality and competitive long-term operating costs by partnering with an expert shipping service provider that can grow with Chiquita. This would allow us to focus our efforts and resources even more on strengthening customer relationships and providing healthy, fresh foods to consumers. In addition, an asset sale would generate significant capital, which would be used primarily to reduce debt, as well as to invest in new growth opportunities." Chiquita has been working with Fortis Securities, a leading global corporate and investment bank to the maritime industry, as a financial advisor to support the exploration of strategic alternatives. The Company does not expect to disclose developments with respect to the process unless and until its board of directors has approved a definitive transaction. There can be no assurance that the activities will ultimately lead to an agreement or a transaction. Great White Fleet, a wholly owned subsidiary of Chiquita, manages the Company's global ocean transportation and logistics operations. Great White Fleet operates 12 owned refrigerated cargo vessels and charters additional vessels for use principally in the long-haul transportation of Chiquita's fresh fruit products from Latin America to North America and Europe. The owned vessels consist of eight reefer ships and four container ships, which transport approximately 70 percent of Chiquita's banana volume shipped to core markets in Europe and North America. Suspending Dividend Chiquita's board of directors has also voted to discontinue the Company's quarterly cash dividend of US$0.10 per share. Chiquita intends to redirect the approximately US$17 million in annual funds that otherwise would have been allocated for dividends to reduce debt and enhance financial flexibility. Mr. Aguirre continued, "In the last two years, we have not only significantly transformed our business, but the environment in which we operate has also changed. We successfully completed the strategic acquisition of Fresh Express last year, which has diversified our business and provided new avenues for growth, but also substantially increased our total debt. In light of our obligations to lenders as well as the challenging current market environment, we believe discontinuing the dividend is in the best interest of our shareholders." Business Update Mr. Aguirre explained that the company has been and will continue to be negatively impacted by changes in the rules regarding banana imports into the European Union. In the third quarter, Chiquita has continued to experience markedly lower banana prices in both core European and trading markets, as well as excess fruit supply. Further, due to the current industry concerns regarding the safety of fresh spinach in the United States, the Company's Fresh Express operations are experiencing lower sales and unforeseen costs. The company also will be investing additional funds to reinforce consumer confidence in the quality of Fresh Express products and food safety standards. As a result of these difficult market conditions and continuing uncertainties, the Company's third quarter 2006 financial results are expected to be significantly impacted. Mr. Aguirre concluded, "Despite the current market conditions and near-term challenges, we remain committed to our long-term strategy to be a leader in branded, healthy, fresh foods. While we are disappointed with our expected third quarter results, we believe the initiatives are prudent steps toward increasing our financial flexibility to manage through the current market environment and execute on our long-term plans." About Chiquita Brands International Headquartered in Cincinnati, Ohio, Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide including Panama in Latin America. * * * In June 2006, Standard & Poor's Ratings Services affirmed its ratings on Chiquita Brands International Inc., including the 'B+' corporate credit rating. The rating outlook was negative. In the same month, Moody's Investors Service also affirmed the B1 rating on Chiquita Brands LLC's senior secured bank credit facilities, the B3 rating on senior unsecured notes at Chiquita Brands International Inc., as well as its B2 corporate family rating. GRUPO BANISTMO: Acquisition May Open Doors for Competitors ---------------------------------------------------------- The acquisition of Grupo Banistmo by HSBC Holdings Plc could bring opportunity to rivals to take market share from Banistmo during the merger process, Dow Jones Newswires reports, citing bankers and analysts. As reported in the Troubled Company Reporter-Latin America on July 24, 2006, HSBC Holdings offered US$1.77 billion to acquire Grupo Banistmo. Banistmo's owners that control 65% of the bank accepted HSBC's offer of US$52.63 per share. Dow Jones relates that the deal received the approval of Panama's banking regulator. It is expected to close in the fourth quarter. Mauricio Choussy -- the director of ratings agency Fitch Centroamerica -- told Dow Jones, "In our opinion, when there is an acquisition there are movements that competitors try to take advantage of and in that way Central America is very similar to developed markets. One of the toughest jobs of the executives in charge of mergers and acquisitions is protecting the client base during the merger." Dow Jones notes that Rafael Moscarella -- the chief financial officer for the banking unit of Grupo Financiero Continental -- said, "During the time it takes to complete a merger, clients start to look at other banks to see what other options they have. I think there will be important opportunities during this process for local banks." Meanwhile, Luis Rivas -- the chief executive of Nicaragua's Banco de la Produccion -- wasn't overly worried about HSBC Holdings' entry into the Nicaraguan market, as Banistmo has a unit in the nation, Dow Jones says. "In the short term I don't see major problems in terms of competition. In the medium term, unless they do further acquisitions, I don't see them being a competitive threat for any of the established banks in the country. I think that domestically owned banks, at least in our case, have been preparing for this for a few years. We are not worried," Mr. Rivas told Dow Jones. * * * As reported in the Troubled Company Reporter-Latin America on July 25, 2006, Moody's Investors Service placed the Ba1/Not Prime long- and short-term deposit ratings of Primer Banco del Istmo, S.A. aka Banistmo on review for possible upgrade. * * * As reported in the Troubled Company Reporter-Latin America on July 25, 2006, Standard & Poor's Ratings Services placed its 'BB+/B' counterparty credit rating on Primer Banco del Istmo S.A. aka Banistmo on CreditWatch with positive implications. S&P has also placed its 'BB/B' counterparty credit rating on Banco Salvadoreno S.A. on CreditWatch with positive implications and affirmed its ratings on HSBC Holdings PLC (HSBC) and related entities, including the 'AA-/A-1+' counterparty credit rating on HSBC, with a stable outlook. ======= P E R U ======= * PERU: Fonafe Will Sell 39.95% Stake in Local Power Firm --------------------------------------------------------- ProInversion, the private investment promotion agency of Peru, said in a statement that Fonafe -- the nation's state fund for business financing -- will sell its 39.95% stake in local power firm Eepsa. According to Business News Americas, ProInversion will accept bids for minimum 20% participation from Sept. 25 to 27. BNamericas relates that the final transaction will be on Sept. 29. A ProInversion source told BNamericas that the state will accept a minimum PEN1.18 per share. The minimum bid price would be PEN24.5 million for the 20% stake or PEN49 million for 39.95%. BNamericas notes that the sale of assets is being conducted as part of legislative decree 674, which requires the state to privatize several assets. The source told BNamericas that Eepsa owns: -- 142-megawatt Malacas thermo plant, -- Parinas gas processing plant, and -- gas distillation and cracking plant. * * * 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 * PERU: IDB Picks ICF Int'l to Perform Audit on Camisea Project --------------------------------------------------------------- The Inter-American Development Bank and the Andean Development Corporation -- Corporacion Andina de Fomento, CAF -- have selected ICF International to perform an independent environmental and social audit of the Camisea Project in Peru. The audit will start by the end of September and is presently scheduled to be completed in four months. Results of the audit will be disclosed to the public. The concept of this environmental and social audit was established by the IDB and CAF in June 2003, prior to IDB approval of financing of the downstream component of the Camisea project with the project company Transportadora de Gas del Peru or TGP. The loan contract provides for conduct of an annual audit by TGP with independent consultants during project operation and for results being disclosed to the public. IDB and CAF decided to carry out this additional audit to complement this effort. The objectives of the audit are to evaluate the environmental and social performance of the project, and if it is the case, identify any environmental and social impacts and risks that may not have been adequately mitigated. The audit will evaluate both the downstream and upstream components of the project. The audit is in addition to various existing and ongoing independent environmental and social monitoring and supervision activities to assess performance and compliance by the project. These activities are being undertaken by external experts reporting to the IDB, the agencies of the Government of Peru, and the local community-monitoring program. The Draft Terms of Reference or TOR for the audit were made available for public consultation from May 5 to May 24, 2006, and extensively consulted with stakeholders. A consultation meeting was held in Lima on May 19, 2006, and upon the stakeholders' request, the IDB extended the consultation period until June 2, 2006. Request for proposals were sent to fifteen environmental and social auditing companies and institutions: -- Arthur D. Little; -- Battelle; -- Bechtel; -- CH2M Hill; -- Currie & Brown; -- ENSR; -- Environ International Corporation; -- E3 Environmental Consulting; -- ICF Consulting; -- Integrated Environments; -- International Network for Environmental Compliance and Enforcement; -- Mott Mac Donald; -- Netherlands Commission for Environmental Impact Assessment; -- Tetra Tech NUS, Inc; and -- Marshal Macklin Monaghan. Five proposals were presented: -- Arthur D. Little, -- E3, -- ICF Consulting, -- Integrated Environments, and -- Mott Mac Donald. The proposals were reviewed by a selection panel composed of IDB technical staff, CAF technical staff, and one external advisor. Proposals