/raid1/www/Hosts/bankrupt/TCRLA_Public/070111.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
Thursday, January 11, 2007, Vol. 8, Issue 8
Headlines
A N T I G U A & B A R B U D A
CARIBBEAN SUN: Shutting Down All Flight Operations
A R G E N T I N A
BANCO MACRO: Moody's Puts Provisional B2 Foreign Currency Rating
BOWNE & Co.: Moody's Affirms Ba3 Corporate Family Rating
CEGAN SRL: Last Day for Claims Verification Is April 9
COEUR D'ALENE: Revising Study on Planned Processing Plant
DE GAS DEL SUR: Sets Terms for Notes Issuance & Reissuance
B E R M U D A
INTELSAT (BERMUDA): Discloses Pricing of Notes
INTELSAT BERMUDA: Moody's Rates US$600 Million Senior Loan at B2
INTELSAT LTD: Moody's Rates New US$1-Billion Senior Loan at B2
SCOTTISH RE: Files Preliminary Proxy Statement with US SEC
SEA CONTAINERS: Wants Until June 12 to File Reorganization Plan
B R A Z I L
ALCATEL-LUCENT: To Test OLF's WiMAX Pilot in the North Sea
CORUS GROUP: Adjourns Meetings Following Regulator's Ultimatum
CORUS GROUP: Confirms Issuance of Ordinary Shares & Bonds
DURA AUTOMOTIVE: Creditors Panel Taps Kramer Levin as Counsel
DURA AUTO: Gets Court's Final Nod to Pay Foreign Vendor Claims
BENQ CORP: U.S.-German Investors May Bid for Bankrupt Mobile Arm
DURA AUTOMOTIVE: Panel Taps Young Conaway as Bankr. Co-Counsel
ELETROPAULO METROPOLITANA: Starting Internet Services Tests
FIAT SPA: Eyes EUR5-Billion Operating Profit in 2010
FIAT SPA: Maserati Aims to Raise Deliveries Outside Italy
GP INVESTMENTS: Fitch Rates Foreign Currency IDR at B
PACTUAL OVERSEAS: Fitch Upgrades Foreign Currency IDR to BB+
PETROLEO BRASILEIRO: Ensuring Natural Gas Supplies at CSA Mill
TAM SA: Adds Airbus A320 Aircraft to Fleet
UBS PACTUAL: Fitch Upgrades Foreign Currency IDR to BB+ from BB
C A Y M A N I S L A N D S
3S SOLUTIONS: Deadline for Proofs of Claim Filing Is Jan. 11
BALMORAL CONSULTANTS: Proofs of Claim Filing Is Until Jan. 11
CHERRY WILLOW: Deadline for Proofs of Claim Filing Is on Jan. 11
CHEYNE US: Proofs of Claim Filing Deadline Is Set for Jan. 11
CITIGROUP ALTERNATIVE: Proofs of Claim Filing Is Until Jan. 11
DALTON VIEW: Deadline for Proofs of Claim Filing Is on Jan. 11
EUROPEAN PSYCHIC: Proofs of Claim Filing Deadline Is on Jan. 11
EUROTAX GLASS'S: Deadline for Proofs of Claim Filing Is Jan. 11
FAIRFIELD DOVER: Deadline for Proofs of Claim Filing Is Jan. 11
GRINGLI INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 11
JERMYN STREET: Deadline for Proofs of Claim Filing Is Jan. 11
KOOKABURRA FINANCE: Proofs of Claim Filing Deadline Is Jan. 11
MARUBENI LEASING: Proofs of Claim Filing Deadline Is on Jan. 11
PARMALAT SPA: Selling Parma AC for EUR4 Million
PARMALAT SPA: Agrees with Liquidators to Continue TRO to Mar. 15
PEACEFUL INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 11
SWAPCO NO. 12: Deadline for Proofs of Claim Filing Is on Jan. 11
C H I L E
AES CORP: Joins Electric Drive Transportation Association Board
C O L O M B I A
SUN MICROSYSTEMS: Launches Sun Blade & Sun(SM) Refresh Services
D O M I N I C A N R E P U B L I C
AES CORP: Trial on Dominican Republic's Lawsuit Set for March 5
BANCO INTERCONTINENTAL: Alvarez Renta Tries to Evade Sanction
BANCO INTERCONTINENTAL: Law Firms Abandon Luis Alvarez Renta
E C U A D O R
GRAHAM PACKAGING: Closing Plant in North Charleston
PETROECUADOR: Negotiating Energy Deal with Venezuela State Oil
PETROLEOS DE VENEZUELA: Negotiating Energy Pact with Ecuador
G U A T E M A L A
BRITISH AIRWAYS: Agrees to Trade Unions' Pension Scheme Proposal
BRITISH AIRWAYS: Traffic Figures Slide in December 2006
H A I T I
DIGICEL LTD: Achieved Over 100% Subscriber Growth in 2006
M E X I C O
ADVANCED MARKETING: Gets Interim Okay on Wells Fargo Financing
AUTOPISTA DEL MAYAB: Moody's May Up Global Currency Ratings
DIRECTV GROUP: EchoStar Comms. Not Ruling Out Possible Merger
GREENBRIER COS: Declares Quarterly Dividend of US$.08 Per Share
GRUPO TMM: Acquires Almacenadora de Deposito for US$9.0 Million
GRUPO IMSA: S&P Lowers Long-Term Corporate Credit Rating to BB+
SBARRO INC: S&P Raises Corporate Credit Rating to B-
WERNER LADDER: Court Allows ACE Insurance Program Implementation
WERNER LADDER: Can Assume 17 Warehouse Leases Effective Jan. 3
P A N A M A
DRINKS AMERICAS: Joint Venture with Beyer Starts Operations
P U E R T O R I C O
ADVANCED MEDICAL: Acquires IntraLase Corp. for US$808 Million
DAVID'S BRIDAL: S&P Assigns B Corporate Credit Rating
JOSE ORTIZ: Voluntary Chapter 11 Case Summary
PIER 1: Posts US$72.7M Net Loss in 3rd Fiscal Qtr. Ended Nov. 25
U R U G U A Y
* URUGUAY: IDB Funding Entrepreneurship Program
V E N E Z U E L A
AMERICAN COMMERCIAL: Names Jacques Vanier as Manufacturing VP
CITGO PETROLEUM: Starting Production at Ferrysburg Terminal
ELECTRICIDAD DE CARACAS: S&P Places B Rating on CreditWatch
PETROLEOS DE VENEZUELA: Eni To Decide on Amount of Damages
* VENEZUELA: Extends Media Reach Through La Epoca Acquisition
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================================
A N T I G U A & B A R B U D A
=================================
CARIBBEAN SUN: Shutting Down All Flight Operations
--------------------------------------------------
Caribbean Sun Airlines disclosed a two-phase shutdown of all its flight
operations.
Phase one consists of the termination of all Caribbean Sun flights between
San Juan and Santo Domingo. The final day that Caribbean Sun will operate
flights between San Juan and Santo Domingo is Jan. 16, 2007.
Phase two consists of the termination of all remaining Caribbean Sun flight
operations and the closure of the airline's operational hub at Luis Munoz
Marin International Airport in San Juan, Puerto Rico. Caribbean Sun's final
day of flight operations is Jan. 31, 2007.
Caribbean Sun passengers holding confirmed tickets for travel between San
Juan and Santo Domingo after Jan. 16, 2007, or tickets for travel to or from
all other Caribbean Sun gateways after Jan. 31, 2007, will be
re-accommodated on alternate service operated by Cape Air, Caribbean
Airlines or LIAT. In cases where alternate service can't be arranged,
passengers will be issued full refunds. Passengers are encouraged to call
Caribbean Sun for further details.
Skip Barnette, president and chief executive officer of Caribbean Sun and
its sister carrier Caribbean Star, commented, "Competition in San Juan has
always been very tough, but recent developments have created a no-win
situation for us. Major US carriers currently expanding service to the
region are increasingly emphasizing nonstop service. The trend toward
'over-flying' San Juan has greatly diminished the strong demand we formerly
enjoyed from connecting passengers. The local market is simply too small to
sustain a profitable operation."
Another factor in the decision to shutdown Caribbean Sun is the recent
re-certification of its sister carrier, Caribbean Star Airlines, under new
Civil Aviation Regulations passed in Antigua and Barbuda by the Eastern
Caribbean Civil Aviation Authority or ECCAA. In March 2006, the ECCAA was
upgraded to Category One status by the U.S. Federal Aviation Administration.
In October 2006 Caribbean Star was re-certified under the new regulations,
enabling the carrier to consider broader expansion opportunities, including
possible new service to US destinations.
Mr. Barnette said, "When Caribbean Star was launched in 2000 it could not
serve San Juan and other US destinations, which of course hindered growth.
Caribbean Sun was later launched as a completely separate US-based airline
to complement the Caribbean Star operation with its ability to hub out of
San Juan and attract what was then a stronger market for connecting
passengers. Now that Caribbean Star has the same advantages, we can realize
some efficiencies and better focus our efforts."
Caribbean Sun employs a staff of 215, the majority of whom (85%) are based
at the airline's operational hub in San Juan, Puerto Rico. A total of 32
Caribbean Sun staff are based at the airline's corporate headquarters in
Fort Lauderdale, Florida. Additional Caribbean Sun staff are based in
destinations served by the carrier. A total of 195 employment positions
will be eliminated as a result of the airline shutdown.
"It's a sad day for us and for Caribbean aviation in general. It's a sad
day for our passengers. But, most of all, it's a sad day for our dedicated
staff who fought hard to build a great airline. I'd like to extend my
sincerest thanks and appreciation for the sacrifices you made and the
professionalism you exhibited in building the Caribbean Sun brand over the
past few years," Mr. Barnette stated.
The Caribbean Sun fleet is comprised of four Dash-8 100 series aircraft,
each with a 37-passenger seating capacity. The carrier serves nine gateways
throughout the Caribbean with more than 161 weekly flights.
Mr. Barnette noted, Discussions are ongoing with additional interested
parties toward deciding what will happen with Caribbean Sun aircraft and
other assets."
Privately held Caribbean Star Airlines Ltd. --
http://www.flycaribbeanstar.com-- was incorporated in Antigua in January
2000. Its sister airline Caribbean Sun Airlines Inc. -- www.flycsa.com --
based in Fort Lauderdale, Florida, launched its maiden flight in January
2003. Caribbean Star and Caribbean Sun are affiliated but separate
companies. The air service provided by each carrier is operated
independently of the other, and the rules applicable to travel on each
airline may be different
=================
A R G E N T I N A
=================
BANCO MACRO: Moody's Puts Provisional B2 Foreign Currency Rating
----------------------------------------------------------------
Moody's Investors Service assigned a provisional B2 global foreign currency
rating to Banco Macro SA's senior unsecured notes, which are due 2017, for
US$150,000,000. Moody's also assigned a provisional Aa3.ar in national
scale to the same debt. The outlook on the ratings is stable.
Moody's said that the B2 foreign-currency bond rating incorporates Banco
Macro's fundamental credit quality, which is reflected by its Ba3 global
local-currency deposit rating and which includes all relevant country risks.
At this rating level, Macro's foreign currency bond rating is at the country
ceiling for Argentina.
Moody's has already assigned Macro an E+ bank financial strength rating,
with a positive outlook, which in turn reflects its robust national
franchise. This strategy enhances Macro's overall potential, particularly
for diversifying its revenues, for enlarging its client base, and for
increasing management's access to cheaper and more stable sources of
funding. However, the bank's leadership may find it challenging to
successfully integrate the bank's different franchises.
Banco Macro is headquartered in Buenos Aires, Argentina, and it had ARL8.1
billion in total assets and ARL$ 4.8 billion in deposits as of September
2006.
These ratings were assigned to Banco Macro S.A.:
-- Provisional Global foreign currency debt rating:
(P)B2, stable outlook
-- Provisional National Scale Rating for foreign currency
debt: (P)Aa3.ar, stable outlook
BOWNE & Co.: Moody's Affirms Ba3 Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service affirmed the Ba3 corporate family rating and all
other ratings of Bowne & Co., Inc. The outlook remains positive, indicating
the potential for an upgrade within the next 12 to 18 months,
notwithstanding continued share repurchase, the cash acquisition of Vestcom,
and capital expenditures related to headquarters relocation.
Bowne & Co.'s Ba3 corporate family rating continues to reflect concerns over
its inability to generate free cash flow, exposure to the capital markets
cycle, some vulnerability to the reduction in demand for printed products,
and some execution and acquisition risk. Strong liquidity, moderate
leverage, and a considerable stream of recurring revenue support the
ratings.
Moody's would consider an upgrade with evidence of EBITDA margin improvement
from the current approximately 11% level and clear progress toward a free
cash flow-to-debt ratio in excess of 5%.
Bowne & Co., Inc.
-- Affirmed Ba3 corporate family rating;
-- Affirmed Ba3 probability of default rating; and
-- Affirmed B2 Convertible Subordinated Notes Rating, LGD 5,
87%.
Based in New York City, Bowne & Co., Inc. (NYSE: BNE)
-- http://www.bowne.com/-- is a printing company, which
specializes in financial documents such as prospectuses, annual
and interim reports, and other paperwork required by the SEC.
Bowne also handles electronic filings via the SEC's EDGAR system
and provides electronic distribution and high-volume mailing
services. The financial printing business accounts for the bulk
of the company's sales. Bowne also offers marketing and
business communications services and litigation support
software. The company has 3,500 employees in 78 offices around
the globe. The company's Latin American offices are located in
Argentina, Brazil and Mexico.
CEGAN SRL: Last Day for Claims Verification Is April 9
------------------------------------------------------
Victor Alberto Molino, the court-appointed trustee for CeGan SRL's
reorganization proceeding, will verify creditors' proofs of claim until
April 9, 2007.
Mr. Molino will present the validated claims in court as individual reports
on May 18, 2007. A court in Buenos Aires will then determine if the
verified claims are admissible, taking into account the trustee's opinion
and the objections and challenges raised by CeGan SRL 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 CeGan SRL's accounting and
banking records will follow on June 29, 2007.
On Jan. 8, 2008, Cegan SRL's creditors will vote on a settlement plan that
the company will lay on the table.
The trustee can be reached at:
Victor Alberto Molino
Pje. Newton 1879, San Francisco
Cordoba, Argentina
COEUR D'ALENE: Revising Study on Planned Processing Plant
---------------------------------------------------------
Leon Hardy, vice president of Coeur d'Alene Mines' Argentine operations,
told Business News Americas that the firm is working to revise a study on a
planned processing plant for the Martha mine in Santa Cruz, Argentina.
According to BNamericas, the Martha plant aims to lower costs and increase
mine life. Ore from Martha is currently shipped across the Andes to Coeur
D'Alene's Cerro Bayo mine in Chile's Region XI for processing.
The report says that the Martha plant was expected to produce 2.4 million
ounce of silver last year, though annual figures have not yet been released.
Mr. Hardy told BNamericas that Coeur D'Alene's board was set to present in
September 2006 a proposal to construct the up to 150-ton-per-day plant,
which is expected to cost up to US$8 million.
"Once we have a definite decision we will make a public announcement,"
BNamericas says, citing Mr. Hardy.
Coeur d'Alene Mines Corp. -- http://www.coeur.com/-- is
the world's largest primary silver producer, as well as a
significant, low-cost producer of gold. The Company has mining
interests in Nevada, Idaho, Alaska, Argentina, Chile, Bolivia
and Australia.
* * *
Coeur d'Alene Mines Corp.'s US$180 Million notes due
Jan. 15, 2024, carry Standard & Poors' B- rating.
DE GAS DEL SUR: Sets Terms for Notes Issuance & Reissuance
----------------------------------------------------------
Transportadora de Gas del Sur SA has set during the Jan. 4 Board of
Director's meeting the terms and conditions of a new program for the
issuance and reissuance of notes to be created in a maximum aggregate amount
of US$650,000,000, or its equivalent in other currencies, according to the
Comision Nacional de Valores regulations and with the delegation as
authorized by the firm's Special Meeting held on Dec. 21, 2006.
Headquartered in Buenos Aires, Argentina, Transportadora de Gas
del Sur SA -- http://www.tgs.com.ar-- is a transporter of
natural gas; having a 7,419-kilometer (4,610 miles) pipeline
system with a firm contracted capacity of 62.5 million cubic
meters per day (MMm3/d) with an installed power of 538.220
horsepower. Substantially all of Transportadora de Gas'
capacity is subscribed for under firm long-term transportation
contracts. Transportadora de Gas is also a processor of natural
gas and marketer of natural gas liquids in Argentina. The
company operates the General Cerri gas processing complex and
the associated Galvan loading and storage facility in Bahia
Blanca in the Buenos Aires Province (the Cerri Complex) where
natural gas liquids are separated from gas transported through
the Company's pipeline system and stored for delivery.
Transportadora de Gas is engaged in midstream activities and the
provision of telecommunication services in Argentina. The
company operates the largest pipeline transmission system in
Argentina, which accounts for roughly 60% of the country's total
natural gas consumption.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 14, 2006, Fitch does not expect the proposed early
redemption of US$130 million of debt to affect its existing
ratings for Transportadora de Gas del Sur SA aka TGS. Fitch
currently rates TGS as:
-- Local Currency Issuer Default Rating: 'B';
-- Foreign Currency Issuer Default Rating: 'B';
-- Senior Unsecured Debt 'B/RR4';
-- National Scale Rating 'A-(arg)'.
Fitch said all ratings have stable outlook.
=============
B E R M U D A
=============
INTELSAT (BERMUDA): Discloses Pricing of Notes
----------------------------------------------
Intelsat (Bermuda), Ltd., priced US$600 million aggregate principal amount
of floating rate senior notes due 2015. The notes will bear interest at
LIBOR plus 350 basis points. The net proceeds from the notes offering will
be used, together with cash on hand, to repay Intelsat (Bermuda)'s
outstanding US$600 million senior unsecured bridge loan. The notes offering
is expected to close on Jan. 12, 2007.
The notes will be offered to qualified institutional buyers under Rule 144A
and to persons outside the United States under Regulation S.
The notes will not be registered under the Securities Act of 1933, as
amended, and, unless so registered, may not be offered or sold in the US
except pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act and applicable state
securities laws.
Intelsat (Bermuda), Ltd., is a wholly owned subsidiary of Intelsat, Ltd. --
http://www.intelsat.com/. It offers telephony, corporate network, video and
Internet solutions around the globe via capacity on 25 geosynchronous
satellites in prime orbital locations. Customers in approximately 200
countries rely on Intelsat's global satellite, teleport and fiber network
for high-quality connections, global reach and reliability.
As previously reported on Oct. 17, 2006, Fitch Ratings assigned a 'CCC+'
rating and 'RR6' recovery rating to the US$600 million senior unsecured
credit facility of Intelsat (Bermuda), Ltd., which is a subsidiary of
Intelsat, Ltd. The proceeds from the facility were used to fund Intelsat
(Bermuda)'s acquisition of PanAmSat Holding Corp. on July 3, 2006. Fitch
said the rating outlook is stable.
INTELSAT BERMUDA: Moody's Rates US$600 Million Senior Loan at B2
----------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to Intelsat Ltd.'s
proposed US$1 billion of Senior Unsecured Term Loan and a Caa1 rating to
Intelsat Bermuda's proposed US$600 million Senior Unsecured Notes.
The proceeds from the new notes and the term loan will be used to fund the
repurchase of Intelsat Subsidiary Holding Company, Ltd.'s US$1 billion of
floating rate notes due 2012 and Intelsat Bermuda's US$600 million senior
unsecured term loan.
Moody's has affirmed Intelsat's existing ratings, as the ratings agency
believes that the company's total debt will not change as a result of the
proposed transaction, which will have minimal cash flow impact on the
company. Intelsat's B2 corporate family rating broadly reflects the
company's high leverage and the execution risk of combining Intelsat and
PanAmSat.
Moody's analyst, Gerald Granovsky, also notes that given the ownership
composition of the company, future financial policies may continue to be
shareholder friendly. The ratings benefit somewhat from the combined
company's leading position in the global fixed satellite service business,
good free cash flow, and the substantial US$8 billion backlog of contracted
future revenues.
Although Intelsat Bermuda's new senior unsecured term loan will replace
SubHoldco's floating rate notes, the obligations of SubHoldco will remain
unchanged as Bermuda's new term loan will be guaranteed by SubHoldco.
In addition, Moody's has withdrawn the prospective B2 rating on Intelsat
Corporation's senior unsecured term loan, which was assigned on Sept. 7,
2006. The term loan financing was not required as the holders of Intelsat
Corporation's senior notes due 2014 did not tender sufficient amount of
notes to complete the tender.
The outlook remains stable.
Moody's has also upgraded Intelsat's short term liquidity ratings to SGL-1
from SGL-2, reflecting the company's very good liquidity comprising its
large cash balances, stable cash flow from operations and availability under
the two revolving credit facilities.
Moody's has taken these ratings actions:
* Intelsat Ltd:
-- Corporate family rating Affirmed at B2
-- SGL Rating Upgraded to SGL-1
-- 5.25% Global notes, due 2008 Affirmed Caa1, LGD6, 93%
-- 7.625% Sr. Notes, due 2012 Affirmed Caa1, LGD6, 93%
-- 6.5% Global Notes, due 2013 Affirmed Caa1, LGD6, 93%
* Intelsat Bermuda Ltd.
-- New US$600 million Floating Rate Sr. Notes Due 2015
Assigned Caa1, LGD5, 82%
-- New US$1 billion Unsecured Term Loan Due 2014 Assigned
B2, LGD3, 45%
-- 9.25% Guaranteed Sr. Notes Affirmed B2, LGD3, 45%
-- Floating Rate Sr. Notes Due 2013 Affirmed Caa1, LGD5,
82%
-- 11.25% Sr. Notes Affirmed Caa1, LGD5, 82%
* Intelsat Intermediate Holding Company Ltd.
-- Sr. Discount Notes, due 2015 Affirmed B3, LGD5, 72%
* Intelsat Subsidiary Holding Company Ltd.
-- Guaranteed Sr. Secured Revolver, due 2012 Affirmed Ba2,
LGD1, 8%
-- Guaranteed Sr. Secured T/L B, due 2013 Affirmed Ba2,
LGD1, 8%
-- Sr. Floating Rate Notes, due 2012 Affirmed B2, LGD3,
45% and to be withdrawn upon redemption
-- 8.25% Sr. Notes, due 2013 Affirmed B2, LGD3, 45%
-- 8.625% Sr. Notes, due 2015 Affirmed B2, LGD3, 45%
* Intelsat Corporation
-- Guaranteed Sr. Secured Revolver, due 2012 Affirmed Ba2,
LGD1, 8%
-- Guaranteed Sr. Secured Loan A, due 2012 Affirmed Ba2,
LGD1, 8%
-- Guaranteed Sr. Secured Loan B, due 2014 Affirmed Ba2,
LGD1, 8%
-- 6.375% senior secured notes, due 2008 Affirmed Ba2,
LGD1, 8%
-- 6.875% senior secured debentures, due 2028 Affirmed
Ba2, LGD1, 8%
-- 9% senior notes, due 2014 Affirmed B2, LGD3, 45%
-- 9% senior notes, due 2016 Affirmed B2, LGD3, 45%
-- US$667 million Senior Unsecured Term Loan Due 2014
Rating Withdrawn
The outlook is stable.
Intelsat, headquartered in Bermuda, is a fixed satellite service operator
and is owned by Apollo Management, Apax Partners, Madison Dearborn, and
Permira.
