/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/070223.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, February 23, 2007, Vol. 8, Issue 39 Headlines A N T I G U A & B A R B U D A BETONSPORTS: Antiguan Authorities to Oversee Collection A R G E N T I N A AGROCOMERCIAL TAHUEL: Claims Verification Is Until March 28 BANCO DE GALICIA: S&P Argentina Puts D Rating on US$9-Mil. Notes BANKBOSTON: Local Branch Names Will Adapt Standard Bank's EL PASO: Reports 2007 Financial & Operational Plan TELEFONICA DE ARGENTINA: Reports ARS222MM Net Profit in 2006 TRUIDEN SA: Asks for Court Approval to Reorganize Business WILL PLAST: Trustee Will Verify Proofs of Claim Until March 19 B A R B A D O S BANCAFE INT'L: US$51 Million Pact with RCM Administrator Okayed B E R M U D A REFCO INC: Judge Drain Approves AIDMA Settlement Agreement REFCO INC: U.S. Court Approves RCM-Bancafe US$51-Mil. Agreement SCOR: AM Best Stays Ratings Amidst 32.9% Converium Shares Buy SEA CONTAINERS: Committees Seek To Create Info Sharing Protocol SEA CONTAINERS: GNER Signs GBP20MM Lease to Expand Train Fleet B O L I V I A * BOLIVIA: Nationalization Contracts to Take Effect by March 15 * BOLIVIA: Glencore to Seek Compensation for Vinto B R A Z I L AFFILIATED COMPUTER: Fitch Assigns Low B Ratings, Removes Watch ALCATEL-LUCENT: In Talks with Spanish Unions Over 310 Job Cuts ALCATEL-LUCENT: To Lay Off 12% of France Workforce AMERICAN TOWER: Completes Cash Tender Offer for 5% Conv. Notes BANCO BRADESCO: Paying Monthly Capital Interest on April 2 BAUSCH & LOMB: Files 2005 Annual Report with U.S. SEC CELESTICA INC: Yourman Represents Shareholders in Class Suit EMI GROUP: Mulls Buyback of EUR1.47-Billion Bonds TRANSAX INTERNATIONAL: Inks Standstill Agreement with Cornell * BRAZIL: Inks 2 Accords with Jamaica for Sugar Sector Upgrades C A Y M A N I S L A N D S AZUR HOLDINGS: Proofs of Claim Must be Filed by March 23 DRYDEN LEVERAGED: Sets Final Shareholders Meeting for March 22 LYRA LTD: Proofs of Claim Must be Filed by March 23 MINCS-MAGNUM: Final Shareholders Meeting Is Set for March 22 PAGODA HOLDINGS: Proofs of Claim Must be Filed by March 23 QUELLOS LF: Proofs of Claim Must be Filed by March 23 SCOTTISH RE: 4Q Earnings Report Cues Fitch to Lower Ratings SCOTTISH RE: AM Best Continues Review After Reporting Loss SEQUILS-MAGNUM: Final Shareholders Meeting Is Set for March 22 VEGA ASSET: Proofs of Claim Must be Filed by March 23 VEGA INT'L: Proofs of Claim Must be Filed by March 23 VEGAPLUS ASSET: Proofs of Claim Must be Filed by March 23 C H I L E AES GENER: Finmeccanica to Supply Steam Turbine & Generator NORSKE SKOGINDUSTRIER: To Invest NOK330 Million Into Skogn Unit C O L O M B I A BBVA COLOMBIA: Launches New Financial Products for Youths BRIGHTPOINT INC: Dangaard Buy Cues S&P to Revise Outlook to Neg. ECOPETROL: Inks Memorandum of Understanding with Petroperu * COLOMBIA: To Remove 25% Limit of Power Firms' Market Shares C O S T A R I C A * COSTA RICA: Alunasa Closure Not Due to Remarks Against Chavez C U B A * CUBA: US Congress Proposes Bill Against Cuba Trade Ban D O M I N I C A N R E P U B L I C JETBLUE AIRWAYS: Amends 2007 First Quarter & Full Year Guidance JETBLUE AIRWAYS: Spending US$30MM on New Operations Procedures E C U A D O R * ECUADOR: To Discuss Bilateral Cooperation Pacts with Venezuela H O N D U R A S * HONDURAS: President Manuel Zelaya to Run Empresa Nacional J A M A I C A AIR JAMAICA: William Rogers Resigns as Industry Affairs VP DIGICEL LTD: Denis O'Brien Wants Total Control of Company DYOLL INSURANCE: Talks Between Liquidators & Farmers Continue * JAMAICA: Inks 2 Accords with Brazil for Sugar Sector Upgrade M E X I C O ADVANCED MARKETING: Bid Procedures on Sale of Assets Approved ADVANCED MARKETING: Inks LOI with Baker & Taylor on Asset Sale CELLSTAR CORP: Earns US$4.8 Million in Fiscal Year Ended Nov. 30 ENESCO GROUP: U.S. Trustee Appoints Three-Member Official Panel ENESCO GROUP: Committee Retains Adelman & Gettleman as Counsel GRUPO MEXICO: Strikers Demand Gov't Action Against Company MOVIE GALLERY: S&P Ups Rating to B- on Improved Liquidity NORTEL NETWORKS: Board Declares Preferred Share Dividends SATELITES MEXICANOS: SES Global Eyes Firm P E R U * PERU: Inks Memorandum of Understanding with Ecopetrol P U E R T O R I C O ADELPHIA COMMS: Commences Initial Distributions to Creditors ADELPHIA COMMS: Wants ESPN's US$210 Million Admin. Claims Denied B&G FOODS: S&P Affirms B+ Rating on Sr. Secured Credit Facility CHATTEM INC: Earns US$45.1 Million in Year Ended Nov. 30, 2006 FIRST BANCORP: Fitch Affirms BB Issuer Default Rating JETBLUE: S&P Says Ratings Unaffected by Operational Problems SANTANDER BANCORP: Board Declares Cash Dividend Due April 2 SAN JUAN CABLE: S&P Affirms Low B Ratings on Payment News T R I N I D A D & T O B A G O BRISTOW GROUP: Board Declares US$0.68750 Per Share Dividend U R U G U A Y AMC ENTERTAINMENT: Calls for Redemption of Two Outstanding Notes * URUGUAY: Completing Preliminary Deal with Investors for Pluna V E N E Z U E L A CMS ENERGY: Utility Unit Declares Quarterly Dividends on Stock DAIMLERCHRYSLER: Finalizes Pact with Canadian Auto Workers DAIMLERCHRYSLER: Chrysler Group In Talks with General Motors PEABODY ENERGY: George Schuller Named as VP in U.S. Operations PETROLEOS DE VENEZUELA: Using US$86.7 Mil. Into Filling Stations PETROLEOS DE VENEZUELA: To Develop Scada System with UCI * VENEZUELA: Needs US$1.7 Billion to Buy All of Cantv Shares * VENEZUELA: To Discuss Bilateral Cooperation Pacts with Ecuador * Upcoming Meetings, Conferences and Seminars - - - - - ================================= A N T I G U A & B A R B U D A ================================= BETONSPORTS: Antiguan Authorities to Oversee Collection ------------------------------------------------------- Antigua and Barbuda's Financial Services Regulatory Commission will help online gambling company BetOnSports PLC in collecting debts to pay bettors and employees, a statement from the government said. Clive Archer, BetOnSports director, stated that the company has been hampered by the "slow return of funds owed to us and we hope that this process will give debtors the reassurance they need to swiftly pay," the Associated Press reports. BetOnSports was ordered last year by a U.S. federal court to stop operating in Antigua and Costa Rica -- from where it accepted bets from thousands of American customers. The federal court ruling said that deposits paid by American bettors should be returned, the AP relates. In December 2006, the Eastern Caribbean Supreme Court ruled that the online gambling company couldn't sell its Antiguan operations. Instead, the company was asked to provide the regulatory commission an account of all its assets, the AP relates. BetonSports is an online gaming company publicly trading on the London Stock Exchange, but has no operations in the United Kingdom. Around 80% of the company's business operates in the United States, where sports betting is illegal except in the State of Nevada. The group also has operations in China, Argentina, and Mexico. ================= A R G E N T I N A ================= AGROCOMERCIAL TAHUEL: Claims Verification Is Until March 28 ----------------------------------------------------------- Ottorino Oscar Mucci, the court-appointed trustee for Agrocomercial Tahuel S.A.'s bankruptcy proceeding, verifies creditors' proofs of claim until March 28, 2007. Mr. Mucci will present the validated claims in court as individual reports on May 28, 2007. A court in the Civil and Commercial Tribunal of Mar del Plata, Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges raised by Agrocomercial Tahuel 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 Agrocomercial Tahuel's accounting and banking records will be submitted in court on June 28, 2007. Mr. Mucci is also in charge of administering Agrocomercial Tahuel's assets under court supervision and will take part in their disposal to the extent established by law. The debtor can be reached at: Agrocomercial Tahuel Hipolito Irigoyen 1826 Mar del Plata Buenos Aires, Argentina The trustee can be reached at: Ottorino Oscar Mucci Rawson 2272 Mar del Plata Buenos Aires, Argentina BANCO DE GALICIA: S&P Argentina Puts D Rating on US$9-Mil. Notes ---------------------------------------------------------------- Banco de Galicia y Buenos Aires' Obligaciones Negociables issued on Nov. 6, 2001, for the original amount of US$12 millon is rated D by the Argentine arm of Standard & Poor's International Ratings. BANKBOSTON: Local Branch Names Will Adapt Standard Bank's --------------------------------------------------------- On March 30, BankBoston's local branches will be named Standard Bank, after the company that purchased the portfolio of BankBoston in Argentina. BankBoston, controlled by Bank of America, ends almost 90 years of banking presence in Argentina, Infobae newspaper said. The sale is part of its strategy to reduce its presence in the region. In December 2006, the Bank transferred its business operations in Chile, Uruguay and Brasil to Bank Itau. As reported on Jan. 22, 2007, Moody's Investors Service changed its outlook to positive, from stable, the long-term foreign currency deposit rating of Caa1 it assigned to BankBoston, NA (Argentina). The outlook change came as a direct result of Moody's changing to positive, from stable, the outlook on Argentina's Caa1 country ceiling for foreign currency deposits and the nation's B2 country ceiling for foreign currency bonds and notes. EL PASO: Reports 2007 Financial & Operational Plan -------------------------------------------------- El Paso Corporation disclosed its financial and operational plan for 2007 in conjunction with its annual analyst meeting. "El Paso's momentum will continue in 2007 as we grow our businesses and reduce our debt," said Doug Foshee, president and chief executive officer of El Paso Corporation. "With the closing of the sale of our ANR pipeline and related assets, we will restore our balance sheet and regain financial flexibility, while maintaining our earnings outlook." "In 2007, we are making the largest commitment to pipeline growth capital in the history of our company as the result of the numerous infrastructure opportunities that we have developed. In addition, we have an aggressive drilling program this year, including an oil development project in Brazil that we expect to add significant new volumes beginning in late 2008." Financial Highlights El Paso's principal financial objectives for 2007 are: -- Earnings per share from continuing operations of US$0.82 to US$0.98; -- Cash flow from operations of US$2.0 billion to US$2.2 billion; and -- US$2.7-billion capital program. The 2007 objectives above assume commodity prices of US$7.00 per million British thermal units for natural gas and US$56.00 per barrel for oil. Note that earnings from ANR and other related assets are reported in discontinued operations. The closing of the ANR transaction is expected imminently. Business Plan Highlights Pipeline Group El Paso's Pipeline Group remains North America's premier natural gas pipeline franchise. No other company is better positioned to develop the infrastructure necessary to adapt the changing sources of supply with the shifting demand patterns within the United States and Mexico. The Pipeline Group is coming off a very successful expansion program with US$392 million of new projects being placed in service during 2006. In 2007, the Pipeline Group will spend US$610 million of growth capital for an array of projects, including the WIC Kanda Lateral, SNG's Cypress Pipeline, TGP's Northeast ConneXion New England project, and CIG's High Plains pipeline. In addition, US$400 million of maintenance capital is planned, which includes roughly US$80 million for the company's pipeline integrity program. El Paso expects this segment of its business to generate stable earnings and cash flow with a long-term average annual EBITDA growth rate of 4 to 6%. Master Limited Partnership El Paso will pursue the formation of an MLP in 2007 to enhance the value and financial flexibility of its pipeline assets and provide a lower-cost source of capital for new projects. Exploration and Production El Paso Exploration & Production Company will continue a relatively low-risk domestic drilling program in 2007 with significant funding for its Camamu offshore exploration and development program in Brazil. Capital spending will total approximately US$1.7 billion, comprised as: -- US$1.2 billion in domestic oil and gas capital -- US$255 million for the South Texas acquisition that closed in January -- US$215 million for international El Paso has maintained a prospect inventory that will support approximately five years of drilling activity, based on current drilling levels. This inventory provides a risked resource potential of 3.3 trillion cubic feet equivalent, which includes 0.7 Tcfe of proved undeveloped reserves. For capital allocation purposes, El Paso is investing capital assuming a constant US$6.00 per MMBtu natural gas price and a US$48.00 oil price. The company will drill approximately 650 gross wells, with 540 of those in the Onshore division, which is characterized by long-lived, repeatable programs. El Paso expects its exploration and production operations to produce between 800 and 860 million cubic feet equivalent per day (MMcfe/d), including its proportionate share of production in Four Star Oil & Gas Company. Production at Four Star is expected to be between 60 MMcfe/d to 65 MMcfe/d in 2007. At the midpoint, this total represents a 4-percent increase over 2006 production levels. Cash operating costs are expected to range between US$1.68 and US$2.00 per thousand cubic feet equivalent with unit DD&A costs at US$2.50 to US$2.75 per Mcfe. The company ended the year with approximately 2.637 trillion cubic feet equivalent of reserves, including 222 billion cubic feet equivalent related to its proportionate interests in Four Star. Through price risk management activities, El Paso has established an average floor price of US$7.69 per MMBtu on 223 Bcf and an average ceiling price of US$11.48 per MMBtu on 133 Bcf of 2007 natural gas production. The floor volumes represent approximately 89% of the company's estimated domestic natural gas production for the year, including Four Star, and provide solid support for El Paso's 2007 plan. In 2006, El Paso's Marketing segment continued to reduce its earnings volatility through the expiration and divestiture of legacy trading positions. In 2007, significant demand charges related to capacity payments on the Alliance pipeline will roll off and the segment has substantially eliminated its commodity price exposure. 2006 Earnings El Paso will report fourth quarter earnings and expects to file its Form 10-K on Feb. 27, 2007. During today's analyst meeting, the company will also review high-level earnings results for 2006. These results are unaudited and subject to change prior to the filing of the SEC Form 10-K. Fourth quarter earnings from continuing operations include a US$0.17 per share loss from the company's divestiture of capacity on the Alliance Pipeline and a US$0.01 per share gain from the mark-to-market of derivatives used to hedge the price risk of Exploration & Production's production volumes. For the year, El Paso had cash flow from continuing operations (not including ANR and related assets) of US$1.8 billion and had capital expenditures of US$2.2 billion. During the year, El Paso sold US$1 billion of non-core assets. At year-end, El Paso had US$14.2 billion of net debt, excluding US$741 million of ANR debt, which has been classified as discontinued operations. Headquartered in Houston, Texas, El Paso Corp. (NYSE: EP) -- http://www.elpaso.com/-- provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America's largest natural gas pipeline system and one of North America's largest independent natural gas producers. The company has operations in Argentina. * * * As reported in the Troubled Company Reporter on Oct. 17, 2006, Moody's Investors Service revised its corporate family rating on El Paso Corp. to B2 in connection with its implementation of the new Probability-of-Default and Loss-Given-Default rating methodology for the broad energy midstream sector. TELEFONICA DE ARGENTINA: Reports ARS222MM Net Profit in 2006 ------------------------------------------------------------ Telefonica de Argentina SA said in a filing with the Buenos Aires stock exchange that its net profit decreased 71% to ARS222 million in 2006, compared to 2005. Business News Americas relates that Telefonica de Argentina's sales increased 11.3% to ARS3.75 billion in 2006, compared to 2005. Its operating expenses, administration and commercialization costs rose 10.7% to ARS2.99. Emiliano Wachs, an analyst at brokerage firm Grupo SBS, told BNamericas that higher operating expenses were related to Telefonica de Argentina's efforts to gain more customers, especially in the mobile telephony segment. Mr. Wachs explained to BNamericas, "When operators compete to increase their client base the cost of gaining and maintaining a client increases." The additional handset subsidies needed to attract new customers also raised operating costs, BNamericas says, citing Mr. Wachs. BNamericas notes that Telefonica de Argentina will invest ARS1.6 billion this year, mainly on continued expansion of the firm's mobile and broadband infrastructure. Telefonica de Argentina will also invest ARS750 million to optimize the current network in its mobile telephony segment to prepare itself in offering third-generation services, BNamericas states. Headquartered in Buenos Aires, Argentina, Telefonica de Argentina SA -- http://www.telefonica.com.ar/-- provides telecommunication services, which include telephony business both in Spain and Latin America, mobile communications businesses, directories and guides businesses, Internet, data and corporate services, audiovisual production and broadcasting, broadband and Business-to-Business e-commerce activities. * * * As reported in the Troubled Company Reporter on Jan. 22, 2007, Moody's Latin America changed the rating outlook to positive from stable for Telefonica de Argentina's foreign currency rating of B2 and for the Aa3.ar (national scale rating). The rating action was taken in conjunction with Moody's outlook change to positive from stable for Argentina's B2 foreign currency ceiling for bonds and notes on Jan. 16, 2007. Telefonica de Argentina's foreign currency rating continues to be constrained by Argentina's B2 ceiling. TRUIDEN SA: Asks for Court Approval to Reorganize Business --------------------------------------------------------- Court No. 20 in Buenos Aires is studying the merits of Truiden SA's petition to reorganize its business after it stopped paying its obligations on Feb. 18, 2007. The petition, once approved by the court, will allow Truiden SA to negotiate a settlement plan with its creditors in order to avoid a straight liquidation. The city's Clerk No. 40 assists the court on this case. The debtor can be reached at: Truiden SA Corrientes 2350 Buenos Aires, Argentina WILL PLAST: Trustee Will Verify Proofs of Claim Until March 19 -------------------------------------------------------------- Ruben Scaletta, the court-appointed trustee for Will Plast SRL's bankruptcy proceeding, will verify creditors' proofs of claim until March 19, 2007. Under the Argentine bankruptcy law, Mr. Scaletta is required to present the validated claims in court as individual reports. Court No. 17 in Buenos Aires will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges raised by Will Plast and its creditors. Inadmissible claims may be subject for appeal in a separate proceeding known as an appeal for reversal. Mr. Scaletta will also submit a general report that contains an audit of Will Plast's accounting and banking records. The report submission dates have not been disclosed. Will Plast was forced into bankruptcy at the behest of Union Obreros y Empleados Plasticos, which it owes US$7,124.04. Clerk No. 34 assists the court in the proceeding. The debtor can be reached at: Will Plast SRL Corrientes 6495 Buenos Aires, Argentina The trustee can be reached at: Ruben Scaletta Piedras 1077 Buenos Aires, Argentina =============== B A R B A D O S =============== BANCAFE INT'L: US$51 Million Pact with RCM Administrator Okayed --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved a settlement between Bancafe International Bank Ltd. and Refco Capital Markets Ltd., an affiliate of Refco Inc., through its duly appointed plan administrator PricewaterhouseCoopers and Marc S. Kirschner. The settlement (i) reflects a resolution on Bancafe's part to allow the setoff required by a guarantee agreement and (ii) avoids the need for future litigation concerning the Bancafe claims. Bancafe filed in July 2006 Claim No. 10132 for US$207,934,213 and Claim No. 10133 for US$173,559 against Refco Capital Markets. The Bancafe Claims are premised on certain securities customer account relationships that existed between RCM and Bancafe before RCM's bankruptcy filing. Pursuant to certain account relationships, Bancafe guaranteed certain obligations of an affiliated entity, Vipasa International Investments Corp., under a Guaranty and Transfer Authorization Agreement with RCM. As of RCM's bankruptcy filing, Vipasa owed RCM at least US$154,456,433 as a result of its account relationships with RCM, which amount Bancafe guaranteed. Pursuant to an order of the High Court of Barbados, PricewaterhouseCoopers EC Inc. has been appointed as custodian to wind up Bancafe's affairs. PricewaterhouseCoopers has filed a Petition for Recognition of Foreign Main Proceeding in the U.S. Bankruptcy Court for the Southern District of Florida. Following arm's-length negotiations, PricewaterhouseCoopers and Marc S. Kirschner, as duly appointed plan administrator for RCM pursuant to the Dec. 15, 2006, Plan Confirmation order, agreed that: (a) Claim No. 10132 will be allowed as an RCM Securities Customer Claim for US$51,535,144, to achieve agreements regarding properly allowable claim amounts and applicable set-offs; (b) Claim No. 10133 will be allowed as an RCM Securities Customer Claim for US$173,559; and (c) all other amounts asserted in the Bancafe Claims, whether liquidated, unliquidated, contingent or otherwise, will be disallowed. About Refco Inc. Based in New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported $16.5 billion in assets and $16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Debtors' Amended Plan was confirmed on Dec. 15, 2006. (Refco Bankruptcy News, Issue No. 56 & 57; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). About Bancafe International Bancafe International Bank Ltd. offered financial services. PricewaterhouseCoopers EC Inc. has been appointed as custodian to wind up Bancafe's affairs, pursuant to an order of the High Court of Barbados. PwC EC, as Bancafe's administrator, filed a chapter 15 petition on Dec. 19, 2006 (Bankr. S.D. Fla. Case No. 06-16712). Gregory S. Grossman, Esq., at Astigarraga Davis Mullins & Grossman, P.A., represents the administrator. PwC EC estimated that Bancafe had US$1 million to US$10 million in assets and more than US$100 million in debts when it filed the chapter 15 petition. ============= B E R M U D A ============= REFCO INC: Judge Drain Approves AIDMA Settlement Agreement ---------------------------------------------------------- The Honorable Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York approved a settlement among Refco F/X Associates LLC, AIDMA Co. Ltd., and RefcoFX Japan K.K., pursuant to Rule 9019(a) of the Federal Rules of Bankruptcy Procedure. As reported in the Troubled Company Reporter on Feb. 16, 2007, pursuant to the Dec. 15, 2006, order confirming Refco Inc.'s Chapter 11 Plan, RJM LLC, as Plan Administrator of the Refco Inc. and its debtor-affiliates' Chapter 11 cases, formed a non- Japan Refco F/X Associates LLC customer committee, which has consent rights with respect to any settlement regarding the litigation involving FXA's assets in Japan. FXA operated an online retail foreign exchange trading business under a Facilities Management Agreement between Refco Group Ltd. LLC and its designated subsidiaries, including FXA, and Forex Capital Markets LLC on a Web-based trading platform created and maintained by FXCM. Richard Levin, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, relates that approximately 35% of FXA's retail customer account balances are attributable to clients in Japan. To facilitate the Japan Clients' ability to make deposits and withdrawals to and from their foreign exchange trading account, FXA determined that it was desirable to open a Japanese yen denominated bank account. However, Mr. Levin notes, since FXA was not domiciled in Japan, FXCM formed a Japanese entity -- RefcoFX Japan K.K. -- to open and maintain a Japanese yen denominated account at the Hong Kong Shanghai Banking Corp. The shares in Refco Japan are presently held by FXCM. While the Japan Clients entered into client agreements with FXA rather than with Refco Japan, the Japan Clients' funds were deposited into Refco Japan's HSBC Account. Mr. Levin states that the HSBC Account currently holds Japanese yen valued at approximately US$32,000,000. The Reorganized Debtors currently estimate that claims filed by Japan Clients total approximately US$38,000,000. Japanese Civil Actions Forty-eight Japan Clients have commenced three separate civil actions in Japan against Refco Japan, asserting claims for the return of funds deposited by those clients and have obtained provisional attachment orders against the funds in the HSBC Account. The attachment orders have restricted FXA's and Refco Japan's ability to transfer the funds in the HSBC Account under Japanese law. In October 2006, FXA commenced an Adversary Proceeding in the Court against FXCM, Refco Japan, HSBC, and the FXA Japan Clients. FXA also commenced legal actions in Japan seeking declaratory judgment that the funds in the HSBC Account are property of FXA's estate and for turnover of those funds. In the alternative, the Turnover Action seeks declaratory relief that the shares in Refco Japan held by FXCM are property of the FXA estate and for turnover of the shares. Consequently, Refco Japan has sought to dismiss the Turnover Action for lack of personal jurisdiction. AIDMA Claim AIDMA Co., Ltd., is one of the largest Japanese clients of FXA. AIDMA's FXA foreign exchange account balances as of July 31, 2006, aggregate to JPY1,258,833,316, or about US$10,600,000, subject to fluctuation with the dollar-yen exchange rate. Although AIDMA is not currently a plaintiff in the Japanese Civil Actions, it has asserted that its rights in the funds held in the HSBC Account are superior to the claims of non-Japan clients. FXA Settles With AIDMA & Refco Japan The Agreement provides, among others, that: (a) AIDMA will be paid JPY723,829,157, or approximately US$6,100,000, which represents 57.5% of AIDMA's July 2006 yen-denominated FX Account balance; (b) AIDMA will be reimbursed US$100,000 to cover its attorneys' fees; and (c) AIDMA will be entitled to receive an additional payment that would provide an equivalent aggregate percentage recovery if FXA, Refco Japan, and FXCM settle with a Japan Client on or before Dec. 31, 2007, for a higher percentage recovery than 57.5% of AIDMA's FX Account balance. The parties further agree that all payments will be made from the HSBC Account in Japanese yen, and will be in full and final settlement of any and all claims that AIDMA has against Refco Japan, FXCM, or the Debtors or their estates. Upon receipt of the settlement payment, AIDMA will withdraw any proofs of claim it has filed in the Debtors' cases. The Refco Administrator asserts that the AIDMA Settlement is reasonable considering that: (i) the trust and tort claims raised by AIDMA and the other Japan Clients raise complex factual and legal issues of both U.S. and Japanese laws, including issues of cross- border enforcement of judgments, that present substantial litigation risks to both sides; and (ii) the resolution of the Japan Clients' claims is further complicated by the fact that: * FXA does not presently control Refco Japan; * there is no stay of actions against Refco Japan or the funds held in the HSBC Account; and * Refco Japan and the HSBC Account are located outside of the U.S. and are subject to the laws of Japan. About Refco Inc. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. (Refco Bankruptcy News, Issue No. 56 & 57; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). REFCO INC: U.S. Court Approves RCM-Bancafe US$51-Mil. Agreement --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York approved a settlement between Bancafe International Bank Ltd. and Refco Capital Markets Ltd., an affiliate of Refco Inc., through its duly appointed plan administrator PricewaterhouseCoopers and Marc S. Kirschner. The settlement (i) reflects a resolution on Bancafe's part to allow the setoff required by a guarantee agreement and (ii) avoids the need for future litigation concerning the Bancafe claims. Bancafe filed in July 2006 Claim No. 10132 for $207,934,213 and Claim No. 10133 for US$173,559 against Refco Capital Markets. The Bancafe Claims are premised on certain securities customer account relationships that existed between RCM and Bancafe before RCM's bankruptcy filing. Pursuant to certain account relationships, Bancafe guaranteed certain obligations of an affiliated entity, Vipasa International Investments Corp., under a Guaranty and Transfer Authorization Agreement with RCM. As of RCM's bankruptcy filing, Vipasa owed RCM at least US$154,456,433 as a result of its account relationships with RCM, which amount Bancafe guaranteed. Pursuant to an order of the High Court of Barbados, PricewaterhouseCoopers EC Inc. has been appointed as custodian to wind up Bancafe's affairs. PricewaterhouseCoopers has filed a Petition for Recognition of Foreign Main Proceeding in the U.S. Bankruptcy Court for the Southern District of Florida. Following arm's-length negotiations, PricewaterhouseCoopers and Marc S. Kirschner, as duly appointed plan administrator for RCM pursuant to the Dec. 15, 2006, Plan Confirmation order, agreed that: (a) Claim No. 10132 will be allowed as an RCM Securities Customer Claim for US$51,535,144, to achieve agreements regarding properly allowable claim amounts and applicable set-offs; (b) Claim No. 10133 will be allowed as an RCM Securities Customer Claim for US$173,559; and (c) all other amounts asserted in the Bancafe Claims, whether liquidated, unliquidated, contingent or otherwise, will be disallowed. About Bancafe International Bancafe International Bank Ltd. offered financial services. PricewaterhouseCoopers EC Inc. has been appointed as custodian to wind up Bancafe's affairs, pursuant to an order of the High Court of Barbados. PwC EC, as Bancafe's administrator, filed a chapter 15 petition on Dec. 19, 2006 (Bankr. S.D. Fla. Case No. 06-16712). Gregory S. Grossman, Esq., at Astigarraga Davis Mullins & Grossman, P.A., represents the administrator. PwC estimated that Bancafe had US$1 million to US$10 million in assets and more than US$100 million in debts when it filed the chapter 15 petition. About Refco Inc. Headquartered in New York, New York, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported US$16.5 billion in assets and US$16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. (Refco Bankruptcy News, Issue No. 56 & 57; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) SCOR: AM Best Stays Ratings Amidst 32.9% Converium Shares Buy ------------------------------------------------------------- A.M. Best Co. has commented that the ratings of SCOR (France) and its rated subsidiaries remain unchanged following the announcement of its acquisition of 32.9% of the share capital of Converium Holding AG (Switzerland), of which 24.6% is pending regulatory approval, and the rejection of the proposal to combine the two companies by the board of Converium. A.M. Best will continue to monitor the situation and would review the appropriateness of the current ratings if the company were to launch a public offer. The main analytical focus would be the impact of the transaction on the combined group's risk- adjusted capitalization and the potential integration risks. Headquartered in La Defense, France, SCOR provides treaty and facultative reinsurance through offices worldwide, each of which specializes in the needs of a specific industry segment and the local language. Most of SCOR's business comes from Europe and North America and is divided into two distinct business segments: Non Life and Life/Accident & Health. SCOR operates in the Carribean through its Bermuda-based subsidiary, Commercial Risk Partners. SEA CONTAINERS: Committees Seek To Create Info Sharing Protocol --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sea Containers Ltd. and the Official Committee of Unsecured Creditors of Sea Containers Services Ltd. jointly ask the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to clarify that Section 1102(b)(3)(A) of the Bankruptcy Code does not authorize or require them to provide access to the Debtors' confidential and other non-public proprietary information, or to privileged information, to the creditors they represent. The Official Committees, however, agree that they will provide access to Privileged Information to any party so long as it is not Confidential Information and the relevant privilege was held and controlled solely by an Official Committee. Pursuant to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, each of the Committees is required to provide access to information for creditors it represents. Derek C. Abbott, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware, relates that the Debtors operate in a competitive industry where the dissemination of confidential information to parties who are not bound by any confidentiality agreement could be disastrous to the Debtors. Confidential Information includes business strategies and intended initiatives. If the Debtors' general creditors could require an Official Committee to give them access to Confidential Information in the Committee's possession, the information could easily become public and could be used by competitors to the detriment of the Debtors' business operations, Mr. Abbott points out. Mr. Abbott notes that other Confidential Information, including compensation levels or other employee information, is of a sensitive nature and their public disclosure would affect employee morale and similar problems for the Debtors, and violate federal and state privacy laws. According to Mr. Abbott, the request will benefit the Committees and their constituents by permitting them to receive Confidential Information from the Debtors without the fear that individual creditors could force them to breach confidentiality. "Unless it is made clear that the risk of dissemination of Privileged Information does not exist, the estate representation structure envisioned by the Bankruptcy Code would become immediately dysfunctional," he adds. About Sea Containers Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA, SCRB) -- 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. 11; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Debtors' exclusive period to file a chapter 11 plan expires on June 12, 2007. The Debtor has until August 11, 2007 to accept solicitations of that plan. SEA CONTAINERS: GNER Signs GBP20MM Lease to Expand Train Fleet -------------------------------------------------------------- Sea Containers Ltd.'s railway subsidiary, Great North Eastern Railway, has leased two diesel High Speed Trains, Transport Briefing reports. According to Transport, the High Speed Trains, which were previously used by Midland Mainline, were procured by GNER from Porterbrook Leasing Company and will be overhauled during the next two years as part of a GBP20,000,000 leasing package. The acquisition was in connection with its new 12 additional weekday services between Yorkshire, the East Midlands and London. The new run was approved by United Kingdom's Office of Rail Regulation and is set for launching on May 21, 2007. With the HSTs, GNER will be able to run a half hourly service between Leeds and London King's Cross and will provide an additional 1,600,000 seats a year. Headquartered in Hamilton, Bermuda, Sea Containers Ltd. (NYSE: SCRA, SCRB) -- 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. 11; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Debtors' exclusive period to file a chapter 11 plan will expire on June 12, 2007. The Debtor has until August 11, 2007, to accept solicitations of that plan. ============= B O L I V I A ============= * BOLIVIA: Nationalization Contracts to Take Effect by March 15 --------------------------------------------------------------- The 44 contracts negotiated with 12 oil firms as part of Bolivian President Evo Morales' nationalization program will come into effect by March 15, Business News Americas reports, citing government news agency ABI. Hydrocarbons Minister Carlos Villegas clarified that the delay in the contracts effective date was caused by technical problems -- errors that were minimal and won't require renegotiation, BNamericas says. President Morales' nationalization program calls for majority ownership in oil fields run by foreign oil majors. Once the plan is enforced, the government's oil revenues are expected to rise to US$2 billion, BNamericas relates, citing figures from national statistics institute INE and economic policy analysis unit Udape. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date ------ ----------- Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 * BOLIVIA: Glencore to Seek Compensation for Vinto -------------------------------------------------- Switzerland's Glencore International AG has threatened to seek compensation through international arbitration for the nationalization of its Vinto tin smelter in Bolivia, the Associated Press reports. As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, an official from Glencore International subsidiary Sinchi Wayra said that the Bolivian government did not approach the parent firm to discuss on Vinto's return to the state. The Bolivian government decided on Feb. 9 to confiscate Vinto, which is controlled by a trust made up of the UK's Commonwealth Development Corp. and Sinchi Wayra, through a "supreme decree." Vinto was privatized in 1996 by the Gonzalo Sanchez de Lozada administration. At that time, the British firm Allied Deals purchased Vinto. The smelter was then sold to Comsur, a company belonging to former President Sanchez de Lozada. The latter then sold Comsur -- now called Sinchi Wayra -- to Glencore International. Bolivian President Morales told AP that the government won't compensate Glencore. "If they want to go to arbitration we are ready to face them. We have recovered for the people something that was once owned by the people," President Morales commented to AP. The nationalization of Vinto retained most of smelter workers, AP states. * * * Fitch Ratings assigned these ratings on Bolivia: Rating Rating Date Country Ceiling B- Jun. 17, 2004 Long Term IDR B- Dec. 14, 2005 Local Currency Long Term Issuer Default Rating B- Dec. 14, 2005 =========== B R A Z I L =========== AFFILIATED COMPUTER: Fitch Assigns Low B Ratings, Removes Watch --------------------------------------------------------------- Fitch Ratings has removed Affiliated Computer Services, Inc. from Rating Watch Negative and affirmed these ratings: -- Issuer default rating at 'BB'; -- Senior secured revolving credit facility at 'BB'; -- Senior secured term loan at 'BB'; and -- Senior notes at 'BB-'. The Rating Outlook is Negative. Approximately US$3.3 billion of debt, including the US$1 billion revolving facility, is affected by Fitch's action. The removal of Affiliated Computer from Rating Watch Negative is based on the company's fulfillment of all financial reporting requirements necessary to maintain covenant compliance with its credit facility agreement following the filing of its 10-K for the fiscal year ended June 2006 and 10-Qs for the quarters ended Sept. 30, 2006 and Dec. 31, 2006. The previous filing delay was the result of the company's internal investigation into its historical stock option grant practices. The investigation concluded in late November 2006, leading to a non-cash, cumulative, pre-tax restatement for previously unrecognized stock-based compensation expense of US$51.2 million and the resignation of the company's CEO and CFO. The cash tax impact associated with the restatement is approximately US$40 million. The Negative Rating Outlook reflects the potential continuation of debt-financed share buybacks funded via the company's uncommitted accordion feature under Affiliated Computer's term loan facility. Remaining term loan availability under the accordion feature for either share repurchases or redemption of Affiliated Computer's existing senior notes was US$2 billion as of Dec. 31, 2006. Although Fitch believes there is some flexibility in the current ratings for incremental debt-financed share repurchases, full utilization of the company's term loan accordion feature would lead to negative rating actions. Furthermore, the Outlook considers a potential reduction of liquidity should Affiliated Computer receive an unfavorable court ruling in its pending lawsuit against its Trustee, in which ACS seeks a declaratory judgment affirming its position that no default has occurred under the indenture as a result of its failure to timely file its 10-K for the year ended June 30, 2006. If the court rules an event of default has occurred, Fitch believes ACS will utilize its US$1 billion revolver to refinance the US$500 million of senior notes that would become immediately due at par value plus accrued interest. Lastly, the Outlook considers the ongoing informal SEC investigation and grand jury subpoena issued by the United States Attorney for the Southern District of New York related to the company's timing of historical stock option grants and identification of two material weaknesses with respect to financial reporting. Rating concerns continue to center on Affiliated Computer's uncertain capital structure plans, which could include further debt-financed stock buybacks; the company's acquisitive nature, which could lead to further increases in total debt; and limited, but improving, organic revenue growth in the government segment. Positively, the ratings are supported by Affiliated Computer's consistent, although pressured, free cash flow due primarily to higher interest expense from increased debt balances and higher capital expenditures, which Fitch expects to moderate; significant recurring revenue base from long-term outsourcing contracts; and favorable growth prospects for business process outsourcing, which accounted for approximately 75% of Affiliated Computer's total revenue in fiscal year 2006. Lastly, the company experienced a material improvement in renewal rates, which rose to 95% of available renewal dollars in the first half of fiscal 2007 ended Dec. 31, 2006, compared with only 85% in fiscal 2006. Even though the company's senior notes are equally and ratably secured with the senior secured credit facilities under the terms of the related indenture, the rating of 'BB-' for the senior notes incorporates the fact that the secured credit facilities have the sole rights to Affiliated Computer's accounts receivable, which represented approximately 21% of total assets and 43% of tangible assets as of Dec. 31, 2006. The credit facility is secured by a first priority perfected pledge of all notes owned by the borrowers and guarantors, all capital stock of predominantly all domestic subsidiaries and certain foreign subsidiaries of Affiliated Computer, and a first priority perfected security interest in all other assets owned by the Company, including tangible and intangible assets. As of June 30, 2006, the financial covenant ratios contained in the credit facility, which are based on a quarterly schedule that becomes more restrictive over time relative to the amount of covenant adjusted debt outstanding, consist of bank-defined maximum consolidated senior leverage ratio of 3 times or x, maximum consolidated total leverage ratio of 4x and interest coverage covenant of 4.5x. Fitch estimates leverage (total debt/operating EBITDA) increased as expected to 2.8x as of Dec. 31, 2006 (bank-defined = 2.4x) from 1.7x for fiscal 2006 ended June 30, 2006, due to increased borrowings. Interest coverage (operating EBITDA/ gross interest expense) declined to 7.1x for the latest 12 months ended Dec. 31, 2006, (bank-defined=7.4x) compared with 14x for fiscal 2006. Fitch believes credit protection measures could deteriorate further if Affiliated Computer uses the term loan accordion feature to support additional share repurchase programs. Total debt as of Dec. 31, 2006, was approximately US$2.6 billion, consisting primarily of US$1.8 billion of secured term loans due 2013, US$275 million of borrowings under the revolving credit facility, US$250 million of senior notes due June 2010 and US$250 million of senior notes due June 2015. Affiliated Computer's near-term debt maturities are manageable with a very limited amount of debt due in the next three fiscal years aside from US$18 million in annual amortization associated with current secured term loans of US$1.8 billion. The next material debt obligation is US$268 million in fiscal year 2010, consisting of US$250 million of senior notes and US$18 million of term loan amortization. However, the senior notes would be immediately due if the court rules that an event of default has occurred. Fitch believes Affiliated Computer's liquidity is adequate and was supported by approximately US$333 million of cash at Dec. 31, 2006, and US$584 million of availability on its US$1 billion secured revolving credit facility expiring 2012 due to US$275 million of borrowings and US$141 million of outstanding letters of credit. The credit facility also includes an uncommitted accordion feature enabling the Company to increase it by up to US$750 million for general corporate purposes under certain circumstances. Liquidity is further supported by Affiliated Computer's consistent, but pressured, free cash flow that totaled US$170 million for the LTM ended Dec. 31, 2006, down from adjusted free cash flow of US$328 million in fiscal 2006, which excludes transition services previously provided by Mellon Financial Corp. in conjunction with Affiliated Computer's acquisition of Mellon's Human Resources business and other less significant non-recurring items. Dallas-based Affiliated Computer Services Inc. has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland and Singapore. ALCATEL-LUCENT: In Talks with Spanish Unions Over 310 Job Cuts -------------------------------------------------------------- Alcatel-Lucent met with representatives of Spain Works Council to begin discussing how the company's synergy plans will impact employee positions in Spain. In April 2006, when the merger between Alcatel and Lucent Technologies was announced, the companies stated the primary driver of the merger was to generate growth in revenues and earnings while yielding synergies of about EUR1.4 billion in annual pre-tax cost synergies within three years after the merger, which closed on Nov. 30, 2006. On Feb. 9, the company announced its results and provided an update on its integration efforts. It believes the combination of the original synergy plan and additional cost reductions will enable it to realize a total of EUR1.7 billion pre-tax cost savings within three years. The cost reductions will entail further reductions to the workforce than was originally planned, and Alcatel-Lucent now expects to reduce headcount by about 12,500 positions over the next three years. The topics presented to the works council are a starting point for communication with employees and unions prior to any actions. "We have undertaken a thorough and thoughtful review of our operations in Spain, and we anticipate that we need to eliminate some 310 positions over the next 24 months," said Alfredo Redondo, President Alcatel Lucent for Iberia. "These are difficult decisions, and we will be sensitive to employees and treat them with the dignity and respect they deserve. As we have done in the past, we will do what we can to minimize the impact of this decision." Currently, Alcatel-Lucent employs some 1,250 people in Spain, in a variety of positions. The force reductions primarily reflect duplications in positions and rationalization in product and solution portfolio created with the merger of the two 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. 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 of Feb. 7, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB- rating. It's Short-Term Corporate Credit rating stands at B. Moody's on the other hand put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. ALCATEL-LUCENT: To Lay Off 12% of France Workforce -------------------------------------------------- Within the framework of the global cost reduction plan of EUR1.7 billion confirmed by Alcatel-Lucent on Feb. 9, the management teams of Alcatel-Lucent France, ABS and Compagnie Financiere Alcatel-Lucent disclosed of their respective restructuring projects to the social partners in France. These plans are related to previous announcements concerning the merger of Alcatel and Lucent Technologies, the acquisition of Nortel's UMTS activities, as well as the highly competitive market environment. The objective of the plans is to quickly rationalize duplications in positions resulting from the recent strategic moves, adapt the company's business model to the business model of our customers (carriers and enterprises), as well as align our investments with our perspective. The restructuring plans could impact 1,468 positions by the end of 2008, which represents about 12% of Alcatel-Lucent's workforce in France. The Parisian area will be slightly more impacted than the rest of the country. However, the plan includes the merging of sites in Brittany, reinforcing the two key sites of Orvault (Nantes) and Lannion by redeploying the competences currently based in Rennes-Cesson and Rennes-St Gregoire. Employees will be offered a voluntary program based on four main measures: -- internal mobility for job openings in 2007-2008; -- support for the creation of professional projects outside the company (with support for creation or expansion of a new company); -- an agreement named "Projet Activit, Seniors" which offers to 55-year old and older employees the opportunity to continue a professional activity (either a full- or part-time job or, professional or humanitarian activity) for a period of 36 months; -- a proposal named "Cessation d'Activit, Par Anticipation" which allows employees to stop working four years before their legal retirement age. Within Alcatel-Lucent, France remains a major competence center, with several worldwide excellence centers for: 3G, WiMAX, Convergence, Long Distance Optics, especially submarine activities, Enterprise, and Vacuum Technology activities. France, together with the Bell Labs in the United States, is the major Research & Innovation center of Alcatel-Lucent. The company's executive offices as well as the operational center for the Europe and South region are also based in France. The Europe and South region covers the Mediterranean area, Africa, Middle East, South Asia and Latin America. 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. 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 of Feb. 7, Alcatel-Lucent's Long-Term Corporate Credit rating and Senior Unsecured Debt carry Standard & Poor's BB- rating. It's Short-Term Corporate Credit rating stands at B. Moody's on the other hand put a Ba2 rating on Alcatel's Corporate Family and Senior Debt rating. Lucent carries Moody's B1 Senior Debt rating and B2 Subordinated debt & trust preferred rating. Fitch rates Alcatel's Issuer Default Rating and Senior Unsecured Debt rating at BB. AMERICAN TOWER: Completes Cash Tender Offer for 5% Conv. Notes -------------------------------------------------------------- American Tower Corporation has completed the cash tender offer for its 5% Convertible Notes due 2010. The note holders' option to surrender their Notes for repurchase by the company expired at 5:00 p.m., New York City time, on Feb. 20, 2007. The company has been advised by the depositary, The Bank of New York Trust Company, N.A., that US$192,505,000 in aggregate principal amount of Notes (approximately 76% of the US$252,188,000 outstanding principal amount) was validly surrendered for repurchase and not withdrawn (excluding any additional Notes tendered pursuant to guaranteed delivery procedures). The repurchase price for the Notes was US$1,000 per US$1,000 principal amount, plus accrued and unpaid interest up to but excluding Feb. 20, 2007. The aggregate repurchase price for all Notes validly surrendered for repurchase and not withdrawn is approximately US$192.6 million. Payment for the Notes will be made with cash on hand and proceeds from borrowings under the Company's credit facilities. Headquartered in Boston, Massachusetts, American Tower Corp. (NYSE: AMT) -- http://www.americantower.com/-- is an independent owner, operator and developer of broadcast and wireless communications sites in the United States, Mexico and Brazil. American Tower owns and operates over 22,000 sites in the United States, Mexico, and Brazil. Additionally, American Tower manages approximately 2,000 revenue producing rooftop and tower sites. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 16, 2007, Moody's Investors Service upgraded the corporate family rating of American Tower Corp. to Ba1 from Ba2, affirmed the company's SGL-1 liquidity rating and changed the ratings of its various debt instruments pursuant to the loss given default methodology. This concludes the ratings review commenced Dec. 11, 2006. Moody's said the outlook is stable. As reported in the Troubled Company Reporter-Latin America on Feb. 14, 2007, Fitch Ratings has upgraded the ratings on American Tower Corp. and its subsidiaries as: American Tower Corp. -- Issuer Default rating to 'BB+' from 'BB-'; -- Senior Unsecured notes to 'BB+' from 'BB-'. American Towers Inc. -- IDR to 'BB' from 'BB-'. SpectraSite Communications Inc. -- IDR to 'BB' from 'BB-'. BANCO BRADESCO: Paying Monthly Capital Interest on April 2 ---------------------------------------------------------- Banco Bradesco S.A., in conformity with the System for Monthly Payment to Stockholders, will pay on April 2, 2007, Interest on Own Capital related to the month of March 2007, in the amount of BRL0.036052500 per common stock and BRL$0.039657750 per preferred stock to the stockholders registered in the company's records on March 1, 2007. The payment, net of the Withholding Income Tax of 15%, except for legal entity stockholders exempted from the referred taxation, which will receive for the stated amount, will be made through the net amount of BRL$0.030644625 per common stock and BRL$0.033709088 per preferred stock, as follows: * credit in the current account informed by the stockholder; * the stockholders who do not inform their banking data or do not hold a current account in a Financial Institution must go to a Bradesco Branch on their preference having their identification document and the "Notice For Receipt of Earnings from Book-Entry Stocks", sent by mail to those having their address updated in the Company's records; * to those with stocks held on custody with the CBLC - Companhia Brasileira de Liquidacao e Custodia (CBLC - Brazilian Clearing and Depository Corporation), the payment of interest will be made to CBLC, which will transfer them to the stockholders through the Depository Agents. Headquartered in Sao Paulo, Brazil, Banco Bradesco S.A. Banco -- http://www.bradesco.com.br/-- prides itself on serving low-and medium-income individuals in Brazil since the 1960s. Bradesco is Brazil's largest private bank, with more than 3,000 banking branches, and also a leader in insurance and private pension management. Bradesco has branches throughout Brazil as well as one in New York, and Japan. Bradesco offers Internet banking, insurance, pension plans, annuities, credit card services (including football-club affinity cards for the soccer-mad population), and Internet access for customers. The bank also provides personal and commercial loans, along with leasing services. * * * As reported on Jan. 26, 2007, Fitch Ratings placed these ratings assigned to Banco BMC SA on Rating Watch Positive: -- Local foreign currency long-term Issuer Default Rating 'B-'; -- Foreign currency long-term IDR 'B-'; -- Local currency short-term 'B'; -- Fixed-rate notes issuance maturing 2008 'B-/RR4'; -- Support '5'; -- National Short-Term rating 'F3(bra)'; and -- National long-term rating 'BBB-(bra)'. In addition, Fitch affirmed BMC's: -- Individual rating at 'D/E'; and -- Foreign currency short-term at 'B'. At the same time, Fitch also affirmed these IDRs on Bradesco, with a Stable Outlook: -- Long-term foreign currency at 'BB+'; -- Long-term local currency at 'BBB-'; -- Individual rating at 'B/C'; -- Local currency short-term at 'F3'; -- Short-term at 'B'; -- Support rating of '4'; -- National short-term rating 'F1+(bra)'; and -- National long-term rating 'AA+(bra)'. As reported on Nov. 30, 2006, Moody's Investors Service upgraded these ratings of Banco Bradesco SA: -- long-term foreign currency deposits to Ba3 from B1; and -- long- and short-term global local currency deposit ratings to A1/Prime from A3/Prime-2. Moody's said the ratings outlook is stable. BAUSCH & LOMB: Files 2005 Annual Report with U.S. SEC ----------------------------------------------------- Bausch & Lomb Inc. filed its annual report on Form 10-K for the year ended Dec. 31, 2005, with the U.S. Securities and Exchange Commission on Feb. 7, 2007. The company was unable to timely file its 2005 Annual Report due to: -- ongoing independent investigations conducted by the Board of Directors' Audit Committee; -- expanded year-end procedures that were not complete; -- expanded procedures with respect to the accounting for income taxes that were not complete; and -- continued efforts to complete the company's assessment of its internal control over financial reporting. As a result of the Audit Committee's investigations and the expanded procedures, the company identified errors made in the application of generally accepted accounting principles that impacted previously reported financial statements. Consequently, management determined that it should restate its previously issued: -- consolidated financial statements for fiscal years ended Dec. 27, 2003, and Dec. 25, 2004; -- financial information for the fiscal years ended 2001 and 2002 (including a cumulative increase to 2001 beginning retained earnings of US$34,000,000); and -- financial reports for the first and second quarters of 2005. The company included the restated financial statements for the years 2003 and 2004 in the 2005 annual report. Financials For the year ended Dec. 31, 2005, the company reported US$19,200,000 of net income on US$2,353,800,000 of net sales, compared with US$153,900,000 of net income on US$2,233,500,000 of net sales for the fiscal year ended Dec. 25, 2004. At Dec. 31, 2005, the company had US$3,416,400,000 in total assets, US$2,108,000,000 in total liabilities, and US$1,283,900,000 in total shareholders' equity. A full-text copy of the company's 2005 annual report is available for free at http://ResearchArchives.com/t/s?19c0 Headquartered in Rochester, New York Bausch & Lomb Inc. -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico * * * As reported in the Troubled Company Reporter-Europe on Feb. 6, Moody's Investors Service downgraded Bausch & Lomb Inc.'s senior unsecured debt to Ba1 and continues to review all ratings for possible downgrade. Moody's also assigned the company a Ba1 Corporate Family Rating. CELESTICA INC: Yourman Represents Shareholders in Class Suit ------------------------------------------------------------ Celestica Inc.'s shareholders who purchased or acquired the securities of the company during the period July 27, 2006, through Dec. 12, 2006, were represented by Yourman Alexander & Parekh LLP, in filing lawsuits seeking class action status against the company. The lawsuits allege, in part, that the company and certain of its officers and directors violated federal securities laws by issuing statements, concerning the company's financial performance and future prospects, that were materially false and misleading when made. It was further alleged that when making these statements, the company failed to disclose and misrepresented the fact that the company was experiencing declining demand in its Mexican operations and in its Information Technology and Communications market segments, and therefore had no reasonable basis to project adjusted earnings per share ranging from US$0.12 to US$0.20. The shareholders said the lawsuits were pending in the United States District Court for the Southern District of New York. The shareholders disclosed that the shares of Celestica declined when this undisclosed information became public. About Celestica Inc. Based in Toronto, Ontario, Celestica, Inc. (NYSE: CLS, TSX: CLS/SV) -- http://www.celestica.com/-- provides electronic manufacturing services to original equipment manufacturers in the computing, telecommunications, aerospace and defense, automotive, consumer electronics, and industrial sectors in Asia, Mexico, Puerto Rico, Brazil, and Europe. Its solutions comprise design and engineering, manufacturing and systems integration, and fulfillment, as well as after-market services. The company has a strategic alliance with Bartolini Progetti S.p.a. Celestica was incorporated as Celestica International Holdings, Inc. in 1996 and changed its name to Celestica, Inc. The company is based in Toronto, Canada. Celestica, Inc. is a subsidiary of the Onex Corp. * * * As reported in the Troubled Company Reporter on Feb. 2, 2007, Standard & Poor's Ratings Services placed its ratings, including its 'BB-' long-term corporate credit rating, on Celestica Inc. on CreditWatch with negative implications. This action follows the company's weak fourth-quarter (ended Dec. 31, 2006) operating results, which reflected larger-than-expected weakness in end-market demand, particularly with respect to key telecommunications clients and persistent problems at the company's Mexican operations. EMI GROUP: Mulls Buyback of EUR1.47-Billion Bonds ------------------------------------------------- EMI Group Plc may repurchase EUR1.47 billion of bonds, Bloomberg News reports citing traders of credit derivatives. According to Bloomberg, credit default swaps fell EUR25,000 to EUR160,000 based on the company's EUR10 million debt on speculation that EMI may replace existing bonds with a GBP1 billion debt backed by its music-publishing business. The move could spare the company around GBP20 million a year in interest, Bloomberg cited The Sunday Times. "The decline in the credit-default swap price is a reaction to the weekend report that the company may securitize part of its business and pay back its bonds," Guy Stear, high-yield credit strategist at Societe Generale SA in Paris was quoted by Bloomberg as saying. As reported in the TCR-Europe on Feb. 16, EMI expects its recorded music division's revenue for the financial year ending March 31, 2007, to fall by around 15% at constant currency compared to the prior year. On Jan. 12, the company warned that revenues for the year could decline by around 6% to 10% and expects that disruption from the restructuring initiatives will constrain revenue at EMI Music until March 31, 2008. According to the Wall Street Journal, Eclectica Asset Management, a hedge-fund shareholder who has a 0.75% stake in the company, urge EMI to be transparent in the values of its assets. Eclectica also wants the company to disclose the net revenue of its music publishing and to seek advise from an investment bank on the value of its music-publishing unit. About EMI Headquartered in London, United Kingdom, EMI Group PLC -- http://www.emigroup.com/-- is the world's largest independent music company, operating directly in 50 countries and with licensees in a further 20. The group has operations in Brazil, China, and Hungary. The group employs over 6,600 people. Revenues in 2005 were near EUR2 billion and operating profit generated was over EUR225 million. At March 31, 2006, EMI Group's consolidated balance sheet revealed GBP1.817 billion in total assets, GBP2.544 billion in total liabilities and GBP726.6 million in shareholders' deficit. * * * On Jan. 15, Moody's Investors Service downgraded EMI Group Plc's Corporate Family and senior debt ratings to Ba3 from Ba2. All ratings remain under review for possible further downgrade. As reported in the TCR-LA on Feb. 19, Standard & Poor's Ratings Services kept the U.K.-based music major EMI Group PLC's ratings at BB-/Watch Neg/B, after the company announced it expects revenues in its recorded music division to decline by 15% in the fiscal year ended March 31, 2007, at constant currencies. The ratings also remain on CreditWatch with negative implications, where they were placed on Feb. 5, 2007. TRANSAX INTERNATIONAL: Inks Standstill Agreement with Cornell ------------------------------------------------------------- Transax International Limited has entered into a Standstill Agreement with its Series A Preferred Shareholder, Cornell Capital Partners LP. The company also signed a similar Standstill Agreement with convertible note holder Scott and Heather Grimes. Under the terms of the agreements, and subject to the conditions specified therein, the Preferred Stockholder and Convertible Note Holder have agreed that they will not convert or sell any of their holdings during the standstill period, which extends until April 30, 2007. As a result of the agreement, the company has committed to a full repayment of the US$1.6 million equity investment along with the redemption premium to Cornell as well as a similar arrangement for the US$225,000 convertible debenture to Scott and Heather Grimes. A full-text copy of Cornell's Standstill Agreement is available for free at http://ResearchArchives.com/t/s?1a23 A full-text copy of the Grimeses' Standstill Agreement is available for free at http://ResearchArchives.com/t/s?1a24 Stephen Walters, president and CEO of Transax, commented, "'Last month we announced our intent of selling our Brazilian operations and satisfying all outstanding liabilities. To this extent, we have signed these standstill agreements with the anticipation of closing the proposed transaction in the coming weeks. These agreements are the first step to ultimately reducing our liabilities, as well as alleviating concerns within the investment community regarding our obligations." About Transax International Limited Based in Miami, Florida, Transax International Limited (OTCBB: TNSX) -- http://www.transax.com/-- provides hospitals, physicians and health insurance companies using health information management systems to manage coding, compliance, abstracting and recording of management processes. The Company's subsidiaries, TDS Telecommunication Data Systems LTDA provides services in Brazil; ransax Australia Pty Ltd. provides those services in Australia; and Medlink Technologies, Inc., initiates research and development. At Sept. 30, 2006, the company's balance sheet showed US$2,003,214 in total assets, US$6,179,904 in total liabilities, resulting in a US$4,176,690 in total stockholders' deficit. * BRAZIL: Inks 2 Accords with Jamaica for Sugar Sector Upgrades --------------------------------------------------------------- Brazilian External Affairs Minister Celso Amorim has signed two pacts with Senator Anthony Hylton, Jamaica's Minister of Foreign Affairs and Foreign Trade, for the modernization of the former's sugar sector, as well as the development of ethanol and technical cooperation in tropical fruit processing, the Jamaica Gleaner reports. The Jamaican Foreign Affairs Ministry said in a statement that the agreements also include training Jamaicans in production and management practices in the sugar industry, said a release from the. The Gleaner relates that Brazil has given the undertaking to identify sugar cane varieties adaptable to Jamaican conditions, including those resistant to drought. Brazil has also agreed to consider the possibility of providing technical aid to Jamaica in the construction of a soya bean processing plant, as well as in the production of castor bean oil for use as bio-fuel. Jamaica is keen on having Brazilian state-run Petroleo Brasileiro participate in oil and gas exploration being undertaken in the nation's waters, The Gleaner says, citing Minister Hylton. Minister Hylton told The Gleaner that he had productive discussions with Brazilian sugar firm Cosan on its possible involvement in the local sugar and ethanol sectors. * * * As reported on Nov. 24, 2006, Standard & Poor's Ratings Services revised its outlook on its long-term ratings on the Federative Republic of Brazil to positive from stable. Standard & Poor's also affirmed these ratings on the Republic of Brazil: -- 'BB' for long-term foreign currency credit rating, -- 'BB+' for long-term local currency credit rating, and -- 'B' for short-term currency sovereign credit rating. =========================== C A Y M A N I S L A N D S =========================== AZUR HOLDINGS: Proofs of Claim Must be Filed by March 23 -------------------------------------------------------- Creditors of Azur Holdings, Ltd., which is being voluntarily wound up, are required to present proofs of claim by March 23, 2007, to Peter D. Anderson and William E.J. Walmsley, the company's liquidators. Creditors are required to present proofs of claim personally or through their solicitors at the time and place that the liquidator specified. Failure to present claims would mean exclusion from the benefit of any distribution that the company will make. The liquidators can be reached at: Peter D. Anderson William E.J. Walmsley P. O. Box 897 One Capital Place, Third Floor George Town, Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Fax: (345) 949-8295 DRYDEN LEVERAGED: Sets Final Shareholders Meeting for March 22 -------------------------------------------------------------- Dryden Leveraged Loan CDO 2002-II will hold its final shareholders meeting on March 22, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be followed during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) requesting the members' approval of the liquidation fees incurred to date, approval of the liquidator's estimated costs to completion, and 3) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Richard Gordon Maples Finance Ltd. P.O. Box 1093 George Town, Grand Cayman Cayman Islands LYRA LTD: Proofs of Claim Must be Filed by March 23 --------------------------------------------------- Creditors of Lyra, Ltd., which is being voluntarily wound up, are required to present proofs of claim by March 23, 2007, to Peter D. Anderson and William E.J. Walmsley, the company's liquidators. Creditors are required to present proofs of claim personally or through their solicitors at the time and place that the liquidator specified. Failure to present claims would mean exclusion from the benefit of any distribution that the company will make. The liquidators can be reached at: Peter D. Anderson William E.J. Walmsley P. O. Box 897 One Capital Place, Third Floor George Town, Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Fax: (345) 949-8295 MINCS-MAGNUM: Final Shareholders Meeting Is Set for March 22 ------------------------------------------------------------ Mincs-Magnum, Ltd. will hold its final shareholders meeting on March 22, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be followed during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) requesting the members' approval of the liquidation fees incurred to date, approval of the liquidator's estimated costs to completion, and 3) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Richard Gordon Maples Finance Ltd. P.O. Box 1093 George Town, Grand Cayman Cayman Islands PAGODA HOLDINGS: Proofs of Claim Must be Filed by March 23 ---------------------------------------------------------- Creditors of Pagoda Holdings, Ltd., which is being voluntarily wound up, are required to present proofs of claim by March 23, 2007, to Peter D. Anderson and William E.J. Walmsley, the company's liquidators. Creditors are required to present proofs of claim personally or through their solicitors at the time and place that the liquidator specified. Failure to present claims would mean exclusion from the benefit of any distribution that the company will make. The liquidators can be reached at: Peter D. Anderson William E.J. Walmsley P.O. Box 897 One Capital Place, Third Floor George Town, Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Fax: (345) 949-8295 QUELLOS LF: Proofs of Claim Must be Filed by March 23 ----------------------------------------------------- Creditors of Quellos LF, Ltd., which is being voluntarily wound up, are required to present proofs of claim by March 23, 2007, to Jane Fleming and Melanie Harbron, the company's liquidators. Creditors are required to present proofs of claim personally or through their solicitors at the time and place that the liquidator specified. Failure to present claims would mean exclusion from the benefit of any distribution that the company will make. The liquidator can be reached at: Jane Fleming Queensgate Bank & Trust Company Ltd. P.O. Box 30464 George Town, KY1-1202 Grand Cayman, Cayman Islands Tel: 345 945 2187 Fax: 345 945 2197 SCOTTISH RE: 4Q Earnings Report Cues Fitch to Lower Ratings ----------------------------------------------------------- Fitch Ratings has downgraded Scottish Re Group Ltd.'s (NYSE: SCT) ratings: Scottish Re Group Ltd.: -- Issuer Default Rating to 'B+' from 'BB'; -- Preferred Stock to 'B-' from 'B+'; and -- 'RR6' Recovery Rating Assigned. Operating subsidiaries: -- Insurer Financial Strength to 'BB+' from 'BBB'. All ratings remain on Rating Watch Evolving. The ratings action follows Scottish Re's release of earnings for the fourth quarter of 2006, which highlight the business and operating challenges and uncertainties that the Company continues to face. Excluding one-time items, run-rate operating earnings capacity is significantly below Fitch's ratings expectations. Of note was the significant impact of higher than estimated retrocession costs, as well as adverse mortality and lapse experience. Additional items such as lower new business profits, and higher financing and collateral costs can be attributed to the Company's liquidity issues and ratings downgrades in the summer and fall of 2006. The rating action reflects Fitch's heightened concern that the pending agreement with MassMutual Capital Partners LLC and Cerberus Capital Management, L.P. or MassMutual/Cerberus could be called off due to further deterioration in Scottish Re's business position and earnings profile as discussed in the above-mentioned earnings release. The ratings remain on Rating Watch Evolving reflecting the pending MassMutual/Cerberus agreement, which is expected to result in a new equity investment into the company of US$600 million. The successful close of that agreement would alleviate near-term concerns for collateral financing in 2007, is expected to have a positive impact on Scottish Re's business prospects and franchise, and may result in an upgrade in the ratings assigned to SCT and its affiliates sometime shortly following the close of the transaction. If the transaction does not close, Fitch expects that the ratings of the holding company would be downgraded to a level no higher than 'CC' and the IFS ratings would be downgraded to no higher than 'CCC'. These ratings have been downgraded and remain on Rating Watch Evolving: Scottish Annuity & Life Insurance Company (Cayman) Limited -- IFS downgraded to 'BB+' from 'BBB' Scottish Re (U.S.) Inc. -- IFS downgraded to 'BB+' from 'BBB' Scottish Re Limited -- IFS downgraded to 'BB+' from 'BBB' Scottish Re Group Limited -- IDR downgraded to 'B+' from 'BB'; and -- 7.25% US$125 million non-cumulative perpetual preferred stock downgraded to 'B-' from 'B+'; 'RR6' Assigned. Scottish Re Group Limited -- http://www.scottishre.com/-- provides reinsurance of life insurance, annuities and annuity- type products through its operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and Windsor, England. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. SCOTTISH RE: AM Best Continues Review After Reporting Loss ---------------------------------------------------------- A.M. Best Co. has commented that the financial strength, issuer credit and debt ratings of Scottish Re Group Limited (Cayman Islands) [NYSE: SCT] and its operating subsidiaries remain unchanged and continue to be under review with positive implications following the announcement by Scottish Re that its net loss for fourth quarter and full year 2006 was US$233.8 million and US$376.7 million, respectively. The loss for fourth quarter 2006 was driven primarily by a number of write-downs including goodwill, deferred acquisition costs, reinsurance recoverables and deferred tax assets. Moreover, Scottish Re's operating earnings from its North American reinsurance segment were adversely affected by higher mortality and unfavorable lapse experience. The results for 2006 continue to reflect the difficulties Scottish Re has with earlier tax planning strategies, weak accounting systems and higher expenses associated with collateral financing and interest costs as a result of rating downgrades and liquidity concerns. Despite the reported loss in fourth quarter 2006, which was significantly below expectations, A.M. Best is maintaining Scottish Re's ratings based on the belief that MassMutual Capital Partners LLC and Cerberus Capital Management L.P. will move forward with their previously announced intent to invest US$600 million into Scottish Re. In addition, Scottish Re is amending the original terms of the agreement to provide for additional indemnification to these investors of up to US$68.5 million should mortality experience deteriorate below a predetermined level over the next three years. A.M. Best expects the transaction to close in second quarter 2007. The capital investment will be a major step toward improving Scottish Re's liquidity posture and should enable it to resume meaningful new business activities. Scottish Re's statutory results for its onshore operating companies are not yet public. Although the main items driving the reported net loss are primarily GAAP related and thus not expected to materially impact U.S. statutory results, A.M. Best will revisit Scottish Re's ratings should statutory earnings and capital levels be reported significantly below A.M. Best's expectations. Furthermore, any deterioration in the perceived commitment of the acquiring entities by A.M. Best would result in a downgrading of the company's ratings. A.M. Best last rated Scottish Re last Nov. 28, 2006. The same ratings continue to be under review after the announcement of the Scottish Re's net loss for last year. Nov. 28, 2006 Ratings: The FSRs of B (Fair) and the ICRs of "bb+" remain under review, and the implications have been revised to positive from negative for the following subsidiaries of Scottish Re Group Ltd.: -- Scottish Annuity & Life Insurance Company (Cayman) Ltd. -- Scottish Re (U.S.), Inc. -- Scottish Re Life Corporation -- Scottish Re Limited -- Orkney Re, Inc. The ICR of "b" remains under review and the implication has been revised to positive from negative for Scottish Re Group Ltd. The following debt ratings remain under review, and the implications have been revised to positive from negative: Scottish Re Group Limited: -- "b" on $115 million 4.5% senior unsecured convertible notes, due 2022 -- "ccc+" on $143 million 5.875% of hybrid capital units, due 2007 -- "ccc+" on $125 million non-cumulative preferred shares Stingray Pass-thru Trust: -- "bb" on $325 million senior unsecured pass-thru certificates, due 2012 The following indicative ratings for debt securities under the shelf registration remain under review, and the implications have been revised to positive from negative: Scottish Re Group Limited: -- "ccc+" on preferred stock -- "b-" on subordinated debt -- "b" on senior unsecured debt -- Scottish Holdings Statutory Trust II and III -- "b-" on preferred securities Scottish Re Group Limited -- http://www.scottishre.com/-- provides reinsurance of life insurance, annuities and annuity- type products through its operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and Windsor, England. At March 31, 2006, the reinsurer's balance sheet showed US$12.2 billion assets and US$10.8 billion in liabilities. SEQUILS-MAGNUM: Final Shareholders Meeting Is Set for March 22 -------------------------------------------------------------- Sequils-Magnum, Ltd., will hold its final shareholders meeting on March 22, 2007, at: Queensgate House George Town, Grand Cayman Cayman Islands These agendas will be followed during the meeting: 1) accounting of the liquidation process showing how the winding up has been conducted during the preceding year, 2) requesting the members' approval of the liquidation fees incurred to date, approval of the liquidator's estimated costs to completion, and 3) hearing any explanation that may be given by the liquidator. A member entitled to attend and vote at the meeting will be allowed to appoint a proxy, who need not be a member, in his stead. The liquidator can be reached at: Richard Gordon Maples Finance Ltd. P.O. Box 1093 George Town, Grand Cayman Cayman Islands VEGA ASSET: Proofs of Claim Must be Filed by March 23 ----------------------------------------------------- Creditors of Vega Asset Management II, Ltd., which is being voluntarily wound up, are required to present proofs of claim by March 23, 2007, to Peter D. Anderson and William E.J. Walmsley, the company's liquidators. Creditors are required to present proofs of claim personally or through their solicitors at the time and place that the liquidator specified. Failure to present claims would mean exclusion from the benefit of any distribution that the company will make. The liquidators can be reached at: Peter D. Anderson William E.J. Walmsley P.O. Box 897 One Capital Place, Third Floor George Town, Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Fax: (345) 949-8295 VEGA INT'L: Proofs of Claim Must be Filed by March 23 ----------------------------------------------------- Creditors of Vega International Distributors, Ltd., which is being voluntarily wound up, are required to present proofs of claim by March 23, 2007, to Peter D. Anderson and William E.J. Walmsley, the company's liquidators. Creditors are required to present proofs of claim personally or through their solicitors at the time and place that the liquidator specified. Failure to present claims would mean exclusion from the benefit of any distribution that the company will make. The liquidators can be reached at: Peter D. Anderson William E.J. Walmsley P.O. Box 897 One Capital Place, Third Floor George Town, Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Fax: (345) 949-8295 VEGAPLUS ASSET: Proofs of Claim Must be Filed by March 23 --------------------------------------------------------- Creditors of Vegaplus Asset Management Partners, Ltd., which is being voluntarily wound up, are required to present proofs of claim by March 23, 2007, to Peter D. Anderson and William E.J. Walmsley, the company's liquidators. Creditors are required to present proofs of claim personally or through their solicitors at the time and place that the liquidator specified. Failure to present claims would mean exclusion from the benefit of any distribution that the company will make. The liquidators can be reached at: Peter D. Anderson William E.J. Walmsley P.O. Box 897 One Capital Place, Third Floor George Town, Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Fax: (345) 949-8295 ========= C H I L E ========= AES GENER: Finmeccanica to Supply Steam Turbine & Generator ----------------------------------------------------------- Finmeccanica, Italian Ansaldo Energia's unit, said in a statement that it has signed a contract to supply AES Gener with a 280-megawatt steam turbine and 330 mega-volt-amp air-cooled generator in Chile. According to Finmeccanica's statement, Ansaldo Energia won the contract against Alstom and Siemens in an auction. Business News Americas relates that Finmeccanica will supply the equipment to steel group Posco -- the engineering, procurement and construction contractor for AES Gener's coal-fired, 250- megawatt Nueva Ventanas plant, which is being constructed. The plant could start operating by 2010. BNamericas underscores that Finmeccanica's contract is worth EUR65 million. The contract is part of Ansaldo Energia's strategy to boost relationship with AES Gener, BNamericas states. About Finmeccanica Headquartered in Rome, Finmeccanica S.p.A. is a holding company for a group of companies engaged primarily in the sectors of aeronautics, helicopters, space and defense. In the aeronautical sector, the company manufactures complete military transport and combat aircraft and structural components for civil aircraft, and is active in aircraft overhaul and conversion. In helicopters, it is involved in the design and manufacture of civil and military rotorcraft. In space, it is engaged in the design, development and production of satellites for military and civil use and of components for orbiting structures, as well as being active in satellite-based services and space mission management. In defense, Finmeccanica is involved in the design, development and production of a range of systems, including missile and radar, land and sea command and control, air traffic control, avionics equipment, land and underwater weapon and strategic communication systems. About AES Gener AES Gener is the second-largest electricity generation group in Chile in terms of generating capacity (20% market share) with an installed capacity of 2,428 megawatts. Gener serves both the Central Interconnected System or SIC and the Northern Interconnected System or SING through various subsidiaries and related companies, including affiliate Guacolda and the TermoAndes subsidiary. TermoAndes has a generation capacity of 642.8 megawatts, which while located in Argentina serves Chile's SING via InterAndes transmission line. Gener also participates in electricity generation in Colombia through Chivor hydroelectric plant of 1,000 megawatts, and a 25% participation in Itabo's facilities in the Dominican Republic (432.5 megawatts). Gener is 91.2% owned by AES (IDR rated 'B+' by Fitch). * * * On June 16, 2006, Fitch Ratings upgraded the local and foreign currency Issuer Default Ratings of AES Gener SA to 'BB+' from 'BB'. Fitch also upgraded Gener's senior unsecured debt rating, which consists of US$400 million senior notes due 2014, to 'BB+'. Moreover, Fitch revised Gener's Rating Outlook to Positive from Stable. On May 24, 2006, Moody's Investors Service upgraded the senior unsecured debt of AES Gener to Ba1 from Ba3, concluding a review for possible upgrade. Moody's said the rating outlook is stable. NORSKE SKOGINDUSTRIER: To Invest NOK330 Million Into Skogn Unit --------------------------------------------------------------- Norske Skogindustrier ASA is to invest NOK330 million at its Norske Skog Skogn mill in mid-Norway in order to boost its competitiveness and further improve the quality of the paper it produces. The project will cut annual electricity consumption at the mill by 250 GWh or 17%. State-owned company Enova is contributing NOK50 million to the work. "Energy saving measures are one of our top priorities," Christian Rynning-Tonnesen, chief executive of Norske Skog, said. "I'm very pleased that the government, through Enova, is helping to make this project profitable. The changes being made are optimal because they not only reduce energy consumption and costs at Norske Skog Skogn but also improve paper quality." The project will kick off this year, and is due to be completed by the end of 2009. Norske Skog Skogn's production is currently based on paper pulp from wood and recovered paper. Once the work has been done, the proportion of wood will be slightly reduced and replaced by cheaper fillers and increased use of recovered paper. That will enhance the mill's competitiveness while meeting customer requirements for a larger proportion of recycled fiber in their newsprint. About Norske Skog Headquartered in Lysaker, Norway, Norske Skogindustrier ASA -- http://www.norskeskog.com/-- manufactures paper and pulp. It produces long and short fiber sulphate pulp, newsprint, bleached Kraft paper and others. The Company owns and operates paper mills in Europe, Asia, Australia, Africa and North and South America. Norske has posted three consecutive annual net losses of EUR116.3 million in 2004, EUR315.4 million in 2003, and EUR849 million in 2002. It has paper mills in Chile and Brazil. * * * As of Feb. 14, Norske Skog carries these ratings: Moody's: -- Long-Term Corporate Family: Ba1 -- Senior Unsecured Debt: Ba1 -- Outlook: Stable Standard & Poor's: -- Long-Term Foreign Issuer Credit: BB+ -- Long-Term Local Issuer Credit: BB+ -- Short-Term Foreign Issuer Credit: B -- Short-Term Local Issuer Credit: B -- Outlook: Stable =============== C O L O M B I A =============== BBVA COLOMBIA: Launches New Financial Products for Youths --------------------------------------------------------- Colombian daily Portafolio reports that BBVA Colombia has launched new products for people aged 18 to 30. Business News Americas relates that BBVA Colombia is offering these products for young clients: -- specially designed savings accounts, -- consumer loans, and -- credit and debit cards. BBVA Colombia will also launch lotteries, promotions and a special Web page with product information, classified ads and chats, BNamericas states. Headquartered in Bogota, Colombia, BBVA Colombia -- http://www.bbva.com.co/-- is engaged in the holding and accomplishment of all operations, acts and contracts of banking establishments. It is 95.16% owned by Banco Bilbao Vizcaya Argentaria. * * * As reported in the Troubled Company Reporter-Latin America on March 13, 2006, Moody's Investors Service assigned a 'Ba3' long- term foreign currency deposit rating on BBVA Colombia. Moody's changed the outlook to stable from negative. BRIGHTPOINT INC: Dangaard Buy Cues S&P to Revise Outlook to Neg. ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on Brightpoint Inc. and revised the outlook to negative from stable. The actions followed the company's recent announcement that it has agreed to acquire Dangaard Telecom A/S for approximately US$308 million in stock. "The outlook revision reflects a more leveraged financial profile and potential integration issues," said Standard & Poor's credit analyst Martha Toll-Reed. The rating on Brightpoint reflects the company's fairly narrow product base, significant but improving supplier concentration, and relatively modest operating margins. These factors are partially offset by Brightpoint's good market position and increased geographic, supplier, and customer diversity. Headquartered in Plainfield, Indiana, Brightpoint, Inc. (NASDAQ: CELL) -- http://www.brightpoint.com/-- engages in the distribution of wireless devices and accessories, as well as provision of customized logistic services to the wireless industry. The company primarily operates in Australia, Colombia, Finland, Germany, India, New Zealand, Norway, the Philippines, the Slovak Republic, Sweden, United Arab Emirates and the United States. The Company's customers include mobile operators, mobile virtual network operators, resellers, retailers and wireless equipment manufacturers. Brightpoint was incorporated in 1989 under the name Wholesale Cellular USA, Inc. and changed its name to Brightpoint Inc. in 1995. ECOPETROL: Inks Memorandum of Understanding with Petroperu ---------------------------------------------------------- Colombian state-owned oil company Ecopetrol said in a statement that it has signed a Memorandum of Understanding with Peruvian counterpart Petroperu for potential collaboration. Business News Americas relates that the memorandum has an initial five-year term. It can also be extended for equal periods. According to BNamericas, Ecopetrol and Petroperu will set up an executive committee to identify potential joint projects throughout the hydrocarbons chain of Colombia, Peru and elsewhere. Ecopetrol and Petroperu will also analyze biofuel projects, BNamericas states. Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. On June 27, 2006, Fitch Ratings revised the rating outlook of the long-term foreign currency issuer default rating of Ecopetrol SA to Positive from Stable. This rating action follows the recent revision in the Rating Outlook to Positive from Stable of the 'BB' foreign currency IDR of the Republic of Colombia. Ecopetrol's IDR remain strongly linked with the credit profile of the Republic of Colombia. * COLOMBIA: To Remove 25% Limit of Power Firms' Market Shares ------------------------------------------------------------- Government news agency SNE reports that Colombia's President Alvaro Uribe has decided to get rid of the 25% limit on market share that any power generation firm can hold. Power regulator Creg will implement the removal of the restriction, Business News Americas relates, citing President Uribe. The president explained to BNamericas, "The country is going to need to install 600 megawatts a year. We cannot achieve that with these restrictions." According to BNamericas, the 25% limit urged generators like Empresas Publicas de Medellin to seek expansion opportunities outside the country. President Uribe's new plan likely will promote construction of new generation capacity as well as mergers and acquisitions in Colombia, Luis Ferney Moreno, Externado university's director of the energy law department, commented to BNamericas. * * * On July 25, 2006, Fitch rated the Republic of Colombia's US$1 billion issue of fixed-rate Global Bonds maturing Jan. 27, 2017, 'BB'. The rating is in line with Fitch's long- term foreign currency rating on Colombia. Fitch said the Rating Outlook is Positive. =================== C O S T A R I C A =================== * COSTA RICA: Alunasa Closure Not Due to Remarks Against Chavez --------------------------------------------------------------- Venezuelan President Hugo Chavez has denied that the closure of Alunasa, the Costa Rican unit of Venezuelan state heavy industry holding CVG, was due to Costa Rican President Oscar Arias' criticism, Prensa Latina reports. As reported in the Troubled Company Reporter-Latin America on Feb. 21, 2007, Venezuelan President Hugo Chavez considered closing down Alunasa due to differences with Oscar Arias, his Costa Rican counterpart. President Arias had said that the special powers granted to President Chavez were "the antithesis of democracy." The statement upset the Venezuelan leader, who allegedly decided to transfer Alunasa to another nation in Central America. He also ordered the immediate suspension of his country's aluminum shipments to Costa Rica. However, President Chavez told Prensa Latina that the statements were not against him, but they affect the sovereignty of the Venezuelan people, and so he is obliged to respond. In Alunasa's case, any action has economic arguments as a basis, Prensa Latina states, citing President Chavez. * * * As reported on Aug. 21, 2006, Fitch Ratings upgraded Costa Rica's country ceiling to BB+ from BB. ======= C U B A ======= * CUBA: US Congress Proposes Bill Against Cuba Trade Ban -------------------------------------------------------- Four US congress members have proposed a bill that would force the US government to cancel regulations that made selling of food to Cuba difficult, DTN reports. DTN relates that due to the trade ban the US had imposed on Cuba, which has made financial transactions between US exporters and Cuba as well as the agriculture business leaders' travel to the latter difficult, US Representatives Jo Ann Emerson, Stephanie Herseth, Jerry Moran and Mike Ross introduced a bill that will direct the secretary of state to: -- issue general licenses to producer groups to travel to Cuba on agriculture sales trips, and -- allow temporary visas to be issued to Cuban technicians to travel to the US to inspect agricultural plants. According to DTN, the bill will rescind the US government's requirement that Cuban buyers pay cash to US sellers before deliveries leave the US. The bill clarifies that the financial term "payment of cash in advance" means cash payment from Cuban buyers is payable upon delivery. The bill will also let Cuban financial institutions to make direct transfers of funds to US institutions. DTN underscores that Cuban officials have carped on the use of third-party intermediaries, which has increased cost of purchasing US products. US executives claimed that the system delayed payment. "Cuba is an important market for US agriculture, as well as for manufacturers and distributors of food products. But the actions of our own government have created a climate of uncertainty and have inhibited the sale of agricultural goods. Our unreliable and uncertain trade policies are sending the signal to Cuba that it is easier to purchase its products elsewhere," Mr. Moran said in a news release. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2006, Moody's Investors Service said that Cuba's Caa1 foreign-currency issuer rating reflects the debt moratorium that has been in place for more than 15 years, leading to the accumulation of principal and interest arrears. Moody's assigned these ratings on Cuba: -- CC LT Foreign Bank Deposit, Caa2 -- CC LT Foreign Currency Debt, Caa1 -- CC ST Foreign Bank Deposit, NP -- CC ST Foreign Currency Debt, NP -- Issuer Rating, Caa1 =================================== D O M I N I C A N R E P U B L I C =================================== JETBLUE AIRWAYS: Amends 2007 First Quarter & Full Year Guidance --------------------------------------------------------------- JetBlue Airways Corporation revised first quarter and full year 2007 guidance to incorporate material changes in its projections due to the service disruptions resulting from the Feb. 14, 2007, New York metropolitan area ice storm and related recovery period. For the first quarter of 2007, JetBlue now expects to report an operating margin between negative four and negative two percent based on an assumed aircraft fuel cost per gallon of US$1.89, net of hedges. The Company's pre-tax margin is expected to be between negative ten and negative eight% for the first quarter 2007. JetBlue estimates it will report a full year 2007 operating margin between eight and ten percent based on an assumed aircraft fuel cost per gallon on US$1.94, net of hedges. The Company's pre-tax margin is expected to be between three and five percent for the full year 2007. Based in Forest Hills, New York, JetBlue Airways Corp. (Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger air transportation services primarily in the United States. As of Feb. 14, 2006, the Company operated approximately 369 daily flights serving 34 destinations in 15 states, Puerto Rico, the Dominican Republic, and the Bahamas. The Company also provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems and Internet services, through its wholly owned subsidiary, LiveTV, LLC. * * * As reported in the Troubled Company Reporter on Nov. 23, 2006, Moody's Investors Service assigned ratings of Caa1 (LGD5, 88%) to the approximately US$40 million of Special Facility Revenue Bonds, Series 2006 (JetBlue Airways Corporation Project or the JFK Facility Bonds) to be issued by the New York City Industrial Development Agency. Moody's affirmed the B2 corporate family rating for JetBlue Airways Corp. Moody's said the outlook remains negative. Standard & Poor's Ratings Services assigned its 'B' rating to US$40 million of New York City Industrial Development Agency special facility revenue bonds, series 2006 maturing on May 15, 2021, and May 15, 2030; the amount for each maturity have yet to be determined. The bonds, which will be used to finance a hangar and other facilities, will be serviced by payments made by JetBlue Airways Corp. (B/Stable/B-3) under a lease between the airline and the agency. JETBLUE AIRWAYS: Spending US$30MM on New Operations Procedures -------------------------------------------------------------- JetBlue Airways Corp. told Dominican Today that it will spend up to US$30 million on new procedures for operations disruptions and to make a new customer bill of rights. JetBlue Airways said it will detail the program and improved procedures for crew members and reservations, Dominican Today notes. JetBlue Airways Chief Executive Officer David G. Neeleman commented to Dominican Today that the program will be expensive. However, he said that it was more important for him consider the long-term benefit of winning back clients' trust in the airline. According to Dominican Today, JetBlue Airways canceled almost 25% of its flights on Feb. 19 due to an ice storm, but said it will restore full operations on Feb. 20. Mr. Neeleman told NBC, "We are going to offer something that no other airline will offer customers. We're going to be held accountable." The program will include paying from the US$25 penalties to future round-trip tickets of clients who had to wait due to JetBlue Airways' mistakes, The New York Times states. Based in Forest Hills, New York, JetBlue Airways Corp. (Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger air transportation services primarily in the United States. As of Feb. 14, 2006, the Company operated approximately 369 daily flights serving 34 destinations in 15 states, Puerto Rico, the Dominican Republic, and the Bahamas. The Company also provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems and Internet services, through its wholly owned subsidiary, LiveTV, LLC. * * * As reported in the Troubled Company Reporter on Nov. 23, 2006, Moody's Investors Service assigned ratings of Caa1 (LGD5, 88%) to the approximately US$40 million of Special Facility Revenue Bonds, Series 2006 (JetBlue Airways Corporation Project or the JFK Facility Bonds) to be issued by the New York City Industrial Development Agency. Moody's affirmed the B2 corporate family rating for JetBlue Airways Corp. Moody's said the outlook remains negative. Standard & Poor's Ratings Services assigned its 'B' rating to US$40 million of New York City Industrial Development Agency special facility revenue bonds, series 2006 maturing on May 15, 2021, and May 15, 2030; the amount for each maturity have yet to be determined. The bonds, which will be used to finance a hangar and other facilities, will be serviced by payments made by JetBlue Airways Corp. (B/Stable/B-3) under a lease between the airline and the agency. ============= E C U A D O R ============= * ECUADOR: To Discuss Bilateral Cooperation Pacts with Venezuela ---------------------------------------------------------------- Ecuador will discuss bilateral cooperation accords with Venezuela, news daily Prensa Latina reports. Prensa Latina relates that Ecuadorian Economy Minister Ricardo Patino will be in Caracas. The discussion will include the setting up of Banco del Sur, which will help fund economic projects in South America, Prensa Latina says, citing the Ecuadorian economy ministry. Prensa Latina underscores that the discussion will also involve the agreements signed in January. The agreements cover: -- education, -- culture, -- training, -- tourism, -- energy, -- agriculture, and -- commerce. * * * As reported in the Troubled Company Reporter on Jan. 25, 2007, Fitch Ratings downgraded the long-term foreign currency Issuer Default Rating of Ecuador to 'CCC' from 'B-', indicating that default is a real possibility in the near term. In addition, these ratings were downgraded: -- Uncollateralized foreign currency bonds to 'CCC/RR4' from 'B-/RR4'; -- Collateralized foreign currency Par and Discount Brady bonds to 'CCC+/RR3' from 'B/RR3'; and -- Short-term foreign currency IDR to 'C' from 'B'. Fitch also affirmed the Country ceiling rating at 'B-'. =============== H O N D U R A S =============== * HONDURAS: President Manuel Zelaya to Run Empresa Nacional ----------------------------------------------------------- Honduran President Manuel Zelaya told Prensa Latina that he will run state-owned firm Empresa Nacional de Energia Electrica de Honduras. Prensa Latina relates that President Zelaya promised to pay the government 15-year US427-million debt with Empresa Nacional, whose yearly losses totaled US4160 million. Huge daily losses at Empresa Nacional were unbearable, Prensa Latina notes, citing President Zelaya. The firm barely has 600,000 customers and is unable to meet demand from 7.5 million citizens. The president blamed tax evasion and the monthly bills 49% tax that make 10% of the clients avoid payment, Prensa Latina states. Empresa Nacional de Energia Electrica is the national electric firm of Honduras. The utility firm is undergoing several reforms aimed at reducing its HNL3 million deficit and lower the annual loss of almost HNL500 million lempiras due to insufficient billing. * * * Moody's Investor Service assigned these ratings on Honduras: Rating Rating Date Senior Unsecured B2 Sept. 29, 1998 Long Term IDR B2 Sept. 29, 1998 ============= J A M A I C A ============= AIR JAMAICA: William Rogers Resigns as Industry Affairs VP ---------------------------------------------------------- William Rogers has left his senior vice president of industry affairs post in Air Jamaica, the Jamaica Gleaner reports. The Gleaner was unable to determine when Mr. Rogers' retirement will take effect. According to The Gleaner, Mr. Rodgers started working in Air Jamaica in July 1974 as a director of contracts and technical service. Among his impressive contributions to the operations of the airline was the development of the Air Jamaica community in North America. Mr. Rogers was also the first Jamaican Air Jamaica executive in North America. Other positions he held at the firm over the years include: -- president of in-flight, -- regional manager, -- director of marketing and sales, and -- vice-president of marketing and sales. Headquartered in Kingston, Jamaica, Air Jamaica -- http://www.airjamaica.com-- was founded in 1969. It flies passengers and cargo to almost 30 destinations in the Caribbean, Europe, and North America. Air Jamaica offers vacation packages through Air Jamaica Vacations. The company closed its intra- island services unit, Air Jamaica Express, in October 2005. The Jamaican government assumed full ownership of the airline after an investor group turned over its 75% stake in late 2004. The government had owned 25% of the company after it went private in 1994. The Jamaican government does not plan to own Air Jamaica permanently. * * * On July 21, 2006, Standard & Poor's Rating Services assigned B long-term foreign issuer credit rating on Air Jamaica Ltd., which is equal to the long-term foreign currency sovereign credit rating on Jamaica, is based on the government's unconditional guarantee of both principal and interest payments. DIGICEL LTD: Denis O'Brien Wants Total Control of Company --------------------------------------------------------- Denis O'Brien, Digicel Ltd.'s largest shareholder of 78%, has reportedly offered to buy out the telecom company's minority shareholders. Wireless Week says Mr. O'Brien is in the process of securing funding for the acquisition. He intends to raise US$1.8 billion through the issuance of bonds. Separately, Britain's Financial Times said the issuance would be at US$1.4 billion. The Irish gentleman intends to create a new company called Digicel Group Limited once he completes the purchase of all minority shares. New York bankers quoted by the Jamaica Observer said Digicel is valued at US$2.4 billion. Other stakeholders in the company are former chief executive officer Seamus Lynch, vice-chairman Leslie Buckley, government adviser PJ Mara and former Esat executive Lucy Gaffney. Abandons US-Expansion Plans Previously, reports said Digicel intends to penetrate the U.S. market through the purchase of a mobile virtual network operator. However, that plan has been set aside on account of its viability given the saturation of the U.S. market. 