were evaluated based on technical criteria, including previous experience in similar audits of natural gas and liquids of natural gas pipeline projects, specific experience of the proposed team in similar audits, and in the Project's specific ecosystems, language capabilities in English and Spanish, and understanding of the objectives and scope of the audit under ISO 14001. This audit is part of an ongoing IDB commitment to independent evaluations of the environmental and social performance of the Camisea project. Additional detailed information on the project status is available at: http://www.camisea.com.pe/; http://www.tgp.com.pe; http://www.iadb.org/exr/pic/camisea/camisea.cfm;and http://www.camisea-gtci.gob.pe/. * * * 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 ===================== DRESSER INC: Commences Cash Tender Offer for 9-3/8% Sr. Notes ------------------------------------------------------------- Dresser, Inc., has commenced a cash tender offer for any and all of its outstanding 9-3/8% senior subordinated notes due 2011 and a solicitation of consents for proposed amendments to the indenture. The tender offer will expire at midnight, New York City time, on Oct. 23, 2006, and the solicitation of consents at 5 p.m., New York City time, on Oct. 6, 2006. The times and dates may be extended or terminated at the company's discretion. Dresser is offering to purchase the notes at a price of US$1,048.13 for each US$1,000 of principal amount of notes tendered, plus accrued and unpaid interest up to, but not including, the date the notes are paid under the terms of the offer. This purchase price includes a US$20 fee for each US$1,000 of principal amount for holders who validly tender, and do not withdraw, their notes and who deliver, and do not revoke, their consents prior to the expiration of the consent solicitation. The company's obligation to accept tendered notes for payment is contingent upon a majority of the holders consenting to the proposed amendments to the indenture and the company's consummation of the previously announced refinancing of its existing senior debt facilities, with available borrowings sufficient to pay amounts due to tendering holders of the notes. If the proposed amendments, which eliminate many restrictive covenants contained in the indenture, become operative, they will be binding on all non-tendering holders. The transaction is described fully in the Offer to Purchase and Consent Solicitation Statement and the related Consent and Letter of Transmittal, both dated Sept. 25, 2006. The company has retained Morgan Stanley to act as dealer manager and solicitation agent in connection with the tender offer and consent solicitation. MacKenzie Partners, Inc. is the depositary and information agent for the offer. Questions regarding the tender offer and consent solicitation should be directed to: Morgan Stanley Tel: 800-624-1808 (US toll-free) 212-761-5746 (collect) Requests for copies of the Offer to Purchase and Consent Solicitation Statement and the related Consent and Letter of Transmittal to: MacKenzie Partners Tel: 800-322-2885 (US toll-free) 212-929-5500 (collect) This press release does not constitute an offer to purchase, a solicitation of an offer to purchase or a solicitation of consents with respect to the notes nor is this release an offer or solicitation of an offer to sell new securities. Neither the Dresser Board of Directors nor any other person makes any recommendation as to whether holders of notes should tender their notes, and no one has been authorized to make such a recommendation. Holders of notes must make their own decisions as to whether to tender their notes, and if they decide to do so, the principal amount of notes to tender. About Dresser Based in Addison, Texas, Dresser, Inc. -- http://www.dresser.com/-- designs, manufactures and markets equipment and services sold primarily to customers in the flow control, measurement systems, and compression and power systems segments of the energy industry. The Company has a comprehensive global presence, with over 8,500 employees and a sales presence in over 100 countries worldwide including Mexico and Puerto Rico. * * * As reported in the Troubled Company Reporter on Aug. 3, 2006, Moody's Investors Service downgraded Dresser, Inc.'s ratings. Moody's said the rating outlook is negative. Dresser's Corporate Family Rating was downgraded to B1 from Ba3. The rating for the Company's Senior Secured Tranche C Term Loan maturing 2009 was downgraded to B1 from Ba3. Moody's also downgraded the rating for the Company's Senior Unsecured Term Loan maturing 2010 to B2 from B1. The Company's Senior Subordinated Notes maturing 2011 was downgraded to B3 from B2. NBTY INC: Moody's Assigns Loss-Given-Default Rating --------------------------------------------------- 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. natural product processors sector last week, the rating agency upgraded its probability-of-default ratings and assigned loss-given-default ratings on NBTY Inc.'s loans and bond debt obligations: Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$125mm Gtd. Sr. Sec. Revolver (2008) Ba2 Baa3 LGD2 13% US$120mm Gtd. Sr. Sec. Term Loan A (2010) Ba2 Baa3 LGD2 13% US$200mm 7.125% Gtd. Sr. Sub. Notes (2015) B1 Ba3 LGD4 66% In addition, Moody's confirmed the company's Ba2 Corporate Family Rating at Ba2. 