INTELSAT LTD: Moody's Rates New US$1-Billion Senior Loan at B2
--------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to Intelsat Ltd.'s
proposed US$1 billion of Senior Unsecured Term Loan and a Caa1 rating to
Intelsat Bermuda's proposed US$600 million Senior Unsecured Notes.
The proceeds from the new notes and the term loan will be used to fund the
repurchase of Intelsat Subsidiary Holding Company, Ltd.'s US$1 billion of
floating rate notes due 2012 and Intelsat Bermuda's US$600 million senior
unsecured term loan.
Moody's has affirmed Intelsat's existing ratings, as the ratings agency
believes that the company's total debt will not change as a result of the
proposed transaction, which will have minimal cash flow impact on the
company. Intelsat's B2 corporate family rating broadly reflects the
company's high leverage and the execution risk of combining Intelsat and
PanAmSat.
Moody's analyst, Gerald Granovsky, also notes that given the ownership
composition of the company, future financial policies may continue to be
shareholder friendly. The ratings benefit somewhat from the combined
company's leading position in the global fixed satellite service business,
good free cash flow, and the substantial US$8 billion backlog of contracted
future revenues.
Although Intelsat Bermuda's new senior unsecured term loan will replace
SubHoldco's floating rate notes, the obligations of SubHoldco will remain
unchanged as Bermuda's new term loan will be guaranteed by SubHoldco.
In addition, Moody's has withdrawn the prospective B2 rating on Intelsat
Corporation's senior unsecured term loan, which was assigned on Sept. 7,
2006. The term loan financing was not required as the holders of Intelsat
Corporation's senior notes due 2014 did not tender sufficient amount of
notes to complete the tender.
The outlook remains stable.
Moody's has also upgraded Intelsat's short term liquidity ratings to SGL-1
from SGL-2, reflecting the company's very good liquidity comprising its
large cash balances, stable cash flow from operations and availability under
the two revolving credit facilities.
Moody's has taken these ratings actions:
* Intelsat Ltd:
-- Corporate family rating Affirmed at B2
-- SGL Rating Upgraded to SGL-1
-- 5.25% Global notes, due 2008 Affirmed Caa1, LGD6, 93%
-- 7.625% Sr. Notes, due 2012 Affirmed Caa1, LGD6, 93%
-- 6.5% Global Notes, due 2013 Affirmed Caa1, LGD6, 93%
* Intelsat Bermuda Ltd.
-- New US$600 million Floating Rate Sr. Notes Due 2015
Assigned Caa1, LGD5, 82%
-- New US$1 billion Unsecured Term Loan Due 2014 Assigned
B2, LGD3, 45%
-- 9.25% Guaranteed Sr. Notes Affirmed B2, LGD3, 45%
-- Floating Rate Sr. Notes Due 2013 Affirmed Caa1, LGD5,
82%
-- 11.25% Sr. Notes Affirmed Caa1, LGD5, 82%
* Intelsat Intermediate Holding Company Ltd.
-- Sr. Discount Notes, due 2015 Affirmed B3, LGD5, 72%
* Intelsat Subsidiary Holding Company Ltd.
-- Guaranteed Sr. Secured Revolver, due 2012 Affirmed Ba2,
LGD1, 8%
-- Guaranteed Sr. Secured T/L B, due 2013 Affirmed Ba2,
LGD1, 8%
-- Sr. Floating Rate Notes, due 2012 Affirmed B2, LGD3,
45% and to be withdrawn upon redemption
-- 8.25% Sr. Notes, due 2013 Affirmed B2, LGD3, 45%
-- 8.625% Sr. Notes, due 2015 Affirmed B2, LGD3, 45%
* Intelsat Corporation
-- Guaranteed Sr. Secured Revolver, due 2012 Affirmed Ba2,
LGD1, 8%
-- Guaranteed Sr. Secured Loan A, due 2012 Affirmed Ba2,
LGD1, 8%
-- Guaranteed Sr. Secured Loan B, due 2014 Affirmed Ba2,
LGD1, 8%
-- 6.375% senior secured notes, due 2008 Affirmed Ba2,
LGD1, 8%
-- 6.875% senior secured debentures, due 2028 Affirmed
Ba2, LGD1, 8%
-- 9% senior notes, due 2014 Affirmed B2, LGD3, 45%
-- 9% senior notes, due 2016 Affirmed B2, LGD3, 45%
-- US$667 million Senior Unsecured Term Loan Due 2014
Rating Withdrawn
The outlook is stable.
Intelsat, headquartered in Bermuda, is a fixed satellite service operator
and is owned by Apollo Management, Apax Partners, Madison Dearborn, and
Permira.
SCOTTISH RE: Files Preliminary Proxy Statement with US SEC
----------------------------------------------------------
Scottish Re Group Ltd. has filed a preliminary proxy statement with the US
Securities and Exchange Commission or SEC in relation to the agreement
disclosed on Nov. 27, 2006, between the company, MassMutual Capital Partners
LLC and certain affiliates of Cerberus Capital Management, L.P., whereby the
investors will invest US$300 million each into the company.
Scottish Re will distribute a definitive proxy statement to all
shareholders, together with an invitation to attend the Extraordinary
General Meeting of Shareholders at which shareholders will be asked to vote,
in person or by proxy, on a set of proposals relating to the investors'
investment.
The definitive proxy statement will be mailed to shareholders no earlier
than 10 calendar days from Jan. 9, and any review of the preliminary proxy
statement by the SEC may delay the mailing. The date of the Extraordinary
General Meeting of Shareholders will be set forth in the definitive proxy
statement. The preliminary proxy statement is available on the SEC's EDGAR
website at http://www.sec.gov/and is subject to revision prior to the
mailing of the definitive proxy statement.
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life
reinsurance specialist. Scottish Re has operating businesses in Bermuda,
Grand Cayman, Guernsey, Ireland, Singapore, the United Kingdom and the
United States. Its flagship operating subsidiaries include Scottish Annuity
& Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish
Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of life
insurance assets and liabilities.
* * *
As reported in the Troubled Company Reporter-Latin America on Dec. 5, 2006,
Fitch Ratings revised the Rating Watch on Scottish Re Group Ltd.'s ratings
to Evolving from Negative, following notification that SCT has successfully
amended the bank agreement, which allows the transfer of funds from
affiliate Scottish Annuity & Life Insurance (Cayman) Ltd. aka SALIC to
Scottish Re. These ratings were placed on Rating Watch Evolving from Rating
Watch Negative:
Scottish Re Group Ltd.
-- Issuer Default Rating at 'BB';
-- 4.5% US$115 million senior convertible notes at 'BB-';
-- 5.875% US$142 million hybrid capital units at 'B+'; and
-- 7.25% US$125 million non-cumulative perpetual preferred
stock at 'B+'.
Scottish Annuity & Life Insurance Company (Cayman) Ltd.
-- IFS at 'BBB'.
Scottish Re (U.S.) Inc.
-- IFS at 'BBB'.
Scottish Re Ltd.
-- IFS at 'BBB'.
* * *
As reported in the Troubled Company Reporter-Latin America on Nov. 29, 2006,
Moody's Investors Service disclosed that it continues to review the ratings
of Scottish Re Group Ltd. with direction uncertain following the
announcement by the company that it has entered into an agreement to sell a
majority stake to MassMutual Capital Partners LLC, a member of the
MassMutual Financial Group and Cerberus Capital Management, L.P., a private
investment firm.
Moody's said the continuing review affects the debt rating of Scottish Re
(senior unsecured at Ba3), as well as the Baa3 insurance financial strength
ratings of the company's core insurance subsidiaries, Scottish Annuity &
Life Insurance Company (Cayman) Ltd. and Scottish Re (U.S.), Inc. The
uncertain direction of the review indicates the possibility that Scottish
Re's ratings could be upgraded, downgraded, or confirmed depending on future
developments at Scottish Re.
These ratings continue on review with direction uncertain:
Scottish Re Group Limited
-- senior unsecured debt of Ba3;
-- senior unsecured shelf of (P)Ba3; subordinate shelf of
(P)B1;
-- junior subordinate shelf of (P)B1;
-- preferred stock of B2; and
-- preferred stock shelf of (P)B2.
Scottish Holdings Statutory Trust II
-- preferred stock shelf of (P)B1
Scottish Holdings Statutory Trust III
-- preferred stock shelf of (P)B1
Scottish Annuity & Life Insurance Co (Cayman) Ltd.
-- insurance financial strength of Baa3
Premium Asset Trust Series 2004-4
-- senior secured debt of Baa3 (based on IFS of SALIC)
Scottish Re (U.S.), Inc.
-- insurance financial strength of Baa3
Stingray Pass-Through Certificates
-- senior secured debt of Baa3 (based on IFS rating of SALIC)
On Sept. 5, 2006 Moody's changed the direction of review for Scottish Re's
ratings to uncertain from possible downgrade.
SEA CONTAINERS: Wants Until June 12 to File Reorganization Plan
---------------------------------------------------------------
Sea Containers Ltd. and its debtor-affiliates asked the U.S. Bankruptcy
Court for the District of Delaware to extend their exclusive period to:
(a) propose and file a plan of reorganization to and
including June 12, 2007; and
(b) solicit acceptances of that plan to and including
Aug. 11, 2007.
Based on Section 1121(b) of the Bankruptcy Code provides a debtor the
exclusive right to file a plan of reorganization for an initial period of
120 days after the commencement of its Chapter 11 case. Section 1121(c)(3)
of the Bankruptcy Code provides that if a debtor files a plan of
reorganization within the 120-day initial period, a debtor has 180 days
after the commencement of the Chapter 11 case within which to solicit and
obtain acceptances of its plan, during which time competing plans may not be
filed by any party-in-interest.
Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP, in
Wilmington, Delaware, relates that since the Petition Date, the Debtors have
concentrated on stabilizing their business operations, managing a smooth
transition to operating under Chapter 11 protection, and continuing to
develop and implement their restructuring plan which will form the basis of
a confirmable plan of reorganization. Specifically, the Debtors have:
(1) filed several "first day" motions, which have been
approved by the Court on an interim or final basis;
(2) sought and obtained interim Court approval to make
statutory payments to dismissed employees, which relief
has minimized the disruption to their business operations
associated with the commencement of the Chapter 11 cases;
(3) filed a petition with the Bermuda Supreme Court to wind
up Sea Containers Ltd., and sought the appointment of
point provisional liquidators with limited powers, which
appointment provides SCL with the additional protection
statutory moratorium that ensures that no creditor or
other party with standing could take action against SCL
or its assets in Bermuda;
(4) prepared and filed retention applications for various
professionals to assist in their reorganization efforts.
Among other professionals, the Court has approved the
retention of Sidley Austin LLP, PricewaterhouseCoopers
LLP, Collinson Grant Ltd., Towers Perrin, and Carter
Ledyard & Milburn LLP;
(5) filed an application to employ ordinary course
professionals and a request to establish compensation
procedures for professionals, which request was Court-
approved on Nov. 8, 2006;
(6) devoted considerable time and resources addressing
various business issues related to GE SeaCo SRL, as well
as responding to the request of GE Capital Container SRL
and GE Capital Container Two SRL for relief from the
automatic stay to proceed with arbitration; and
(7) continue to identify and implement significant business
measures, including valuing and marketing various
businesses and other assets for sale to maximize the
value of the businesses and assets located across the
group and the potential return to the Debtors' creditor
constituencies.
Mr. Brady tells the Court that the Debtors' sufficiently large and complex
cases warrant an extension of their Exclusive Periods. As of June 30, 2006,
SCL, on a consolidated basis with all its subsidiaries, had total assets
having a net book value of US$1,673,000,000, including assets of its former
subsidiary Silja Oy Ab which has since been sold.
According to Mr. Brady, the Company's capital structure adds additional
complexity because many of the Non-Debtor Subsidiaries have historically
relied on SCL to provide financing for their various operational needs,
including funding for the payment of Non-Debtor Subsidiaries' creditors,
funding required to preserve the value of assets held by Non-Debtor
Subsidiaries, and funding to maintain the business operations of the
Non-Debtor Subsidiaries.
The Debtors' Chapter 11 Cases have the additional complexity of dealing with
foreign creditors, vendors and legal issues in a multitude of foreign
jurisdictions, including the coordination with the JPLs and the proceedings
in Bermuda, Mr. Brady adds.
Mr. Brady assures the Court that the extension will not harm the Debtors'
creditors or other parties-in-interest and will be used for a proper purpose
that is to develop a feasible plan of reorganization, which is in the best
interests of all of the Debtors' constituencies.
About Sea Containers
Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight transport
and marine container leasing. Registered in Bermuda, the company has
regional operating offices in London, Genoa, New York, Rio de Janeiro,
Sydney, and Singapore. The company is owned almost entirely by United
States shareholders and its primary listing is on the New York Stock
Exchange (SCRA and SCRB) since 1974. On Oct. 3, 2006, the company's common
shares and senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report on Form 10-K
and its quarterly reports on Form 10-Q during 2006 with the U.S. Securities
and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport operates
Britain's fastest railway, the Great North Eastern Railway, linking England
and Scotland. It also conducts ferry operations, serving Finland and
Estonia as well as a commuter service between New York and New Jersey in the
U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11 protection on
Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156). Robert S. Brady, Esq., at
Young, Conaway, Stargatt & Taylor represents the Debtors in their
restructuring efforts. When the Debtors filed for protection from their
creditors, they reported US$1.7 billion in total assets and US$1.6 billion
in total debts. (Sea Containers Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)
===========
B R A Z I L
===========
ALCATEL-LUCENT: To Test OLF's WiMAX Pilot in the North Sea
----------------------------------------------------------
Alcatel-Lucent has been selected by OLF, the Norwegian Oil Industry
Association, to carry out a Universal WiMAX test in the North Sea.
The primary objective is to confirm that WiMAX technology will improve
offshore data communication. The deployment is planned for the first
quarter of 2007 and should last nine months.
OLF is looking to enhance the communication between platforms and moving
vessels whatever the weather conditions. It has selected WiMAX notably for
its long range and high capacity.
The pilot is based on Universal WiMAX IEEE 802.16e-2005 standard equipment.
Alcatel-Lucent will provide OLF with its Alcatel-Lucent 9100 WiMAX
end-to-end radio solution, including base stations, Wireless Access
Controller and Operation and Maintenance Center. Alcatel-Lucent's
high-power base stations, equipped with Advanced Antenna System technology
for beamforming technology will be installed on one of the platforms at BP
Norway's Valhall field, while two ships will be equipped with terminal
equipment.
"We expect considerable improvements in data communication between platforms
and ships, compared to traditional technologies," Oyvind Roth, Senior
Advicer to OLF, said. "WiMAX will allow high speed and high quality data
transfers. It will enable the usage of VoIP along the Norwegian coast and
in the offshore sector. We trust Alcatel-Lucent, the leader in this
technology, to make this pilot successful."
"This WiMAX pilot in the North Sea is the very first in the oil & gas
industry. We are proud to support OLF in this exciting project as we
strongly believe in the huge potential of WiMAX," said Lars Boilesen, Head
of Alcatel-Lucent's activities in the Nordic and Baltic regions.
Alcatel-Lucent's Universal WiMAX solution integrates the most advanced radio
technology available on the market today. The Alcatel-Lucent 9116 WiMAX
base station is compact and easy-to-install, enabling easy site acquisition,
fast rollout and flexible configuration. Its embedded AAS technology
enables higher throughputs, longer reach and sharply lowered capital
expenditures.
Alcatel-Lucent has begun shipping Universal WiMAX IEEE 802.16e-2005 standard
equipment and is supporting a number of WiMAX IEEE 802.16e-2005 trials
worldwide.
About OLF
OLF, The Norwegian Oil Industry Association, -- http://www.olf.no/-- is a
professional body and employer's association for oil and supplier companies
engaged in the field of exploration and production of oil and gas on the
Norwegian Continental Shelf. OLF is a member of the Confederation of
Norwegian Business and Industry (NHO).OLF shall contribute to making the
Norwegian Shelf an attractive investment and activity area for oil companies
and supplier companies.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent
-- http://www.alcatel-lucent.com/-- provides solutions that enable service
providers, enterprises and governments worldwide, to deliver voice, data and
video communication services to end users. With 79,000 employees and
operations in more than 130 countries, including Brazil, Alcatel-Lucent is a
local partner with global reach. Through its operations in fixed, mobile
and converged broadband networking, Internet protocol (IP) technologies,
applications, and services, Alcatel-Lucent offers the end-to-end solutions
that enable communications services for people at home, at work and on the
move.
On Nov. 30, 2006, Alcatel and Lucent Technologies Inc. completed their
merger transaction, and began operations as a communication solutions
provider under the name Alcatel-Lucent on Dec. 1, 2006.
* * *
As reported on Dec. 14, 2006, following the completion of Alcatel S.A.'s
merger with Lucent Technologies Inc., at which time Alcatel was renamed
Alcatel-Lucent, Fitch Ratings downgraded and removed Alcatel from Rating
Watch Negative:
-- Issuer Default Rating to BB from BBB-; and
-- Senior unsecured debt to BB from BBB-.
Alcatel's F3 short-term rating has also been withdrawn.
The Rating Outlook for Alcatel-Lucent is Stable.
Fitch has also withdrawn the following Lucent ratings due to the
lack of clarity regarding Alcatel's support and, therefore,
expected recovery of these securities in a distressed scenario:
-- Issuer Default Rating BB-;
-- Senior unsecured debt BB-;
-- Convertible subordinated debt B; and
-- Convertible trust preferred securities B.
Moody's Investors Service downgraded to Ba2 from Ba1 the
Corporate Family Rating of Alcatel S.A., which has completed its
merger with Lucent Technologies Inc. and was renamed to Alcatel-
Lucent. The ratings for senior debt of Alcatel were equally
lowered to Ba2 from Ba1 and its Not-Prime rating for short-term
debt was affirmed.
At the same time, Moody's raised the ratings for senior debt of
Lucent to Ba3 from B1 reflecting both the standalone credit
profile of Lucent and, given the strategic importance of Lucent
to round-off the group's product range and regional presence,
expected financial support from Alcatel-Lucent, although this is
not formally committed at this time. The ratings for the other
legacy debt of Lucent were raised to B2 from B3 for subordinated
debt and trust preferreds, and to P(B3) from P(Caa1) for
preferred stock issuable under its shelf registration.
Moody's has withdrawn Lucent's Corporate Family Rating of B1,
assuming that management of the two entities will be fully
integrated over the next several months and all of Lucent's non-
US activities merged with their Alcatel counterparts. This
should result in a rapid convergence of the credit risks of the
affected companies. The outlook for all these ratings is
stable. This rating action concludes the rating reviews
initiated on April 3, 2006.
Standard & Poor's, on Dec. 6, 2006, said that following news
that the merger between French telecoms equipment supplier
Alcatel and U.S. peer Lucent Technologies Inc. has received
final approval from the U.S. Committee on Foreign Investments,
it has lowered its long-term corporate credit and senior
unsecured debt ratings on Alcatel -- now named Alcatel-Lucent --
to 'BB-' from 'BB', in line with its preliminary indication in
its Nov. 7, 2006, research update.
The 'B' short-term corporate credit rating on Alcatel-Lucent was
affirmed. S&P said the outlook is positive.
CORUS GROUP: Adjourns Meetings Following Regulator's Ultimatum
--------------------------------------------------------------
The Directors of Corus Group Plc proposed resolutions to shareholders at
each of the reconvened Court Meeting and
Extraordinary General Meeting held on Dec. 20, 2006, to adjourn the meetings
until further notice.
Any notice of the adjourned EGM and Court Meeting would be given
as appropriate in accordance with the articles of association of
the Company and the direction of the Court, respectively.
Earlier, the Panel on Takeovers and Mergers announced that the
last date for each of Tata and CSN to announce revised offers for the
Company, should they wish to do so, is Jan. 30, 2007. The Company would
therefore expect the competitive situation to be resolved, at the latest, on
or shortly after that date.
In relation to the Court Meeting and EGM held, the Corus Directors, who have
been advised by Credit Suisse, JPMorgan Cazenove and HSBC intend, assuming
that the current circumstances are prevailing at that time to:
-- propose resolutions to Corus Shareholders to adjourn
those meetings sine die until further notice;
-- recommend that Corus Shareholders vote in favor of any
such adjournment resolutions; and
-- exercise their discretion under any instrument
appointing any of them as proxy for a Corus Shareholder at
the reconvened EGM or Court Meeting so as to vote in favor
of any such adjournment resolutions.
Corus Shareholders who wish the discretion afforded by any
existing instrument of proxy to remain in place should take no
action. Unrevoked proxies will also remain valid at any
adjournment of the reconvened Court Meeting or the EGM.
Any Corus Shareholder who no longer wishes any existing instrument
appointing a Corus Director (or any other person) as their proxy to remain
in place should:
-- attend and vote at the reconvened Court Meeting and/or EGM
in person, in which case their proxy will not be capable
of exercising their votes;
-- revoke their existing proxy appointment and/or, where
possible, appoint a different person as their proxy with
specific instructions on how to vote on any resolutions;
or
-- provide different instructions to their existing proxy.
About Tata Steel
Established in 1907, Tata Steel is Asia's first and India's
largest private sector steel company. Tata Steel is among the
lowest cost producers of steel in the world and one of the few
select steel companies in the world that is EVA+ (Economic Value
Added).
About Companhia Siderurgica Nacional
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets,
tin mill products and tinplate. The company also runs its own
iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects. The group also operates in Portugal and the U.S.
About Corus Group
Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988. It then changed its name to Corus
Group after acquiring most of Dutch rival Koninklijke Hoogovens. Corus
makes coated and uncoated strip products, sections and plates, wire rod,
engineering steels, and semi-finished carbon steel products. It also
manufactures primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product manufacturing
industries.
* * *
As reported in the Troubled Company Reporter on Oct. 25, 2006,
Moody's Investors Service placed Corus Group plc's Ba2 Corporate
Family and other ratings under review.
CORUS GROUP: Confirms Issuance of Ordinary Shares & Bonds
---------------------------------------------------------
In accordance with Rule 2.10 of the City Code on Takeovers and Mergers,
Corus Group plc confirmed that, as of Jan. 8, it had these relevant
securities in issue (including any ordinary shares represented by American
Depositary Shares but excluding any ordinary shares held in treasury):
-- 945,889,566 ordinary shares of 50p each under
ISIN code GB00B127GF29.
-- 4.625% convertible subordinated bonds due 2007
amounting to NLG345,000,000 convertible into
19,338,687 ordinary shares of Corus Group plc.
The ISIN code for these securities is NL0000183184.
Each American Depositary Share represents two ordinary shares of the
company.
About Corus Group
Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988. It then changed its
name to Corus Group after acquiring most of Dutch rival
Koninklijke Hoogovens. Corus makes coated and uncoated strip
products, sections and plates, wire rod, engineering steels, and
semi-finished carbon steel products. It also manufactures
primary aluminum products. Customers include companies in the
automotive, construction, engineering, and household-product
manufacturing industries.
Six years ago, the group suffered from the crisis in British
manufacturing, which prompted it to shake up management, close
plants, cut jobs, and sell assets to lower debt. Its debt was
thought to stand at GBP1.6 billion in 2002.
After posting a net loss of GBP458 million in 2003, it embarked
on a restructuring program, signed a new EUR1.2 billion banking
facility, and issued GBP307 million worth of shares. It
returned to operating profit in the first quarter of 2004. The
recent recovery of steel prices and the strength of the euro are
expected to help it achieve relatively strong earnings.