2006 Performance Highlight Digicel's financial statements for the year ended March 31, 2006, reported revenues of US$623.3 million, a 31% increase compared to 2005. Of that figure, US$416.6 million or 67% was earned in Jamaica. However, during that period, Digicel posted a net loss of US$26.1 million. This compares with a loss of just US$4.7 million in the corresponding period in 2005. JP Morgan, Credit Suisse, Citigroup and Lehman Brothers are advising Digicel, while UK BANK Rothschild is advising Denis O'Brien. 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. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 20, 2007, Fitch Ratings has taken these rating actions for Digicel Group Ltd., Digicel Ltd. and Digicel International Finance Ltd.: Digicel Group Ltd. -- Proposed US$1.4 billion senior subordinated notes due 2015 assigned 'CCC+/RR5' Digicel Ltd. -- Foreign currency Issuer Default Rating downgraded to 'B-' from 'B'; and -- US$450 million senior notes due 2012 downgraded to 'B- /RR4' from'B/RR4'. Digicel International Finance Ltd. -- US$850 million senior secured credit facility assigned 'B/RR3'. Fitch said the outlook on all ratings is stable. DYOLL INSURANCE: Talks Between Liquidators & Farmers Continue ------------------------------------------------------------- Kenneth Krys and John Lee at RSM Cayman, the appointed liquidators of Dyoll Insurance, met with coffee farmers last week to negotiate an out-of-court settlement for the payment of US$200 million that the farmers demand for the damage they suffered during the Hurricane Ivan in 2004. Radio Jamaica says another round of meetings will be scheduled but attendees of last week's meeting did not divulge the details of the negotiation. Senator Norman Grant, Jamaica Agricultural Society president, said in reports the farmers are requesting to end the court battle in favor of a mutually acceptable plan. The coffee growers are worried of getting swamped with the legal costs of a court battle. Previously, the coffee farmers got a favorable court ruling that calls for payment for losses incurred as a result of the Hurricane Ivan. But the liquidators applied for leave to appeal the decions, Radio Jamaica says. Farmers Getting Public Defenders' Help Meanwhile, the Office of the Public Defender has reportedly gave its commitment to help out the coffee farmers if an out-of-court settlement is not reached. Senator Grant confirmed that the Public Defender would step if the parties remain at deadlock, Radio Jamaica relates. Dyoll Group Ltd. is a Jamaica-based company that is principally engaged in the insurance business. Jamaica's Financial Services Commission has assumed temporary management of the Jamaica-based Dyoll Insurance Co. Ltd. in Mar. 7, 2005, in order to establish the true position of the Company, address the matter of settlement to its claimants and ensure that its policies will remain in force after a high level of insurance claims were leveled on the company as a result of the hurricane Ivan. Kenneth Tomlinson was appointed temporary manager. Jamaica's Supreme Court ordered for the distribution of a US$653 million fund held by the FSC in accordance with the Insurance Act 2001, section 59, which says that the prescribed deposit, on the winding up of an insurance company, should be applied first to settle the claims of local policyholders. * JAMAICA: Inks 2 Accords with Brazil for Sugar Sector Upgrade -------------------------------------------------------------- Senator Anthony Hylton, Jamaica's Minister of Foreign Affairs and Foreign Trade, has signed two pacts with Brazil's External Affairs Minister Celso Amorim for the modernization of the former's sugar sector, as well as the development of ethanol and technical cooperation in tropical fruit processing, the Jamaica Gleaner reports. The Jamaican Foreign Affairs Ministry said in a new release that the agreements also include training Jamaicans in production and management practices in the sugar industry, said a release from the. The Gleaner relates that Brazil has given the undertaking to identify sugar cane varieties adaptable to Jamaican conditions, including those resistant to drought. Brazil has also agreed to consider the possibility of providing technical aid to Jamaica in the construction of a soya bean processing plant, as well as in the production of castor bean oil for use as bio-fuel. Jamaica is keen on having Brazilian state-run Petroleo Brasileiro participate in oil and gas exploration being undertaken in the nation's waters, The Gleaner says, citing Minister Hylton. Minister Hylton told The Gleaner that he had productive discussions with Brazilian sugar firm Cosan on its possible involvement in the local sugar and ethanol sectors. * * * On May 26, 2006, Moody's Investors Service upgraded Jamaica's rating under a revised foreign currency ceiling: -- Long-term foreign currency rating: Ba3 from B1 with stable outlook. =========== M E X I C O =========== ADVANCED MARKETING: Bid Procedures on Sale of Assets Approved ------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware approved the qualified transaction procedures proposed by Advanced Marketing Services Inc. and designated Baker & Taylor as stalking horse bidder. The approval follows the announcement by the Debtor that it has entered into a letter of intent with Baker & Taylor, the world's largest book distributor, to sell the majority of its assets, excluding Publishers Group West Inc., pursuant to Section 363 of the United States Bankruptcy Code. The letter of intent is subject to the negotiation of a definitive asset purchase agreement and will require the Court approval. Following an auction, if necessary, the company anticipates a closing by March 15, 2007, as per the requirements of the letter of intent. The Hon. Christopher S. Sontchi ruled that the Debtors will provide these stalking horse protections to Baker & Taylor, in cash and at the closing of an alternative transaction: (a) a break-up fee in an amount equal to 2% of the sum of (i) US$20,000,000, (ii) the minimum Selected APG Inventory Purchase Price, (iii) Advanced Marketing Services Inc.'s and Baker & Taylor's jointly established good faith estimate of the APG Product Prepayment Price, and (iv) AMS' and Baker & Taylor's jointly established good faith estimate of the Accounts Receivable Price; and (b) Baker & Taylor's reasonable and documented out-of-pocket fees and costs, including costs of counsel, not exceeding US$300,000. These Stalking Horse Protections are entitled to status and payment as super-priority administrative expenses in the Debtors' Chapter 11 cases, Judge Sontchi added. Offer Deadline Binding offers to purchase all or any defined portion of the assets to be sold under the APA between the Debtors and Baker & Taylor may be submitted on or before Feb. 27, 2007, at 5:0O p.m. Although a Qualified Offer may be subject to some contingencies, any contingencies will be considered by AMS when evaluating and comparing Qualified Offers. Offer Evaluation Process On March 1, 2007, at 10:00 a.m., a meeting will be held at the offices of the Debtors' counsel, if AMS determines that proceeding with the Offer Evaluation Process is appropriate. Initial Qualified Offers will be considered only if they exceed the offer for the assets by Baker & Taylor plus the Stalking Horse Protections -- calculated under the assumption that the Stalking Horse Protections will equal approximately $2,000,000. Successive Qualified Offers will be considered only if they exceed the previous offer by US$500,000. The Debtors may recess the Offer Evaluation Process from time to time in their discretion to assess Qualified Offers or permit participants to alter or increase their Qualified Offers. The Debtors may conduct the Offer Evaluation Process as an auction, a series of negotiations or whatever other means it determines in its business judgment. Multiple Lots The Offer Evaluation Process may proceed in multiple lots, provided that any participant will have an opportunity to submit a Qualified Offer on one or more lots or on all lots together, and the Debtors will be free to accept the Qualified Offer or Offers that, alone or in conjunction with others, the Debtors deems to comprise the highest and best offer available. Inventory Unless the Debtors' inventory is sold pursuant to a Qualified Offer approved by the Bankruptcy Court, the Debtors will propose and file with the Bankruptcy Court a program to provide for the return of the Debtors' inventory to the publishers that sold the inventory for values and on terms as agreed by the Debtors and the Official Committee of Unsecured Creditors, or as otherwise ordered by the Bankruptcy Court. The program will be effective after payment of the Closing Payoff Amount. Upon the conclusion of the Offer Evaluation Process, the Debtors will file and serve a supplement identifying the highest and best Qualified Offers, and seek approval of the sale of their assets pursuant to Sections 363 and 365 of the Bankruptcy Code to the party or parties submitting Qualified Offers. The Court sets the Sale Motion hearing to March 5, 2007. The Court directs the Debtors to file a schedule of proposed cure amounts for all executory contracts proposed to be assumed and assigned under the Sale Motion. Any objections to (a) the Sale Motion or (b) the proposed cure amounts set forth in the Proposed Cure Schedule must be filed no later than 5:00 p.m. EST, on Feb. 28, 2007. Any objections to the ability of Buyers to provide adequate assurances of future performance under any executory contract proposed to be assumed and assigned under the Sale Motion may be presented at the March 5 Sale Hearing. "We are pleased to enter into this letter of intent with Baker & Taylor and believe it marks a significant milestone in the restructuring of our business," said Gary Rautenstrauch, President and CEO of AMS. "Baker & Taylor is a recognized leader in the book distribution industry and has the experience to seamlessly assume operations and continue meeting the needs of our customers." "An agreement with AMS will represent an important strategic addition to Baker & Taylor's business. We are excited about the opportunity to work with AMS to foster and broaden the commitment to customer service and operational excellence that AMS is known for," stated Richard Willis, Chairman, President and CEO of Baker & Taylor. About Baker & Taylor Baker & Taylor, founded in 1828, is the world's leading distributor of books, video, and music products to public and academic libraries. It is also a global leader in the distribution of books and entertainment products to many of the country's leading brick and mortar retailers, Internet retailers, as well as thousands of independent book, music and video stores. Baker & Taylor is based in Charlotte, North Carolina and is ranked in the top 250 US private companies by Forbes magazine. It serves customers in 125 countries around the world and has six distribution facilities strategically located throughout the country. Baker & Taylor is a portfolio company of Castle Harlan Partners IV, L.P. About Castle Harlan Castle Harlan, founded in 1987, invests in controlling interests in the buyout and development of middle-market companies in North America and Europe. Its team of 20 investment professionals has completed 48 acquisitions since its inception with a total value in excess of $9 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960's. Castle Harlan's current portfolio companies, which employ more than 42,000 people, include Ames True Temper, a leading manufacturer of lawn and garden tools and accessories; RathGibson, a leader in the manufacture of stainless steel and high alloy precision-welded tubing; and, Perkins & Marie Callender's Inc., which operates and franchises 618 family restaurants in the United States and Canada. 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., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as 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 April 28, 2007. (Advanced Marketing Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ADVANCED MARKETING: Inks LOI with Baker & Taylor on Asset Sale -------------------------------------------------------------- Advanced Marketing Services Inc. entered into a letter of intent with Baker & Taylor to sell the majority of its assets, excluding Publishers Group West Inc. The letter of intent is subject to the negotiation of a definitive asset purchase agreement and the United States Bankruptcy Court for the District of Delaware's approval. The asset purchase agreement will be subject to the requirements of Section 363 of the Bankruptcy Code. Once the asset purchase agreement is finalized, the company will file a motion with the Bankruptcy Court to request a bidding procedures hearing, expected to be held on Feb. 16. Following the completion of the bidding process and an auction, if necessary, the company anticipates a closing by March 15, as per the requirements of the letter of intent. "We are pleased to enter into this letter of intent with Baker & Taylor and believe it marks a significant milestone in the restructuring of our business," Gary Rautenstrauch, President and CEO of AMS, said. "Baker & Taylor is a recognized leader in the book distribution industry and has the experience to seamlessly assume operations and continue meeting the needs of our customers." "An agreement with AMS will represent an important strategic addition to Baker & Taylor's business," Richard Willis, Chairman, President and CEO of Baker & Taylor, stated. "We are excited about the opportunity to work with AMS to foster and broaden the commitment to customer service and operational excellence that AMS is known for." About Baker & Taylor Based in Charlotte, North Carolina, Baker & Taylor distributes books, video and music products to public and academic libraries. Founded in 1828, the company also distributes books and entertainment products to many of brick and mortar retailers, Internet retailers, as well as thousands of independent book, music and video stores. It serves customers in 125 countries around the world and has six distribution facilities strategically located throughout the country. Baker & Taylor is a portfolio company of Castle Harlan Partners IV, L.P. 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., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as 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 April 28, 2007. (Advanced Marketing Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CELLSTAR CORP: Earns US$4.8 Million in Fiscal Year Ended Nov. 30 ---------------------------------------------------------------- Cellstar Corp. reported US$4.8 million of net income on US$943.1 million of revenues for the fiscal year ended Nov. 30, 2006, compared with a US$24.6 million net loss on US$987.7 million of revenues for the year ended Nov. 30, 2005. Revenues decreased US$44.6 million in fiscal 2006, primarily due to a decrease of US$54.1 million in North American Region revenues predominantly due to a decrease in the company's insurance replacement business of US$73.3 million as a result of the loss of the majority of the lock/line LLC business in April 2006, as well as a decrease of US$10.8 million in the indirect channel business, partially offset by an increase of US$21.8 million in the region's regional carrier group business. Gross profit increased US$15.1 million from US$50.3 million in 2005 to US$65.4 million in 2006. Gross profit as a percentage of revenues was 6.9% in 2006, compared to 5.1% in 2005. Selling, general and administrative expenses decreased from US$51.2 million in 2005 to US$50.5 million in 2006. In fiscal 2006, there was a reduction in payroll and benefits of US$1.1 million in the North American and Corporate segments combined as the company continued to align overhead expenses with the remaining operations. The company recognized a gain of US$566,000 related to the redemption of US$10.5 million of senior notes at a 1% discount on Sept. 7, 2006, which also includes the reversal of interest previously accrued. The company recognized a US$2.4 million expense, absent in fiscal 2005, associated with the Comunicacion Inalambrica Inteligente S.A. de C.V. joint venture in the company's Mexico operations. The company had an income tax expense of US$2.8 million in 2006 compared to US$845,000 of expense in 2005. The company recorded a US$585,000 income from discontinued operations of the company's Asia-Pacific region in fiscal 2006 compared to a US$17.3 million loss in fiscal 2005. In 2005, the company sold its operations in the PRC, Hong Kong and Taiwan, completing its exit of the Asia-Pacific Region. At Nov. 30, 2006, the company's balance sheet showed US$236 million in total assets, US$219.2 million in total liabilities, and US$16.8 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the year ended Nov. 30, 2006, are available for free at http://researcharchives.com/t/s?1a1d At Nov. 30, 2006, the company had US$28.6 million in cash and cash equivalents, compared to US$10.7 million at Nov. 30, 2005. The increase in cash and cash equivalents at Nov. 30, 2006, was due to US$15.6 million net cash provided by operating activities in fiscal 2006. About CellStar Corp. Headquartered at Coppell, Texas, CellStar Corp. -- http://www.cellstar.com/-- provides logistics and distribution services to the wireless communications industry. CellStar Corp. has operations in North America and Latin America, and distributes handsets, related accessories and other wireless products from manufacturers to a network of wireless service providers, agents, MVNOs, insurance/warranty providers and big box retailers. CellStar Corp. specializes in logistics solutions, repair and refurbishment services, and in some of its markets, provides activation services. * * * CellStar Corp.'s 5% Convertible Subordinated Notes due 2002 carry Moody's Investors Service's Ca2 rating. ENESCO GROUP: U.S. Trustee Appoints Three-Member Official Panel --------------------------------------------------------------- The U.S. Trustee for Region 11, appointed three creditors to serve on an Official Committee of Unsecured Creditors in Enesco Group, Inc. and its debtor-affiliates chapter 11 cases. The Creditors Committee consists of: 1. Victradco Ltd. No. 1, Section 4 7F Zhong Xiad East Road Taipei 106, Taiwan Representative: Terry Chang 2. Disney Enterprises, Inc. 500 South Buena Vista Street Burbank, CA 91521 Representative: Alec M. Lipkind The Walt Disney Co. 77 West 66th Street, 15th Floor New York, NY 10023 3. Jim Shore Design, Inc. 426 North Main Street Health Springs, SC 29058 Representatives: Michael Molinaro Stanley F. Orszula Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtor's expense. They may investigate the Debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. About Enesco Group Headquartered in Itasca, Illinois, Enesco Group, Inc. -- http://www.enesco.com/-- designs, manufactures and markets licensed and proprietary branded giftware, and home and garden d,cor products to a variety of specialty gift, home decor, mass market and direct mail retailers. The company serves markets operating in Europe, Australia, Mexico, Asia and the Pacific Rim. The company conducts its global business through its eight active wholly owned subsidiaries and affiliated corporations, including two subsidiaries in the United States, both of which are also Debtors in these cases, and six subsidiaries in Canada, the United Kingdom, France and Hong Kong. The company sells its products through its own employee-based sales organizations, as well as independent sales agents and distributors in approximately 25 countries around the world. Enesco's product lines include some of the world's most recognizable brands, including Heartwood Creek(TM) by Jim Shore, Foundations(R), Pooh & Friends(R), Walt Disney Classics Collections(R), Disney Traditions(R), Disney(R), Border Fine Arts(TM), Cherished Teddies(R), Halcyon Days(R) and Lilliput Lane(TM), among others. Enesco Group and its two affiliates, Enesco International Ltd. and Gregg Manufacturing, Inc., filed for chapter 11 protection on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565). The Debtors' financial condition as of Nov. 30, 2006, showed total assets of US$155,350,698 and total debts of US$107,903,518. The Debtors' exclusive period to file a chapter 11 reorganization plan expires on May 12, 2007. Asset Sale As reported in the Troubled Company Reporter on Feb. 19, 2007, EGI Acquisition, LLC, an affiliate of Tinicum Capital Partners II, L.P., a private investment partnership, completed the purchase of substantially all of the assets of Enesco Group, Inc. and the assumption of certain of Enesco's unsecured liabilities. The Court approved the transaction. ENESCO GROUP: Committee Retains Adelman & Gettleman as Counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in Enesco Group, Inc., and its debtor-affiliates chapter 11 cases obtained permission from the U.S. Bankruptcy Court for the Northern District of Illinois to retain Adelman & Gettleman, Ltd., as its bankruptcy counsel. Adelman & Gettleman is expected to: (a) advise the Committee with respect to its duties and powers in these cases; (b) consult with the Debtors, its counsel and other professionals concerning the administration of these cases; (c) assist the Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors, the operation of the Debtors' businesses and the desirability of the continuance of such businesses, and any other matter relevant to these cases or the formulation of a plan; (d) participate with the Committee in the formulation of a plan, if appropriate under the circumstances; (e) assist the Committee in requesting the appointment of a trustee or examiner, should such action be necessary; and (f) perform such other legal services as may be required in the interest of creditors. The Committee discloses that the firm's attorneys bill: Professional Hourly Rate ------------ ----------- Howard L. Adelman, Esq. US$440 Chad H. Gettleman, Esq. US$440 Henry B. Merens, Esq. US$440 Brad A. Berish, Esq. US$415 Mark A. Carter, Esq. US$415 Adam P. Silverman, Esq. US$385 Nathan Q. Rugg, Esq. US$340 Steven B. Chaiken, Esq. US$250 Mr. Gettleman, a shareholder of Adelman & Gettleman, assures the Court that his firm does not represent any interest adverse to the Debtors or their estates. Mr. Gettleman can be reached at: Chad H. Gettleman, Esq. Adelman & Gettleman, Ltd. 53 West Jackson Boulevard, Suite 1050 Chicago, Illinois 60604-3701 Tel: (312) 435-1050 Fax: (312) 435-1059 http://www.adelmangettlemanlaw.com/ About Enesco Group Headquartered in Itasca, Illinois, Enesco Group, Inc. -- http://www.enesco.com/-- designs, manufactures and markets licensed and proprietary branded giftware, and home and garden decor products to a variety of specialty gift, home decor, mass market and direct mail retailers. The company serves markets operating in Europe, Australia, Mexico, Asia and the Pacific Rim. The company conducts its global business through its eight active wholly owned subsidiaries and affiliated corporations, including two subsidiaries in the United States, both of which are also Debtors in these cases, and six subsidiaries in Canada, the United Kingdom, France and Hong Kong. The company sells its products through its own employee-based sales organizations, as well as independent sales agents and distributors in approximately 25 countries around the world. Enesco's product lines include some of the world's most recognizable brands, including Heartwood Creek(TM) by Jim Shore, Foundations(R), Pooh & Friends(R), Walt Disney Classics Collections(R), Disney Traditions(R), Disney(R), Border Fine Arts(TM), Cherished Teddies(R), Halcyon Days(R) and Lilliput Lane(TM), among others. Enesco Group and its two affiliates, Enesco International Ltd. and Gregg Manufacturing, Inc., filed for chapter 11 protection on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565). The Debtors' financial condition as of Nov. 30, 2006, showed total assets of US$155,350,698 and total debts of US$107,903,518. The Debtors' exclusive period to file a chapter 11 reorganization plan expires on May 12, 2007. Asset Sale As reported in the Troubled Company Reporter on Feb. 19, 2007, EGI Acquisition, LLC, an affiliate of Tinicum Capital Partners II, L.P., a private investment partnership, completed the purchase of substantially all of the assets of Enesco Group, Inc. and the assumption of certain of Enesco's unsecured liabilities. The Court approved the transaction. GRUPO MEXICO: Strikers Demand Gov't Action Against Company ---------------------------------------------------------- The Mexican miners' union told Reuters that several unionized workers closed down most of Mexico's mines and metal plants in a one-day national strike, hoping to pressure the government to punish Grupo Mexico SA de CV. Reuters relates that about 90% of unionized operations were closed. The report says that protesting miners were joined by relatives and widows of the 65 men killed during an explosion at a Grupo Mexico's Pasta de Conchos coalmine near the Texan border last year, complaining on the lack of legal action against the firm. Reuters underscores that Jorge Rios, Coahuila state's special prosecutor, blamed Grupo Mexico for allowing a mix of methane, dust and oxygen to build up in the mine. Mr. Rios commented to Reuters, "We are talking about a very rudimentary mine with huge lapses in safety standards made worse by corrupt inspectors who didn't enforce the necessary security." Mr. Rios told Reuters that he would insist on the arrest of five Grupo Mexico workers and six Labor Ministry officials within the next two months on homicide charges. The explosion was an accident, Reuters notes, citing Grupo Mexico. A Grupo Mexico source explained to Reuters, "The company met safety norms, but doing so can never be an exact science. The company is more eager than anyone to know what really happened." The protesters also demanded the recovery of the bodies of the killed miners. Two bodies have been recovered after the gas explosion in the coalmine. Grupo Mexico has compensated the victims' families and spent US$30 million on trying to find the 63 remaining miners. However, temperatures as high as 593 degrees Celsius may have burned the bodies buried under thousands of tons of rock, Reuters states. Grupo Mexico SA de C.V. -- http://www.grupomexico.com/-- through its ownership of Asarco and the Southern Peru Copper Company, Grupo Mexico is the world's third largest copper producer, fourth largest silver producer and fifth largest producer of zinc and molybdenum. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 29, 2006, Fitch upgraded the local and foreign currency Issuer Default Rating assigned to Grupo Mexico, S.A. de C. V. to 'BB+' from 'BB'. Fitch said the rating outlook is stable. MOVIE GALLERY: S&P Ups Rating to B- on Improved Liquidity --------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings, including the corporate credit rating, on Movie Gallery Inc. to 'B-' from 'CCC+'. The outlook is stable. This action reflects the additional financial flexibility and liquidity provided to Movie Gallery as a result of refinancing the company's credit facility. At the same time, we assigned our bank loan and recovery ratings to the company's proposed US$650 million senior secured first- lien credit facilities maturing in 2012, consisting of a US$525 million term loan, a US$25 million synthetic LOC, and a US$100 million revolving credit facility. The first-lien facilities are rated 'B-' (the same as the corporate credit rating) with a recovery rating of'4', indicating the expectation for marginal (25%-50%) recovery of principal in the event of payment default. In addition, Standard & Poor's assigned the US$250 million second-lien term loan maturing in 2012 a credit rating of 'CCC' (two notches below the corporate credit rating) with a recovery rating of '5', indicating the expectation for negligible (0%- 25%) recovery of principal in the event of payment default. The ratings reflect the risks of operating in a mature and declining video rental industry and the company's dependence on decisions made by movie studios, among other factors. "We would consider a negative outlook if industry fundamentals continue to decline and the company's operating performance deteriorates moderately," said Standard & Poor's credit analyst David Kuntz. Movie Gallery, headquartered in Dothan, Alabama, is a provider of in-home movie and game entertainment in the United States. It operates over 4,650 stores in the United States, Canada, and Mexico under the Movie Gallery, Hollywood Entertainment, Game Crazy, and VHQ banners. Pro forma revenues for fiscal year 2005 were US$2.6 billion. NORTEL NETWORKS: Board Declares Preferred Share Dividends --------------------------------------------------------- Nortel Networks Limited's board of directors has declared a dividend for the months of January and February on each of the outstanding Cumulative Redeemable Class A Preferred Shares Series 5 and the outstanding Non-cumulative Redeemable Class A Preferred Shares Series 7. The dividend amount for each series is calculated in accordance with the terms and conditions applicable to each respective series, as set out in the Company's articles. The annual dividend rate for each series floats in relation to changes in the average of the prime rate of Royal Bank of Canada and The Toronto-Dominion Bank during the preceding month and is adjusted upwards or downwards on a monthly basis by an adjustment factor which is based on the weighted average daily trading price of each of the series for the preceding month, respectively. The maximum monthly adjustment for changes in the weighted average daily trading price of each of the series will be plus or minus 4.0% of Prime. The annual floating dividend rate applicable for a month will in no event be less than 50% of Prime or greater than Prime. The dividend on each series in respect of the month of March is payable on April 12, 2007, to shareholders of record of such series at the close of business on March 30, 2007. The dividend on each series in respect of the month of April is payable on May 14, 2007, to shareholders of record of such series at the close of business on April 30, 2007. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Limited (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers technology solutions encompassing end-to-end broadband, Voice over Internet provider, multimedia services and applications, and wireless broadband. Nortel Networks does business in more than 150 countries including Mexico. * * * As reported in the Troubled Company Reporter on Oct. 5, 2006, Moody's Investors Service upgraded its B3 Corporate Family Rating for Nortel Networks Corp. to B2. SATELITES MEXICANOS: SES Global Eyes Firm ----------------------------------------- Satellite operator SES Global told AFX News that it is interested in acquiring Satelites Mexicanos, S.A. de C.V. SES Global Executive Officer Romain Bausch told reporters, "(Satmex has) declared 2007 will be a change of ownership." "Those with strategic interests will be queueing up to participate. You can expect SES to continue to be interested in these opportunities," Mr. Bausch commented to AFX News. About SES Global SES Global SA is a Luxembourg-based investment holding company that, together with its subsidiaries, is engaged in the provision of media broadcasting and distribution services, including TV and radio programming; enterprise solutions, such as turnkey solutions for reliable corporate data, and mobile services, including mobile broadband connectivity to cruise ships, commuter trains, trucks, and commercial and corporate aircraft, as well as mobile phones and hand-held devices. The company also supplies governments with network services and bandwidth for communications in both civilian and defense environments. SES Global has two wholly owned subsidiaries, SES Astra and SES Americom, and also holds stakes in a number of other companies including AsiaSat, Star One, Ciel and QuetzSat. It also owns the satellite services companies AMERICOM Government Services and ASTRA Platform Services. SES Global is headquartered in Chateau de Betzdorf, Luxembourg. About Satelites Mexicanos Satelites Mexicanos, SA de CV, provides fixed satellite services in Mexico. Satmex provides transponder capacity via its satellites to customers for distribution of network and cable television programming, direct-to-home television service, on- site transmission of live news reports, sporting events and other video feeds. Satmex also provides satellite transmission capacity to telecommunications service providers for public telephone networks in Mexico and elsewhere and to corporate customers for their private business networks with data, voice and video applications. Satmex also provides the government of the United Mexican States with approximately 7% of its satellite capacity for national security and public purposes without charge, under the terms of the Orbital Concessions. The Debtor filed for chapter 11 petition on Aug. 11, 2006, (Bankr. S.D.N.Y. Case No. 06-11868). Luc A. Despins, Esq., at Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the U.S. Bankruptcy proceedings. Attorneys from Galicia y Robles, S.C., and Quijano Cortina Lopez y de la Torre give legal advice in the Debtor's Mexican Bankrutpcy proceedings. UBS Securities LLC and Valor Consultores, SA de CV, give financial advice to the Debtor. Steven Scheinman, Esq., Michael S. Stamer, Esq., and Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP give legal advice to the Ad Hoc Existing Bondholders' Committee. Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc Senior Secured Noteholders' Committee. As of July 24, 2006, the Debtor has US$905,953,928 in total assets and US$743,473,721 in total liabilities. On May 25, 2005, certain holders of Satmex's Existing Bonds and Senior Secured Notes filed an involuntary chapter 11 petition against the Company (Bankr. S.D.N.Y. Case No. 05-13862). On June 29, 2005, Satmex filed a voluntary petition for a Mexican reorganization, known as a Concurso Mercantil, which was assigned to the Second Federal District Court for Civil Matters for the Federal District in Mexico City. On Aug. 4, 2005, Satmex filed a petition, pursuant to Section 304 of the Bankruptcy Code that commenced a case ancillary to the Concurso Proceeding and a motion for injunctive relief that sought among other things, to enjoin actions against Satmex or its assets (Bankr. S.D.N.Y. Case No. 05-16103). Satmex concluded its reorganization efforts on Nov. 30, 2006, and emerged from its U.S. bankruptcy case. The company consummated its U.S. chapter 11 plan of reorganization, which was confirmed by the United States Bankruptcy Court for the Southern District of New York by order dated Oct. 26, 2006, and implemented the restructuring approved in Satmex's Mexican Concurso Mercantil proceeding by the Concurso Plan Order issued on July 14, 2006. ======= P E R U ======= * PERU: Inks Memorandum of Understanding with Ecopetrol ------------------------------------------------------- Peruvian state oil firm Petroperu has signed a Memorandum of Understanding with Colombian counterpart Ecopetrol for potential collaboration, the latter said in a statement. Business News Americas relates that the memorandum has an initial five-year term. It can also be extended for equal periods. According to BNamericas, Ecopetrol and Petroperu will set up an executive committee to identify potential joint projects throughout the hydrocarbons chain of Colombia, Peru and elsewhere. Ecopetrol and Petroperu will also analyze biofuel projects, BNamericas states. About Ecopetrol Ecopetrol is an integrated-oil company that is wholly owned by the Colombian government. The company's activities include exploration for and production of crude oil and natural gas, as well as refining, transportation, and marketing of crude oil, natural gas and refined products. Ecopetrol is Latin America's fourth-largest integrated-oil concern. Operations are organized into Exploration & Production, Refining & Marketing, Transportation, and International Commerce & Gas. * * * As reported in the Troubled Company Reporter on Nov. 22, 2006, Standard & Poor's Ratings Services raised its long-term foreign currency sovereign credit rating on the Republic of Peru to 'BB+' from 'BB' and its long-term local currency sovereign credit rating to 'BBB-' from 'BB+'. Standard & Poor's also raised its short-term local currency sovereign credit rating to 'A-3' from 'B', and affirmed its 'B' short-term foreign currency sovereign credit rating on the republic. The outlook on the ratings was revised to stable from positive. Standard & Poor's also raised its assessment of the risk of transfer and convertibility to 'BBB' from 'BBB-'. ===================== P U E R T O R I C O ===================== ADELPHIA COMMS: Commences Initial Distributions to Creditors ------------------------------------------------------------ Pursuant to Adelphia Communications Corp. and its debtor- affiliates' Plan of Reorganization, which became effective on Feb. 13, 2007, Quest Turnaround Advisors LLC and its designees have assumed responsibility for managing the ACOM Debtors and the implementation of the ACOM Debtors' Plan of Reorganization. The ACOM Debtors' Board of Directors was deemed removed pursuant to that Plan. Adelphia filed a Form 15 with the U.S. Securities and Exchange Commission to suspend its reporting obligations under the Securities Exchange Act of 1934. Adelphia has begun initial distributions of cash, shares of Time Warner Cable Inc.'s Class A Common Stock and Contingent Value Vehicle Interests to certain classes of Claims. Actual distributions may vary due to rounding, ACOM disclosed in a news release. To calculate the number of initial shares being distributed, ACOM used a deemed value of US$34.63 per share of TWC Stock. Initial distributions of cash and shares of Time Warner Cable Class A Common Stock are being made to holders of these classes of Claims: Initially Distributed Shares of TWC Cash Per Stock Per US$1,000 US$1,000 Principal Principal Class Description CUSIP Amount Amount ----- ----------- ----- --------- ----------- SD 4 Subsidiary Debtor Trade N/A US$656 17.00000 Claims Against ACOM Debtors, except for the Rigas Managed Entity Debtors SD 4 Subsidiary Debtor Trade N/A 512 13.00000 Claims Against RME Debtors SD 5 Subsidiary Debtor Other N/A 498 13.00000 Unsecured Claims Against ACOM Debtors, except RME Debtors SD 6 9.500% Senior Notes 156503AG9 710 8.11988 due March 1, 2005, issued by Century Communications Corp. SD 6 8.875% Senior Notes 156503AH7 702 8.02892 due January 15, 2007, issued by Century SD 6 8.750% Senior Notes 156503AJ3 686 7.84960 due October 1, 2007, issued by Century SD 6 8.375% Senior Notes 156503AK0 698 7.98628 due November 15, 2017, issued by Century SD 6 8.375% Senior Notes due 156503AL8 694 7.93325 December 15, 2007, issued by Century SD 6 Zero Coupon Senior 156503AN4 415 4.75099 Discount Notes due and January 15, 2008, 156503AM6 issued by Century SD 6 Zero Coupon Senior 156503AF1 634 7.25468 Discount Notes due March 15, 2003, issued by Century SD 7 FPL Note Claims Class N/A 644 15.60615 SD 8 11.875% Series A Senior 35921QAB0 766 13.77928 Discount Notes due Sept. 15, 2007 issued by FrontierVision Holdings, L.P. SD 8 11.875% Series B Senior 35921XAB5 766 13.77927 Discount Notes due Sept. 15, 2007 issued By FrontierVision Holdings, L.P. SD 9 11.000% Senior 35921LAA3 738 19.11607 Subordinated Notes due October 15, 2006, issued by FrontierVision Operating Partners, L.P. and FrontierVision Capital Corp. SD 10 10.625% Senior Notes 68162YAC0 761 17.83578 due November 15, 2006, issued by Olympus Communications, L.P., and Olympus Capital Corp. ACC 3 9-7/8% Senior Debentures 006848AF2 N/A 14.82228 due March 1, 2005, issued by ACOM ACC 3 9-1/2% Senior 006848AK1 N/A 14.86590 Pay-In-Kind Notes due February 15, 2004, issued by ACOM ACC 3 9-7/8% Senior Notes due 006848AP0 N/A 14.82228 March 1, 2007, issued by ACOM ACC 3 10-1/2% Senior Notes 006848AR6 N/A 15.04356 due July 15, 2004, issued by ACOM ACC 3 9-1/4% Senior Notes due 006848AS4 N/A 14.68304 October 1, 2002, issued by ACOM ACC 3 8-3/8% Senior Notes due 006848AU9 N/A 14.85432 February 1, 2008, issued by ACOM ACC 3 8-1/8% Senior Notes due 006848AW5 N/A 14.89185 July 15, 2003, issued by ACOM ACC 3 7-1/2% Senior Notes due 006848AZ8 N/A 14.85192 January 15, 2004, issued by ACOM ACC 3 7-3/4% Senior Notes due 006848BC8 N/A 14.86789 January 15, 2009, issued by ACOM ACC 3 7-7/8% Senior Notes due 006848BD6 N/A 14.54261 May 1, 2009, issued by ACOM ACC 3 9-3/8% Senior Notes due 006848BE4 N/A 15.19627 November 15, 2009, issued by ACOM ACC 3 10-7/8% Senior Notes 006848BF1 N/A 14.73754 due October 1, 2010, issued by ACOM ACC 3 10-1/4% Senior Notes 006848BJ3 N/A 15.15036 due June 15, 2011, issued by ACOM ACC 3 10-1/4% Senior Notes 006848BK0 N/A 14.59381 due November 1, 2006, issued by ACOM ACC 4 ACC Trade Claims N/A N/A 11.00000 ACC 5 ACC Other Unsecured N/A N/A 11.00000 Claims ACC 6 6.0% Convertible 006848BG9 N/A N/A Subordinated Notes due February 15, 2006, issued by ACOM ACC 7 3.25% Convertible 006848BH7 N/A N/A Subordinated Notes due May 1, 2021, issued by ACOM The estimated additional shares of TWC Class A Common Stock distributable in connection with the True Up Mechanism contained in the Plan at three-sample assumed potential values for the TWC Class A Common Stock are: Add'l TWC Stock Shares Per US$1,000 Principal Amnt., At Sample Share Prices (Distributed Through the True-Up Mechanism) Class Description US$27.70 $34.63 $41.69 ----- ----------- ------ ------ ------ SD 4 Subsid. Debtor Trade Claims 8.00000 3.00000 0 Against ACOM Debtors, except RME Debtors SD 4 Subsidiary Debtor Trade 6.00000 2.00000 0 Claims Against RME Debtors SD 5 Subsidiary Debtor Other 6.00000 2.00000 0 Unsecured Claims Against ACOM Debtors, except RME Debtors SD6 9.500% Senior Notes due 4.09753 1.65405 0 March 1, 2005, issued by Century SD 6 8.875% Senior Notes due 4.05163 1.63552 0 Jan. 15, 2007, issued by Century SD 6 8.750% Senior Notes due 3.96114 1.59899 0 Oct. 1, 2007, issued by Century SD 6 8.375% Senior Notes due 4.03011 1.62683 0 Nov. 15, 2017, issued by Century SD 6 8.375% Senior Notes due 4.00335 1.61603 0 Dec. 15, 2007, issued by Century SD 6 Zero Coupon Senior Discount 2.39749 0.96779 0 Notes due Jan. 15, 2008, issued by Century SD 6 Zero Coupon Senior Discount 3.66092 1.4778 0 Notes due March 15, 2003, issued by Century SD 7 FPL Note Claims Class 7.87533 3.17903 0 SD 8 11.875% Series A Senior 6.95343 2.80689 0 Discount Notes due Sept. 15, 2007, issued by FV Holdings SD 8 11.875% Series B Senior 6.95343 2.80689 0 Discount Notes due Sept. 15, 2007 issued by FV Holdings SD 9 11.000% Senior Subordinated 9.64654 3.89402 0 Notes due Oct. 15, 2006, issued by FV Operating & FV Capital SD 10 10.625% Senior Notes due 9.00047 3.63322 0 Nov. 15, 2006, issued by Olympus Communications & Olympus Capital ACC 3 9-7/8% Senior Debentures due 0 2.53755 4.25455 March 1, 2005, issued by ACOM ACC 3 9-1/2% Senior Pay-In-Kind 0 2.545 4.26707 Notes due Feb. 15, 2004, issued by ACOM ACC 3 9-7/8% Senior Notes due 0 2.53755 4.25455 March 1, 2007, issued by ACOM ACC 3 10-1/2% Senior Notes due 0 2.57543 4.31807 July 1, 2004, issued by ACOM ACC 3 9-1/4% Senior Notes due Oct 1, 0 2.51371 4.21458 2002, issued by ACOM ACC 3 8-3/8% Senior Notes due Feb 1, 0 2.54303 4.26375 2008, issued by ACOM ACC 3 8-1/8% Senior Notes due 0 2.54946 4.27452 July 15, 2003, issued by ACOM ACC 3 7-1/2% Senior Notes due 0 2.54262 4.26306 Jan. 15, 2004, issued by ACOM ACC 3 7-3/4% Senior Notes due 0 2.54536 4.26764 Jan. 15, 2009, issued by ACOM ACC 3 7-7/8% Senior Notes due 0 2.48967 4.17427 May 1, 2009 issued by ACOM ACC 3 9-3/8% Senior Notes due 0 2.60158 4.36190 Nov. 15, 2009, issued by ACOM ACC 3 10-7/8% Senior Notes due Oct 1, 0 2.52304 4.23023 2010, issued by ACOM ACC 3 10-1/4% Senior Notes due June 15, 0 2.59372 4.34872 2011, issued by ACOM ACC 3 10-1/4% Senior Notes due Nov 1, 0 2.49843 4.18897 2006, issued by ACOM ACC 4 ACC Trade Claims 0 1.00000 3.00000 ACC 5 ACC Other Unsecured Claims 0 1.00000 3.00000 ACC 6 6.0% Convertible Subordinated N/A N/A N/A Notes due Feb. 15, 2006, issued by ACOM ACC 7 3.25% Convertible Subordinated N/A N/A N/A Notes due May 1, 2021, issued by ACOM The amount and timing of distributions pursuant to the True Up Mechanism and as a result of the release of the escrows, reserves and holdbacks are subject to the terms and conditions of the Plan and numerous other conditions and uncertainties, many of which are outside the control of ACOM and its subsidiaries. In addition, pursuant to the Plan, the Adelphia Contingent Value Vehicle, a Delaware Statutory Trust, was formed to hold certain litigation claims against ACOM's third-party lenders, accountants and other parties. Initial distributions of CVV Interest are being made to certain classes of Claims: CVV Units Per Aggregate No. Per US$1,000 of CVV Units Description Principal Amnt. Issued ----------- -------------- -------------- Subsidiary Debtor Trade Claims N/A N/A Against ACOM Debtors, except RME Debtors Subsidiary Debtor Trade Claims N/A N/A Against RME Debtors Subsidiary Debtor Other Unsecured N/A N/A Claims Against ACOM Debtors, except RME Debtors 9.500% Senior Notes due Series Arahova Series Arahova March 1, 2005 issued by 435 108,736,618 Century Senior Notes due January 1, Series Arahova Series Arahova issued by Century 430 107,518,481 8.750% Senior Notes due Series Arahova Series Arahova October 1, 2007, issued by 420 94,605,385 Century 8.375% Senior Notes due Series Arahova Series Arahova November 15, 2017, issued by 428 42,778,989 Century 8.375% Senior Notes due Series Arahova Series Arahova December 15, 2007, issued by 425 42,494,964 Century Zero Coupon Senior Discount Series Arahova Series Arahova Notes due January 15, 2008 254 153,966,268 issued by Century Zero Coupon Senior Discount Series Arahova Series Arahova Notes due March 15, 2003, 389 172,538,962 issued by Century FPL Note Claims Class Series FPL Series FPL 211 25,575,129 11.875% Series A Senior Series FV Series FV Discount Notes due Sept. 15, 263 62,567,076 2007 issued by FV Holdings 11.875% Series B Senior Series FV Series FV Discount Notes due Sept. 15, 263 24,032,924 2007 issued by FV Holdings 11.000% Senior Subordinated N/A N/A Notes due October 15, 2006, issued by FV Operating & FV Capital 10.625% Senior Notes due Series Olympus Series Olympus November 15, 2006, issued by 85 17,000,000 Olympus Communications and Olympus Capital 9-7/8% Senior Debentures due Series ACC-1 Series ACC-1 March 1, 2005, issued by ACOM 977 126,988,828 9-1/2% Senior Pay-In-Kind Series ACC-1 Series ACC-1 Notes due February 15, 2004, 980 31,200,994 issued by ACOM 9-7/8% Senior Notes due Series ACC-1 Series ACC-1 March 1, 2007, issued by ACOM 977 341,893,000 10-1/2% Senior Notes due Series ACC-1 Series ACC-1 July 15, 2004, issued by ACOM 991 148,713,050 9-1/4% Senior Notes due Series ACC-1 Series ACC-1 Oct. 1, 2002, issued by ACOM 968 314,489,818 8-3/8% Senior Notes due Series ACC-1 Series ACC-1 Feb. 1, 2008, issued by ACOM 979 293,684,593 8-1/8% Senior Notes due Series ACC-1 Series ACC-1 July 15, 2003, issued by ACOM 981 147,213,290 7-1/2% Senior Notes due Series ACC-1 Series ACC-1 Jan. 15, 2004, issued by ACOM 979 97,879,078 7-3/4% Senior Notes due Series ACC-1 Series ACC-1 Jan. 15, 2009, issued by ACOM 980 293,952,972 7-7/8% Senior Notes due Series ACC-1 Series ACC-1 May 1, 2009 issued by ACOM 958 335,442,058 9-3/8% Senior Notes due Series ACC-1 Series ACC-1 Nov. 15, 2009, issued by ACOM 1,001 500,742,257 10-7/8% Senior Notes due Series ACC-1 Series ACC-1 October 1, 2010, issued by ACOM 971 728,439,382 10-1/4% Senior Notes due Series ACC-1 Series ACC-1 June 15, 2011, issued by ACOM 998 998,458,683 10-1/4% Senior Notes due Series ACC-1 Series ACC-1 Nov. 1, 2006, issued by ACOM 962 480,890,170 ACC Trade Claims Series ACC-2 Series ACC-2 983 83,887,174 ACC Other Unsecured Claims Series ACC-3 Series ACC-3 868 46,129,088 6.0% Convertible Subordinated Series ACC-4 Series ACC-4 Notes due Feb. 15, 2006, issued 1,254 1,081,692,251 by ACOM 3.25% Convertible Subordinated Series ACC-4 Series ACC-4 Notes due May 1, 2021, issued by 1,234 709,276,020 ACOM Initial distributions of CVV Interests are also being made to certain classes of Equity Interests under the Plan: Aggregate No. CVV Units of CVV Units Class Description Per Share Issued ----- ----------- --------- ------------- ACC 8 13% Series B Redeemable Series ACC-6B Series ACC-6B Cumulative Exchangeable 100 150,000,000 Preferred Stock issued by ACOM with a mandatory redemption date of July 15, 2009 ACC 8 5.5% Series D Series ACC-6D Series ACC-6D Convertible Preferred 200 575,000,000 Stock issued by ACOM ACC 8 7.5% Series E Series ACC-6E/F ACC-6E/F Mandatory Convertible 25.67708 354,343,704 Preferred Stock issued by ACOM with a mandatory conversion date of November 15, 2004 ACC 8 7.5% Series F Series ACC-6E/F ACC-6E/F Mandatory Convertible 25.28125 581,468,750 Preferred Stock issued by ACC with a mandatory conversion date of February 1, 2005 ACC 9 Class A Common Stock, Series ACC-7 Series ACC-7 par value $0.01 1 229,787,271 ACOM divulged that units in the various series of interests in the Adelphia Contingent Value Vehicle that are outstanding are: No. of Units Estimated Reserved for Estimated No. of Units Disputed and Total No. Series CUSIP No. Outstanding Other Claims of Units ------ --------- ------------ ------------ --------- RF 00685R847 115,000,000 0 15,000,000 Arahova 00685R102 722,639,670 0 22,639,670 FrontierVision 00685R201 86,600,000 0 86,600,000 FPL 00685R862 25,575,129 0 25,575,129 Olympus 00685R300 17,000,000 0 17,000,000 ACC-1 00685R409 4,839,988,173 0 4,839,988,173 ACC-2 00685R508 83,887,174 247,408,818 31,295,992 ACC-3 00685R607 46,129,088 223,573,904 69,702,992 ESL 00685R854 0 17 17 ACC-4 00685R706 1,790,968,271 0 1,790,968,271 ACC-5 00685R805 0 458 458 ACC-6B 00685R839 150,000,000 0 150,000,000 ACC-6B1 00685R821 0 3 3 ACC-6D 00685R813 575,000,000 0 575,000,000 ACC-6D1 00685R797 0 4 4 ACC-6EF 00685R789 935,812,454 0 935,812,454 ACC-6EF1 00685R771 0 5 5 ACC-7 00685R870 229,787,271 0 229,787,271 ACC-7A 00685R763 19,293,139 464 19,293,603 The estimated number of units outstanding includes those issued or to be issued in connection with Initial Distributions under the Adelphia Plan of Reorganization. With respect to Series ESL, ACC-5, ACC-6B1, ACC-6D1, ACC-6EF1, and ACC-7A, one Unit has been reserved with respect to each holder of a Disputed Claim under the Plan. Therefore, it is possible that upon resolution of those Disputed Claims, additional Units could be issued. With respect to all other Series of CVV Interests, the number of reserved Units is the maximum number of additional Units expected to be issued if all Disputed Claims to which those Units relate were allowed. Parties-in-interest are directed to send their inquiries regarding the distributions under the Plan and the CVV Interests to http://creditor.inquiries@adelphia.com/ About Adelphia Comms Based in Coudersport, Pa., Adelphia Communications Corp. (OTC: ADELQ) -- http://www.adelphia.com/-- is a cable television company. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the Debtors in their restructuring efforts. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas Manged Entities, are entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision, LLC. The RME Debtors filed for chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases are jointly administered under Adelphia Communications and its debtor-affiliates chapter 11 cases. (Adelphia Bankruptcy News, Issue No. 165; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Court confirmed the ACOM Debtors' First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization on Jan. 3, 2007. That Plan became effective Feb. 13, 2007. ADELPHIA COMMS: Wants ESPN's US$210 Million Admin. Claims Denied ---------------------------------------------------------------- Adelphia Communications Corp. and its debtor-affiliates ask the Honorable Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York to summarily deny ESPN Inc., et al.'s requests for payment of their US$210,105,000 administrative expense claims, as a matter of law, without subjecting the estates to the costs of discovery and an evidentiary hearing. In separate pleadings, the ESPN parties-in-interest had asked the Court to allow their administrative expense claims in their entirety: (a) ESPN, Inc., ESPN Classic, Inc., and ESPN Enterprises, Inc.; (b) ABC Cable Networks Group, International Family Entertainment, Inc., and SOAPnet L.L.C.; and (c) Walt Disney Internet Group, doing business as Buena Vista Internet Group. ESPN, et al.'s claims arose from breaches of certain agreements for programming services and Internet content entered into by each of the Claimants with Adelphia Communications Corporation in the ordinary course of its business, relates Lisa Hill Fenning, Esq., at Dewey Ballantine LLP, in Los Angeles, California. Ms. Fenning told the Court that on July 31, 2006, ACOM unilaterally terminated the Agreements in violation of its obligations under it, causing the Claimants to suffer damages for lost revenues and profits due under the agreements over the remaining terms of the Agreements. Since the Agreements are postpetition, ordinary course contracts, the asserted damage claims are entitled to allowance and payment as administrative priority claims, Mr. Fenning asserted. Accordingly, the Claimants asked the Court for payment of their administrative expenses claims, in these aggregate amounts: Claimant Amount -------- ------ ESPN entities US$198,368,000 ABC Cable entities 5,115,000 Walt Disney 6,622,000 Among others, Ms. Fenning argued that: (a) Under the binding Second Circuit Precedent in In re Klein Sleep Products, Inc., 78 F.3d 18 (2nd Cir. 1996), ACOM is fully liable for administrative priority damage claims if it terminated postpetition contracts without justification; (b) ACOM had no contractual right to terminate the Agreements upon its sale of substantially all of its assets on July 31, 2006; (c) in connection with Walt Disney's claim, ACOM breached its obligations to deliver the Walt Disney content to its subscribers for the full term of ACOM's Agreement with Walt Disney; (d) in connection with the ESPN entities' claim, ACOM breached its obligations to deliver all services to its subscribers for the full term of the Agreements; (e) ACOM breached its obligations to pay fees at the contract rates for the full term of the Agreements; (f) ACOM violated the implied covenant of good faith and fair dealing by failing to ensure the continued operation of the cable systems or the continued delivery of Walt Disney content under the terms of the Agreements; and (g) the Claimants' lost revenues constitute the appropriate measure of their damages. Parties Agree on Reserve Pursuant to a stipulation, the ACOM Debtors agreed to establish a separate reserve for the administrative expense claims of ESPN, et al. The Stipulation describes the terms of the establishment of the Dedicated Reserve for the Claimants. Consistent with its prior practice of maintaining the confidentiality of the terms of its dealings with programmers, the ACOM Debtors seek the Court's consent to file the Stipulation under seal and to provide for only limited disclosure and service due to the confidential nature of the agreement and the terms of the Dedicated Reserve reached by the parties. Accordingly, Judge Gerber authorized the ACOM Debtors to file the Stipulation under seal. Claims Not Supported by 14 Postpetition Programming Contracts, ACOM Debtors say Terence K. McLaughlin, Esq., at Willkie Farr & Gallagher LLP, argues that ESPN, et al.'s administrative expense claims are not supported by the plain and unambiguous terms contained within the "four corners" of the ACOM Debtors' 14 postpetition programming contracts with the claimants. Mr. McLaughlin notes that the thrust of ESPN, et al.'s argument is that the sale of all of the ACOM Debtors' cable systems on July 31, 2006, did not provide the Debtors with a right to terminate the Programming Contracts. Thus, according to ESPN, et al., the ACOM Debtors continue to be obligated to pay monthly fees for the remaining terms of those contracts. Mr. McLaughlin, however, argues that all monthly fees owed by the ACOM Debtors to ESPN, et al., under the Programming Contracts are calculated on a per "Adelphia Subscriber" basis. Upon the consummation of the Sale Transaction, there were no more Adelphia Subscribers. On the four corners of the Programming Contracts, the ACOM Debtors can owe no further monthly payments after consummation of the Sale Transaction, Mr. McLaughlin contends. Mr. McLaughlin explains that the ACOM Debtors' objection raises only the threshold issue whether the administrative expense claims should be denied as a matter of law based on the four corners of the Programming Contracts. If the Court concludes that the plain and unambiguous terms of the Programming Contracts, interpreted objectively without resort to inadmissible parol evidence, do not mandate denial of ESPN, et al.'s requests as a matter of law, the parties agree that the Court should defer making any ruling until they are afforded a full opportunity to take discovery and present evidence at an evidentiary hearing. The Official Committee of Unsecured Creditors in the ACOM Debtors' bankruptcy case supports the Debtors' contentions. ACOM Files McLaughlin's Statement Under Seal The ACOM Debtors sought and obtained the Court's authority to file under seal Mr. McLaughlin's statement in connection with ESPN, et al.'s request for administrative expense claim payment. Annexed to Mr. McLaughlin's statement are the ACOM Debtors' 14 postpetition programming contracts with ESPN, et al. Mr. McLaughlin explained that ESPN, Inc., et al., had claimed that the Programming Contracts are "subject to strong confidentiality provisions" and "contain highly sensitive commercial information" about their rates and terms, thus, those contracts should only be provided under seal. The ACOM Debtors propose to serve McLaughlin's statement to: (i) the United States Trustee for the Southern District of New York; (ii) counsel for each of the official committees in the ACOM Debtors' Chapter 11 cases; (iii) counsel for ESPN, Inc., et al.; and (iv) other parties as the Court may order, or agreed by the ACOM Debtors and ESPN, Inc., et al. About Adelphia Comms Based in Coudersport, Pa., Adelphia Communications Corp. (OTC: ADELQ) -- http://www.adelphia.com/-- is a cable television company. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the Debtors in their restructuring efforts. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas Manged Entities, are entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision, LLC. The RME Debtors filed for chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases are jointly administered under Adelphia Communications and its debtor-affiliates chapter 11 cases. (Adelphia Bankruptcy News, Issue No. 165; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Court confirmed the ACOM Debtors' First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization on Jan. 3, 2007. That Plan became effective Feb. 13, 2007. B&G FOODS: S&P Affirms B+ Rating on Sr. Secured Credit Facility ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its loan and recovery ratings on B&G Foods Inc.'s proposed senior secured credit facilities, following the announcement that the company will increase the term loan C facility by US$5 million. Pro forma for the increased add-on portion, the facilities will total US$230 million. The secured loan rating is 'B+' (one notch above the 'B' corporate credit rating) and the recovery rating is '1', indicating the expectation for full (100%) recovery of principal in the event of a payment default. Net proceeds from the bank loan will be used to finance the US$200 million purchase of the Cream of Wheat and Cream of Rice brands from Kraft Food Global Inc. and refinance existing indebtedness. Ratings on B&G's existing US$50 million credit facility will be withdrawn upon completion of the refinancing. Ratings List B&G Foods Inc. Corporate Credit Rating B/Stable/-- US$255 Million Senior Secured Credit Facility B+ Recovery Rating 1 B&G Foods (AMEX: BGF) -- http://www.bgfoods.com/-- and its subsidiaries manufacture, sell and distribute a diversified portfolio of high-quality, shelf-stable foods across the United States, Canada and Puerto Rico. B&G Foods' products include jams, jellies and fruit spreads, canned meats and beans, spices, seasonings, marinades, hot sauces, wine vinegar, maple syrup, molasses, salad dressings, Mexican-style sauces, taco shells and kits, salsas, pickles and peppers and other specialty food products. B&G Foods competes in the retail grocery, food service, specialty store, private label, club and mass merchandiser channels of distribution. Based in Parsippany, New Jersey, B&G Foods' products are marketed under many recognized brands, including Ac'cent, B&G, B&M, Brer Rabbit, Emeril's, Grandma's Molasses, Joan of Arc, Las Palmas, Maple Grove Farms of Vermont, Ortega, Polaner, Red Devil, Regina, San Del, Ac'cent Sa-Son, Trappey's, Underwood, Vermont Maid and Wright's. Preliminary revenues for the fiscal year ended Dec. 30, 2006, were US$411.3 million. CHATTEM INC: Earns US$45.1 Million in Year Ended Nov. 30, 2006 -------------------------------------------------------------- Chattem Inc. reported US$45.1 million of net income on US$300.5 million of revenues for the year ended Nov. 30, 2006, compared with US$36 million of net income on US$279.3 million of revenues for the year ended Nov. 30, 2005. Total revenues increased 11% over the prior year excluding sales of pHisoderm(R), which was divested in November 2005. Revenue growth for fiscal year 2006 was led by Gold Bond, Dexatrim, Selsun, BullFrog and Pamprin along with the new product launch of Icy Hot Pro-Therapy. Net income for the fourth quarter of fiscal 2006 was US$4.9 million, compared to US$2.4 million in the prior year quarter. In the fourth quarter of fiscal 2006, the company recorded a reserve for Icy Hot Pro-Therapy retail and in-house inventory exposure totaling US$5.3 million which resulted in negative sales for the brand and higher costs of sales during the fiscal fourth quarter of 2006. Total revenues for the fourth quarter of fiscal 2006 were US$65.1 million, compared to total revenues of US$63.9 million in the prior year quarter, representing a 2% increase. Revenue growth for the quarter was driven by the continued strength of the Gold Bond, Dexatrim, BullFrog and Pamprin businesses offset by a reduction in sales of Icy Hot Pro-Therapy resulting from a reserve for retail returns recorded in the fourth quarter. Financial Highlights Gross margin for fiscal 2006 was 68.7%, compared to 71.4% during fiscal 2005 largely attributable to the launch of Icy Hot Pro- Therapy, which has lower gross margins than the company's other products. Advertising and promotion expense was 32% for fiscal 2006 compared to 27.5% during fiscal 2005, due primarily to increased spending to support the company's new product introductions. Selling, general and administrative expenses decreased to 15.6% during fiscal 2006 compared to 16.9% during fiscal 2005 reflecting lower restricted stock and variable compensation expense, offset by share-based payment expense under SFAS 123R. During fiscal 2006, the company repurchased 1.2 million shares at an average cost of US$33.57 per share, or US$39.3 million in the aggregate. The company completed a private offering of US$125 million 2% Convertible Senior Notes, the proceeds of which were used to fund in part the acquisition of brands from Johnson & Johnson. The company successfully resolved its Dexatrim PPA litigation and recovered US$19.3 million, net of legal expenses. "From a capital structure perspective, we completed a US$125 million convertible debt offering on very attractive terms and repurchased, during the first nine months of the fiscal year, 1.2 million shares of our common stock at an average price of US$33.57 per share. Also, the Dexatrim(R) PPA litigation was brought to closure with the receipt of US$19.3 million before taxes, or about US$0.65 per share. "Operationally, Chattem experienced a very good year with solid growth in sales led by strong performances from Gold Bond(R), Dexatrim, BullFrog(R), Pamprin(R) and Selsun(R), the latter in spite of unprecedented competitive pressures from Head & Shoulders(R). "Somewhat offsetting these positive events was the launch of Icy Hot(R) Pro-Therapy(TM) which, while contributing to sales growth, experienced disappointing overall performance resulting in a direct operating loss of about US$0.20 and US$0.40 per share in the fourth quarter and fiscal year, respectively, for the brand. Looking ahead to fiscal 2007, we anticipate another excellent year with continued impressive performance of the base business, smooth integration of the acquired brands and management of Icy Hot Pro-Therapy at about break-even levels." At Nov. 30, 2006, the company's balance sheet showed US$415.3 million in total assets, US$279.7 million in total liabilities, and US$135.6 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the year ended Nov. 30, 2006, are available for free at http://researcharchives.com/t/s?1a1c Acquisition of Brands On Jan. 2, 2007, the company completed the closing of the previously announced agreement to acquire the U.S. rights to five leading consumer and over-the-counter brands from Johnson & Johnson for US$410 million. The acquired brands include ACT(R), an anti-cavity mouthwash/mouth rinse; Cortizone, a hydrocortisone anti-itch product; Unisom(R), an OTC sleep aid; Kaopectate(R), an anti-diarrhea product; and Balmex(R), a diaper rash product. The acquisition was funded in part with the proceeds from a new US$300 million term loan arranged and led by Bank of America pursuant to a Fifth Amendment to and restatement of the company's Credit Agreement, with the remaining funds principally provided through the use of a portion of the proceeds derived from the company's previously announced sale of US$125 million 2% Convertible Senior Notes due 2013. "The company completed another outstanding year in fiscal 2006, highlighted by several key events. Most significantly, we reached an agreement to acquire five major brands from Johnson & Johnson, a transaction which subsequently closed on Jan. 2, 2007," said Chief Executive Officer Zan Guerry. About Chattem Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT) -- http://www.chattem.com/-- manufactures and markets a variety of branded consumer products, including over-the-counter healthcare products and toiletries and skin care products. The company's products include Icy Hot(R), Gold Bond(R), Selsun Blue(R), Garlique(R), Pamprin(R) and BullFrog(R). Chattem has operations in the United Kingdom, Australia, and Puerto Rico. * * * As reported in the TTroubled Company Reporter on Dec. 5, 2006 Moody's Investors Service confirmed the Ba3 corporate family rating of Chattem Inc. and lowered the senior subordinated rating to B2 from B1. Moody's said the outlook is stable. FIRST BANCORP: Fitch Affirms BB Issuer Default Rating ----------------------------------------------------- Fitch Ratings has affirmed First BanCorp's long-term Issuer Default Rating of 'BB' and Individual rating of 'C/D' and removed the Rating Watch Negative. The Rating Outlook is Negative. Fitch placed the ratings of First BanCorp on Rating Watch Negative on Oct. 30, 2006. At the same time, Fitch is affirming the IDR and short-term rating of FBP's subsidiary, FirstBank of Puerto Rico at 'BB' and 'B', respectively. The Rating Outlook remains Negative. The removal of the Rating Watch Negative was driven by the expectation of improved liquidity and liquidity planning at First BanCorp. The expected improved liquidity comes from the announcement on Feb. 16, 2007, that Bank of Nova Scotia has entered into an agreement to buy a 10% share in First BanCorp for US$94.8 million. The investment by Bank of Nova Scotia provides First BAnCorp with additional liquidity at the parent level. In addition, as part of the regulatory agreement in place, First BAnCorp submitted a written plan to provide for the maintenance of an adequate liquidity position, including establishing appropriate liquidity measures at the parent, and maintenance of sufficient liquidity to meet commitments and unanticipated needs. Resolution of the Negative Outlook will likely not precede the conclusion of the audited financials, SEC investigation, settlement of lawsuits and regulatory agreements, and the expectation of a period of steady state performance. These ratings have been affirmed with a Negative Outlook: First BanCorp -- Long-term IDR at 'BB'; -- Individual at 'C/D'; -- Short-term at 'B'; and -- Support '5'. FirstBank Puerto Rico -- Long-term IDR at 'BB'; -- Long-term deposit obligations at 'BB+'; -- Short-term deposit obligations at 'B'; -- Short-term at 'B'; -- Individual at 'C/D'; and -- Support at '5'. First BanCorp (NYSE: FBP) -- http://www.firstbankpr.com/-- is the parent corporation of FirstBank Puerto Rico, a state chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida; of FirstBank Insurance Agency; and of Ponce General Corporation. First BanCorp, FirstBank Puerto Rico and FirstBank Florida, formerly UniBank, the thrift subsidiary of Ponce General, all operate within U.S. banking laws and regulations. JETBLUE: S&P Says Ratings Unaffected by Operational Problems ------------------------------------------------------------ Standard & Poor's Ratings Services said that JetBlue Airways Corp.'s (B/Stable/B-3) recent operational problems have no immediate effect on its ratings. An ice storm on Feb. 14 resulted in a shutdown and subsequent cancellation of a large percentage of flights at JetBlue's major hub, New York's JFK airport, with service only returning to normal on Feb. 20. The company estimates first-quarter 2007 costs will include at least US$30 million to reaccomodate passengers and update its operations to prevent further problems. In addition, the company's unit operating costs, the lowest in the industry, will likely increase over the near to intermediate term. JetBlue, which had suffered from weak profitability due to high fuel prices and added competition, returned to industry leading margins in the fourth quarter of 2006 after it initiated its Return to Profitability plan in mid-2006. The company also increased its cash position in the quarter to US$699 million due primarily to financing of its spare parts and the sale of older aircraft. Since its start-up in 1999, JetBlue has enjoyed significant customer preference and allegiance due to its attractive product offering and good service provided by motivated employees, although price continues to be the primary determinant of vacation travelers that make up a substantial portion of JetBlue's passengers. With the company's ticket reimbursement and travel vouchers offered to passengers who were inconvenienced over the past week, and its new "Customer Bill of Rights" that contains a sliding scale of travel voucher reimbursements for future delayed passengers, JetBlue hopes to retain most of its customers. If the costs of implementing these programs and/or the airline's loss of passengers are greater than expected, the outlook could be revised to negative. Based in Forest Hills, New York, JetBlue Airways Corp. (Nasdaq:JBLU) -- http://www.jetblue.com/-- provides passenger air transportation services primarily in the United States. As of Feb. 14, 2006, the Company operated approximately 369 daily flights serving 34 destinations in 15 states, Puerto Rico, the Dominican Republic, and the Bahamas. The Company also provides in-flight entertainment systems for commercial aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems and Internet services, through its wholly owned subsidiary, LiveTV, LLC. SANTANDER BANCORP: Board Declares Cash Dividend Due April 2 ----------------------------------------------------------- Santander BanCorp's Board of Directors declared a cash dividend amounting to US$0.16 per common share. The dividend shall be payable on April 2, 2007, to shareholders of record as of March 9, 2007. Cash dividends on common shares are eligible for direct reinvestment under the Company's Dividend Reinvestment and Cash Purchase Plan. For additional information on how to participate in Santander BanCorp's Dividend Reinvestment and Cash Purchase Plan, shareholders should contact our transfer agent and registrar, Mellon Investor Services LLC, at (800) 851-9677. Santander BanCorp (NYSE: SBP) (LATIBEX: XSBP) is a publicly held financial holding company that is traded on the New York Stock Exchange and on Latibex (Madrid Stock Exchange). About 91% of the outstanding common stock of Santander BanCorp is owned by Banco Santander Central Hispano, S.A aka Santander. The company has four wholly owned subsidiaries -- Banco Santander Puerto Rico, Santander Securities Corp., Santander Financial Services and Santander Insurance Agency. * * * As reported in the Troubled Company Reporter on May 30, 2006, Fitch affirmed the Individual ratings of Santander Bancorp and Banco Santander Puerto Rico at 'C'. SAN JUAN CABLE: S&P Affirms Low B Ratings on Payment News --------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Puerto Rico-based cable TV operator San Juan Cable LLC to negative from stable. At the same time, S&P affirmed the existing ratings on the company, including the 'B+' corporate credit and senior secured bank loan ratings and 'B-' second-lien loan rating. "The rating action follows the company's announcement that it will be issuing US$100 million in unsecured payment-in-kind bank debt to fund a distribution to its shareholders," said Standard & Poor's credit analyst Catherine Cosentino. Pro forma for this debt issuance, the company will have nearly US$450 million of total debt outstanding. This distribution increases the company's leverage to about 9x from around 7x, deferring improvement previously anticipated from ongoing growth in broadband subscribers. The ratings on San Juan Cable reflect high financial risk from aggressive acquisition-related debt usage and near-term negative discretionary cash flow; strong competitive pressure from satellite direct-to-home or DTH TV companies; small company size and lack of geographic revenue diversity; uncertain demand for advanced services; and competition from Puerto Rico Telephone Co. for data services, and potentially for video services in future. Tempering factors include revenue growth potential from bundled advanced services provided over San Juan Cable's upgraded cable plant, a relatively stable basic subscriber base, the ability to offer more Spanish-language and local channels than DTH providers, high average revenue per user, and high system density and associated operating benefits. San Juan Cable, formed in 2005, acquired the San Juan-based cable system owned by an affiliate of Adelphia Communications Corp. out of bankruptcy in October 2005. The cable system passes about 336,000 homes and serves about 137,400 basic subscribers. San Juan Cable is the leading provider of cable television services in Puerto Rico with approximately 140,000 subscribers. Its LTM revenue through Sept. 30, 2006, was approximately US$132 million. The company is controlled by financial sponsors MidOcean Partners L.P. and Crestview Partners L.P. ================================= T R I N I D A D & T O B A G O ================================= BRISTOW GROUP: Board Declares US$0.68750 Per Share Dividend ----------------------------------------------------------- Bristow Group Inc.'s board of directors has declared a dividend of US$0.68750 per share of Mandatory Convertible Preferred Stock issued and outstanding at the close of business on March 1, 2007, which will be payable on March 15, 2007, to stockholders of record at the close of business on the Record Date. There are 4,600,000 shares of Bristow's Mandatory Convertible Preferred Stock issued and outstanding. Headquartered in Houston, Texas, Bristow Group Inc. -- http://www.bristowgroup.com/-- provides helicopter transportation services to the offshore oil and gas industry worldwide. Its services include helicopter transportation, maintenance, search, and rescue and aviation support, as well as oil and gas production management services. The company operates under the brand names of Air Logistics and Bristow Helicopters for its helicopter services, and Grasso Production Management for its production management services. As of March 31, 2006, the company operated 331 aircrafts and its unconsolidated affiliates operated an additional 146 aircrafts. The company has offices in Australia, China, India, Mexico, the Netherlands, Singapore, Trinidad and Tobago, United Kingdom, and the United States, among others. Headquartered in St. Louis, Missouri, Peabody Energy Corp., (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Venezuela. * * * As reported in the Troubled Company Reporter on Oct. 27, 2006, Standard & Poor's Ratings Services assigned its 'B' rating to the helicopter service company Bristow Group Inc.'s US$230 million 5.5% mandatory preferred convertible stock. At the same time, Standard & Poor's affirmed the 'BB' corporate credit rating on the company. S&P said the outlook is negative. ============= U R U G U A Y ============= AMC ENTERTAINMENT: Calls for Redemption of Two Outstanding Notes ---------------------------------------------------------------- AMC Entertainment Inc. has called for redemption all of its outstanding Senior Floating Rate Notes due 2010 (CUSIP No. 001669AW0) and 9 7/8% Senior Subordinated Notes due 2012 (CUSIP No. 001669AM2). Interest on the Notes due 2010 and the Notes due 2012 will cease to accrue on the redemption date, which for each is March 23, 2007. The cash redemption price for the Notes due 2010 is 103.000% of the outstanding principal amount thereof. AMC will pay accrued and unpaid interest of approximately US$9.61 for each US$1,000 principal amount of the Notes due 2010 redeemed, which represents accrued and unpaid interest up to, but not including, the redemption date. As of Feb. 21, 2007, US$205,000,000 aggregate principal amount of the Notes due 2010 were outstanding. The cash redemption price for the Notes due 2012 is 104.938% of the outstanding principal amount thereof. AMC will pay accrued and unpaid interest of approximately $14.26389 for each $1,000 principal amount of the Notes due 2012 redeemed, which represents accrued and unpaid interest up to, but not including, the redemption date. As of Feb. 21, 2007, US$175,000,000 aggregate principal amount of the Notes due 2012 were outstanding. The formal redemption notices required by the respective indentures pursuant to which the Notes due 2010 and the Notes due 2012 were issued have been sent to the trustee. The redemption of the Notes due 2010 and the Notes due 2012 and the payment of the respective redemption prices will be in accordance with the terms specified in the respective redemption notices and the redemption procedures of the trustee. Headquartered in Kansas City, Missouri, AMC Entertainment Inc. -- http://www.amctheatres.com/-- is one of the world's leading theatrical exhibition companies with interests in approximately 411 theatres with 5,635 screens. About 82% of the company's theatres are located in the U.S. and Canada, and 18 percent in Mexico, Argentina, Brazil, Chile, Uruguay, China (Hong Kong), France, Spain and the United Kingdom. * * * AMC Entertainment Inc.'s Senior Secured Revolving Credit Facility carries Moody's Investors Service's Ba1 Probability-of- Default rating. * URUGUAY: Completing Preliminary Deal with Investors for Pluna --------------------------------------------------------------- The Uruguayan government will complete this month a preliminary agreement it signed with a group of investors led by Leadgate Investment Corp. for the revival of Pluna, the nation's ailing flagship airline, Dow Jones Newswires reports. Dow Jones relates that Leadgate Investment's investors and managers are businessmen: -- Matias Campiani, -- Sebastian Hrisch, -- Arturo Demalde, -- Michael Marks, and -- Jorge Perez. Paul Elberse -- a representative of Ficus Capital, Pluna's financial advisor -- told Dow Jones, that the preliminary deal allows 60 days for a due diligence process before the investors' takeover of Pluna. Mr. Campiani told the Espectador radio station, "Our plan, over five years, is an aggressive plan of growth. Multiply sales by five and double the number of employees, taking them to around 1,300." Leadgate Investment and a Uruguayan investment group will invest US415 million to purchase a total of 75% stake in Pluna. Leadgate Investment will also provide US$10 million loan to Pluna, Dow Jones says, citing Mr. Elberse. Mr. Elberse told Dow Jones that a firm that businessman Raul Rodriguez controls will take a 30% stake in Pluna, while Leadgate Investment will take a 45% stake. The government will keep a 25% stake in Pluna. Minority investors including current and former workers who own 0.3% and local businessmen Victor and Santiago Mesa who own 2% have options to participate in the re-capitalization, Dow Jones notes, citing Mr. Elberse. Uruguayan Economy Minister Danilo Astori told Dow Jones that the government will retain veto rights over some key decision like share sales. Published reports say that Pluna has posted losses for eight of the last 10 years. Pluna's revenues are about US$90 million yearly and total liabilities are around US$40 million, Dow Jones says, citing Mr. Elberse. The airline has seven aircrafts with flights to several large cities in Argentina and Brazil, and connections to Madrid. Mr. Elberse told Dow Jones, "The idea of this group is to establish Pluna much more as a strong regional operator." Leadgate Investment already signed an operating agreement with Germany's Lufthansa and a major US consulting firm that specializes in airline turnarounds, Mr. Campiani told Espectador. The group's total investment plan is for US$177 million, which includes buying five new planes and leasing 15 planes. Five would be long-haul aircraft while the others would be regional jets, Dow Jones says, citing Mr. Elberse. The group will concentrate on four different business segments, the first of which is regional business destinations in Argentina, Brazil, Chile and Paraguay, and possibly beyond. Leadgate Investment will also: -- reconstruct the Puente Aereo air bridge to Buenos Aires; -- grow the long-haul business with daily direct flights to Miami, Florida and Madrid, Spain; and -- expand cargo operations. Mr. Campiani commented to Espectador, "Our business is to create a great company out of Pluna. And after that business plan is implemented and the company is working well, we can do one of three things. Our preference is to carry out a public offering in the United States or Europe of part of the shares of Pluna." Other options would be to keep Pluna's shares or join forces with another investor, Dow Jones states, citing Mr. Campiani. * * * 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 ================= CMS ENERGY: Utility Unit Declares Quarterly Dividends on Stock -------------------------------------------------------------- Consumers Energy Company's the Board of Directors, has declared regular quarterly dividends on both series of the company's preferred stock. The following dividends are payable April 1, 2007 to shareholders of record March 6, 2007: US$1.04 per share on the US$4.16 stock, and US$1.125 per share on the US$4.50 stock. The company is the principal subsidiary of CMS Energy. Also, a dividend of US$0.96875 per security on CMS Energy's Quarterly Income Preferred Securities (NYSE: CMS_pz) is payable April 16, 2007, to holders of record on April 1, 2007. CMS Energy will pay the trustee the interest on related debentures to cover the dividend. About CMS Energy Headquartered in Jackson, Michigan, Consumers Energy Company -- http://www.consumersenergy.com/-- a wholly owned subsidiary of CMS Energy Corporation, is a combination of electric and natural gas utility that serves more than 3.3 million customers in Michigan's Lower Peninsula. The company has offices in Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 15, 2007, Moody's Investors Service affirmed the ratings of CMS Energy (Ba1 Corporate Family Rating) and Consumers Energy (Baa2 senior secured) and revised the rating outlook of both to positive from stable. Moody's also affirmed CMS Energy's SGL-2 rating. DAIMLERCHRYSLER: Finalizes Pact with Canadian Auto Workers ---------------------------------------------------------- The Canadian Auto Workers and DaimlerChrysler Canada Inc. has finalized an agreement to mitigate the personal impact of the company's workforce reduction plan. The agreement creates retirement and separation incentives to help reduce DaimlerChrysler's Canadian hourly workforce, as part of the company's Recovery and Transformation plan. The programs, full details of which will be relayed to employees shortly, are specifically designed for the workforces at the Windsor Assembly Plant, Brampton Assembly Plant, and Etobicoke Casting Plant. These retirement and separation incentives are intended to help those who are eligible to retire or interested in leaving the workforce to do so and at the same time provide job opportunities for other workers. The incentives negotiated, which follow the pattern established earlier at Ford of Canada, include: -- US$70,000 in enhanced retirement allowance for eligible production workers and US$85,000 for eligible skilled trades workers; -- those eligible to retire also receive a US$30,000 voucher toward the purchase of a Chrysler vehicle registered in either the employee's or their spouse's name; -- anyone eligible to retire who declines all post-retirement benefits (other than pension benefits) receives an additional US$40,000; -- there will be Separation of Employment offers, for those not eligible to retire, of US$50,000 with one to five years service; US$75,000 with five to eight years service, and of US$100,000 for workers with eight or more years of service. The total number of separation packages will be determined from location to location. "These incentives are an effort on the part of the union and company to protect the jobs of CAW members with young families and at the same time will help with the transition for retirement eligible workers," said CAW President Buzz Hargrove. "The Chrysler Group's Recovery and Transformation Plan calls for our Canadian operations to continue to operate at full capacity, but to become more productive and thus more competitive," said Ken McCarter, DaimlerChrysler Vice President, Labor Relations. "In order to reduce our Canadian hourly workforce, DaimlerChrysler and the CAW have agreed upon socially responsible separation incentives. With this agreement, we can support those who choose to leave the company and lower the number of employees on layoff." About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DAIMLERCHRYSLER: Chrysler Group In Talks with General Motors ------------------------------------------------------------ DaimlerChrysler AG and General Motors Corp. are in talks about a possible purchase of the Chrysler Group by GM, according to German publication Manager Magazin. According to various news agencies, DaimlerChrysler hired JPMorgan for advice regarding strategic alternatives. In a TCR report yesterday, DaimlerChrysler Chairman of the Board of Management Dr. Dieter Zetsche said, "... in order to optimize and accelerate the presented plan, we are looking into further strategic options with partners .... In this regard, we do not exclude any option in order to find the best solution for both the Chrysler Group and DaimlerChrysler." GM and DaimlerChrysler AG's Chrysler Group are also in talks of an alliance to share costs of chassis designs and reduce development expenses for a large sport utility vehicle, Jeff Green and Jeff Bennett of Bloomberg report citing people familiar with the talks. GM and the Chrysler Group have been discussing the matter for six months without reaching an agreement, the Wall Street Journal notes. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader since 1931. Founded in 1908, GM employs about 284,000 people around the world. It has manufacturing operations in 33 countries and its vehicles are sold in 200 countries. GM sells cars and trucks under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. PEABODY ENERGY: George Schuller Named as VP in U.S. Operations -------------------------------------------------------------- Peabody Energy Corp. has named George J. Schuller as Vice President of Continuous Improvement, reporting to Senior Vice President of Operations Improvement Walter J. Scheller. Mr. Schuller will relocate from Peabody's Australia operations to the St. Louis office. Mr. Schuller's diverse operations experience and history with Peabody subsidiaries will allow him to provide leadership and advice in continuous improvement initiatives. Mr. Schuller has 22 years of operations experience and joined a Peabody subsidiary in 1986 as a mine engineer. He has served in various mine management positions at U.S. operations, and most recently served as General Manager of Underground Operations and General Manager of Mining Support for Peabody's Australian operations in Queensland, Australia. Peabody's continuous improvement initiatives are driven by the company's Centers of Excellence, which use team-based approaches to promote best practices for operations, engineering, commercial and sourcing activities. These initiatives are leading to efficiencies, cost savings and capital spending reductions. Mr. Schuller holds a Master of Business Administration from the University of Charleston in West Virginia and a Bachelor of Science degree in Mining Engineering from West Virginia University. Headquartered in St. Louis, Missouri, Peabody Energy Corporation (NYSE: BTU) -- http://www.peabodyenergy.com/-- is the world's largest private-sector coal company, with 2005 sales of 240 million tons of coal and US$4.6 billion in revenues. Its coal products fuel 10% of all U.S. and 3% of worldwide electricity. The company has coal operations in Venezuela. * * * As reported in the Troubled Company Reporter on Dec. 21, 2006, Moody's Investors Service assigned Peabody Energy Corporation's proposed US$500 million convertible junior subordinated debentures a rating of Ba2. Moody's also revised Peabody's outlook to stable from negative. At the same time, Moody's affirmed Peabody's Ba1 corporate family rating and the Ba1 senior unsecured rating on its existing revolver, term loan and notes. PETROLEOS DE VENEZUELA: Using US$86.7 Mil. Into Filling Stations ---------------------------------------------------------------- PDVSA GAS, a subsidiary of Petroleos de Venezuela SA, has spend roughly VEB186 billion or US$86.7 million in nine states to put up community gas stations to guarantee supply, Business News Americas reports. PDVSA Gas told BNamericas that the works would profit 666,000 families in the states of Cojedes, Yaracuy, Miranda, Barinas, Bolivar, Apure, Sucre, Delta Amacuro and Guarico. 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, 2006, that it may lower the company's B+ foreign-currency debt rating in part because of the absence of timely financial and operating information. PETROLEOS DE VENEZUELA: To Develop Scada System with UCI -------------------------------------------------------- Petroleos de Venezuela SA and Cuban IT Science University UCI have team up to develop a supervisory control and data acquisition system overseeing industrial processes, Business News Americas reports. According to the source, developing Scada system in open source codes will pave the way to raise both countries' independence in IT matters from proprietary software. During the XII International IT Convention, the project was announced where PDVSA unveiled nine other projects the firm is developing to reach IT freedom. The event took place in Havana, Cuba, from Feb. 12 to 16. 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, 2006, 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: Needs US$1.7 Billion to Buy All of Cantv Shares ------------------------------------------------------------ The Venezuelan government needs to pay US$1.7 billion to acquire shares it doesn't own at Ca. Nacional Telefonos de Venezuela, El Universal says, citing economist Mauricio Valley. Mr. Valley said the amount corresponds to 1.2 million stock at US$2.55 per share The government holds a 35.1% stake at the network after its purchase of Verizon Communication's 28.5% holding. "Within a month, we will make a takeover bid both in New York and Caracas. The State is bound to buy from any shareholders willing to sell at the same purchase price that was paid to Verizon," Telecommunications Minister Jesse Chacon said during an interview with TV channel Venevision. * * * 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. * VENEZUELA: To Discuss Bilateral Cooperation Pacts with Ecuador ---------------------------------------------------------------- Venezuela will discuss bilateral cooperation accords with Ecuador, news daily Prensa Latina reports. Prensa Latina relates that Ecuadorian Economy Minister Ricardo Patino will be in Caracas. The discussion will include the setting up of Banco del Sur, which will help fund economic projects in South America, Prensa Latina says, citing the Ecuadorian economy ministry. Prensa Latina underscores that the discussion will also involve the agreements signed in January. The agreements cover: -- education, -- culture, -- training, -- tourism, -- energy, -- agriculture, and -- commerce. * * * 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 --------------------------------------------- February 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA-NOW Networking & Panel: Discussing Women's Networking Issues PBI, Philadelphia, Pennsylvania Contact: 215-657-5551 or http://www.turnaround.org/ February 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA PowerPlay - Atlanta Thrashers Philips Arena, Atlanta, Georgia 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, Utah Contact: http://www2.nortoninstitutes.org/ February 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Member Appreciation FREE Happy Hour Maggianos, Tampa, Florida Contact: 561-882-1331 or http://www.turnaround.org/ February 27, 2007 PRACTISING LAW INSTITUTE Intercreditor Agreements & Bankruptcy Issues Workshop San Francisco, CA Contact: http://www.pli.edu/ February 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Devil Rays Turnaround Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ February 27-28, 2007 EUROMONEY INSTITUTIONAL INVESTOR 5th Annual Corporate Restructuring Summit Sheraton Park Lane Hotel, London, U.K. Contact: http://www.euromoneyplc.com/ March 1, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - West Regency Beverly Wilshire, Los Angeles, Calif. Contact: http://www.abiworld.org/ March 2, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Bankruptcy Battleground West Regency Beverly Wilshire, Los Angeles, Calif. Contact: http://www.abiworld.org/ March 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION The Great Debate Sydney, Australia Contact: http://www.turnaround.org/ March 14-15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Atlanta, Georgia Contact: http://www.turnaround.org/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION LI Turnaround Management Event Long Island, New York Contact: http://www.turnaround.org/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Martini Madness Cocktail Reception with Geraldine Ferraro Westin Buckhead, Atlanta, Georgia 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, Georgia 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 20, 2007 THOMSON WEST LEGALWORKS Insurance and Reinsurance Allocation Superbowl New York, New York Contact: http://www.westlegalworks.com/ March 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION The Next Wave of Distressed Businesses: A Panel Discussion South Florida Contact: http://www.turnaround.org/ March 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida 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, Florida 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 5, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Case Study "When Everything Goes Wrong" University of Florida, Gainesville, Florida Contact: http://www.turnaround.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 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC 4th Spring Luncheon and Founders Awards Washington, DC Contact: http://www.iwirc.org/ April 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Fla. 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 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting Social TBA, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, Georgia 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, Fla. Contact: http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Jacksonville Zoo Turnaround University Club, Jacksonville, Fla. Contact: http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual Credit & Bankruptcy Symposium Golf/Spa Outing Fox Hopyard Golf Club, East Haddam, Connecticut Contact: 203-265-2048 or http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spa Outing Mohegan Sun, Uncasville, Connecticut Contact: 203-265-2048 or http://www.turnaround.org/ April 26-27, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual Credit & Bankruptcy Symposium Mohegan Sun, Uncasville, Connecticut Contact: http://www.turnaround.org/ April 26-28, 2007 ALI-ABA Fundamentals of Bankruptcy Law Philadelphia, Pennsylvania 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 U.S. Custom House, SDNY New York, New York 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, New York Contact: http://www.abiworld.org/ May 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual TMA Atlanta Golf Outing White Columns, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Fla. Contact: 561-882-1331 or http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION Bankruptcy Judges Panel Marriott North, Fort Lauderdale, Fla. Contact: http://www.turnaround.org/ May 17-18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 6th Annual Great Lakes Regional Conference Renaissance Quail Hollow Resort, Painesville, Ohio Contact: http://www.turnaround.org/ May 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Citrus Club, Orlando, Fla. Contact: http://www.turnaround.org/ May 30-31, 2007 FINANCIAL RESEARCH ASSOCIATES Distressed Debt Harvard Club, New York, New York Contact: http://www.frallc.com/ June 6-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION 5th Annual Mid-Atlantic Regional Symposium Borgata Hotel Casino & Spa, Atlantic City, New Jersey 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 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Centre Club, Tampa, Fla. Contact: http://www.turnaround.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact: http://www2.nortoninstitutes.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel University Club, Jacksonville, Fla. Contact: http://www.turnaround.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Fla. Contact: 561-882-1331 or http://www.turnaround.org/ July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, Rhode Island Contact: 1-703-739-0800; http://www.abiworld.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Fla. 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, South Carolina Contact: http://www.abiworld.org/ August 9-11, 2007 AMERICAN BANKRUPTCY INSTITUTE 3rd Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ August 23-26, 2007 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Drake Hotel, Chicago, Ill. Contact: http://www.nabt.com/ August 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Healthcare Panel Centre Club, Tampa, Fla. Contact: http://www.turnaround.org/ September 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Southwest Bankruptcy Conference Four Seasons Las Vegas, Nevada Contact: http://www.abiworld.org/ September 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Fla. Contact: 561-882-1331 or http://www.turnaround.org/ September 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Buying and Selling Troubled Companies Marriott North, Fort Lauderdale, Fla. Contact: http://www.turnaround.org/ September 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Retail Panel Citrus Club, Orlando, Fla. Contact: 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, Fla. 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 Crisis Communications With Employees,Vendors and Media Centre Club, Tampa, Fla. Contact: http://www.turnaround.org/ October 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, Fla. Contact: 561-882-1331 or http://www.turnaround.org/ November 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Dinner South Fla. 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 Fla. 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, Fla. 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, Nevada 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, Mich. Contact: http://www.abiworld.org/ August 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Fla. 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, Arizona 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 Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E- Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ *********** 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, Rizande de los Santos, Christian Toledo, and Junald Ango, 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 photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$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 * * *