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 Bohemia, New York, NBTY Inc. -- http://www.nbty.com/-- together with its subsidiaries, engages in the manufacture, marketing, and retail of nutritional supplements in the United States and worldwide. The company offers approximately 22,000 products, including vitamins, minerals, herbs, sports nutrition products, diet aids, and other nutritional supplements under various company's and third-party brands. NBTY was founded in 1971 under the name Nature's Bounty Inc. and changed its name to NBTY Inc. in 1995. RENT-A-CENTER: Elects Leonard Roberts to Board of Directors ----------------------------------------------------------- Rent-A-Center, Inc., named Leonard H. Roberts to its Board of Directors. Mr. Roberts served as the Executive Chairman of the Board of Directors of RadioShack Corp. from 2005 until May 18, 2006, and had previously served as Chairman of the Board and Chief Executive Officer from 1999 to 2005, President from 1993 to 1999, and a director since 1997 of RadioShack. From 1990 to 1993, Mr. Roberts was Chairman and Chief Executive Officer of Shoney's, Inc., and from 1985 to 1990 was the President and Chief Executive Officer of Arby's, Inc. Mr. Roberts is Chairman of Students in Free Enterprise, a member of the Executive Board of Directors for the National Center For Missing and Exploited Children, a trustee of Texas Christian University, and a director of Texas Health Resources, TXU Corporation and J.C. Penney, Inc. "Len brings a wealth of experience and leadership within the retail industry and we are extremely pleased to welcome him to our board," stated Mark E. Speese, Chairman of the Board and Chief Executive Officer of the Company. "His unique perspective in retail marketing will be very valuable in helping to guide Rent-A-Center as we continue to execute our strategic plan and grow our business." "I am delighted to be appointed to the Board of Directors of Rent-A-Center," said Mr. Roberts. "The Rent-A-Center management team has established the leading name in its industry. I am pleased to become part of this dynamic organization and lend my support to the continuation of exciting growth under the leadership of Mark Speese," he concluded. Mr. Roberts was appointed by the Board of Directors to replace Richard K. Armey, former House Majority Leader, who resigned from the Board of Directors on Sept. 21, 2006. Mr. Roberts will serve the remainder of Mr. Armey's term, which expires at the Company's 2008 annual meeting of stockholders. "We appreciate Dick's dedicated service as a member of our Board of Directors, serving since 2004," commented Mr. Speese. "Dick's political experience and insight have been very valuable to the Company." About Rent-A-Center Based in Plano, Texas, Rent-A-Center, Inc. (Nasdaq:RCII) -- http://www.rentacenter.com/-- operates the largest chain of consumer rent-to-own stores in the U.S. with 2,751 company operated stores located in the U.S., Canada, and Puerto Rico. The company also franchises 297 rent-to-own stores that operate under the "ColorTyme" and "Rent-A-Center" banners. * * * As reported in the Troubled Company Reporter on June 29, 2006, Standard & Poor's Ratings Services assigned its 'BB+' rating to Rent-A-Center Inc.'s US$725 million credit facility. It also assigned a recovery rating of '4' to the facility, indicating the expectation for marginal recovery of principal in the event of a payment default. The loan comprised a US$400 million revolving credit facility due in 2011, a US$200 million term loan A due in 2011, and a US$125 million term loan B due in 2012. The corporate credit rating on Rent-A-Center Inc. is 'BB+' with a negative outlook. As reported in the Troubled Company Reporter on June 23, 2006, Moody's Investors Service assigned a Ba2 rating to the bank loan of Rent-A-Center, Inc., and affirmed the Ba2 corporate family as well as the senior subordinated note issue at Ba3. The continuation of the positive outlook reflected Moody's opinion that ratings could be upgraded over the medium-term once the company establishes a lengthier track record of sales improvement and Moody's becomes more comfortable with the company's financial policy. SIMMONS BEDDING: Buying Simmons Canada from SCI for CDN$130MM ------------------------------------------------------------- Simmons Bedding Company entered into a definitive agreement pursuant to which a subsidiary of the Company will acquire all of the securities of Simmons Canada Inc. from SCI Income Trust. The Company disclosed that under the proposed transaction SCI will receive approximately CDN$130 million as consideration for the sale of Simmons Canada, and immediately following the sale of Simmons Canada, SCI will redeem all of SCI's outstanding units for CDN$16.25 per unit in cash. The proposed transaction provides SCI's unitholders with a premium of approximately 30% over the Sept. 20 closing price of CDN$12.46 per unit on the Toronto Stock Exchange. The Company sold its Canadian manufacturing rights in 1990 as part of a Canadian management led buyout and currently does not own any units of SCI or any equity interest in Simmons Canada. The Board of Directors of Simmons Canada, as administrator of SCI, established a committee of independent directors to review the terms of the proposed transaction. The Special Committee retained legal counsel and CIBC World Markets Inc. as financial advisor. The Special Committee recommended that the Board of Directors