* * *
As reported in the Troubled Company Reporter on Oct. 25, 2006,
Moody's Investors Service placed Corus Group plc's Ba2 Corporate
Family and other ratings under review.
DURA AUTOMOTIVE: Creditors Panel Taps Kramer Levin as Counsel
-------------------------------------------------------------
The Official Committee of Unsecured Creditors in DURA Automotive Systems
Inc. and its debtor affiliates' Chapter 11 cases, seek authority from the
U.S. Bankruptcy Court for the District of Delaware to retain Kramer Levin
Naftalis & Frankel LLP as its counsel, effective as of Nov. 7, 2006.
Nicholas W. Walsh, chairperson of the Committee, explains that the Creditors
Committee selected Kramer Levin primarily because the firm's Corporate
Restructuring and Bankruptcy Department has extensive experience in the
fields of bankruptcy and creditors' rights and, in particular, has
represented official creditors committees in some of the largest and most
complex Chapter 11 reorganization cases of recent years, including Dana
Corporation, Genuity Inc., Bethlehem Steel Corp., and Adelphia Business
Solutions Inc., among others.
In addition to acting as primary spokesman for the Committee, Kramer Framer
Levin's services will also, without limitation, assist, advise, and
represent the Committee with respect to:
a. the administration of these cases and the exercise of
oversight with respect to the Debtors' affairs including
all issues in connection with the Debtors, the Committee
or the Chapter 11 cases;
b. the preparation on behalf of the Committee of necessary
applications, motions, memoranda, orders, reports and
other legal papers;
c. appearances in Court and at statutory meetings of
creditors to represent the interests of the Committee;
d. the negotiation, formulation, drafting and confirmation
of a plan or plans of reorganization and matters related
thereto;
e. the investigation, if any, as the Committee may desire
concerning, among other things, the assets, liabilities,
financial condition, sale of any of the Debtors'
businesses, and operating issues concerning the Debtors
that may be relevant to the Chapter 11 Cases;
f. communications with the Committee's constituents and
others at the direction of the Committee in furtherance
of its responsibilities, including, but not limited to,
communications required under Section 1102 of the
Bankruptcy Code; and
g. the performance of all of the Committee's duties and
powers under the Bankruptcy Code and the Bankruptcy Rules
and the performance of other services as are in the
interests of those represented by the Committee.
Kramer Levin will bill:
Professional Hourly Rate
------------ -----------
Partners US$500 to US$795
Counsel US$505 to US$855
Associates US$295 to US$545
Legal Assistants US$190 to US$220
Kramer Levin will also seek reimbursement of out-of-pocket expenses.
Thomas Moers Mayer, Esq., a member at Kramer Levin, assures the
Court that:
(i) the firm is a "disinterested person" within the meaning
of Section 101(14) of the Bankruptcy Code;
(ii) neither Kramer Levin nor its professionals have any
connection with the Debtors, the creditors or any other
party-in-interest; and
(iii) Kramer Levin does not hold or represent any interest
adverse to the Committee in the matters for which it is
to be retained.
Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) --
http://www.DURAauto.com/-- is an independent designer and manufacturer of
driver control systems, seating control systems, glass systems, engineered
assemblies, structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar products to
the recreation vehicle and specialty vehicle industries. DURA sells its
automotive products to North American, Japanese and European original
equipment manufacturers and other automotive suppliers.
The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. District
of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein,
Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland
& Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark
D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq.,
of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel.
Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal
LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the
Debtors' investment banker. Glass & Associates Inc., gives financial advice
to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims
and balloting for the Debtors and Brunswick Group LLC acts as their
Corporate Communications Consultants for the Debtors. As of July 2, 2006,
the Debtor had US$1,993,178,000 in total assets and US$1,730,758,000 in
total liabilities. (Dura Automotive Bankruptcy News, Issue No. 6;
Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).
DURA AUTO: Gets Court's Final Nod to Pay Foreign Vendor Claims
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware granted, on a final
basis, DURA Automotive Systems Inc. and its debtor affiliates' request to
pay prepetition claims owing to vendors, service providers, regulatory
agencies, and governments located in foreign jurisdictions, including claims
for payment for direct and indirect materials and services provided to the
Debtors, as well as import or tax obligations.
As reported in the Troubled Company Reporter on Nov. 20, 2006, the Debtors
estimated that they owe approximately US$3,400,000 to Foreign Vendors as of
their bankruptcy filing. Of that amount, the Foreign Claims of the foreign
joint venture aggregate approximately US$100,000.
The Debtors also requested that they be authorized to permit all prepetition
checks issued by them to the Foreign Vendors to clear the Debtors' bank
accounts.
The Debtors further requested that the banks honor, unless otherwise
directed, any and all prepetition and postpetition checks drawn by the
Debtors to pay any of the prepetition and postpetition obligations owing to
the Foreign Entities.
Rochester Hills, Mich.-based DURA Automotive Systems, Inc. (Nasdaq: DRRA) --
http://www.DURAauto.com/-- is an independent designer and manufacturer of
driver control systems, seating control systems, glass systems, engineered
assemblies, structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar products to
the recreation vehicle and specialty vehicle industries. DURA sells its
automotive products to North American, Japanese and European original
equipment manufacturers and other automotive suppliers.
The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202). Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq.,
Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton
& Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts
as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors'
conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment
banker. Glass & Associates Inc., gives financial advice to the Debtor.
Kurtzman Carson Consultants LLC handles the notice, claims and balloting for
the Debtors and Brunswick Group LLC acts as their Corporate Communications
Consultants for the Debtors. As of July 2, 2006, the Debtor had
US$1,993,178,000 in total assets and US$1,730,758,000 in total liabilities.
(Dura Automotive Bankruptcy News, Issue No. 7; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
BENQ CORP: U.S.-German Investors May Bid for Bankrupt Mobile Arm
----------------------------------------------------------------
BenQ Mobile GmbH & Co OHG, the bankrupt German unit of Taiwan-based BenQ
Corp., has attracted potential investors, including an unidentified
U.S.-German consortium with IT and telecommunications backgrounds, according
to published reports.
"The German-American group is one of several groups interested in BenQ,"
Regine Petzsch, a spokeswoman for insolvency administrator Martin Prager,
was quoted by the IDG News Service as saying. "There is a sense of urgency
with the negotiations because everyone realizes that the longer the plants
remain idle, the more difficult it will be to start them up again."
Ms. Petzsch declined to comment on the identity of the interested parties.
John Blau of IDG News Service states that ministry officials in Dusseldorf
and Bavaria are looking for ways to rescue the company's facilities in
Kamp-Lintfort, Bocholt and Munich.
Ministry officials, investors, Siemens executives, BenQ Mobile workers'
council representatives, the investor group and Mr. Prager discussed the
consortium's offer Jan. 8 at a special meeting at the Ministry of Economics
in the state government of North Rhine Westphalia in Dusseldorf, Mr. Blau
reports.
Unnamed sources told German news magazine Spiegel that the investor group is
seeking:
-- up to EUR100 million in state-backed credit lines;
-- compensation for employing 800 BenQ Mobile employees, who
have since been transferred to a temporary organization
funded by Siemens and the Federal Employment Agency; and
-- rights to BenQ Corp.'s brand names.
Spiegel reveals that Hansjorg Beha, a technology investor and former IT
director at then Daimler-Benz, is one of the members of the U.S.-German
group.
Sentex Sensing Bid
Meanwhile, Henrik Rubinstein, Sentex Sensing Tech.'s chief executive, told
Die Welt that Sentex plans to bid for BenQ Mobile, AFX News Limited relates.
Terms of the deal were not disclosed.
A Munich Court opened insolvency proceedings against BenQ Mobile on Jan. 1
after Mr. Prager failed to meet a Dec. 31 deadline in finding a buyer for
the company.
CIO Magazine related that potential buyers were obliged to take
over the entire company and its work force prior to the
Dec. 31, 2006, deadline. However, as of Jan. 1, potential investors can bid
to acquire all or a part of the company, without the law binding them to
take over any former employees, CIO Magazine said.
As reported on Sept. 29, 2006, the board of directors of BenQ Corp. decided
to discontinue capital injection into BenQ Mobile in order to stem
unsustainable losses in the latter's operations. Subsequently it filed an
insolvency petition for the German mobile phone unit.
Bloomberg News reported that more than 3,000 manufacturing
workers have been affected in the company's insolvency
proceedings after it disclosed of plans to reduce two-thirds of
its work force. The mobile unit took over a factory in Kamp
Lintfort in western Germany from Siemens, which cost Siemens
more than US$1 billion. Under the agreement, BenQ will have the
right to use the Siemens brand for five years. Siemens owns a
2.5 percent stake in BenQ Corp.
About Siemens
Siemens (Berlin and Munich) -- http://www.siemens.com/-- is a
global powerhouse in electrical engineering and electronics.
The company has around 461,000 employees working to develop and
manufacture products, design and install complex systems and
projects, and tailor a wide range of services for individual
requirements. Siemens provides innovative technologies and
comprehensive know-how to benefit customers in 190 countries.
Founded more than 155 years ago, the company focuses on the
areas of Information and Communications, Automation and Control,
Power, Transportation, Medical, and Lighting. In fiscal 2005
(ended September 30), Siemens had sales from continuing
operations of EUR75.4 billion and net income of EUR3.058
billion.
About BenQ
Headquartered in Taiwan, Republic of China, BenQ Corporation,
Inc. -- http://www.benq.com/-- is principally engaged in
manufacturing, developing and selling of computer peripherals
and telecommunication products. It is also a major provider of
3G handset, 3G handset, Camera phones, and other products.
BenQ Mobile GmbH & Co., the company's wholly owned subsidiary,
operates from Munich, Germany. BenQ Mobile filed for insolvency
in Germany on Sept. 29. The collapse follows a year after
Siemens sold the company to Taiwanese technology group BenQ.
BenQ Mobile has lost market share against giant competitors.
It has operations in Brazil.
* * *
As reported in the TCR-AP on Oct. 31, Taiwan Ratings Corp.
affirmed its twBB+/twB corporate credit ratings and twBB+
unsecured corporate bond issue rating on BenQ Corp. The outlook
on the long-term rating is negative. At the same time, Taiwan
Ratings removed all ratings from Credit Watch with negative
implications, where they were placed on March 14, 2006, and
withdrew all the ratings upon the company's request.
DURA AUTOMOTIVE: Panel Taps Young Conaway as Bankr. Co-Counsel
--------------------------------------------------------------
The Official Committee of Unsecured Creditors in DURA Automotive Systems
Inc. and its debtor affiliates' Chapter 11 cases seek authority from the
U.S. Bankruptcy Court for the District of Delaware to retain Young Conaway
Stargatt & Taylor, LLP as bankruptcy co-counsel, nunc pro tunc to Nov. 14,
2006.
Committee Chairperson Nicholas W. Walsh relates that Young
Conaway will, among others:
(a) assist and advise the Committee in its consultation with
the Debtors and the U.S. Trustee relative to the
administration of the Debtors' Chapter 11 cases;
(b) review, analyze and respond to pleadings filed with the
Court by the Debtors and to participate in the pleading
hearings;
(c) assist and advise the Committee in its examination and
analysis of the conduct of the Debtors' affairs and
financial condition;
(d) assist the Committee in the review, analysis, and
negotiation of any plan of reorganization and its
disclosure statement, and any asset acquisition proposal
that may be filed;
(e) take all necessary action to protect the rights and
interests of the Committee, including, but not limited
to, possible prosecution of actions on its behalf; if
appropriate, negotiations concerning all litigation in
which the Debtors are involved; and if appropriate,
review and analysis of claims filed against the Debtors'
estate;
(f) represent the Committee in connection with the exercise
of its powers and duties under the Bankruptcy Code and in
connection with the Debtors' Chapter 11 cases;
(g) generally prepare on behalf of the Committee all
necessary motions, applications, answers, orders, reports
and papers in support of positions taken by the
Committee;
(h) assist the Committee in the review, analysis, and
negotiation of any financing arrangements; and
(i) perform all other necessary legal services in connection
with the Debtors' Chapter 11 cases.
Young Conaway will bill:
Professional Hourly Rate
------------ -----------
M. Blake Cleary US$440
Edmon L. Morton US$380
Erin Edwards US$270
Kim Beck (paralegal) US$155
Mr. Cleary, a partner at Young Conaway, discloses that the firm may have in
the past represented, may currently represent, and will likely in the future
represent parties-in-interest to the Debtors' Chapter 11 cases. Mr. Cleary
assures the Court that no past or current representations are material or
related to the Debtors' Chapter 11 cases. The parties are:
-- certain Secured lenders represented by the firm include
Bank of America, N.A.; Deutsche; Silver Point Capital; and
Wachovia Bank, National Association;
-- Contender 2 Limited, a significant equity investor and
shareholder;
-- the Debtors' Indenture Trustees;
-- significant bondholders, including Bank of America;
Deutsche; Jefferies & Company, Inc.; Lehman Brothers Inc;
and Wachovia Bank; and
-- Lear Corp., a litigant.
Mr. Cleary assures the Court that his firm is a "disinterested person," as
that term is defined in Section 101(14) of the Bankruptcy Code.
Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) --
http://www.DURAauto.com/-- is an independent designer and manufacturer of
driver control systems, seating control systems, glass systems, engineered
assemblies, structural door modules and exterior trim systems for the global
automotive industry. The company is also a supplier of similar products to
the recreation vehicle and specialty vehicle industries. DURA sells its
automotive products to North American, Japanese and European original
equipment manufacturers and other automotive suppliers.
The Debtors filed for chapter 11 petition on October 30, 2006 (Bankr.
District of Delaware Case No. 06-11202). Richard M. Cieri, Esq., Marc
Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq.,
of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy
proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason
M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the
Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel.
Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire
& Co., LLC is the Debtors' investment banker. Glass & Associates Inc.,
gives financial advice to the Debtor. Kurtzman Carson Consultants LLC
handles the notice, claims and balloting for the Debtors and Brunswick Group
LLC acts as their Corporate Communications Consultants for the Debtors. As
of July 2, 2006, the Debtor had US$1,993,178,000 in total assets and
US$1,730,758,000 in total liabilities. (Dura Automotive Bankruptcy News,
Issue No. 7; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).
ELETROPAULO METROPOLITANA: Starting Internet Services Tests
-----------------------------------------------------------
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA will launch tests for
broadband Internet services in Sao Paulo over the firm's electric power
network, Gazeta Mercantil reports.
According to Gazeta Mercantil, Eletropaulo Metropolitana has been testing
power line communication in laboratories for three years.
Eletropaulo Metropolitana commercial director Gilberto Cardoso told Business
News Americas that despite the technology being available for 15 years, it
is yet starting to become viable.
BNamericas notes that the tests could boost the potential transmission
speeds for the network to 200 million bits per second, compared with 45
million bits per second three years ago.
Mr. Cardoso told BNamericas that this is higher than what most access
providers of telecoms equipment offer, with Asymmetric Digital Subscriber
Line reaching speed limitations.
With PLC, there is no need to lay down cables inside buildings. Modems
would then be the only additional element required to achieve Internet
access, BNamericas states.
Eletropaulo distributes power in Brazil's industrial hub of Sao
Paulo city and 23 surrounding towns. Power consumption in Sao
Paulo state grew 3.8% in 2005 from 2004, according to data from
Sao Paulo state government.
* * *
As reported in the Troubled Company Reporter-Latin America on Nov. 8, 2006,
Standard & Poor's Ratings Services raised the ratings on Brazilian electric
utility Eletropaulo Metropolitana Eletricidade de Sao Paulo SA and its
BRL474 million senior unsecured and unsubordinated euro bonds to 'BB-' from
'B+'. On the Brazil national scale, the 'brBBB+' corporate credit rating
was raised to 'brA-'. S&P said the outlook is stable.
FIAT SPA: Eyes EUR5-Billion Operating Profit in 2010
----------------------------------------------------
Fiat S.p.A. aims to double its net profit this year and post EUR5 billion in
operating profits in 2010, Agenzia Giornalistica Italia reports citing
company Chief Executive Sergio Marchionne.
"The aim is to arrive at 2010 with EUR5 billion in operating profits.
10,000 billion Lira, a huge number, never reached before in Fiat's past,"
Mr. Marchionne said during a visit at Fiat's Piedimonte San Germano plant.
"We are talking about an enormous result thanks to the work of all of the
sectors. This is a huge goal that the group has never reached in the past.
This was possible only due to the collective work of Fiat"
Mr. Marchionne revealed Fiat would achieve the goal by strengthening and
expanding its international, AGI relays.
"We have announced quite a few in the last two years and these will
continue," Mr. Marchionne said. "The future of Fiat Auto is to find
international partners with whom to develop its structure without running
particular risks."
Meanwhile, Mr. Marchionne announced the roll-off of its Bravo car, produced
at Fiat's Piedimonte San Germano plant, in February. He also disclosed of
the launching of its Delta car, manufactured at the company's Cassino site,
at the end of 2007, AGI reports.
About Fiat
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial groups in
Italy and the fourth largest European-based automobile manufacturer, with
revenues of EUR33.4 billion in the first nine months of 2005. Fiat's
creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca
Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat manufactures cars in Italy, Poland, Brazil and Argentina, with joint
venture productions in France, Turkey, Egypt South Africa, India, Russia and
China.
* * *
As reported on Nov. 6, 2006, Moody's Investors Service changed the outlook
on Fiat S.p.A.'s Ba3 Corporate Family Rating to positive from stable and
affirmed the long-term senior unsecured ratings as well as the short-term
non-Prime rating.
Outlook Actions:
Issuer: Fiat Finance & Trade Ltd.
* Outlook, Changed To Positive From Stable
Issuer: Fiat Finance Canada Ltd.
* Outlook, Changed To Positive From Stable
Issuer: Fiat Finance Luxembourg S.A.
* Outlook, Changed To Positive From Stable
Issuer: Fiat Finance North America Inc.
* Outlook, Changed To Positive From Stable
Issuer: Fiat France S.A.
* Outlook, Changed To Positive From Stable
Issuer: Fiat S.p.A.
* Outlook, Changed To Positive From Stable
Fiat's Ba3/non-Prime ratings continue to reflect
-- Fiat Group's scope and geographically
well spread operations,
-- the solid market position of Case New Holland and
its potential to improve its highly indebted
financial profile, and
-- Iveco's stable market share in the European truck
markets.
On Oct. 4, 2006, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and
senior unsecured ratings at BB- and Short-term rating at B. This follows
Fiat's exercise of its call option to buy back 29% of Ferrari's capital from
a consortium led by Mediobanca. Fitch said the Outlook is Positive.
On Aug. 8, 2006, Standard & Poor's Ratings Services raised its long- term
corporate credit rating on Fiat S.p.A. to 'BB' from 'BB-'. At the same time,
Standard & Poor's affirmed its 'B' short-term rating on Fiat. S&P said the
outlook is stable.
FIAT SPA: Maserati Aims to Raise Deliveries Outside Italy
---------------------------------------------------------
Maserati S.p.A., the luxury- and sports-car unit of Fiat S.p.A., aims to
sell 7,000 vehicles and raise deliveries outside Italy by the end of the
year, Bloomberg News reports citing Giancarlo Binetti, sales chief of the
Maserati division, as saying.
"The markets in which we believe we can grow well are four, including the
U.S., Middle East, China and Japan," Mr. Binetti told Bloomberg.
The division plans to raise sales by 30% in the U.S. and 45% in Japan in
2007 and doubles it in the next two to three years.
Maserati is one of CEO Sergio Marchionne's attempts to Fiat's turnaround.
Sales of Maserati increased 0.5 percent in 2006, Mr. Binetti disclosed. The
division sold 4,171 cars in the first nine months of 2006 and had an
operating loss of EUR32 million.
About Fiat
Headquartered in Turin, Italy, Fiat S.p.A. --
http://www.fiatgroup.com/-- is one of the largest industrial groups in
Italy and the fourth largest European-based automobile manufacturer, with
revenues of EUR33.4 billion in the first nine months of 2005. Fiat's
creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca
Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano.
Fiat manufactures cars in Italy, Poland, Brazil and Argentina, with joint
venture productions in France, Turkey, Egypt South Africa, India, Russia and
China.
* * *
As reported on Nov. 6, Moody's Investors Service changed the outlook on Fiat
S.p.A.'s Ba3 Corporate Family Rating to positive from stable and affirmed
the long-term senior unsecured ratings as well as the short-term non-Prime
rating.
Outlook Actions:
Issuer: Fiat Finance & Trade Ltd.
* Outlook, Changed To Positive From Stable
Issuer: Fiat Finance Canada Ltd.
* Outlook, Changed To Positive From Stable
Issuer: Fiat Finance Luxembourg S.A.
* Outlook, Changed To Positive From Stable
Issuer: Fiat Finance North America Inc.
* Outlook, Changed To Positive From Stable
Issuer: Fiat France S.A.
* Outlook, Changed To Positive From Stable
Issuer: Fiat S.p.A.
* Outlook, Changed To Positive From Stable
Fiat's Ba3/non-Prime ratings continue to reflect
-- Fiat Group's scope and geographically
well spread operations,
-- the solid market position of Case New Holland and
its potential to improve its highly indebted
financial profile, and
-- Iveco's stable market share in the European truck
markets.
On Oct. 4, Fitch Ratings affirmed Fiat S.p.A.'s Issuer Default and senior
unsecured ratings at BB- and Short-term rating at B. This follows Fiat's
exercise of its call option to buy back 29% of Ferrari's capital from a
consortium led by Mediobanca. Fitch said the Outlook is Positive.
On Aug. 8, Standard & Poor's Ratings Services raised its long- term
corporate credit rating on Fiat S.p.A. to 'BB' from 'BB-'. At the same time,
Standard & Poor's affirmed its 'B' short-term rating on Fiat. S&P said the
outlook is stable.
GP INVESTMENTS: Fitch Rates Foreign Currency IDR at B
-----------------------------------------------------
Fitch rates GP Investments Ltd. as:
-- Foreign currency Issuer Default rating 'B';
-- Intended issue of USD150 million of perpetual
notes 'B/RR4'.
The Rating Outlook is Stable.
GP Investments' ratings are supported by conservative leverage levels, the
franchise of the company and the experience of the management team which
bodes well for positive prospects going forward. The ratings are
constrained, however, by the highly concentrated nature of the intended
investment portfolio, the negative cash flow implied by recurring fixed
expenses versus recurring income, and the uncertainty related to the
maturation period of the investment portfolio and GP Investments' ability to
realize investment gains.
GP Investments is a Bermuda exempted company that consolidates the
activities of a private equity business and an asset management business in
Brazil. The company's activities started in 1993 as an asset manager
dedicated to private equity activities, managed by partners with substantial
experience in the Brazilian market. A major corporate reorganization was
completed in 2005 in preparation to an IPO of the company during year 2006.
The company is listed on the Luxembourg Stock Exchange and also has a BDS
program on the Brazilian Stock Market.
Since 1993, GP Investments has built up a successful track record in the
Brazilian private equity market, having invested more than US $1.4 billion
in 40 companies in Brazil as of December 2006. Over time the company has
refined its investment strategies. It currently looks to acquire
investments only with control or joint control positions, with a preference
for larger companies, and will not invest in start-ups and green field
projects; while some limits regarding maximum exposures by company or sector
are in place, GP's investment portfolio is, and will remain, highly
concentrated.
As of end September 2006, GP Investment managed a portfolio of two
investments and has announced the subscription of 4 additional investments.