approve the transaction. The Board of Directors of Simmons Canada has determined that the proposed transaction is in the best interests of SCI and has unanimously approved the proposed transaction. They further agreed to support the transaction and recommend to unitholders of SCI that they approve the proposed transaction. SCI has agreed to not complete its reorganization into a modern trust-on-partnership structure pending approval of the proposed transaction by its unitholders. A special meeting of SCI unitholders, which represents more than 66-2/3% of the units voted, will be held on Nov. 14, 2006 to approve the transaction. The Board of Directors of Simmons Canada has set a record date of Oct. 16, 2006 for the special meeting. The Company plans to finance the acquisition from proceeds from its completed sale of Sleep Country USA, cash flows from operations, and availability under its revolving loan from its existing senior credit facility. Scotia Capital, Inc., acted as financial advisor to the Company on the transaction. About Simmons Canada Inc. Simmons Canada Inc., the operating company wholly owned by SCI Income Trust, -- http://www.simmonscanada.com/-- is a leading manufacturer of mattresses and foundations in Canada. The company manufactures five nationally-known brand names of mattresses, Beautyrest(R) (now featuring Evolution the Non-Flip Pocket Coil(R)), BackCare(R), Beautysleep(R), Dreamscapes and sang(TM) as well as manufacturing and distributing the Obus Forme(TM) line of mattresses and foundation under license. Simmons Canada also contracts the manufacture of Hide-A-Bed(R) convertible sofas and other upholstery products and high quality furniture. Simmons Canada supplies its products to a broad range of customers, including national department store chains, specialty sleep stores, furniture buying groups, independent furniture retailers as well as to the hospitality industry. Simmons Canada services its customers from factories in Vancouver, Calgary, Toronto and Montreal. About Simmons Bedding Company Based in Atlanta, Simmons Bedding Company or Simmons US, a subsidiary of Simmons Company, -- http://www.simmons.com/-- manufactures and markets a broad range of products including Beautyrest(R), BackCare(R), Beautyrest Black(TM), Natural Care(TM) Latex, BackCare Kids(R) and Deep Sleep(R). Simmons US operates 17 conventional bedding manufacturing facilities and two juvenile bedding manufacturing facilities across the United States and Puerto Rico. * * * As reported in the Troubled Company Reporter on May 26, 2006 Standard & Poor's Ratings Services assigned its 'BB-' bank loan rating and '1' recovery rating to Altanta, Georgia-based Simmons Bedding Co.'s proposed US$490 million senior secured term loan D due 2011. Standard & Poor's also raised its rating on the company's existing US$75 million revolving credit facility to 'BB-' from 'B+', and assigned a '1' recovery rating to the facility. The outlook is negative. ZALE CORP: U.S. SEC Terminates Investigation -------------------------------------------- The U.S. Securities and Exchange Commission has notified Zale Corp. that its investigation of the company has been terminated with no enforcement action being recommended. "Although we are clearly focused on the business at hand, we are pleased to put this matter behind us," commented Betsy Burton, President and Chief Executive Officer. "I would like to thank our shareholders, customers and employees for continuing to demonstrate their confidence in our organization throughout this process. We remain deeply committed to adhering to the highest standards of corporate governance." As reported in the Troubled Company Reporter on April 12, 2006, the SEC initiated a non-public investigation relating to various accounting and other matters related to the Company, including accounting for extended service agreements, leases, and accrued payroll. Subpoenas issued in connection with the SEC investigation asked for materials relating to these accounting matters as well as to executive compensation and severance, earnings guidance, stock trading, and the timing of certain vendor payments. Zale asserted that its accounting complied with generally accepted accounting principles. This report concludes the TCR's coverage of Zale Corp, unless and until circumstances change that warrant reporting in the TCR. Headquartered in Irving, Texas, Zale Corporation (NYSE: ZLC) -- http://www.zalecorp.com/-- is North America's largest specialty retailer of fine jewelry operating approximately 2,345 retail locations throughout the United States, Canada and Puerto Rico. Zale Corporation's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Bailey Banks & Biddle, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Through its ZLC Direct organization, Zale also operates online at http://www.zales.com/ and http://www.baileybanksandbiddle.com/ ================================= T R I N I D A D & T O B A G O ================================= BRITISH WEST: Gov't to Spend Over US500MM to Start New Airline -------------------------------------------------------------- "My understanding is that it will cost the government of Trinidad and Tobago a little over US$300 million to shut the airline (British West Indies Airlines aka BWIA) down and another US$250 million to start the new entity (Caribbean Airlines)," Radio Jamaica reports, citing Curtis John -- the leader of the