The significant reduction in the size of the investment portfolio down to
US$83 million at end-September 2006, is the result of the reorganization
process completed in 2006, where the company spun off the bulk of its
previous investments in three other private equity funds and also completed
the subscription of USD 308 millions in new capital through the successful
IPO in the Brazilian and Luxembourg stock market. The proceeds are expected
to be used to fund new investments in the private equity business.
In addition to its private equity business, the company through its
subsidiary GP Asset offers services focused on creating and managing
alternative fixed-income, equity and multi-asset funds to institutional
clients, financial intermediaries, private clients and investment vehicles
in Brazil. This business provides an important portion of the recurring
income of the company, though historically total recurring income has not
been sufficient to cover operating expenses, which have been funded through
the income generated by the positive results of the valuation and exits in
the investment portfolio and the maintenance of liquidity on hand for these
purposes.
Given the unpredictable nature of the results and timing of capital gains in
the investment portfolio or of the possible positive results in future exits
of those investments and the concentration of the portfolio, Fitch Ratings
believes that a more ample array of recurring income would be needed to
sustain current operating expenses, which will include debt service after
the issue, and enhance the risk profile of the company.
The perpetual notes will have no fixed final maturity date and will be
repaid only in the event that the Issuer redeems the notes or upon
acceleration due to an event of default. The notes will be general
unsubordinated obligations of the Issuer and will rank 'pari passu' with the
issuer's unsubordinated indebtedness. The obligations of the Issuer under
the notes will be secured by a first priority pledge by the Issuer of shares
representing 100% of the currently outstanding shares of GP Private Equity
Ltd., and liquidity will be supported by an 18 month coupon payment reserve
which will be deposited in a trustee.
The rating of the issuance recognizes the liquidity implicit in the coupon
reserve, augmented by substantial cash currently on hand, nevertheless, the
concern is that the latter is intended to be used for investments, and its
availability at any point during the life of the debt instrument is
difficult to predict.
PACTUAL OVERSEAS: Fitch Upgrades Foreign Currency IDR to BB+
-------------------------------------------------------------
Fitch Ratings has upgraded the ratings of Banco UBS Pactual SA and its
subsidiary, Pactual Overseas Corp., following the successful closing of the
sale of 100% of Banco Pactual to UBS AG. The Rating Watch Positive on these
ratings is removed and Stable Outlooks are assigned to the Issuer Default
ratings. At the same time, Fitch has affirmed UBS Pactual's Individual at
'C/D' and the Short-term foreign currency ratings for both institutions at
'B'. The rating actions are as:
UBS Pactual:
-- Foreign currency IDR upgraded to 'BB+' from 'BB';
-- Off RWP Short-term foreign currency rating affirmed
at 'B';
-- Local currency IDR upgraded to 'BBB-'from 'BB';
-- Off RWP Short-term local currency upgraded
to 'F3' from 'B';
-- Individual rating affirmed at 'C/D';
-- National Long-term rating upgraded to 'AA+' from 'A+';
-- Off RWP National Short-term rating upgraded
to 'F1+' from F1;
-- Off RWP Support rating upgraded to '3' from '5'; Off RWP.
Pactual Overseas Corp.:
-- Foreign currency IDR upgraded to 'BB+' from 'BB';
-- Off RWP Short-term foreign currency rating affirmed
at 'B';
-- Local currency IDR upgraded to 'BB+' from 'BB';
-- Off RWP and withdrawn Short-term local currency
rating affirmed at 'B'; and
-- withdrawn Support rating upgraded to '3' from '4'; Off
RWP.
The rating actions reflect the support benefit that the new shareholder
should provide for both UBS Pactual and Pactual Overseas Corp. The
integration of UBS Pactual into UBS will enable the former to leverage its
excellent business generation capacity and take advantage of the superior
international distribution and goodwill associated with the UBS name.
In Fitch's opinion, the acquisition is consistent with UBS's worldwide
strategy to strengthen its presence in emerging markets. The agency views
that this acquisition will also enable UBS to assume leadership in providing
financial and investment bank services in Brazil, which had not been
possible with the previous acquisition of a small local bank and organic
growth, despite UBS's financial strength and the image of its international
franchise. The local currency ratings for POC are withdrawn, in
anticipation that any future issuance would likely be denominated in US
Dollar or other "hard" currency.
One of the main challenges for the new bank will be to combine UBS's sound
image and global norms with UBS Pactual's nimbleness, efficiency and
opportunistic quality - characteristics that distinguish the bank in the
market. In addition, the conditions agreed upon as payment should motivate
UBS Pactual's staff, who is expected to contribute to the success of the
operation.
Headquartered in Switzerland, UBS's foreign currency IDR is 'AA+', one of
the highest ratings assigned by Fitch to banks. It is among the largest
banking conglomerates in the world, with an excellent franchise in its
activities of administering funds and managing third-party resources, with
diversified revenues, consistent profitability, prudent risk approach and
strong capitalization. In June 2006, UBS recorded US$1,765 billion assets,
U$41 billion equity and net profit of US $5.6 billion. UBS entered the
Brazilian market in 1998, through the purchase of Banco Omega SA, changing
the name at the time to Banco Warburg Dillon Read SA. Before the
acquisition, the group operated in the country under the name of Banco UBS
(Brasil) SA.
UBS Pactual is the largest independent manager of third-party resources in
Brazil. Founded as a stock brokerage firm in 1983, it operates as an
investment bank, ranking among the 10 largest in operations on the
Commodities and Futures Exchange and the Sao Paulo Stock Exchange. UBS AG
directly and indirectly controls 100% of UBS Pactual.
PETROLEO BRASILEIRO: Ensuring Natural Gas Supplies at CSA Mill
--------------------------------------------------------------
Published reports say that Petroleo Brasileiros, the state-owned oil firm of
Brazil, is working with the Rio de Janeiro state government in studying ways
to ensure natural gas supplies for the CSA steel mill.
Business News Americas underscores that the 5.0-million-ton-per year slab
project is a joint venture between CVRD and ThyssenKrupp. The mill will
begin operations in 2009.
Rio de Janeiro has chosen CSA as one of its priorities, planning minister
Julio Bueno told Folha de S Paulo.
Folha de S Paulo relates that the CSA steel mill's natural gas consumption
is estimated at 2.1 million cubic meters per day at peak production.
Petroleo Brasileiro and Rio de Janeiro may have to decrease supply to other
consumers to guarantee gas to the steel mill, according to reports.
Headquartered in Rio de Janeiro, Brazil, Petroleo Brasileiro SA
aka Petrobras -- http://www2.petrobras.com.br/ingles/index.asp
-- 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.
Petrobras has operations in China, India, Japan, and Singapore.
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.
TAM SA: Adds Airbus A320 Aircraft to Fleet
------------------------------------------
TAM SA has received another Airbus aircraft A320 that starts operating this
week. This is the 1st Airbus A320/319 family incorporated this year into
TAM's fleet, bringing the total to 96 aircraft, of which 75 are Airbus
models -- 14 A319, 51 A320, and 10 A330. TAM expects its fleet to achieve
109 airplanes at the end of 2007.
The Airbus A320 is part of contracts that still foresee the acquisition of
57 Airbus aircraft -- 15 A319, 36 A320 and 6 A330 -- to be delivered until
2010. The contracts include the option of an additional 20 aircraft.
TAM also disclosed the acquisition of 4 Boeing 777-300ER with four options
to be delivered in 2008. TAM's strategic plan foresees an operational fleet
of 132 Airbus aircraft by the end of 2010.
TAM SA -- http://www.tam.com.br/-- operates regular flights to
47 destinations throughout Brazil. It serves 72 different
cities in the domestic market through regional alliances.
Additionally, it maintains code-share agreements with
international airline companies that allow passengers to travel
to a large number of destinations throughout the world. TAM was
the first Brazilian airline company to launch a loyalty program.
The program has over 3.3 million subscribers and has awarded
more than 3.6 million tickets.
* * *
Fitch assigned on Aug. 8, 2006, foreign currency and local
currency Issuer Default Ratings of 'BB' to TAM SA. Fitch has
also assigned a national scale rating of 'A+' (bra)' to TAM.
Fitch said the rating outlook is stable.
UBS PACTUAL: Fitch Upgrades Foreign Currency IDR to BB+ from BB
---------------------------------------------------------------
Fitch Ratings has upgraded the ratings of Banco UBS Pactual SA and its
subsidiary, Pactual Overseas Corporation, following the successful closing
of the sale of 100% of Banco Pactual to UBS AG. The Rating Watch Positive
on these ratings is removed and Stable Outlooks are assigned to the Issuer
Default ratings. At the same time, Fitch has affirmed UBS Pactual's
Individual at 'C/D' and the Short-term foreign currency ratings for both
institutions at 'B'. The rating actions are:
UBS Pactual:
-- Foreign currency IDR upgraded to 'BB+' from 'BB';
-- Off RWP Short-term foreign currency rating affirmed
at 'B';
-- Local currency IDR upgraded to 'BBB-'from 'BB';
-- Off RWP Short-term local currency upgraded
to 'F3' from 'B';
-- Individual rating affirmed at 'C/D';
-- National Long-term rating upgraded to 'AA+' from 'A+';
-- Off RWP National Short-term rating upgraded
to 'F1+' from F1;
-- Off RWP Support rating upgraded to '3' from '5'; Off RWP.
Pactual Overseas Corp.:
-- Foreign currency IDR upgraded to 'BB+' from 'BB';
-- Off RWP Short-term foreign currency rating affirmed
at 'B';
-- Local currency IDR upgraded to 'BB+' from 'BB';
-- Off RWP and withdrawn Short-term local currency
rating affirmed at 'B'; and
-- withdrawn Support rating upgraded to '3' from '4'; Off
RWP.
The rating actions reflect the support benefit that the new shareholder
should provide for both UBS Pactual and Pactual Overseas Corp. The
integration of UBS Pactual into UBS will enable the former to leverage its
excellent business generation capacity and take advantage of the superior
international distribution and goodwill associated with the UBS name.
In Fitch's opinion, the acquisition is consistent with UBS's worldwide
strategy to strengthen its presence in emerging markets. The agency views
that this acquisition will also enable UBS to assume leadership in providing
financial and investment bank services in Brazil, which had not been
possible with the previous acquisition of a small local bank and organic
growth, despite UBS's financial strength and the image of its international
franchise. The local currency ratings for Pactual Overseas Corp. are
withdrawn, in anticipation that any future issuance would likely be
denominated in US Dollar or other "hard" currency.
One of the main challenges for the new bank will be to combine UBS's sound
image and global norms with UBS Pactual's nimbleness, efficiency and
opportunistic quality - characteristics that distinguish the bank in the
market. In addition, the conditions agreed upon as payment should motivate
UBS Pactual's staff, who is expected to contribute to the success of the
operation.
Headquartered in Switzerland, UBS's foreign currency IDR is 'AA+', one of
the highest ratings assigned by Fitch to banks. It is among the largest
banking conglomerates in the world, with an excellent franchise in its
activities of administering funds and managing third-party resources, with
diversified revenues, consistent profitability, prudent risk approach and
strong capitalization. In June 2006, UBS recorded US$1,765 billion assets,
U$41 billion equity and net profit of US $5.6 billion. UBS entered the
Brazilian market in 1998, through the purchase of Banco Omega SA, changing
the name at the time to Banco Warburg Dillon Read SA. Before the
acquisition, the group operated in the country under the name of Banco UBS
(Brasil) SA.
UBS Pactual is the largest independent manager of third-party resources in
Brazil. Founded as a stock brokerage firm in 1983, it operates as an
investment bank, ranking among the 10 largest in operations on the
Commodities and Futures Exchange and the Sao Paulo Stock Exchange. UBS AG
directly and indirectly controls 100% of UBS Pactual.
===========================
C A Y M A N I S L A N D S
===========================
3S SOLUTIONS: Deadline for Proofs of Claim Filing Is Jan. 11
------------------------------------------------------------
3S Solutions Ltd.'s creditors are required to submit proofs of claim by Jan.
11, 2007, to the company's liquidators:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd.
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
3S Solutions' shareholders agreed on Nov. 22, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.
BALMORAL CONSULTANTS: Proofs of Claim Filing Is Until Jan. 11
-------------------------------------------------------------
Balmoral Consultants Inc.'s creditors are required to submit proofs of claim
by Jan. 11, 2007, to the company's liquidators:
Commerce Corporate Services Ltd.
P.O. Box 694, George Town
Grand Cayman, Cayman Islands
Tel: 949 8666
Fax: 949 0626
Creditors who are not able to comply with the Jan. 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.
Balmoral Consultants' shareholders agreed on Sept. 10, 2006, for the
company's voluntary liquidation under Section 135 of the Companies Law (2004
Revision) of the Cayman Islands.
CHERRY WILLOW: Deadline for Proofs of Claim Filing Is on Jan. 11
----------------------------------------------------------------
Cherry Willow Holding Co. Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd.
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
Cherry Willow's shareholders agreed on Dec. 1, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.
CHEYNE US: Proofs of Claim Filing Deadline Is Set for Jan. 11
-------------------------------------------------------------
Cheyne US Event Driven Fund Inc.'s creditors are required to submit proofs
of claim by Jan. 11, 2007, to the company's liquidators:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd.
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
Cheyne US' shareholders agreed on Nov. 29, 2006, for the company's voluntary
liquidation under Section 135 of the Companies Law (2004 Revision) of the
Cayman Islands.
CITIGROUP ALTERNATIVE: Proofs of Claim Filing Is Until Jan. 11
--------------------------------------------------------------
Citigroup Alternative Investments Enhanced Arbitrage Empire Capital Partners
II, Ltd.'s creditors are required to submit proofs of claim by Jan. 11,
2007, to the company's liquidators:
Scott A. Fine
Empire Capital Management, LLC
1 Gorham Island, Westport, CT 06880, USA
Creditors who are not able to comply with the Jan. 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.
Citigroup Alternative's shareholders agreed on Nov. 1, 2006, for the
company's voluntary liquidation under Section 135 of the Companies Law (2004
Revision) of the Cayman Islands.
Parties-in-interest may contact:
Ian Gobin
Walkers, Walker House
87 Mary Street, George Town
Grand Cayman KY1-9001, Cayman Islands
Tel: (345) 814 4604
Fax: (345) 949 7886
DALTON VIEW: Deadline for Proofs of Claim Filing Is on Jan. 11
--------------------------------------------------------------
Dalton View International Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidator:
Buchanan Ltd.
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
Creditors who are not able to comply with the Jan. 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.
Dalton View's shareholders agreed on Nov. 30, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.
Parties-in-interest may contact:
Timothy Haddleton
P.O. Box 1170, Grand Cayman KY1-1102
Cayman Islands
Tel: (345) 949-0355
Fax: (345) 949-0360
EUROPEAN PSYCHIC: Proofs of Claim Filing Deadline Is on Jan. 11
---------------------------------------------------------------
European Psychic Agency Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:
Linburgh Martin
Jeff Arkley
P.O. Box 1034, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
European Psychic's shareholders agreed on Nov. 30, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.
Parties-in-interest may contact:
Jeff Arkley
Close Brothers (Cayman) Ltd.
Fourth Floor, Harbour Place
P.O. Box 1034, George Town
Grand Cayman, Cayman Islands
EUROTAX GLASS'S: Deadline for Proofs of Claim Filing Is Jan. 11
---------------------------------------------------------------
Eurotax Glass's DDB Ltd.'s creditors are required to submit proofs of claim
by Jan. 11, 2007, to the company's liquidator:
David Knickel
87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
Eurotax Glass's' shareholders agreed on Dec. 1, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.
Parties-in-interest may contact:
Alexandra Corner
87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Tel: +44 207 220 4989
Fax: +44 207 220 4998
FAIRFIELD DOVER: Deadline for Proofs of Claim Filing Is Jan. 11
---------------------------------------------------------------
Fairfield Dover Fund Ltd.'s creditors are required to submit proofs of claim
by Jan. 11, 2007, to the company's liquidators:
Chris Humphries
Sophia A. Dilbert
c/o Stuarts Walker Hersant, Attorneys-at-Law
P.O. Box 2510GT, Cayman Financial Centre
36a Dr. Roy's Drive, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
Fairfield Dover's shareholders agreed on Dec. 1, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.
GRINGLI INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 11
---------------------------------------------------------------
Gringli Investments Ltd.'s creditors are required to submit proofs of claim
by Jan. 11, 2007, to the company's liquidators:
Commerce Corporate Services Ltd.
P.O. Box 694, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
Gringli Investments's shareholders agreed on Nov. 29, 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:
Commerce Corporate Services Ltd.
P.O. Box 694, George Town
Grand Cayman, Cayman Islands
Tel: 949 8666
Fax: 949 0626
JERMYN STREET: Deadline for Proofs of Claim Filing Is Jan. 11
-------------------------------------------------------------
Jermyn Street Capital Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd.
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
Jermyn Street's shareholders agreed on Nov. 24, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.
KOOKABURRA FINANCE: Proofs of Claim Filing Deadline Is Jan. 11
--------------------------------------------------------------
Kookaburra Finance (No.3) Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:
John Cullinane
Derrie Boggess
c/o Walkers SPV Ltd.
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
Kookaburra Finance's shareholders agreed on Dec. 1, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.
MARUBENI LEASING: Proofs of Claim Filing Deadline Is on Jan. 11
---------------------------------------------------------------
Marubeni Leasing (Cayman) Ltd.'s creditors are required to submit proofs of
claim by Jan. 11, 2007, to the company's liquidators:
Katsuhide Omuro
c/o Messrs. Maples and Calder
Attorneys-at-law
P.O. Box 309GT, Ugland House
South Church Street, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
Marubeni Leasing's shareholders agreed on Nov. 7, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.
PARMALAT SPA: Selling Parma AC for EUR4 Million
-----------------------------------------------
Parmalat S.p.A. plans to sell soccer team Parma AC for at least EUR4 million
to focus on its core operations, Bloomberg News says.
Interested parties have until today, Jan. 10, to submit non-binding offers,
Parmalat said in a published notice. Parmalat said potential buyers have to
indicate how much capital they are willing to inject to "reinforce the
team's financial structure and guarantee its competitiveness."
Two-time UEFA Cup champion Parma AC is currently second from bottom in the
Serie A division with 12 points. The team is trying to avoid relegation by
not landing at the bottom three.
About Parmalat
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that can be stored
at room temperature for months. It also has 40- some brand product line,
which includes yogurt, cheese, butter, cakes and cookies, breads, pizza,
snack foods and vegetable sauces, soups and juices.
The Company's U.S. operations filed for chapter 11 protection on Feb. 24,
2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L.
Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When
the U.S. Debtors filed for bankruptcy protection, they reported more than
US$200 million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate petitions for
Extraordinary Administration before the Italian Ministry of Productive
Activities and the Civil and Criminal District Court of the City of Parma,
Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary
Commissioner in each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in
the United States Bankruptcy Court for the Southern District of New York.
Parmalat has three financing arms: Parmalat Capital Finance Limited, Dairy
Holdings, Ltd., and Food Holdings, Ltd. Dairy Holdings and Food Holdings
are Cayman Island special-purpose vehicles established by Parmalat SpA. The
Finance Companies are under separate winding up petitions before the Grand
Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll
(Cayman) Limited serve as Joint Provisional Liquidators in the cases. On
Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362,
in the United States Bankruptcy Court for the Southern District of New York.
In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as
Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader,
Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304 case.
The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S.
cases.
PARMALAT SPA: Agrees with Liquidators to Continue TRO to Mar. 15
----------------------------------------------------------------
Gordon I. MacRae and James Cleaver, the Joint Official Liquidators of
Parmalat Capital Finance Limited, Dairy Holdings Limited, and Food Holdings
Limited, on the one hand, and Parmalat Finanziaria S.p.A. and its affiliates
and subsidiaries, under the direction of Dr. Enrico Bondi, Extraordinary
Administrator of the Parmalat companies, on the other, agree to further
extend the Temporary Restraining Order in the Finance Companies' Section 304
cases until March 15, 2007.
Judge Drain will convene a hearing to consider the Liquidators' application
for preliminary injunction on March 15, 2007, at 10:00 a.m. Parmalat
Finanziaria's time to answer the Petition commencing the ancillary
proceedings is extended until April 20.
The Joint Official Liquidators have been advised that an appeal from the TRO
will be taken to the Privy Council. In 2006, Judge Kaplan stayed all
proceedings in In re Parmalat Securities Litigation as to all the parties to
discuss settlement.
Accordingly, Messrs. Cleaver and MacRae have elected to seek to continue the
Temporary Restraining Order in place and not to seek entry of a preliminary
injunction at this point.
About Parmalat
Headquartered in Milan, Italy, Parmalat S.p.A. --
http://www.parmalat.net/-- sells nameplate milk products that can be stored
at room temperature for months. It also has 40- some brand product line,
which includes yogurt, cheese, butter, cakes and cookies, breads, pizza,
snack foods and vegetable sauces, soups and juices.
The Company's U.S. operations filed for chapter 11 protection on Feb. 24,
2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L.
Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When
the U.S. Debtors filed for bankruptcy protection, they reported more than
US$200 million in assets and debts. The U.S. Debtors emerged from
bankruptcy on April 13, 2005.
Parmalat S.p.A. and its Italian affiliates filed separate petitions for
Extraordinary Administration before the Italian Ministry of Productive
Activities and the Civil and Criminal District Court of the City of Parma,
Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary
Commissioner in each of the cases. The Parma Court has declared the units
insolvent.
On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in
the United States Bankruptcy Court for the Southern District of New York.
Parmalat has three financing arms: Parmalat Capital Finance Limited, Dairy
Holdings, Ltd., and Food Holdings, Ltd. Dairy Holdings and Food Holdings
are Cayman Island special-purpose vehicles established by Parmalat S.p.A.
The Finance Companies are under separate winding up petitions before the
Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of
Kroll (Cayman) Limited serve as Joint Provisional Liquidators in the cases.
On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No.
04-10362, in the United States Bankruptcy Court for the Southern District of
New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and
Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at
Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey,
Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304
case.
The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S.
cases.
(Parmalat Bankruptcy News, Issue No. 83; Bankruptcy Creditors' Service,
Inc., 215/945-7000, http://bankrupt.com/newsstand/)
PEACEFUL INVESTMENTS: Proofs of Claim Filing Deadline Is Jan. 11
----------------------------------------------------------------
Peaceful Investments Holdings Ltd.'s creditors are required to submit proofs
of claim by Jan. 11, 2007, to the company's liquidator:
Commerce Corporate services Ltd.
P.O. Box 694, George Town
Grand Cayman, Cayman Islands
Tel: 949 8666
Fax: 949 0626
Creditors who are not able to comply with the Jan. 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.
Peaceful Investments' shareholders agreed on Nov. 22, 2006, for the
company's voluntary liquidation under Section 135 of the Companies Law (2004
Revision) of the Cayman Islands.
SWAPCO NO. 12: Deadline for Proofs of Claim Filing Is on Jan. 11
----------------------------------------------------------------
Swapco No. 12 Ltd.'s creditors are required to submit proofs of claim by
Jan. 11, 2007, to the company's liquidator:
Liquidation Services Ltd.
Walker House, Mary Street
PO Box 908GT, George Town
Grand Cayman, Cayman Islands
Creditors who are not able to comply with the Jan. 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.
Swapco No. 12's shareholders agreed on Nov. 30, 2006, for the company's
voluntary liquidation under Section 135 of the Companies Law (2004 Revision)
of the Cayman Islands.