Aviation, Communication and Allied Workers Union. As reported in the Troubled Company Reporter-Latin America on Sept. 26, 2006, the trade unions representing the 1,800 workers of BWIA would sign the Voluntary Separation from Employment Packages with the airline's management. The employees have received a very favorable Voluntary Separation from Employment Package proposal from the government, getting a 50% increase in their basic salaries for the period 2001-2006. They were initially offered a 30% raise. Radio Jamaica relates that the union said that it is satisfied with the separation payment packages. Under the deal, the workers could re-apply for jobs at Caribbean Airlines. The new entity will start with a clean state, Mr. John told Radio Jamaica. "BWIA was losing about US$1 million per week. The government is willing to put that into the new entity and start the new entity with a clean slate so that all the foreign contracts that BWIA had will now be history," Radio Jamaica states, citing Mr. John. 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. ROYAL CARIBBEAN: Redeeming Zero Coupon Convertible Notes -------------------------------------------------------- Royal Caribbean Cruises Ltd. has called for the redemption of all of its outstanding Zero Coupon Convertible Notes due May 18, 2021. The redemption date is Oct. 10, 2006. The redemption price is US$503.85 per Zero. Notices of redemption are being mailed to holders of the Zeros in accordance with the terms of the indenture. Royal Caribbean Cruises Ltd. is a global cruise vacation company that operates Royal Caribbean International and Celebrity Cruises, with a combined total of 29 ships in service and five under construction. The company also offers unique land-tour vacations in Alaska, Canada and Europe through its cruise-tour division. * * * Moody's Investors Service has assigned on June 7, 2006, a Ba1 rating on Royal Caribbean's US$700 million senior unsecured notes issuance and affirmed all existing long-term ratings. ============= U R U G U A Y ============= PETROLEO BRASILEIRO: Launches First Service Station in Uruguay -------------------------------------------------------------- Petroleo Braileiro S.A. aka Petrobras inaugurated on Sept. 26, 2006, in Montevideo, the first of its 89 service stations in Uruguay, marking the company's entry in the fuel and lubricant distribution sector in the country. By early 2007, the company will invest approximately US$5 million in changing the service stations' image. Petrobras has been in Uruguay since 1996, when it started marketing the Lubrax lubricant line. In December 2004, it also started distributing natural gas in the interior of the country, after acquiring 55% of the shares for Conecta S.A. Later, in 2006, it acquired 66% of the capital of Gaseba Uruguay, the natural gas distribution utility in Montevideo. The company was then renamed to Montevideo Gas. In mid-2006, with the acquisition of 100% of Shell's assets in Uruguay, Petrobras went on to control, through Petrobras Uruguay Distribuicion S.A., a network of 89 stations with an annual sales volume of 227,000 m3 (227,000,000 liters). The company also has facilities to market aviation fuel at the Carrasco international Airport and to sell fuel and lubricants at the Montevideo harbor. 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. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Launches Cigma Gas Complex Construction --------------------------------------------------------------- Petroleos de Venezuela, the state-owned oil company of Venezuela, has started constructing the Cigma natural gas- processing complex project in Sucre, Business News Americas reports. Petroleos de Venezuela said in a statement that the Cigma complex will include: -- natural gas liquefaction, -- industrialization, and -- petrochemicals plants. According to the statement, the Cigma complex will process crude from the Orinoco oil belt, PVDSA said in a statement. BNamericas relates that Cigma will take up 6,300 hectares of land and 11,000 hectares offshore. It will be a storage of natural gas and a processing center to supply the Gasoducto del Sur pipeline into Brazil, Argentina, Uruguay and Paraguay. It will also supply the Gasoducto Transoceanico pipeline into Central America and the Caribbean. The report says that the Cigma complex will require an investment of about US$13 billion. Of this amount, US$2.3 billion will be used in social projects in Sucre. Works on the complex will include: -- marine platforms, -- a 150-kilometer pipeline to transport gas offshore, and -- a liquids extraction plant. Petroleos de Venezuela expects that the plant will be ready by 2010. Construction of the storage and shipment terminal will also be completed by 2008, BNamericas states. Petroleos de Venezuela SA is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * 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. PETROLEOS DE VENEZUELA: Supplying Half of Carribean's Oil Needs --------------------------------------------------------------- State-oil firm Petroleos de Venezuela SA is supplying 201,000 barrels per day of oil to the Caribbean region -- approximately half of the 417,000 bpd of oil that the countries consume, El Universal reports. Petroleos de Venezuela's oil supplies to Caribbean countries are offered on favorable terms under the PetroCaribe initiative. According to a survey conducted by former Petroleos de Venezuela managers, PetroCaribe member countries such as Jamaica, Dominican Republic, Saint Vincent and the Grenadines, Haiti and Dominica are given discounts of US$14.71 per barrel, while discounts to Cuba amount to US$7.40 per barrel, El Universal relates. Petroleos de Venezuela SA is Venezuela's state oil company in charge of the development of the petroleum, petrochemical and coal industry, as well as planning, coordinating, supervising and controlling the operational activities of its divisions, both in Venezuela and abroad. * * * 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: Introduces New Industrial Complex ---------------------------------------------- The placing of the foundational stone of the Industrial Complex Gran Mariscal Ayacucho aka CIGMA, located in the Valdez Municipality of Sucre state, by the president of the Bolivarian Republic of Venezuela, Hugo Chavez, represents a historical step within the Venezuelan energy industry, since this development will be the entry door of all gas coming from North Paria and the Deltana Platform. "CIGMA will be the most important Gas Industrial Complex in Latin America" the head of the government explained, and also emphasized that "the Project will take place along with the integral development of the Eastern region, and will be the commanding post for promotion of areas such as Guiria and Macuro, which will become new prosperous, driving cities without rings of slums." The Industrial Complex Gran Mariscal de Ayacucho will house liquefaction, industrialization and petrochemical plants, and will facilitate the processing of crudes from the Orinoco Oil Belt. Total investment will be 13,000 million Dollars, out of which 2,300 million Dollars will be intended for social projects in the Sucre state, president Chavez highlighted. The minister of Energy and Petroleum and president of PDVSA, Rafael Ramirez, underlined that the benefits for the area will be extraordinary for "we will not repeat the same model that swooped down on Venezuela during the 20th century. We will work with a revolutionary and Bolivarian vision to develop our hydrocarbons, in perfect balance with the social needs for progress to achieve the diversification of the region and our production model. It is our commitment. The new PDVSA will be an instrument at the service of the highest interests of the Venezuelan State and our people." Delta Caribe CIGMA is framed in the Delta Caribe Project for gas development, which was defined by Minister Ramirez as "the realization of the Oil Sowing Plan that the Bolivarian Government has proposed as an integral alternative for exploitation of our hydrocarbons." Free gas development plans will help satisfying the increasing demand of domestic and international markets. The main objective of CIGMA is to create the viability of projects along this regional entity, guaranteeing social value benefits to regions where their activities are developed, and implementing strategies that allow increasing contributions to the national treasury. CIGMA, which is planned as the new industrial development area in Venezuela, will cover 6,300 hectares in solid ground and approximately 11,000 hectares offshore. This important and significant complex will function as a gathering and conditioning center for the production of natural gas from the Northeastern region of the country, from where the resource will be transported towards the 12,515 kilometers of the Great Southern Gas Pipeline running to Brazil, Argentina, Uruguay and Paraguay, and also towards the Transoceanic Gas Pipeline for the brother countries in Central America and the Caribbean. Platform for development The complex envisages engineering works such as sea production platforms, which will be built in Venezuelan territory, a gas pipe that will transports gas 150 kilometers offshore and a liquid extraction plant, with a total investment of 4,500 million Dollars. Regarding social development, the CIGMA Project anticipates a contribution of 2,300 million Dollars in Sucre state. Currently, social projects being implemented in influential areas of Sucre state, specifically in the cities of Carupano, Cumana and Guiria, are intended to strengthen and consolidate production sectors such as fishing, cattle breeding and agriculture. Social programs being developed by the Bolivarian Government in the area are also receiving support. * * * Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * VENEZUELA: Trinidad Business Sector Mulls Gas Importation ----------------------------------------------------------- The South Trinidad Chamber of Industry and Commerce is pushing for the importation of gas from Venezuela in light of growing concerns regarding Trinidad and Tobago's natural gas reserves, the Trinidad & Tobago Express reports. "The reality for us in Trinidad and Tobago is that we have limited oil and gas reserves by global standards," Rampersad Motilal, president of the Chamber, was quoted by the Express as saying. The business head wants the nation to "make early progress on the issue of the import of gas from Venezuela." In addition, the business leader noted that the time has arrived for the country to develop a national priority policy to strengthen the capability of long-term gas supply by accessing other sources of gas, the Express relates. "There is an estimated 38 trillion cubic feet of gas in the Plataforma Deltana region, Venezuela, just off Trinidad's