=========
C H I L E
=========
AES CORP: Joins Electric Drive Transportation Association Board
---------------------------------------------------------------
The AES Corp. has joined the Electric Drive Transportation Association or
EDTA, and Robert Hemphill, Executive Vice President of AES, will serve as
AES' representative on the EDTA Board of Directors. EDTA is the industry
association representing battery, hybrid and fuel cell transportation
technologies and supporting infrastructure.
AES joins four energy companies on the EDTA Board, which also includes auto
manufacturers, component suppliers, and other industry organizations.
"AES is committed to meeting a growing market need for alternative energy
resources and technologies," said Robert Hemphill. "We see electric drive
as a practical way to meet our transportation needs while also supporting
the environment. We are pleased to join the Board of EDTA and to work with
all of EDTA's members to support the use of electric transportation."
"Electric drive technology is an indispensable part of the effort to create
a secure and sustainable energy future," said EDTA President Brian Wynne.
"AES' leadership on the Board will accelerate EDTA's efforts in Washington,
DC and throughout our industry."
AES plans to invest in excess of US$1 billion over the next three years in
the alternative energy sector, including power wind generation, global
climate change and liquefied natural gas. Through its global climate change
business, AES is targeting the production of up to 40 million tons per year
of emission offset credits by 2012.
About EDTA
EDTA is the preeminent U.S. industry association dedicated to the promotion
of electric drive as the best means to achieve the highly efficient and
clean use of secure energy in the transportation sector. As a unified voice
for the electric drive industry, EDTA's membership includes a diverse
representation of vehicle and equipment manufacturers, energy providers,
component suppliers and end users. EDTA supports the sustainable
commercialization of all electric drive transportation technologies by
providing in-depth information, education, industry networking, public
policy advocacy and international conferences and exhibitions.
About AES Corp.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.
AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela. Fuels include biomass, diesel, coal, gas and hydro.
The group also pursues business development activities in the
region. AES has been in the region since May 1993, when it
acquired the CTSN power plant in Argentina.
* * *
As reported on Oct. 23, 2006, Moody's Investors Service affirmed its B1
Corporate Family Rating for AES Corp. in connection with the implementation
of its new Probability-of-Default and Loss-Given-Default rating methodology.
Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on the company's loans
and bond debt obligations including the B1 rating on its senior
unsecured notes 7.75% due 2014, which was also given an LGD4
loss-given default rating, suggesting noteholders will
experience a 55% loss in the event of a default.
===============
C O L O M B I A
===============
SUN MICROSYSTEMS: Launches Sun Blade & Sun(SM) Refresh Services
---------------------------------------------------------------
Sun Microsystems, Inc., has launched the Sun Blade(TM) X8420 and server
module and the Sun(SM) Refresh Service.
Posting three new performance world records, the Sun Blade(TM) X8420 and the
Sun(SM) Refresh Service set a new standard for 4-socket servers, especially
when combined with the Solaris(TM) 10 Operating System (OS), the most
advanced operating system.
The Sun Blade X8420 and the Sun Refresh Service provide customers with the
fastest, most up-to-date and flexible datacenters for years to come. As the
only blade systems designed specifically to run resource-intensive
enterprise business and technical applications, the Sun Blade 8000 modular
systems are the first blade servers available to support the highest-
performing AMD Opteron(TM) processors with industry-leading x86 performance-
per-watt.
"Today's datacenters are looking for ways to save operating expenses, but
they also need to stay up to speed with the latest and greatest technology
to deliver the highest performance levels. Sun changed the blade landscape
when we introduced the Sun Blade 8000 modular system in July, so we decided
to create a powerful service to help customers with this dilemma. The Sun
Refresh Service gives customers the ability to refresh their x64
architecture as soon as new technology becomes available, saving on power
and cooling costs in addition to millions of dollars in software licenses,"
said Lisa Sieker, vice president of marketing for Sun's Systems Group.
The Sun Refresh Service is an industry first. No other vendor offers a
subscription service that allows customers to reap maximum performance and
efficiency from their datacenters on an ongoing basis at half the cost of
traditional acquisition methods. The subscription service program includes
installation of the Sun Blade 8000 modular system with server modules, plus
three refreshes of server modules over a 42-month period. Customers receive
automatic upgrades to the latest blade architecture as soon as it becomes
available. With each refresh, Sun will deliver and install new server
modules and pick up the old server modules.
The Sun Blade X8420 server module, powered by Next-Generation AMD Opteron
8000 series processors, is the only blade server to offer 4-socket dual-core
2.8 gigahertz processors and extremely versatile I/O that delivers up to 16
times the throughput of competing 4-socket blade and rackmount servers.
These features allowed the Sun Blade X8420 server module to shine on a
variety of industry- standard benchmarks and set an 8-thread world record on
SPEC OMPM2001 suite, making it the fastest blade server on the planet. The
new record result easily surpasses the competing IBM System p5 550 and HP
ProLiant DL585 scores by 16% and 29%, respectively. Furthermore, the Sun
Blade X8420 server module posted two x86 world records on both floating
point and integer-intensive suites of SPEC CPU2006 benchmark.
Additionally, the Sun Blade X8420 server module offers maximum I/O
flexibility with unique, externally accessible, hot-pluggable I/O adapters.
Industry standard PCIe ExpressModules, which support Gigabit Ethernet, Fibre
Channel and InfiniBand technologies, allow customers to mix applications
that require different I/O configurations within the same chassis and
further expand the configuration flexibility of Sun Blade 8000 and 8000P
modular systems.
The Sun Blade X8420 server module is available now, with entry-level pricing
starting at US$13,095 per server module. The Sun Refresh Service is
available now for customers in the US. Monthly, quarterly and annual rates
vary.
Headquartered in Santa Clara, California, Sun Microsystems Inc.
-- http://www.sun.com/-- provides network computing
infrastructure solutions that include computer systems, data
management, support services and client solutions and
educational services. It sells networking solutions, including
products and services, in most major markets worldwide through a
combination of direct and indirect channels.
Sun Microsystems conducts business in 100 countries around the globe,
including Latin America: Chile, Colombia, Brazil, Argentina, Mexico and
Venezuela.
* * *
As reported 1on Oct. 26, Moody's Investors Service has confirmed its Ba1
Corporate Family Rating for Sun Microsystems Inc. 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. Technology Hardware
sector.
Sun Microsystems, Inc.'s 7-1/2% Senior Notes due Aug. 15, 2006,
and 7.65% Senior Notes due Aug. 15, 2009, carry Moody's
Investors Service's Ba1 rating and Standard & Poor's BB+ rating.
===================================
D O M I N I C A N R E P U B L I C
===================================
AES CORP: Trial on Dominican Republic's Lawsuit Set for March 5
---------------------------------------------------------------
Judge Gerald Bruce Lee of the Commonwealth of Virginia Federal Court will
start hearing the lawsuit filed against AES Corp. by the Dominican Republic
on March 5, Dominican Today reports.
As reported in the Troubled Company Reporter-Latin America on Jan. 10, 2007,
the Dominican government sought for US$80 million in damages from AES Corp.
for 82,000 tons of coal ash dumped on its beaches. The government said that
the tons of ash were left on the beaches in Manzanillo and the Samana Bay
port town of Arroyo Barril between October 2003 and March 2004 without
proper government permits. These tons of ash were transported from an AES
Plant in Guayama, Puerto Rico. The Dominican nation also sued Roger Charles
Fina, the owner of the firm hired by AES Corp. to transport the ash. Max
Puig, the Dominican Republic's environment and natural resources secretary,
said that representatives from the Dominican nation and AES Corp. would meet
with mediators in Virginia, USA, to discuss settling the lawsuit. If no
settlement would be reached this week, the dispute would go before a federal
jury in the US on March 5, 2007.
Dominican Today underscores that the judge could weigh if evidence exists to
reach at an agreement.
Mr. Puig believes that justice will prevail and said that the Dominican
government is willing to discuss a possible agreement, as long as AES Corp.
assumes its responsibility and removes the rock ash, Dominican Today states.
AES Corp. -- http://www.aes.com/-- is a global power company.
The company operates in South America, Europe, Africa, Asia and
the Caribbean countries. Generating 44,000 megawatts of
electricity through 124 power facilities, the company delivers
electricity through 15 distribution companies.
AES Corp.'s Latin America business group is comprised of
generation plants and electric utilities in Argentina, Brazil,
Chile, Colombia, Dominican Republic, El Salvador, Panama and
Venezuela. Fuels include biomass, diesel, coal, gas and
hydro. The group also pursues business development activities
in the region. AES has been in the region since May 1993, when
it acquired the CTSN power plant in Argentina.
* * *
As reported in the Troubled Company Reporter - Asia Pacific on
Oct. 20, 2006, Moody's Investors Service's downgraded its B1
Corporate Family Rating for AES Corporation in connection with
the implementation of its new Probability-of-Default and Loss-
Given-Default rating methodology. Additionally, Moody's revised
its probability-of-default ratings and assigned loss-given-
default ratings on the company's loans and bond debt obligations
including the B1 rating on its senior unsecured notes 7.75% due
2014, which was also given an LGD4 loss-given default rating,
suggesting noteholders will experience a 55% loss in the event
of a default.
BANCO INTERCONTINENTAL: Alvarez Renta Tries to Evade Sanction
-------------------------------------------------------------
Luis Alvarez Renta, a Dominican financier who was indicted in the Banco
Intercontinental fraud case, has been trying to frustrate U.S. District
Court judge Jose E. Martinez's ruling that he pay US$58.9 million in damages
to the Dominican government, Dominican Today reports, citing law firm Tew
Cardenas, the Dominican Republic's legal representative in the Banco
Intercontinental case the Dominican Republic in the case.
The Miami federal court ruled on Nov. 23, 2005, that Mr. Renta pay the
Dominican government US$58.9 million via the Banco Intercontinental
Liquidation Commission. However, it has been over a year since the sentence
yet not even a part of the sum has been paid, Dominican Today notes.
Dominican Today underscores that Mr. Renta allegedly transferred properties
since November 2006 and provided false and evasive answers during the
hearings on his properties and assets.
According to the report, the Baninter Liquidator Commission alleged that Mr.
Renta used three banks in Florida to hide US$34 million.
Mr. Renta told Dominican Today that he has totally cooperated in the search
of the funds to pay the Dominican government.
However, Mr. Renta continues to object Judge Martinez's final ruling. He is
waiting for the result of the appeal on the
Nov. 7, 2005, jury verdict, which found him liable of breaking US laws on
fraudulent transfers and money laundering, Dominican Today states.
Banco Intercontinental aka Baninter collapsed in 2003 as a
result of a massive fraud that drained it of about US$657
million in funds. As a consequence, all of its branches were
closed. The bank's current and savings accounts holders were
transferred to the bank's new owner -- Scotiabank. The
bankruptcy of Baninter was considered the largest in world
history, in relation to the Dominican Republic's Gross Domestic
Product. It cost Dominican taxpayers DOP55 billion and resulted
to the country's worst economic crisis.
BANCO INTERCONTINENTAL: Law Firms Abandon Luis Alvarez Renta
------------------------------------------------------------
Law firms A.J. Barranco and Hogan & Hartson will no longer defend Luis
Alvarez Renta, a Dominican financier who was indicted in the Banco
Intercontinental fraud case, in the legal process against him in Miami,
Dominican Today reports.
According to Dominican Today, A.J. Barranco and Hogan & Hartson field on
Jan. 5 a motion before a judge requesting to withdraw from the case,
claiming that Mr. Renta has not paid them.
Calve Digital relates that Mr. Renta owes A.J. Barranco and Hogan & Hartson
US$400,000.
Dominican Today underscores that the judge denied the request at the start
of a hearing on several motions, including transferences to corporations
where Wadeville is the sole shareholder. The judge ordered A.J. Barranco
and Hogan & Hartson to continue representing Mr. Renta during the hearing
until it would end.
However, A.J. Barranco and Hogan & Hartson told the judge that they would
immediately appeal the decision, saying that under Florida's norms
regulating lawyers' rights, they had ethical issues that prohibited them
from continuing the representation, Dominican Today notes.
Dominican Today emphasizes that the lack of payment is not a reason of
ethics to resign the representation of the client. The judge said that if
were for lack of payment he would deny the motion.
However, A.J. Barranco and Hogan & Hartson insisted that there were problems
of ethics that they could not disclose as it would violate the right to
secrecy between lawyers and a client, Dominican Today says.
According to Dominican Today, the judge then allowed them to discontinue
representing Mr. Renta.
As reported in the Troubled Company Reporter-Latin America on Dec. 20, 2006,
Shook Hardy & Bacon -- which also represented Mr. Renta -- also abandoned
the financier due to lack of payment.
The counsel can be reached at:
A.J. Barranco & Assoc., P.A.
150 W. Flagler Street
Suite 1400
Miami, FL 33130-1537
Phone: (305) 371-8575
Fax: (305) 371-7021
-- and --
Hogan & Hartson
Mellon Financial Center
1111 Brickell Avenue, Suite 1900
Miami, FL 33131
Phone: +1 305 459 6500
Fax: +1 305 459 6550
Banco Intercontinental aka Baninter collapsed in 2003 as a
result of a massive fraud that drained it of about US$657
million in funds. As a consequence, all of its branches were
closed. The bank's current and savings accounts holders were
transferred to the bank's new owner -- Scotiabank. The
bankruptcy of Baninter was considered the largest in world
history, in relation to the Dominican Republic's Gross Domestic
Product. It cost Dominican taxpayers DOP55 billion and resulted
to the country's worst economic crisis.
=============
E C U A D O R
=============
GRAHAM PACKAGING: Closing Plant in North Charleston
---------------------------------------------------
Graham Packaging Co., LP, will close its manufacturing plant in North
Charleston, S.C., effective in mid-February. The plant's 23 employees will
receive severance based on their years of service.
The customer for which automotive lubricant bottles were produced at the
plant has moved its operation. Future production of the bottles will be
transferred to other Graham Packaging sites.
Graham Packaging will now operate with 84 plants worldwide.
Headquartered in York, Pennsylvania, Graham Packaging Co. Inc.
-- http://www.grahampackaging.com/-- designs, manufactures and
sells technology-based, customized blow-molded plastic
containers for the branded food and beverage, household,
personal care/specialty, and automotive lubricants product
categories. The Company currently operates 88 plants worldwide.
In Latin America, the company has operations in Argentina,
Brazil, Ecuador, Mexico and Venezuela. The Blackstone Group of
New York is the majority owner of Graham Packaging.
* * *
As reported in the Troubled Company Reporter on Apr 11, 2006,
Standard & Poor's Ratings Services assigned its 'B' bank loan
rating to Graham Packaging Co.'s proposed incremental US$150
million first-lien term loan B due 2011, based on preliminary
terms and conditions. At the same time, Standard & Poor's
affirmed its ratings, including its 'B' corporate credit rating,
on the plastic packaging producer. The outlook remains
positive.
PETROECUADOR: Negotiating Energy Deal with Venezuela State Oil
--------------------------------------------------------------
Petroecuador, the state-owned oil firm of Ecuador, will negotiate an energy
deal with Petroleos de Venezuela SA, its Venezuelan counterpart, Agencia
Bolivariana de Noticias, the state news agency of Venezuela, reports.
Business News Americas relates that the deal would let Ecuador secure oil
derivatives -- mainly gasoline -- at reduced prices from Venezuela. Because
of this, Ecuador would be able to save US$60 million yearly.
According to BNamericas, Petroleos de Venezuela has been negotiating to
refine Ecuador's crude in Venezuela.
Petroecuador executive president Galo Chiriboga told Agencia Bolivariana,
"The negotiations are complex and this time will last some time."
Ecuador could have 100,000 barrels daily of crude refined in Venezuela.
Ecuador would be paid in kind, particularly in diesel and other liquid fuels
it has to import due to a lack of refining capacity, BNamericas says, citing
Petroleos de Venezuela.
Meanwhile, Petroecuador has sought Petroleos de Venezuela's aid in improving
the capacity of its oldest plant La Libertad, BNamericas states.
About Petroleos de Venezuela
Petroleos de Venezuela SA is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and
coal industry, as well as planning, coordinating, supervising
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
About Petroecuador
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
PETROLEOS DE VENEZUELA: Negotiating Energy Pact with Ecuador
------------------------------------------------------------
Petroleos de Venezuela SA, the state-owned oil company of Venezuela, will
negotiate an energy deal with Petroecuador, its Ecuadorean counterpart,
Agencia Bolivariana de Noticias, the state news agency of Venezuela,
reports.
Business News Americas relates that the deal would let Ecuador secure oil
derivatives -- mainly gasoline -- at reduced prices from Venezuela. Because
of this, Ecuador would be able to save US$60 million yearly.
According to BNamericas, Petroleos de Venezuela has been negotiating to
refine Ecuador's crude in Venezuela.
Petroecuador executive president Galo Chiriboga told Agencia Bolivariana,
"The negotiations are complex and this time will last some time."
Ecuador could have 100,000 barrels daily of crude refined in Venezuela.
Ecuador would be paid in kind, particularly in diesel and other liquid fuels
it has to import due to a lack of refining capacity, BNamericas says, citing
Petroleos de Venezuela.
Meanwhile, Petroecuador has sought Petroleos de Venezuela's aid in improving
the capacity of its oldest plant La Libertad, BNamericas states.
About Petroecuador
Petroecuador, according to published reports, is faced with
cash-problems. The state-oil firm has no funds for maintenance,
has no funds to repair pumps in diesel, gasoline and natural gas
refineries, and has no capacity to pay suppliers and vendors.
The government refused to give the much-needed cash alleging
inefficiency and non-transparency in Petroecuador's dealings.
About Petroleos de Venezuela
Petroleos de Venezuela SA is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical and
coal industry, as well as planning, coordinating, supervising
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
* * *
Standard & Poor's Ratings Services revised the CreditWatch
implications on its 'B+' long-term foreign currency corporate
credit rating on Petroleos de Venezuela SA to positive from
developing.
The revision of the CreditWatch status on Petroleos de Venezuela
reflects S&P's expectations that downgrade risk has receded, and
the issuer credit rating will either be raised and equalized
with the rating on Petroleos de Venezuela's owner, the
Bolivarian Republic of Venezuela (BB-/Positive/B), or affirmed
at 'B+'.
=================
G U A T E M A L A
=================
BRITISH AIRWAYS: Agrees to Trade Unions' Pension Scheme Proposal
----------------------------------------------------------------
British Airways welcomed the decision by its trade unions in the BA Forum to
recommend changes to its New Airways Pension Scheme -- NAPS, which has a
GBP2.1 billion deficit.
The British Airways Forum represents the airline's four unions and is
recommending acceptance of the proposal and will now consult with members
formally.
The company has agreed to make a one off contribution of
GBP800 million into the fund subject to acceptance of benefit changes.
Together with a one-off employee saving of
GBP400 million and changes to future benefits, the NAPS pension deficit will
be reduced by more than half from an existing GBP2.1 billion to GBP0.9
billion and the company's annual contributions will be around GBP280 million
a year for the next ten years.
British Airways' chief executive, Willie Walsh, said: "This is great news.
Together with the NAPS Trustees and staff, we have found a shared solution
that helps secure the pensions of our 33,500 NAPS members and removes a
major blocker to future investment in British Airways. This brings the NAPS
deficit and ongoing contributions to a level which is affordable by British
Airways and effectively tackles one of the most fundamental issues we face."
A funding plan to clear the NAPS deficit over 10 years was agreed with the
pension scheme trustees in 2006, subject to members accepting changes to
future benefits.
Under the proposals there will be a normal retirement age of 65 with a
contribution rate of 5.25 percent and the ability for employees to pay a
higher pension contribution rate of 8.5 percent to retire at 60. Staff can
still choose to retire earlier than the normal retirement age but with a
reduced pension.
There will also be a normal retirement age of 55 with a contribution rate of
9 percent on top of the cost of retiring at 60. This option is available to
all staff.
Future pensionable pay rises will be capped to inflation and pension growth
in retirement remains at five percent.
The company will make a one-off contribution of GBP800 million and up to
GBP150 million more in contributions over the next three years subject to
financial targets.
Together with the one-off employee saving of GBP400 million and changes to
future benefits, the GBP2.1 billion deficit will be more than halved to
GBP0.9 billion.
The airline's annual contributions for the next ten years of GBP280 million,
up from GBP272 million in November last year, will clear the remaining
deficit. The GBP8-million increase represents the cost of improved
contributions and keeping LPI at five percent.
The NAPS trustees approved the funding plan to clear the deficit last year.
About British Airways
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited. BA has offices in India and Guatemala.
* * *
British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.
BRITISH AIRWAYS: Traffic Figures Slide in December 2006
-------------------------------------------------------
British Airways disclosed its traffic and capacity statistics for December
2006.
In December 2006, passenger capacity, measured in Available Seat Kilometers,
was 0.1% below December 2005. Traffic, measured in
Revenue-Passenger-Kilometers, was lower by 0.5%. This resulted in a
passenger load factor down 0.3 points versus last year, to 73.9%. The
decrease in traffic comprised a 2.8% increase in premium traffic and a 1%
decrease in non-premium traffic. Cargo, measured in Cargo-Ton-Kilometers,
decreased by 11.6%. Severe fog conditions in the run up to Christmas led to
the cancellation of more than 800 flights, affecting European and domestic
services. Overall load factor fell by 0.6 points to 70.5%.
For the September to December quarter, ASKs rose by 0.5%, with RPKs flat.
This resulted in passenger load factor down 0.4 points, to 73.7%. This
comprised a 2.8% increase in premium traffic and a 0.6% increase in
non-premium traffic. CTKs fell by 9%.
Underlying market conditions are broadly unchanged.
Strategic Developments
The airline launched a new five times a week service From Heathrow to
Calgary and a new five times a week service from Gatwick to Salzburg.
The T&G's cabin crew branch is balloting its members on industrial action.
The company has been in talks for some time with the T&G and Amicus on
changes to work practices that would contribute toward the airline's drive
to achieve a
GBP450-million reduction in costs by March 2008. Talks continue.
In response to the Government's announcement of a 100% increase in Air
Passenger Duty, the airline called for tax reform and said at least GBP87
million should be ring-fenced for spending on emissions-reducing renewable
energy projects in the developing world, thereby offsetting all the
airline's emissions.
The New Year flight sale featured discounts on 4.5 million seats to 140
destinations worldwide.
Avis and Vanguard have been selected as the airline's worldwide car rental
partners.
About British Airways
Headquartered in West Drayton, United Kingdom, British Airways
Plc -- http://www.ba.com/-- operates of international and
domestic scheduled and charter air services for the carriage of
passengers, freight and mail, and provides of ancillary
services. The British Airways group consists of British Airways
Plc and a number of subsidiary companies including in particular
British Airways Holidays Limited and British Airways Travel
Shops Limited. BA has offices in India and Guatemala.
* * *
British Airways' 7-1/4% senior unsubordinated notes due 2016 and
10-7/8% notes due 2008 carry Moody's Investors Service's Ba2
ratings and Standard & Poor's BB- ratings.
=========
H A I T I
=========
DIGICEL LTD: Achieved Over 100% Subscriber Growth in 2006
---------------------------------------------------------
Digicel Ltd. disclosed that the number of its subscribers grew more than
100% last year.
Achieving record growth in 2006, Digicel ended the year with a total
investment in the Caribbean region exceeding US$1.5 billion, operations in
22 markets and more than 4.0 million customers, representing subscriber
growth in excess of 100%. In Haiti alone, where Digicel launched in May
2006, the company reached a milestone of one million customers after just
eight months of operation.
"Digicel's progress in 2006 reinforced our position as the largest GSM
provider in the Caribbean region, with sustained growth in our existing
markets and unrivaled growth through our entrance into new markets, such as
Haiti, Trinidad & Tobago, Guyana and El Salvador," said Digicel Group Chief
Executive Officer Colm Delves.
Digicel achieved a number of key milestones in 2006. These include:
-- New Mobile Markets:
Since launching Haiti operations in May 2006,
Digicel rapidly gained market share reaching one
million customers by year-end. In Haiti, a country
with a population of 8.5 million and combined fixed
and cellular penetration of 5.7%, Digicel brought
an unprecedented investment of US$260 million to
the developing nation, which is the largest
investment ever made in the country by an
international company. Digicel also launched new
telecommunications services in additional markets,
including Trinidad & Tobago, Turks & Caicos and
Bonaire;
-- Strategic Acquisitions:
In October 2006, Digicel acquired El Salvador
mobile operator Digicel Holdings Ltd., marking the
company's first entry into the burgeoning Central
American mobile telecommunications market. In
November 2006, Digicel acquired U Mobile in Guyana
and has plans to re-brand that business later this
year. In the first half of 2006, Digicel acquired
Bouygues Telecom Caraibe, which extended the
company's mobile operations to Martinique,
Guadeloupe and French Guiana;
-- Technical Innovation:
Digicel continued to significantly expand its
product portfolio and customer offerings,
introducing many first to market innovations like
Credit Me/Credit U, International Call Me, Pre-paid
And Post-paid Dual Accounts, CaribFlex (allowing
credit to be added to Digicel phones from the UK),
Push-to-Talk, as well as introducing new BlackBerry
devices and the cutting-edge BlackBerry Connect.
The rollout of Digicel's WiMAX technology brought
the service to new regions;
-- Employees:
In response to the company's rapid growth in the
Caribbean, Bermuda, and South and Central America,
Digicel reached a 3,000-employee milestone and
introduced the one-of-its-kind company-wide
employee share option program, designed to reward
each Digicel employee for his or her outstanding
contributions to the company's business success;
and
-- Capital Markets and Bond Offering:
Digicel closed a US$150 million bond offering in
August 2006 to fuel strategic growth opportunities
in Haiti and Trinidad & Tobago. Led by investment
banks Citigroup and J.P. Morgan, the bond financing
represented strong investor confidence in the
company's continued expansion efforts in both
countries.
Mr. Delves notes, "2006 had several major achievements and milestones for
Digicel. We look forward to 2007 and continuing our ambitious growth in key
target markets."
Since it launched in 2001, just over five and a half years ago, Digicel now
records an average annual compound growth rate of an extraordinary 1432%.
From January 2006 to September 2006, Digicel grew its number of operations
to a total of 22 markets covering a population of more than 23 million, and
grew its active subscriber base by more than 100%. The company's
measurement is based on a highly conservative approach of a subscriber only
being defined as "active" if that subscriber had a chargeable event in the
last 30 days.
Digicel Ltd. is a wireless services provider in the Caribbean
region founded in 2000, and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in Caribbean countries including
Jamaica, St. Lucia, St. Vincent, Aruba, Grenada, Barbados,
Bermuda, Cayman, and Curacao among others. Digicel finished
FY2005 with 1.722 million total subscribers -- 97% pre-paid --
estimated market share of 67% and revenues and EBITDA of US$478
million and US$155 million, respectively.
* * *
On July 12, 2006, Moody's Investors Service assigned a B3 senior
unsecured rating to the US$150 million add-on Notes offering of
Digicel Ltd. and affirmed Digicel's existing B3 senior unsecured
and B1 Corporate Family Ratings. Moody's changed the outlook to
stable from positive.
* * *
Fitch Ratings assigned on July 14, 2006, a 'B' rating to Digicel
Ltd's proposed add-on offering of US$150 million 9.25% senior
notes due 2012. These notes are an extension of the US$300
million notes issued in July 2005. In addition, Fitch also
affirms Digicel's foreign currency Issuer Default Rating and the
existing US$300 million senior notes due 2012 at 'B'. Fitch
said the rating outlook is stable.
===========
M E X I C O
===========
ADVANCED MARKETING: Gets Interim Okay on Wells Fargo Financing
--------------------------------------------------------------
The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the
District of Delaware, at a hearing on Jan. 3, 2007, authorized Advanced
Marketing Services, Inc., and its debtor-affiliates, on an interim basis, to
dip their hands into the DIP financing facility arranged by Wells Fargo
Foothill.
The Debtors sought the Court's authority to obtain from Foothill and the
Senior Lenders, though the DIP Loan Facility, cash advances and other
extensions of credit in an aggregate principal amount of up to
US$75,000,000.
Judge Sontchi held that the Debtors do not have sufficient
available sources of working capital to operate its business in
the ordinary course of business with the postpetition financing.
According to Judge Sontchi, the Debtors' ability to maintain
business relationships with its vendors, suppliers, and
customers, to pay its employees, and to otherwise fund its
operations, is essential to the Debtors' continued viability.
Judge Sontchi rules that the DIP Lenders have the right to use
the DIP Obligations to credit bid with respect to any bulk or
individual sale of all or any portion of the Debtors' assets
securing the loan.
The Debtors are prohibited from obtaining postpetition loans or
other financial accommodations other than from the DIP Lenders
unless their DIP Obligations have been indefeasibly paid in full.
Loan and Security Agreement
The Debtors are borrowers under a Loan and Security Agreement dated April
27, 2004, with Wells Fargo Foothill, Inc., as agent, and a consortium of
lenders. The Senior Facility provides for a revolving line of credit up to
a maximum commitment level of US$90,000,000.
Curtis R. Smith, AMS's vice-president and chief financial
officer, relates that the Senior Lenders have agreed to continue
to provide liquidity to the Debtors through a DIP Loan Facility,
which carries forward many of the terms of the Senior Facility.
Absent immediate and continued availability of credit, the
Debtors' operations will be severely disrupted, and they will be
forced to cease or sharply curtail operations of some or all of
their businesses, which in turn will eliminate the Debtors'
ability to generate operating revenue and the value of their
businesses as a going concern, Mr. Smith says.
Before agreeing to enter into the DIP Loan Facility with Foothill and the
Senior Lenders, the Debtors engaged in numerous
discussions concerning secured and unsecured financing, as well
as equity or other infusions, with several potential investors.
Yet, they received only one proposal for debtor-in-possession
financing other than that offered by the Senior Lenders. Upon
evaluation, the Debtors determined that the alternate proposal
was not viable.
"No other prospective lender was willing to provide debtor in
possession financing without at least the type of protections
afforded Senior Lenders under the DIP Loan Facility," Mr. Smith
relates.
Terms of the DIP Facility
The DIP Facility provides, among other things, that each Lender
with a Revolver Commitment agrees to make Advances to the Debtors at any one
time in amounts not exceeding the Lender's Pro Rata Share of an amount equal
to the lesser of (i) the Maximum Revolver Amount -- presently set at
US$75,000,000 -- less the Letter of Credit Usage, or (ii) the Borrowing Base
less the Letter of Credit Usage.
Lender Revolver Commitment
------ -------------------
Wells Fargo Foothill, Inc. US$37,500,000
LaSalle Business Credit, LLC 16,500,000
Marathon Structured Finance Fund, L.P. 8,250,000
Capitalsource Finance LLC 12,750,000
The Issuing Lender agrees to issue Letters of Credit for the
account of the Borrowers or to purchase or execute an L/C
Undertaking with respect to letters of credit issued by an
Underlying Issuer for the account of the Borrowers. The Issuing
Lender will have no obligation to issue an L/C if any of these
events would result after giving effect to the issuance of the
requested L/C:
(1) the L/C Usage would exceed the Borrowing Base less the
outstanding amount of Advances; or
(2) the L/C Usage would exceed US$10,000,000; or
(3) the L/C Usage would exceed the Maximum Revolver Amount
less the outstanding amount of Advances.
The Borrowing Base under the DIP Loan Agreement determines the
maximum amount that may be borrowed as Advances. It is a
function of inventory and account values ranging up to 85% of
appraised liquidation values and is subject to various reserves,
including a Dilution Reserve in an amount sufficient to reduce
the advance rate against Eligible Accounts by 1 percentage point
for each percentage point by which Dilution is in excess of 5%.
The interest rate on all Obligations will be calculated based on
Wells Fargo Bank, National Association's prime rate plus 3.50%.
The DIP Agreement was scheduled to close by Jan. 4, 2007. The postpetition
facility will continue in full force and effect for
a term ending in July 2007. The Lender Group, upon the election
of the Required Lenders, will have the right to terminate its
obligations under the DIP Loan Agreement immediately and without
notice on the occurrence and during the continuation of an Event
of Default.
The proceeds of the Advances may be used (1) on the Closing Date, to pay
transactional fees, costs, and expenses incurred in
connection with the DIP Loan Agreement, the other Loan Documents, and
contemplated transactions including the funding in whole or in part of the
Carve Out Reserve Fund, and (ii) for the Debtors' lawful and permitted
business and general corporate purposes including the financing of working
capital needs and capital expenditures, in accordance with the Debtors'
14-week Budget related to the DIP Loan Facility.
The Budget runs through March 30, 2007, and sets forth the
expenditures that the Debtors critically need to make to allow
them to continue to operate.
The Borrowers agree to pay a variety of fees and charges to
Foothill:
-- a Letter of Credit fee accruing at 3.50% per annum times
the Daily Balance of the undrawn amount of all outstanding
L/C;
-- on the first day of an each month, an Unused Line Fee
equal to 0.375% per annum times the result of (a) the
Maximum Revolver Amount, less (b) the sum of (1) the
average Daily Balance of Advances that were outstanding
during the immediately preceding month, plus (2) the
average Daily Balance of the L/C Usage during the
immediately preceding month;
-- a US$750,000 closing fee, which will be fully earned, due,
and payable on the Closing Date;
-- a US$5,000 servicing fee per quarter, due and payable, in
arrears, on the first day of each quarter, commencing with
the first day of the quarter immediately following the
Petition Date; and
-- certain audit, appraisal and valuation fees and charges
relating to audits and appraisals performed by personnel
employed by Foothill.
The postpetition obligations due the Lenders by the Debtors will
be entitled to the super-administrative priority afforded under
Section 364(c)(1) of the Bankruptcy Code.
The Lenders' liens and administrative claims will be subject to a carve out
for (i) the fees payable to the Clerk of the Bankruptcy Court and to the
Office of the United States Trustee relating to the Bankruptcy Cases; and
(ii) Professional Fee Carve Out Expenses of US$2,000,000 prior to a Payoff
Event and US$3,000,000 afterwards.
Moreover, the Debtors covenant that they will not:
(a) on any measurement date where the Projected Operating
Cash Flow is a positive amount, have Actual Operating
Cash Flow for the relevant period that is both less than
85% of the Projected Operating Cash Flow, and at least
US$2,500,000 less than Projected Operating Cash Flow, for
the period; or
(b) on any measurement date where the Projected Operating
Cash Flow is a negative amount, have Actual Operating
Cash Flow for the relevant period that is both less than
115% of the Projected Operating Cash Flow, and at least
US$2,500,000 less than the Projected Operating Cash Flow,
for the period.
Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in
Wilmington, Delaware, clarifies that the terms and covenants set
forth in the Senior Facility are amended and restated in their
entirety by the terms and conditions set forth in the DIP Loan
Agreement. However, the DIP Loan Agreement does not extinguish
the obligations for the payment of money outstanding under the
Senior Facility, or for the discharge or release of any security. Rather,
the DIP Loan Agreement provides for the satisfaction of the prepetition
obligations owed to the Senior Lenders through application of Cash
Collateral postpetition -- a "roll-up" of the prepetition debt.
The Roll-up provision provides that each Senior Lender is
entitled to apply any and all proceeds of the Collateral or the
Senior Collateral or any other consideration it received in
respect of the Senior Obligations in accordance with the Senior
Facility and the Loan Documents, which includes the application
of Senior Collateral -- first, on account of the Senior
Obligations until the Senior Obligations are paid and satisfied,
and then on account of the Postpetition Obligations.
Furthermore, all outstanding L/C under the Senior Facility are
deemed to be L/C and Obligations under the DIP Credit Agreement.
Mr. Collins says the Debtors have determined that this provision
is appropriate given that the Senior Lenders are substantially
over-secured.
Qualified Transaction Timeline
The Debtors agree with the DIP Lenders to file within 10 days
after the Petition Date a qualified transaction motion calling
for the sale of substantially all or a significant portion of
their business, or a refinancing or debt or equity investment or
other recapitalization.
Within 20 days after the filing of the Qualified Transaction
Motion, the Debtors will attempt to obtain approval of
competitive bidding procedures and to identify a "stalking horse" bidder in
the event they pursue a sale.
The DIP Lenders want the Qualified Transaction Motion approved
within 45 days after the filing. They also want to receive cash
proceeds from the Qualified Transaction within 50 days.
Mr. Collins says the Debtors believe that the Qualified
Transaction provisions are reasonable given the overall benefits
of the DIP Facility, and given that the Senior Lenders were
unwilling to extend financing without those provisions.
Foothill is represented in the Debtors' cases by Paul S. Arrow,
Esq., and William S. Brody, Esq., at Buchalter Nemer, in Los
Angeles, California, and Kurt F. Gwynne, Esq., at Reed Smith,
LLP, in Wilmington, Delaware.
Judge Sontchi will convene a hearing to consider approval of the
Debtors' request on a final basis on January 24, 2007, at 10:00
a.m. Objections, if any, are due January 22.
About Advanced Marketing
Based in San Diego, California, Advanced Marketing Services, Inc. --
http://www.advmkt.com/-- provides customized merchandising, wholesaling,
distribution and publishing services, currently primarily to the book
industry. The company has operations in the U.S., Mexico, the United
Kingdom and Australia and employs approximately 1,200 people Worldwide.
The company and its two affiliates, Publishers Group Incorporated and
Publishers Group West Incorporated filed for chapter 11 protection on Dec.
29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S.
Uhland, Esq., Austin K. Barron, Esq., and Alexandra B. Feldman, Esq., at
O'Melveny & Myers, LLP, represent the Debtors. Chun I. Jang, Esq., Mark D.
Collins, Esq., Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A.,
are the Debtors' local counsel. When the Debtors filed for protection from
their creditors, they listed estimated assets and debts of more than US$100
million. The Debtors' exclusive period to file a chapter 11 plan expires on
Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue No. 1; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
AUTOPISTA DEL MAYAB: Moody's May Up Global Currency Ratings
-----------------------------------------------------------Moody's Investors
Service placed the ratings of Autopista del Mayab on review for possible
upgrade. The rating action reflects the strong recovery in the toll road
project's annual traffic and cash flow following a sharp downturn caused by
hurricane Wilma, which flooded part of the road and devastated the city of
Cancun on October 21-23, 2005. Ratings affected include the project's
global local currency ratings of Ba1 and Ba2 for Series A and B CPOs,
respectively, as well as the project's national scale ratings of Aa3.mx and
A1.mx for Series A and B, respectively.
Autopista del Mayab is a critical transport link connecting the cities of
Cancun and Merida, which are located in the states of Quintana Roo and
Yucatan, respectively. The road is the primary supply route for Cancun and
also benefits from tourist traffic visiting the Mayan ruins of Chichen Itza.
Although the re-building of Cancun took longer than originally expected,
with most of the high-end hotels re-opening in mid-summer to late autumn
instead of late spring as originally forecast, the region has made a strong
recovery and major tourist attractions, such as the damaged beach zone have
been fully restored. Initial reports indicate that the main tourist
destinations, Cancun and the Riviera Maya, fulfilled their occupancy
expectations during the year-end holiday period. According to data
published by the state Tourism Secretariat, Cancun reported an average
occupancy of 95%, with approximately 25,000 out of 28,000 hotel rooms
rebuilt.
Moody's review will focus on Autopista del Mayab's prospects for 2007 and
beyond, as well as its ability to withstand the financial impact of
hurricanes on a similar scale as hurricane Wilma.
Headquartered in Merida, Yucatan, Autopista del Mayab is a 241.345 km toll
road linking the cities of Cancun and Merida. The road is owned by
Consorcio del Mayab, SA de CV, whose principal members include Canteras
Peninsulares, SA de CV, Constructora Mool, SA de CV, Asesoria Proser, SA de
CV and CL Construcciones, SRL de CV.
DIRECTV GROUP: EchoStar Comms. Not Ruling Out Possible Merger
-------------------------------------------------------------
EchoStar Communications Corp. will wait until Liberty Media Corp. takes
control of DirecTV Group Inc. before it pursues its own DirecTV merger
plans, Reuters reports. Charlie Ergen, EchoStar's CEO, said during a Las
Vegas trade conference that EchoStar is not ruling out a possible merger
with DirecTV.
Liberty Media disclosed in December that it has entered into a definitive
agreement with News Corporation to exchange Liberty's 16.3% stake in News
for News's 38.5% stake in DirecTV, regional sports networks in Denver,
Pittsburgh, and Seattle, and cash.
Under the agreement, pursuant to Section 355 of the IRC, Liberty will
transfer to News 188,000,000 NWS shares and 324,637,067 NWS.A shares, and
News will transfer to Liberty the stock of a subsidiary that holds
470,420,752 shares of DirecTV common stock, the Fox Sports Rocky Mountain,
Northwest and Pittsburgh regional sports networks, and US$550 million in
cash.
The transaction, which was unanimously approved by the boards of News and
Liberty, is expected to close in mid-2007, and is subject to regulatory and
News Corp shareholder approvals and the receipt of a private letter ruling
from the Internal Revenue Service.
It is expected that Chase Carey will continue to serve as DirecTV's
President and CEO, and Liberty will appoint directors to fill the board
seats currently held by News representatives.
About EchoStar
EchoStar Communications Corp. (Nasdaq: DISH) --
http://www.dishnetwork.com/-- provides advanced digital television
services. The company serves more than 12.46 million satellite TV customers
through its DISH Network(TM). Services offered include hundreds of video
and audio channels, Interactive TV, HDTV, sports and international
programming, together with professional installation and 24-hour customer
service.
About DirecTV
Headquartered in El Segundo, California, The DirecTV Group, Inc. (NYSE:
DTV) -- http://www.directv.com/-- provides direct broadcast satellite
service to more than 15 million customers in the US and more than 1.5
million customers through its DirecTV Latin America segment.
* * *
The DIRECTV Group Inc.'s long-term local and foreign issuer credits carry
Standard & Poor's BB ratings. The ratings were placed on Aug. 9, 2004 with
a stable outlook.
GREENBRIER COS: Declares Quarterly Dividend of US$.08 Per Share
---------------------------------------------------------------
The Greenbrier Co. disclosed a quarterly cash dividend of US$.08 per share,
payable on Feb. 14, 2007, to stockholders of record as of Jan. 24, 2007.
Headquartered in Lake Oswego, Ore., The Greenbrier Cos. --
http://www.gbrx.com/-- supplies transportation equipment and
services to the railroad industry. The Company builds new
railroad freight cars in its manufacturing facilities in the US,
Canada, and Mexico and marine barges at its U.S. facility. It
also repairs and refurbishes freight cars and provides wheels
and railcar parts at 30 locations (post Meridian acquisition)
across North America. Greenbrier builds new railroad freight
cars and refurbishes freight cars for the European market
through both its operations in Poland and various subcontractor
facilities throughout Europe. Greenbrier owns approximately
9,000 railcars, and performs management services for
approximately 136,000 railcars.
* * *
As reported in the Troubled Company Reporter on May 18, 2006,
Standard & Poor's Ratings Services assigned its 'B+' rating to
The Greenbrier Companies Inc.'s proposed US$85 million
convertible note offering, which will mature in 2026. At the
same time, Standard & Poor's affirmed its ratings on the Lake
Oswego, Oregon-based railcar manufacturer, including its 'BB-'
corporate credit rating. S&P said the outlook is stable.
GRUPO TMM: Acquires Almacenadora de Deposito for US$9.0 Million
---------------------------------------------------------------
Grupo TMM, SA, has acquired Almacenadora de Deposito Moderno SA de CV, the
fourth largest warehousing system in Mexico, for a combination of cash and
debt of US$9.0 million. With successful earn outs and other incentives in
place the approximate total purchase price could be US$13.0 million in a
combination of cash and debt. Grupo TMM expects this acquisition to
contribute at least US$2.9 million in EBITDA during its first year of
operation and US$15.0 million in revenues.
Grupo TMM President Javier Segovia said, "The acquisition of this warehouse
company will produce a continued revenue growth in the Logistics division as
all types of synergies are created with our existing customer base, and
moreover, customers will be given one more component to help them in their
total supply chain distribution needs."
Headquartered in Mexico City, Grupo TMM SA (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 SA 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.
GRUPO IMSA: S&P Lowers Long-Term Corporate Credit Rating to BB+
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate credit
rating on Grupo Imsa SAB de CV to 'BB+' from 'BBB' and removed it from
CreditWatch, where it was placed with negative implications on Oct. 2, 2006.
The outlook is stable.
"The downgrade reflects Grupo Imsa's financial profile deterioration due to
the increased leverage to more than US$1.5 billion after the acquisition of
47% of Grupo Imsa's capital stock by the Canales Clariond Family," said
Standard & Poor's credit analyst Juan Pablo Becerra. Additionally, it
reflects the elevated capital expenditure program during the next three
years and a somewhat aggressive maturity schedule of its new debt.
Before the transaction, Standard and Poor's were expecting interest coverage
and total debt-to-EBITDA ratios around 18.0x and 0.4x, respectively, which
compares negative with the 2.7x and 6.0x pro forma ratio, respectively, by
year-end 2006.
The rating on Grupo Imsa reflects an aggressive financial risk profile,
particularly its financial policy, its high capital expenditure program for
the next years, the highly cyclical steel industry, its limited product
diversification, and its high supplier concentration. The ratings also take
into consideration the company's geographic diversification,
state-of-the-art production technology, above average operating efficiency,
and leading market position in Mexico.
On Oct. 2, 2006, Triada, a company 100% owned by the Canales Clariond
family, acquired the 42.5% ownership from the Clariond Reyes Family. On
Oct. 31, 2006, Grupo Imsa held a General Extraordinary Assembly that merged
Triada and Grupo Imsa.
After this merger the Canales Clariond Family owned approximately 86% of
Grupo Imsa, and Grupo Imsa's total debt increased to US$1.5 billion from
US$257 million as of
Sept. 30, 2006. Although Standars and Poor's believe that Grupo Imsa will
be able to reduce its debt by US$500 million by year-end 2009, It expects
the total debt-to-EBITDA ratio to remain around 2.0x.
The stable outlook reflects our expectation that Grupo Imsa will be able to
maintain its strong business position in both Mexico and the U.S., as well
as increase its capacity to maintain its strong growth rate. Additionally,
we do not believe the company will make any acquisition in the next three
years.
The rating could be raised if the company's total-debt-to-EBITDA ratio is
reduced and maintained below 1.8x, and strengthens its business risk profile
by increasing geographic and product diversification. On the other hand,
the rating could be lowered if the company's operation profitability
decreased, and the debt-to-EBITDA ratio exceeds 3.5x.
SBARRO INC: S&P Raises Corporate Credit Rating to B-
----------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit rating on
Melville, New York-based Sbarro Inc. to 'B-' from 'CCC+'.
Concurrently, all ratings were removed from CreditWatch, where they were
placed with developing implications after the report
that the company is being acquired by private equity investors.