southeast coast and very close to existing infrastructure in Trinidad," Mr. Motilal said, "while some progress is being made towards the management of reservoirs, we need to initiate discussions to bring about a strong and consistent policy with Venezuela." * * * Venezuela's foreign currency long-term debt is rated B1 by Moody's, B+ by Standard & Poor's, and BB- by Fitch. * PricewaterhouseCoopers Launches Valuation Services in the U.S. ---------------------------------------------------------------- PricewaterhouseCoopers disclosed the launch of a U.S. valuation practice that offers a full range of valuation services. Valuation assessments provide critical input for a variety of corporate initiatives, including: -- evaluating and structuring transactions; -- managing accounting, financial reporting and tax matters; -- resolving value-related issues surrounding disputes; and -- assessing strategic and tactical options that support business decision-making. By finding issues early and embedding applied valuation skills with financial reporting, tax, strategic and industry expertise, PwC believes it has created a service for non-audit clients that is truly distinctive in the market. PwC has organized its valuation services into two teams. The Transaction Services Accounting and Valuation Advisory practice offers services that help companies meet financial reporting and tax valuation requirements, especially those related to M&A transactions. John Glynn, a New York partner, former SEC professional accounting fellow, and PwC's representative to the Appraisal Issues Task Force will lead this practice. Mark Haller, a Chicago-based partner and leader of PwC's Economics and Strategy practice will head the firm's Business Analytics team that offers applied valuation analysis and advisory services that help companies make business decisions. "As financial reporting moves to a fair value model, companies must deal with fair value issues every day, and nowhere are these issues more complex than when companies do deals", Glynn noted. "By getting involved early and considering a company's clearly defined business needs and goals, we help clients get valuation right the first time, and think through the financial reporting and tax consequences of transactions and other initiatives. We can offer this because our practice brings together professionals with technical accounting, tax and valuation expertise." In describing his part of the practice, Haller notes that his team specializes in analyses that help companies make better business decisions. "We apply analytical approaches often dependent on value assessment and relative value modeling to help our clients to make important choices on strategic and tactical matters. Our work adds quantitative support that refines and sometimes even can alter a client's assumptions on issues such as new market entry and competitive threats, dispute resolution, changing and emerging business models, internal investment choices, product pricing, product rationalization and extension, and customer value assessment. Our rigorous analysis produces the detailed information companies need to make important decisions with greater speed." With the U.S. launch, PwC can deliver valuation services worldwide through a team of over 1,550 dedicated valuation professionals. The Transaction Services group of PricewaterhouseCoopers -- http://www.pwc.com/ustransactionservices-- offers a deal process that helps clients bid smarter, close faster, and realize profits sooner on mergers, acquisitions, sales and financing transactions. Dedicated deal teams operate from 16 U.S. cities and 126 locations in North America, Latin America, Europe and Asia. Business Analytics is part of PricewaterhouseCoopers Advisory -- http://www.pwc.com/advisory-- which brings together experienced, credentialed valuation specialists along with a broader group of quantitatively trained, strategically savvy, and industry focused professionals who help clients execute strategy and make decisions on important issues, supported by hard facts and insightful analysis. PricewaterhouseCoopers -- http://www.pwc.com/-- provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries work collaboratively across our network using Connected Thinking to develop fresh perspectives and practical advice. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Shareholders Total Equity Assets Company Ticker ($MM) ($MM) ------- ------ ------------ ------- Alpargatas SAIC ALPA (262.27) 646.43 Kuala ARTE3 (33.57) 11.86 Kuala-Pref ARTE4 (33.57) 11.86 Blount International BLT (123) 465 Bombril BOBR3 (554.69) 488.38 Bombril-Pref BOBR4 (554.69) 488.38 CableVision System CVC (2,468) 12,832 Centennial Comm CYCL (1,062) 1,436 CIC CIC (1,883.69) 22,312.12 Choice Hotels CHH (118) 280 Telefonica Holding CITI (1,481.31) 307.89 Telefonica Holding CITI5 (1,481.31) 307.89 Domino's Pizza DPZ (609) 395 Foster Wheeler FWLT (38) 2,224 IMPSAT Fiber Networks IMPTQ (17.16) 535.01 Paranapanema SA PMAM3 (214.08) 2,847.86 Paranapanema-PREF PMAM4 (214.08) 2,847.86 TEKA TEKA3 (180.22) 557.47 TEKA-PREF TEKA4 (180.22) 557.47 *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter - Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Marjorie C. Sabijon, Sheryl Joy P. Olano, Stella Mae Hechanova, and Christian Toledo, Editors. Copyright 2006. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629- 3300. * * * End of Transmission * * *