The outlook is stable.
At the same time, Standard & Poor's assigned a 'B' rating to Sbarro Inc.'s
US$25 million secured revolver due 2013 and
US$150 million first-lien term loan due 2014. This and the recovery rating
of '1' indicate that lenders can expect full recovery of principal in the
event of payment default.
Standard & Poor's also assigned a 'CCC' rating to the proposed US$150
million senior unsecured notes due 2015, which will be issued under rule
144a with registration rights. The notes are rated two notches lower than
the corporate credit rating due to
their structural subordination to the credit facility.
"The upgrade is the result of Sbarro's improved operating performance over
the past three years, and Standard & Poor's expectation that the company can
maintain its current level of performance," said Standard & Poor's credit
analyst Diane Shand.
WERNER LADDER: Court Allows ACE Insurance Program Implementation
----------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District
of Delaware authorized Werner Holding Co. (DE) Inc. aka Werner Ladder
Company and its debtor-affiliates to implement the insurance program
proposed by ACE American Insurance Company and its affiliated companies.
Additionally, Judge Carey authorized ACE to use and apply all proceeds of
the collateral and payments or cancel the ACE Policies, without further
Court order. However, ACE will comply with all notice provisions in the ACE
Insurance Program, and will provide copies of all notices to the Official
Committee of Unsecured Creditors.
The Debtors maintain commercial general liability, automobile liability, and
workers compensation insurance coverage with Travelers Property Casualty Co.
of America. Travelers' insurance service to the Debtors expired on Jan. 1,
2007.
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in
Wilmington, Delaware, relates that the Debtors have solicited proposals from
numerous insurers through Marsh USA Inc., to provide casualty insurance
coverage from Jan. 1, 2007, to Jan. 1, 2008.
Subsequently, the Debtors received a proposal from ACE American to issue
insurance policies for general premises liability, automobile liability, and
workers compensation as part of a comprehensive casualty insurance program.
The proposal is subject to the ACE policies.
Mr. Brady states that the workers compensation policies have per
accident deductible, which is lower than the Debtors' historical
coverage. Payments made by the Debtors toward the deductible
reduce a US$4,000,000 aggregate attachment after which ACE agrees to cover
the next US$2,000,000 in deductible payments.
Mr. Brady says the automobile liability and the general premises
liability policies do not have a deductible. However, he
explains, the automobile liability coverage is subject to a per
accident policy limit, and the general premises liability
coverage is subject to various aggregate policy limits, says Mr.
Brady.
Payment and Collateral Agreement
As part of the ACE Proposal, the Debtors will make payments and
reimbursements to ACE, including:
(a) premiums, surcharges and other fixed expenses aggregating
US$435,000, payable in advance of, and as a condition
precedent for, inception of the ACE Policies;
(b) premiums and surcharges billed after inception of the ACE
Policies in accordance with the terms of any of the ACE
Policies or any notice of election;
(c) funding for losses ACE pays under the ACE Policies and
expenses allocated to losses within the Debtors'
insurance deductible; and
(d) related claim service fees based on the actual number and
type of claims; and
(e) certain paid losses.
As security for the Debtors' payment obligations under the
Payment and Collateral Agreement, the Debtors will provide ACE:
(i) a US$1,490,000 letter of credit issued by a bank or other
financial institution for ACE's benefit; and
(ii) a US$42,500 funding for a paid loss deposit fund,
representing the estimated paid losses and related
expenses within the Debtors' insurance deductible
during a 75-day period.
ACE may adjust the L/C and the Paid Loss Deposit Fund amounts up
or down based on the Debtors' obligations and estimated payouts
under the ACE Policies. ACE will also have an administrative
expense claim for all payment and reimbursement obligations under the ACE
Insurance Program.
The Debtors will issue the L/C in accordance with the Court-
approved terms of a Superpriority Debtor-In-Possession Credit and Guaranty
Agreement, dated June 14, 2006.
Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc. aka Werner
Ladder Co. -- http://www.wernerladder.com/-- manufactures and distributes
ladders, climbing equipment and ladder accessories. The company and three
of its affiliates filed for chapter 11 protection on June 12, 2006 (Bankr.
D. Del. Case No. 06-10578). The firm of Willkie Farr & Gallagher LLP serves
as the Debtors' counsel. Kara Hammond Coyle, Esq., Matthew Barry Lunn,
Esq., and Robert S. Brady, Esq., Young, Conaway, Stargatt & Taylor, LLP,
represents the Debtors as its co-counsel. The Debtors have retained
Rothschild Inc. as their financial advisor. Greenberg Traurig LLP is
counsel to the Official Committee of Unsecured Creditors. Jefferies & Co
serves as the Committee's financial advisor. At March 31, 2006, the Debtors
reported total assets of US$201,042,000 and total debts of US$473,447,000.
The Debtors's exclusive period to file a plan expires on Jan. 15, 2007.
(Werner Ladder Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service,
Inc., 215/945-7000, http://bankrupt.com/newsstand/)
WERNER LADDER: Can Assume 17 Warehouse Leases Effective Jan. 3
--------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware gave Werner Holding
Co. Inc. aka Werner Ladder Company and its debtor-affiliates authority to
assume these non-residential real property leases effective as of Jan. 3,
2007:
Location of Premises Landlord Monthly Rent Cure Amount
2990 Niagara Lane AMN Property, US$8,711 US$0
Plymouth, Minnesota L.P.
Commerce Center 1 Brookhollow 4,275 0
Dallas, Texas Commerce Center
3365 Rauch Street First Industrial 7,204 8,086
Houston, Texas Texas, L.P.
Alameda Ave., Suite C F-Star Socorro 74,729 0
Socorro, Texas
300 Gap Way Corporate Property 86,368 0
Erlanger, Kentucky
Cheli Distribution Cheli Distribution 21,116 557
Bell, California Center, Inc.
The Court directed the Debtors to pay the cure amounts until Jan. 10, 2007.
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in
Wilmington, Delaware, relates that the Debtors operate a
complex and integrated network for distribution of their
products. Specifically, the Debtors currently operate
manufacturing facilities in Chicago, Illinois; Merced,
California; and Juarez, Mexico. The Debtors also import
manufactured products from Asia primarily through a port located
in Long Beach, California.
Mr. Brady states that the Debtors ship their products from the
Plants and the Port to one of their four distribution centers,
wherein the products are either:
(i) shipped directly to customers who generally purchase
products in sufficient quantities for truckload
shipments; or
(ii) shipped to one of 20 regional warehouses throughout the
United States for subsequent sale to customers purchasing
products in smaller quantities.
In addition, certain customers pick up their products from either the
Distribution Centers or the warehouses, Mr. Brady notes. The Debtors
operate eight of the regional warehouses, while non-debtor third parties
operate the remaining 12 warehouses.
Mr. Brady tells the Court that the total costs for operating the
Distribution Network, including freight costs for shipping the Debtors'
products to customers using third party carriers, exceed US$50,000,000 per
year.
The Debtors have reviewed their operations to identify additional ways to
streamline their business operations, eliminate unprofitable operations, and
increase the profitability of their overall businesses. In this regard, the
Debtors have conducted an extensive analysis of the Distribution Network to
determine if there are any cost-saving opportunities that would still permit
them to maintain the Distribution Network's overall efficiency.
To address the issue of whether certain Warehouses should be
closed down or consolidated with other properties in the
Distribution Network, the Debtors examined, among other things:
(a) the sales volume and net profitability of each Warehouse;
(b) the underlying customer profitability for each Warehouse;
(c) the potential effect of closing the Warehouses on
customer relationships; and
(d) the feasibility of shifting certain of the Debtors
Warehouses to Third Party Warehouses.
In addition, the Debtors evaluated the efficiencies and net
profitability of the Distribution Centers and their sales
offices.
Currently, Mr. Brady notes, the Debtors are party to 19 non-
residential real property leases, including those associated
with:
* the Merced Plant;
* three of the four Distribution Centers;
* eight Debtors Warehouses plus two Warehouses that are
subleased by the Debtors to sales representatives to be
operated as Third Party Warehouses; and
* the Debtors' corporate headquarters and their sales
offices.
After conducting their Distribution Network analysis, the Debtors determined
that majority of their non-residential real property leases are vital to the
Distribution Network, and thus, must be assumed to preserve the Distribution
Network's overall
profitability.
Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc. aka Werner
Ladder Co. -- http://www.wernerladder.com/-- manufactures and distributes
ladders, climbing equipment and ladder accessories. The company and three
of its affiliates filed for chapter 11 protection on June 12, 2006 (Bankr.
D. Del. Case No. 06-10578). The firm of Willkie Farr & Gallagher LLP serves
as the Debtors' counsel. Kara Hammond Coyle, Esq., Matthew Barry Lunn,
Esq., and Robert S. Brady, Esq., Young, Conaway, Stargatt & Taylor, LLP,
represents the Debtors as its co-counsel. The Debtors have retained
Rothschild Inc. as their financial advisor. Greenberg Traurig LLP is
counsel to the Official Committee of Unsecured Creditors. Jefferies & Co
serves as the Committee's financial advisor. At March 31, 2006, the Debtors
reported total assets of US$201,042,000 and total debts of US$473,447,000.
The Debtors's exclusive period to file a plan expires on Jan. 15, 2007.
(Werner Ladder Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service,
Inc., 215/945-7000, http://bankrupt.com/newsstand/)
===========
P A N A M A
===========
DRINKS AMERICAS: Joint Venture with Beyer Starts Operations
-----------------------------------------------------------
Drinks Americas Holdings, Ltd., has launched operations of its joint venture
with Beyer Farms, Inc./Tuscan Dairy for the marketing, distribution,
delivery, and merchandising of Drinks Americas' non-alcoholic beverage
products in the New York metropolitan region.
Drinks Americas shipped over 25,000 cases of its non-alcoholic beverages,
including Newman's Own Sparkling Fruit Drinks and Newman's Own Sparkling
Flavored Waters throughout selected markets in the northeast and west coast
regions. Drinks Americas will add several new non-alcoholic beverages to
its product line over the next several months.
Beyer/Tuscan delivers milk and dairy products to over 5,000 customer
locations in the metropolitan New York market, including New York City's
five boroughs, Long Island, Westchester, and New Jersey. Drinks Americas
will merge its current non-alcoholic sales and merchandising resources with
the joint venture operation.
Beyer/Tuscan is in the process of securing regulatory approval and licensing
to become a beer distributor for the delivery of Drinks Americas' Rheingold
Beer to its customer accounts. Rheingold Beer was introduced in New York in
1831 and was purchased by Drinks Americas in October 2005.
Drinks Americas President and Chief Executive Officer Patrick Kenny stated,
"Our non-alcoholic beverage business is an integral part of our growth
strategy. As we associate well-known icons with our brands, we emphasize
exceptional taste and high quality packaging to over-deliver on consumers'
expectations of our products. We expect continued sales growth as we
rollout our Newman's products on a national basis. Our joint venture with
Beyer/Tuscan provides us the strategic advantage of our own proprietary
route to market in a large and fragmented market of metropolitan New York.
It will also be a major advantage in our re-launch of Rheingold Beer over
the next couple of months."
Beyer/Tuscan Chief Executive Officer Henry Beyer commented, "I am very
excited to combine the resources of our company with the sales and
merchandising team of Drinks Americas. The joint venture should become an
important part of our business and an additional way for us to service our
customers."
Headquarted in Wilton, Connecticut, Drinks Americas Holdings,
Ltd., -- http://www.drinksamericas.com/-- develops, owns,
markets, and nationally distributes alcoholic and non-alcoholic
premium beverages that are often associated with renowned icon
celebrities. Drinks' portfolio of premium alcoholic beverages
includes Donald Trump's Trump Super Premium Vodka (Spring 2006),
Willie Nelson's Old Whiskey River Bourbon and Bourbon Cream, and
Roy Yamaguchi's Y Sake. Drinks non-alcoholic brands include the
distribution of Paul Newman's Newman's Own Lightly Sparkling
Fruit Juice Drinks.
Other products owned and distributed by Drinks Americas include:
-- Damiana, the Mexican liqueur
-- Aguila Tequila,
-- Cohete Rum Guarana from Panama,
-- Swiss T, and
-- Rheingold Beer.
Going Concern Doubt
As reported in the Troubled Company Reporter-Latin America on
Sept. 19, 2006, Bernstein & Pinchuk LLP expressed doubt about
Drinks Americas Holdings, Ltd.'s ability to continue as a going
concern after auditing the Company's 2006 financial statements.
The auditing firm pointed to the Company's significant losses
from operations since its inception and has a working capital
deficiency at April 30, 2006.
For the fiscal year ended April 30, 2006, the Company incurred a
US$4,391,017 net loss on US$1,607,606 of net revenues compared
to a US$4,327,698 net loss on US$2,071,566 of net revenues in
2005.
At April 30, 2006, the Company's balance sheet showed US$2.6
million in total assets and US$7.1 million in total liabilities,
resulting in a US$4.5 million stockholders' deficit.
The Company's April 30 balance sheet also showed strained
liquidity with US$1.4 million in total current assets available
to pay US$7.0 million in total current liabilities coming due
within the next 12 months.
A full-text copy of the Company's Annual Report is available for
free at http://researcharchives.com/t/s?11c6
=====================
P U E R T O R I C O
=====================
ADVANCED MEDICAL: Acquires IntraLase Corp. for US$808 Million
-------------------------------------------------------------
Advanced Medical Optics Inc. and IntraLase Corp. entered into a definitive
agreement for AMO to acquire IntraLase for around US$808 million in cash.
Under terms of the agreement, approved by the boards of directors of both
companies, following the receipt of fairness opinions from their respective
financial advisors, AMO will pay US$25 in cash per share of IntraLase stock
and the individually determined cash value per share of outstanding stock
options. AMO has arranged committed financing from a consortium of banks to
complete the transaction.
AMO expects the transaction to be completed early in the second quarter of
2007. The transaction is subject to IntraLase stockholder approval as well
as regulatory approvals and other customary closing conditions.
"This acquisition offers significant strategic value by further establishing
AMO as the global refractive technology leader, positioning us with a broad
range of technologies and expertise to serve the needs of comprehensive
refractive practices," said AMO Chairman, President and CEO Jim Mazzo. "We
believe the transaction benefits eye care practitioners and their patients
by bringing together state-of-the-art technologies to define a new standard
of care in laser vision correction. Additionally, we believe the
transaction is financially attractive and will create significant operating
leverage and growth opportunities, as well as stockholder value."
"Besides the value that we believe will be created for both companies'
stockholders, we think this transaction provides truly unique
opportunities," commented IntraLase President and CEO Robert J. Palmisano.
"There will now be the ability to advance our femtosecond laser technology
in a coordinated way, both developmentally and commercially, with the
world's leading excimer laser technology. Also, this combination provides
the opportunity for further innovation and beneficial refinement of LASIK
procedures that can and should grow the overall LASIK market."
Mr. Palmisano concluded, "I am confident that this combination will provide
for better surgical procedures for patients, happier customers and future
opportunities for employees."
Strategic Rationale
The addition of the IntraLase femtosecond laser technology into AMO's
portfolio of refractive technologies complements AMO's fundamental growth
strategy.
Key benefits:
-- builds a clearly differentiated position in the ophthalmic
industry, uniquely positioning AMO as the eye care
professional's "complete refractive solution," with a
suite of corneal and lens-based products and services that
address a lifetime of refractive vision needs;
-- serves practitioners and patients across the globe by
linking AMO's market-leading Advanced CustomVue(TM) laser
vision correction procedure and market-leading IntraLase
femtosecond laser innovations to define a new standard of
care: custom all-laser LASIK, a procedure that delivers
superior clinical outcomes and enhances surgeon
productivity;
-- optimizes cross-selling opportunities between installed
bases of both companies;
-- combines R&D expertise in excimer lasers, femtosecond
lasers, diagnostics and optics; and
-- blends two companies' infrastructures and core
competencies to improve operating leverage and create
strong platforms for international expansion.
Revised Financial Guidance
AMO expects the transaction to be dilutive to 2007 adjusted earnings per
share (EPS) and slightly accretive to 2008 adjusted EPS. As a result of
this transaction, AMO expects amortization to increase by approximately
US$30 million on an annualized basis, which would bring the company's total
annual amortization to approximately US$70 million or about US$0.70 per
share on an after-tax basis. For more information, see the "Use of Non-GAAP
Measures" section later in this release.
Assuming successful close of the transaction early in the second quarter of
2007, AMO's financial guidance is as follows:
2007 2008
With
Previous Acquisition
-------- -----------
Revenue 1,060-1,080 1,150-1,175 1,350-1,370
(in US$
millions)
Adjusted EPS 1.85-2.00 1.40-1.55 2.25-2.40
UBS Investment Bank is acting as lead financial advisor and Goldman Sachs is
acting as co-financial advisor to AMO. UBS Investment Bank is acting as
lead arranger of a US$900 million acquisition facility for AMO. Bank of
America and Goldman Sachs are acting as joint-arrangers of the acquisition
facility. Bank of America is acting as lead financial advisor and JPMorgan
is acting as co-financial advisor to IntraLase. Skadden, Arps, Slate,
Meagher & Flom LLP is acting as legal advisor to AMO. Stradling Yocca
Carlson & Rauth is acting as legal advisor to IntraLase.
IntraLase Technology
More than 1,200 surgeons worldwide have incorporated the IntraLase
Method(TM) into their LASIK practices. Many U.S. ophthalmic teaching
institutes, including Duke University Medical School, the Wilmer Eye
Institute at Johns Hopkins, the Bascom Palmer Eye Institute at University of
Miami, and Stanford University, use the IntraLase FS(TM) laser technology to
train future generations of LASIK surgeons.
The 4th generation IntraLase FS(TM) laser uses an infrared light beam,
generating 60,000 pulses per second, to prepare the intracorneal bed and
create the corneal flap in the first step of LASIK.
-- using an "inside-out" process, the laser beam is precisely
focused to a point within the cornea;
-- the laser pulses then create thousands of microscopic
bubbles which define the incision within the intracorneal
surface;
-- along the edge, bubbles are then stacked up at a beveled
angle -- a feature unique to the IntraLase Method(TM) --
to the corneal surface to complete the flap;
-- from start to finish, the IntraLase Method(TM) typically
takes 15-30 seconds;
-- the physician then exposes the prepared corneal bed for
excimer laser treatment (the second step of LASIK) by
lifting the flap.
-- the LASIK procedure is complete when the flap is securely
repositioned on its beveled edge.
Key benefits of IntraLase's technology:
-- enabling surgeons to more precisely control the first
critical step of LASIK including flap diameter, depth,
hinge location and width, and side cut architecture.
-- providing a perfectly thin and planar flap resulting in
improved biomechanical stability.
-- enabling for precise repositioning, alignment and seating
after the LASIK procedure is completed, reducing the risk
of flap displacement, a complication occasionally seen
after microkeratome flaps;
-- enhanced safety profile as evidenced in a presentation by
Elizabeth A. Davis, M.D. and Richard L. Lindstrom, M.D.:
"Early Experience with the 30 kHz IntraLase."
-- clinically proven superior overall visual outcomes in both
standard and custom LASIK procedures with more patients
achieving visual acuity of 20/20, 20/15, and 20/12.5 as
evidenced in a presentation by Daniel S. Durrie:
"Randomized, Prospective, Contralateral Study of LASIK:
IntraLase laser Versus Mechanical Keratome."
About IntraLase Corp.
Headquartered in Irvine, Calif., -- http://www.intralase.com/--IntraLase
designs, develops, and manufactures an ultra-fast laser that is
revolutionizing refractive and corneal surgery by creating safe and more
precise corneal incisions. Delivering on the promise of ophthalmic laser
technology, the IntraLase FS(TM) laser, related software, and disposable
devices replace the hand-held microkeratome blade used during LASIK surgery.
About Advanced Medical Optics
Based in Santa Ana, California, Advanced Medical Optics, Inc.
(NYSE: EYE) -- http://www.amo-inc.com/-- develops, manufactures
and markets ophthalmic surgical and contact lens care products.
AMO employs approximately 3,600 worldwide. The company has
operations in 24 countries and markets products in 60 countries including
Puerto Rico and Brazil.
* * *
In October 2006, Fitch simultaneously affirmed and withdrew its ratings for
Advanced Medical Optics Inc.
Affected ratings include the company's 'B+' Issuer Default Rating and
'BB+/RR1' Senior Secured Credit Facility Rating.
Additionally, Moody's Investors Service confirmed its B1 Corporate Family
Rating for Advanced Medical Optics in connection with the rating agency's
implementation of its new Probability-of-Default and Loss-Given-Default
rating methodology.
DAVID'S BRIDAL: S&P Assigns B Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate credit rating
on Conshohocken, Pennsylvania-based David's Bridal Inc.
The outlook is stable.
Standard & Poor's also assigned a 'B' rating to the company's planned US$315
million term loan B due 2014. This rating and the '3' recovery rating
indicate Standard & Poor's expectation for a meaningful recovery of
principal in the event of payment default.
"The ratings reflect DBI's participation in the highly competitive and
fragmented bridal specialty retail market, and high pro forma leverage of
about 6.8x," said Standard & Poor's credit analyst Jackie Oberoi.
DBI, the nation's largest bridal specialty retailer, operated
273 David's Bridal stores and 10 Priscilla of Boston stores as of December
2006. DBI participates in the stable wedding industry, which is estimated
at about US$47 billion in annual sales.
The industry is relatively mature, with expected growth of about 1% to 2%
annually over the next several years. A highly fragmented group of
retailers serves the wedding industry, with about 95% of the market
comprised of independent retailers. DBI is the U.S.'s only national
retailer in this industry, with about eight times more stores than its next
largest competitor, and operates in 46 U.S. states and Puerto Rico.
JOSE ORTIZ: Voluntary Chapter 11 Case Summary
---------------------------------------------
Debtors: Jose A. Torres Ortiz
Carmen J. Gonzalez Bermudez
P.O. Box 141843
Arecibo, PR 00614
Bankruptcy Case No.: 06-05271
Type of Business: Boulevard Pharmacy Corp., an affiliate of
the Debtors, filed for chapter 11 protection
on Dec. 14, 2005 (Bankr. D. P.R.
Case No. 05-13064).
Chapter 11 Petition Date: December 26, 2006
Court: District of Puerto Rico (Old San Juan)
Judge: Sara E. De Jesus Kellogg
Debtors' Counsel: Luis D. Flores Gonzalez, Esq.
80 Calle Georgetti, Suite 202
San Juan, PR 00925-3624
Tel: (787) 758-3606
Fax: (787) 753-5317
Total Assets: US$116,455
Total Debts: US$1,743,082
The Debtors did not file a list of their 20 largest unsecured creditors.
PIER 1: Posts US$72.7M Net Loss in 3rd Fiscal Qtr. Ended Nov. 25
----------------------------------------------------------------
Pier 1 Imports Inc. filed its fiscal third quarter financial reports for the
period ended Nov. 25, 2006, with the Securities and Exchange Commission on
Jan. 3. 2007.
For the three months ended Nov. 25, 2006, Pier 1 reported a US$72,718,000
net loss on US$402,714,000 of net sales, compared with a US$7,181,000 net
loss on US$456,690,000 of net sales for the same period in 2005.
During the third quarter, the company continued to experience a decline in
sales. The company has seen a persistent weakness in customer traffic
throughout the year as retailers in its sector are competing for market
share and consumers' discretionary funds. To stay with the competition, the
company has struggled to find the right marketing programs and media that
will drive traffic to its stores and increase sales.
During the third quarter, the company slightly shifted its focus to gifts
and decorative items for the holiday season, adding more unique merchandise
that was exclusive, value-priced and had both a traditional and contemporary
appeal to meet customers' decorating needs.
At Nov. 25, 2006, the company's balance sheet showed US$1,017,881,000 in
total assets, US$608,346,000 in total liabilities, and US$409,535,000 in
total stockholders' equity.
Full-text copies of the company's third quarter financials are available for
free at http://ResearchArchives.com/t/s?1838
December Sales
Pier 1 reported that sales for the five-week period ended
Dec. 30, 2006, aggregated US$242,541,000, a decrease of 10.9% from
US$272,296,000 last year, and comparable store sales declined 10.7%.
Year-to-date sales of US$1,392,045,000 were down 9.8% from US$1,542,976,000
last year, and comparable store sales declined 11.4%.
Marvin J. Girouard, Pier 1's chairman and chief executive officer,
commented, "Although early December sales trends, driven primarily by
holiday-related items, were better than we had experienced in prior months,
sales of our core home furnishing related items did not improve. Overall,
sales were very promotional, resulting in the strong sell-through of
seasonal merchandise and continued inventory control.
"Our January clearance has begun and our focus remains on keeping inventory
levels on plan as we begin to receive the new spring merchandise."
Based in Fort Worth, Texas, Pier 1 Imports Inc. (NYSE:PIR)
-- http://www.pier1.com/-- is a specialty retailer of imported
decorative home furnishings and gifts with Pier 1 Imports(R)
stores in 49 states, Puerto Rico, Canada, and Mexico, and Pier 1
kids(R) stores in the United States.
* * *
As reported in the Troubled Company Reporter on Sept. 26, 2006,
Moody's Investors Service downgraded Pier 1's corporate family
rating to B3 from B1 after continued degradation in same store
sales, which have resulted in modest operating results and
negative free cash flow. Moody's said the rating outlook is stable.
=============
U R U G U A Y
=============
* URUGUAY: IDB Funding Entrepreneurship Program
-----------------------------------------------
The Multilateral Investment Fund of the Inter-American Development Bank aka
IDB approved a US$800,000 loan and a US$2,391,000 technical cooperation
grant for a program to promote technology-based entrepreneurship in Uruguay.
The Multilateral Investment is an autonomous fund administered by the IDB.
It supports private sector development in Latin America and the Caribbean,
focusing on microenterprise and small business.
IDB Team Leader Santiago Soler said, "This initiative will promote a
systematical increase in the number and quality of new and infant business
ventures and enterprises in dynamic sectors. It will foster an
entrepreneurial culture with high value-added that will contribute to the
sustainable growth of the economy."
The program will employ an innovative approach to financing and sector
development. Dynamic entrepreneurs will receive technical assistance and
financing to expand their technology-based small and medium-sized
enterprises. Individual private investors will have access to a unique
investment vehicle tailored to their needs. Local business origination and
training institutions will support the pipeline of dynamic business ventures
through the creation and support of angel investor networks. The financial
sector will gain a new financing option for small enterprises. Executing
agencies -- Prosperitas Capital Partners, Uruguayan Technology Laboratory
and the National Development Corp. -- and partner institutions will be
strengthened. Participating institutions will be prepared to continue
working sustainably after the project has ended.
Upon program completion, the business climate will allow for the systematic
origination, training, strengthening, and financing of entrepreneurs and
business ventures. Eighty new business ventures will have received
financing and approximately 20 could directly obtain seed capital.
"The value added of this program consists in developing the real potential
of dynamic sectors in Uruguay, such as biomedicine, software, agribusiness,
biotechnology, information and communications technologies, using an
integrated business model. This model will allow companies with high growth
potential to expand throughout the financial cycle by building their
business network, promoting innovation and competitiveness, and providing
know-how and financing," Mr. Soler said.
IDB project financing will total US$3,191,000. Local counterpart funds will
total US$2,869,000.
* * *
On Sept 11, 2006, Fitch rated Uruguay's US$400 million issue of
5% inflation-indexed bonds payable in U.S. dollars and maturing
Sept. 14, 2018, at 'B+'.
=================
V E N E Z U E L A
=================
AMERICAN COMMERCIAL: Names Jacques Vanier as Manufacturing VP
-------------------------------------------------------------
American Commercial Lines Inc. has appointed Jacques J. Vanier as its vice
president in manufacturing.
Most recently, Mr. Vanier served as vice president of Global
Manufacturing and Operations with Alcoa Automotive and Truck Systems.
Throughout his 21-year career with Alcoa, Mr. Vanier held a variety of
positions in operations management, manufacturing, logistics, production
control and sales.
American Commercial president and chief executive officer Mark R. Holden
stated, "We are pleased to attract someone so uniquely qualified to our
organization. Jacques has an exceptional record of working with people and
his comprehensive manufacturing background and proven track record for
generating results will be instrumental in building on the progress of our
manufacturing operations."
Headquartered in Jeffersonville, Indiana, American Commercial
Lines Inc. -- http://www.aclines.com/-- is an integrated marine
transportation and service company operating in the United
States Jones Act trades, with revenues of more than US$740
million and approximately 2,600 employees as of Dec. 31, 2005.
The company filed for chapter 11 protection on Jan. 31, 2003
(Bankr. S.D. Ind. Case No. 03-90305). Suzette E. Bewley,
Esq., at Baker & Daniels represented the company in its
successful restructuring efforts. The Bankruptcy Court approved
the company's Plan of Reorganization on Dec. 30, 2004, which
allowed the company to emerge from bankruptcy on Jan. 11, 2005.
American Commercial has operations in Venezuela.
* * *
As reported in the Troubled Company Reporter on Sept. 11, 2006,
Moody's Investors Service raised American Commercial Lines LLC's
Corporate Family Rating to B1 from B2, and affirmed the B3
senior unsecured and the SGL-2 Speculative Grade Liquidity
ratings. Moody's said the rating outlook is stable.
CITGO PETROLEUM: Starting Production at Ferrysburg Terminal
-----------------------------------------------------------
Citgo Petroleum Corp. wants to start the production of 10% ethanol blend
gasoline at its Ferrysburg terminal by the end of the month, Muskegon
Chronicle reports.
According to Muskegon Chronicle Citgo Petroleum manages and co-owns the
terminal with ExxonMobil.
Muskegon Chronicle relates that Ferrysburg's planning commission had
ratified site plans for two 30,000-gallon tanks installed without
authorization.
The report says that officials at Ferrysburg had challenged the construction
of two 30,000-gallon ethanol storage tanks on the north side of the
Ferrysburg terminal. The terminal at 524 Third, a major area gasoline
supplier, is in an area zoned light industrial and the entire terminal is a
nonconforming use. According to the officials, adding the two large ethanol
storage tanks represented an expansion of that nonconforming use.
David C. Humphrey, the terminal manager, said that Citgo Petroleum did not
know it needed city approval when it installed the tanks. Citgo Petroleum
had used an engineering company in Tulsa, Oklahoma, that told the firm the
only permits required were from the Michigan Department of Environmental
Quality and state and local fire officials, Muskegon Chronicle notes.
Citgo Petroleum told Muskegon Chronicle that it has to start producing
gasoline with a 10% ethanol blend to respond to market demands.
Adding ethanol blending is important to the survival of the Ferrysburg
terminal, which has seen its business decrease 36% over the past 11 months
because it does not offer a cheaper gasoline-ethanol blend, Muskegon
Chronicle says, citing
Mr. Humphrey.
Mr. Humphrey told Muskegon Chronicle, "What happened here is good for West
Michigan. It is good to have places like this. If you don't have gas, you
can't drive your car."
The Ferrysburg terminal used to have two ethanol tanks totaling 50,000
gallons. The tanks were removed in late 1997 when demand for ethanol
stopped. Total production from the terminal won't be rising even with the
new tanks, Muskegon Chronicle says, citing Citgo Midwest Region Manager
Steve Sullivan.
According to the report, producing blended gasoline will need up to five
additional tanker trucks traveling from Grand Rapids to Ferrysburg with
ethanol. Gasoline arriving at the terminal by pipeline will be mixed with
ethanol as it is being pumped into tanker trucks.
Company officials told Muskegon Chronicle they don't think demand for
ethanol will diminish, due to population growth in West Michigan. The area
most likely will be required to use ethanol-blended reformulated gas, which
decreases air pollution.
Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.
Petroleos de Venezuela 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 and Poor's Ratings Services assigned a 'BB' rating on
Citgo Petroleum Corp.
Citgo Petroleum carries Fitch's BB- Issuer Default Rating.
ELECTRICIDAD DE CARACAS: S&P Places B Rating on CreditWatch
-----------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' rating on CA La
Electricidad De Caracas on CreditWatch with negative implications.
In addition, Standard & Poor's placed its 'B' senior unsecured debt rating
on Electricidad de Caracas Finance BV's notes due 2014 on CreditWatch with
negative implications.
The rating action follows Venezuelan President Hugo Chavez's announcement
relating to the intention to nationalize the country's electrical and
telecommunications companies. The CreditWatch placement reflects the
uncertainties regarding the potential actions to be taken by the government
that may introduce additional risk to the bondholders.
Although Electricidad de Caracas' rating already incorporated a significant
constraint related to Venezuela country risk, compared with quite adequate
financial performance for the rating, additional negative uncertainty has
been introduced by the government's recent announcement.
"This development highlights our view that entities in Venezuela
continue to face high risk, even as the credit quality of the sovereign
itself has improved," said Standard & Poor's credit analyst Fabiola Ortiz.
Standard & Poor's expects to resolve the CreditWatch listing as more
information about government intentions and actions becomes available.
PETROLEOS DE VENEZUELA: Eni To Decide on Amount of Damages
----------------------------------------------------------
Italian oil firm Eni SpA is yet to determine the amount of damages it would
seek from the Venezuelan government as a result of the nation's
nationalization of its hydrocarbons sector in April 2006.
Eni is one of the few multinationals that refused to migrate its operating
contract into a joint venture with Petroleos de Venezuela, the state-oil
firm. As a result, Eni's Dacion oil field was seized by the government
resulting to losses, according to the Italian firm.
"We have made no decision on the amount," a spokesman of Eni told Reuters.
Accordng to El Universal, an Italian newspaper believed the amount to reach
more than US$1 billion. Eni said in its financial report for the first
semester of 2006 that damages were about EUR654 million.
Eni has brought the case before the World Bank Center for the Settlement of
Investment Disputes.
Petroleos de Venezuela SA -- http://www.pdv.com/-- 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. The company has a commercial office in China.
* * *
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: Extends Media Reach Through La Epoca Acquisition
-------------------------------------------------------------
The Venezuelan government, in a bid to establish a network of
state-controlled media, has purchased some from Bolivian individuals, El
Universal reports.
Jorge Tejerina, Bolivia's TV Channel A press editor, told the Associated
Press that the Venezuelan government bought recently La Epoca, with the aim
of turning the weekly paper into a daily.
El Universal says its new director, journalist Hugo Moldiz, is the major
leader of the "people's staff" organized to back the government of Bolivian
President Evo Morales.
Raul Penaranda, a shareholder of La Epocas, told AP that other investors
were involved in the transaction. El Universal says recent editions of the
Bolivian paper showed a good deal of state advertising.
* * *
As reported in the Troubled Company Reporter on Nov. 20, 2006,
Fitch Ratings affirmed Venezuela's long-term foreign and local
currency Issuer Default Ratings at 'BB-'. At the same time, the
agency also affirmed the short-term foreign currency IDR at 'B'
and the Country Ceiling at 'BB-'. Fitch said the outlook on the
ratings remains stable.
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
January 11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Lender's Panel
University Club, Jacksonville, FL
Contact: http://www.turnaround.org/
January 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual Lender's Panel Breakfast
Westin Buckhead, Atlanta, GA
Contact: http://www.turnaround.org/
January 17, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
January 17-19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Distressed Investing Conference
Wynn, Las Vegas, NV
Contact: http://www.turnaround.org/
January 19-21, 2007
AMERICAN BANKRUPTCY INSTITUTE
3rd Annual Corporate Restructuring Competition
Kellogg School of Management, Chicago, IL
Contact: http://www.abiworld.org/
January 23, 2007
TURNAROUND MANAGEMENT ASSOCIATION
2007 Outlook on Healthcare Restructuring
Center Club, Baltmore, MD
Contact: http://www.turnaround.org/
January 24, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Year 2007 Kick-Off Party
Oak Hill Country Club, Rochester, NY
Contact: 716-440-6615 or http://www.turnaround.org/
January 25-27, 2007
AMERICAN BANKRUPTCY INSTITUTE
Rocky Mountain Bankruptcy Conference
Hyatt Regency, Denver, CO
Contact: 1-703-739-0800 or http://www.abiworld.org/
January 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Men's College Basketball & Networking
Wachovia Center, Philadelphia, PA
Contact: 215-657-5551 or http://www.turnaround.org/
January 30-31, 2007
EUROMONEY INSTITUTIONAL INVESTOR
Korea Securitisation and Structured Credit Summit
JW Marriott Hotel, Seoul, South Korea
Contact: http://www.euromoneyplc.com/
January 31 to February 1, 2007
EUROMONEY INSTITUTIONAL INVESTOR
Asia M&A Forum
Island Shangi-La, Hong Kong
Contact: http://www.euromoneyplc.com/
February 2007
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
San Juan, Puerto Rico
Contact: 1-703-739-0800 or http://www.abiworld.org/
February 5, 2007
STRATEGIC RESEARCH INSTITUTE
3rd Annual Tranche B & 2nd Lien Financing Summit
Scottsdale, AZ
Contact: http://www.euromoneyplc.com/
February 8-9, 2007
EUROMONEY CONFERENCES
2nd Philippine Investment Conference
Cebu Convention Center, Cebu, Philippines
Contact: http://www.euromoneyplc.com/
February 8-9, 2007
EUROMONEY
Leverage Finance Asia
JW Marriott Hong Kong
Contact: http://www.euromoneyplc.com/
February 8-11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Certified Turnaround Professional (CTP) Training
NY/NJ
Contact: http://www.turnaround.org/
February 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Men's College Basketball & Networking
Wachovia Center, Philadelphia, PA
Contact: 215-657-5551 or http://www.turnaround.org/
February 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Wharton Restructuring Conference
The Wharton School
Philadelphia, PA
Contact: http://www.turnaround.org/
February 21-22, 2007
EUROMONEY
Euromoney Pakistan Conference
Perceptions & Realities
Marriott Hotel, Islamabad, Pakistan
Contact: http://www.euromoneyplc.com/
February 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA PowerPlay - Atlanta Thrashers
Philips Arena, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
February 22, 2007
EUROMONEY
2nd Annual Euromoney Japan Forex Forum
Mandarin Oriental, Tokyo, Japan
Contact: http://www.euromoneyplc.com/
February 25-26, 2007
NORTON INSTITUTES
Norton Bankruptcy Litigation Institute
Marriott Park City, UT
Contact: http://www2.nortoninstitutes.org/
February 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Devil Rays Turnaround
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
February 27-28, 2007
EUROMONEY INSTITUTIONAL INVESTOR
5th Annual Corporate Restructuring Summit
Sheraton Park Lane Hotel, London, UK
Contact: http://www.euromoneyplc.com/
March 1, 2007
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners - West
Regency Beverly Wilshire, Los Angeles, CA
Contact: http://www.abiworld.org/
March 2, 2007
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Bankruptcy Battleground West
Regency Beverly Wilshire, Los Angeles, CA
Contact: http://www.abiworld.org/
March 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Martini Madness Cocktail Reception with Geraldine Ferraro
Westin Buckhead, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
March 15-18, 2007
NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES
NABT Spring Seminar
Ritz-Carlton Buckhead, Atlanta, GA
Contact: http://www.NABT.com/
March 18-21, 2007
INSOL
Annual Europe, Africa & Middle East Conference
Cape Town, South Africa
Contact: http://www.insol.org/CapeTown07/
March 21, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
March 21-22, 2007
EUROMONEY
2nd Annual Vietnam Investment Forum
Melia, Hanoi, Vietnam
Contact: http://www.euromoneyplc.com/
March 21-22, 2007
EUROMONEY
Euromoney Indian Financial Market Congress
Grand Hyatt, Mumbai, India
Contact: http://www.euromoneyplc.com/
March 22-23, 2007
EUROMONEY INSTITUTIONAL INVESTOR
Euromoney Indonesian Financial Markets Congress
Bali, Indonesia
Contact: http://www.euromoneyplc.com/
March 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
"The Six Keys of Sustained Profitable Growth"
Rodney Page, Senior Partner of Blue Springs Partners
Citrus Club, Orlando, FL
Contact: http://www.turnaround.org/
March 27-31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Spring Conference
Four Seasons Las Colinas, Dallas, Texas
Contact: http://www.turnaround.org/
March 29-31, 2007
ALI-ABA
Chapter 11 Business Reorganizations
Scottsdale, Arizona
Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/
April 11-15, 2007
AMERICAN BANKRUPTCY INSTITUTE
ABI Annual Spring Meeting
J.W. Marriott, Washington, DC
Contact: 1-703-739-0800; http://www.abiworld.org/
April 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, FL
Contact: 561-882-1331 or http://www.turnaround.org/
April 12, 2007
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners - East
JW Marriott, Washington, DC
Contact: http://www.abiworld.org/
April 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast meeting with Chapter President, Bruce Sim
Westin Buckhead, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
April 24, 2007
TURNAROUND MANAGEMENT ASSOCIATION
"Why Prospects Become Clients"
Mark Fitzgerald, President of Sales Training Institute Inc
Centre Club, Tampa, FL
Contact: http://www.turnaround.org/
April 26-27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
1st Annual Credit & Bankruptcy Symposium
Mohegan Sun, Uncasville, CT
Contact: http://www.turnaround.org/
April 26-28, 2007
ALI-ABA
Fundamentals of Bankruptcy Law
Philadelphia, PA
Contact: http://www.ali-aba.org
April 29 - May 1, 2007
INTERNATIONAL BAR ASSOCIATION
International Insolvency Conference
Zurich, Switzerland
Contact: http://www.ibanet.org/
May 4, 2007
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners - NYC
Alexander Hamilton US Custom House, SDNY
New York, NY
Contact: http://www.abiworld.org/
May 7, 2007
AMERICAN BANKRUPTCY INSTITUTE
9th Annual New York City Bankruptcy Conference
Millennium Broadway Hotel & Conference Center
New York, NY
Contact: http://www.abiworld.org/
May 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual TMA Atlanta Golf Outing
White Columns, Atlanta, GA
Contact: 678-795-8103 or http://www.turnaround.org/
May 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
June 6-8, 2007
TURNAROUND MANAGEMENT ASSOCIATION
5th Annual Mid-Atlantic Regional Symposium
Borgata Hotel Casino & Spa, Atlantic City, NJ
Contact: http://www.turnaround.org/
June 6-9, 2007
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
23rd Annual Bankruptcy & Restructuring Conference
Westin River North, Chicago, Illinois
Contact: http://www.airacira.org/
June 14-17, 2007
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
June 28 - July 1, 2007
NORTON INSTITUTES
Norton Bankruptcy Litigation Institute
Jackson Lake Lodge, Jackson Hole, WY
Contact: http://www2.nortoninstitutes.org/
July 12, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, FL
Contact: 561-882-1331 or www.turnaround.org
July 12-15, 2007
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Marriott, Newport, RI
Contact: 1-703-739-0800; http://www.abiworld.org/
July 18, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
July 25-28, 2007
AMERICAN BANKRUPTCY INSTITUTE
12th Annual Southeast Bankruptcy Workshop
The Sanctuary, Kiawah Island, SC
Contact: http://www.abiworld.org/
August 9-11, 2007
AMERICAN BANKRUPTCY INSTITUTE
3rd Annual Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay
Cambridge, MD
Contact: http://www.abiworld.org/
September 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Southwest Bankruptcy Conference
Four Seasons
Las Vegas, NV
Contact: http://www.abiworld.org/
September 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
October 10-13, 2007
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Orlando, Florida
Contact: http://www.ncbj.org/
October 11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, FL
Contact: 561-882-1331 or http://www.turnaround.org/
October 16-19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Copley Place, Boston, Massachusetts
Contact: 312-578-6900; http://www.turnaround.org/
October 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
Centre Club, Tampa, FL
Contact: 561-882-1331 or http://www.turnaround.org/
December 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Westin Mission Hills Resort, Rancho Mirage, California
Contact: 1-703-739-0800; http://www.abiworld.org/
December 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South FL
Contact: 561-882-1331 or http://www.turnaround.org/
TBA 2008
INSOL
Annual Pan Pacific Rim Conference
Shanghai, China
Contact: http://www.insol.org/
January 10, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, FL
March 25-29, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Ritz Carlton Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
April 3-6, 2008
AMERICAN BANKRUPTCY INSTITUTE
26th Annual Spring Meeting
The Renaissance, Washington, DC
Contact: http://www.abiworld.org/
June 4-7, 2008
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
24th Annual Bankruptcy & Restructuring Conference
JW Marriott Spa and Resort, Las Vegas, NV
Contact: http://www.airacira.org/
June 12-14, 2008
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, MI
Contact: http://www.abiworld.org/
August 16-19, 2008
AMERICAN BANKRUPTCY INSTITUTE
13th Annual Southeast Bankruptcy Workshop
Ritz-Carlton, Amelia Island, FL
Contact: http://www.abiworld.org/
September 24-27, 2008
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Scottsdale, Arizona
Contact: http://www.ncbj.org/
October 28-31, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Copley Place, Boston, Massachusetts
Contact: 312-578-6900; http://www.turnaround.org/
December 4-6, 2008
AMERICAN BANKRUPTCY INSTITUTE
20th Annual Winter Leadership Conference
Westin La Paloma Resort & Spa
Tucson, AZ
Contact: http://www.abiworld.org/
June 21-24, 2009
INSOL
8th International World Congress
TBA
Contact: http://www.insol.org/
October 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Desert Ridge, Phoenix, Arizona
Contact: 312-578-6900; http://www.turnaround.org/
2009 (TBA)
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Las Vegas, Nevada
Contact: http://www.ncbj.org/
October 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
2010 (TBA)
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
New Orleans, Louisiana
Contact: http://www.ncbj.org/
BEARD AUDIO CONFERENCES
Coming Changes in Small Business Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Real Estate under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changes to Cross-Border Insolvencies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Healthcare Bankruptcy Reforms
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Calpine's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changing Roles & Responsibilities of Creditors' Committees
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Validating Distressed Security Portfolios: Year-End Price
Validation and Risk Assessment
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Employee Benefits and Executive Compensation
under the New Code
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Dana's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Reverse Mergers - the New IPO?
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Fundamentals of Corporate Bankruptcy and Restructuring
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Privacy Rights, Protections & Pitfalls in Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com
BEARD AUDIO CONFERENCES
When Tenants File -- A Landlord's BAPCPA Survival Guide
Contact: http://www.beardaudioconferences.com
240-629-3300
BEARD AUDIO CONFERENCES
Clash of the Titans -- Bankruptcy vs. IP Rights
Contact: http://www.beardaudioconferences.com
240-629-3300
The Meetings, Conferences and Seminars column appears in the Troubled
Company Reporter each Thursday. Submissions via e-mail to
conferences@bankrupt.com are encouraged.
***********
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, Francois Albarracin, and Christian
Toledo, Editors.
Copyright 2076. 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
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Information contained herein is obtained from sources believed to be
reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 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 * * *